Last week, I had the pleasure of attending the Insight Innovation Exchange conference in Philadelphia. There were many vendors that offered solutions to many common challenges that market researchers face. One common theme I noticed was the challenge for market researchers to make sense of big data. Yes, big data has become something of a buzzword, but consumers are creating a lot more data and market researchers can thrive if they embrace it.
For some time now, Forrester has been writing about the importance of incorporating behavioral tracking insights to marketer researchers’ research mix. Don’t get me wrong — survey research is and will continue to be incredibly important for companies to gain insights on consumers. A survey can capture a variety of consumer behaviors, sentiments, and attitudes. In one survey, marketers can assess their market share and find out the profile of their customers and what they want. And survey research can help provide insight into the “why” — the reasoning behind the choices that consumers make — something that is not possible with behavioral data. However, survey research cannot detail granular activities due to respondent recall. Enter big data, and with it many possibilities for behavioral tracking. Yes, this is nothing new for customer intelligence professionals, who analyze customer transactions, online web tracking, and other consumer behaviors. But by combining survey and behavioral data, marketers get the best of both worlds: They get consumer profiles and psychographics, brand health metrics, and a detailed record of the actions that those consumers actually do.
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:
With almost 80% of homes in the EU-7 (France, Germany, Italy, Netherlands, Spain, Sweden, and UK) having online access in 2013, Internet connections are a standard household component today in Western Europe. And as users demand faster connections to consume rich media content across multiple devices, broadband connectivity is quickly becoming the norm. The Forrester Research Online Access Forecast — Broadband, 2012 To 2017 (EU-7) shows that 72% of all EU-7 households had a DSL, cable, or fiber broadband subscription in 2012, well above the global average. But not all European countries show the same level of adoption. Within this group of seven, we can split the countries into three distinct groups of relative broadband development and adoption:
Advanced adopters. The Netherlands and Sweden lead the pack in terms of both broadband penetration and the share of broadband users opting for high-speed connections. Early and robust deployment of fiber-to-the-home (FTTH) networks and strong cable offerings will encourage most consumers to shift away from slower connections, giving cable and fiber more than a 60% share of the home broadband market by 2017. Sweden in particular has one of the world’s strongest high-speed Internet markets today, with more than a quarter of all households enjoying a fiber connection.
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:
Last week, I had the pleasure of attending the Future of Consumer Intelligence conference in San Francisco. This week, when I reflect back on the conference topics and energy, I realize how fitting San Francisco was as the location of the event: Much like the essence of the city itself, the conference speakers and attendees showed ingenuity and optimism around the challenges and opportunities that the market research industry faces. I also thought about the same conference that I attended last May (IIR Market Research Technology Event 2012) and the key themes that I gathered and blogged about: Big data is here, integrating survey and behavioral data is powerful, and behavioral economics has huge implications for market research. For me, the big difference between last year’s conference and this year’s is this: A year ago, market insight professionals were sizing up their challenges with the future of market research. This year, they are taking the bull by the horns and embracing both the challenges and opportunities that technology in market research presents. Here are the main themes I gathered from the event:
The drivers behind this take-off of mobile ad spending are:
Increased device ownership, particularly of tablets. Smartphone installed base growth in 2012 was more than 35%, while tablet installed base growth exceeded 120%. By 2016, tablet sales will overtake the sales of desktop and laptop PCs.
The intensity of online tablet use. Despite tablets representing less than 30% of the mobile device market in the US, they represent more than 40% of total mobile page views. In addition, the majority of tablet users watch video on their tablet, compared with about a third of smartphone users.
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.
I am delighted to announce that for the first time, our annual US and European consumers and technology benchmark reports have a Chinese counterpart: The State Of Consumers And Technology: Benchmark 2012, China. 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 adoption, usage, and behavior over time. The report, based on one of our Asia Pacific 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 this report, we divided the metropolitan Chinese online consumers into three distinct groups based on their technology optimism and economic power:
Early adopters are high-income individuals who are also technology optimists — people who see technology as a positive force in their lives.
Mainstream users are either high-income technology pessimists or low-income technology optimists.
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: