Selection of 2008 UK Digital consumer and advertising trends

UK consumers are embracing an increasingly digital and converged device world TV Audio Mobile Games Online

TV content consumption trends There are now even more ways to watch television content and consumers are increasingly using devices and platforms to time-shift their viewing

87% of homes now have digital television decoder

23% of homes have a Digital Video Recorder (DVR)

88% of DVR owners claim that they usually fast-forward through commercial breaks >>

By April 2008 the BBC iPlayer had a unique monthly audience of 1.4m and was dealing with over 700,000 daily viewing requests

Audio & mobile devices

45% of individuals own MP3 player

27% of consumers have access to DAB radio

More adults in the UK use text messaging than use the internet 59 billion SMS messages were sent in 2007

Two-thirds of phone owners use its alarm function instead of a clock Ofcom 2007 RIP

41% of mobile phone users claim to use their handset for taking pictures 15% uploading photos to their PC 17% claimed that they used their phone for gaming Ofcom 2008

Research suggests that two in five consumers use their mobile phones while watching television, and one in five watch the TV while surfing the web LIBRARY FOOTAGE

Three-quarters of 11 year-olds have their own TV, games console and mobile Ofcom 2007

Two-thirds of children do not believe they could easily live without a mobile and the internet. Ofcom 2007

Games consoles

63% of people 15-24 had access to a games console in Q1 2008

But games consoles are no longer used just for games – 39% of 15-24’s use them for watching DVDs and 26% for listening to CDs

Online

In 2007 Britons were the most active web users in Europe and spent an average 36 minutes each online every day, up from 14 minutes in 2002 .

Ofcom 2007

In 2007 UK women aged 25-34 spent more time online than men of the same age group Ofcom 2007

In 2007 over 16% of over-65s used the web. Spending 30 minutes (50%) longer online per day than any other age group

In the five months from February 2008 there were over 500,000 new mobile broadband connections, with 133,000 connections in June 2008 alone.

The age profile of mobile broadband users is evenly distributed

Questions?

UK digital advertising context

UK Internet advertising has risen by an average of 70.2% in each of the last five years to reach £2.8bn.

For the first time in 2007 the internet attracted more advertising spend than the combined net advertising revenues of ITV1, Channel 4, S4C and Five (£2.4bn) , and as much as all outdoor and magazine advertising spend combined. Newspapers still attract more advertising than any other medium, at £4.7bn in 2007.

Paid-for search continues to dominate

Consumers are more reluctant to pay for services online. As a result advertising supported services are becoming more popular

TV advertising revenues continue to face challenges but digital channels growing strongly

Television advertising revenue remained more or less flat in 2007, at £3.5bn. However, the share of the digital-only channels grew by three percentage points to account for nearly a third (32.6%) of all television advertising. The public service broadcasters were the key beneficiaries of this, accounting for, over two-thirds (68%) of the digital channel revenue growth through their portfolio channels.

Online Advertising supported TV revenue increased dramatically in 2007

Attitudes to behaviour targeted advertising Source: OfCom Communications Market Report 2008

Value placed by consumers on professional and user-generated content Broadcasters and advertisers may be concerned to find that most consumers (other than those 55+) value professional and user-generated content equally. Source: OfCom Communications Market Report 2008

User Generated Content: levels of interest or engagement

Adult internet users aged 16-19 are the most likely group to create and share content using the web, although levels of interest in different creative activities vary by age: