Vox Populi: State of the Media Democracy Survey 2nd

Transcrição

Vox Populi:
State of the Media
Democracy Survey
2nd Edition
Australia’s media usage and preferences 2013
Contents
Foreword
1
About this survey
2
Key insights
3
Survey snapshot
4
Entertainment
7
Media devices
13
Internet
19
Advertising
23
Newspapers and magazines
29
References
34
Relevant Deloitte thought leadership
35
Contacts
36
Foreword
This, the second edition of our media usage and
preferences survey, provides a current snapshot and
unique demographic insight into how Australian
consumers are consuming different media and
entertainment, using technology and devices, using
the Internet, responding to advertising – and how
this might likely evolve in the future.
This survey is part of a global Deloitte research project
with data gathered in Australia, France, Germany, Italy,
Japan, Korea, Norway, Spain, United Kingdom and
United States. The research was undertaken at the close
of 2012 and considers:
• Australian consumer usage and preferences for
traditional and emerging media devices and platforms
• The role of social media in media and advertising
• Reactions to traditional, online and next generation
forms of advertising
• Implications for broadcasters, advertisers, content
producers, distributors, developers and device
manufacturers, in responding to consumer
behaviours and preferences.
The findings and insights are relevant to organisations
across multiple sectors and are not limited to those
within the media – the challenges of anticipating
and responding to digital consumer behaviours and
connecting with audiences and customers across
platforms and devices are common across industries.
Where possible, we have included comparisons
with last year’s survey data to show where and how
things have shifted. Likewise, we have included some
international comparisons. Additional details can be
found in the individual country reports published by
different Deloitte member firms.
It’s a cliché, but the only constant our clients are
experiencing is change. We work with them everyday
to help them anticipate and respond to the challenges
and opportunities this change presents. As such, we
hope you find the survey results interesting and more
importantly useful, in informing your own responses
to ever evolving consumer behaviours and preferences.
Damien Tampling
Clare Harding
PartnerPartner
National Leader Consulting Leader
Technology, Media Technology, Media
& Telecommunications
& Telecommunications
1
About this survey
About Deloitte’s Australia media usage and
preferences survey
Focusing on four generations and five distinct age
groups, the survey provides a point in time snapshot
of how consumers between the ages of 14 and 75 are
interacting with media, entertainment, technologies
and information and – what their preferences might be
in the future.
Identical questions were asked across all geographies
and age groups. All data is weighted back to the most
recent census data in each country.
Undertaken by an independent research organisation
during December 2012 and January 2013, the survey
employed an online methodology to obtain usage and
preference data from consumers in ten countries,
including over 2000 Australian consumers.
It should be noted, this report contains self-reported
data, and therefore a ‘human element’ is always
present in our findings.
Additional insights for this report were derived
from Deloitte Telecommunications, Media and
Technology experts who work every day with
leading Australian companies in these sectors.
Figure 1
Consumer groups surveyed
Leading Millennials
Trailing Millennials
Age: 24 - 29
Age: 14 - 23
Xers
Age: 30 - 46
Boomers
Age: 47 - 65
Matures
Age: 66+
State of the Media Democracy Survey – 2nd Edition
2
Key Insights
Convergence and multi-device
consumption is coming of age in
Australia and the implications of
this are becoming clearer
We expect to see this playing out:
• In terms of usage – what we use for what media,
when, and using a number of devices at the same
time. The use of 2nd and 3rd screens in how we
use and consume media will likely increase as
the proportion of digital omnivores (owners of
smartphone, tablet and laptop devices) increases,
creating both opportunities and challenges for
retailers, broadcasters and advertisers alike
• In the further blurring of devices – as manufacturers
respond to consumer behaviour and multi-device
consumption in the creation of hybrid categories
such as phablets (phone-tablets) and notelets
(notebook-tablets)
• In consumer expectations – as integrated, multiplatform content experiences and advertising
campaigns become the norm. As consumers get
used to personalised content and easier discovery
based on what organisations know about them,
expectations will rise. Acting now to learn more
about customers and develop loyalty through the
content, brands and experiences that they connect
with (and which connect with them) through
multiple touch points is paramount.
• In developing and executing on content strategies
– in order to remain relevant in an increasingly
converged world, organisations needs to pursue
content strategies that are platform, device and
distribution neutral. These will enable the agility
required as the sands shift and the winners in
platforms emerge over time. We expect audiences
to increasingly be a source of new digital revenues
(through innovative monetisation of customer data,
content and transactions) rather than just a measure
of reach.
• In strategies for advertisers – and in how media
organisations must sell integrated media
in a seamless way as a foundational basis for
competition. Advertisers and agencies alike
will demand more innovative, multi-faceted
3
campaigns and strategies and siloed traditional
media organisations will find it hard to respond
in a way that adequately meets customer needs
and optimises cross-media margins.
• In value realisation for content developers and rights
holders – as new entrants threaten incumbents e.g.
Google, cloud based platforms, and as traditional
windowing and platform specific strategies become
obsolete in a fully converged world.
Social media and its utility continues to evolve
in multiple ways – in multi-tasking behaviours as
consumers seek greater connection with the media
organisation, with talent and with each other.
Social in Australia is now at scale and usage, whilst
most prevalent in younger demographics, is multigenerational. The role of social channels in advertising
as a source of information and recommendations is
gaining traction and is likely to continue to evolve as
true social commerce, as the Millennials get older.
The increase in DVR penetration and usage is fostering
customer behaviours across generations, such as ad
skipping, discovery and navigation through EPGs
(Electronic Program Guides) and accessing content
on demand. These new learned behaviours will likely
better support adoption of digital media and uptake
of IPTV and OTT (Over the top) propositions, which
paradoxically may result in likely competition but also
opportunities for pay TV platforms.
Finally, as in interim strategy, organisations need to
develop digital-physical ambidexterity. Experience
from lead markets overseas suggest the shift we
have seen this year in Australia from physical to
digital will continue to accelerate. It will therefore be
critical to extract value from physical formats whilst
properly positioning to be able to compete with new
players who do not carry the legacy cost structures of
traditional media organisations to meet the needs of a
generation who will only know digital consumption.
Survey Snapshot
Entertainment
TV is still the star in Australian
media preferences, but since last
year, we’re consuming more digital
media, we own more tablets, we’re
using more of our smartphone
smart features and we’re more likely
to be on social media
This year our survey reveals a number of key themes:
• TV retains its supremacy as our preferred source of
entertainment, with multi-tasking the new normal
and consumers adopting second screen activities
• Physical media is hanging in there (just), despite
increased consumer consumption, and wider
acceptance of digital media
• The rise of digital omnivores (laptop, smartphone
and tablet owners)
• Traditional forms of advertising are still the most
influential. Search is the most effective form of
online advertising and social media is critical for
driving awareness.
A total of 63% of Australian
survey respondents prefer watching
TV more than any other form
of entertainment
This is followed by using the Internet for social or
personal reasons (44%) and listening to music (37%).
This strong preference for watching favourite content
on live TV (i.e. when it is aired) is consistent across all
age groups.
In terms of international comparisons, Australians are
right up there in terms of their love of TV, with survey
respondents’ preference for watching TV only less than
that of consumers in the US, Japan and Norway.
Younger demographics have a lower preference for
watching TV, and 84% (Trailing) and 78% (Leading)
Millennials now view their computer as more of an
entertainment device than their televisions.
Physical media is holding its own – for now. In considering
how they will watch content in the near future (such as
recently released movies, packaged seasons of television
programs, and similar video content), 50% of Australian
survey respondents selected an exclusive use of physical
media formats, one of the highest proportions amongst
participant countries.
That notwithstanding, 21% of all Australian survey
respondents and more than 30% of Millennial
age groups now consume video content in a
predominantly digital format. The challenge remains
in how to extract value from physical formats
and legacy consumer preferences for as long as
possible while positioning for a generation who will
predominately consume in digital formats.
4
Multi-tasking behaviours have increased since last
year, giving rise to the question, are we multi-tasking
while watching TV – or is the TV on in the background
while we are online? In 2012, only 29% of Australian
consumers were focused solely on watching TV
(down from 40% last year), with Internet browsing
and reading email ranked as the most frequent
‘combined’ activities.
