I recently published a report on The European eCommerce Landscape; it shows that more than two-thirds of European online consumers are shopping online, but there are big differences among the different countries. The top categories bought online are travel, clothing and accessories, leisure and entertainment, and consumer electronics. Forrester’s European Technographics® data also reveals that European consumers increasingly prefer the Internet to high-street shops for purchases of music, computer software, event tickets, and videos:
In recent years, the Internet has become the leading channel for media products. In 2012, more European online consumers bought videos/DVDs, music, event tickets, and computer software online than offline. These online media purchases fall into two categories:
1. Digital (sold direct as a download).
2. Physical (a product that an Internet retailer delivers).
If a picture is worth a thousand words, what is the value of 16 billion pictures? According to Instagram, whose 130 million active users had shared this number of photos as of June 2013, the answer is “priceless.” Individuals’ enthusiasm for capturing and sharing photos shapes our media consumption as much as it does our co-creative potential; with the launch of its video capability, Instagram’s platform may become entwined with our social futures.
Online photo and video sharing continues to gain momentum as an emerging method of communication. Internationally, Instagram plays the role of news channel by turning local perspectives into global awareness. In fact, the role of media-sharing sharing technology is so significant that the Chicago Sun Times Newspaper laid off all full-time photographers, including a Pulitzer Prize winner, with the intention of moving toward more online video provision.
We find comfort in the familiar — and when it comes to our technology preferences, it's no different. In a recent report by my colleague Michael O'Grady he explored the key decision-making factors that drive tablet adoption among consumers. While shopper demographics and needs precipitate tablet purchases in a variety of ways, ultimate brand selection depends, perhaps, on even subtler characteristics. Certainly, there are those memorable advertising campaigns, such as the recent Windows 8 commercial that parodies Apple iPads, which influence our perception of tablet brands. However, less obvious factors such as previous technology ownership and operating system familiarity may direct our tablet purchasing behavior.
Forrester’s Consumer Technographics® data reveals that consumers tend to adopt tablet devices that run on the same operating system as their smartphone. Specifically, we find that US online consumers owning Android, iOS, and Windows smartphones seek out consistent operating systems on their tablet:
We finally have sunny weather here in the Netherlands -- and for me, and many of my friends and colleagues, that means it's time to prepare for our summer holidays! Will it be a family vacation close to home this year, or should we play safe and opt for a sunny getaway to Southern Europe? While collectively deciding on a destination for the family (and sometimes the extended family, too) may demand caution and compromise, the act of making travel reservations has never been easier. With hospitality companies and travel agencies moving from online to mobile portals, we have the potential to research, book, change, and enhance travel arrangements on our mobile phones at any moment – and most consumers take advantage of this.
In fact, US consumers recently selected Expedia's Hotels & Flights application as the People's Voice Travel App in the 17th Annual Webby Awards. Available for free download in nearly 20 different languages, Expedia's Hotels & Flights app serves travelers globally. Forrester’s Consumer Technographics® data reveals how consumers around the world engage with travel applications. While the trend is evident among US online adults, metropolitan Asian online adults have shown even greater uptake of mobile travel apps:
Three years ago, Stanford Communications Professor Emeritus Donald F. Roberts believed that American youth had hit a ceiling on media use, as there simply weren’t enough hours in the day to increase the amount of time children were spending on media. He was astounded to see that time spent on media consumption did in fact grow, as young individuals began consuming heavily across multiple devices at the same time. And the numbers have continued to increase since: More than 80% of US online consumers ages 12 to 17 multitask online while watching TV.
Multitasking behavior among this demographic has changed not only in terms of the total number of hours but also in terms of the devices used. Forrester’s Consumer Technographics® data shows that in 2011, young consumers primarily went online via desktop or laptop computers while watching TV, while now they prefer to use more portable devices for multitasking activity:
Recently, I received a visit at home from a religious organization, which handed me two of its publications. As I believe that every religion has some wisdom to share, I read both magazines. What really struck me was the cross-media approach of the magazines; many articles referred to a video or website, and QR codes were placed throughout. Reading this magazine, I thought back to my recent trip to the US, where I also saw many QR codes: on advertising in the subway, in stores, in magazines. However, I didn't see anyone reading those codes. Thinking about this a bit longer, I couldn’t think of any occasion when I had observed someone using a QR code.
With that in mind, I had a look at Forrester’s Consumer Technographics® 2012 surveys for both Europe and the US to understand the uptake of QR codes by the general online audience. I found that about 8% of US online adults with a mobile phone have used QR/2D bar codes in the past month — up from only 1% in 2010 and 5% in 2011. Uptake doesn't really show huge differences by age, interestingly enough, but in both the US and Europe, men are more likely to use them than women.
The Forrester Research Mobile Commerce Forecast, 2012 To 2017 (US) indicates that nearly 40% of US mobile phone owners will become mobile phone shoppers by 2017. While this statistic sounds impressive, it means that the majority of consumers will be reluctant to purchase products on their mobile phones. Why aren’t all customers attracted to the unprecedented convenience of anywhere, anytime mobile shopping?
Forrester’s Consumer Technographics® data shows that while consumers use the mobile channel to research competitive product pricing while they’re in a store, they often prefer to purchase their desired product off the shelf, even if the physical item in front of them is not the cheapest option. Consumers are driven by convenience, sometimes at the expense of price:
“How can you reinvent your brand to appeal to younger consumers?” This is the million-dollar question, and the contestant sitting in the hot seat is you. But don’t panic; why not use a lifeline? Ask the audience! That was the approach car manufacturer Buick recently took when designing the 2013 Encore luxury model.
Striving to portray a more fun, contemporary side of the established auto brand and win loyalty among younger consumers, Buick promoted its "Pinterest to Dashboard" contest by calling on participants to create Pinterest boards that spoke to personal styles and passions. The Buick design team selected a winning collection to become the inspiration for the interior and exterior designs of the automobile. While this new look is not yet available on the market, Buick managed to connect with younger consumers in an exciting and relevant way. Through Pinterest, the company engaged 10 extremely influential bloggers (the winner of the competition has nearly 4 million Pinterest followers), dozens of lifestyle editors from media and publication companies, and millions of Pinterest users whose online responses indicated the winning pinboard.
Forrester’s Consumer Technographics® data suggests that Buick certainly chose the right platform to reach its desired market. Launched only three years ago, Pinterest is currently the third-largest social media platform in the US behind Facebook and Twitter. Of those 5.5 million US online adults who use Pinterest to research products for purchase, 65% are younger than 35 and 33% have an average household income of more than $100,000.
I am delighted to announce that for the first time, our annual US consumers and technology benchmark report now has a European counterpart: "The State Of Consumers And Technology: Benchmark 2012, Europe." This report is a graphical analysis of a range of topics about consumers and technology and serves as a benchmark for understanding how consumers change their technology behaviors over time. The report, based on one of our European Technographics® surveys, covers a wide range of topics, such as online activities, device ownership — including penetration data and forecasts for smartphones and tablets — media consumption, retail, social media, and a deep dive on mobile. For Europe, we analyze our findings for five countries: France, Germany, Italy, Spain, and the UK.
I recently completed James L. McQuivey's Digital Disruption, which is well worth the read if you have not yet gotten your hands on a copy. The book analyzes factors that allow for the emergence of digital disruptors — individuals who are pushing the envelope of product efficiency by harnessing available digital capabilities. In the book, James mentions that most digital disruptors are under age 35 because these individuals were “the first to grow up in a consumer economy where free things were not simply promotional tools . . . [they] internalized the idea of free from the consumer side, which led to the kinds of rapid digital adoption curves that run through the body of digital disruption like arterial supply lines.”
This is an intriguing point because it hints at young consumers’ evolving expectations of free tools and content. For the upcoming generation, the capacity for digital productivity and entertainment free of charge is less of a privilege and more of a norm. Today, consumers can get what they want quickly and cheaply; therefore, they expect that their needs will be met faster and more frequently than ever before.
This idea is particularly relevant when it comes to mobile interaction. The overwhelming majority of consumers say they only access mobile application content for free. Analysis of Forrester’s Consumer Technographics® data reflects this sentiment: While some consumers state they may pay a one-time download fee for gaming or music apps, most would exclusively choose free media: