Tag Archives: study

Neuro study finds second-screen use boosts viewer engagement

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In the ultimate pursuit to discover the impact of social media interaction on viewers’ engagement, MEC and Seven recently united to undertake a neuroscience study with Neuro-Insight, with the study revealing that when TV viewers interacted with social media while watching a program, there was a 9% increase in program engagement.

Participants were monitored though hidden cameras as they examined a live broadcast of the Seven Network’s reality show X-Factor late 2012, with the results flying in the face of the theory that second-screen usage during TV viewing negatively impacts audience engagement.

The study is proving to be good news for the value of TV sponsorships and social media extensions according to Kurt Burnette, Seven Network’s chief sales and digital officer.

“Seven Network can use these insights to improve our clients’ communications effectiveness. Sponsors that are fully integrated in a TV show can capitalise on the higher intensity of engagement and enjoy better results,” he says.

Peter Pynta, director of marketing at Neuro-Insight, added: “Never before has a study been done that measures neurological responses to live TV viewing, at such a granular level, with such a robust number of interactions.”

With a range of mind behaviour tracked, including ‘reset moments’ where viewers returned to an engagement level higher than before, a cumulative increase in engagement over the period of 26%, the study also found that second-screen interaction positively impacts Detailed Memory Encoding – the ability to remember specific elements of the broadcast.

MEC chief strategy officer James Hier reiterates the good news for advertisers: “This study teaches us that advertising messages should capitalise on viewers’ heightened receptivity to details, and that we should optimise the type and timing of advertising messages within a TV program”.

 

App-and-mortar economy: Retail apps usage surges 525%

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Forget bricks and clicks, as the world becomes more mobile retailers are looking at the reality of an app-and-mortar economy, according to app services firm Flurry.

The US based measurement specialist found time spent in retailer apps grew by 525% during December 2011 and December 2012, in a study of more than 1,800 iOS and Android shopping apps.

Retailer apps indexed well above the general shopping category, which was broken down into five sub-categories: retailer apps, price comparison, purchase assistant, online marketplace and daily deals. Together, these five categories experienced 274% growth throughout the year.

The opportunity for retailers to extend their relationship with consumers outside the store has never been greater, Simon Khalaf of Flurry writes. “In the new mobile app economy, devices are always with you, always on and always connected… In the new app-and-mortar economy, they serve as virtual, portable show rooms that consumers can use to shop anytime, anywhere.”

This growth in retail apps exceeds overall app growth, which came in at 132% over the course of 2012, showing the uptake of retail outpacing general app growth. Time spent in price comparison and purchase assistant apps has grown significantly, up by 247% and 228% respectively. However online marketplace and daily deals apps did not grow as quickly, with 178% and 126% increases respectively.

Retailers saw the greatest increase in share of time spent, which grew from 15% of time spent by consumers in shopping apps in 2011 to 27% by the end of 2012. The enormous growth in retailer app share has come largely at the expense of daily deals, down in share from 20% to 13%, and online marketplace apps, which contracted from 25% to 20%.

This suggests that retailers are beginning to better respond to the tectonic shift created by the collision of online- meeting offline-shopping through mobile apps, Khalaf says

Retailers need to re-examine the consumer relationship from the ground up and through the lens of mobile-first, Khalaf concludes.

Tablets to reach 70% by 2017, smaller set to dominate

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Tablet penetration is forecast to hit 70% by 2017 with smaller models set to dominate, new research from Telsyte shows.

The technology analysts found more than 5 million people in Australia were using tablets by the end of last year, with Apple making up around 70% of the 2.4 million units sold throughout the year.

The arrival of the iPad mini in November 2012 buoyed Apple’s sales, Telsyte says, which were being eroded by the flood of cheaper Android products hitting the market. Samsung claimed 9% of sales across the year, while the next closest competitor, Asus, accounted for 8% of sales.

The smaller form factor appears to be where the future of the market lies, with 7 to 9-inch tablets forecast to exceed sales of 10-inch devices by 2014, and a decline in cellular-enabled units expected as the home emerges as the main location of use.

“Low cost and smaller form factor media tablets, typically without cellular connectivity, are shaping the market,” Telsyte research director, Foad Fadaghi, says.

