Vox Populi:State of the MediaDemocracy SurveyAustralia’s media usage and preferences 2012 GO   »
Contents                  Foreword       About this surveyEntertainment   Media devices        Internet         Advertisin...
ForewordForeword                     What are Australian consumer habits when it comes to media            This survey is ...
About this surveyForeword                     Focussing on four generations and five distinct age groups, the     Undertak...
Key findingsForeword                                                                                          The investme...
Foreword                     Australians are, however, watching more of their favourite TV           in 2011 and tablet pe...
Foreword                     finding to be consistent with findings in other participating countries   While industry spen...
Foreword                     Respondents have demonstrated a desireAbout this survey    to receive more targeted advertisi...
EntertainmentForewordAbout this survey                          So many options,                          but we’re still ...
EntertainmentForeword                                                                                                     ...
Foreword                     TV rules, OK?                                                                 For Australian ...
Foreword                     Figure 3. Methods used to watch favourite TV show                     This preference for liv...
Foreword                     Figure 4. Online methods used to watch favourite TV show              New broadcast content i...
Foreword                     Tablets and smartphones are the commuter’s portable                     DVR                  ...
Foreword                     Figure 6. TV watching multi-tasking behaviours                            The challenge for o...
Foreword                     Figure 7: Examples of integrated content offerings                     Example: ABC Q&A      ...
Media devicesForewordAbout this survey                          We love smartphones,                          but not nece...
Media devicesForewordAbout this survey        “My phone can                          be used to do         63% use their p...
Foreword                     Our love affair with smartphones continues                                Figure 8. Product o...
Foreword                     Although smartphones provide a significant amount of                      Figure 9. Smartphon...
Foreword                     Tablet adoption is nearly equally distributed across all age groups        Accordingly, a ver...
Foreword                     Figure 11. Devices used to make purchases                                 A total of 60% of s...
Foreword                     Consistent branding and customer experience across                                           ...
InternetForewordAbout this survey                           The Internet is                           entertaining us…    ...
InternetForeword                     “I want to be ableAbout this survey       to share what’s                            ...
Foreword                     The Internet is second only to TV as the most popular form                    Millennials and...
Foreword                     Figure 13 – Share of online time                                      Online reviews and reco...
Foreword                     Self-publication is less popular in Australia                                           provi...
Foreword                                                                                         Australian consumers are ...
AdvertisingForewordAbout this survey                          If the TV said so,                          it must be true!...
AdvertisingForeword                     “Unobtrusive targeted            63% still believe TV is        67% still enjoy re...
Foreword                     TV advertising remains the most influential on consumer                    Despite the influe...
Foreword                     Figure 16. Influence of overall advertising                                           Ad-skip...
Vox populi - State of the Media Democracy Survey
Vox populi - State of the Media Democracy Survey
Vox populi - State of the Media Democracy Survey
Vox populi - State of the Media Democracy Survey
Vox populi - State of the Media Democracy Survey
Vox populi - State of the Media Democracy Survey
Vox populi - State of the Media Democracy Survey
Vox populi - State of the Media Democracy Survey
Vox populi - State of the Media Democracy Survey
Vox populi - State of the Media Democracy Survey
Vox populi - State of the Media Democracy Survey
Vox populi - State of the Media Democracy Survey
Vox populi - State of the Media Democracy Survey
Vox populi - State of the Media Democracy Survey
Vox populi - State of the Media Democracy Survey
Vox populi - State of the Media Democracy Survey
Vox populi - State of the Media Democracy Survey
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Vox populi - State of the Media Democracy Survey

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Deloitte research report covering Australia's media usage and preferences 2012. For more information refer http://www.deloitte.com/au/mediademocracy

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Vox populi - State of the Media Democracy Survey

  1. 1. Vox Populi:State of the MediaDemocracy SurveyAustralia’s media usage and preferences 2012 GO »
  2. 2. Contents Foreword About this surveyEntertainment Media devices Internet AdvertisingNewspapers & References Re Relevant Deloitte Contacts magazines thought leadershipp
  3. 3. ForewordForeword What are Australian consumer habits when it comes to media This survey is part of a Deloitte research project which was consumption and how will they change? What are consumer conducted across the globe in 2011, covering Australia, France, preferences and attitudes towards future technology? Do Germany, India, Japan, Spain, the United Kingdom, and the UnitedAbout this survey Australians consume media differently to people in other countries? States. In Australia, data gathering, performed by an independent What are the specific challenges that Australian companies are research organisation, obtained usage and preference data from facing as they anticipate and respond to these preferences and over 2,000 Australian consumers across five distinct demographics. behaviours? We are constantly fascinated by changing consumer behaviours The first edition of our State of the Media Democracy survey and how they are impacting our clients – representing material provides unique demographic insights into how Australian challenges and opportunities. We remain committed to workingEntertainment consumers are currently interacting with technology, purchasing closely with our clients to help them stay ahead of these dynamics products and responding to TV and online advertising. so their businesses can respond appropriately.Media devices These observations and insights are relevant to all companies We hope you find this report useful and we look forward to doing grappling with the challenges of engaging new and existing it all again next year so we can report on how things have shifted. customers and audiences via new platforms, devices and media.Internet This survey considers: • Consumer usage and preferences for traditional and emerging media devices and platforms Damien Tampling Clare HardingAdvertising • The evolving adoption of mobile devices Partner Partner • Reactions to conventional and next generation advertising National Leader Consulting • Emerging customer preferences and the implications for Technology, Media Technology, MediaNewspapers & advertisers, content producers, distributors, developers and & Telecommunications & Telecommunicationsmagazines device manufacturers.ReferencesRelevant Deloitte thought leadership 01
