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2009 Online Consumer Trends


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Maybe this will be interesting from a historical perspective -- in 2009 we were all just trying to figure out where things were going...

Maybe this will be interesting from a historical perspective -- in 2009 we were all just trying to figure out where things were going...

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  • The survey compares the media usage habits of 1,000 adult Americans (including 200 influential citizens, or "influencers" (the 10-15% of the population who initiate changes in their community or society through a variety of activities), and 500 communications industry professionals. In the UK and Brazil, 300 consumers and 200 influencers were surveyed in each country for a total of 500 consumers. The survey was conducted through online distribution at various times between Sept. 30 and Oct. 18, 2008. Downloads:
  • The report, "Social Networkers US: Who they are and what they mean for next generation advertising," drew from a projectable sample of 4,384 broadband users to pinpoint the specific demographics, online behaviors, preferences and "passions" of online contributors and social networkers.
  • Online video viewing continued its rapid ascent in 2008, with 6 percent more people in the U.S. viewing 34 percent more videos versus year ago, according to comScore Video Metrix. By November 2008, online video viewing accounted for 12.5 percent of Americans’ total time spent on the Internet, up from 8.5 percent in November 2007. YouTube, with 40 percent market share in November 2008, continues to be a significant driver in the U.S. video market, accounting for approximately two-thirds of the growth in online video views during the past year. The site generated 5.1 billion U.S. video views during the month, representing a 74-percent increase versus year ago. Another developing trend in online video is the move from primarily short-form, user-generated content to more longform, professionally-created content, including full-length movies and TV shows. Hulu, the joint video venture of Fox and NBC, stormed onto the scene in 2008, generating a 57-percent increase in videos viewed during the past six months and currently ranking as the #6 video site by both unique viewers and videos viewed. Hulu also had an average viewing time of nearly 12 minutes per video in November, substantially higher than any other top video site and a major contributing factor to the increase in online video duration from 2.8 minutes per video to 3.1 minutes per video.
  • Transcript

    • 1. March 20092009 Online Consumer TrendsEnlighten Strategy | Laurel Erickson 1
    • 2. The Online Population Continues to Grow • The U.S. Internet population grew 4% in 2008 to 190.7 million visitors in December. – Google Sites captured the top U.S. property ranking from Yahoo! in April and reigned in that position for the balance of the year. • Google Sites grew 12% to 149 million visitors on continued growth from each of its largest channels,, and 2
    • 3. General Online Consumer Trends• Almost three-quarters of American adults are Internet users, and more than half of U.S. adults go online every day. Internet use peaks at age 22 and declines gradually across older adults. – Most popular online activities are reading the news, shopping and checking email, which is surprisingly consistent across generations. – Fastest growing activity is social networking, which older consumers have been slower to adopt.• Mobile service is approaching saturation, especially for Gen Yers.• Broadband adoption for online users is approaching saturation. Nielsen Online data shows that for online users over 18, 89% have broadband access.• More than 70% of online adults buy online – one of the few online categories where Gen Y lags (slightly) behind the general adult population. Sources: The State of Consumers and Technology: Benchmark 2008 (Forrester 2008), Consumers’ Behavior Online: A Deep Dive (Forrester 2007), Building Gen Y’s Multichannel Media Profile (Forrester 2008), Nielsen Online @Plan Profiling Report, January 2009 3
    • 4. Online Continues to Rival Traditional for Leisure Time• U.S. adults spend 30 hours per week consuming TV, radio, newsprint, and personal Internet content — a total that remains largely consistent across generations.• Adults of all ages continue to shift their habits toward online activities. Self-reported time spent using the Internet skyrocketed 72% between 2004 to 2008, while radio and newspapers all declined over the same time period.• The standout exception is TV watching, which reached an all-time high of 151 hours a month for the average American during Q4 2008.• Online properties, however, can capture more eyeballs than traditional networks. YouTube has more viewers than broadcast MTV, and this holds true not just for Gen Y adults but for all U.S. adults. Sources: Forrester July 2008 “Benchmark 2008: The Net Challenges Traditional Media For Young Eyeballs”, Nielsen A2/M2 Three Screen Report, Q4 2008. 4
    • 5. How Can Time Spent Online and Watching TV Both Rise?• More consumers are going online at work, and many of them are using it for personal purposes. More than 80% of adults who use a PC at work say that they will occasionally go online for personal purposes.• Consumers are multitasking with other media. Young adults and teens are much more likely to use the Internet and watch TV at the same time, enabled by TV screens in every bedroom and wireless home networks throughout the home.• Consumers are using mobile devices to access the Net. Many young consumers and professionals are using laptops, mobile phones, and portable game players to go online, and they now can check email, look up directions, or watch online video while on the go.• Consumers are substituting Internet time for other personal pursuits. Research done by Forrester looked at how online has affected the amount of time heads of households spent on pursuits other than media. On average, they reported spending somewhat less time volunteering, going outside, sleeping, exercising, reading, and doing hobbies since going online. Source: Forrester 2008, A Deep Dive Into Consumers’ Behavior Online 5
    • 6. Internet Increasingly Influencing Purchase Decisions• The Internet has become an increasingly important research and informational tool for consumers making buying decisions. In a 2009 comScore survey, 65% indicated that they had turned to the Internet when making a purchase, and half of those respondents indicated that they were doing so more versus a year ago.• Once online, consumers view the results they get from Search Engine sites as the most important influence when shopping, followed by Coupon and Comparison Shopping sites. Source: comScore Survey January 2009 6
    • 7. Online Consumers Are Performing More, Longer Searches• ComScore data reveals that users conducted nearly 137 billion searches over the five U.S. core search engines in 2008, representing an increase of 21% over the previous year.• Search query growth was driven largely by an increase in searches per searcher, which rose 16% from the previous year, while the number of unique searchers grew 6%.• According to research conducted by Hitwise, longer search queries of five or more words increased 10% in January 2009 compared to YA. Shorter queries of one to four words decreased 2%.• Google Sites accounted for nearly 90 percent of the total growth in search query volume during the year. 7
    • 8. Online Consumers Are Exposed to 2,000+ Ads a Month• According to comScore Ad Metrix data, U.S. Internet users viewed a total of 4.5 trillion display ads (excluding video) during 2008, with the average person viewing more than 2,000 ads per month.• Despite the exposure, users were not inclined to “click”. Recent research conducted by comScore on behalf of Starcom and Tacoda showed that the average click rate on display ads in 2008 was less than 0.1%.• The comScore research revealed that two-thirds of Internet users do not click on any display ads over the course of a month and that only 16% of Internet users account for 80% of all ad display clicks.• Even search ads, presumably the most effective form of online marketing, are only clicked on 4% of the time at Google, and 2% at MSN and Yahoo!, according to comScore statistics. 8
    • 9. Despite Passivity, Online Consumers Affected by Display Ads • In their “Whither the Click” study published in December of 2008, comScore examined the low click rate of display ads to determine if it was evidence of lack of impact on consumer behavior. • To the contrary, they found that despite lack of clicks, display advertising can have a significant positive impact on: – Visitation to the advertiser’s Web site | Lift of at least 46% over a four week period – Conducting a search using the advertiser’s branded terms | Lift of at least 38% over a four week period – Buying the advertised brand online | Average lift of 27% – Buying at the advertiser’s retail store | Average lift of 17% ComScore examined 139 online display ad campaigns conducted across a variety of vertical industries, including Retail & Apparel, Travel, CPG & Restaurant, Finance, Automotive, Consumer Electronics & Software and Media & Entertainment. 9
    • 10. Display + Search = Effective Combination for Consumers• Research done concurrently by Specific Media showed an even more impressive lift in search activity when consumers were exposed to display ads. Their December 2008 study showed that paid and organic searches and clicks are dramatically influenced by online display ads, lifting search queries overall by 155%.• The results also showed that display ads have varying influences on search, depending on the industry. The greatest impact on search was in travel and tourism, where exposure to display ads boosted queries by 274%. Positive impact also was reported for health care queries (up 260%), personal finance (206%) and automotive (144%), with smaller but still positive influences seen in retail (69%) and consumer package goods (22%). 10
    • 11. Display + Search = Effective Combination for Consumers• In another study done by the Atlas Institute to dispel the industry standard of giving the “last ad clicked” 100% of the credit for conversion (at the expense of the impact of any other exposure across channels), researchers examined Search and Display – two of the largest online channels – to see how they worked together.• The results showed that users exposed to both channels are more likely to convert than users exposed to Search alone. Using the Display-click-only group’s conversion rate as a baseline, Search-click-only users convert at a rate over 3 times higher. Users exposed to both Search and Display, however, convert at an even higher rate – 22% better than Search alone and 400% better than Display only. Conversion = purchase or registration Source: Atlas Institute 2007 11
