This document discusses trends in online consumer behavior in Australia based on a large study of internet usage. It finds that Australians are spending more time online across more devices, with large growth in mobile and tablet usage. Consumer behavior is also evolving, with social media and user generated content playing a bigger role in consumers' purchase decisions and experiences. Marketers need to meet consumers across online and offline channels, and consider new ways of engaging consumers through gaming and social media.

1. The Evolving Online Consumer
Jonathan Sinton
TNS Australia

2. About Digital Life 2011
 The world’s largest
study of internet
attitudes & habits
 2011: bigger than ever
 60 markets
 72,000 interviews
 Representing 93% of the
internet population

3. 5 trends for 2012
1 THE EVOLUTION OF THE AUSTRALIAN CONSUMER
2 AUSTRALIANS ARE FINDING THEIR VOICE
3 CHANGING RETAIL MODELS
4 CONNECTING THE DOTS
5 HOW’S YOUR GAME?

5. Australians spending more and more time online
Time spent online each week for leisure
+9%
19.9
18.3
2010 2011

6. And the way we spend our time is changing
2010 Share of leisure time: 2011

7. Social Networking getting a greater share
2010 Share of leisure time: 2011
Social Networking
+36%

8. Australians spending more time shopping online
2010 Share of leisure time: 2011
Shopping
+16%

9. Personal email usage is in decline
2010 Share of leisure time: 2011
Email
-9%

10. And the way we consume news is changing
2010 Share of leisure time: 2011
News, Sport & Weather sites
-13%

11. The base of mobile web users is increasing rapidly
Using Mobile Web in the past 4 weeks
+85%
37
20
2010 2011

12. And our reliance on our mobiles is growing
Average Time using Mobile Web each week
+10%
4.4
4
2010 2011

13. Tablets are becoming more common
Penetration of tablets in Household
+188%
23
8
2010 2011

14. And tablets are creating new usage occasions
Time spent online per week
All Internet users 19.9
Mobile Internet Users 25.8
Tablet Users 32.7

15. Our view of the digital world
TNS Digital Life
http://2010.tnsdigitallife.com/an-intro-to-the-digital-lifestyles/

16. As behaviour changes, segments alter
26
20 19 19
10
6
2010

17. As behaviour changes, segments alter
27
25
16 16
8 8
2011

18. In essence, our daily lives are evolving
2 years ago

19. In essence, our daily lives are evolving
2011

20. The Constantly Connected Consumer
Internet Connectivity
PC users going online Mobile users going online Tablet users going online
In bed when Early Commuting Late Midday Early Late Early Late In bed During the
I wake up in morning morning afternoon afternoon evening evening before I go night
the morning to sleep

21. The 2 Speed Digital Community
Increase in usage since 2010
+10%
+ 2 Hrs 49 mins
+5%
+ 35 Mins
Functionals Influencers
Weekly hours online (2010)
Growth in weekly hours - mobile (2011)
Total growth in weekly hours (2011)

22. The 2 ends of the spectrum
PC users going online Mobile users going online Tablet users going online
In bed when
In bed when Early Commuting Late Midday Early Late Early Late evening In bed
In bed During the
I wake up in
I wake up in morning
Early morning
Late afternoon
Early afternoon
Late evening
Early before I go
before I go night
During the
the morning
the morning morning Commuting morning Midday afternoon afternoon evening to sleep
Late evening to sleep night

24. We are growing as a nation of Influencers
Changes in behaviour 2011 vs. 2010
Updating SN Commenting on Writing own
status blogs/forums blog
 8%  13%  3%
Following on
Sharing links Sharing photos
microblog
 15%  3%  8%
Checking social Commenting
Microblogging
networks in SN
 9%  10%  10%

25. The voice of the consumer is getting louder during
purchase decision
Proportion of buyers using User Generated
Content in product/service decisions
74
56 50
AUS’11 USA’11 CHINA’11

26. And consumers are using User Generated Content
throughout the cycle
Consumer
Touchpoints 66% 56% 48%
New product Product/ Purchase
Purchase awareness brand choice location
71% 70%
Brand/Retail
77%
Touchpoints
Sources used during recent purchase (combined categories: credit cards, baby
care, new cars, mobile phones, travel/holidays

27. And are increasingly talking about their experiences
afterwards
Reasons for commenting online
10% To receive customer service
Because I’m rewarded for doing so
are talking online about their products
To share cool stuff brands produce
Share answers/opinions
To criticise a brand
To praise a brand
Ask advice
Offer advice
Share opinions with communities
http://www.youtube.com/user/juicystar07

