As some of you might know, I'm quite an active twitterer. Earlier this month, there was a lot of discussion on Twitter about how unique we all were. Why? Because only a very small percentage of people actually tweet regularly. Forrester's Technographics® data shows that only 11% of US online consumers tweet monthly, while more than 84% say that they never tweet.
So who are these “tweeps,” and why are they so attractive to marketers? As one would assume, people who tweet monthly or more display many characteristics of early adopters: They are more educated, more likely to own a smartphone, more likely to be male, and more likely to have a higher income.
What really makes them unique, and at the same time very interesting for marketers, are their attitudes:
Recently, deal-of-the-day Web site Groupon got a lot of attention because of Google’s interest in its business. We understand that there are a few attractive pieces to the Groupon story — it’s theoretically a very lucrative business model. My colleague Sucharita Mulpuru commented on this at the end of November with a post highlighting the business opportunities of deal-of-the-day sites. What I was interested in was the customer side: Who is actually using these sites?
Our Technographics® data shows that the majority of US online consumers aren’t familiar with deal-of-the-day sites like Groupon or Living Social, and another 25% haven't used them yet.
Looking at these numbers, you could say that there's quite some opportunity for growth. However, the current users have quite a unique profile: The 3% of US consumers who frequently use deal-of-the-day sites have a lot of money to spend (about half of them report having an average household income of $100K or more), and they expect to spend more money online this year than last year. They are twice as likely to be influenced by what's hot and what's not, two-thirds are willing to try new things, and 62% agree that they often change their mind about which brand to buy after doing some research — making them the ideal target audience for deal-of-the-day sites.
Amidst all the craziness that the end of the year can bring, it’s always refreshing to take time out from the madness and enjoy something a little more light-hearted. So, in reflecting on the mixed bag of craziness and joy that is the holidays, we’re dedicating our holiday blog to market researchers everywhere. Hope you are enjoying this holiday season with some quality moments with your family and friends.
We present to you: eight ways market research feels like the holiday season all year long:
Our post last week on consumers’ reported TV and Internet consumption has attracted a lot of attention.[i] The data behind the annual report we published on the topic is fascinating in the trends it reveals on how consumers perceive their interactions with media outlets.[ii] While this report is dedicated to understanding consumers’ changing online and mobile behaviors, the data behind this report also lends itself to a conversation centering around the changing landscape of consumers’ media behaviors.
It’s the time of year again, in which we tend to look back at what has been, and look forward to what will happen. Looking at this from a professional angle, 2010 was a very interesting year for the industry: research vendors bounced back from the recession, there was an increased focus on added value, and we saw a lot of innovation happening. In our report Predictions 2011: What Will Happen In Market Research, my team and I have identified a number of trends that we expect to shape market research in 2011.
Organization, technology, and social are defining the research agenda in 2011. In fact, in 2011 market researchers need to embrace social media as an information source, recognize technology as a driver of change while understanding how to implement it effectively, and continue to identify and integrate innovative methodologies to prepare for the future ahead. This will drive, for example, the following trends:
Forrester’s Technographics® shows that online European consumers have lost their trust in traditional media as an information source. A low 30% of online Europeans state that they trust the TV as an information source. The traditional media that Europeans see as most trustworthy are radio and newspapers. About one-third agree that they trust newspapers as an information source. Funnily enough, this number varies significantly across European countries: 45% of French Internet users trust newspapers as an information source — a number that is almost three times as high as the 16% quoted by their UK counterparts!
In fact, consumers trust consumer reviews and price comparison Web sites more than manufacturers' Web sites. But what does this trust mean? How influential are consumer reviews in the purchasing process? About one in 10 online consumers takes consumer reviews specifically into consideration when making a major purchase. Information sources that influence them most in the purchasing process are going to the shop (34%), talking with family and friends (24%), and the retailer’s Web site (13%). And although we see some differences in the percentages reported by country, these top three are the same everywhere.
There was a lot of buzz last week about Procter & Gamble’s decision to move spend away from TV soaps and daytime dramas and toward digital channels. And our most recent report (our annual look at consumers' online behaviors), published today, supports this trend. For the first year ever, the average time US consumers report spending online is the same that they report spending watching offline TV. While Gen Yers have been spending more time online than watching TV offline for a few years now, this is the first year for Gen Xers. And Boomers now report spending equal time for both. Of course, Seniors Boomers still report spending most of their media time offline.
The data we present in this most recent Technographics® report is self-reported, so the metrics aren’t the same as those you’d see from a Nielsen or comScore. But, the data tells a very important story that is coming directly from the mouths of consumers: They now see themselves splitting the time they spend with offline and online media at least equally. The other interesting piece to this media use puzzle is that, looking over time, this change hasn’t come as a result of a drastic decrease in the time consumers are spending with their TVs. Rather, the change is due to the explosive growth in the time consumers are spending online.
Location-based social networks (LBSNs), apps that are downloaded on a mobile phone, offer organizations a possibility of right-time, right-place marketing by connecting people and nearby points of sale with geotargeted media. Forrester's Technographics® data shows that only 4% of US online adults have ever used location-based social networks, such as FourSquare and Brightkite, on their mobile phones, with only 1% using them more than once a week. Although the uptake is limited to a small group, this doesn't mean that LBSNs are not useful.
Looking at the profile of location-based app users, we see that they are:
Influential.Geolocation users are 38% more likely than the average US online adult to say that friends and family ask their opinions before making a purchase decision.
An interesting target group.They are typically young adult males with college degrees.
Heavy mobile researchers.They are also far more likely to search for information about businesses and products, as well as read customer ratings/reviews of products and services
Many people consume content from multiple media channels simultaneously (see for example this recent post on European youth), but does the content they’re looking at actually overlap? We looked into our Technographics® data to see what consumers are doing on their computers while watching a TV show and we found that the top four activities have nothing to do with what they are watching.
Because consumers are using their PC for activities that require more attention than watching TV – which is mostly a passive activity — it’s questionable how much of the TV content they are even registering. Almost one-third of consumers are playing games on their computers while watching television, and one-quarter are doing schoolwork. Has the TV just become background noise?
We also see that 44% of consumers are communicating with friends via social networks, chat, and email on topics that are not related to the show. So consumers are interested in content online, but not necessarily in parallel with the broadcasting of a show. Market researchers need to develop a research plan that helps companies understand how and when consumers watch TV, and when they are checking out online content related to the company's products or brand, in order to build a marketing strategy that reinforces the message across channels.