Harrison Group: "Devices, Consumption and the Digital Landscape"
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Harrison Group: "Devices, Consumption and the Digital Landscape"

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hat can 1,800 digital consumers and 1,200 digital business professionals tell you about the market? The 2012 digital publishing survey by Harrison Group, supported by Digiday and Deloitte, underscores ...

hat can 1,800 digital consumers and 1,200 digital business professionals tell you about the market? The 2012 digital publishing survey by Harrison Group, supported by Digiday and Deloitte, underscores the interactions among tablets, laptops, smartphones and e-readers in the systematic management of personal communications, research, shopping and publishing. What is clear from this study is that consumers are not only in charge, but they are charging ahead. Prepare to be surprised!
Speaker: Jim Taylor, vice chairman, Harrison Group

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Harrison Group: "Devices, Consumption and the Digital Landscape" Harrison Group: "Devices, Consumption and the Digital Landscape" Presentation Transcript

  • Devices, Consumption and the Digital Landscape 2012 Dr Jim Taylor Vice Chairman Harrison GroupCONFIDENTIAL, PROPRIETARY & TRADE SECRET INFORMATIONThis document contains confidential, proprietary and trade secret information of Harrison Group, A YouGovcompany and its subsidiaries and affiliates, and must not be disclosed whole or in part to any third partieswithout prior written consent of Harrison Group, A YouGov company.
  • Two surveys: Consumer and Business• Consumer: 1,890 U.S. Consumers – 1,042 tablet owners; 1,114 Smart Phone owners – Mean age 41; Median age 40 • The survey was fielded to produce a census-representative sample of U.S. consumers, ages 18+. • Survey oversampled tablet owners for sake of in-depth analysis; all data was weighted to bring device ownership into U.S. population representative proportions• Business: 1,252 U.S. Businesspeople – Looks at tablet and other device use ―at work‖ — enterprise, SMB, and SOHO, across industries – 519 tablet owners/users – 322 IT leadership and staff – 620 people in the content creation, content distribution and publishing industries1
  • It’s A Multi-Device World Smart- phones - connections, co mmunication and consumption Users are PC/Mac efficient in the - personal and allocation of Tablets work content - content creation and storage task to the most consumption - productivity responsive device eReaders - appreciation of reading2
  • 2012 Demand Outline Device Ownership and Intent to Acquire Desktop 75% 4% Computer 21% Laptop 74% 9% Computer 17% 70% Owners Flat panel TV 12% 18% Plan to acquire 49% (next 12 months) Smartphone 16% 35% No interest in 27% acquiring Tablet Device 22% 51% 25% eReader 13% 62%3
  • The Rise of the Digital Elite ―Digital Elite‖ 42% (Own a tablet, smartphone& PC) • Includes 73% of all tablet owners 20% • 40% of smartphone owners • 39% of eReader owners (meaning they own 4 devices) 4% 2010 2012 2012 Affluent Market4
  • Price Pressure at Home Expect to Expect to Currently Don’t Use, Plan Same spend more spend less Use to Next 12 mos. Cellular/wireless phone/data service for 15% 76% 9% 54% 12% smartphone Wireless data plan for 12% 67% 21% 16% 15% tablet device Broadband Internet 11% 79% 10% 83% 4% Paid streaming video 10% 66% 24% 31% 12% (e.g., Hulu Plus, Netflix) Cable TV (via cable 8% 69% 23% 49% 4% company)Cellular/wireless phone for 7% 74% 19% 62% 4% basic cell phone Satellite TV service 7% 67% 26% 30% 6%DVD/Blu-ray discs by mail 7% 67% 26% 28% 10% service Home phone 6% 74% 20% 62% 2% Cable TV through 6% 65% 30% 18% 5% television company 5
  • It’s Personal and Sometimes Work• Use of tablet at work lags well behind desktops, laptops, and smartphones Personal vs. Work UsePersonal Use Only 58% 55% 62% 71% 78% 82% Both Work and 38% 41% 32% 42% 45% Personal Use 38% 24% 15% 22% 30% 11% 18% Only Use 6% 7% 6% 7% 4% 4% This for Work Desktop Laptop Smartphone Multimedia Tablet Dedicated Computer HH Device Device eReader6
  • The Reading Revolution Continues Of consumers read digital 79% 56% magazines, newspapers Among Tablet and/or books Owners % Read digital magazines Total 30% Tablet Owners 44% % Read digital newspapers 39% 53% % read digital books 29% 57%7
  • The Growing Ubiquity of Digital % Agree Strongly/Somewhat “If I pay for a print newspaper or 2010 80% “It seems magazine, I should be able to read it digitally for free” 2011 85% inevitable that all forms of publicationswill eventually be produced “It seems inevitable that all forms of 69% publications will eventually be produced almost exclusively in a almost exclusively in a digital format” 83% digital format.” “If I could select my own television 59% 83% content and have it streamed to a digital device for viewing either on the device (Up from 69% in 2010) or on my home TV, I would give up my 64% cable or satellite subscription” “When travelling, I typically bring 59% several different magazines with me to read” 49%8
  • Consumption Continues to Grow Will use device MORE: Will use device LESS: Tablet — — 37% 10% Dedicated eReader 35% 14% 22% 20% Smartphone 29% 7% 26% 9% Laptop/Netbook 24% 11% 18% 17% Desktop Computer 17% 18% 17% 24%Multimedia Handheld Device 17% 20% 15% 22% Flat-panel HD TV 15% 17% 15% 14% Tablet non-owners Tablet owners9
  • Consumers and Publishers Do Not Agree;The Case For Reading The reading experience isnt as enriching as holding the actual 66% paper publication in their hand 43% They are emotionally attached to the printed word 64% 35% They dont want to have to pay for this kind of content 63% 23% They dont want to have to sign up and pay for another 62% wireless service 36% Its just isnt their style 60% 44% They dont need another portable electronic device in their 58% lives 24% Reading electronically strains their eyes 58% Publishers 25% They dont have devices that provide a good digital reading 58% experience 9% Consumers 57% Its not something they have seriously considered yet 24% They are reluctant to adopt any more technology 57% 3% They say reading would be more expensive when you factor 54% in the cost of the device 21% They dont trust digital devices to store all their files 52% 6% They are not aware of good ways to do this yet 52% 8% They cant read digital publications in as many places as they 46% could read printed publications 15%10
  • Tablet Ownership Curve 60% 50% 27% Asymptotic Plan to over next acquire in 2 years next 12 months 2012 (22%) 5% 2010 Survey Data Adoption Estimate Based on Intent11
  • Nearly half of all consumers will likelyown a tablet by 2013 Device Ownership and Intent to Acquire 21% 17% 18% 39% 35% 4% 9% 12% 51% 62% 11% 16% 75% 74% 70% 22% 13% 50% 49% 27% 25% Desktop Laptop Flat panel TV DVR Smartphone Tablet Device eReader Computer Computer Owners Plan to acquire (next 12 months) No interest in acquiring12
  • Generations and Tablets Current Tablet Owners / FutureOwners (non owners who plan to purchase in the next 12 months) Where Will Likely Purchase Current Tablet Owner FutureTablet Owner (% Brick & Mortar / Online)Total Millennials 19% 23% 56% / 42% Trailing Millennials 7% 12% Leading Millennials 12% 11%Xers 41% 38% 40% / 49%Boomers / Matures 40% 39% 50% / 33% 13
  • Where Are We Going Next? Predicting Future Media and Technology Trends: Total Publishers/ Things I believe will happen within two years… Consumers Marketers Gap: More newspapers will be read digitally than are read in 63% 50% -13 traditional printed paper form More magazines will be read digitally than are read in 51% 43% -8 traditional printed paper form More books will be read digitally than are read in traditional 49% 35% -14 printed paper form Digital devices with tablet technology will be an integral part of the 48% 51% +3 in-school learning experience for children Most children will learn to read on a digital device 44% 38% -6 Most well-known authors will publish their work through a direct 44% 27% -17 channel to consumers People will be charged for much of the information they can 42% 32% -10 now get for free on the Internet Most television programs will be transmitted to 36% 31% -5 households for private viewing using a digital tablet device Children will exclusively use digital textbooks 27% 47% +2014
  • OUCH; Adverting in Context Total 54% I’d love to be able to purchase things directly from a digital magazine Tablet 59% Smartphone 58% Yet consumers I’d be willing to provide 18% remain attitudinally more personal information if ads could Total 39% Regularly look at be targeted to my Tablet 47% positive toward advertising while needs/interests ads if delivered using their digital device in an engaging Smartphone 42% context I’ve noticed Total 34% brands/products used in a show or movie that increased my interest in Tablet 44% the product Smartphone 38%15
  • Advertising Effectiveness:Publishers vs. Marketers Which is more effective…? Advertising via Advertising via Dedicated Apps Web Browsers OR Publishers 26% Publishers 17% Marketers 34% Marketers 16% Both are Equal or Not Sure Publishers 57% Marketers 50%16
  • Advertising Effectiveness:Advertisers vs. Marketers Which is more effective…? Dynamic Static Advertising Advertising OR Publishers 52% Publishers 11% Marketers 56% Marketers 9% Both are Equal or Not Sure Publishers 37% Marketers 35%17
  • Advertising Effectiveness:Publishers vs. Marketers Which is more effective…? Ads Customized to Ads Same for Part-Audience All Consumers OR Publishers 40% Publishers 60% Marketers 46% Marketers 54%18
  • Digital Engagement Publishers • 24% early stages Marketers • 26% early stages 82% • 26% fully engaged 63% • 22% fully engaged Engaged in Digital • 32% have successfully Engaged in • 15% have successfully Digital Publishing launched digital initiatives Publishing launched digital initiatives As more and more content becomes available on digital platforms, potential growth of those devices will continue to grow as well Publishers Marketers 18% • 12% early stages 37% • 25% early stages Not Engaged in • 6% fully engaged Not Engaged in • 12% fully engaged Digital Digital Publishing Publishing19
  • Loyalty to paid TV servicesQ. Which of the following statements best describes you/your household with regard to paid TV service (cable, satellite, fiber optic, etc. — service other than over the air broadcast services)? Trailing Leading Millennials Millennials Xers Boomers MaturesAmong total U.S. consumers Total % % % % %I have paid TV service (cable, satellite, fiberoptic, etc.) and have no plans to cancel orchange my paid TV service within the next 66 51 51 65 75 7912 monthsI have paid TV service (cable, satellite, fiberoptic, etc.) and am considering changing toanother paid TV service provider within the 12 11 15 13 12 10next 12 months (NOT cancelling altogether)I have paid TV service (cable, satellite, fiberoptic, etc.) and am considering cancelingmy service within the next 12 months (I am 4 4 4 5 2 3considering cancelling my service altogether)I have canceled my paid service (cable,satellite, fiber optic, etc.) in the last 12months ( I no longer have any paid TV 2 3 3 3 1 –service at my home)I do not have paid TV service (cable,satellite, fiber optic, etc.) and have not had 15 31 27 14 9 7paid TV service within the last 12 months20
  • Reasons for changing or cancelling –By generationQ. Which of the following statements best describes your reasons for changing and/or canceling and/or not having paid TV service? Among U.S. consumers who are considering changing or cancelling paid TV service, have cancelled in the Trailing Leading last 12 months, or had no service in Millennials Millennials Xers Boomers Matures the last 12 months Total % % % % % Although I can afford paid TV service, I am not satisfied with the value and pricing of 41 13 33 46 53 * paid TV services I am not satisfied with the programming 14 18 6 14 14 * availability from paid TV services I am not satisfied with the user experience and user interfaces that come with paid 4 4 5 3 5 * TV services I am not satisfied with the customer service 4 5 6 4 2 * of paid TV services I am able to get TV content I want or need through Internet/Streaming sources 19 27 32 16 10 * I am not presently interested in TV content 19 32 18 17 16 ** Base too small to analyze21
  • Reasons for Considering CancelingQ. Which of the following statements best describes your reasons for changingand/or canceling and/or not having paid TV service?"I have paid TV service (cable, satellite, fiber optic, etc.) and am considering canceling my service within the next 12 months" Total - 2012 Multi- Device Among U.S. consumers who have paid TV service and am Media considering cancelingmy service within the next 12 months Total Consumptio n Pattern Millennials Xers Boomers Matures Survey % % % % % Although I can afford paid TV service, I am not satisfied with the value and pricing of paid TV services 48 * * * * I am not satisfied with the programming availability from paid TV services 21 * * * * I am not satisfied with the user experience and user interfaces that come with paid TV services 5 * * * * I am not satisfied with the customer service of paid TV services 4 * * * * I am able to get TV content I want or need through Internet / Streaming sources 15 * * * * I am not presently interested in TV content 8 * * * * * Base too small to analyze22
  • Reasons for CancelingQ. Which of the following statements best describes your reasons for changingand/or canceling and/or not having paid TV service?"I have canceled my paid service (cable, satellite, fiber optic, etc.) in the last 12 months ( I no longer have any paid TV service at my home)" Total - 2012 Multi-Device Among U.S. consumers who have canceledmy paid service Media Total in the last 12 months ( I no longer have any paid TV service Consumption at my home) Pattern Millennials Xers Boomers Matures Survey % % % % % Although I can afford paid TV service, I am not satisfied with the value and pricing of paid TV services 37 * * * * I am not satisfied with the programming availability from paid TV services 13 * * * * I am not satisfied with the user experience and user interfaces that come with paid TV services - * * * * I am not satisfied with the customer service of paid TV services 9 * * * * I am able to get TV content I want or need through Internet / Streaming sources 35 * * * * I am not presently interested in TV content 6 * * * * * Base too small to analyze23
  • Consumers habits and attitudes towardsdigital content are changing rapidly• The vast majority of consumers view the complete transition to digital formats as inevitable• Attitudes, expectations and behavior are continuing to shift % Agree Strongly/Somewhat In just 2 years, 14% “If I pay for a print newspaper or 80% more respondents magazine, I should be able to read it believe that all digitally for free” 85% publications will eventually be “It seems inevitable that all forms of produced almost publications will eventually be 69% exclusively in a digital produced almost exclusively in a format digital format” 83% “If I could select my own television content and have it streamed to adigital device for viewing either on the 59% device or on my home TV, I would give up my cable or satellite 64% subscription” “When travelling, I typically bring 59% several different magazines Key with me to read” 49% 2012 201024
  • The “Digital Elite” (owners of a laptop, smartphone andtablet) has grown from 4% to 20% in the last 2 years Total Owners Tablet 20% Laptop 74% “Digital Elite” Laptop Smart phone Smart phone 49% “Digital Elite” • 73% of all tablet owners Tablet • 40% of smartphone owners 27% • 39% of eReader owners (meaning they own 4 devices)25
  • So What Have We Learned•It’s a Five Screen World and Most People Want Them All•It’s About Information Management… Personal and Business•The Industry Haven’t Caught on to How Digital Revolutionizes Information Seeking, Reading and Multi-tasking•Advertising Works In Context•People Engage All Functions•The Revolution Is Not About Technology; It’s About Cosmopolitanism•Demand Will Continue To Escalate Through 2012 Without Regard to the Economy•Disenchantment With Signal Cost Is Building26
  • What Might the Future Hold?•Relational Applications•Multi-Device Digital Casting•Displacement of TV•Proprietary Networks•Suite Sales•Application/Utility Agencies27
  • Order Today! www.digitalrevolutionresearch.com28
  • Dr Jim Taylor Vice Chairman Harrison Group For Information About the Digital Report Please Contact: www.digitalrevolutionresearch.com or Christina Mount clmount@harrisongroupinc.com www.HarrisonGroupInc.com29