By 2013 Telsyte forecasts tablet penetration to hit 50% of homes, supporting figures in Nielsen’s ‘Australian Connected Consumers‘ report, and by 2017 prevalence of the device is expected to reach a level comparable to today’s smartphone user base.

Despite a slow start, Windows 8 tablets are expected to steadily grow in popularity, particularly with the business market, younger users and consumers looking to replace aging laptops.

The study also found tablet related ecommerce is booming, with half of all tablet users having purchased a physical product or service via their devices in 2012. Some categories are approaching similar rates of ecommerce uptake as on computers, such as event tickets and travel related purchases. Telsyte expects this trend to continue as more shopping and catalogue applications appear in 2013.

“The explosion in commercial transactions on media tablets highlights the importance of a multi-screen strategy for digital advertisers and retailers,” Fadaghi says.

Telsyte’s ‘Australian Media Tablet Study 2013-17’ surveyed a representative sample of 1000 Australians.

Customer satisfaction awards: Aldi pips big two, NAB tops banks, Virgin topples Qantas

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In 2012 NAB was the most customer-centric consumer bank, Aldi the best supermarket, Myer the best department store and Virgin Australia the best domestic airline, according to Roy Morgan Research’s ‘Customer Satisfaction Awards’.

Announced last night at a gala dinner in Melbourne, the awards honoured 37 businesses measured as having the highest customer satisfaction levels for 2012, based on its single source data.

Michele Levine, CEO of Roy Morgan Research, congratulated not only the winners but all successful businesses, large and small, that consistently strive to satisfy their customers.

Some of the winners received an award for the second consecutive year, including The Good Guys, Internode, Michel’s Patisserie, Aldi, Virgin Mobile, Crowne Plaza and JB Hi-Fi.

Home Hardware pipped Bunnings for the Hardware Store of the Year title, ActewAGL followed up success in 2011 for best gas provider to take a clean sweep of the utilities categories, and Virgin Mobile won carrier of the year.

NAB took out the Major Bank award for most satisfied customers, over last year’s winner ANZ, while Westpac maintained its success among Business customers.

Department Store of the Year was taken out by Myer, de-throning last year’s winner David Jones while Best & Less lived up to its name winning best Discount Department Store for 2012.

Apple’s iPhone retained the number one spot for Mobile Phone Handset Customer Satisfaction but looks set to be challenged by Samsung in 2013, according to the research.

The full list of winners:

  • Car Manufacturer of the Year: Mercedes-Benz
  • Bank of the Year: Victoria Teachers Mutual Bank
  • Building Society of the Year: Newcastle Permanent Building Society
  • Credit Union of the Year: Police & Nurses (WA)
  • General Insurer of the Year: Defence Service Homes Insurance
  • Major Bank of the Year: NAB
  • Private Health Insurer of the Year: CBHS
  • Risk & Life Insurer of the Year: Real Insurance
  • Business Bank of the Year: Bendigo Bank
  • Business Insurer of the Year: WFI
  • Business Superannuation Manager of the Year: Cbus
  • Major Business Bank of the Year: Westpac
  • Quick Service Restaurants of the Year: Fasta Pasta
  • Auto Store of the Year: Supercheap Auto
  • Chemist / Pharmacy of the Year: Guardian
  • Clothing Store of the Year: Suzanne Grae
  • Coffee Shop of the Year: Michel’s Patisserie
  • Department Store of the Year: Myer
  • Discount Department Store of the Year: Best & Less
  • Discount Variety Store of the Year: The Reject Shop
  • Furniture / Electrical Store of the Year: The Good Guys
  • Hardware Store of the Year: Home Hardware
  • Music / Book Store of the Year: JB Hi-Fi
  • Shoe Store of the Year: Williams
  • Sports Store of the Year: Sportspower
  • Industry Superannuation Fund of the Year: ESS Super
  • Retail Superannuation Fund of the Year: Colonial First State
  • Supermarket of the Year: Aldi
  • Handset Provider of the Year:   Apple iPhone
  • Home Phone Provider of the Year: iiNet
  • Home Internet Service Provider of the Year: Internode
  • Mobile Phone Service Provider of the Year: Virgin Mobile
  • Domestic Airline of the Year: Virgin Australia
  • Hotel And Resort of the Year: Crowne Plaza
  • International Airline of the Year: Singapore Airlines
  • Electricity of the Year:   actewAGL
  • Gas of the Year: actewAGL

Roy Morgan Research collected satisfaction ratings through its 2012 ‘Consumer Single Source’ survey of over 50,000 Australians and its ‘Business Single Source’ survey of 22,000 decision makers.