Australians’ DVR usage has increased since last year,
with 20% of survey respondents having watched TV on
a DVR compared with just 11% last year. Almost half
of us now own a DVR (rising from 25% in last year’s
survey) and, with the ability to skip ads remaining
a favourite feature, this may pose challenges for TV
advertising’s hegemony.
Internet
Over a third of Trailing Millennials and 25% of Leading
Millennials use a social network while watching TV
which is likely to also include using social networking
sites to connect with others interested in, and to
comment on, a particular TV show during and after
its broadcast. With almost half of all Australian survey
respondents updating their social networks either
every day or almost every day (5-7 days a week), social
media is challenging customer and content strategies
for media organisations and consumer businesses
more broadly.
Media devices
Australians are becoming digital
omnivores – owners and users of
multiple devices
28% of survey respondents own a smartphone, a
tablet, and a laptop. 37% of all Australian respondents
owned a tablet in late 2012 compared to just 13%
in 2011, one of the highest ownership levels recorded
across all countries in our survey. In considering which
device was more valuable, 80% of all Australian
respondents (and 90% of Leading Millennials) said
that their smartphone was more valuable than their
tablet device.
Whilst non-smart features (such as voice calls and
texting) are still the most frequently used features,
the use of mobiles to read email has increased
significantly from last year (from 33% to 48%) across
all age groups and mobile banking is also on the rise,
with 30% of survey respondents across all ages
now using their mobile for banking at least weekly –
ranking Australia higher in terms of online banking
than any other country except Korea.
5
Australian respondents are
watching less TV, seeking less
personal interest information
and watching less sport online
than survey respondents in most
other countries
Search engine use is the most common online activity
for all demographics except Matures with 83% of
Australians surveyed searching online on at least a
weekly basis and 58% doing so daily.
Similar online activities are performed across the
different age groups, with search, news consumption
and emailing friends and family the most common
behaviours across all respondents. Younger age groups
rank social networking in their top five online activities,
while older age groups are more likely to use email as
a mechanism to connect with friends and family.
Fifty four percent of Australians (including 73% of
Trailing Millennials) would pay more money for faster
Internet and 59% would view more videos online if
their Internet connection speed were faster. Compared
to global data, Australia has one of the highest
percentage of respondents who are willing to pay
more for faster Internet connections.
Advertising
Newspapers and Magazines
Australian consumers are embracing
online reviews to inform potential
purchases. 63% of Australian
survey respondents stated that
online consumer reviews and ratings
influence their buying decisions
more than other online advertising
For reading the news, the printed
product is still favoured by
Australian readers
Television is still considered the most influential form
of advertising among all age groups, followed by
newspaper and magazine advertising which are seen
as at least moderately influential.
Print is still an influential media in Australia, with 72%
of consumers saying that they enjoy reading print
magazines even though they could find much of the
same information online, and over half of consumers
paying more attention to newspaper (59%) and
magazine (58%) advertising than online.
Australian respondents selected sponsored and
unsponsored search engine result advertising as
the online advertising methods that have the most
influence on buying decisions, although both
categories experienced a small decline since last year.
The role of social media is still playing out in
advertising – and appears to be effective in driving
product awareness, but not necessarily conversion.
34% of all respondents view social media as an
important tool to learn about products and services,
but 79% of all Australian survey respondents report
that social media has a low influence on their buying
decisions. Organisations and media agencies need
to be acutely aware of these differences when
devising their marketing mix.
Older generations are most loyal to the traditional
format, with 62% of Matures and 47% of Boomers
surveyed favouring the printed hard copy.
That said, this year the shift to digital is more marked
– in 2011, 48% of all respondents preferred hard
copy print to digital media, compared to just 37%
in 2012. Among digital news formats consumed on
tablets, e-readers or smartphones, Australian survey
respondents prefer using application aggregators
rather than the browser versions.
Magazines continue to fare somewhat better, enjoying
a higher preference for printed over digital formats with
75% of all Australian survey respondents favouring the
printed hard copy.
Traditional print-only subscriptions are still preferred by
Australian survey respondents, over digital or bundled
subscriptions, although most households have no print
subscriptions at all.
Of those respondents who had a bundled print and
digital newspaper subscription, 67% considered
that they were paying for the print version and
getting the online version ‘for free’, highlighting
media’s ongoing challenge to put a value on digital
news content.
Over 79% of Australian respondents are not
comfortable with having their online activity tracked
and close to that proportion would not be willing to
provide personal information, even if it meant more
targeted offers. Globally, Australians are among
those with the greatest discomfort in this regard.
6
Digital media consumption
is increasing, however,
TV remains our preferred
source of entertainment
7
Entertainment
TV still wears the entertainment crown...
A total of 63% of Australian survey respondents
prefer to watch television on any device, as their
most preferred source of entertainment. As shown
in Figure 2, this is followed by using the Internet for
social or personal reasons (44%) and listening to music
(37%). Compared with last year’s survey, TV retains
pole position with the same poportion of Australian
respondents ranking it in their top three. Using the
Internet fell marginally (from 47%) and listening to
music increased marginally (from 35%). Other forms
of media which decreased in ranked preference since
last year were newspapers, magazines and radio, whilst
movies, books, live performances and gaming all
improved in the rankings.
Figure 3
Watching TV vs. using the Internet
for social or personal interests
Preferred sources of entertainment across different age
groups and compared to prior year
80%
63%
Total
Leading Millennials
Xers
Boomers
Matures
63%
60%
47%
44%
40%
20%
Figure 2
Ranking of preferred sources of entertainment
Preferred sources of entertainment among all Australian
consumers surveyed. Please rank your top three.
63%
Watching TV (on any device)
Using the Internet for
social or personal interests
44%
Listening to music
(using any device)
37%
31%
Reading books
Reading newspapers
28%
Going to the movies
28%
Listening to the radio
Attending live performances
21%
18%
Playing video games
17%
Reading magazines
14%
For younger generations (Trailing and Leading
Millennials), there is a similar preference for using
the Internet for social or personal reasons as there is
watching TV – with 84% (Trailing) and 78% (Leading)
Millennials viewing their computer as more of an
entertainment device than their televisions.
0%
2011
2012
Watching TV Watching TV
on any device on any device
2011
Using the
internet for
social or
personal
interests
2012
Using the
internet for
social or
personal
interests
In comparison with international consumers, Australian
survey respondents’ preference for watching TV is
only less than that of consumers in the US, Japan
and Norway. Australians use the Internet more for
entertainment purposes than most countries, except
the US, Italy, Korea and Spain.
….and watching TV live at home remains the
preferred method of content viewing
As was the case last year and shown in Figure 4
on the following page, watching live TV on a home
system remains the number one method for watching
favourite content across all age groups; preferred by
over 45% of Millennials and over 70% of Boomers
and Matures.
Australians’ DVR usage has increased since last year,
with 20% of consumers having watched TV on a
DVR compared with just 11% last year. Australia lags
behind only the US, UK and Japan in DVR usage all of
which have seen an increase since last year, but less
markedly. Watching TV via DVRs is equally popular
across all age groups in Australia.
8
Figure 4
Methods to watch favourite TV shows
Figure 5
Smartphone as an entertainment device
How do you typically watch your favourite TV shows?
(select from using the following methods)
How much do you agree or disagree with the following
statement: I use my mobile/cellular/smartphone as an
entertainment device
64%
20%
16%
12%
11%
10%
8%
7%
58%
49%
7%
Strongly Agree
Agree
79%
78%
vid
eo
er
-to
-p
ee
r
On
de
m
Sm and
a
or rtp
M ho
ob ne
ile
Ta
bl
et
y
ra
u-
10%
e
Bl
Pe
Total
Fr
ee
How often do you typically watch your favorite television
shows using each of the following methods?
(everyday/weekly)
34%
UK
w
ay
Sp
ain
a
re
No
r
Ko
pa
n
ly
14%
11%
7% 7%
5% 6%
4%
1%
Ja
y
an
Ita
Smartphone /
mobile device
Tablet
13%
12%
5% 5%
rm
e
8% 7%
an
c
7% 7%
tra
9
14%
13% 12%
Au
s
2 screens or 3?
As shown in Figure 5, approximately 80% of Millennials
view their phones as an entertainment device, and
7% of Australian survey respondents watch TV shows
on their smartphone at least weekly (Figure 6).
The preference for watching TV on a mobile device
is higher among younger age groups, with 15% of
Trailing Millennials surveyed and 14% of Leading
Millennials having watched their favourite TV show on
their smartphone, compared with only 1% of Matures.
Matures
Figure 6
Smartphone and tablet use for watching TV
lia
With all free-to-air players in Australia providing
some form of free catch up TV online, online viewing is
becoming mainstream and more widely used, with 54%
of all survey respondents having used these services.
Boomers
As shown in Figure 6, Australian usage of smartphones
and tablets to watch TV is in line with most other markets,
surpassed only by the US, Italy, Korea and Spain.
Ge
Connected TV sales are expected to boom over the
coming years; by the end of the decade, most TV sets
sold in developed countries will likely have two way
Internet connectivity. However, the absence of ‘mustsee’ content that is available exclusively for viewing
on connected TVs will likely be a barrier to uptake
and consumer use1. Australians are among those
least likely to use an ‘on demand’ feature on their TV
set, with only 8% having done so (only consumers in
Germany, Japan and Korea being less likely to do so).
Xers
The use of tablets for watching TV shows every day
or weekly has increased to 7% of respondents (from
4% in 2011), no doubt in line with the increase in
penetration of tablets and the release of new products
in this category over the last year. Millennials lead the
way, with 11% watching their favourite TV shows on
tablets every day or weekly.
US
Online sources, that is viewing from a show’s Internet
site, peer to peer networks, video sharing sites and free
online video services, are becoming more prevalent in
terms of usage among Australian consumers. Physical
formats seem to have retained some of their former
popularity, with only consumers in the US watching
more of their favourite TV shows on physical formats
such as DVD and Blu-ray.
Trailing
Leading
Millennials Millennials
Fr
on
lin
D/
DV
g
sit
e
DV
R
Vi
de
o
sh
ar
in
Liv
e
TV
22%
Smartphones and tablets as companion devices to the
television viewing experience appear to be providing
not only the utility of a portable device for consumers
on the go, but also in the provision of a now ‘3 screen’
experience (TV, tablet and smartphone in combination)
in the living room – providing both opportunities and
challenges for content providers and advertisers alike.
Multi-tasking – the new normal
Programmers and content providers have
acknowledged the need to respond to multi-tasking
behaviours in recent years, demonstrated by integrated
TV and online experiences, companion apps and
program or brand micro-sites to accompany the
TV viewing experience. Figure 7 shows that at the
end of 2012 only 29% of Australian consumers were
focused solely on watching TV (down from 40%
last year), with Internet browsing, reading email and
using a social network being the top three undertaken
in terms of ‘combined’ activities.
Figure 7
TV watching multi-tasking behaviours
Younger age groups are better represented across
multi-tasking activities such as blogging, using social
networks and general browsing on the Internet.
Figure 8
TV watching multi-tasking behaviours by age group
Which are things you typically do while watching your
home television system?
31%
Use a social
network
Surf the web
Browse for products
and services online
3%
2%
Browse and surf the web
7%
5%
3%
1%
2%
2%
8%
7%
5%
12%
11%
Leading Millennials
Xers
12%
11%
Boomers
Matures
16%
Text message
15%
Write e-mail
12%
11%
Talk on the phone
10%
Read for pleasure
9%
Play interactive videogames
(any platform)
8%
Read for work and/or school
8%
Micro-blogging about the show
14%
17%
14%
17%
Use a social network
Purchasing products and
services online
Micro-blogging about
something else
29%
19%
Read e-mail
Browse for products and
services online
Micro-blogging
about the show
23%
24%
10%
12%
Purchasing products
and services online
Which are things you typically do while watching
your home television system?
29%
11%
4%
Micro-blogging
about something else
Nothing else – Just watching TV
17%
6%
2%
25%
7%
7%
6%
10
We are yet to see a strong connection between
what we are watching on TV and our multi-tasking
behaviours, but 6% of Australian survey respondents
are using micro-blogging sites (such as Twitter)
whilst watching, to post comments about the show
and this was higher among Trailing Millennials (12%)
and Leading Millennials (11%). Over a third of Trailing
Millennials and 25% of Leading Millennials use a social
network whilst watching TV, which is likely to also
include using social networking sites to connect with
others interested in, and to comment on a particular
TV show during and after its broadcast. For example,
Channel 9 and Shine’s popular talent show ‘The Voice’
had over 500k ‘likes’ and 160k people commenting
on the on the Facebook page, with 170 new posts
and 450 likes during a two hour mid-week broadcast2.
7% of survey repondents are making online purchases
whilst watching TV, the potential for which could
likely increase with higher penetration of connected
TVs. If executed well and adopted by consumers
this might, in the future, offer a rare measure of TV
advertising’s ability to call to action.
Pay TV working hard to hang on to customers
Australia continues to have one of the lowest penetration
rates of pay TV services when compared to other
markets. As shown in Figure 9, approximately 34% of
Australian survey respondents subscribe to pay TV, of
which 4% are considering cancelling their service and 3%
are considering changing providers in the next 12 months.
Figure 9
Paid TV subscriptions
11
AUSTRALIA
US
FRANCE
GERMANY
ITALY
JAPAN
KOREA
NORWAY
SPAIN
UK
I have a paid television service (includes those considering
cancelling or switching their service in the next 12 months)
34%
86%
47%
61%
45%
38%
80%
87%
43%
55%
Of the respondents who were considering changing
or cancelling their pay TV subscription, the most
commonly cited reasons were related to its cost or
perceived value - 10% indicating that they can get
the television content they want for free.
Australian pay TV is being disrupted, as in other
markets, by ‘over the top’ (OTT) market entrants and
multiple online propositions such as global Internet
channels offering the same ‘exclusive’ content e.g.
Foxtel’s ESPN channel being rivaled by NBA’s own
channel demonstrating the threat of a direct model
from sports’ governing bodies, and ‘pay as you go’
IPTV subscription models which offer smaller, lower
cost channel bundles and no contracts.
In this context pay TV has focused on providing
innovative enhancements to the subscriber offer
to further engage and retain existing subscribers
– combining the user, the technology and the
environment in a compelling way. This has been
provided through a ‘deeper’ and more integrated
viewing experience such as companion apps with
an enhanced EPG, deep dive content and dual screen
tablet viewing capabilities.
Extending TV format brands and the nature
of the entertainment experience
Perhaps not unsurprisingly, given Australia’s enduring
love for television, platform and device proliferation,
and challenging advertising markets, media companies
are using live performances and events to leverage
content assets through richer ‘brand experiences’.
Program brands such as Masterchef and Top Gear
have done this with concepts ranging from pop-up
restaurants to more traditional merchandising related
to the format. Attendance at live events increased
from 16% to 18% (ranked in the top three sources of
entertainment among Australian survey respondents)
since last year and the potential of these as an auxiliary
revenue stream is being realised by broadcasters,
production companies and print media alike.
At the heart of this trend is a need to create a more
compelling customer experience in an environment
where there is enormous competition for the
entertainment dollar and for consumers’ attention –
and in doing so, leverage multiple (physical and digital)
touch points with consumers.
Physical vs. digital media
In thinking about how they will watch entertainment
content such as recently released movies, packaged
seasons of television programs, and similar video
content in the near future, 50% of Australian
consumers surveyed selected the use of physical
media formats most or all of the time, one of the
highest proportions amongst participant countries.
Figure 11
Physical vs. digital media consumption by age group
(recently released movies, packaged TV series and
similar video content)
Thinking about how you will watch entertainment content
in the next 12 months, which of the following best describes
what you will most likely do?
100
80
60
%
30
35
31
35
34
AUSTRALIA
US
FRANCE
GERMANY
ITALY
JAPAN
KOREA
NORWAY
SPAIN
UK
I will most likely watch and use physical media
(e.g. DVDs and Blu-ray discs) nearly all or all of the time
50%
43%
42%
48%
32%
64%
34%
35%
25%
51%
AUSTRALIA
US
FRANCE
GERMANY
ITALY
JAPAN
KOREA
NORWAY
SPAIN
UK
I will watch a mix of both physical media and downloaded
or streamed movies, television, and video content from online
digital sources (i.e., over the Internet)
29%
37%
34%
35%
37%
27%
40%
41%
44%
17%
While physical media still represents the majority
of overall consumption of these content types
among all Australian survey respondents, 30%
of Trailing Millennials and 35% of Leading Millennials
intend to consume movie and TV series content in a
predominantly digital format in the next 12 months.
14
23
8
27
48
63
Watch via
digital sources
Mix of
physical
and digital
media
65
Physical
media mostly
0
Trailing Leading
Figure 10
Physical vs. digital media consumption
(recently released movies, packaged TV series
and similar video content)
20
32
40
20
35
Xers
Boomers Matures
The big questions
• As a TV business, how do I prolong the
attractiveness of the medium as a form of
entertainment? Is it about big, ‘tent pole’*
formats from overseas or local programming?
• How do we prepare now for the inevitable shift from
TV as the Millennials grow up? How do we develop
channel or brand loyalty with this age group?
• How can we learn more about our viewers and
users? How can we use that data to make more or
better programs to enhance brand loyalty? Which
other companies would that data be useful to?
• How can TV maximise value from the older
generations, not losing sight of the fact that they
have more disposable income and are more likely
to watch scheduled TV?
• How can all entertainment businesses prolong the
life of the physical formats (DVD, Blu-ray etc.) while
still making money from them?
• As an entertainment business, how do we
develop content or brand loyalty through multiple
entertainment touchpoints with the consumer?
* A tent pole is an industry term for a format or piece of content
that is core to the broadcaster brand and customer proposition
and around which ancillary revenues can be built.
12
We are becoming digital
omnivores, with more than a
quarter owning a smartphone,
tablet and a laptop
13
Media devices
Taking our tablets
Headlined by the advent of the iPad Mini in the
Australian market in late 2012, the tablet market
is continuing to evolve, with new entrants and
rapidly increasing penetration – 37% of all Australian
respondents owned a tablet in late 2012, compared
to just 13% in 2011. In comparison with international
countries surveyed, only Spain and Italy reported
a higher proportion of ownership (38%). Among
Australian survey respondents, ownership is skewed
towards Millennials, whilst over 75% of all age groups
(except Matures) own a laptop or a notebook.
Figure 12
Laptop vs. tablet ownership and usage
Smartphone
Which of the following does your household own?
Do you expect to use them more or less next year?
Do not own but expect to
buy within the next 12m
10%
6%
9%
8%
10%
Own and expect to use
more or same in next 12m
Laptop
33%
56%
6%
4%
5%
5%
4%
60%
Tablet
75%
80%
74%
19%
16%
17%
15%
12%
39%
40%
37%
31%
23%
85%
81%
80%
72%
With the launch of hybrid tablets/notebooks
(such as Acer Iconia and Microsoft Surface) device
manufacturers and operating system providers
acknowledged consumers’ existing affection for
both tablets and notebooks in shaping a new device
category – one still so small that its sales are not
individually tracked. Sales of ‘hybrids’ (are these devices
to be known as ‘notelets’?) to date may have been
constrained by price (relative to substitutes), with
some models selling for more than twice the price
of the iPad. Hybrids represent another example of
device convergence, which is being observed in other
categories such as notebooks, netbooks and tablets.
Likewise, in response to consumer needs and usage,
it is possible that smartphones and tablets (the
‘phablet’) may ultimately converge. The screen size
of the phone/tablet combination provides a richer
consumer experience without the inconvenience of
carrying a tablet – although these devices are most
likely more suited to personal use and viewing content
rather than work-related activities such as creating or
editing documents on the go.
Digital omnivores are a global phenomenon
As shown in Figure 13, tablet and smartphone sales
have driven growth of ‘digital omnivores’ – owners
and users of multiple devices (laptop, smartphone
and tablets). 28% of survey respondents own a
smartphone, a tablet and a laptop. In considering
which device was more valuable, 80% of all Australian
respondents (and 90% of Leading Millennials) said
that their smartphone was more valuable than their
tablet device – the Australian consumer’s love affair
with the smartphone is still going strong.
Leading Millennials
Xers
Boomers
Matures
14
Figure 13
Comparison of international multiple device ownership
Smartphone
AND Tablet
AND Laptop
28%
26%
20%
22%
31%
7%
24%
36%
30%
25%
41%
35%
30%
Smartphone AND Laptop
59%
47%
46%
53%
64%
27%
61%
66%
64%
56%
Smartphone AND Tablet
32%
27%
22%
24%
34%
9%
28%
38%
32%
27%
Laptop
81%
75%
76%
78%
85%
67%
68%
85%
84%
81%
Tablet
37%
36%
29%
27%
38%
14%
30%
45%
38%
33%
Smartphone
68%
55%
55%
62%
72%
35%
85%
73%
72%
65%
ain
Sp
rw
No
Ko
re
n
Ja
pa
Ita
an
rm
Ge
an
Fr
ali
str
Au
Computers still device of choice
While tablet ownership has surged, it is still not
the device of choice for most Australian survey
respondents. For almost every activity, (apart from
voice calls and texting), including blogging, social
networking and web browsing, the PC reigned as the
‘go to’ device by a significant margin1. Tablets remain
a secondary device for most and even the beloved
smartphone struggles to compete against the utility of
laptops and desktops.
UK
26%
ay
11%
a
35%
ly
25%
y
25%
ce
32%
US
32%
a
Tablet AND Laptop
Figure 14
Preferred device
Of the features listed below, please list your preferred device
(your go-to, cannot-live-without device for this activity):
View or edit
documents
Make phone calls
Updated social
Networking pages
Micro-blogging
Browse the web
Read email
Text messaging
Read books
Read news articles
Watch TV programs
0%
15
20%
40%
60%
80% 100%
Laptop/Desktop
Television
Smartphone or mobile phone
Other
Tablet
Do not do/ Does not apply
From calls to cash
Overall usage trends for mobile phones (both the
‘smart’ and ‘non-smart’ varieties) are generally
consistent with last year, with the vast majority of
respondents across all age groups continuing to use
mobiles mostly for texting and phone calls (Figure 15).
Use of mobiles to read email has grown significantly
since last year (from 33% to 48%), with Leading
Millennials contributing the most to this increase
(from 48% to 70%). Boomers and Matures have also
increased their use of email on mobiles, with Boomers
rising from 19% to 35%, and Matures rising from 9%
to 18% in the last year.
There has also been a significant rise in the use of
mobile banking, with 30% of survey respondents
across all ages using their mobile for banking at
least weekly (up from 20% last year). Compared to
international survey respondents, Australians do more
online banking than any other country except Korea.
The introduction of banking apps such as ANZ’s
FastPay and the Commonwealth Bank’s Kaching are
likely to be contributing to this uptake, and as more
banking features become available through apps, we
expect this trend to continue across all age groups.
Figure 15
Smartphone uses
Of the features on your device that you do currently use, please select how frequently you use them (every day / weekly)
Make phone calls
Text messaging
Read email
Browse the web
Take still photos
Updated social
networking pages
Online banking
Watch usergenerated content
Leading Millennials
Xers
Download free apps
Boomers
Matures
Micro-blogging
0%
20%
40%
60%
80%
100%
16
The future of the TV set
TVs can be connected in multiple ways, either through
embedded two-way connectivity that is part of their
functionality (smart TVs) or through peripheral devices
that are already connected, including Internet-enabled
set-top boxes and games consoles. Purchase of smart
TVs globally is likely to increase in 2013, although
most will not be bought for their connectivity1.
With laptops, tablets and smartphones providing
more intuitive browsing experiences, the smart TV
will be unlikely to be a substitute for general Internet
surfing and access.
However, ownership of connected TVs is higher
among Australian survey respondents (at 28%)
when connections through other devices are
included, with 24% of all respondents expecting
to use them more or the same in the next 12 months.
Ownership and usage is similar across different age
groups, apart from Matures (77% of whom do not
own and have no plans to buy a connected TV).
Figure 16
Connected TV ownership and usage
Does your household own a connected TV?
57%
54%
58%
61%
Do not own and do
not plan to buy
77%
Do not own, but
plan to buy
Own and expect to
use less
10%
13%
13%
14%
9%
6%
4%
2%
2%
2%
11%
17
Leading Millennials
Xers
Boomers
28%
28%
27%
23%
Own and expect to
use more or the
same
Matures
With the introduction of Ultra HD TVs (4K/8K) at least
18-36 months away, the challenge for broadcasters
and content creators is to both create exclusive and
compelling content to be consumed on connected TVs.