    • 12. Consumers Ambivalently Receptive to Email• In 2008, the average number of company emails that • As a percentage of total email time, permission email consumers allowed to clog their inboxes increased increased by five points year-over-year, accounting for from 9 to 10. about 26% of the total time spent with email.• Less than half (44%) of those who receive promotional permission email believe they receive too much; however, the majority of this type of email (55%) goes unopened.• Just over half (53%) of all permission email recipients have added at least one company to their address book (to ensure that emails land in their inboxes).• Yet slightly over half (52%) of respondents also said that they were less willing to sign up for email communications when compared to just a few Although social networking, texting and instant years ago – showing that they are exercising caution. messaging was expected to diminish the role email• The majority of consumers (58%) still believe that plays in communicating with friends and family, the email is a great way for companies to stay in category remains unchanged from last year at 43%. touch with customers – unchanged from last year. • A 2009 study by Epsilon revealed that consumers are• That said, the biggest reasons subscribers choose to reaching their limits for email, however. In 2005, 43% opt-out of permission email continue to be lack of of respondents said it would be okay for companies relevance (cited by 75%), followed closely by sending they know and trust to send email more frequently, but too frequently (73%). in the recent study, that number dropped to 29%. Sources: Merkle’s View from the Inbox 2009; Epsilon, Beyond the Click 2009 12
    • 13. What Consumers Want ≠ What Marketers Send• Consumers are more interested in emails pertaining directly to them (transaction confirmations and account summaries) and relatively less interested in newsletters and promotional offers pushed by companies. But as in the graph to the right, quantities increase as interest decreases in a given email type.• An expected marketing trend for 2009 is to integrate promotional marketing messages into transactional emails, and recipients’ openness to this integrated messaging has increased over the past three years, with 67% generally open to it. Note: For CAN-SPAM compliance and to ensure a better user experience, the number-one rule in integrated messaging is to not obstruct the main message of the email. Source: Merkle’s View from the Inbox 2009 13
    • 14. When Email is Done Right, Consumers are Positively Affected • Consumers who responded to 2009 permission- based email surveys done by Epsilon said the receipt of emails makes them feel better about a company and increases chances that theyll make a purchase, online or off-line. • 84% of respondents said they like receiving email from companies with whom they register, This response rate is up significantly from 69% in the 2005 study. Source: Epsilon, Beyond the Click 2009 • In the Travel, Retail and CPG categories, the majority of respondents agreed that receiving email from a company makes them more likely to purchase from the sender. Overall, 50% of consumers agreed that they were more likely to purchase, up from 37% in 2005. • Epsilon’s research also revealed email has influence beyond “click-through.” For example, 33% of respondents said they usually visit sites directly, instead of clicking on an email link. In the retail category, this number jumps to 66%. Source: Epsilon, Flying High 2009 14
    • 15. Women Save Emails for Reference• The Epsilon study showed some noticeable differences between men and women. Women are more likely to accumulate emails, keeping them in their inboxes for future reference.• 72% of women versus 63% of men have gone back to review emails, and 60% of women versus 49% of men regularly save email in their inbox to refer to it later when making purchases.• The data suggests that men are more likely to make a decision on the spot (purchase or delete), while women will wait for a deal or Source: Epsilon, Beyond the Click 2009 contemplate a purchase further. 15
    • 16. Search and Email Push Referred Online Sales• Referred online sales – purchases completed by consumers referred to a site from another source – continue to grow. In January 2009, 34% of all online sales were from referred sources, up from 26% just a year ago. The top three referral vehicles are Search, Email and Comparison Shopping sites.• The main influencer for referred online % of Referral Sources Buying from sales is search engines. A little over 16% Top Three Referral Vehicles of consumers referred by a search engine end up making an online purchase. The second most effective referrer is email; over 4% of consumers who access a site through an email link end up making an online purchase. Source: comScore Survey January 2009 16
    • 17. In 2009, Consumer Confidence Hits an All Time Low• Dismal news across the housing and auto sectors, as well as the plummeting stock market and rising unemployment rates, drove consumers into a funk thats not likely to lift anytime soon.• In January, the Consumer Confidence Index hovered at all-time lows; in February, it plummeted another 12 points to 25, the lowest level since tracking began in 1967. (In February of last year, the index stood at 76.) “Looking ahead, increasing concerns about business conditions, employment and earnings have further sapped confidence and driven expectations to their lowest level ever. In addition, inflation expectations, which had been easing over the past several months, have moderately picked up. All in all, not only do consumers feel overall economic conditions have grown more dire, but just as disconcerting, they anticipate no improvement in conditions over the next six months.” -- Lynn Franco, Director of the Conference Board Consumer Research Center, February 2009 17
    • 18. Consumer Spending is Down Across Income Segments • More consumers are cutting back on spending due to concerns about the economy. ComScore surveys reveal that the percent cutting back for those earning more than $50K was at an all-time high in January. • Online spending was down 3% overall from YA in Q408. For those earning less than $100K – and who made up 60% of the online retail share – spending was down an average of 12%. 18
    • 19. 2008 Softest Year Ever for Online Retail Growth• Following several years of growth rates of 20% and higher, 2008 ranked as the softest year for retail ecommerce spending growth since comScore began tracking it in 2001. Growth rates reached a peak in April of 15%, followed by eight successive months of declining rates for the remainder of the year. The holiday shopping months of November and December saw negative growth rates, representing the first months on record to have lower online sales than the same month the prior year. 19
    • 20. But Troubled Economic Times Push Consumers to Internet• Although the dismal state of the economy has driven online sales down, it has sparked an increase in overall online activity. Stress about the current state of the economy has driven five times more consumers to the Internet than to drink.• In fact, “Surfing the Internet” was the number one activity identified by consumers as something they did more of in response to stress about the economy – overtaking the standard fallback of “Watching TV.” Source: comScore Survey January 2009 20
    • 21. Consumers Entering More Economy-Related Searches• At the end of last year, consumers showed increased interest in search categories related to the down economy. While searches for “unemployment benefits” rose 223%, the leader in terms of increased search volume was “coupons.” Searchers entered 8.5 million searches for “coupons” in in December of last year, up 157% from YA. 21
    • 22. Economy Pushing Consumers to Coupons – Offline and Online • A recent study by Packaged Facts found that 87% of consumers now prefer to shop at retailers that offer coupons, and 89% said they’re more likely to use coupons in a recession. • More than half (53%) of the consumers surveyed by comScore indicated that they were using coupons more often as a result of the down economy. Sunday FSIs continue to be the most popular form of couponing (42% of respondents used FSIs), but online coupons from coupon sites and from brand sites made gains, with 29% and 22% of respondents using these forms respectively. 22
    • 23. Consumers Visiting Coupon Sites Significantly More• According to comScore Media Metrix, coupon sites were the fastest-growing online category in November 2008, up 32% from October to 35.6 million visitors.• The website had 8.5 million visitors in November 2008. Compete has since reported the site receives over 14 million unique monthly visitors. “Our network is 72% female college-educated homeowners with kids at home. …About 0.5% of the coupons sent in the Sunday paper are redeemed, whereas 17% is the average number of coupons printed to redeem off our network. There are typically anywhere between 85 and 120 offers, depending on when in a month you go [to].” Steven Boal, CEO of Coupons Inc. ( 23
    • 24. Women Share Coupons WOM – Offline and Online• As consumers –most of them female -- turn to the Web for coupons, they’re still finding deals in more traditional ways. In an October 2008 survey of 2,000 female Internet users ages 18 and older by SheSpeaks, 76% of respondents reported sharing offline coupons found in magazines, direct mail or newspapers with their friends. Of the same group, 66% shared online coupons that could be printed and then used in stores, and 65% shared online coupon codes. Opportunity: Targeting a coupon campaign to word-of-mouth (WOM) champions may increase the distribution and redemption of online coupons. 24
    • 25. Characteristics of WOM Champions• According to recent research from COLLOQUY, women aged 25-50 with annual household incomes between $50K and $75K are the most likely group to be word-of-mouth (WOM) champions for brands they like.• COLLOQUY examined motivations of WOM champions, exploring why they engaged in WOM activity regarding their favorite products and brands and what categories of offers and information they were most likely to pass along to others within their networks. The top three motivations included: – To tell manufacturers what I think (73%) – To be in the know: • To get smart about products/services (68%) • To be the first to discover new items (68%) • To get relevant information in the mail (54%) – To earn a reward/value: • To get free product samples (63%) • To earn points or rewards (59%) • To get coupons/samples (56%) Source: COLLOQUY 2008 Survey 25
    • 26. Reward Program Members Best WOM Advocates• Reward program members are 70% more likely than others to actively recommend products, services and brands, the COLLOQUY study found. 55% of reward program members are self-described WOM champions. (Only 32% of non-reward program members are self-described WOM champions.)• 68% of WOM champions in reward programs will recommend a program sponsor’s brand within a year.• Online coupons are the second-most-popular item shared by active WOM champions. WOM champions are most likely to pass along: – In-store offers (60.3%) – Online coupons (52.6%) – Entries for online contests (51%) – Mail-in rebates (48.9%) – Trial offers (44.2%) – Sweepstakes (41.8%) – “Packages received in mail" (41.8%) Source: COLLOQUY 2008 Survey 26
    • 27. Influencers More Intense Online than General Population• A separate study done by USC examined “influencers” – the 10-15% of the population that initiates change in their community or society, and found that as a group, they were much more active online than the general population.• The survey highlighted several key differences in online behavior between the general population and influencers, including: – Use of search engines (Influencers 70%, general population 57%) – Use of nonjournalist blogs (Influencers 43%, general population 16%) – Use of video-sharing websites – e.g., YouTube (Influencers 43%, general population 25%) – Use of specialty information portals – e.g., WebMD (Influencers 29%, general population 16%) – Influencers also use more new media such as videocasts (19%), RSS news feeds (15%), podcasts (12%), and mobile media (9%) Source: 2008 Survey from Ketchum and the USC Annenber Strategic Public Relations Center 27
    • 28. Social Networking Allows More to Find Their Voice Online • A recent study of 4,384 broadband users by Netpop found that social networking has grown 93% since 2006, with 76% of US broadband users (105 million) contributing actively to the Web via social media (rating products, blogging, uploading photo, etc.) • Approximately 29% of broadband users (40 million) are regular contributors to social networking sites (Facebook, Myspace, Twitter, etc.), and are spending increasing amounts of their online time communicating with each other, both one-on-one and one-to-many. • Netpop concludes that increased networking signals a shift in the content people consume and how they are entertained, and it is turning everyday users into natural connectors, promoters, and influencers. 28
    • 29. Social Networking No Longer a Youth Phenomenon• Although 75% of online adults 18-24 already have a profile on a social network, as Facebook approaches 52 million U.S. users, the site is beginning to look like America – i.e. a lot older. As of January, more than 50% of Facebook users and 44% of MySpace users in the U.S. were over 35 years old, according to ComScore estimates. The single biggest age demographic in the U.S. on both Facebook and MySpace is now between 35 and 44, and Facebook recently reported that its fastest growing demo is women 55-plus.• A November 2008 JPMorgan survey revealed that regardless of age, the majority (78%) of online social networkers are there – not surprisingly – to keep in touch with friends. Younger users, however, do a better job of it. While 34% of users age 18-33 log in 30+ times a month, 45% of users age 34-49 log in only one to four times a month. 29
    • 30. Demographics of People with Social Network Profile• According to a December 2008 Survey from Pew Internet, the number of adults who have a profile on a social networking website has quadrupled in the past four years to 35% of all online users, rising from 8% in 2005.• The Pew study also reflects the ageing phenomenon. Although a higher percentage of online teens have profiles, adults make up a much larger portion of the public than teens, so they also account for the bulk of all users on social networking sites. Still, younger online adults are much more likely than their older counterparts to use social networks, with 75% of adults 18-24 using these networks, compared with just 7% of adults ages 65 and older.• Beyond age, people with social network profiles stays roughly 30-40% across demographic categories, with the slight exceptions of Hispanics (48% have profiles) and those earning less than $30,000 (45% have profiles). 30
    • 31. Current Social Network Trends• Social networkers in the US are most likely to be single, employed women age 18-39.• Social networkers spend an average of 36% of online time talking and sharing.• A typical social networker connects weekly with an average of 18 people one-to-one, and 110 people one-to-many.• Social networking can be addictive. Almost 36% of Cafemom members would rather forgo food for 24 hours than give up site visits or updates• The top two social networks in the US are Facebook and MySpace. 60% of social networkers use Facebook, 63% use MySpace and 34% use both.• Facebook grew 500% between 2006 and 2008, however, and Compete recently reported that in January 2009 Facebook officially took the number one position both in monthly visits and unique visitors (68MM vs. 58MM).• An interesting recent trend is that the microblogging site Twitter recently jumped to the number three position in terms of monthly visits (albeit a distant third to the Big Two). Sources: 2008 Netpop Research LLC, “Social Networkers US”, Compete February 9, 2009, InsightExpress Survey, January 2009 31