Desktop cannibalised: 40% of shopping searches now come from mobile

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Around 40% of shopping-related Google searches now come from smartphones or tablets, a study by the search giant has found.

Looking into the habits of smartphone users, Google found that mobile and tablet search queries have grown by 138% since last year, reinforcing the shift from desktop to mobile being witnessed.

To illustrate how ingrained smartphones have become into users’ lives, Google looked at how the devices are used across the weekend in Australia, finding they’re in the average users hands as soon as they open their eyes, and one of the last things to leave them before the weekend ends.

On Saturday mornings, the devices are commonly used to check the weather (sometimes before getting out of bed), banking and booking travel. The afternoon and evening is the most common times for people to check sport scores, shopping and searching for food.

Australians check in on social networks throughout the weekend, but activity spikes at 10pm Saturday and 8pm Sunday. The impact of consumers having search in their pockets everywhere they go flows into face-to-face social settings also, with the phone often used to settle arguments on the spot, look up the definitions of new words, or cheat at the pub quiz.

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Travel research is a favourite pastime for tablet owners, with 63% researching travel on their device.

Head of mobile ads at Google Australia, Jason Pellegrino, says mobile isn’t just a box to tick off. “It affects the way you plan your whole campaign,” he says. “This is what advertisers and marketers need to get right this year. They have to prioritise multi-screen and build digital-led content and campaigns that work across all screens.”

 

New brands face uphill battle: two-thirds prefer familiarity

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Almost two-thirds of consumers prefer to buy products from familiar brands rather than switch to new brands, a global study has found, quantifying a common factor in the ‘new brand versus new brand extension’ decision process.

Nielsen’s ‘New Product Purchase Sentiment’ survey, which polled 29,000 internet users in 58 countries, found 60% of consumers prefer buying new lines from a known brand instead of an untested equivalent, supporting the argument for brand extensions.

Innovating on established brands that are already trusted by consumers can be a powerful strategy, says Rob Wengel, senior vice president of Nielsen Innovation Analytics.

“Companies spend millions of dollars on new product innovation, yet two out of every three new products will not be on the market within three years,” Wengel says. “Consumers are enthusiastic about adopting new product innovations but somewhat apprehensive about embracing new brands.”

Exactly half of online consumers globally are open to switching to new products, with people in North America, the Middle East, Europe and Africa more receptive to switching than those in Latin America.

Proof of concept and value make a difference when considering change with more than two-thirds (64%) saying they would consider value or store-brand options, while three in five (60%) prefer to wait until a new innovation has proven itself before trialling.

For some, economic factors play a role in trial decisions, with 45% reporting that challenging economic conditions make them less likely to try a new product. However, for others, innovation can command a price premium, with 39% indicating a willingness to pay more for a new product.

“In order for consumers to adopt new brands, marketers need to launch very strong awareness and trial-building campaigns, supported by a positive product experience,” Wengel adds.

A mix of word-of-mouth communication, traditional advertising, and internet activity is the most persuasive way to drive awareness of new products, according to the research, highlighting the importance of a mixed media approach.

While 77% of global respondents say word-of-mouth advice from family and friends is the most persuasive source of new product information, active internet searching (67%) and traditional television advertising (59%) also remain influential.

Globally, respondents say the internet is very or somewhat important when making a new product purchase decision for food and beverages (62%), personal hygiene categories (62%), personal health/ over-the-counter medicines (61%), and hair care categories (60%).

“Ensuring consumers are aware of the product and can find it on store shelves is just as critical as coming up with that winning new product idea,” Wengel concludes.

 

Mobile will take 50% of budget in 2017, but held back by skills gap: study

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Marketers will spend 50% of their budgets on mobile by 2017, but for the moment are hampered by their lack of understanding of the medium and difficulties in quantifying return on investment, according to Experian Marketing Services.