Point & Shoot vs. DSLR – the split in the digital
camera market
Perhaps surprisingly, the expected disruptive effect of
the multi-functional smartphone and tablet devices on
the digital camera market has not stunted ownership
of, or demand for digital cameras (particularly DSLR
models), with ownership of these devices strongest
among the Matures (with 79% indicating ownership
and 72% likely to use them the same amount or more
in the next 12 months).
Innovations in the ‘point and shoot’ market such
as improved optical zoom functionality, bigger
image sensors and cameras with built-in 4G/Wi-Fi
capability are seeking to counter the threat of the
low to mid – range DSLR models and challenge
head on the shortcomings of smartphone and tablet
cameras. Similarly, increased connectivity in point and
shoot cameras strives to address the instant sharing
capability of smartphones and tablets and may in the
short term help stand alone cameras retain relevance
with consumers.
Home entertainment device ownership
The past 12 months have seen a shift in the home
entertainment market. Newer devices have grown in
popularity, with DVR ownership rising from 25% to
45% since 2011, and 3D-capable TV ownership up from
6% to 19% among Australian survey respondents.
Blu-ray player ownership has also risen among
Australian survey respondents, from 15% to 28% since
last year. When Blu-ray enabled gaming consoles are
included the proportion of Blu-ray ownership increased
to 51%. This upward trend may well continue,
particularly if Ultra HD TV takes off and Blu-ray discs
capable of storing 4K content reach the market.
The big questions
• How can we best use the blurring of lines between
devices (i.e. notelets and phablets) to empower
our workforce to be more mobile? And more
productive when on the move?
• How can we tailor our product offering across
channels to maximise the best features of each device?
• What role should broadcasters, content producers
and manufacturers be playing now in defining
and agreeing new standards to support the next
generation of high definition TV?
• As advertisers, how should we respond to the rise
(and rise) of DVRs in our approach to TV advertising?
For advertisers, the rise of the DVR is the one to watch.
While DVRs grew in popularity across all countries
surveyed, ownership amongst Australians grew the
most since 2011, where ownership is now the third
highest behind the US (51%) and UK (56%). With the
ability to skip through commercials remaining one of
the favourite features for DVR owners, the influence
of television advertising may soon come under threat.
Figure 17
Home entertainment device ownership
DVD player
57%
64%
71%
Flat Panel TV
51%
48%
VCR
DVR
25%
Non-Flat Panel TV
34%
29%
Portable DVD player
34%
29%
Blu-ray player (standalone)
14%
6%
45%
28%
15%
Blu-ray player
(in gaming console)
3-D capable TV
68%
23%
19%
2012
2011
18
Our online activities are all
about search... and social
19
Internet
Online search – the juggernaut rolls on
Search engine use is the most common activity
conducted online by all generations except Matures –
83% of Australians surveyed search online on at least
a weekly basis and 58% do so daily. At present, social
networking has a long way to go before it challenges
the supremacy of search engines from a consumer
(e.g. frequency and utility) and commercial perspective.
Social networking sites are seeking to compete more
directly with Google in the online-display advertising
market. As an example, Facebook recently acquired
Atlas Advertiser from Microsoft to add to its campaign
targeting and measurement capabilities – an area in
which Google has ruled for many years.
Overall, similar online activities are performed across the
different age groups, with search, news consumption
and emailing friends and family the most common
behaviours across all respondents. Trailing Millennials
have a different behavioural profile – with more
social media activity, listening to or watching content
generated by others and instant messaging more
prevalent. Both younger age groups (Trailing Millennials
and Leading Millennials) rank social networking in their
top five online activities, while older age groups are
more likely to use email as a mechanism to connect
with friends and family.
The fact that reading news was in the top five online
behaviours for all age groups surveyed is good news
for publishers and advertisers. While they still need to
be responsive to alternative models of delivering up
to the minute headlines (e.g. Twitter’s acquisition of
Summify), these behaviours indicate that advertising
in news sites is still valuable inventory.
Compared to international markets surveyed, the range
of online activities undertaken by Australian survey
respondents appears to be more concentrated, with
a higher propensity to socialise on the Internet than
in most other countries except Italy, UK, US and Spain.
Otherwise, Australian respondents are watching less
TV, seeking less personal interest information and
watching less sport online than survey respondents in
most other countries.
Figure 18
Most common online behaviours
Which of the following online activities would you say you are
doing everyday or almost everyday (5-7 times per week)?
1
Using search engines like google, yahoo!, etc.
63%
2
Socialising (via social networking sites, chat
rooms, or message boards)
44%
3
Instant messaging with friends or family
33%
4
Watching or listening to content created
by others (websites, photos, videos, music,
and blogs)
26%
5
Reading about local news, weather,
or current events
22%
Leading Millennials
1
Using search engines like Google, yahoo!, etc.
56%
2
Socialising (via social networking sites,
chat rooms, or message boards)
38%
3
or current events
37%
4
Reading national or world news, weather,
or current events
33%
5
Emailing with friends or family
26%
1
Using search engines like Google, yahoo!, etc.
61%
2
or current events
41%
3
or current events
35%
4
28%
5
Seeking personal interest information
(entertainment, travel or leisure, or hobbies)
19%
Xers
Boomers
1
55%
2
or current events
42%
3
or current events
40%
4
39%
5
14%
1
53%
2
51%
3
or current events
42%
4
or current events
39%
5
12%
Matures
20
Attitudes to social media
Almost half (48%) of Australian consumers across all
age groups updating their social networking pages
‘every day’ or almost every day, (‘5-7 days/per week’).
Australian consumers are on par with other ‘connected’
countries when it comes to valuing socialising and
connecting with friends through social media channels.
Compared with last year’s results, sentiment about
whether social media is a satisfactory alternative
to in-person interactions has largely remained static
(39% of all Australian survey respondents), but has
declined marginally in Millennial and Xers age groups;
with Trailing Millennials dropping from 60% to 48%,
Leading Millennials from 49% to 46% and Xers from
46% to 45%.
Overall, those surveyed agreed that the main value of
social networking was that it allowed the respondents
to interact with their friends more frequently than would
be possible ‘offline’, but it seems it is still hard to replace
‘quality time’ with ‘quantity time’.
The desire for faster Internet connections and the
willingness to pay is also observed across all age groups,
although the percentage of younger respondents who
are willing to pay more is the highest (73% of Trailing
Millennials) although they are not likely to be the
household buyer.
Compared to global data, Australians have one of the
highest percentage of respondents who are willing pay
more for faster Internet connections.
The main value of
When I need to connect Time I spend interacting
social networking sites
with my friends,social
with friends
is they allow me to
networking sites, IM electronically, throgh IM,
interact with more
and texting are a good
texting or social
friends (more
way to satisfy my needs networking sites is just
frequently) than I ever
as valuable as time we
would be able to 'offline'
spend together in person
UK
45%
SPAIN
39% 34%
NORWAY
64% 63% 69%
KOREA
US
JAPAN
UK
ITALY
AU
GERMANY
I would pay more money for faster Internet
(Agree strongly/somewhat)
FRANCE
Please indicate how much you agree or disagree with
the following statements. Summary of agree somewhat/
agree strongly
US
Figure 20
Willingness to pay
AUSTRALIA
Figure 19
Attitudes to social media
73% 69% 77%
21
The need for speed….and good news for an NBN
54% of Australians would pay more money for
faster Internet and 59% would view more videos
online if their Internet connection speed were faster.
The percentage of overall respondents watching TV
content on the Internet daily, has increased from
21% last year to 26% in this year’s survey. Further,
this behaviour is consistent across all age groups, with
27% of Matures and 25% of Boomers also watching
television programs online, where this was skewed
more towards younger age groups last year.
54%
59%
26%
47%
50%
23%
51%
51%
48%
50%
Accessing the Internet when mobile
The number of devices through which people can access
the Internet has increased markedly over the past few
years. Since 2009, mobile Internet usage has doubled
year on year and Australian mobile Internet access has
risen by 208% over the same period3. Furthermore, the
acceleration in mobile access to the Internet has not
impacted people’s more traditional use of the Internet
(such as home or office based activities) and is seen as
additional net Internet activity4.
As a result, it is no surprise Australian survey respondents
prefer smartphones as the primary device for accessing
the Internet when on the move. Leading Millennials
are leading the charge, with young professionals
increasingly reliant on their smartphones to access
emails and other digital content.
The big questions
• How do we keep pace with the fragmented,
non-linear and increasingly complex digital
landscape to ensure we are targeting customers
through their preferred channels?
• How do brands take advantage of the power
of online reviews and recommendations?
• Have we sufficiently explored how to best take
advantage of the advent of improved connectivity
(e.g. 4G/NBN)?
• How much emphasis have we placed on providing
a seamless multi-channel experience across our
range of digital and non-digital platforms?
In contrast, Matures have thus far failed to embrace
smartphones as their primary device for mobile Internet
consumption (only 10% using data and 12% WiFi).
This aligns to the survey findings that only 35% of
Matures currently own a smart phone, compared to
68% of all survey respondents.
22
Traditional advertising is
holding its own against
digital forms of advertising
23
Advertising
Degrees of influence
Television is still considered the top influencer on
buying decisions among all age groups, followed by
newspaper and magazine advertising which are seen
as at least moderately influential.
Compared to prior year data, the influence of a number
of traditional forms of advertising media has decreased
slightly, such as television (declined from 68% to 62%)
and newspapers (declined from 53% to 50%). Overall
however, traditional advertising is still holding its own
against digital forms of advertising. Mobile advertising
influence is not as significant as might have been
expected, while third party and reseller websites remain
behind traditional media at 40% and 37% respectively.
Figure 21
Most influential advertising channels
across all platforms
To what degree do the following influence your buying
decision? (High/medium influence)
Television ads
62%
Online review
55%
Manufacturer or
vendor website
54%
Newspaper ads
50%
Magazine ads
48%
Third party website
about products
40%
Reseller websites
37%
Radio ads
37%
In-theater ads
34%
Billboards and
outdoor ads
33%
Social Media ads
21%
SMS/Text message ads
17%
Mobile app ads
17%
Emergent digital forms of advertising are being recognised
as influential such as social media advertising (21%) and
adverts in mobile apps (17%) and have been called out
as separate categories in our survey this year. We will
track perceptions of the influence of these channels
with interest.
The online equivalent of word of mouth and
recommendations including blogs, tweets and online
reviews all demonstrate moderate influence on
purchasing decisions, posing challenges for agencies
and advertisers alike as to how most effectively to
leverage these channels in the marketing mix.
Among mass market advertising media, billboard
and cinema advertising still hold a moderate influence
especially on the Millennials, while radio ads resonate
most with Xers.
TV advertising is the number one form of advertising
media across most of the international countries in our
survey, although it appears to have lost some of its lustre
in Germany, Italy, Norway and the UK. In these markets,
online reviews and manufacturer websites were seen
now to have greater influence on buying decisions.
Online reviews and recommendations
Australian consumers are embracing online reviews
to inform potential purchases. Fifty five percent of
Australian survey respondents confirmed that online
consumer reviews have a high or moderate influence
on their buying decisions. The global survey results
show Australian consumer behaviour to be consistent
with most other participating countries, but with some
consumers overseas even more likely to be influenced
by online reviews (UK 62%, US 63%, Italy 70% and
Korea 77%).
Online reviews are becoming one of the most
effective methods of influencing consumers with
63% of Australian respondents agreeing that
online consumer reviews and ratings influence
buying decisions more than any type of online
advertising. For Trailing Millennials and Leading
Millennials an online testimonial or review is almost
as important (70% find influential) as word of
mouth recommendations (85% find influential).
Organisations are responding by harnessing the
influence of opinions and recommendations on buying
decisions with the rise of social curation, particularly
in trend-sensitive industries such as fashion and music
and investing time in promoting their products via
user-generated online reviews to complement other
forms of online advertising.
24
Figure 22
Influence of overall advertising (international comparisons)
AUSTRALIA
US
FRANCE
GERMANY
ITALY
JAPAN
KOREA
NORWAY
SPAIN
UK
To what degree do the following influence your buying decision? (High / medium)
Television ads
62%
68%
56%
48%
66%
62%
87%
54%
67%
50%
Online review
55%
63%
56%
54%
70%
47%
77%
46%
62%
62%
Manufacturer or vendor website
54%
57%
50%
42%
60%
47%
68%
65%
65%
37%
Reseller websites
37%
53%
53%
44%
61%
37%
59%
36%
50%
45%
Newspaper ads
50%
52%
51%
44%
57%
49%
63%
56%
57%
39%
Magazine ads
48%
51%
53%
43%
60%
41%
63%
51%
56%
40%
Third party website about
products
40%
49%
48%
49%
62%
57%
60%
52%
52%
40%
Radio ads
37%
39%
43%
34%
49%
20%
47%
27%
52%
25%
Billboards or outdoor ads
33%
36%
45%
35%
52%
31%
68%
39%
50%
28%
In-theater ads
34%
36%
41%
28%
41%
30%
60%
33%
46%
25%
Social media ads
21%
29%
28%
18%
41%
15%
51%
22%
49%
13%
SMS/Text message ads
17%
22%
27%
10%
31%
17%
43%
18%
34%
8%
Mobile app ads
17%
21%
27%
13%
28%
14%
51%
15%
38%
9%
% Among
Total Comsumers
Sponsored search retains the online lead
Australian survey respondents are most influenced
by sponsored and unsponsored search engine
result advertising among digital advertising. Both of
these declined as the most influential in this year’s
survey – being ranked first by 21% of respondents
previously and dropping to 18% (sponsored) and
15% (unsponsored) respectively this year.
Advertising delivered through social media, which
was not a survey category last year, is the fourth
most influential form of advertising, likely due to
its ‘recommendation and review’ nature which is
preferred by Australian consumers overall and most
analogous to word of mouth in a digital context.
25
Figure 23
Influence of online advertising
Thinking about advertisements you encounter online,
what three have the greatest influence on your buying
decision? (Summary of ranked #1)
2012
2011
Sponsored search engine result advertising
18%
21%
Unsponsored search engine result advertising
15%
21%
Banner advertising
13%
17%
Advertising delivered through
social media platforms
12%
N/A
Ads which must be viewed before you can
watch an online video
10%
6%
Interactive advertising (e.g. quiz)
10%
14%
Ads which are delivered during or after an
online video
5%
3%
Pop ups
4%
5%
Advertising associated with games played
on websites
4%
5%
Advertising embedding in videos
4%
4%
Advertising associated with downloadable
apps on mobile device
3%
4%
Buying behaviour vs. product awareness
– an important distinction
The economics of advertising through social media
channels are nascent and as yet unproven.
Social media appears to be effective in driving product
awareness, but not necessarily conversion. Almost half
(49%) of Trailing Millennials compared to 34% of all
respondents view social media as an important tool
to learn about products and services, but the majority
of respondents (66% of Trailing Millennials and 79%
of all Australians) report that social media has a low
influence on their buying decisions. Organisations need
to be acutely aware of the difference when devising
their marketing mix.
Attitudes to online and print advertising
Print is still an influential media in Australia, with 72%
of consumers saying that they enjoy reading print
magazines even though they could find much of the
same information online and 59% of consumers
paying more attention to newspaper advertisements
than online (58% for magazines). These attitudes are
more prevalent among Australian survey respondents
than in any of the other international markets surveyed.
Figure 24
Attitudes towards Internet advertising
Please indicate how much you agree or disagree with the follow
statements. (Summary of agree strongly/agree somewhat)
I enjoy reading printed magazines
even though I know I could find
most of the same information online
72%
72%
I find any type of internet advertising
to be more intrusive than print
advertisements in magazines
66%
67%
I find any type of internet advertising
to be more intrusive than print
advertisements in newspapers
65%
69%
I tend to pay greater attention to print
advertising in magazines than
advertising on the internet
58%
64%
I tend to pay greater attention
to print advertising in newspapers
than advertising on the internet
59%
63%
An important feature of printed magazines
is the advertising that helps me learn
about new things for my family and me
51%
55%
2012
2011
26
The privacy paradox continued
Prima face, online advertising should have more
influence on consumers because of its potential for
targeting and personalisation. And for 44% of Trailing
Millennials, digital ads do have a greater influence
on buying behaviours than print or TV ads.
However, consumer response to online advertising
appears to be dependent on the offer of choice (i.e.
