Internet Access & Shopping Report Apr 10

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This report studies the two main aspects of the population in relation to the use of the Internet for purchasing goods and
services -
Who has access to the Internet
Who uses the Internet for Online Shopping.
The purpose of the Report is to provide a detailed view of the current population of Internet Shoppers –
Who they are;
What identifies them amongst the population as a whole;
How their numbers have progressed over the last two years;
What are the differences between those who shop for Groceries and those who shop for all other goods and services.

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Internet Access & Shopping Report Apr 10

  1. 1. The British Population Survey INTERNET ACCESS AND ONLINE SHOPPING PARTICIPATION REPORT APRIL 2010 REPORT PRODUCED BY THE BRITISH POPULATION SURVEY WORKING IN PARTNERSHIP WITH IMRG
  2. 2. INTRODUCTION The internet as an economic force came of age in the recession of 2008 – 2010. The importance of the internet to the daily lives of hard pressed consumers, of all age groups, has become deeper and more valued. Today they search out and find new and innovative ways to make their pounds go further, they look for jobs and access the increasing number of government services now available online. The internet has become a key life management tool for the UK consumer. Growth has been slower but always positive across the ecommerce sector. This has provided a vital commercial buffer for many retailers, their shareholders and their employees. Early 2010 research figures from the IMRG show that ecommerce growth has again accelerated into double digits and that close to 80% of ecommerce retailers look to increase their staffing levels in the next 3 – 9 months. CONTENT This report studies the two main aspects of the population in relation to the use of the Internet for purchasing goods and services - Who has access to the Internet Who uses the Internet for Online Shopping. The purpose of the Report is to provide a detailed view of the current population of Internet Shoppers – Who they are; What identifies them amongst the population as a whole; How their numbers have progressed over the last two years; What are the differences between those who shop for Groceries and those who shop for all other goods and services. The trend charts are based on the period from January 2008 to March 2010, and are constructed as three month rolling averages, each data point being the average figure for the three months to that point. The number of face to face Interviews conducted during this period is 189,319, at an average of over 21,000 interviews per three month period. The profile charts are primarily based on the first quarter of 2010 - January to March inclusive – based on 20,099 face to face interviews. Where comparisons are made to previous ‘first quarters’, the interview totals are 2008 18,394, and 2009 20,500 interviews. The report is structured into four main sections as shown below, together with a fifth section detailing the background and methodology of the Research upon which the report is based. SECTION 1 TRENDS IN INTERNET ACCESS, ONLINE SHOPPING AND COMPUTER OWNERSHIP SECTION 2 INTERNET ACCESS Chart Group 1 Frequency, Type, Method and History, Q1 Comparisons 2008, 2009, 2010 Chart Group 2 Demographic Profiles Comparison to Population Chart Group 3 Profile Comparisons Q1 2008, 2009, 2010 SECTION 3 ONLINE SHOPPING Chart Group 1 Access Frequency, Type, Method and History comparison of Online Shoppers / All Access Chart Group 2 Demographic Profile Comparisons Online Shoppers to Population Chart Group 3 Demographic Profiles Comparisons Q1 2008, 2009, 2010 Chart Group 4 Demographic Profile Comparisons Online Grocery Shoppers to Other Online Shoppers Chart Group 5 Comparison of Other Internet Uses by Online Shoppers to All Users SECTION 4 CONCLUSIONS SECTION 5 METHODOLOGY AND BACKGROUND © APRIL 2010 The British Population Survey (DataTalk Research Ltd). 2 of 14
