COMPETITIVE MEDIA

Internet / Mobile / Social Media



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The World Wide Web turned 25 on March 12, 2014.  In this relatively short period of time, “going online” has become an integral part of many Americans’ daily lives – at work, at home, and at leisure.  We now have a generation of consumers who never know life without being online, and even older segments of the population have incorporated the Internet into their routines.

From the PC as geek “toy”, desktops, laptops, mobile phones and tablets have evolved into essential tools.  Consumers routinely seek out audio and editorial content online.  Ever-faster connections have led to the rise of online as a primary vehicle for video entertainment – to the point where the computer and mobile devices are now referred to as “second” and “third screens” respectively.

Penetration and Use

  • The Internet grew rapidly since its invention and in more recent years has been accompanied by the rise of mobile connectivity:
    • 14% of adults surveyed in 1995 claimed to be Internet users
    • 70% were online in 2006
    • 85% of persons 18+ were Internet users in 2012, 2013
    • 87% use the Internet in 2014
      • 99% penetration among those in households with $75K+ incomes
      • 97% penetration among those with college degrees and those age 18-29

  • Adult ownership of cell phones has soared also in less than two decades:
    • Cell phone penetration
      • 53% penetration in first survey in 2000
      • 90% in 2014
    • Smartphone ownership
      • 35% in first survey in 2011
      • 58% in 2014
    • 68% of adults connect to the Internet via mobile devices such as smartphones, tablets in 2014

(Source: Pew Research Center, Internet & American Life Project, 2014)

  • 89% of smartphone users’ monthly media time is through mobile apps; 11% through the mobile web
  • 81% of tablet users’ media time is spent through mobile apps; 19% through the mobile web

(Source: Nielsen – An Era of Growth: The Cross-Platform Media Report – March 2014)

  • Mobile media time (non-voice) has increased, online (activities on destop/laptop computers) dropped since 2010
    • Mobile captured 3.7% share of time spent with major media in 2010; online, 22%; other digital, 3.9%
    • Mobile has 23.3% share in 2014 while online has dropped to 18%; other digital now 5.9%

(Source: eMarketer, April 2014)

  • American consumers view digital as essential to their lives.
    • Those saying the Internet would be “very hard” to give up
      • 53% of Internet users agree in 2014 – compared to 38% in 2006
      • That translates to 48% of all U.S. adults
    • Those saying their cell phone would be “very hard” to give up
      • 49% of cell phone owners agree in 2014 – compared to 43% in 2005
      • That translates to 44% of all U.S. adults
    • Among Internet users who said it would be “very hard” to give up access
      • 61% claim being online is essential for job-related or other reasons
      • Translated to the entire population, 39% feel they absolutely need Internet access
      • 30% of those most deeply tied to the Internet simply enjoy being online

(Source: Pew Research Center, Internet & American Life Project, 2014)

  • Social media use plays a big part in American lives today
    • 73% of online adults currently use a social networking site of some kind
      • 42% of online adults use multiple social networking sites
      • 36% use only one
      • 22% didn’t specify using any of the 5 major social sites surveyed
      • Social users are highly engaged
        • The majority of social users visit sites at least once a day
        • Most of those visit multiple times daily

(Source: Pew Research Center, Internet & American Life Project, 2014)

  • Penetration of the 5 most popular social media sites among online adults; all grew, 2012 vs. 2013
    • Facebook – 67% > 71%
    • LinkedIn – 20% > 22%
    • Pinterest – 15% > 21%
    • Twitter – 16% > 18%
    • Instagram – 13% > 17%

(Source: Pew Research Center, Internet & American Life Project, 2014)

  • Social networks appeal to diverse demographics:
    • Facebook popular across a diverse mix
    • Pinterest appeals to females – women 4 times as likely as men to be users
    • LinkedIn popular among college grads, Internet users in higher-income homes
    • Twitter and Instagram show substantial overlap in user bases, and holding particular appeal to:
      • Younger adults
      • Urban dwellers
      • Non-whites

(Source: Pew Research Internet Project, Social Media Update 2013 – December 2013)

  • How consumers are exposed to online media:
    • 100% of users see/hear content or messages instantly
    • Location is about equally divided between in-home/out-of-home
      • 50% are exposed to the Internet in their own home
      • 01% are exposed in someone else’s home
      • 49% are exposed away from home

(Source: Media Dynamics Intermedia Dimensions 2014 – Internet exposure = average daily online session)

  • Digital media exposure close to the point of purchase is minimal:
    • Internet via computer
      • 12% reached 90 minutes prior to shopping
      • 9% reached 60 minutes prior to shopping
      • 4% reached 30 minutes prior to shopping
    • Mobile internet/apps
      • 10% reached 90 minutes prior to shopping
      • 8% reached 60 minutes prior to shopping
      • 4% reached 30 minutes prior to shopping
    • Social Networks
      • 6% reached 90 minutes prior to shopping
      • 5% reached 60 minutes prior to shopping
      • 2% reached 30 minutes prior to shopping

(Source: Katz Radio Group MBI USA TouchPoints 2013 (Internet excludes email, includes Internet usage via PC, mobile, tablet and eReader)

Advertising

With growing online populations and time spent with digital media, marketers are diverting more of their ad budgets to online, but U.S. consumers aren’t as convinced as the advertisers that Internet ads are worthwhile. 

  • Diverging opinions between Consumers / Marketers include:
    • TV Commercials are more effective than online advertising – 66% / 49%
    • Web banner ads do not work – 54% / 33%
  • Other attitudinal differences between Consumers / Marketers:
    • Annoying – 68% / 47%
    • Distracting – 51% / 44%
    • All over the place – 46% /50%
    • Invasive – 38% / 36%
    • Creepy – 16% / 11%
    • Eye-Catching – 14% / 21%
    • Clever – 10% / 22%
    • Persuasive – 7% / 10%
    • Evil – 6% / 3%

(Source: Adobe/Edelman Berland, June 2013 - in Marketing Charts Debrief Q3 2014)

  • Adult consumers are more likely to ignore advertising online than ignore traditional media ads:
    • 82% ignore any online advertising (net)
    • 73% ignore online banner ads
    • 62% ignore online social media ads
    • 59% ignore online search engine ads
    • 37% ignore TV ads
    • 36% ignore radio ads
    • 35% ignore newspaper ads
  • Consumers in the 18-34 and 35-44 age groups are even more likely to ignore ads on both digital and traditional media than the 18+ average; those 55+ are less likely; and 45-54’s are just about on par

(Source: Goo Technologies/Harris Interactive in Marketing Charts Debrief Q3 2014)

  • While many digital media users are advertising adverse compared to traditional media users, they are likely to utilize devices and online sources – including advertising – to help plan purchases and compare prices among retailers.

  • Digital advertising revenue is growing, but has not kept pace with consumer use:
    • Internet ad revenue climbed to $42.8B in 2013, up from $36.6B in 2012
      • Search revenue was $18.4B in 2013, up from $16.9B in 2012
      • Display revenue totaled $12.8B, up from $12B in 2012
      • Digital video (a component of display-related advertising) brought in $2.8B in 2013, vs $2.3B in 2012
      • Mobile generated $7.1B in 2013, up from $3.4B in 2012

    (Source: PwC Global Entertainment and Media Outlook 2014-2018)

  • Disparity between time spent with digital media versus share of ad spending
    • Advertisers spent 22.5% of dollars on Internet ads (PC) vs. 13.5% of media time spent online
    • Mobile garnered 1.7% of ad dollars against a 4.5% share of media time

(Source: Magna Global, 2014)

  • Internet advertising represented 25.6% of total media spending in 2013

(Source: ZenithOptimedia, 2013)

  • U.S. advertisers invest approximately $0.12 per U.S. adult hour spent with the Internet, $0.07 on mobile (non-voice)
    • Disproportionately low volume on digital compared to print media (magazines, newspaper)
    • Spending allocations may be impacted to some degree by lack of reliable data to measure audiences, ROI

(Source: Marketing Charts Debrief, Q3 2014)

For additional information/insights on Digital (Internet/Mobile/Social Media)

IAB  (Interactive Advertising Bureau)
http://www.iab.net

Borrell Associates, Inc.
https://www.borrellassociates.com

comScore, Inc.
http://www.comscore.com

eMarketer
http://www.emarketer.com

Nielsen
http://www.nielsen.com

Pew Research Internet Project
http://www.pewinternet.org