Only 4% of the 320 marketers involved in Experian’s mobile marketing study are regularly implementing mobile marketing activities, despite a widespread belief it will be one of the most important ways to communicate with customers in the future.

Head of research and consulting at Experian, Dave Audley, puts the slow uptake of mobile down to three key reasons: a skills gap in the industry, difficulty in demonstrating ROI and the tug of war for budgets between traditional and new channels.

“There’s some confusion and difficulty when it comes to budget allocation,” Audley says. “Marketers are finding its quite difficult to quantify return on investment by channel. Organisations are reluctant or not committing to investing in the [mobile] channel just yet until they fell confident that they can measure the return that they get.”

Mobile has also added another layer of the complexity to the tug of war for budget between traditional channels and new, Audley adds. “Rather than out with the old in and with the new, organisations are looking at retaining old channels; traditional offline channels are also becoming increasingly important.

“Finding the priority to put the focus that’s needed into making a successful mobile strategy come to life is quite a challenge.”

As a result, almost six in 10 are yet to test the waters with mobile, while 41% have created a strategy but haven’t started implementing it.

When asked to rate the importance of marketing channels, 53% of marketers said face-to-face communication was one of the top three most important channels. Email was rated by 50% of marketers as a top-three channel, and social media mentioned by 42% of marketers as a top three channel.

Early adopters of mobile report good results, the study found. The vast majority of respondents believed the various mobile techniques asked in the study to be effective, with mobile-optimised websites, m-commerce and MMS emerging as the most likely to be perceived as ‘highly effective’.

Email ranked down the list slightly, while custom apps were the most likely to be perceived as ineffective.

Search, display and video pre-roll were not asked as part of the study.

Perceived effectiveness of mobile techniques among marketers

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“In the next five years Experian predicts more than 50% of marketing budgets will be associated with mobile, particularly as traditional, above the line channels, such as TV and billboards become more interactive and entwined with mobile,” Audley predicts.

“Clever companies will integrate mobile with existing channels, without compromising other activity. Because mobile is cost effective, easy to implement and is nimble, it creates a dynamic platform where brands can create a two-way dialogue.”

 

Value trounces loyalty online as shoppers abandon Australian made

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Australian shoppers are more than willing to abandon local online operators for international sites in their search for value and speedy delivery, a new study by Ernst & Young confirmed.

The management consultants issued a warning to online retailers to get the basics right or continue to lose customers to overseas operators in a shopping climate where there is little loyalty to local businesses and consistent global pricing is increasingly expected.

While 57% say they support Australian sites, this is merely lip service, according to John Rolland customer leader, advisory, at Ernst & Young.

“While the idea of supporting Australian-based online stores is paid lip service, Australians are not automatically defaulting to shopping from domestic online sites.

“Online shoppers can be unforgiving. If you don’t have the basics right at the outset, people will abandon your site at the very first step — and you’ll have to work doubly hard to get them to come back.”

Competitive prices and fast, reliable delivery top the list of ‘must-haves’ for online shoppers, according to the survey of 625 Australians and additional insights drawn in from Quantum Market Research’s ‘AustraliaSCAN’ study.

If the site doesn’t deliver these basics, one in four shoppers will abandon the purchase immediately after their initial search for information.

There is also now a widespread understanding that the online world is a global marketplace, with 54% believing Australian retailers should offer the same prices as overseas.

“We now have a great deal more insight into how much things cost in global markets, so we’re less willing to put up with significant disparities in cost,” Rolland says.

“While the gap is beginning to close, we can’t continue to underestimate the importance of competitive prices and value to the Australian consumer. This is as relevant now given continued volatility and low consumer confidence as well as during good times.”

News Ltd’s technology editor, Jennifer Dudley-Nicholson, recently compared experiences buying a book online from local operators Dymocks and Angus & Robertson with global giant Amazon. The Australian sites were only able to deliver the not-obscure novel that Dudley-Nicholson was shopping for within a period of 5 to 21 days, while Amazon was able to deliver it in a few days for a cheaper price.

Rolland says the research confirms that while Australians felt the origin of where something was made or where the business was based was important, value for money always won out.

“Previously ‘Australian made’ would invoke an element of national pride, but it has a different transactional value now,” he said.

“When judging the reputation of a business, 47% of Australians considered value for money number one versus 24% who believe ‘Australian owned’ is most important.

However, Australian operators still have cards to play, with 66% of shoppers preferring to buy in store and the role and relevance of brand all-important.

“While clearly important, price is not the end game. Whether local or overseas, the successful sites will tick all the boxes when it came to the basics, but will also engage with consumers at an emotional and more personalised level,” Rolland concludes.

 

Fairfax outstreams News Ltd by 3 to 1, ninemsn leads news video market

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Fairfax Media is streaming more than three times the amount of videos as its rival News Limited is through its Australian sites, but Microsoft-owned ninemsn leads the market as the most prolific video site.

Led by smh.com.au, theage.com.au and brisbanetimes.com.au, Fairfax sites streamed 7.8 million videos in October on a unique audience (UA) of 1.8 million video streamers, outnumbering News’ combined 2.1 million on a UA of 0.6 million, according to Nielsen’s new VideoCensus tool.

Ninemsn’s various news websites claimed top spot in the news category, however, with a staggering 17.2 million streams and a unique audience of 1.7 million for the month. smh.com.au claimed second spot with 4.1 million streams and an audience of 1.1 million, while theage.com.au attracted 2.8 million streams and 0.6 million streamers, and brisbanetimes.com.au enticed 0.5 million streams and a 0.3 million audience.

News Ltd’s only site in the top 10 video streaming sites for the news category – news.com.au – ranked seventh with 0.9 million streams and an audience of 0.3 million.

The data marks the first public release of the research firm’s audience measurement figures for video content. Three in four online Australians now stream video online, contributing to almost 2 billion streams in October – an average of 165 videos per person.

Entertainment focussed sites dominated the landscape, reaching 92% of video streamers, to the benefit of Google and VEVO which came in as the top parent companies for number of streams. YouTube accounted for the bulk of activity throughout the month, with over 10.9 million Australians viewing more than 1.4 billion streams.

By comparison, sites in the news and information category reached 47% of all Australians viewing online video content, reaching an audience of 11.9 million and serving almost 2 billion steams.

In the overall rankings for individual sites, VEVO placed second to YouTube, Mi9 (ninemsn) placed third, Facebook placed fifth, ABC’s network ranked sixth and Yahoo!7 came in seventh.

CEO of Australia’s Interactive Advertising Bureau, Paul Fisher, says video advertising represents 10% of the Australian online display market and is growing at a rapid rate. “The IAB supports the introduction of online video specific audience data to help furnish the industry with audience consumption trends and information that agencies and clients can use to optimise their digital media spend.”

62% of Australian consumers don’t know what QR codes are

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Two in three Australian consumers remain unfamiliar with QR codes, the ‘hot potato’ of the mobile marketing industry, according to Econsultancy.

QR codes have been the topic of spirited debate in the industry for a while now, and the topic of many a post on Marketing, including some in support and others against.

“QR codes seem to invoke a general divide amongst marketers – you either love or hate them,” wrote Jake Hird, Econsultancy Australia’s director of research and education.

But despite the growth in their use, a factor mobile expert Joe Barber puts down to increased use in the US and Europe, Econsultancy found 62% of Australians don’t know what they are or how they work.

In a study of over 1000 people conducted in conjunction with research firm Toluna, ‘quick response’ codes were found to have disappointing awareness levels even among technology savvy groups.

Awareness of the square bar code graphics was highest among 18–34 year olds, at 51%, while it sat at 34% for 35–54 year olds and 17% for over 55 year olds. It was more prevalent among males at, 44%, compared to 35% among females.

“Despite a general enthusiasm amongst marketers for the mobile channel, it turns out that the majority of consumers seemingly don’t even know what a QR code is,” Hird says.

Among those who are familiar with the codes, only half had used them in the past three months, suggesting uptake after awareness is low.  Usage was not much higher among the more tech savvy younger or male audiences.

 

Retail future “overwhelmingly mobile” as m-commerce hits $5bn in Aus

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M-commerce sales are on track to surpass $5 billion in Australia this year, with one in three now transacting via mobile devices and even more using them as product-discovery tools.

The findings from online retail portal eBay and payments service PayPal forecast spend through mobile channels to hit $5.6 billion in 2012, compared with just $155 million in 2010. But the value of mobile devices to retail doesn’t stop there, according to Melani Ingrey of Nielsen, with new screens growing the role of online media during the purchase cycle.

Based on research conducted by Nielsen among 3200 people in October, the proportion of Australians transacting on mobile devices has seen strong growth over the past 18 months, up from 12% of online Australians in January 2011 to 32% today. Looking at smartphones and tablets in isolation, the smartphone is used more commonly with 25% of the population engaging in this activity compared to 16% who transact via tablets.

Similarly, the use of smartphones as a discovery device is more widespread at 47% than the use of tablets at 25%.

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The increase in access of mobile content is a valuable proposition for retailers as mobile devices provide a range of opportunities to support consumers’ discovery of what to buy and where to buy it from, not to mention facilitating purchases, Ingrey says: “Much of this growth has been driven by the ever increasing penetration of mobile devices across all demographics as well as strong attitudinal shifts.”

The study forecasts smartphone penetration to close the year at 64% of online Australians, up from 51% in 2011, and points to an increased appreciation of the convenience mcommerce provides.

Among those involved in shopping behaviour on their mobile devices, search remains the most common starting point of the discovery process. Two in three start the journey at this point, eclipsing emailers, a starting point for 29%, apps, for 26%, links on Facebook, for 24% and online ads, for 19%, as a trigger.

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All up, across both mobile devices and PCs, 95% of online Australians now use online media for their research or discovery, the study found. Those engaged in such behaviour are almost as likely to have completed the purchase in-store purchase (75% have done so), than online (71%).

The findings are contained in eBay-PayPal’s joint ‘Secure Insight’ report, which calls the last two years a turning point for Australian retail thanks to a trifecta of pressures: the strong Australian dollar, mobile phones and heightened competition from offshore.

It likens the change in the retail landscape currently occurring at the hands of technology to the birth of the shopping mall in the country – at Roselands in Sydney in 1964. However, rather than taking 50 years to develop, vice president of eBay Australia, Deborah Sharkey, predicts the industry will consolidate under a new omni-channel model within five years.

The future is “overwhelmingly mobile, and it’s increasingly multichannel, on any connected screen” Sharkey predicts.

 

Piss pots to picky palates: alcohol brands ‘premiumise’ Aussie tastes

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Alcohol brands have succeeded in boosting yield in the face of declining consumption by ‘premiumising’ Australian drinking tastes, according to a report.

Analysis from IBISWorld forecasts the shift from a beer drinking nation towards higher priced ciders, spirits and wines will continue to accelerate, fuelling a 20.5% increase in alcohol spend over the next five years.

“Once a nation of beer drinkers, beer consumption has declined by 15% over the past decade to now account for 37.1% of total alcohol consumption, while wine and spirits have grown in popularity to account for 25.3% and 17.9% of alcohol consumption respectively”, Karen Dobie, general manager of the business analyst’s Australian operation explains.

Spend on alcohol is forecast to reach $33.1 billion during the 2012-2013 financial year, despite consumption dropping to 9.8 litres per capita per year from a peak of 10.6 litres in 2006-07. By 2017-2018, spend is forecast to hit $39.9 billion.

The growing spend and increasing competition from European and US imports will see more Australian manufactures launch premium products in the coming years, Dobie predicts.

“Australia’s beer drinking palate is becoming more sophisticated, with a number of European style beers now being produced on our shores. Traditional full-strength lagers such as VB, Carlton Draught and Tooheys are losing market share in favour of cider and premium beer.”

Cider has grown to account for 7% of total alcohol consumption, and is forecast to hit 13% by 2017-2018, while craft and boutique beers have grown to account for 5% of total production.

In the wine segment, European styles such as Sangiovese, Tempranillo and Pino Grigio have seen strong growth as Australians fork out for more exotic blends. Australian brands, such as Jacob’s Creek, have also been actively investing in their brand to premiumise their offering.

“Australian wineries have responded to this trend by rebranding themselves as premium to keep up with the resurgence of Old World wines”, Dobie adds.

Ready-to-drink (RTD) beverages, which account for nearly 64% of spirits revenue, are also undergoing a makeover as producers develop new products to capitalise on changing preferences, such as RTD cocktails targeted at female drinkers.