  3. 3. SECTION 1 TRENDS IN INTERNET ACCESS, ONLINE SHOPPING AND COMPUTER OWNERSHIP The trend charts in this section are based on three month rolling averages, using Interviews conducted from January 2008 to March 2010 inclusive. The total number of interviews on which they are based is therefore 189,319 during the period, an average of over 7,000 interviews per month. There can be no doubt that the most important fact emerging from the longer term trend charts is that in the first quarter of 2010 the percentage of the Adult Population of Great Britain that has actually engaged in Internet Shopping during the last three months has exceeded 50% for the first time. By December 2009 the figure had grown to an historic peak of 48.74%, but by March 2010 it has now risen further to a new high of 51.07%. This comes on the back of an increase in those who have access to the Internet, which has grown from 73.92% in December 2009 to 75.99% in March. It is also important in the long term growth of Online Shopping to note the narrowing in the gap between those who Search for Product Information Online and those who actually purchase. In March 2008, the ratio was 17 Shoppers to every 20 Searchers, and by March 2010 this has become 18 to every 20. Source - BPS IMRG Report April 2010 ONLINE SEARCH + SHOPPING 2008 - 2010 80 70 % OF POPULATION 60 50 40 30 v ov r b r b ct ct ar n g p n ar n g p n ar ec ec l l ay ay Ju Ju Ap Ap No Ju Ja Fe Ju Ja Fe Au Se Au Se O O M M M N M M D D ONLINE SEARCH ONLINE SHOPPING ACCESS © APRIL 2010 The British Population Survey (DataTalk Research Ltd). 3 of 14
  4. 4. Online Grocery Shopping continues its recent upward trend, but has still not yet breached the 15% mark. Other Shopping is also at another all-time high, and at 49.40% in March it can only be a very short time until it breaches the 50% mark. Although the chart might not immediately draw one to the conclusion, Grocery Shopping has grown 50% faster over the last two years than Other Shopping, Grocery Shopping showing a growth of 29% over its March 2008 level, while Other Shopping has shown an 18% rise over the period. Source - BPS IMRG Report April 2010 ONLINE SHOPPING GROCERY / OTHER 50 45 40 35 % OF POPULATION 30 25 20 15 10 5 0 ov ov ct ct r r b b ar ar ar ay l ec ay l ec n g p n n g p n Ju Ju Ap Ap Ju Ja Fe Ju Ja Fe Au Se Au Se O O M M M N N M M D D OTHER GROCERY The growth in Internet Access from 67.94% in March 2008 to 75.99% in March 2010 has parallels with the growth of Computer Ownership during the same period. 78.54% now have a home computer in their household, compared with 70.43% two years ago, whilst Laptops have shown a remarkable growth over the two years, from 34.15% in March 2008 to 53.03% in March 2010. This latter growth represents an increase in ownership of 55% in just two years. Source - BPS IMRG Report April 2010 COMPUTER OWNERSHIP 80 70 % OF POPULATION 60 50 40 30 May Nov May Nov Oct Oct Mar Apr Mar Apr Mar Jul Jul Jun Aug Sep Dec Jan Feb Jun Aug Sep Dec Jan Feb PERSONAL COMPUTER LAPTOP © APRIL 2010 The British Population Survey (DataTalk Research Ltd). 4 of 14
  5. 5. SECTION 2 INTERNET ACCESS - Frequency, Type, Method and History, Q1 Comparisons 2008, 2009, 2010 The Profile charts in this section are based on the Interviews conducted during the months of January, February and March in each of the last three years. The Interview totals are 2008 – 18,394, 2009 – 20,500 and 2010 – 20,099. The charts show the changes in profile over the period for each of the topics. Frequency of access of the Internet over the last two years is INTERNET ACCESS - FREQUENCY characterised by a distinct shift towards greater frequency. This is clearest at the most frequent, with 57% of all those with 60 access now accessing the Internet more than once a day, up 50 % OF ALL WITH ACCESS from 48% two years ago. 40 Whilst this could be seen as a natural progression with increased familiarity with the medium, when it is analysed in 30 conjunction with the history of access figures later it becomes 20 more likely that this is a direct result of the increased access to 10 much faster download speeds, meaning each period of access becomes more productive. These figures also clearly show 0 > ONCE ONCE A 4/5 A 2/3 A 1A 2/3 A 1A <1A that accessing the Internet is also becoming an integral part of A DAY DAY WEEK WEEK WEEK MONTH MONTH MONTH everyday living. Source - BPS Q1 '08 Q1 '09 Q1 '10 IMRG Report April 2010 The only real change observed in Access Type is the growth in INTERNET ACCESS - TYPE Cable access, up from 27% of All with Access in 2008 to 32% in 2010. ADSL has seen a corresponding marginal reduction 70 of 2% from 60% to 58%. 60 However with the growth in the overall number of people with % OF ALL WITH ACCESS 50 access over the period, ADSL, Other Broadband and Non 40 Broadband have seen growth in the actual numbers of 30 customers. 20 10 0 CABLE ADSL BROADBAND OTHER NON BROADBAND BROADBAND BROADBAND Source - BPS Q1 '08 Q1 '09 Q1 '10 IMRG Report April 2010 Methods of Access continue to grow across the board, as INTERNET ACCESS - METHOD consumers increasingly find their methods of accessing proliferating. Over the past two years the largest growth has 100 90 come in Mobile Devices, up from 4% in 2008 to 13% in 2010. % OF ALL WITH ACCESS 80 This can almost certainly be attributed to the phenomenal 70 growth in the ability to use the new generation of mobile 60 50 phones to access the internet through roaming facilities. 40 Even so, this has not resulted in an adverse effect on facilities 30 like Internet Cafes, which have nevertheless shown a growth 20 10 in use of 21% over the period, from 5.79% to 7.03%. 0 PC HOME PC WORK / INTERNET MOBILE TV SET GAMES UNI / CAFE, ETC DEVICE CONSOLE SCHOOL Source - BPS Q1 '08 Q1 '09 Q1 '10 IMRG Report April 2010 With over 60% of all who have access to the Internet showing INTERNET ACCESS - HISTORY Source - BPS IMRG Report April 2010 a track record of over 6 years, and over 90% having had access for more than a year, there is a clear indication that 70 these rises are not solely a demonstration of familiarity leading 60 % OF ALL WITH ACCESS to increased use over time. If so, they would have been 50 evidenced in previous years. 40 It is more likely to be the result of a combination of factors. 30 Enhanced Download Speeds, Mobile Access, and affordable 20 home technology will undoubtedly have played their part. 10 However it could well be that the increase in promotion of 0 online services, the inclusion of a website address in almost S S S S RS RS RS S S TH H H R AR AR NT NT A A A A every advert, and crucially the web presences of familiar and N YE YE YE YE YE YE O O O M M M -2 -3 -4 -5 6 6 -6 2 3 trusted household names from the High Street, have played an > - -1 1 2 3 4 < 5 3 6 important part in the progress. © APRIL 2010 The British Population Survey (DataTalk Research Ltd). 5 of 14
  6. 6. INTERNET ACCESS – Demographic Profiles Comparison to Population The Charts in this section are based on Quarter 1 2010, and are the results of 20,099 interviews conducted during this period. They show the profile of All with Access to the Internet in side by side comparison with the profile of the Adult Population. As a result, they provide an instant picture of the strength of penetration of the Internet in the various sectors. Men are marginally more likely to have access to the internet ACCESS PENETRATION - Q1 2010 than women, representing 50.5% of Access as opposed to GENDER & LIFESTAGE 48.5% of the population. 60 Those with families are the most overweight lifestage, representing 38.5% of Access as against 32.7% of the 50 % OF LEGEND GROUP Population. The lack of Access in the Post Family group 40 results in the other lifestages showing as slightly overweight. 30 This will largely be driven by the data demonstrated in the next 20 chart. 