  4. 4. About this surveyForeword Focussing on four generations and five distinct age groups, the Undertaken by an independent research organisation between 09 survey aims to provide a ‘reality check’ on how consumers between November 2011 and 08 December 2011, the survey employed an the ages of 14 and 75 are interacting with media, entertainment online methodology to obtain usage and preference data from overAbout this survey and information (as depicted in Figure 1). 2,000 Australian consumers. Additional insights for this report were derived from Deloitte Technology, Media and Telecommunications (TMT) specialists who Figure 1. Consumer groups surveyed work every day with leading Australian companies in these sectors. Where appropriate, we have also included insights and findingsEntertainment from the research conducted by other Deloitte member firms around the globe as part of the State of the Media Democracy Trailing millennials Leading millennials report.Media devices Age:14–22 Age: 23–28Internet Xers Age: 29–45AdvertisingNewspapers &magazines Boomers Matures Age: 46–64 Age: 65–75ReferencesRelevant Deloitte thought leadership 02
  5. 5. Key findingsForeword The investment choices and operating model decisions of all In a world of more content, more companies will inevitably be affected by this digital complexity.About this survey connectivity, more devices and more The challenge is to anticipate what is most important to your customers and, therefore, grasp how to build new capabilities to interaction, some home truths remain retain brand loyalty and revenue in a world of exploding choice and the same… and we still love TV competition. This survey reveals a number of key themes, including: Entertainment • The continuing importance of live TV, notwithstanding the A total of 63% of Australians surveyed prefer to watch TV content, growing importance of ‘my time, my choice’ viewing on any device, more than any other form of entertainment. ThisEntertainment is followed closely by using the Internet (47% of respondents) for • The continuation of platform convergence and the challenges social or personal interests. Compared to international consumers of achieving a consistent brand or product experience across surveyed, Australia’s preference for watching TV is less than that for platforms and devicesMedia devices • The importance of anticipating consumer preferences to curate consumers in the US, Germany, Japan and the UK and Australians also use the Internet less for entertainment purposes than observed the ‘right’ content for consumers in most other countries, except for Germany and Japan. • The rise of the tablet and the early signs that is it displacingInternet laptop usage in certain circumstances. Watching live TV on a home system remains the significantly favoured method for watching TV content across all age groups. Consumers are doing more of everything – converting, shifting, In Australia, 64% of consumers surveyed typically watch theirAdvertising viewing and sharing. This explosion of digital-based behaviour is favourite programs in this way, followed by Online (19%) and via driving complexity and uncertainty for all companies – both those a Personal Video Recording (PVR) device (11%). This suggests that that do and don’t currently engage with customers via digital the TV schedule is still guiding viewing choices and that for mostNewspapers & channels. What is certain is that the younger generations we people, the allure of TV is still tightly linked to the passive nature of surveyed are unsurprisingly engaging digitally and in ways which viewing – they can sit back and be entertained on a large formatmagazines have never been conceived of before. What is surprising is that in device in the comfort of their own home. TV as we currently know a number of cases older generations too have vigorously adopted it retains social currency or the ‘water-cooler factor’, whereby digital media for certain activities. viewers are attracted to major TV events as a mechanism for socialReferences inclusion.Relevant Deloitte thought leadership 03
  6. 6. Foreword Australians are, however, watching more of their favourite TV in 2011 and tablet penetration is expected to triple over the coming shows on the road via smartphones and tablets, with 12% of those years. Australian consumers are increasingly using smartphones surveyed having watched TV shows on online devices such as and tablets as legitimate substitutes for more longstandingAbout this survey smartphones, tablets and portable games consoles. This behaviour entertainment and productivity devices, such as the laptop. is currently skewed heavily towards Trailing and Leading Millennials, but we expect this behaviour to shift up the age brackets in coming The importance of platform convergence, consistent branding and years. In Australia, 4% of respondents watch TV on a tablet, which customer experiences across multiple channels is increasing as more places Australian respondents third behind India and the UK in Australian consumers use multiple devices to consume media. We the countries surveyed. We would expect this rate to increase would also anticipate an increased role for cloud-based, online in coming years, especially as the penetration of tablet devices storage as consumers increasingly attempt to shift content betweenEntertainment increases. devices. The majority of Australians (60% of respondents) are multi-tasking InternetMedia devices while watching TV. While it may be fair to assume that audiences According to the survey results, the Internet is the second most- have always multi-tasked by reading, cooking or eating while preferred type of media entertainment and continues to challenge watching TV, what is true now is that six of the seven top TV and traditional forms of entertainment for consumers’ time and multi-tasking behaviours occur on another electronic device. The attention. Millennials and Boomers have an even more pronouncedInternet challenge for organisations is to engage consumers further by preference for spending time online via portable devices. creating interactive opportunities, which are linked to the content, either on the TV or on other devices. The most common activity on the Internet across all age groupsAdvertising surveyed is using search engines as a gateway for other activities, Media devices such as seeking product reviews or comparing prices. According to the survey, Australia has one of highest smartphoneNewspapers & and tablet penetration rates worldwide (46% and 13% Online reviews and recommendations are particularly influentialmagazines respectively). A weak economic outlook and low consumer factors in buying behaviours. Although seeking product information confidence might be expected to reduce consumer spending on online is equally popular across all age groups, Millennials and Xers discretionary items such as new TV sets or tablet computers; but are more influenced by online reviews and recommendations thanReferences this has not happened. In fact, tablet sales skyrocketed in Australia older generations. The global survey data shows this AustralianRelevant Deloitte thought leadership 04