28. We’re becoming far more open to connecting with brands
Proportion of Social Networkers connected with brands
+80%
54
30
Number of brands connected to
+50%
9
6
2010 2011

29. Classic Brand Funnel
Awareness Consideration Purchase Intent Recommendation
PRE-PURCHASE POST-PURCHASE

30. Modern Brand Funnel
Awareness Consideration Purchase Intent Comment Connect
PRE-PURCHASE POST-PURCHASE

31. Modern Brand Funnel:
Create products and experiences people want to talk about
Awareness Consideration Purchase Intent Comment Connect
PRE-PURCHASE POST-PURCHASE

33. We’ve all seen the headlines

34. Egypt
Indonesia
Philippines
Nigeria
Kenya
Uganda
South Africa
Tanzania
Estonia
Finland
Russia
Mexico
Sweden
Brazil
Denmark
Norway
Belgium
India
LUXEMBURG
Portugal
Japan
Austria
Canada
France
Netherlands
Frequency of Online Shopping
Poland
Spain
Hong Kong
Malaysia
Australia is becoming an eCommerce leader
Italy
Israel
Turkey
Greece
China
USA
UK
Australia
Singapore
South Korea

35. Increasingly Fragmented Online Media Environment
Brand / Manufacturer Site, 4.5%
Online retailer, 5.6%
Offline sales, 83.2
C2C site / Auction site, 3.1%
Group buying / Daily Deals site, 1.6%
Other online site, 2.0%
Share Of Sales Across 34 categories

36. Group Buying & Daily Deal sites are gaining Momentum
Clothes & Shoes
48
Computer peripherals
22
Cleaning/household
products
Cosmetics/facial care
products
Have used Have heard of
Skin care products
Use of Sites
Mobile phones
32 28
Software
18 19 18
11
Alcoholic Beverages
TV (LCD, 3D, Plasma, LED
etc)
PC/Laptop/Tablet
Use of Sites by segment
Categories shopped

37. The Domination of eBay
Clothes & Shoes
Movies (DVDs)
Computer peripherals
49
Music (CDs)
Cosmetics/facial care products
Skin care products 21
Software
Hair care products
Mobile gadget
Camera (still & video)
Check Daily Check Weekly
Categories shopped People visiting eBay

38. 4 ways to respond
Global Pricing Embrace
Collaborate Add Value

40. Online and Offline being used equally during
path to purchase
Online 78%
Touchpoints 70% 65%
New product Product/ Purchase
Purchase awareness brand choice location
Offline 64% 68%
75%
Touchpoints
Average number of touchpoints 6.0 5.1 4.1
Sources used during recent purchase (combined categories: credit cards, baby
care, new cars, mobile phones, travel/holidays

41. Mobile is the glue to connect the dots
When use mobile web
Find out more
Find product in Listening
about product
68% store to radio advertised
58% 31% 42%
Agree
Reading
While watching While shopping
newspaper/
TV magazine in store
“ With my mobile, I feel that
I am 'always connected' to 51% 23% 55%
the Internet”

42. True online-offline integration
http://www.youtube.com/watch?v=fGaVFRzTTP4

44. Online Social Gaming: The New Media
Social Gamers:
A new generation playing mobile and
social network games
Hardcore:
Geeky Kids playing
Warcraft Console Gamers:
Playing: Xbox, PS3

45. The explosion of gaming in social networks
52
Hardcore
Online Gaming
24 27
Online Console
Gaming
5
Online Social
Network
Games
Weekly usage of social gaming
Daily Weekly

46. And its not just social network gaming – Mobile too
Mobile Apps most commonly used (Australia)
71
53 54
41 43 44
31
Video General Weather Maps and Social Music Games
/picture search i.e. navigation Networking
Google

47. Engagement with gaming is high
Attention Index
Reading a book 83%
Emailing (at home/work/school) 72%
Using the Internet (at home/work/school) 71%
Video Gaming 70%
Reading a newspaper 67%
Using the mobile internet 63%
Using mobile apps 62%
Watching TV 62%
Listening to the radio 49%
Source: 2010 TNS study into multi-tasking

48. $ ways to get into gaming
Sponsorship Promotions
Game Mechanics Custom/White Label

49. 2 speed digital
community:
Understand your
target’s needs and
behaviours

50. Ensure
everything
you do is
joined up

51. Keep a constant
eye on the future
as technology
and media
consumption are
changing rapidly

52. The Evolving Online Consumer
Jonathan Sinton
TNS Australia