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Posts Tagged ‘tablets’

Most online Americans have smartphones, nearly half have tablets

Tuesday, June 11th, 2013

tablet computersTablet ownership as of May 2013 is closing in on a majority of Americans who are online, 8 to 64, across the United States, with 44% of the population owning a tablet in their household – up from 30% in 2012 which is a 47% growth rate in one year.  Already a majority of online Americans (54%) ages 18 to 34 own a tablet.

Smartphone ownership has now broken the majority barrier and reached 61% of online Americans as of May 2013.  Over 79% of all online Americans 18 to 34 now own a smartphone.

The rapid growth of tablet use suggests that many of us want bigger screens than most smartphones have for many of our mobile device activities. We wouldn’t be surprised to see hybrid devices with screens 5 inches to 7 inches becoming increasingly popular.

America is now a mobile connected country

Mike Vorhaus, President of Magid Advisors, a unit of Frank N. Magid Associates, Inc. says, “America is not just a connected country now, but a mobile-connected country.”

Magid has just concluded their 2013 Magid Media Futures study including a section dedicated to tablets and smartphones.  The study covers a nationally representative population of 2400 respondents who are 8 to 64 years old and have access to the Internet.

Over half (53%) of all tablet owners in the U.S. have Apple’s full-sized iPad, steady since last year. When you also include the ownership of iPad minis, 59% of tablet owners have any iPad.

Amazon’s Kindle Fire has risen to 31% of tablet owners vs. 28% in 2012. Personally, here at the TechJournal, we love our Kindle Fire, but it does have distinct lacks compared to both the Google Nexus 7 (with a new model allegedly coming in July) and the Apple iPad Mini. It lacks a microphone and dictation software – which we believe is the future of mobile device interfaces. So we’re considering the upcoming new Nexus model as our next tablet purchase.

The Samsung tablets now account for 19% of tablet owners vs. 13% in 2012 – the highest growth rate among tablets this last year.  A third (32%) of tablet owners have multiple brands of tablet devices in their household. We were not crazy about the 10-inch Samsung model we tested, but they have made advances.

Android now a majority in the US

Android logoAndroid smartphones now account for a majority of smartphone owners in the U.S. at 53% vs. iPhones at 41%.  Samsung captures the largest group of Android owners at 50% (26% of all smartphones).

Just under 1 in 10 (8%) of smartphone owners own multiple brands of smartphone devices.  See charts attached for owner adoption and market share data.

App spending was up huge in both the tablet and smartphone markets over the last 12 months.

Tablet app spending growth

Tablet spending on apps grew 42% year-to-year, while smartphone spending on apps grew 44% year-to-year.  Tablet spending on apps in the last 12 months was $2.3 billion among American tablet owners. For smartphone owners the app spend in the last 12 months was $1.7 billion.

“The smartphone has become a mini-TV for many consumers,” Vorhaus said, with 38% of smartphone owners regularly watching video on their smartphones and almost 40% of those consumers are watching full-length movies and TV shows on their smartphones (16% of all smartphone owners).

Tablet users are also big fans of watching video on their tablets with 63% of tablet owners saying they regularly watch video on their tablets.  Much of this tablet viewing is full-length movies and TV shows with 69% of all tablet video viewers regularly watching long-form video, which is 42% of all tablet owners.

In the year ahead Magid anticipates major growth in smartphone and tablet penetration in the U.S.  By this time next year Magid estimates that 67% of online Americans, ages 8 to 64, will have a smartphone and 54% of online Americans will have a tablet.  That represents a 10% YOY predicted growth rate for smartphones in the U.S. and 20% growth for tablets.

Tablet users more likely to shop online

Thursday, May 30th, 2013

tabletsTablet computer users are quickly becoming a key target of digital marketers, and for good reason.

Tablet users are more likely to shop online and browse news sites than smartphone users. The findings were based on mobile Internet traffic data retrieved from operators in Western Europe and Asia during March of 2013.

So says Flash Networks, a provider of mobile Internet optimization and monetization software. But we’ve seen a host of similar reports suggesting Tablet users are much more receptive to advertising and marketing messages than smartphone users.

Based on Harmony Analytics, Flash Networks discovered that people who browse on tablets are twice as likely to go to shopping sites, and three times more likely to browse news sites than people who browse on smartphones.

Conversely, those who browse on smartphones are more than twice as likely as tablet users to engage in social networking activity, such as Facebook and LinkedIn.

Tablet consumers behave like PC users

mobilephonesThis research suggests that although tablets are also a mobile device, consumers tend to behave more like PC users than smartphone users when they browse and engage with shopping and news sites. Yet, when it comes to checking in and updating social networks, subscribers are more likely to do so on the move, using a smaller device.

Flash Networks collected this data using Harmony Analytics which provides the ability to drill down and analyze traffic based on devices, domain, bearer (e.g. 3G, 4G), data plan (e.g. prepaid, postpaid), application, or any combination of these factors. This analysis is helpful for identifying browsing behavior for advertisers to monetize the mobile Internet.

“We are continuously evolving our analytics to help operators have a greater understanding of application level trends and subscriber behavior,” said Merav Bahat , Vice President of Marketing and Business Development at Flash Networks.

“Mobile operators are currently in a position to share valuable information about subscriber preferences that can unlock the key to realizing the potential of mobile advertising.”

Tablets gaining foothold in education, trend to continue

Thursday, May 30th, 2013

tablet computersWhile personal computers are facing weak demand and reduced budgets in the U.S. education sector, tablets are experiencing exceptionally strong interest among education stakeholders, from school managers, teachers, and governments, to parents and students.

New International Data Corporation (IDC) research shows that shipments of client devices (notebooks, desktops and tablets) to the U.S. education sector grew 15.3% year over year in 2012 with volume nearing 8.5 million units. IDC estimates the value of these shipments at $5 billion.

Much of this growth can be attributed to tablet shipments, which grew 103% year over year in 2012. Strong demand for these devices increased the share of tablets in the education client device market from 19.4% in 2011 to more than 35% in 2012, and that momentum will continue as the 2013 back-to-school season approaches.

Here at the TechJournal, we recall that it was front page news when Duke University in Durham, the heart of the Research Triangle, gave iPods to all incoming students. Now they’re likely to show up with messenger bag full of their own digital devices.

IDC says the impetus to go digital in the education sector can be found among virtually all U.S. education institutions as well as around the world. Government mandates from all levels to digitize education, the relatively low cost of tablets, and a proliferation of funding sources are providing an enormous push to tablet adoption, effectively bringing the concept of one device per student closer to reality.

Only the beginning

“While tablet sales to the education sector doubled from 2011 to 2012, we are only seeing the beginning of a much greater push that is likely to last for years. As a result, we remain highly optimistic about sustained tablet growth in education, particularly as prices decline due to greater competition,” said David Daoud, Research Director, Personal Computers at IDC.

Leading tablet vendors are succeeding not just because of user interest in the devices, but also because they are beginning to work in partnership with school systems to execute strategies that encompass educational content as well as the content delivery platforms. In this context, IDC expects to see a new set of stakeholders emerge as new ideas and partnerships enable them to offer more than just hardware.

“Tablet vendors that expect to compete in the education market need to be thinking beyond just hardware speeds and feeds,” said Tom Mainelli, Research Director, Tablets at IDC. “We expect K-12 in particular to be at the center of new innovations where partnerships between hardware makers, content owners, solution providers and others will lead to many new educational opportunities.”

We have to wonder if marketers are prepared to take advantage of this proliferation of tablet use in educational settings. Special deals aimed at students and/or educators might give brands an opportunity to capture influential and life-long customers, although they’ll need to use good sense or face critical backlash, one suspects.

The IDC report, Tablets Changing the Education Sector in the United States, Major Momentum Underway (Doc #241239), reviews recent findings of ongoing IDC research focused on the education sector and its consumption and use of client computing and access devices.

Social media lags as ecommerce traffic source

Wednesday, May 22nd, 2013

social media logosCompanies haven’t cracked the code for leveraging social media to drive ecommerce.

Social media is not sending much traffic to ecommerce sites despite significant brand investments, according to - Monetate, a customer experience engine. Its Ecommerce Quarterly report (Q1 2013) also found that while tablets and smartphones are grabbing more device share of ecommerce traffic, only a handful of companies optimize for those devices.

Among the report’s key insights:

  • Social media is lagging as direct traffic source to ecommerce websites and for online purchases, despite brand investment. Social media represented just 1.55 percent of all ecommerce traffic, way behind search (31.43 percent) and trailing email (2.82 percent). And social media traffic numbers were down from Q1, 2012, when they were 2.36 percent. The data lead to the question: Should brands change their approach to social marketing?
  • Tablets and smartphones are grabbing more device share of ecommerce traffic. Tablets and smartphones were 21.02 percent of traffic, compared to just 2 percent two years ago. Tablets (10.58 percent) led smartphones (10.44 percent) in ecommerce traffic. Despite the rapidly increasing traffic being driven to sites through tablets and smartphones, only 14 percent of companies optimize for tablet users and only 13 percent optimize for smartphone, compared with 43 percent that personalize for desktop users, based on a recent Econsultancy survey.
  • It pays to market to U.S. military personnel. The numbers show conversion rates among military personnel in the U.S. (5.15 percent), Europe (4.30 percent) and Asia (3.57 percent) were significantly higher than the overall U.S. consumer segment (2.53 percent). And the average order value of military personnel was 23.39 percent higher than shoppers across the U.S.

“As marketers know, data can tell a story and the EQ1 2013 tells the story of a fast-growing ecommerce market where companies face growing opportunities and challenges,” said Blair Lyon , vice president, marketing, Monetate.

Digital east Ecommerce Panel

A panel at TechMedia’s Digital East conference.

“We focused this EQ on social commerce since the data shows the companies have not yet cracked the code in leveraging social media to drive ecommerce traffic. We know that social media plays an important role in influencing social purchases – to what degree brands are able to leverage social to build loyalty is the next big question.”

Here at the TechJournal, we suspect part of the problem of leveraging social media is that it’s time consuming and cannot be simply push, push, push. As many of the experts who attend TechMedia’s digital summits have said time and again, companies have to master techniques that engage their customers in a dialog and that’s a lot easier said than done.

Not only that, in many cases, the tactics a company uses to successfully leverage social media probably vary considerably from firm to firm, industry to industry, and product to product.

It’s a much more complex problem than just post and go.

4G LTE, shared options to lure tablet owners into data plans

Wednesday, May 8th, 2013

Strategy AnalyticsEven though many tablet users rely on WiFi as their main Internet connection, 4G LTE adn shared data plans will boost growth in broadband tablet data subscriptions, says Strategy Analytics.

Despite continued strong growth of smartphones and the prevalence of WiFi only tablets, mobile broadband subscriptions on connected tablets will expand rapidly in the next five years. Strategy Analytics forecasts global mobile broadband subscriptions on tablets will grow 8x from 2012 to 2017—as more than 165 million new tablets activate mobile data services.

Marketers, take note: this is just more evidence that tablets will be a digital device of choice for many consumers going forward. Many experts we talk with suggest optimizing your marketing messages for tablet screens as well as other formats.

The Strategy Analytics Wireless Operator Strategies (WOS) service report, “Tablets at Mobile Operators: Forecasts of Tablet Subscriptions, Data Traffic, Service Revenue 2010-2017,” projects that in 2017 global mobile tablet subscriptions will contribute nearlyUS$20 billion to operator service revenues and generate almost 3 and a half million Terabytes of mobile data traffic.

With the new iPad setting the technology benchmark, 4G LTE quickly becomes the access technology of choice and will account for more than 80 percent of all mobile broadband tablet subscriptions by the end of 2017.

The most important near-term driver for tablet subscriptions is operator tariffs that aim to stimulate more tablet connections.

In particular, service plans allowing multiple devices to share a pooled data allocation on a single data plan, such as those offered by AT&T, Verizon Wireless, Turkcell and later this year the Vodafone Red plans, are driving subscriptions directly on tablets, as are lower cost SIM-only prepaid tariffs for tablets.

Other approaches to drive connections include bundling connectivity options out-of-the-box for tablets, such as the 4G Connect “comes-with-data” model launched by T-Mobile USA and HP initially on notebooks or the just announced Dell NetReady solution offering integrated 3G mobile connectivity from Telefonica for notebooks and tablets in a pan-European, pay-as-you-go model targeting enterprises.

Mobile banking apps may keep customers loyal

Friday, May 3rd, 2013

tabletsBanking convenience dominates all options amongst reasons to stay with banks, according to a new study conducted online by Harris Interactive on behalf of Yodlee Interactive.

With the convenience of online and mobile banking, more customers are utilizing these services, while banks are responding by reducing the number of physical branches. This survey was conducted among 2,219 Americans (ages 18+) between February 28 and March 4, 2013.

The study found that 63 percent of U.S. adults who have a bank account indicate they stay with their current bank because of convenience.

Customer service (48 percent) and the lack of/low account and ATM fees (42 percent) follow convenience as the other primary reasons. Interestingly enough, 1 in 3 of those who use mobile banking see their mobile banking experience as a reason why they stay with their banks (33 percent).

Mobile banking may keep customers loyal

Seventy-one percent of mobile bankers are either satisfied or very satisfied with their bank’s mobile and web offerings. This has led the report’s sponsor, Yodlee Interactive, to conclude that mobile banking may, in fact, keep loyalty high among bank customers as physical branches decline.

“Customer loyalty is a primary concern for banks,” says Yodlee Interactive General Manager, Joseph Polverari. “Our findings suggest a corollary between one of banks’ biggest priorities – customer loyalty – and consumers’ usage patterns for mobile banking.

With the anticipated growth of mobile banking in the next four years, banks that want to boost customer loyalty should strongly consider developing apps that increase the convenience of consumer banking.”

Overall, 31 percent of U.S. adults who have a bank account indicate that they use mobile banking (i.e., use a smartphone, tablet device, or some other mobile device to access their banking information). Close to half (49 percent) of smartphone owners who have a bank account access their banking information on their smartphones, compared to 36 percent of tablet owners who have a bank account.

Banking app development has yet to fully catch on with consumers on tablets. Most smartphone owners who have a bank account use their bank’s mobile app to access their banking information on their smartphone, while most tablet owners access their banking information on their tablet’s mobile web browser. This distinction is most evident among adults ages 18-44 (the largest demographic of mobile device users).

Tablet optimized apps needed

“Banks have focused on smartphone apps, but stretching the same app to work on a tablet seems to have backfired as consumers are opting for mobile web experiences on tablets,” continued Polverari. “We believe that tablet optimized banking apps represent a major opportunity to reach customers with a better and richer experience.”

Another interesting finding is that smartphone owners who use mobile banking indicate they deposit checks on their smartphone device more than tablet owners indicate they deposit checks on their tablet device (33 percent versus 22 percent).

Additionally, within this group of smartphone owners, those with a household income (HHI) of $75k+ are twice as likely to deposit checks to their bank account (44 percent) as those who make less than $35k (21 percent) and nearly twice as likely to do so as those with a HHI of $50-$74.9k (27 percent).

Tablets showing great promise as powerful ad channel

Wednesday, May 1st, 2013

tablet computersInsightExpress, a marketing research and data analytics firm, says its research indicates great promise for tablets as a powerful advertising channel. The InsightExpress analysis found that campaigns running on tablet devices are extremely effective at delivering their message and motivating purchase, and either match or outperform established mobile channel norms.

The findings detailed below were drawn from InsightExpress’ Tablet InsightNorm, a normative database containing results across 43 campaigns comprised of 83 ad executions that show the branding effectiveness of advertising placed on tablet devices.

Thanks in great part to InsightExpress’ involvement in a 14-month long research study conducted by VivaKi’s The Pool, an ongoing initiative to uncover advertising solutions of the future that revealed best practices and key findings for ads placed on tablet devices, InsightExpress is able to offer one of the most robust portraits of tablet advertising effectiveness in the industry.

This Tablet InsightNorms analysis, which incorporated the 74 individual custom ad executions from The Pool’s tablet lane, explored advertising performance across key brand metrics (unaided awareness, aided awareness, advertising awareness, message association, brand favorability and purchase intent). The following key findings were revealed:

1. Significant increases in all brand metrics indicate that tablet campaigns are extremely effective, especially when it comes to advertising awareness.
2. To date, tablet campaigns either match or outperform the established mobile channel advertising effectiveness norms. This pattern was also seen with early mobile campaigns outperforming online.

Tablet Campaigns Drive Strong Brand Metric Performance

As shown in Chart 1, significant increases across all brand metrics indicate that tablet campaigns are highly effective. The striking increase in advertising awareness (41 percentage points) suggests that these ads are both noticeable and memorable to viewers.

The ability of tablet campaigns to drive lower funnel metrics such as message association, brand favorability and purchase intent signifies that these ads are also quite persuasive. However, it is not surprising to see strong results like these for a new advertising channel.

Tablet vs. Mobile Performance

Apple iPad3s

Apple iPads

InsightExpress is able to benchmark these tablet norms against the Mobile InsightNorms database, which contains over five years of aggregated mobile campaign effectiveness results. As shown in Chart 2, to date tablet campaigns either match or outperform the established mobile channel norms.

Tablets’ strong advertising awareness performance illustrates that they are currently far more successful at getting noticed than mobile ads. Aside from the “novelty factor,” larger displays and enhanced browsing experience likely enable viewers to better notice and absorb tablet creative executions.

It’s easy enough to understand why ads have a more powerful effect on the larger tablet screens. Also, consumers using tablets are not necessarily on the go and are often in a more relaxed and casual mode while using them. That can make them more receptive to a message that would just be annoying if it shows up while someone is using a mobile phone.

More effective than mobile phones

The favorability and intent data also show that tablets are also slightly more effective than mobile phones at guiding consumers down the purchase funnel. As the tablet market matures and becomes more saturated, these strong deltas are likely to stabilize on par with our mobile normative data.

While tablet campaigns are excelling in many areas, others remain on par with mobile. The tablet campaign brand awareness results do not outperform mobile campaigns yet. Thanks to a larger screen, tablet ad creative to date can offer more flexibility than just a logo but additional information in the form of images or text may compete with the brand’s logo for the consumer’s attention.

“We have a wealth of tablet data and research available at our fingertips that clearly shows the power of the device when it comes to reaching and engaging with consumers,” said Tracey Scheppach, VivaKi EVP, innovations director and founder of The Pool. “As an industry, we need to work towards harnessing the magic of the tablet and move the industry forward.”

Tablet sharing impacts brand choice, study says

Thursday, April 25th, 2013

 tablet computersAs more households continue to adopt tablets, the act of sharing these devices has substantial influence on the purchase-decision process and on future brand selection, according to the J.D. Power and Associates 2013 U.S. Tablet Satisfaction Study.

The study is important to marketers who need to consider which family members may be sharing a tablet when they craft their mobile or online campaigns.

Now in its second year, the study measures tablet owner satisfaction among those who have owned their tablet for one year or less. Satisfaction is measured across five key factors (in order of importance): performance (26%); ease of operation (22%); styling and design (19%); features (17%); and cost (16%).

KEY FINDINGS:

  • Tablet owners who also have a smartphone spend 36 percent more time browsing the Internet on their tablet than on their smartphone.
  • Twenty-seven percent of tablet owners say they are likely to buy a new tablet within the next 12 months, compared with 37 percent in 2012.
  • Ninety-four percent of highly satisfied tablet owners are likely to purchase additional consumer electronic devices from the same manufacturer.

The study finds that 51 percent of tablet owners share their device with at least one other person. While the incidence differs across brands, tablet manufacturers may benefit from promoting shared usage as a selling point, as satisfaction increases when more people use one tablet device. When a tablet is only used by one person, overall satisfaction is 824 (on a 1,000-point scale), 28 points lower than when a tablet is shared by four or more persons (852).

“It is somewhat unexpected to find that although 64 percent of tablet owners were the sole decision-maker involved in their device purchase, many of them share their tablet with someone else,” said Kirk Parsons , senior director of telecommunications services at J.D. Power and Associates.

Shared devices and hand me downs

“It is important that manufacturers understand this dynamic and try to provide an exceptional experience for all users since this may improve future business prospects, as high satisfaction through sharing a tablet device may result in owners handing down their tablet to a family member or friend, and the likelihood of repurchasing a new tablet from the same brand and running the same operating system increases.”

In fact, 41 percent of tablet owners who share their device among four or more persons indicate they “definitely will” repurchase their next tablet from their current tablet manufacturer, compared with 28 percent among those who do not share their device with any other person.

This shared usage is not limited to adults. Nearly one-half (46%) of tablet owners have children who also use their tablet.  Among owners who indicate they share their device with children, 30 percent have downloaded education apps, compared with 16 percent among those who do not share their device with children.

A fifth of tablet buyers use them for business

Tablets are also being used for business activities, with 20 percent of owners indicating they use their tablet for this purpose. Owners of tablets that originally evolved from e-readers are not as likely to use their device to engage in business activity.

Here at the TechJournal, we’re not so sure about that. If you’re involved with social media and curating news, even a Kindle Fire can be useful, although we’re thinking about getting a Google Nexus when the new models hit the market (reportedly in July or thereabouts).

While tablet owners are beginning to engage in business activities with their device, just 31 percent of employers contribute to the price or reimburse their employees for the entire tablet purchase price, a 3-percentage-point decrease from 2012. This may be an indication that some companies may be promoting a “bring your own device” (BYOD) strategy.

For the second consecutive study, Apple ranks highest among manufacturers of tablets in overall owner satisfaction. Apple achieves a score of 836 and performs well in four factors: performance; ease of operation; styling and design; and features. Amazon (829) closely follows Apple in the rankings and performs particularly well in the cost factor.

The 2013 U.S. Tablet Satisfaction Study—Volume 1 findings are based on experiences evaluated by 1,857 tablet owners. The study was fielded in February 2013.

Overall TabletIndex Rankings J.D. Power Circle Ratings
(Based on a 1,000-point scale) For Consumers
Apple 836 5
Amazon 829 3
Study Average 828 3
Samsung 822 3
Asus 818 3
Acer 784 2

 

Power Circle Ratings Legend:
5 – Among the best
4 – Better than most
3 – About average
2 – The rest

Twitter users rapidly migrating to mobile devices

Friday, April 12th, 2013
Twitter bird

Just call me Larry.

Twitter users are migrating rapidly away from PCs towards mobile phones and tablets as their preferred devices, according to the latest analysis from Strategy Analytics’ ConsumerMetrix survey data.

The report, “Social Network Profile: Who Uses Twitter?”, surveyed more than 6500 people in the US and Europe.

Between March 2012 and October 2012, the proportion of people who used a desktop or notebook computer for tweeting fell from 77 percent to 64 percent.

mobile devicesIn the same period the proportion who used a mobile phone for tweeting rose from 53 percent to 64 percent, and those using a tablet rose from 9 percent to 18 percent.

Overall the proportion of Twitter users using a mobile device (either tablet or phone) rose from 56 percent to 71 percent.

Immediacy is key

“The immediacy of Twitter communications requires devices which are close to hand at every waking moment,” notes David Mercer , VP, Digital Consumer Practice.

“By definition this suggests mobile phones and tablets should be preferred devices for Tweeting and the survey evidence points clearly in this direction.”

The report also found that usage of Twitter is highest in the UK, where 21 percent of respondents are frequent users (i. e. they use the service at least once a week).

Key demographics of Twitter users

The UK is followed by the US (18 percent), Italy (14 percent), France (9 percent) and Germany(8 percent). In spite of Twitter’s high profile, the report notes that 78 percent of those surveyed had not accessed Twitter at all during the past month.

The survey also identified some of the key demographic characteristics of Twitter users.

It is most popular with more affluent people as well as younger people and students. 26 percent of full-time students are frequent users, compared to 17 percent of people who are employed full-time.

Only 12 percent of people in lower income households (below $35,000) are frequent Twitter users, compared to 22 percent of people living in households earning more than $75,000.

Consumers multitask on second screens while watching TV

Monday, April 8th, 2013

 

mobile devicesConsumers are increasingly taking control of their entertainment experience, multitasking while watching television, integrating second screen devices into their viewing experience, and viewing more Internet-based content, according to a new survey released today by Accenture (NYSE: ACN).

 

The third annual multi-nation ”Video Over Internet Consumer Survey,” found that viewers are multitasking with their laptops, phones, tablets and even books and newspapers, in growing numbers while watching TV. Overall, 90 percent of respondents indicated they watch some video content over the Internet.

 

“Consumers can’t just watch TV anymore,” said Francesco Venturini, broadcast lead for Accenture’s Media & Entertainment industry group.

“The rise in multitasking while watching TV suggests that scheduled programming, also known as Linear TV, may be losing its appeal for sophisticated users, presenting both challenges and opportunities for broadcasters and content providers.”

 

Television Viewers Multitasking in Greater Numbers

 

The survey revealed that multitasking has grown substantially in the past year across all devices. In fact, more than three-quarters (77 percent) of all respondents reported regularly using their computer/laptop while watching TV, up 16 percentage points from last year.

While numbers rose across the board on all devices, the use of tablets rose the most significantly – to 44 percent from 11 percent — despite their lower ownership rates compared to PCs, TVs and phones. The frequency with which consumers watch video content on tablets also has increased significantly.

 

Although multitasking activities are mostly unrelated to the content on TV, the survey indicates that the use of tablets correlates more closely with what consumers are watching than the use of laptops and smartphones.

 

Tablets may become a key companion

The survey also indicates that the tablet is showing early signs of becoming a complementary companion device for multi-tasking consumers with 14 percent using tablets for searching content and social media activities related to the TV program they are watching.

Only 17 percent of those surveyed use a tablet for activities unrelated to the content being viewed on TV.

 

“As the tablet becomes a key companion to today’s viewers, monetizing this second screen experience must be explored,” said Venturini. “This is an example of over-the-top applications and convergence presenting the industry with new challenges.

 

Sophisticated Consumer Habits

 

tablet computersThe growing sophistication of consumers is also reflected in the high percentage of respondents who watch video content over the Internet (more than 90 percent); the greater frequency with which they view movies, TV programs and Video on Demand over the Internet on a device; and the correlation between the type of content they are watching and the device they use to watch it.

 

The number of respondents who watch video content over the Internet at least once a week on a PC/laptop rose to 65 percent in 2013 from 59 percent last year, according to the survey. During that same period, the number of respondents watching video content on a mobile phone or smartphone rose to 31 percent from 24 percent and the number watching video content on a tablet increased to 22 percent from 14 percent.

 

Consumers have evolved in their use of different devices to match the content they are viewing. The data shows that more people are watching full-length movies and TV series on their PCs/laptops this year than last (47 percent compared to 41 percent); tablet viewing also grew to 33 percent from 27 percent. And, more consumers are viewing short video clips on their smartphones (49 percent compared to 44 percent in 2012), according to the survey.

 

Overall, the survey found greater consumer sophistication in the way in which they use their devices to match video content to their PCs, phones, tablets and TVs. In response, and in alignment with key digital trends identified in the Accenture Technology Vision, broadcasters and content providers should look to create “digital relationships” with consumers to improve interactions, develop better insights into individual consumer preferences, and deliver a more customized consumer experience.

 

Evidence of Confusion

 

Samsung Smart TV

A Samsung Smart TV.

TVs connected directly to the Internet remain the ideal method for accessing online video on a TV. However, consumers’ preference for using connected TV for online videos has slipped from 36 percent in 2012 to 31 percent this year. And, the percentage of consumers who are not sure or don’t have a preferred method for accessing online video on TV has risen from 23 to 28 percent.

 

The data suggests that consumers remain confused about the available options for accessing online video. While only 16 percent indicated a preference for an online connection through a set-top box, nearly a third (30 percent) reported watching daily online content this way.

 

“We would have expected consumers to have a better understanding of their options by now considering the sizeable marketing push by the television electronics industry to promote connected TVs,” said Venturini. “A big gap still remains between the availability of video services, content discovery programs and consumers’ ability to access these capabilities.”

 

Broadcasters Striking Back

 

NetflixThe survey indicates that local and national providers are making progress in their battle with global content providers, such as Netflix and YouTube, to deliver video services over the Internet. The number of consumers using local online video service providers and broadcasters rose from 37 percent in 2012 to 40 percent in 2013, while global providers dropped by a similar amount.

 

Moreover, the survey reveals growing trust for broadcasters among consumers. Asked who they would most trust to offer a video over the Internet service on their TV screen, more than half (53 percent) of consumers surveyed said they would trust their traditional TV broadcaster – up from 32 percent in 2012.

 

“Broadcasters have been investing heavily over the past 12 months to earn consumer trust in the online world and provide new services across multiple devices. They have accelerated the delivery of their own content online and fundamentally altered their strategies to fit the rapidly changing marketplace, and in some cases introduced sophisticated hybrid TV offerings. Consumer trust for broadcasters is an indication that these investments are starting to pay off,” noted Venturini.

 

App-happy users: consumers spend more time on mobile than PCs

Tuesday, March 26th, 2013

mobile devicesMobile apps now represent 84 percent of traffic, up from 45 percent two years ago, according to  March MobileSTAT from Jumptap.

Two factors contribute to this rise: consumer preference for speed and browse-ability of apps, and the explosion of apps available. The time consumers spend with apps each day has already surpassed the time they spend with PCs online.

As a result, advertisers are shifting budgets to play catch up to consumers who have already dramatically shifted their content consumption to mobile.

“Consumer mobile media consumption has increased across the board, and with the rise of tablet ownership, we’ll see time spent continue to grow,” said Matt Duffy, VP of Marketing at Jumptap. “The next step for advertisers is to ensure that they are delivering a holistic message, regardless of medium, and targeting audiences with relevant messaging from screen to screen.”