  7. 7. Foreword finding to be consistent with findings in other participating countries While industry spending on online advertising has increased, our (with the exception of Japan), with consumers overseas even more survey reveals that newspaper advertising remains a more influential influenced by online reviews. The majority of Australian consumers form of advertising in Australia than other forms of advertisingAbout this survey surveyed had also learned of a new product for the first time online including online. One reason for this is that 69% of Australian or made a purchase decision based on an online review. consumers perceive online ads as more intrusive and, therefore, less effective than other forms of advertising. Advertising TV advertising is still the most influential form of advertising on We believe this presents both an opportunity and challenge to consumer buying decisions in Australia (68% of respondents), advertisers and the need to reassure consumers regarding the followed by newspapers (53%) and online advertising (47%). The security of privacy in online environments will become moreEntertainment affinity of Australian consumers with TV advertising is broadly pronounced in coming years. consistent with global trends, with the exception of Japan, where online advertising is the most influential on consumer buying Newspapers and magazinesMedia devices decisions. As evidenced by the survey, the majority of Australian consumers still prefer the print format and value their newspaper subscriptions This is consistent with and reinforces our view that TV remains far more than online newspapers and magazines. However, a powerful force in entertainment consumption and a powerful newspaper content is increasingly being consumed in differentInternet ingredient in most advertising budgets. formats and on different devices, with 58% of Australian respondents having done so in a format other than the traditional Nevertheless, consumer behaviours such as ad-skipping on Digital printed hard copy. This adoption of non-printed hard copy forms ofAdvertising Video Recorders (DVRs) and TV viewer multi-tasking are potential newspaper consumption is consistent with the US, France and the catalysts to reduce the influence of TV advertising over time. UK, ahead of Germany, but significantly behind India and Spain. Advertisers have the opportunity to rethink ad design and toNewspapers & incorporate the ‘small screen’ of smartphones, tablets and laptopsmagazines into the ‘big screen’ viewing experience of the TV. We believe the challenge is to shape the multi-tasking behaviour into a multi- tasking experience built around the product being advertised,References increasing consumer engagement with the brand or product and maintaining advertising effectiveness in an environment of attention saturation.Relevant Deloitte thought leadership 05
  8. 8. Foreword Respondents have demonstrated a desireAbout this survey to receive more targeted advertising, but paradoxically don’t want to share the personal information that would facilitate better targetingEntertainment Opportunities exist for newspaper providers and advertisers to connect with consumers across multiple platforms and provide an integrated content or brand experience. The challenge for Australian publishers is the same as that being experiencedMedia devices throughout the globe – how to move consumers from paid print to paid digital content – and whether consumers will demonstrate a willingness to pay for online content that they have, to date, beenInternet able to access for free. From our observation, topic depth, in-content verticals which incorporate search capabilities, exclusive and differentiated onlineAdvertising stories and inherent content portability are the key to driving consumers’ online adoption.Newspapers &magazinesReferencesRelevant Deloitte thought leadership 06
  9. 9. EntertainmentForewordAbout this survey So many options, but we’re still in the mainEntertainment couch potatoesMedia devicesInternetAdvertisingNewspapers &magazinesReferencesRelevant Deloitte thought leadership 07
  10. 10. EntertainmentForeword 61% choose using the “Nothing can beat 82% prefer Internet for social and the Internet for computers to TV 72% use personal interests in theirAbout this survey entertainment for entertainment mobile phones for top three entertainment purposes” purposes entertainment categories Trailing millennials “TV is fun but the 56% chose watching Internet provides me 70% prefer Only 17% chose TV on any device in theirEntertainment with more variety and computers to TV listening to the radio top three entertainment interest” for entertainment in their top three categories Leading millennialsMedia devices “Both TV and 60% think that the 64% chose watching computers offer computer is more an 49% use their TV on any device in their me valid forms of entertainment device mobile/smartphone as top three entertainmentInternet entertainment” than TV entertainment device categories XersAdvertising “The Internet is 39% place useful but TV offers 67% chose watching reading newspapers Only 46% prefer TV on any device in their in their top three me more relevant their computer top three entertainment entertainmentNewspapers & entertainment over their TV categories categoriesmagazines options” Boomers “Traditional mediaReferences provides me with all 73% place watching Only 6% use 51% value reading the entertainment I TV in their top three mobile phones for the newspaper for entertainment entertainmentRelevant Deloitte need” entertainment categories Maturesthought leadership 08
