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Study of the Key Drivers of Online Content Consumption
1.
2. Study of the Key Drivers of
Online Content Consumption
Kristin Kovner Bill Ziff-Levine Jon Stewart
Senior Marketing Principal & Co-Founder Research Director
Director Data & Management Nielsen
AOL Counsel, Inc.
3. Background
• This benchmark study was sponsored by AOL
Advertising to develop insights into:
– Content and what it means to consumers
– Consumer behaviors related to content
– Value drivers (e.g., brand, author, advertisers, etc.)
– Impact of advertising on the user content experience
• This report merges two sets of key findings from:
– The Consumer and Content: Benchmark Study
Conducted by Data & Management Counsel, Inc.
– Identifying Opportunity: Driving Forces Behind Content Consumption
Conducted by The Nielsen Company
4. Marketing Challenges
• AOL seeks to be the largest provider of original,
digital content
• Achieving this goal requires a rich understanding
of today’s consumer needs, behaviors and
perspectives on content
• The lack of a comprehensive set of critical
insights on how consumers seek, consume, share,
discuss, develop loyalty, etc., around content
motivated this study
5. Methods
The study utilized a four stage approach
• Stage 1 of this research consisted of 12 Consumer
focus groups that were conducted in four markets
• Stage 2 of this research consisted of an online
quantitative assessment
• Stage 3 of this research consisted of Personal
Interviews with Advertising Professionals and
Content Producers
• Stage 4 consisted of an assessment of online
behaviors over a 6 month period followed by an
online quantitative assessment
6. Content Usage
A broad, active market
Consumers weekly amount of time online
1 to 10 Hours / Week
Amount of
11 to 20 Hours / Week Time Online
For Personal
20+ Hours / Week
Highlights
• Most consumers far exceeded the criteria of “1 hour or more
per week online”
• Six in ten are online more than 10 hours per week
• Pervasiveness in the many different types of websites used
7. Content Usage
Content is 53% of time online
Ways consumers typically spend time online
Content Activity = 53
Communication Activity = 47 How They Spend Time Online?
Seeking /
getting Info Email
“Online I just do research & play.”
Entertainment “ I do a lot of shopping and spend
(video, games & music)
most of my time looking at things
Shopping Social Networking
on different websites & Facebook.”
- Consumer Quotes
Primarily Content Primarily Communications
8. Content Usage
The “How” and “What” of content
“For me everything is information based and I’m
gonna go to the specific website that I already
use and am comfortable with. ”
- Consumer Quotes
9. Content Usage
Seven in ten consumers have <20 sites in their core mix
Size of the average core media mix*
44% 25% 15% 17%
50% -
* Core Media Mix: All sites
% of total sites visited
(‘domain.com’) visited by an
individual during a typical month
25% - Source: Nielsen Online Custom
Survey, Behavioral Data
July 09 – June 10,
0% - Sample: n=1,558
# of sites on which consumer spend 80% of their time
10 or less sites 11-20 Sites 21-30 Sites More than 30 sites
Source: Nielsen, “Identifying Opportunity: Driving Forces Behind Content Consumption,” 9/10.
10. Content Usage
Chance to break into the core mix
Source: Nielsen, “Identifying Opportunity: Driving Forces Behind Content Consumption,” 9/10.
11. Content Usage
New sites are regularly incorporated into
the core mix
Source: Nielsen, “Identifying Opportunity: Driving Forces Behind Content Consumption,” 9/10.
12. Content Usage
The core mix is ever-changing
Core sites fall in and
out of favor, but are
rarely abandoned
completely
Core Mix Diluted Abandoned
Top sites (‘domain.com’) Site that was originally in the core mix, Site that was originally
where visitors spend 80% and continued to visit, but not as one in the core mix, but
of their total Internet time of core mix. eventually was not
during a typical month. visited anymore.