Tablet Market Share via Jumptap MobileSTAT (Graphic: Business Wire)

March MobileSTAT Findings:

  • Galaxy Tab Shines; Kindle Fire Loses Glow: Data from the Jumptap network show that iPad still sits atop the tablet market with 57 percent share. While Apple won’t lose its top position anytime soon, Jumptap predicts that Samsung – with 16 percent share – will narrow the gap this year, riding the success of its Galaxy line.
  • Amazon Kindle Fire, which has lost some of its share since it burst onto the scene, will continue to struggle against the iPad mini and other mini-tablet competitors.
  • Advertisers looking to reach consumers as they multi-screen during the NCAA tourney and other events should include Samsung and Amazon tablets in the mix, which represent one-third of the U.S. tablet audience.
  • College Basketball Fans MAD for iPod Touch: Although iPhone is the number one smartphone among U.S. mobile customers, the top devices of choice for March Madness fans are the iPod Touch (12 percent of mobile traffic) and Samsung Galaxy 3 (9 percent of mobile traffic). Leveraging data from third-party partners in its Audience+ Insights Platform, Jumptap finds that March Madness fans skew slightly younger and less affluent than the overall mobile population – characteristics that are consistent with the demographics of iPod Touch users. Advertisers looking to reach March Madness spectators should include the iPod Touch and Samsung Galaxy S 3 in their media mix this season.
  • march-madnessMarch Madness Campaign Slam Dunk for National Food Chain: In 2012, a national restaurant chain tasked Jumptap to help it engage with college students and drive foot traffic to key store locations during the NCAA tournament. By leveraging Jumptap’s third-party data targeting, the campaign saw spikes during key points early in the tournament, and had an overall click-through rate of 160 percent above industry benchmarks.

MobileSTAT (Simple Targeting & Audience Trends) is a monthly glance into targeting and audience trends in mobile advertising through Jumptap’s network of over 46 billion impressions, 171 million U.S. users and 51,000 apps and websites. MobileSTAT contains analysis of dozens of terabytes of log data, powered by the scalable, efficient Jumptap technology. To download the full Jumptap MobileSTAT, click here.

App vs. Mobile Web Traffic Trends via Jumptap MobileSTAT (Graphic: Business Wire)

App makers: take this lesson from the music industry

Friday, March 22nd, 2013

smartphonesHow can app makers charge more for their downloads?

App makers have muddied the water – they have trained consumers to expect low prices – resulting in limited profits despite lots of value, according to a new survey by Simon-Kucher & Partners, the world’s largest pricing consulting firm.

But all is not lost for apps.

“Apps today are stuck where music was a few years ago and newspapers were until recently,” argues Andre Weber, partner at Simon-Kucher. “The music industry made a bold move on the assumption that people would pay more, and it worked wonderfully.

Not pioneers

App makers are not pioneers in convincing consumers to pay for content. They need to learn from what’s worked and act accordingly.”

The survey by Simon-Kucher & Partners investigated which apps consumers want, how much consumers will pay for apps and how app makers can turn apps into cash.

Lessons from the music industry

A few years ago the music industry was nervous about what would happen to sales if single prices went beyond $0.99; today nearly all top singles sell for $1.29.

Similarly, a large majority of consumers in Simon-Kucher’s survey believe that $1.99 or more per month is an acceptable price to pay for an app – far higher than most app makers charge today.

The figure was highest for streaming video, followed by games, and magazines.

The rise of tablets: blessing for the app industry

digital devicesThe rise of tablets is good news for app makers because people are willing to pay a premium to put content on premium devices.

Kyle Poyar, senior consultant at Simon-Kucher, commented: “If you buy an expensive new TV, you’re willing to spend the extra money on HD and premium cable. We’re seeing the same thing happen with tablets and apps. The question is – why aren’t app makers capitalizing on this extra value?”

Tablet owners on average download more apps than smartphone owners, according to the survey. Tablet owners are also more likely to be paying for apps today.

Most users have paid for an app

Angry Birds

Angry Birds has both free and paid versions of its popular game.

Three-quarters of tablet owners and more than half of smartphone owners have already paid for an app despite the abundance of free and freemium apps on the market.

Games and publications were the most popular categories of apps on tablets. The average tablet owner downloaded nine games and four publications.

If publishers price their apps at parity or sell them as an upgrade to print, they will create a tremendous revenue opportunity. If they price too aggressively, though, they may end up making much less money than they do today.

Looking ahead: Is freemium the industry’s salvation?

App makers have hailed freemium pricing as a best of both worlds strategy. Half of the consumers Simon-Kucher surveyed rank price as the most important factor they weigh when choosing which apps to download; the other half choose value.

Freemium apps promise to attract the price-focused consumers while still earning money from the value-focused ones. Such apps have been popular with consumers as well: more than two-thirds say they’ve downloaded a freemium app.

Ellen Kan, consultant at Simon-Kucher, cautions app makers against overly relying on freemium to turn a profit. “Freemium isn’t the industry’s salvation,” she warns. “It takes a long time to upgrade free users to the paid product and app makers need to strike a better balance between free and paid offerings. It needs more time and management attention to get right.”

About the Simon-Kucher & Partners 2013 US Apps and Digital Content Study:

The Simon-Kucher & Partners 2013 Apps and Digital Content Study surveyed 1,000 US consumers. The survey examined consumer spending habits when downloading or purchasing apps.

You can find the full study results by clicking here.

Growing use of multiple digital devices presents opportunities

Wednesday, March 20th, 2013

mobile devicesThe American population’s voracious appetite for digitized information and entertainment continues unabated, creating a groundswell of consumers who move seamlessly between smartphones, tablets and laptops to consume digital content, often using multiple devices at the same time.

Released today, Deloitte’s seventh edition of the “State of the Media Democracy” survey reveals a 160 percent growth in the number of digital omnivores – those consumers who own a trio of  tablets, smartphones and laptops — with this group representing more than a quarter of U.S. consumers.

Deloitte’s “State of the Media Democracy” survey compares and contrasts generational preferences of over 2,100 consumers, ages 14 and older in the U.S., revealing significant technology, media and telecommunications consumption trends including attitudes and behavior to advertising and social networks, mobile implications, consumption preferences across platforms and devices, and the Internet.

“Digital technology has emphatically triumphed in its penetration of the modern consumer lifestyle,” said Gerald Belson , vice chairman, Deloitte LLP and U.S. Media & Entertainment sector leader.

“While that trendline has been well documented, the surprise is how thoroughly digital tools have become essential across all age groups and consumer applications in the past year.

This new reality creates opportunities – and an imperative – for organizations to differentiate themselves by utilizing multiple platforms to reach prospects and serve their customers.”

Portability is key
The survey reveals that tablet ownership increased 177 percent over the past year, with almost a third of tablet owners saying that it is now one of their top three most preferred consumer electronic devices. Meanwhile, smartphone ownership increased by 28 percent, while laptop penetration remained strong.

When analyzing the ways in which Americans utilize their devices, the survey found that tablet owners stream movies 70 percent more often than non-tablet owners and intend to watch movies more than any other video content in the next 12 months. The use of multiple devices occurs even inside the home, as more than 80 percent of consumers are multi-tasking while watching TV.

Renting media preferred to buying

Samsung Smart TV

A Samsung Smart TV.

Moreover, trailing millennials aged 14 to 23 have nearly doubled their frequency of using online video services in the past year, in addition to increasing their frequency of watching TV shows on smartphones by five times, and frequency of watching TV on tablets by 10 times. The survey also reveals that more U.S. consumers prefer to rent versus own their TV and movie content, and that they intend to rent versus buy by a ratio of 2:1.