‘I can choose to click on the ad’ or ‘I willingly provide
my personal information’) or when privacy is not in
question. Australian survey respondents across all age
groups find Internet advertising to be more intrusive
than in print, which is consistent with results from other
countries surveyed.
Over 79% of Australian respondents are not comfortable
with having their online activity tracked and close to
that number would not be willing to provide personal
information it even if it meant more targeted offers.
Globally, Australians are amongst those with the greatest
discomfort in this regard. This is consistent with prior
year responses overall and by age group (Figure
25) – even Millennials show decline in their comfort
with having web activity tracked, providing personal data
or being served targeted ads (which implies a degree of
monitoring or preference setting).
This aversion to sharing personal data in return for
greater personalisation appears be at odds with the
stereotype of digitally promiscuous, over-sharing nature
of younger generations. Perhaps the digital natives are
becoming more cautious?
Figure 25
Attitudes towards Internet advertising by age group
Please indicate how much you agree or disagree with the follow statements. (Summary of agree strongly/agree somewhat)
27
2012 | 2011
Trailing
Millennials
Leading
Millennials
Xers
Boomers
Matures
I find any type of Internet ad to be more intrusive
than print advertisements in newspapers
70% | 70%
67% | 67%
64% | 70%
66% | 67%
66% | 70%
I would willingly be exposed to more online
advertisements if it meant I could receive free
content that I found valuable
70% | 72%
66% | 64%
55% | 57%
44% | 44%
40% | 36%
I would click on more Internet advertising if it
was targeted to my needs
49% | 62%
49% | 56%
53% | 51%
39% | 35%
36% | 36%
I would rather pay for online content (news,
information, sports, games, social interaction sites,
movies, music, and television) in exchange for not
being exposed to advertisements
26% | 39%
28% | 37%
25% | 31%
19% | 23%
20% | 30%
I would be willing to provide more personal
information online if that meant I could receive
advertising more targeted to my needs and
interests
26% | 33%
28% | 33%
28% | 27%
20% | 19%
18% | 14%
I am comfortable with having my web browsing
activity tracked so that I could receive advertising
more targeted to my needs and interests
21% | 30%
25% | 30%
23% | 23%
19% | 12%
13% | 12%
Digital and online ads have a greater influence
on my buying decisions than “traditional” ads in
print (e.g. Newspapers) or on TV
44% | N/A
34% | N/A
24% | N/A
14% | N/A
15% | N/A
Figure 26
International attitudes towards Internet advertising
Please indicate how much you agree or disagree with the following
statements. (Summary of agree strongly/agree somewhat)
I find any type of Internet ad
to be more intrusive than
print advertisements
in newspapers
65%
60%
71%
I would willingly be
exposed to more online
advertisements if it meant I
could receive free content
that I found valuable
54%
63%
46%
Australians show a low willingness to pay for online
content (23%), a sentiment that seems to have
intensified since last year’s survey. This attitude is in
line with many international countries surveyed and
combined with a willingness to be exposed to more
ads in exchange for free content that is valuable to the
consumer, suggests there is an opportunity to explore
different ad-funded content models. This is most
prevalent in Millennial and Xer age groups, with 70%
of Trailing Millenials, 66% of Leading Millenials and 55%
of Xers indicating a willingness to receive more ads in
return for content they value.
46%
I would click on more Internet
advertising if it was targeted
to my needs
52%
30%
I would rather pay for online
content in exchange for
not being exposed
to advertisements
23%
26%
20%
I would be willing to
provide more personal
information online if that
meant I could receive
advertising more targeted
to my needs and interests
24%
32%
13%
I am comfortable with
having my web browsing
activity tracked so that I could
receive advertising more targeted
to my needs and interests
21%
25%
22%
AU
US
UK
The big questions
• As an advertiser, how are you focussing on the
areas where people are spending most of their
time online?
• Does your organisation have sufficient analytical
capabilities to track consumer sentiment across the
full spectrum of digital channels?
• How do we most effectively manage and take
advantage of the growing number of social media
channels available to consumers?
• Considering the efficacy of different ad channels to
drive different behaviours (from product awareness
to converting to a purchase), which mix of traditional
and digital advertising models will drive the desired
behaviours for your brands / products?
• How can online advertising maximise revenue from the
older generations, given the increasing savviness of
these consumers?
• Which ad-funded content models are working
overseas that can be applied in Australia?
28
Print is still favoured,
with an underlying shift
towards digital
29
Newspapers
and magazines
Print hangs in there – but for how much longer?
For reading the news, the printed product is still favoured
by Australian readers. Older generations are most loyal to
the traditional format, with 62% of Matures and 47%
of Boomers surveyed indicating that the printed hard
copy remains their preferred method to read newspapers.
Figure 27
Methods used to read favourite news articles
Of the methods and/or devices you use to read your favourite
news articles, which is your favourite?
Once set up, readers often rely on these applications
to expose them to new feeds, creating a difficult
‘discovery’ hurdle for news organisations to overcome
unless they have a direct commercial relationship with
the aggregator.
Figure 28
Digital formats and consumption on mobile devices
When reading news articles on a tablet, e-reader and/or
smartphone, what are your top three ways of reading?
(% Ranked # 1)
54%
100%
37%
38%
33%
80%
19%
60%
Social media
(referrals,
feeds,
clicked links)
40%
20%
0%
Online
Online
News
Application
(browser) (application) consolidators aggregators
(Yahoo,
(Flipboard,
Google)
Zite)
Figure 29
Methods used to read favourite news articles
(international comparisons)
Total
Trailing
Leading Xers
Boomers Matures
Tablet (Apple iPad, Kindle Fire, etc.)
Other device (mobile/cell phone, MP3 audio)
Smartphone (i.e. a phone with web browsing capabilities)
Laptop computer
Desktop computer
Printed Hard Copy
That said, this year the shift to digital is marked - in 2011,
48% of respondents preferred hard copy print to digital
mediums, compared to just 37% in 2012, although
this is still one of the highest when compared with
international markets surveyed (Figure 29).
Laptops and desktops are the preferred digital
devices for reading the news (27% and 23% ranked
#1, respectively). Among the remaining digital
formats, i.e. news consumed on tablets, e-readers
or smartphones, Australian survey respondents prefer
using application aggregators such as Flipboard and Zite
or news aggregators rather than the browser versions
(Figure 28).
With these application aggregators, a reader can
personalise and filter the news based not only on
their own preferences, but also based on their
friends’ preferences.
Of the methods and/or devices you use to read your favourite
news articles, which is your favourite?
46%
Hard copy
Laptop
Desktop
Smartphone /
tablet
39%
37%
35%
29%
27%
34%
30%
24%
23%
19%
13%
13%
13%
11%
5%
Australia
Korea
UK
US
These findings on methods, formats and devices for
consuming news are consistent with the observations
from Deloitte’s 2013 TMT Predictions1. We predict
that the form factors of personal computers (i.e. larger
screens, full or mid-size keyboards and mice or track
pads) will keep PC usage for finding and reading content
ahead of tablets and smartphones for some time.
30
Glossies are faring a bit better
Magazines continue to benefit from a higher preference
for printed over digital formats amongst Australian survey
respondents, with 75% favouring the printed hard copy as
shown in Figure 30. The trends affecting newspapers are
affecting magazines as well, albeit at a slower rate, thanks
predominately to the ongoing loyalty of Boomers and
Matures to the traditional printed magazine format and
the relatively immature digital magazine market in Australia.
magazine on a smartphone. Just a year later, 89%
of Matures prefer print and 5% have read magazine
content using a smartphone or tablet as even older
demographics embrace digital consumption.
Australia has some of the keenest readers of print
magazines globally, surpassed only by Japan (84%)
as shown in Figure 31. Across most international
countries the print format has managed to hold its
own more successfully than newspapers. Spain, Italy
and France appear to be leading the way in migrating
magazine readers from print to digital formats.
At the end of 2011, 55% of Australian consumers had
read hard copy magazines and of these, 95% of
Matures preferred print with only 1% having read a
Figure 30
Magazine consumption
Of the methods you use to read your favourite magazines, which is your favourite?