High opportunity for entry
High risk of falling out
Source: Nielsen Online Custom Survey, Behavioral Data July 09 – June 10, Sample n=1,558
13. Content Drivers
Content choice is significantly more complicated
on the Internet
Source: Nielsen Online Custom Survey, Behavioral Data July 09 – June 10, Sample n=1,558
14. Content Drivers
Trusted brand is most important in driving loyalty…
across categories
Consumer Hierarchy of Content Attributes
1st Tier Importance When Seeking “News” Online
Credible & Trusted Source 8.7
Recent 6.9
Relevant 6.8
2nd Tier Authentic 6.7
Quality 6.6
Known, Est. brand 5.3
3rd Tier Interesting 4.8
Isn’t Trying to Sell Me 4.0
Ease of Navigation 3.9
4th Tier Expert Recommended 3.7
Familiar / Habitual 3.4
Original 3.0
Convenient 2.9
Friend Recommended 2.3
Among 1st Search Results 2.3
Visually Appealing 1.6
15. Content Drivers
Decision drivers evolve during the process
From discovery to context to content & brand
• Accessibility • Accessibility • Brand / Author
• Discovery • Narrative • Narrative
• Personalization • Timeliness
• Timeliness
Source: Nielsen, “Identifying Opportunity: Driving Forces Behind Content Consumption,” 9/10.
16. Content Drivers
Disconnect between perceived and actual discovery
How consumers find “News” & “Entertainment” online
TOTAL : 20
Links from friends When asked to describe themselves
Email Alerts
in terms of how they seek and find
News /
Entertainment content, the majority (seven in ten)
Search Site describe themselves as
Engine “Search-Focused.”
So, there appears to be a
contradiction in terms of their
perceived use of search and how
they report they actually use it.
Portal / Homepage TOTAL : 57
17. Content Drivers
Reach revolves around access, speed and
self-guided discovery
I DON’T HAVE TO PAY TO WATCH IT 74%
ACCESSIBILITY
During discovery,
FAST PAGE LOADS 67% removing barriers
to access is highly
CONVENIENCE OF CONTENT 61% important
FIND CONTENT BY USING A SEARCH ENGINE 45%
DISCOVER CONTENT MYSELF 40%
FIND CONTENT ON SPECIFIC WEBSITES 35%
DISCOVERY
SHARED CONTENT WITHIN A SITE 22% Self-guided discovery
A FRIEND RECOMMENDS CONTENT TO ME 21% is still more prevalent
than socially guided
CONTENT EMAILED TO ME 19% discovery
FIND CONTENT BY RECEIVING TWEETS ABOUT IT 10%
Source: Nielsen Online Custom Survey + Behavioral, July 09 – June 10; Sample n=1,558
18. Content Drivers
Four in ten pay for some form of online content
Online content consumers currently pay for
Music
Downloads Consumers on Paying for Content
Online Video
Streaming
“ [Content worth paying for is] something
you can’t live without; something you need.”
E-Books
Video “ If you wanted to get information… you used
Downloads to have to pay for it like a subscription….
Online News Now there are ways you can go about getting
Sources
it without paying for it.”
Podcast
- Consumer Quotes
Do Not Pay
For Any Experts on Paying For Content
“ (Paid content has to be) original, fresh,
The qualities that make online content worth paying for: new and valuable…and interesting.”
Something I use all the time High quality - David Bell
Original – can’t find anywhere else Time-saving Chairman Emeritus
The Interpublic Group
19. Content Drivers
Not just original, but also quality to yield value
Consumers on Content Types
“ When the Reds play a ball game you can get that story from a lot of different places. There
is a fellow that writes for the Dayton Daily News and I always read his. I like his writing style.
In a case like that you want his original.”
20. Content Drivers
Brand and author are key
Influence when choosing / selecting online content
(Top 3 boxes – in 10-pt. scale)
Original Content
“ Proponents of original content
are often highly passionate about
and loyal to these sources of
original content.”
“ I don’t like to read the same
article on different news sites.
I like to get it at one source and
know that it’s accurate and original.”