10 0 MALE FEMALE SINGLE PRE FAMILY POST FAMILY FAMILY Source - BPS INTERNET ACCESS POPULATION IMRG Report April 2010 With over 75% of the adult Population having Access to the ACCESS PENETRATION - Q1 2010 Internet the differences in the profile of those with Access will AGE GROUPS inevitably start to become more obscured. At first glance the 25 profiles are therefore very similar in pattern, but the underweight Access in the Over 65 age group, (not in the 20 slightest unexpected in its own right) should not be allowed to % OF LEGEND GROUP deflect attention form the fact that almost a quarter of those 15 with Internet Access are over 55, and over 40% are aged over 10 45 years. The under 35 age group, often characterised as the vanguard 5 of early adopters in the high-tec fields, whilst being overweight 0 in each sub-group actually represent only 37% of the total of 15 - 17 18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65+ Internet Access. Source - BPS INTERNET ACCESS POPULATION IMRG Report April 2010 There is nothing much to be surprised about in this chart, with ACCESS PENETRATION - Q1 2010 the penetration of the various Socio-economic groups largely SOCIAL GRADE falling in line with intuitive expectation. 35 It is nevertheless important to include the data, if for no other reason than to confirm that expected range of penetration, 30 % OF LEGEND GROUP rather than leave any doubt. 25 20 15 10 5 0 A B C1 C2 D E Source - BPS INTERNET ACCESS POPULATION IMRG Report April 2010 The regional profile perfectly demonstrates that there is ACCESS PENETRATION - Q1 2010 virtually no regional bias at all. If all figures are rounded to the REGIONS nearest whole number percentage, the only regions that show % OF LEGEND GROUP 25 a difference are South East, where the actual difference is 20 1.06% Access overweight, and Scotland, where the difference 15 is 0.59% Access underweight. 10 5 0 H N D ST S A T T DS E ES RT ES ES AN O LI ND D EA AL N ND SI G NO W W TL LA LA AN R W H LO H BE H O ID ID UT RT UT SC ST M M R M SO EA TE NO SO HU T ST ES EA EA & W R S G RK YO Source - BPS INTERNET ACCESS POPULATION IMRG Report April 2010 © APRIL 2010 The British Population Survey (DataTalk Research Ltd). 6 of 14
  7. 7. INTERNET ACCESS – Profile Comparisons Quarter 1 2008, 2009, 2010 The charts in this section compare the Demographic profiles of Internet Access for the First Quarters of 2008, 2009 and 2010, to show the changes happening over the last two years. The interview numbers in each case are :- 2008 – 18,934, 2009 – 20,500, 2010 – 20,099. The changes are subtle, but the understanding of the make-up INTERNET ACCESS PROFILE of the potential market is only enhanced by recognising and GENDER & LIFESTAGE appreciating those changes over time. 60 Gender equality in Access is fast approaching, with the % OF ALL WITH ACCESS difference down by 2010 to only 1%, Males representing 50 50.5% and Females 49.5%. 40 In Lifestages the growth has been in the Family and Post 30 Family groups, with marginal increases by 0.57% and 0.87% 20 respectively. 10 0 MALE FEMALE SINGLE PRE FAMILY POST FAMILY FAMILY Source - BPS Q1 '08 Q1 '09 Q1 '10 IMRG Report April 2010 Across the Age groups the growth is again occurring across INTERNET ACCESS PROFILE the 55 to 64 and Over 65 groups, with compensating AGE GROUPS reductions across the younger groups. 25 It is perhaps a natural progression of this perspective to see growth patterns of this nature - a simple expectation, as the % OF ALL WITH ACCESS 20 population naturally progresses though the groups, to see a fairly constant increase in the penetration across the older age 15 groups for a considerable period of time to come. 10 However, penetration of the older age groups is still a dynamic force. If we ignore the 2 year progression, we see that the 67+ 5 age group in March 2008 showed 26.96% with Internet Access, but by 2010, the 69+ age group (the same cohort 2 0 15 - 17 18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65+ years older) now show 33.45% with Internet Access – a quite Source - BPS Q1 '08 Q1 '09 Q1 '10 remarkable increase of a quarter in just 2 years. IMRG Report April 2010 The gentle increase in the percentage of people with Internet INTERNET ACCESS PROFILE Access in the C2, D and E groups is compensated by the SOCIAL GRADE percentage decrease in the B and C1 groups, even though 35 these do not represent drops in actual numbers. The increasing ease of access through more economically 30 % OF ALL WITH ACCESS viable channels, and the creation of access through service 25 ‘bundles’, is inevitably creating a more naturally enfranchising 20 environment for the groups with less disposable income. 15 The increasing weight of these groups within the profile is 10 therefore likely to continue until all groups are more evenly 5 weighted against the population profile. 0 A B C1 C2 D E Source - BPS Q1 '08 Q1 '09 Q1 '10 IMRG Report April 2010 There are no particular changes being evidenced across the INTERNET ACCESS PROFILE Regions, other than the marginal effects of the general REGIONS increase in Access. % OF ALL WITH ACCESS 25 It may be that some of the changes, such as the slight 20 increase in weighting of the North West, could be put down to 15 a side-effect of the Digital TV switch over encouraging 10 consumers to adopt premium services which include bundled 5 Internet Access. However this cannot be verified by the 0 research. H N D ST S A T T DS E ES RT ES ES AN O LI ND D EA AL N ND SI G NO W W TL LA LA AN R W H LO H BE H O ID ID UT RT UT SC ST M M R M SO EA TE NO SO HU T ST ES EA EA & W R S G RK YO Source - BPS Q1 '08 Q1 '09 Q1 '10 IMRG Report April 2010 © APRIL 2010 The British Population Survey (DataTalk Research Ltd). 7 of 14
  8. 8. SECTION 3 ONLINE SHOPPING - Access Comparison of Online Shoppers to All With Internet Access The charts in this section of the report are again based on the Interviews conducted during the first quarter of 2010 (total 20,099). Their purpose is to begin to identify characteristic differences of Online Shoppers compared to All With Access, in order to provide information to assist in the acquisition of new customers for online retailers. The immediate result of this first chart is to demonstrate the COMPARISON Q1 2010 direct correlation between frequency of engagement and Online ACCESS V SHOPPER - ACCESS FREQUENCY Shopping. 70 It would be wrong to regard this as being purely cause and effect 60 because, as we shall see in a later section, the really frequent % OF LEGEND GROUP 50 Internet Users are more likely to be using the Internet for Emails 40 and Information on Hobbies and Interests. Therefore this 30 becomes a significant market identifier. 20 10 0 > ONCE ONCE A 4/5 A 2/3 A 1A 2/3 A 1A <1A A DAY DAY WEEK WEEK WEEK MONTH MONTH MONTH Source - BPS INTERNET ACCESS ONLINE SHOPPING IMRG Report April 2010 63.23% of Online Shoppers have ADSL Broadband Access, COMPARISON Q1 2010 compared to 58.27% of All With Access, whilst the comparison ACCESS V SHOPPER - ACCESS TYPE reverses with Cable Broadband where 32.36% have that type of 70 Access but they only contribute 31.19% of Online Shoppers. 60 However it is a straightforward fact that ADSL and Cable % OF LEGEND GROUP 50 Broadband Access between them account for almost 95% of the Online Shopping marketplace. 40 30 20 10 0 CABLE ADSL BROADBAND OTHER NON BROADBAND BROADBAND BROADBAND Source - BPS INTERNET ACCESS ONLINE SHOPPING IMRG Report April 2010 This chart ably demonstrates a phenomenon that can easily COMPARISON Q1 2010 confuse, as in every case Online Shoppers show a higher ACCESS V SHOPPER - ACCESS METHOD percentage than All With Access. This effect can be caused 100 when one of the questions under analysis allows for more than 90 % OF LEGEND GROUP one answer – in this case Methods of Access. 80 70 On average, All With Access to the Internet have 1.6 Methods of 60 Access, whilst Online Shoppers have an average of 1.73 50 40 Methods of Access - again demonstrating the familiarity aspect. 