How the U.S. Consumer Feels About Micropayments: 2014 survey
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With so much content given away for free these days, would U.S. consumers still be willing to pay a nominal amount for each content view (“a micropayment”) if they valued the content enough? And what amount would they be willing to pay?
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How the U.S. Consumer Feels About Micropayments: 2014 survey
- 1. HOW THE U.S. POPULACE FEELS ABOUT MICROPAYMENTS Research conducted by Hollis Thomases, 11/2014
- 2. HYPOTHESIS With so much content given away for free these days, U.S. consumers might still be likely to pay a nominal amount for each content view (“a micropayment”) if they valued it In addition to putting this hypothesis to the test, I also wanted to determine what would be the maximum amount they would be willing to pay
- 3. THE SURVEY QUESTION Consider a situation in which you find a small piece of online information valuable enough to pay for - what is the MAXIMUM regular amount you'd be likely to pay? a) $0.00 - I'd never pay for information b) $0.10 per time c) $0.25 per time d) $0.50 per time e) $1.00 per time f) $2.50 per time g) more than $2.50
- 4. THE FINDINGS Disappointingly, the overwhelming majority of U.S. consumers surveyed said they would never pay for information, even if they found it valuable: N = 1,309 respondents
- 5. AND YET, THERE’S HOPE… Younger respondents, who are already more used to micropayments (buying digital music by the song, apps, or games) have the least objection.
- 6. INCOME LEVEL HAD AN IMPACT Results for people earning $75-99K Results for people earning $100-149K Greater willingness to pay occurs above $100K
- 7. GEOGRAPHY PLAYS A FACTOR Rural consumers more likely to pay and pay more (perhaps they’re used to paying more for things when it’s harder to get them?)
- 8. AND SOME RED FLAGS At all payment levels, women are less likely to be willing to pay then men Parental status (parent vs. non-parent) had inconsistent bearing on the response
- 9. CONCLUSIONS U.S. consumers are not yet ready for a micropayment-for-content economy Content, even valuable content, has become commoditized Unless and until consumers become more willing to pay for content (or are forced to because they cannot find content they value offered for free in any place), content producers and publishers should not expect micropayments to save their businesses
- 10. HOLLIS THOMASES, DIGITAL ADVOCATE In 1998, multi-time award-winning entrepreneur Hollis Thomases founded Maryland-based Web Ad.vantage, providing strategic digital marketing and advertising solutions. In 2013, Hollis became a sole practitioner focused on marketing advocacy – ensuring clients were educated and aware of the pitfalls and missed opportunities that the digital marketplace can provide. In January 2010, Hollis authored the book, “Twitter Marketing: An Hour a Day,” by John Wiley & Sons, and has been a columnist with Inc.com, Social Media Marketing Magazine, and ClickZ. Hollis also frequently speaks at industry conferences and association events. Hollis Thomases graduated from Cornell University with a BA in Social Relations. You can find her in the Twittersphere @hollisthomases, on LinkedIn, by email or by old-fashioned phone: +011-484-679-6364. 10