  11. 11. Foreword TV rules, OK? For Australian Trailing Millennials, the use of the Internet for social Australian respondents prefer to watch TV content, on any device, or personal interest is the preferred entertainment source (61% of more than any other form of entertainment. This is followed closely respondents), while older generations of Australian consumersAbout this survey by using the Internet for social or personal interests. prefer reading newspapers (51% of respondents) and books (35% of respondents) over using the Internet for social or personal Figure 2. Ranking of preferred sources of entertainment reasons. Preferred sources of entertainment among all Australian consumers surveyed. Please rank your top three. Compared to international consumers surveyed, Australian respondents preference for watching TV is less than that of consumers in the US, Germany, Japan and the UK. Australians alsoEntertainment Watching television (on any device) 63% use the Internet less for entertainment purposes than observed in Using the Internet for social or personal interests 47% most other countries, except for Germany and Japan.Media devices Listening to music (using any device) 35% Live TV remains the most popular method of content delivery Reading newspapers (either printed or online) 30% Watching live TV on a home system remains the number one method to watch favoured content across all age groups. It isInternet Reading books (either physical books or via an e-book reader/online 29% preferred by over 50% of Millennials and 70% of Boomers and Matures. Watching TV via DVRs is equally popular across all age Going to the movies 25% groups with a slighter higher percentage within older age groups.Advertising Listening to the radio (any format/device) 22% Reading magazines (either printed or online) 18%Newspapers & Attending live performances (sporting events,magazines concerts, or stage (musical, dramatic or other) 16% Playing videogames (handhelds, PC, console, 15% mobile/cellular/smartphone, online)ReferencesRelevant Deloitte thought leadership 09
  12. 12. Foreword Figure 3. Methods used to watch favourite TV show This preference for live TV on a home system possibly relates to How do you typically watch your favourite TV shows using the the social currency of TV or the ‘water-cooler factor’, whereby following methods? viewers are attracted to major TV events in part as a driver ofAbout this survey social inclusion. Further, TV still remains principally a ‘push’ service, 64% whereby viewers are largely passive in their relationship with TV content and enjoy the benefits of having a content curator assemble and schedule programming for them. Compounding 19% 11% 9% 9% this in Australia is a lack of emergent alternatives to traditional TV, 3% such as IPTV players like Hulu. We wonder how quickly this may Live TV Online DVR DVD/ Other ‘On change given younger generations’ relatively higher usage of onlineEntertainment system Blu-ray demand’ platforms and the proliferation of content platforms and devices. Of the respondents surveyed, Australia trails the US and UK in DVR usage, with 31% of U.S. consumers and 23% of UK consumers Online is an increasingly popular platform on which toMedia devices watching their favourite TV shows on a DVR device, compared watch broadcast TV or movie content to 11% of Australian consumers. Although the use of DVR is Online sources, namely a TV show’s Internet site, video-sharing challenging live TV, it is currently a distant number three for sites, peer-to-peer networks and free online video services now Australian consumers. account for 19% of the total of methods used to watch TV orInternet movie content. There is a significant difference among Australian Additionally, consumers in all other surveyed countries, except for consumers with the adoption of the online platform between Germany and Japan, watch more TV online (i.e. source TV content Millennials and other age groups. Millennials (39%) use an onlineAdvertising via streaming, video-on-demand and legitimate or illegal platform to view TV content on a weekly basis, which is twice as download sites) than Australian consumers. much as Xers (20%), nearly six times more than Boomers (7%), and 20 times more than Matures (2%).Newspapers &magazinesReferencesRelevant Deloitte thought leadership 10
  13. 13. Foreword Figure 4. Online methods used to watch favourite TV show New broadcast content is being discovered via TV How do you typically watch your favourite TV shows using the commercials and programs following methods? Overall, 73% of Australians surveyed discovered their favouriteAbout this survey TV show via TV commercials and TV programs, while 11% of 14% consumers gain information on new TV shows through online 11% reviews, advertising, recommendations or social networking 10% 10% sites. Younger generations are more influenced by information 9% 9% 8% provided online, with almost 20% of Millennials discovering TV 7% 6% shows online compared to 6% of Boomers and 3% of Matures. 5% 5% 4% The percentage of Australians discovering their favourite TV showEntertainment 3% 2% 2% online is higher than in the US, France, Germany and the UK. 1% 1% Shows Video-sharing Online P2P Free online Figure 5. Method of discovering favourite TV showMedia devices Internet site site network video service How did you first discover your favourite TV show? Trailing millennials TV commercial 38% Leading millennialsInternet Xers By chance while watching other TV programming 35% Boomers Matures Offline recommendation from another person 9%Advertising Consumers in most other countries surveyed, specifically in the US and India, view more TV via free online video services than Online review 4% consumers in Australia, while online peer-to-peer networks Print review 4%Newspapers & seem to be more popular in Australia than in all other countriesmagazines surveyed, except Spain and India. Online recommendation from a person 3% Print advertising 3%References On a social networking site 2%Relevant Deloitte Online advertising 2%thought leadership 11
  14. 14. Foreword Tablets and smartphones are the commuter’s portable DVR In 2012, tablets and smartphonesAbout this survey A total of 12% of Australian consumers we surveyed have watched TV shows on online devices such as smartphones, tablets can be thought of as portable and portable games consoles. 9% of Trailing Millennials surveyed playback devices with commuters and 5% of Leading Millennials have watched their favourite TV catching up on their favourite TV show on their smartphone compared with only 1% of Matures having used this device to watch TV. Australian consumer shows ‘on the go’ behaviour is consistent with most other countries, except India, where 16% of all respondents have used their smartphone to 60% of Australians are multi-tasking while watching TVEntertainment watch TV. It may be fair to assume that audiences have always multi-tasked while watching TV, such as by reading, cooking or eating. What Only 4% of Australian consumers (based on the survey group) is true now, based on our survey, is that most of the top multi-Media devices have watched TV on their tablet. Comparing the different age tasking behaviours are occurring on another electronic device. groups, Xers have watched TV on tablets most (6% of Xers compared with only 4% overall). Australia is ahead of most other This presents a challenge and an opportunity to programmers countries surveyed, with only India having a higher percentage of and advertisers. How do they retain the attention of viewers in aInternet consumers watching their TV shows on tablets. Given the relative world of potentially endless distraction so that programming and immaturity of the tablet market, we might expect this rate to advertising continues to be compelling? What can be done to increase rapidly over the coming years to at least the same levels provide a greater ‘meshing’ of programming and advertisementsAdvertising as equivalent smartphone usage. across devices to drive multi-tasking around the core content being broadcast? In 2012, tablets and smartphones can be thought of as portableNewspapers & playback devices with commuters catching up on their favourite In some cases, programmers are using ‘traditional’ forms ofmagazines TV shows on their way to work or otherwise ‘on the go’. With all content interactivity such as audience voting (which only 4% of this content being taken out of the living room onto the road of respondents are using) in concert with social or viewer- (or across the water), content creators and distributors will have community offerings (e.g. tweets, posts and groups), micro-sitesReferences to think smarter about catering to multiple devices to attract and with exclusive content and integrated game experiences based on retain market share. fandom.Relevant Deloitte thought leadership 12
  15. 15. Foreword Figure 6. TV watching multi-tasking behaviours The challenge for organisations is to engage consumers further Which are things you typically do while watching your TV? by creating interactive opportunities, either on the TV or on other devices, linked to their content. An example of this in Australia is theAbout this survey ABC program ‘Q&A’ which enables viewers to engage in the content Nothing else – just watching TV 40% pre-, during- and post-program via their website, Facebook and Twitter. Email – read, write, send or receive 29% Improved, integrated content offerings that encourage ‘in-program Go online – surf websites, multi-tasking’ will extend content reach from the TV to ‘small screen’ 28% general Internet use devices and help to defend advertising revenues. A good example ofEntertainment an integrated content offering is Channel 7’s Fango app. App users Spending time on a social networking site 20% can, for example, ‘check in’ to a show, chat with fellow fans and vote on action in real-time will polls.Media devices Reading a print magazine, newspaper or book 18% Using a social networking site to communicate 15% ‘real-time’ with friendsInternet Using downloadable applications on my smartphone 7% or mobile deviceAdvertising Participate by phone or the Internet with something 4% that is currently on my televisionNewspapers &magazinesReferencesRelevant Deloitte thought leadership 13
  16. 16. Foreword Figure 7: Examples of integrated content offerings Example: ABC Q&A The challenge for organisations is toAbout this survey further engage consumers by creating interactive opportunities The big questions • How do I leverage the popularity of live TV at home to other online devices, especially in light of increased onlineEntertainment adoption by younger generations? • How can I best integrate different platforms to improve and extend the programming and advertising offerings?Media devices Source: www.abc.net.au • Do I need to upgrade my technological capabilities in order to execute a multi-platform strategy? • What are the rights implications of a potential increase ofInternet Example: FANGO online viewership of my content? • How can I incorporate online interactivity into my current TV offering?AdvertisingNewspapers &magazinesReferences Source: au.fango.yahoo.comRelevant Deloitte thought leadership 14
  17. 17. Media devicesForewordAbout this survey We love smartphones, but not necessarily for their ‘smart’ featuresEntertainmentMedia devicesInternetAdvertisingNewspapers &magazinesReferencesRelevant Deloitte thought leadership 15
  18. 18. Media devicesForewordAbout this survey “My phone can be used to do 63% use their phone to update But only 23% use almost anything” social networking pages it to purchase products Trailing millennials “I want the ability to live my life ‘on the go’ 73% access the Internet on And 49% use their phoneEntertainment at all times” their mobile phone for online banking Leading millennialsMedia devices “I like that my phone can be both a communication 88%Internet and an information 53% use the Internet on text message provider” their phone on a weekly basis on a weekly basis XersAdvertising “Phones have useful features but I don’t need 70% use their mobile And 53% like to view photos phone’s digital camera and video on their phoneNewspapers & to be online 24/7”magazines Boomers “I really only need a phone toReferences 97% use their mobile contact my family phone to talk and 80% But only 10% have ever and friends” use it to text message downloaded an applicationRelevant Deloitte Maturesthought leadership 16
  19. 19. Foreword Our love affair with smartphones continues Figure 8. Product ownership Based on our surveyed population, Australia has an average Which of the following media or home entertainment equipment smartphone household penetration of 46%. The highest does your household own?About this survey penetration of smartphones can be seen in the Millennials demographic group, with almost 60% owning smartphones Laptop/netbook computer 73% compared to only 35% of Boomers and 18% of Matures, respectively. Flat Panel TV (LCD or plasma) 71% Digital camera or camcorder 71% Smartphone penetration in Australia is the second-highest among international participants in this survey, outstripping the US, France, Desktop computer 70%Entertainment Germany, Japan, Spain and India. Radio (traditional AM/FM radio) 60% Mobile/cellular phone (basic phone) 59%Media devices Standalone DVD player 57% Smartphone 46% Videogame/console system 43%Internet Portable music/video player 39% Non-flat panel TV 29%Advertising Digital Video Recorder 25% Standalone Blu-ray disc player 15%Newspapers & Blu-ray disc player in gaming console 14%magazines Tablet 13% Internet-enabled TV 10%ReferencesRelevant Deloitte thought leadership 17
  20. 20. Foreword Although smartphones provide a significant amount of Figure 9. Smartphone uses functionality, their usage in Australia is still dominated by voice and Of the features on your mobile/cellular phone that you do use, text messaging. please list how frequently you use them? (‘Weekly +’)About this survey We have assumed that this is partially based on historic mobile 86% 82% phone usage behaviours (i.e. those activities and uses of a phone 44% 42% 41% with which consumers are most familiar) and the availability of locally relevant apps. The survey data also suggests this limited usage may be driven by the associated costs for data usage, with 18% Talking Text Internet Viewing Digital of consumers indicating that they do not use smartphone Internet on the messaging access photos cameraEntertainment access because it is too expensive. That said, the perception that phone or video (still pictures) Internet access on a smartphone is ‘too expensive’ is markedly lower in Australia than observed in the US, Spain, Germany and India.Media devices Although similar levels of Australians and U.S. respondents access Australian consumers are starting to use the wider smartphone the Internet on their smartphone (50%), Australian consumers functionality available, for example, nearly 60% of Millennials use less email and online search than U.S. consumers on their also use their smartphone at least weekly as a device for viewing smartphone. Acquiring new apps conversely seems to be moreInternet and taking photos. Given the steady improvement in smartphone popular in Australia than in France, Germany, Japan and Spain. camera quality and increased storage capacity, it is likely that smartphones will become more popular with consumers and may Tablet sales skyrocket in AustraliaAdvertising even become the preferred digital camera device. More than 1.4 million tablets were sold in Australia during 2011, which represents a total estimated revenue of $1billion1,2. Of Australian households surveyed, 13% own at least one tablet andNewspapers & 31% of tablet owners think their tablet is the most valuable product relative to other media devices.magazinesReferencesRelevant Deloitte thought leadership 18