Well Known Article By Topic Article By Well Well Known - Consumer Quotes
Brand Website Area Expert Known Journalist Blogger
22. Audience Insights
Tourists: Rarely trial new content, GT CJ
but when they do, they tend to stick
Guided Tourists TT U
Key Drivers
Helps me figure out where to go and what to do INCOME:
<$25,000
Allows me to view a wide variety of content in one place
Helpful in finding other content AGE:
55+
Recommends content that is useful to me
Is attached to my homepage SEARCH
SOCIAL
23. Audience Insights
Content junkies: Trial often, stick often GT CJ
and are won over by content and author
related attributes TT U
Content Junkies
Key Drivers
INCOME:
Lets me download multimedia (audio, video, etc.) $75,000+
Content is updated frequently
Tells me what I need to know quickly
GENDER:
Content that I find useful MALE
Contains articles written by author(s) that I trust
Contains articles written by author(s) that I follow SEARCH
SOCIAL
Personalizes content based on my previous visits
24. Audience Insights
Tried-and-true: Heavy social media users, GT CJ
and have static visitation patterns
compared to other groups TT U
Tried-and-True
Key Drivers
AGE:
Maps content 25-34
Special offers and deals in my local community
I don’t have to see ads in order to view the content
GENDER:
I've been using this site for a long time and don't want to change FEMALE
Discover content myself
Little or no advertising SEARCH
= SOCIAL
Find content on specific websites
25. Audience Insights
Utilitarians: Heavy trial, low stick GT CJ
explorers who tend towards quickly
accessible and pertinent content TT U
Utilitarians
Key Drivers
AGE:
Content includes news updates 25-34
Content includes weather
Little or no advertising
GENDER:
Tells me what I need to know quickly FEMALE
Weather and travel content
Enables easy sharing (Facebook, etc.) SEARCH
= SOCIAL
Contains Video/Audio clips
26. Advertising
Consumers have grown to accept advertising
Acceptability of online advertising
Very / somewhat acceptable
Ads Targeted to Highlights
Your Likes
The online ads that are most
Ads With Photos
(Like Mag.) acceptable to them are:
Sponsored Ads • Ads targeted to your likes
in Search • Ads with photos (like in a magazine)
Banner Ads • Sponsored ads in search results
Ads with Consumers are clearly more open to
Functionality
minimally disruptive ads – ones that
In Video Ads are consumable on their own terms –
versus those that cannot be easily ignored
Pop-Up Ads
Take Over Ads
27. Advertising
Consumer largely accept ads
• Ads that enhance Targeted Ads
– Relevant “ I think it’s going to move to be more intuitive with people’s
– Engaging / highly targeted habits (and) be highly mobile. The winners are going to be
– Visually appealing those who respect privacy, who are in touch on an individual
basis on what people do, what they love and like to do.
• Ads that detract And provide them ideas.”
- Jim Stengel
– Disruptive / intrusive President & CEO
Jim Stengel Co., LLC
– Cannot be ignored Content Expert
(like pop-ups, pre-roll
ads or takeovers) “ Ads can be useful depending on adaptability. Everybody has
– Sites with “too many ads” favorites - if you could type in what your favorite topics are
on a page / clutter into an advertising registered site and it’s only going to
display things that apply to the list that you created that you
can change or alter – then it will filter out what you don’t
want anymore, keep bringing in the stuff that you’re
interested in, and it will be less intrusive.”
- Consumer Quote
28. Advertising
Consumers see ads as a form of content
(When done well)
Targeted Ads
“ Consumers want advertisers to provide
Sponsored content content that adds value, provides value in
Consumers believe sponsored content is several forms and provides new and
important information. And does that in a
higher quality because of the brand
way that surprises and delights and even
association and reputation. in a way that can entertain.”
Brands convey trust when their content - Jim Stengel
President & CEO
is enhanced with relevance, quality,
Jim Stengel Co., LLC
authenticity, and recency. Content Expert
“I would think if it was brought to you by Kraft The Brand / Content Marriage
or something then you know maybe the content “ Brand marketers are very interested in the
is Probably a little bit more reliable. Why would Relationship between the advertising and
the relevance of the content. Context is
Kraft put their name on this to sponsor it if it incredibly important.”
wasn’t something that was going to be - Michael Hayes
reliable? It would hurt their image.” EVP, Managing Director
Initiative U.S. Content Expert
29. Summary
Summary implications
• Brands are important:
– Publishers need to invest in building their brands – fresh, deep,
relevant, quality, authentic content
– Establishing and reinforcing trust and credibility must be a priority
• Authors are important:
– Invest in your editors and writers – they provide context and create
the lens through which users become loyal to your site
– Respected authors are very influential in the content decision process
• Users beginning to accept advertising as content and seek a more
integrated experience:
– Advertisers need to think more creatively about how they integrate
their message into content online
– Ads must engage consumers. To do this effectively they need to be
contextually relevant, appealing, and meet consumers’ desires for
“fewer ads” on a page