“The explosion of media-capable devices has had a striking impact on consumer behavior that poses interesting challenges for the entertainment industry and longstanding business models,” said Alma Derricks, director, Deloitte Consulting LLP.

“More than half of consumers have their TVs connected to the Internet in some way, and that group watches TV content from online sources over 40 percent of the time. This behavior impacts both the entertainment and advertising industries, and highlights the continued importance of using multiple platforms and devices to build brands and engage consumers.”

More than just a gaming console
xBoxAmericans are now utilizing the multi-functionality afforded by what was traditionally a singular-purpose device.

The survey reveals that the gaming console has become the most preferred method for Americans to connect their TV to the Internet. Of those that have connected their TV to the Internet, 31 percent prefer to connect via a gaming console.

Twenty percent of consumers rank videogames as a top three media activity, including mobile and social gaming in addition to consoles. In the last year, online video-gaming subscriptions have increased by 47 percent, and millennials’ buying decisions are more influenced by advertising on videogames than any other generation.

Connected home
The survey reveals that 93 percent of Americans rank Internet access as the most valued household subscription, and 72 percent of U.S. households have a computer network or router (up 20 percentage points in the past year).

More than half of all consumers are willing to pay a premium for faster Internet connection, with tablet and smartphone owners more inclined to pay for faster connections as the intent to consume more content over the Internet continues to grow.

“Digital technology continues to transform the high-technology, media and telecom industries, and we expect the pace of change to accelerate in the next few years,” concludes Belson.

“The proliferation of new devices and customer segments opens up new doors for engaging with customers and finding opportunities for growth and innovation.”

For more information on Deloitte’s “State of the Media Democracy” survey, please visit: www.deloitte.com/us/tmttrends.

Majority of SMBs have official BYOD policies, study says

Tuesday, March 12th, 2013

mobile devices

According to iGR’s February 2013 survey of IT managers at U.S. SMBs, nearly 62 percent of employees reported an official “bring your own device” (BYOD) policy at their company.

Additionally, 73 percent of employees reported that their company unofficially permits its employees to use personal devices for work purposes (i.e., the company is aware that employees bring devices, but has not officially allowed or banned the practice).

“Rather than reaching saturation, our survey results show that the number of employees who bring their own devices has grown significantly since 2012,” said Iain Gillott, president and founder of iGR, a market research consultancy focused on the wireless and mobile industry.

“There continue to be opportunities for BYOD solutions and strategies in this market. We found that the Bring Your Own Device trend is growing for tablets, as well as smartphones.”

iGR’s new market research report, SMBs: The Ongoing BYOD Trend, provides an overview of the adoption of Bring Your Own Device policies at SMBs in the U.S. It is an update to iGR’s 2012 report on the same topic.

The new report can be purchased and downloaded directly from iGR’s website at www.iGR-inc.com.

Targeting: when users are on which devices during the day

Monday, February 25th, 2013

mobile devicesHow many digital devices are you using to access media? Do you use different ones for specific purposes during the day?

A significant majority of Americans now access media using multiple devices each day with TV, PC, tablet and smartphone devices each dominating media usage at different parts of the day, according to Collective, a leading data-driven, multi-screen platform company.

Collective’s findings are included in a new report, “The Multi-Screen Dayparting Playbook: How to Utilize Device Dayparts for Greater Reach & Impact,” which was released today.

Multi-screen users outnumber single screen users

The research, which Collective commissioned Nielsen to conduct, quantifies for the first time that multi-screen users now outnumber single screen users by 2.5 to 1.

“This fundamental change in media consumption is a major opportunity for brands to redefine their engagement with audiences,” said Joe Apprendi, CEO of Collective. “In today’s multi-screen market, advertisers must deliver coordinated creative campaigns that are personalized with the right content for each device.”

Personally, we use both a tablet and/or our laptop while watching TV or listening to the radio on a daily basis. So we fit right in.

Enabling better message targeting

“The more we can learn about how people are consuming media via their multiple devices, the better we can pinpoint our client’s messages and get the most out of our commercial content,” said Simon Bond, BBDO Worldwide, CMO.

“As consumers continue to spread their engagement across more devices, marketers must have compelling creative on each device to achieve the same reach they might have with just TV a few years ago,” said Justin Evans, executive vice president, Emerging Media, Collective, and co-author of the whitepaper.

“Brands now need a data-driven understanding of consumer behavior across device and daypart.”

Key Multi-Screen Findings

mobilephonesAmong the key findings included in “The Multi-Screen Dayparting Playbook: How to Utilize Device Dayparts for Greater Reach & Impact,” are:

  1. the largest group of U.S. multi-screen users, 80.8 million or 25% of the U.S. population, accesses media using a combination of TV, PC, tablet and smartphone devices each day;
  2. in any given daypart, at least 100 million, or 32% of consumers are accessing media using multiple screens;
  3. “second screening” or combining tablet and TV use was reported by 35 million or 11% of consumers, a behavior that peaks in Prime Time; and
  4. Even in Prime Time, where media use peaks, there are 169 million multi-screen users outnumbering single-screen users by 1.5 to 1.

Key Device Findings by Daypart

Collective found that different devices achieve peak usage at different times of the day compared to other devices:

  • Early Morning – Smartphones are preferred during the commute.
  • Daytime - PC dominates work-related search and video.
  • Prime Time – Tablets drive multi-tasking during evening TV viewing.
  • Late Fringe – TV-only use increases as the day winds down.

“Consumers are using multiple screens to customize their media engagement,” said Frederick Stallings, director of Mobile, Collective, and co-author of the report. “Device daypart creative strategies will be critical for brands moving forward.”

Smartphone, tablet growth driving mobility market

Thursday, February 21st, 2013

mobile devicesLooking at a holistic view of smartphones, tablets, and PCs, one thing is clear – smartphones and tablets are driving mobility growth.

According to the International Data Corporation (IDCWorldwide Quarterly Smart Connected Device Tracker, vendors shipped 367.7 million desktop PCs, portable PCs, tablets, and smartphones – a collective view IDC refers to as “Smart Connected Devices” – the fourth quarter of 2012 (4Q12), up 28.3% from the prior year.

As desktop PCs and portable PCs declined (-4.1% and -3.4%, respectively), the overall smart connected device space continued to surge to just over 1.2 billion shipments cumulatively in 2012.

Tablet shipments see largest growth

Tablet shipments experienced the largest year-over-year growth in 2012, up 78.4% over 2011, while smartphones grew 46.1% but accounted for 60.1% of all smart connected devices shipped throughout the year.

After finishing 2011 second to Apple in the smart connected device market, Samsung arose to the number one position in 2012 with just over 20% share across the four device categories. Samsung shipped 250.0 million PCs, tablets, and smartphones in the past year, up 119.3% from the previous year, driven largely in part by its surge in the smartphone space.

Average tablet selling price declined

While Samsung managed to ship more smartphones and portable PCs than Apple in 2012, Apple led all in tablet shipments, was eighth in portable PC shipments, and fifth overall in desktop PC shipments.

“Smartphones and tablets are growing at a pace that PCs and tablets can’t realistically keep up with because of device prices and to some extent disposability,” explained Ryan Reith, program manager, Worldwide Mobile Device Trackers at IDC.

“The average selling price (ASP) for a tablet declined 15.0% in 2012 to $461, and we expect that trend to continue in 2013. However, smartphone APSs are still lower at $408. We expect smartphones to continue to carry a shorter life cycle than PCs for the years to come based on price, use case, and overall device size.”

Rounding out the top 5 smart connected device vendors in 2012 was Lenovo at number 3 with 6.5% share. Lenovo’s strong point is still in portable PCs where it shipped just over 30 million units in 2012.

Fourth quarter saw Apple resurgence

However, smartphones are a growing space for the Chinese vendor as shipments grew from 3.7 million in 2011 to 23.7 million in 2012. In the fourth position was HP with 4.8% share, however shipments of smart connected devices were down 8.5% year over year primarily for the lack of smartphone and tablet offerings.

And in the fifth position was Dell with 3.2% share, down 12.9% from 2011 as it also struggles with a lack of presence in the smartphone and tablet markets.

“The fourth quarter market share numbers showed a fairly dramatic resurgence for Apple,” said Bob O’Donnell, program vice president, Clients and Displays.

“After falling well behind Samsung early in 2012, Apple came roaring back in final quarter of the year thanks to its latest hits – the iPhone 5 and the iPad Mini – and reduced the market share gap to less than a single percentage point. The question moving forward will be whether or not Apple can maintain its hit parade against the juggernaut of Samsung.”

Top 5 Smart Connected Device Vendors, Shipments, and Market Share, Q4 2012
(shipments in millions)
Vendor 4Q12 Unit
Shipments
4Q12 Market
Share
4Q11 Unit
Shipments
4Q11 Market
Share
Year-over-
year Change
1. Samsung 77.9   21.2 % 41.9   14.6 % 86.0 %
2. Apple 74.8 20.3 % 57.7 20.1 % 29.7 %
3. Lenovo 24.3 6.6 % 16.5 5.8 % 47.2 %
4. HP 15.1 4.1 % 15.1 5.3 % -0.2 %
5. Sony 11.1 3.0 % 9.2 3.2 % 19.6 %
Others 164.5 44.7 % 146.2 51.0 % 12.5 %
Total 367.7 100.0 % 286.7 100.0 % 28.3 %
Source: IDC Worldwide Quarterly Smart Connected Device Tracker, February 20, 2013.
Top 5 Smart Connected Device Vendors, Shipments, and Market Share, 2012
(shipments in millions)
Vendor 2012 Unit
Shipments
2012 Market
Share
2011 Unit
Shipments
2011 Market
Share
Year-over-
year Change
1. Samsung 250.0 20.8% 114.0 12.3% 119.3%
2. Apple 218.7 18.2% 151.5 16.3% 44.3%
3. Lenovo 78.3 6.5% 48.5 5.2% 61.4%
4. HP 58.2 4.8% 63.6 6.8% -8.5%
5. Dell 38.8 3.2% 44.6 4.8% -12.9%
Others 557.1 46.4% 508.1 54.6% 9.6%
Total 1201.1 100.0% 930.4 100.0% 29.1%
Source: IDC Worldwide Quarterly Smart Connected Device Tracker, February 20, 2013.
Smart Connected Device Market by Product Category, Shipments, Market Share, 2012

(shipments in millions)

Product
Category
2012 Unit
Shipments
2012 Market
Share
2011 Unit
Shipments
2011 Market
Share
Year-over-
year Change
Smartphone 722.4 60.1 % 494.5 53.1 % 46.1 %
Tablet 128.3 10.7 % 72.0 7.7 % 78.4 %
Portable PC 202.0 16.8 % 209.1 22.5 % -3.4 %
Desktop PC 148.4 12.4 % 154.8 16.6 % -4.1 %
Total 1201.1 100.0 % 930.4 100.0 % 29.1 %
Source: IDC Worldwide Quarterly Smart Connected Device Tracker, February 20, 2013.

Study debunks ten myths about online retail shopping

Thursday, February 7th, 2013

Shopping cartWhile digital technology continues to reshape the way companies and consumers interact, social media is not replacing the in-store shopping experience, according to a new report by PwC titled, Demystifying the Online Shopper: 10 Myths of Multichannel Retailing. Based on a survey of more than 11,000 shoppers globally, the study debunks the conventional wisdom about online consumer behavior and helps companies better measure their approach to multichannel retailing.

Shoppers today have access to multiple channels throughout their shopping experience, with many resources available before making their final purchase decisions. According to the report, 49 percent of survey participants said they use social media every day, but only 12 percent are using social platforms to shop.

Instead, a significant 59 percent use social media to follow, discover and give feedback on brands and retailers. PwC found that social media is not a major traffic driver to online stores, as 45 percent of consumers continue to shop in a physical store daily or weekly.

Social media, tablets not taking over anytime soon

“Retailers should have realistic expectations when it comes to channels and devices, as shopping trends may not change drastically and social media and tablets are likely not taking over any time soon according to our survey respondents,” saidSusan McPartlin , PwC’s U.S. retail & consumer sector leader.

“While many forecasts point toward devices and social media dominating in retail, companies today need to utilize their multiple channels to  engage with consumers and use social media as a marketing and communication tool to create value. Our report finds that the physical store remains the centerpiece of the purchase journey, while devices are used significantly for product research and deals.”

The report addresses 10 myths about multichannel retailing and captures some ideas that companies can consider to keep up with their customers:

  • social mediaMyth 1: Social media will soon become an indispensable retail channel
    Social media isn’t likely to become an important retail channel anytime soon and currently is a driver for more shopping across all channels, not just online stores.
  • Myth 2: Stores will become mainly showrooms in the future
    For most companies, the physical store remains the centerpiece of the purchase journey. However, companies need to determine how to best drive purchase activity across all of their channels both physical and online. There still is a place for the store to be a showroom—as a supplement for online pure players, rather than a new model for brick-and-mortar retailers.
  • Myth 3: The tablet will overtake the PC as the preferred online shopping device
    Tablets and smart phones won’t catch up any time soon as these devices are used at the end of the purchase journey, particularly in-store, while shopping.
  • Myth 4: As the world gets smaller, global consumers are becoming more similar
    A wide range of local differences in consumer behavior exists, and retailers still need to cater to local trends.
  • Myth 5: China is the future model for online retail
    China is at the forefront of some key trends, but its multichannel and online model is unique to the culture, as shopping habits are dramatically different in China.
  • Myth 6: Domestic retailers will always enjoy a ‘home field’ advantage over global retailers
    Foreign retailers are making inroads into consumers’ lists of favorite multichannel retailers. However, retailers need to keep in mind that it’s not just the local base of domestic retailers they compete with, but with global players as well.
  • Myth 7: Global online pure players will always enjoy a scale advantage over domestic online pure players
    Many domestic online pure players are holding their own as they have better access to local market knowledge.
  • Myth 8: Retailers are inherently better positioned than brands, as they are closest to the customer
    Consumers are shopping directly from manufacturers and many no longer distinguish between retailers and their favorite brands. Retailers need to utilize core strengths including warranty programs and email promotions that drive traffic in-store.
  • Myth 9: Online retail is cannibalizing sales in other channels
    Consumers are actually spending more with their favorite multichannel retailers, not just shifting some purchases to a different channel.
  • Myth 10: Low price is the main driver of customer spend at favorite retailers
    Customers value quality, innovative brands over price when shopping at their favorite multichannel retailers.

“A multichannel retail strategy can be extremely advantageous. The more minutely retailers can identify how consumers are utilizing the different channels, the more success they will have,” said Lisa Feigen Dugal , PwC’s U.S. retail & consumer sector advisory leader. “Companies need a strategy that will create value by connecting with consumers and engaging with them directly online, while providing a meaningful, seamless shopping experience across all channels.”

For more information and to download an electronic copy of Demystifying the Online Shopper: 10 Myths of Multichannel Retailing, visit http://www.pwc.com/multichannelsurvey.