  21. 21. Foreword Tablet adoption is nearly equally distributed across all age groups Accordingly, a very high proportion of smartphone and tablet users in the survey. Xers have the highest percentage of ownership have used these devices as alternatives to their laptop, even whenAbout this survey (16% of respondents) followed by Leading Millennials and Trailing at home. For example, 42% of tablet owners have used their tablet Millennials with 13% and 14% of respondents, respectively. at home instead of their laptop, while more than 50% of Leading Millennials and 24% of Matures use their tablet at home as a Australia, together with the US, has the second-highest tablet laptop substitute.  penetration among participating countries, after India with 15%. In our view, the main reasons for the success of the tablet across all Figure 10. Smartphone and tablet substitution for laptops demographics and globally are the size of the screen, the quality of In the past six months, have you ever used your smartphone/Entertainment the user interface and the apps, which provide an enormous number tablet as a replacement for your laptop’s functionality? of possibilities to consumers. 51%Media devices In our Deloitte Technology, Media and Telecommunications 42% 46% Predictions report, we forecast that in 2012, 5% of all tablets will 30% be sold to individuals or households that already own a tablet, which equates to five million tablets worth between $1.5 and $2Internet billion in revenue.3 Although this represents a small percentage of Used my Used my Used my Used my total tablet sales, given that the tablet market is only three years old tablet as a tablet as a smartphone smartphone it likely marks the most rapid ‘multi-anything’ market penetration in replacement replacement as a as a for my for my replacement replacementAdvertising history¹. laptop, laptop while for my for my while at away from laptop, laptop Smartphones and tablets as substitutes home home while at while away home from homeNewspapers & While the laptop is the most commonly owned product ormagazines device across all age groups in Australia, it remains to be seen if its importance will change due to the increasing penetration of smartphones and tablets. In 2012, we are seeing a wave of new, 42% of tablet owners have usedReferences feature-packed smartphone and tablet devices enter the market. their tablet at home instead of The rate of improvement in these devices is such that users are increasingly seeing them as legitimate substitutes for more their laptopRelevant Deloitte longstanding entertainment and productivity devices, such asthought leadership laptops. 19
  22. 22. Foreword Figure 11. Devices used to make purchases A total of 60% of survey respondents own a traditional AM/FM Which of the following have you used to make a radio, which is a higher percentage than respondents owning a purchase in the last year? portable music/video player (39% of respondents) such as an iPodAbout this survey or an MP3 player. Over 70% of Boomers and Matures have a radio and the percentage of radio owners is higher amongst Leading Desktop computer 49% Millennials (56% of respondents) than Trailing Millennials (42% of respondents) and Xers (50% of respondents). Laptop/netbook computer 44% The percentage of Australian consumers owning a radio is higher Home phone 21% than in most countries surveyed other than the UK, US and Spain.Entertainment Smartphone 16% Unbounded shifting of content and online storage will Television 8% become more importantMedia devices Videogame/console system 5% Consumer responses indicate that the integration and convergence of media on multiple devices will continue to gain momentum in Tablet 5% the future. For example, 63% of all Australian consumers would like to view online content on their TV – good news for Internet-Internet None of the above 15% enabled TV manufacturers and retailers. Interestingly, 39% of the survey respondents categorised theAdvertising With the success that the tablet has achieved in the corporate ability to move music, TV shows, movies etc. to any platform or sector and assisted by the ongoing improvement in productivity device they own as extremely desirable. This was observed most applications for tablets – e.g. exemplified by the much anticipated significantly among Trailing and Leading Millennials, with over 56%Newspapers & launch of the Microsoft Office suite for iPad – we believe these levels of respondents finding this technical capability desirable.magazines and patterns of usage will likely continue and even increase. Besides a shift to small screen viewing (e.g. TV movie content Radio remains prominent in Australia on tablets), we think that the unbounded shifting of contentReferences Although music and radio shows can be consumed on multiple between devices and online storage services will become important devices, traditional AM/FM radio remains important in Australia. capabilities for TMT businesses in the near future.Relevant Deloitte thought leadership 20
  23. 23. Foreword Consistent branding and customer experience across The big questions multiple channels will be critical for Australian companies • What is my smartphone and tablet app strategy andAbout this survey With the emergence of new devices, additional forms of interaction how can I create a consistent branding experience across have been created, such as apps for smartphones and tablets, multiple channels? providing different layouts and content based on form-factor and • How can I increase my revenues or better structure costs operating systems. This creates additional challenges in creating a through the integration of multiple channels? consistent brand and customer experience across all channels and • How can I best incorporate tablets and smartphones into media devices. my daily business to increase productivity?Entertainment While the capabilities required to achieve truly consistent and • What are the security implications for the business use of engaging experiences for consumers are still developing, companies mobile devices? have an unprecedented opportunity to communicate with • How do I create the technological standards andMedia devices consumers at anytime, anywhere. capabilities to enable multi-device content access?InternetAdvertisingNewspapers &magazinesReferencesRelevant Deloitte thought leadership 21
  24. 24. InternetForewordAbout this survey The Internet is entertaining us… everywhereEntertainmentMedia devicesInternetAdvertisingNewspapers &magazinesReferencesRelevant Deloitte thought leadership 22
