Australians typically own nearly five online devices and spend more than three hours a day online for personal use, according to a new report by global market researcher TNS.
TNS shared key insights from its ‘Connected Life’ report at the Digital Next Australia 2014 (DNA://14) conference in Sydney and Melbourne this week. The report is the world’s largest study of digital attitudes and behaviours across 50 countries.
The 10 key insights from TNS’ ‘Connected Life’ report
1. Australia is one of the world’s most connected countries. On average Australians own 4.8 devices and spend 3.3 hours a day online on personal interests (eg. browsing, shopping, entertainment).
2. Connected home. 19% of consumers report they are connecting mobile devices to other devices in the home with another 28% expressing interest in using this technology in the next 12 months. This means a potential 47% market penetration in 2015.
3. Connected car and self. Similarly in cars, 16% of consumers report usage of in-car connectivity while another 18% express interest in future use. For smart or ‘quantified self’ devices that monitor biometrics, 18% report current usage with interest from a further 17%.
4. Online wins over TV. Australians spend an average of 3.3 hours online for personal use as compared to 2.2 hours watching TV. When you consider multi-screening (eg. watching TV while using another device), only 53% of TV time is undivided. Still TV is a viable channel during specific times of the day as below.
5. Time of day dictates the channel. Despite considerable channel fragmentation, consumers are showing signs of predictability at certain times of the day. For example, one third (31%) go online first thing in the morning, while TV is the more popular channel over dinner (36%).
6. Smartphone penetration as high as laptops. Smartphones grew 5% from last year to 75% which for the first time places the smartphone in line with laptop penetration. Smartphone penetration is highest among younger consumers yet interestingly as high as 60% amongst those aged 50+.
7. Tablets hit mainstream status in just four years. Tablets grew 16% from last year to 46% placing tablets firmly in the mainstream; this is considerable growth given tablets have only been in market since 2010. Additionally, tablets achieved at least 40% penetration in all age groups making this device an important channel.
8. The connected pathway to purchase. ‘Showrooming’, the act of evaluating products in store and later making a purchase online, has levelled off at just over 40%. However, a deeper look shows online and offline experiences melding into a complex dance. On average, there are seven touch-points that exert influence (e.g. seeing an advertisement, reading consumer reviews, evaluating competing products, looking for offers) yet this still often leads to an in-store purchase – a process called ‘web-rooming’.
9. Broadcast is out; engagement is in. The demand for more media, more often is limitless. In this new hyper-connected world, people are consuming more advertising messages than ever before but with the expectation that brands know them and their needs.
10. Micro-segmentation is essential. Media and device fragmentation means there are a wealth of potential ways to reach people. Understanding these patterns allows the targeting of individuals and groups to be far more precise and ultimately delivers against both long and short term marketing objectives with greater accuracy.
TNS Australia executive director Alistair Leathwood said with tremendous growth and complexity of the digital environment, marketers would experience both challenges and opportunities.
“We should be marketing by occasions, needs, attitudes and the various mindsets for different media, reaching customers through specific channels at specific times of the day,” Leathwood said.
Other speakers at the Digital Next Australia 2014 conference included Burston-Marsteller chief operating officer Margaret Key, GroupM’s Xaxis Australia general manager Esther Carlsen and Y&R Group chief digital officer Rod Hudson.