 

Teachers see digital resources as critical to maximize learning

Monday, February 4th, 2013

Student laptopThree-quarters of teachers surveyed by PBS LearningMedia link educational technology to a growing list of benefits, saying technology enables them to reinforce and expand on content (74%), to motivate students to learn (74%), and to respond to a variety of learning styles (73%). Seven in 10 teachers (69%) surveyed said educational technology allows them to “do much more than ever before” for their students.

On Digital Learning Day this February 6, educators nationwide will celebrate how digital learning is positively changing education. More than two-thirds (68%) of teachers expressed a desire for more classroom technology and this number is even greater in low-income schools (75%).

“Technology is a critical part of learning and teaching in today’s classrooms,” commented Alicia Levi, PBS Education. “Teachers today need access to high-quality digital content to keep pace with schools’ investment in interactive whiteboards, tablets and other devices to maximize the educational benefits of technology in classrooms.”

When I taught news writing at the University of North Carolina’s School of Journalism, I found the digital technology options in the school’s advanced classroom extremely effective in making lessons dynamic and compelling. (TechJournal Editor, Allan Maurer).

How they’re using digital tech

Teachers are integrating digital learning into their classrooms more than ever. Nearly half (48%) of teachers surveyed reported using technology for online lesson plans, and just under half use technology to give students access to web-based educational games or activities (45%). Additionally, teachers use online video, images and articles (43%). Sixty-five percent of teachers reported that technology allows them to demonstrate something they cannot show in any other way.

We’re so image oriented, that using online video and images captures and holds attention quite effectively.

Interestingly, a growing number of educators have access to and are adopting new technologies and platforms to support instruction. Ninety percent of teachers surveyed have access to at least one PC or laptop for their classrooms, and six in 10 teachers (59%) have access to an interactive whiteboard.

Tablets, e-readers being used

Tablets and e-readers saw the biggest increase among technology platforms available for classroom instruction. More than one-third (35%) of teachers said they have access to a tablet or e-reader in their classroom, up from 20% a year ago. Among teachers with access to tablets, 71% cite the use of educational applications as the most beneficial for teaching, followed by educational websites (64%) and educational e-books/textbooks (60%).

As more educators are adopting technology for a 21st century curriculum, the accessibility of educational content on a variety of platforms is key to bringing lessons to life in classrooms.

PBS LearningMedia (www.pbslearningmeda.org) provides educators with free access to innovative classroom-ready, curriculum-targeted resources aligned to National and Common Core State Standards. Drawing from critically acclaimed PBS programs such as NOVA, FRONTLINE, AMERICAN EXPERIENCE and PBS KIDS programs like SID THE SCIENCE KID, as well as The National Archives and NASA, the service offers teachers more than 20,000 videos, images and articles to enrich classroom instruction. PBS LearningMedia is currently being used by 650,000 teachers nationwide and is accessible on multiple devices.

 

Most U.S. consumers on the Net when they watch TV

Monday, January 28th, 2013

mobile devicesNearly 60 percent of U.S. consumers still prefer to watch their favorite shows and video programming on their TVs, but they also want their smart phones and tablets by their side so they can be online and multitask, according to the KPMG International 2013 Digital Debate survey, which polled more than 1,000 consumers in the U.S. and 9,000 globally.

In the U.S., 42 percent of consumers polled say they watch TV and access the internet via a laptop or PC, while 17 percent watch TV and access the internet via a smartphone. The study also found that 22 percent watch TV and use a social networking site at the same time.

Personally, here at the TechJournal, if we’re awake, we’re online. We nearly always have one or more digital devices at hand while watching TV or listening to music, these days. We also access our Internet video services – Netflix, YouTube, and others, via an app enhanced DVD player.

Some prefer watching on a mobile device

While traditional media is still most popular with consumers for viewing video programming, the study revealed that in the U.S. 14 percent of those polled prefer to watch TV via their mobile or tablet for greater flexibility. This is largely attributed to the emerging wave of mobile-centric consumers (25-34 years old).

“The move to digital has had a dramatic impact on how we consume music, publishing and newspapers. But we are still early in the process of a transition to digital anytime-anywhere availability across all media sectors,” said Paul Wissmann , national leader of KPMG’s U.S. Media & Telecommunications practice.

“The introduction of smart TVs is an indication of how the digital transition is accelerating to coincide with the demand of today’s consumers to access anything, anywhere and at anytime. The smart TV is beginning to reveal itself as the next disruptor,” Wissmann said.

Some of the key highlights of the survey include:

In the U.S.:

  • 40 percent own or intend to own a smartphone in the next 12 months, compared to 53 percent globally.
  • 26 percent own or plan to purchase a tablet over the next 12 months, which is the same percentage globally.
  • Spending for online media increased in the past year. For every type of digital media, more respondents increased their spend than decreased it.
  • Traditional media spend still is strong in the U.S., especially for TV.

Smartphones & tablets drove a quarter of clicks in Q4

Tuesday, January 22nd, 2013

mobile devicesSmartphones and tablets drove almost a quarter of total clicks in the fourth quarter of 2012, according to The Search Agency.  But the gain in mobile clicks did not come at the expense of desktop search.

“With ongoing advancements and multiple lower priced tablet options being introduced into the market, it’s no surprise traffic on these devices continues to increase,” said Keith Wilson , vice president of agency products at The Search Agency.

“But, while our advertisers’ spend on mobile and tablets is increasing, it’s not at the expense of desktop. In fact, data shows that desktop searches remained level over the last two quarters, underscoring the trend that search is steadily growing overall.”

Tablets see record searches; surpass mobile ad spend
The introduction of a number of new tablet models and record sales growth spurred on huge growth in both tablet use and advertiser spend.

Tablet click share in Q4 more than doubled YoY and jumped 16 percent from Q3, and smartphones and tablets combined drove 23 percent of total clicks in Q4 2012, an 89 percent increase YoY. The last quarter of 2012 marked the first time in which share of spend on tablets exceeded spend on smartphones (8.5 versus 7.1 percent of total spend).

Google and Yahoo!-Bing Network continue to see growth; Google leads in mobile
Google
Search engine advertising continues to show healthy growth as impressions in Q4 2012 grew 11 percent YoY and total clicks grew 4 percent. Total clicks on Google increased 4 percent YoY and cost per click (CPC) rose 7 percent from $0.55 to $0.59.

Bing also showed a 4 percent growth in click traffic, with a 15 percent increase in average CPC YoY. Bing’s mobile impression share and click share increased, but is still substantially less than Google’s impression and click share overall.

Google continued to see more paid clicks coming from mobile devices with 25.9 percent of its total clicks coming from tablets and smartphones in Q4, compared to 12.6 percent for Bing.

Product Listings accounted for more than 14 percent of spend on Google
Product Listing Ads (PLAs) continued their strong growth in Q4 2012, accounting for 14 percent of retailers’ total spend on Google in Q4, a 236 percent increase from the previous quarter. Specifically, retailers spent more than 9 percent of their PLA budget on tablets and smartphones, an 80 percent increase from Q3.

Retail surged on mobile during the holidays, but click volume declined YoY
In the retail sector, mobile click share increased from 14.3 percent in Q4 2011 to 26.1 percent in Q4 2012. Retail volume was the driving factor for Q4 growth in comparison to Q3 2012, with a 20 percent increase in click traffic. However, YoY click volume declined 6 percent.

“The holidays brought on big numbers in mobile retail searches but we saw click volume decrease overall – possibly because of uncertainty from the presidential election and the natural disasters that affected the Northeast,” added Wilson.

 

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