  25. 25. InternetForeword “I want to be ableAbout this survey to share what’s Only 28% email friends But 53% socialise on going on in my life at all times” and family almost every day networking sites almost every day Trailing millennials “I want to save 52%Entertainment time by doing 18% amount of time spent have used a laptop to make things online” online via a smartphone an online purchase Leading millennialsMedia devices “I like being able to find any 61% information 53% use social networks to use search engines that I need” communicate with friends almost every dayInternet Xers “I can use theAdvertising Internet to 55% learned of a new 21% have used a discover products I product for the first time smartphone to purchase never would have known about” online something in the past yearNewspapers & Boomersmagazines “The Internet is primarily justReferences a tool to find facts and useful 53% are using search But only 38% maintain a information” engines almost every day social network profileRelevant Deloitte Maturesthought leadership 23
  26. 26. Foreword The Internet is second only to TV as the most popular form Millennials and Xers prefer to spend time online via portable devices of entertainment media (e.g. smartphones, tablets, laptops) while stationary devices, Across all age groups in Australia, using the Internet for social or especially the desktop computer, are the preferred devices within theAbout this survey personal interests (47% of all respondents) lags only watching TV age groups of the Boomers and Matures. Overall, 7% of time spent content on any device (63% of all respondents) as respondents’ online on stationary devices is spent on TV and games consoles. preferred type of media entertainment. Trailing Millennials are the While the percentage of respondents spending their time online via exception with 61% of respondents within this demographic group a TV is similar across age groups, games consoles are, as might be identifying the Internet as their primary source of entertainment. expected, more popular with the Trailing and Leading Millennials. Internet use is going mobile, especially with younger and Comparing the daily Internet activities of Australian consumers toEntertainment middle-aged consumers global data, Australian consumers surveyed read less news, watch Using search engines is the most common daily Internet activity less TV and seek less personal interest information online than across all age groups, followed by reading local news and emailing. consumers in most other countries. Surprisingly, although ‘Australia’Media devices and ‘sport’ go hand in hand, Australian consumers are reading/ watching less sporting content online than in any other surveyed Figure 12 online activities country. How often would you say you are doing the following onlineInternet activities? (% everyday/almost everyday (5–7 days/week))   Activities Australia US France Germany India Japan SpainAdvertising Using search engines 59% 63% 68% 58% 72% 65% 79% Reading about local news, weather or current events 39% 46% 44% 39% 51% 29% 55% Reading national/world news, weather or current events 37% 43% 46% 39% 48% 42% 56%Newspapers & E-mailing with friends or family 38% 40% 45% 31% 60% 32% 53% Socialising (via social networking, chat rooms, message boards) 28% 32% 10% 15% 50% 7% 37%magazines Watching TV programs 21% 28% 20% 25% 46% 25% 25% Instant messaging with friends or family 24% 24% 32% 16% 58% 4% 46% Seeking personal interest information 18% 22% 28% 19% 39% 24% 40%References Watching/listening to content created by others 15% 21% 15% 14% 40% 18% 28% Reading/watching sports content 13% 19% 14% 15% 39% 16% 28% Seeking product reviews, conducting shopping research 9% 13% 14% 10% 28% 9% 16%Relevant Deloitte Online gaming 6% 9% 8% 11% 20% 8% 7%thought leadership 24
  27. 27. Foreword Figure 13 – Share of online time Online reviews and recommendations are highly influential Thinking about all the time you spend online with each of the factors in buying behaviour following types of devices, please enter the percentage of time you In total, 56% of Australian respondents across all age groups hadAbout this survey spend online with each. learned of a new product for the first time online and 43% of respondents purchased a product based on an online review or 52% recommendation. Although seeking product information online 3% 48% 3% is equally popular across all age groups, Millennials and Xers are 4% 10% more influenced by online reviews and recommendations than older generations. The global data shows this to be consistent with other participating countries (with the exception of Japan), withEntertainment 45% consumers overseas even more influenced by online reviews. 35% Survey data indicates that Trailing Millennials are three to five timesMedia devices Stationary Portable more likely than Boomers and Matures to engage in Internet-based socialising activities. Combined with the influence of information Desktop computer online, this suggests campaigns that seed or promote viral Television marketing via online social channels are likely to have a greaterInternet Games console/handheld response rate than traditional above-the-line campaigns for this Laptop/netbook particular demographic. Mobile device/phoneAdvertising Tablet The online retail experience is going mobile, evidenced by 41% of shoppers having checked competitors’ prices on their smartphones while in a retail store4. Consumers are more informed than everNewspapers & and traditional retailers will need to rethink how they can respondmagazines to these behaviours to support and augment the in-store retail experience.ReferencesRelevant Deloitte thought leadership 25
  28. 28. Foreword Self-publication is less popular in Australia provide more personal information online in exchange for targeted than in other countries advertising. However, 18% of Australians surveyed are active in Although Australian consumers are highly influenced by online personally contributing to another person’s blog and 11% maintainAbout this survey reviews, only 15% of respondents have experience in writing their own blog. product reviews for review or e-commerce sites. The survey results also show that self-publication is a behaviour This is low in comparison to international behaviours observed observed across all age groups, with 15% of Boomers and 12% in this survey. On average 25% of consumers surveyed in other of Matures currently contributing to a blog; meanwhile 5% of countries write product reviews, with as many as 28% in Spain (the Boomers and 7% of Matures have their own blog. second highest) and 40% in India (the highest).Entertainment Self-publication in terms of contributing to and maintaining blogs is Survey respondents indicate concern with sharing personal even more popular in other countries such as the US, India, Japan information online, as only 25% of all respondents are willing to and Spain.Media devices Figure 14 – User-generated content behaviours Please indicate your experience with each of the followingInternet Total Trailing Leading illennials millennials Xers Boomers Matures Maintaining my social networking site (Facebook etc) 60% 76% 71% 64% 50% 38% Communicating in real time with others via my social networking site 50% 68% 60% 53% 40% 29%Advertising Posting comments to online communities, message boards or online forums 32% 39% 39% 37% 25% 23% Adding comments or postings to news articles or special interest stories I read on the Internet 27% 33% 32% 28% 22% 17%Newspapers & Uploading my own photos to a photo sharing site. 21% 31% 31% 21% 13% 11%magazines Contributing to a blog (not my own) by adding comments or postings 18% 28% 21% 16% 15% 12% Writing product reviews on review sites, e-commerce sites, blogs etc. 15% 15% 18% 18% 11% 7% Communicating with others via micro-blogging (Twitter, Yammer etc.) 14% 28% 19% 16% 8% 3%References Maintaining my own blog (Web log) for others to read about myself and my opinions 11% 22% 17% 11% 5% 4% Uploading my own videos to a video sharing site 11% 23% 19% 11% 4% 3% Uploading my own game content (e.g.levels, films, music, other) to a console or a 11% 22% 16% 11% 5% 3%Relevant Deloitte PC games environmentthought leadership 26
  29. 29. Foreword Australian consumers are conditioned to use the Internet within a There is demand for faster Internet speeds and greater capped bandwidth model, distinct to Internet products currently network efficiency offered by Internet Service Providers (ISPs) in other countries (e.g.About this survey Currently, 21% of respondents watch TV content on the Internet in Europe, Asia and the Americas). With the National Broadband daily. Although the percentage of Young Millennials watching TV Network (NBN) and the availability of 4G rolling out over the online is the highest, 14% of Boomers and 17% of Matures are coming years, Australian ISPs product offerings and consumers’ also watching TV programs online. usage are likely to change in the future. In comparison, the percentage of Australians watching TV online is the lowest of participating countries other than France. One The big questionsEntertainment reason for low Australian adoption is existing Internet speed. • How can we more effectively measure the outcomes Over half of survey respondents would view more videos from the of online campaigns, especially those delivered in a Internet if their downloads finished more quickly and they would social media context?Media devices be willing to pay extra to have the fastest available connection. • How can I integrate online into my business to provide 21% of respondents watch TV content customers with a richer shopping experience? • What implications does a more informed shopper haveInternet on the Internet daily on my pricing strategies? • Have we fully considered how best to take advantage of the NBN and availability of 4G for our organisation?AdvertisingNewspapers &magazinesReferencesRelevant Deloitte thought leadership 27
  30. 30. AdvertisingForewordAbout this survey If the TV said so, it must be true!EntertainmentMedia devicesInternetAdvertisingNewspapers &magazinesReferencesRelevant Deloitte thought leadership 28
  31. 31. AdvertisingForeword “Unobtrusive targeted 63% still believe TV is 67% still enjoy reading printedAbout this survey advertising gets my among the most influential magazines despite being able to attention” advertising mediums find the same info online Trailing millennials “Printed ads are more Only 32% 62% pay more attention appealing than cheap are influenced by to print ads in magazines ads on social networks than online advertisingEntertainment online versions” Leading millennialsMedia devices “I like advertising that helps me to learn new things about myself 73% are highly 75% enjoy reading and my family” influenced by TV advertising printed magazinesInternet Xers “I don’t mind onlineAdvertising advertising from search 48% are influenced by engine results that help 69% are highly influenced by newspaper advertising interactive online advertising me find information”Newspapers & Boomersmagazines “I prefer printed advertising but can beReferences influenced by search 81% are highly influenced 58% find unsponsored search by newspaper advertising engine advertising influential engine results” MaturesRelevant Deloitte thought leadership 29
  32. 32. Foreword TV advertising remains the most influential on consumer Despite the influence of TV advertising, consumer behaviour such buying decisions as ad-skipping and multi-tasking is emerging as a potential catalyst As illustrated by Figure 15, TV advertising is still considered the top to reduce the influence of TV advertising over time.About this survey influencer amongst all age groups followed by newspapers and online advertising. Figure 15. Most influential advertising channels across all platforms While this is especially true for Xers and Boomers, with more When you encounter advertising in the following media, which than 72% of each group stating that TV ads have the greatest three have the greatest influence on your buying decision? influence on their buying decisions, it is also true for the youngest of respondents, with 63% of Trailing Millennials responding in theEntertainment same way. Television 68% The affinity of Australian consumers with TV advertising is broadly Newspapers 53%Media devices consistent with global trends, with the exception of Japan where Online 47% online advertising is the most influential on consumer buying decisions.This reinforces our view that TV remains a powerful force Magazines 45% in entertainment consumption and a powerful ingredient in mostInternet advertising budgets. Radio 29% Billboard or outdoor 17%AdvertisingNewspapers &magazinesReferencesRelevant Deloitte thought leadership 30
  33. 33. Foreword Figure 16. Influence of overall advertising Ad-skipping is one of the main reasons that Australians use DVRs When you encounter advertising in the following media, which and 60% of all surveyed consumers admit to multi-tasking while three have the greatest influence on your buying decision? watching TV. While Trailing Millennials are spending more timeAbout this survey on social networking sites, text messaging with friends or doing homework, Leading Millennials and Xers prefer reading/sending Germany Australia France emails and surfing online while watching TV. Japan Spain India US TV 68% 81% 66% 68% 64% 72% 69% In global comparison, multi-tasking while watching TV is even more Newspapers 53% 38% 38% 50% 63% 47% 46% common in the US, Japan and the UK, with surfing online identified as the most popular activity.Entertainment Online 47% 52% 40% 50% 53% 88% 49%   Magazines 45% 43% 50% 52% 32% 41% 44% Figure 17. Reasons why consumers use DVRs Radio 29% 25% 26% 25% 8% 6% 30% Please rate each item below to identify the best uses for yourMedia devices Billboards or outdoor 17% 15% 39% 21% 15% 9% 23% DVR? Summary of ‘Top/Very best use’ advertising In-theatre advertising 12% 12% 17% 12% 9% 6% 13% 54% DVDs/Blu-ray Discs 9% 12% 6% 5% 7% 5% 4%Internet 51% 51% Mobile/cellular/ 9% 9% 7% 9% 34% 19% 11% smartphone Videogames 6% 7% 8% 4% 7% 3% 6% The freedom to The ability to The ability to watch my shows record all my fast-forwardAdvertising Downloadable app 3% 3% 2% 2% 6% 2% 2% on my own schedule, favourite shows, through on mobile device rather than at the ensuring that I scheduled Tablet 2% 3% 1% 1% 4% 2% 2% scheduled time never miss an time commercials episodeNewspapers &magazinesReferencesRelevant Deloitte thought leadership 31

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