30 It would be easy to see Mobile Device as of growing importance 20 from this profile, but looking deeper only 4.67% of Mobile Device 10 0 owners have no other method of access. The research shows PC HOME PC WORK / INTERNET MOBILE TV SET GAMES the actual Methods that people possess, it does not show which UNI / SCHOOL CAFE, ETC DEVICE CONSOLE method they actually use to effect their transactions. Source - BPS INTERNET ACCESS ONLINE SHOPPING IMRG Report April 2010 68.71% of Online Shoppers have been accessing the Internet for COMPARISON Q1 2010 longer than 6 years, as compared to only 60.82% of All With ACCESS V SHOPPER - ACCESS HISTORY Access. This is a further demonstration of the effect of long term 80 engagement and familiarity with the medium being a powerful % OF LEGEND GROUP 70 indicator of the likelihood of an individual becoming an Online 60 50 Shopper. 40 30 20 10 0 S S HS S RS RS RS RS S H H AR AR NT NT NT A A A A YE YE YE YE YE YE O O O M M M -2 -3 -4 -5 6 6 -6 2 3 > - -1 1 2 3 4 < 5 3 6 Source - BPS INTERNET ACCESS ONLINE SHOPPING IMRG Report April 2010 © APRIL 2010 The British Population Survey (DataTalk Research Ltd). 8 of 14
  9. 9. ONLINE SHOPPING - Demographic Profile Comparisons Online Shoppers to Population This section continues to study the identifying characteristics of the Online Shopper, by providing Demographic Profiles of Online Shoppers, and combining these with a comparison with the profiles of the Adult Population. The charts are based on the first quarter of 2010, utilising the results of 20,099 interviews. Males are slightly more likely to be Online Shoppers than ONLINE SHOPPING PENETRATION - Q1 2010 Females, representing 50.22% of Shoppers, but only 48.52% GENDER & LIFESTAGE of the Adult Population. 60 Lifestage penetration is dominated by the underweight representation of the Post Family group, where they represent 50 % OF LEGEND GROUP 47.2% of the Adult Population but only 37.03% of Online 40 Shoppers. However this should not obscure the fact that even 30 though they may be an underweight sector, they still represent 20 a far larger proportion of Online Shoppers then Single and Pre Family combined. 10 0 MALE FEMALE SINGLE PRE FAMILY POST FAMILY FAMILY Source - BPS ONLINE SHOPPERS POPULATION IMRG Report April 2010 The main differentials here are the overweight representation ONLINE SHOPPING PENETRATION - Q1 2010 of the 35-44 Age Group in Online Shoppers, at 23.2% against AGE GROUPS 18.2%, and the underweight representation of the Over 65 Age 25 Group at 8.64% against 19.61%. The strength of Online Shopping clearly lies around the central 20 % OF LEGEND GROUP three groups, with them together representing 60.94% of 15 Online Shoppers, compared to 49.84% of the Adult Population. 10 5 0 15 - 17 18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65+ Source - BPS ONLINE SHOPPERS POPULATION IMRG Report April 2010 It can only be regarded as ‘intuitively natural’ to see this ONLINE SHOPPING PENETRATION - Q1 2010 demonstration of the ABC1 sector being universally SOCIAL GRADE overweight in Online Shopping, and the C2DE sector being 35 universally underweight. 30 However it can be useful to see the facts quantified, because % OF LEGEND GROUP even though the C2DE sector may be underweight, it still 25 represents almost 32% of the Online Shopping market. The 20 ‘underweight factor’ here should be viewed as a measure of 15 potential, rather than a measure of shortfall. 10 5 0 A B C1 C2 D E Source - BPS ONLINE SHOPPERS POPULATION IMRG Report April 2010 To an extent this chart is heavily influenced by the Regional ONLINE SHOPPING PENETRATION - Q1 2010 Access data seen in Section 2, but this does not account for REGIONS the strongest differentials shown here. % OF LEGEND GROUP 25 Perhaps the most striking comparisons here can be seen 20 between the South East, where Online Shoppers contribute 15 23.36% of the total market against 19.53% of the Population, 10 and Greater London where the weights are reversed to show 5 9.98% of Online Shoppers but 12.80% of the Population. 0 H N D ST S A T T DS ES E RT ES AN O ES LI ND D EA AL ND N SI G NO W W TL LA LA AN R W H LO H O BE H ID ID UT RT UT SC ST M M R M SO NO SO EA TE HU T ST ES EA EA & W R S G RK YO Source - BPS ONLINE SHOPPERS POPULATION IMRG Report April 2010 © APRIL 2010 The British Population Survey (DataTalk Research Ltd). 9 of 14

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