86%
89%
75%
67%
65%66%
21%
14%
Xers
Boomers
Leading Millennials
Matures
18%
13%
8% 7%
Printed
hardcopy
Total
Computer
11%
6% 6% 7% 7% 5%
5%
2%
7%
7%
0% 0%
Tablet
(e.g. Apple iPad, KindleFire)
Smartphone
1% 2% 2% 0% 0% 1%
Other (mobile,
MP3 player, e-reader)
Figure 31
International magazine consumption
31
UK
Spain
Norway
Korea
Japan
Italy
Germany
France
US
Australia
Of the methods you use to read your favourite magazines, which is your favourite? Response (%)
Printed hardcopy
75%
71%
61%
74%
52%
84%
29%
67%
45%
75%
Computer
14%
16%
28%
17%
35%
10%
38%
23%
40%
17%
Tablet
6%
6%
4%
3%
5%
3%
7%
5%
6%
4%
Smartphone
5%
5%
5%
5%
6%
3%
23%
3%
7%
2%
Other (mobile, MP3 player, e-reader)
0%
2%
1%
1%
2%
0%
2%
1%
2%
2%
Paywalls seeing a payoff
The newspaper industry in Australia is experimenting
with different subscription and pay wall models.
Traditional print subscriptions are still preferred over
digital or bundled subscriptions, although most
households have no print subscriptions at all.
Figure 32
What we buy …across age groups
Which of the following pay subscriptions does
your household purchase?
100%
80%
The profile and uptake of news and magazine
subscriptions is similar across age groups, (Figure 32)
with Leading Millennials having the fewest subscriptions
overall and Matures skewing towards print. It should
be noted that survey results are based on households,
rather than individual purchases, so the actual
subscription levels for individual age groups is likely
to be less than reported here.
68%
60%
54%
57%
49%
48%
49%
40%
20%
0%
Total
Trailing
Leading Xers
Boomers Matures
Bundled magazine subscription (hardcopy and online)
Bundled newspaper subscription (hardcopy and online)
Magazine subscriptions (traditional printed magazines)
Newspaper subscriptions (traditional printed newspapers)
Online magazine subscription – online only
Online newspaper subscription – online only
32
Of the Australian survey respondents who had a
bundled print and digital newspaper subscription,
67% considered that they were paying for the print
version and getting the online version ‘for free’, 24%
considered they were paying for the digital product and
9% considered that they were paying for both and they
were of equal value.
These perceptions lead to questions about the role
of the online product in the bundled package – will it
simply be a digital version of the printed magazine or
newspaper, or will it contain exclusive, unique content?
What content or features will enhance the value of the
online products for each age group? Are organisations
maximising the inherent design differences in a digital
experience to make the online product feel substantially
differentiated from the print product?
It would seem that magazines have a higher currency
inMagazines
their digital form than newspapers. This is
potentially influenced by factors such as the richness
of feature-led content which may affect the overall
39%
perception
of value. While
news may be viewed 58%
as
64%
61%
71%
74%
more of a staple, magazines are often viewed as a
‘treat’ purchase.
The big questions
• As a news organisation, how do we make our brand
relevant in this environment?
• How do we make the economics of the aggregator
model work?
• As publishers, how do we increase the value of our
digital advertising space?
• What paywall/subscription model should we adopt
and how will it shape reader behaviours?
• How does the perceived value in the bundled
subscription affect the way we price our products?
• Can we segment our customers in order to
market differently to those who perceive value in
print vs. those who perceive value in digital?
• How can we tap into the psyche of the people
who perceive equal value in our print and digital
products to understand why this is? And why it
isn’t the case for other customers?
Magazines
39%
61%
71%
40%
21%
Figure 33
29%
What
18%we value…
22%
16%
19%
21%
26%
20%
You said you buy bundled (print and online) subscriptions.
Total
Trailing
Leading
Xers
Boomers Matures
Which of the
following statement best describes your view
of what you are paying for?
Newspapers
Magazines
71%
100%
64%
64%
11%
18%
Total
Total
22%
16%
29%
18%
Total
19%
Trailing
Leading
21%
26%
20%
Xers
Boomers
Matures
Newspapers
24%
21%
9%
74%
40%
21%
42%
39%
61%
67%
58%
64%
29%
16%
25%
19%
Trailing
Leading
Millennials
Leading
40%
58%
21%
Xers
Xers
69%
74%
58%
76%
13%
22%
24%
20%
42%
69%
64%
67%
76%
100%
18%
26%
Boomers Matures
Boomers Matures
11%
24%
58%
25%
9%
Total
Trailing
Leading
Xers
13%
18%
24%
Boomers
Matures
Newspapers
I am paying for the print and getting the online version
I am paying for the online version and getting the print
I am paying for both and they are of equal value to me
42%
69%
64%
76%
67%
100%
33
11%
24%
9%
25%
58%
13%
18%
24%
I am paying for the print and getting the online version
I am paying for the online version and getting the print
I am paying for both and they are of equal value to me
References
1.
2.
3.
4.
Deloitte (2013) ‘Technology, Media & Telecommunications Predictions 2013’
The Voice Facebook page, Tuesday 30th March from 7pm to 8:40pm
StatCounter, ‘Mobile Internet usage is doubling year on year’, February 2012
Campaign Brief, ‘Magna Global research reveals Australian mobile Internet access has risen
by 208% in three years’, April 2013
34
Relevant Deloitte
thought leadership
Digital Disruption – Short fuse, big bang
Published September 2012
www.deloitte.com/au/digitaldisruption
Technology, Media & Telecommunications Predictions 2013
Published January 2013
www.deloitte.com/au/tmtpredictions
Tech Trends 2013 – Elements of post-digital
Published February 2013
www.deloitte.com/au/techtrends
Taking leadership in a digital economy
Published November 2012
www.deloitte.com/view/en_AU/au/industries/tmt/1ee1c1abfe44b310VgnVCM1000003256f70aRCRD.htm
Silicon Beach – building momentum
Published November 2012
www.deloitte.com/au/connectedcontinent
Innovating for a digital future – the leadership challenge
Published June 2012
www.deloitte.com/au/innovatingforadigitalfuture
www.deloitte.com/au/mediademocracy
www.deloitte.com/au/tmt
www.deloitte.com/au/tmtinsights
For more Deloitte thought leadership on issues
and opportunities in the technology, media and telecommunication sectors please visit
www.deloitte.com/au/tmtinsights
35
Contacts
Damien Tampling
Partner
National Head, Technology,
Media & Telecommunications
Tel +61 2 9322 5890
[email protected]
Dennis Moth
Partner
Risk Services
Tel: +61 2 9322 7897
[email protected]
Clare Harding
Partner
Consulting – Strategy
& Operations
Tel: +61 2 9322 5205
[email protected]
Dean Kingsley
Partner
Risk Services
Tel: + 61 2 9322 7415
[email protected]
Stuart Johnston
Partner
Consulting
Tel: +61 3 9671 6518
[email protected]
Sandeep Chadha
Partner
Assurance & Advisory
Tel: + 61 2 9322 5033
[email protected]
Mason Davies
Partner
Consulting – Digital
Tel: +61 2 9322 7765
[email protected]
Jamie Gatt
Partner
Assurance and Advisory
Tel: +61 2 9322 5396
[email protected]
Frank Farrell
Partner
Consulting – Digital
Tel: +61 3 9671 6562
[email protected]
Roan Fryer
Partner
Tax
Tel: +61 2 9840 7290
[email protected]
David Cooper
Partner
Corporate Finance
Due Diligence
Tel: +61 2 9322 5783
[email protected]
Joshua Tanchel
Partner
Deloitte Private
Tel: +61 2 9322 7258
[email protected]
Ric Simes
Partner
Deloitte Access Economics
Tel: +61 2 9322 7772
[email protected]
Nicola Alcorn
Partner
Consulting – Strategy
& Operations
Tel: +61 2 9322 7984
[email protected]
36
Contact us
Deloitte
225 George Street
Sydney, New South Wales
Australia
Tel: +61 2 9322 7000
Fax: +61 2 9322 7001
www.deloitte.com.au
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee,
and its network of member firms, each of which is a legally separate and independent entity.
Please see www.deloitte.com/au/about for a detailed description of the legal structure of Deloitte Touche
Tohmatsu Limited and its member firms.
This publication is for internal distribution and use only among personnel of Deloitte Touche Tohmatsu Limited, its
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None of the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on
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© 2013 Deloitte Touche Tohmatsu.
MCBD_Syd_07/13_48830

Vox Populi: State of the Media Democracy Survey 2nd

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