    • 32. Social Networkers Shop Online• The Netpop study revealed that social networkers are much more likely to shop and to spend more online than their non- contributing peers. Social networkers buy a variety of products and services and spend an average of $101 online per month compared to non-contributors, who spend $80 per month.• The top sources used by social networkers when making shopping decisions are search engines, brand or manufacturer sites, online- only retail sales and auction sites. Some 6% also use social networking sites to decide what to buy. Source: 2008 Netpop Research LLC, “Social Networkers US” 32
    • 33. But Networkers Remain Resistant to Social Ads• No matter their age or number of profiles, the majority of social networkers see advertising on social sites as a provocative topic.• Insight found that social networkers responded most negatively to advertising on sites where it is already prevalent: While 43% of Cafemom, Twitter, and Flickr users were open to the concept of randomly generated ads, only 23% of LinkedIn, Facebook, Classmates, MySpace, and Reunion profilers were.• Targeted ads didn’t do any better. Roughly 40% of social networkers across all sites condone opt-in ads, but only 20% of respondents give behavior-based campaigns the green light. Source: InsightExpress Survey, January 2009 33
    • 34. Consumers Have Embraced Smartphones & Mobile Web• In 2008, smartphones essentially became part of U.S. popular culture, offering full HTML browsers and a true Internet browsing experience, increasingly with Wi-Fi connectivity. No longer restricted to business users, devices like the Apple iPhone, the Blackberry Storm and the Palm Centro offered consumers a less bulky, more fashionable form – at a more attractive price.• In addition, from Nov ’07 to Nov ’08 43% more consumers joined the 3G network (wireless broadband), providing them with a dramatically improved mobile browsing experience.• The result: A 34% increase in U.S. consumers browsing the Internet from mobile devices. Source: comScore M:Metrics (U.S.) 34
    • 35. Mobile Internet Users Expected to Grow Substantially• The mobile platform is becoming more and more a part of people’s lives. According to a 2009 study by Nielsen on behalf of Tellabs, 71% of current users are using data services to connect to the Internet, 61% for email and 56% for multimedia messaging services.• The number of mobile Web users is projected to grow substantially. Although new mobile subscriptions fell 32% last year as the market approaches saturation, the number of U.S. mobile Web adopters is projected to nearly double in the next five years, from the 54.5 million in 2008 to 95 million in 2013. Sources: Nielsen 2009, Kelsey Group 2009 35
    • 36. Young Social Networkers Drawn to Mobile Web• A 2009 survey by MocoSpace, a mobile social networking site, revealed that nearly three quarters (71%) of young people say the mobile phone is the most important device when it comes to their social lives, soundly trumping both the computer / internet (2%) and the landline phone (2%).• For young users, the fact that over 75% have a social network profile combined with near saturation for mobile services has resulted in a noticeable spike in mobile access of social networking sites. In fact, according to recent research by Forrester, for Gen Y social networking ranked a close second to search on the list of frequent mobile Internet activities.• According to its corporate site, MySpace users visiting the social networking site from mobile phones quadrupled last year to 20 million, out of a total of 135 million unique visitors in total. Facebook reported a similar increase. Source: Forrester 2009, How Generations View the Mobile Internet 36
    • 37. Consumers Juggle “Three Screens” for Video• A December 2008 Nielsen report revealed that the American fascination with video content continues. Consumers are, in fact, turning to TV, Internet and Mobile video at record levels.• As Susan Whiting, vice chair of The Nielsen Company, observed “Viewers appear to be choosing the best screen available for their video consumption, weighing a variety of factors, including convenience, quality and access. It is clear that TV remains the main vehicle for viewing video, although online and mobile platforms are an increasingly important complement to live home-based television.”• Americans do not necessarily choose one screen over another at any given time. A little over 31% of Internet use occurs in front of a TV set, while over 100 million of Americans’ ever- present mobile devices are now video-capable. Source: Nielsen 2008, “A2/M2 Three Screen Report” 37
    • 38. More Consumers Watching More Video Online• Online video viewing continued to grow in 2008, with 6% more Americans viewing video from the Internet versus a year ago. Overall more than three quarters of the U.S. Internet audience (146 million people) viewed online video.• In fact, online video viewing accounted for over 12% of Americans’ total time spent on the Internet, up from 8.5% the previous year.• In November 2008, Americans watched 34% more videos versus a year ago, with the average online viewer watching 273 minutes of video, up over 40% vs. the previous year.• Google Sites (YouTube) attracted 98 million online video viewers, or approximately two out of every three internet users who watched video during the month. Source: ComScore November 2008 Video Reporting 38
    • 39. Video Consumption Trends• Younger adults and teens are leading the adoption of “alternative screens” for video. The use of video on the Internet peaks among young adults while viewing mobile video is highest for teens.• Weekdays outpace weekends for online video viewing with 65% of online video viewers streaming content between 9am and 5pm Monday through Friday, versus 51% of online video viewers logging on between 6am and 8pm on weekends.• Growing consumer adoption of the mobile Web and an increase in mobile content have contributed to the boost in viewership from mobile devices. Nielsen’s 4Q08 data shows that mobile video adoption has grown to 11 million Americans, an increase of 9% from the previous quarter.. Source: Nielsen 2008, “A2/M2 Three Screen Report” 39
    • 40. Women and Video• Women are taking the lead in the adoption of online video, watching 41% more video from the Internet than they did last year. Women now spend 227 minutes a month watching online video, up 46% from a year ago.• Women lag behind men, however, in the adoption of mobile video. Women make up only 37% of the audience watching video from mobile phones.• Although they watch more than men, women consume online video in smaller “chunks.” The average video length for women is 2.9 minutes, vs. 3.4 for men.• A report by Grab Networks found that “video snacking” is a real trend among women because online video both meets a content need and is easily accessible throughout their busy days. Respondents said that when they are watching online video, they crave content that transports them mentally away from their daily routine and reality. They also look for "information & inspiration" from relatable "sisters & situations." Sources: comScore November 2008 Video Reporting, Grab Networks, Nielsen 2008, “A2/M2 Three Screen Report” 40
    • 41. Digital Profile | Teens (12-17) • Have a high comfort level with technology, expect instantaneous communication, and are heavy participants in the online arena (93% of teens are online). • Most likely to use the internet for entertainment and for communicating with friends and family. • Significantly more likely than their older counterparts to seek entertainment through online videos, downloaded music and online games, and are the most likely to have visited a virtual world. • Favorite online activity is game playing (78% of online teens play games online). • Significantly more likely than older generations to create/upload content to the Web (64% of online teens are content creators). – Girls dominate the teen blogosphere; 35% of all online teen girls blog, compared with 20% of online teen boys. – Boys, however, are twice as likely as girls to post video files to sites like YouTube (19% vs. 10%). • Use personal blogs to update friends on their lives, and use social networking sites to keep track of and communicate with friends (55% have a social networking site profile). • Significantly more likely than older generations to send instant messages to friends (77% use IM); significantly less likely to rely on email. • Prefer text messaging for personal communication (42%), followed by email (27%), IM (16%) and social networking sites (8%). • Use the different features on their cell phones, especially the camera, internet access, games, and texting. • Playing games on wireless devices most popular activity when younger; texting with friends becomes most popular when older. • Significantly less likely to buy products online (only 38% of online teens buy online). Sources: Simmons’ Teens Study 2008; Pew Internet, Generations Online in 2009; Pew Internet, Teens and Social Media 2007; Exact Target, Walking a Day in Subscribers’ Shoes 2008 41
    • 42. Digital Profile | Gen Y (18-28) • Known as the “Net Generation,” make up just 26% of adult population but over 30% of the online population. • Seek out what’s “hot” and set the pace for technology adoption. Nine in ten own a PC, and more than eight in ten own a mobile phone. • More likely than older users to read other people’s blogs and to write their own; they are also considerably more likely than older generations to use social networking sites and are the most likely to have created a profile on those sites (60% have a profile). • Consume all type of digital media, rivaling the time spent watching TV and far surpassing any time spent reading offline magazines or newspapers. • Significantly more likely to watch online video than any other generation (72% watch video from the Internet). • Most likely of all generations to download video and/or podcasts. • Most active users of the mobile Internet (74% use search on mobile once a month of more). • More likely than older consumers to use just about any type of wireless service, including sending/receiving text or picture messages, sending instant messages, and downloading ring-tones, games, and music files. • Actively research products online (84% research online); most likely generation to rate products online. • Significantly more likely than any other generation to be searching for a job online. • Use email more than teens – or any other generation. Sources: Pew Internet, Generations Online in 2009; Forrester 2008, State of Consumers and Technology, Forrester 2008, Net Challenges Traditional Medial for Young Eyeball; Forrester 2007, Gen Y Is Truly Different ; Forrester 2009, How Generations View the Mobile Internet 42
    • 43. Digital Profile | Gen X (29-42) • Use the Internet less for socializing and entertainment and more as a tool for information searches, emailing, and buying products. • Embrace technology when it supports a lifestyle need, and are the most avid adopters of gadgetry. Although Gen Y gets credit for more active use, a higher percentage of Gen X owns a desktop computer, mobile phone, DVR, handheld video game player and/or smartphone. • One in ten telecommutes at least once a week. • More likely than any other generation to book travel online – especially business travel. One in eight check flight status from their mobile phone (20% more than their Gen Y colleagues). • More likely than any other generation to shop online (80% buy online). • More likely than any other generation to research health online or to visit their health plan site. • Significantly more likely to do their banking online, as they have the financial need and technology confidence (67% bank online). • Although they trail Gen Y, they are as likely to watch online video as teens are (57%). • Are as likely to research products online as Gen Y (84% research online), and are almost as likely to rate a product. • More likely than any other generation to get news online (76% read news online). • The most active generation on eBay and online auction sites. Sources: Pew Internet, Generations Online in 2009; Forrester 2008, State of Consumers and Technology 43
    • 44. Digital Profile | Boomers (43-63) • The largest segment in terms of population (81MM), more than twice the size of Gen Y and of Seniors (38MM each), and over 30% larger than Gen X (62MM). With over 75% accessing the Internet, Boomers also are the largest online segment. • Slower to adopt new technology than younger generations, waiting for the convenience to outweigh the hassle. • Turn to the Internet when it can make a task more efficient or convenient, rather than as a source of entertainment. Often do the same things online as they do offline – tend to not go online for new activities. • Because of the shear size of the segment, Boomers dominate online shopping. They make up nearly 40% of all online shoppers and spend more per capita than any other generation. • Account for nearly half of all travel booked online. • As likely as younger generations to use email and search engines, or to research a product online. • Less likely to view video online than younger generations. • Although one of the fastest growing segments on Facebook, Boomers currently are significantly less likely to visit a social networking site or to have a profile on a social networking site than their younger counterparts. • Significantly less likely to download music from the Internet. • Significantly less likely to browse the Internet from their mobile phone. • Spend twice as much time as Gen Y reading offline magazines and newspapers. Sources: Pew Internet, Generations Online in 2009; Forrester 2008, State of Consumers and Technology; Forrester 2009, How Generations View the Mobile Internet 44
    • 45. Digital Profile | Seniors (64+) • Spend least amount of time online, watching more TV and reading more newspapers than any other generation. Although they’re the fastest growing segment, currently only about half of Seniors access the Internet, making them the smallest online segment. • More than three-quarters send and receive email – the most popular online activity for online Seniors. • Almost as likely as younger generations to use search engines or to research a product online. • Less likely than younger generations to bank online or to read the news online. • Least likely of all generations to visit a social networking site or to create a blog. • Although more than half have a mobile phone, only 3% have a smartphone and they are significantly less likely than any other generation to browse the mobile Web. Sources: Pew Internet, Generations Online in 2009; Forrester 2008, State of Consumers and Technology; Forrester 2009, How Generations View the Mobile Internet; Exact Target, Walking a Day in Subscribers’ Shoes 2008 45
    • 46. Digital Profile | Moms Turn to Online “Community”• Recent research from Mintel defined time-savings, identifying quality and value, and the need to nurture and interact with others as among the primary values of the 83 million mothers in the U.S., and the Internet has become a go-to source for these time-poor, information-hungry, community-seeking moms.• Indeed, as evident in the recent Motrin debacle, moms have developed a powerful online voice, both through online blogs and through the connections they have developed on social networking sites like and Twitter. Nielsen Online data reveals that moms 18-34 are over three times as likely as the general online population to publish a blog, and almost four times as likely to visit a social networking site. And while what these moms talk about online can range from advice to gossip, a 2008 study by Mom Central Consulting found that 78% of mom bloggers review products from their blogs – and 96% of moms value the recommendations they find on these sites.• Separate studies by NewMediaMetrics and CafeMom/Razorfish revealed a distinct difference in what younger Gen Y moms and older Gen X moms seek from the Internet. Gen Y moms are much more attached to media that connects them to other moms like online communities, blogs, and photo and video sharing sites, while Gen X moms tend to engage in more task-oriented activities like online shopping, researching and reviewing products, and photo organization. In fact, the CafeMom study found that Internet-savvy moms with children 12 and older take an interest in social networks largely as a tool for monitoring their kids’ online activities. Sources: Mintel 2007, Marketing to Moms; Mintel 2009, Alpha Moms; Nielsen Online @plan, Report by Enlighten, March 2009; 46