digital pulse spring 2010

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Principals

Taking a measure

of Austalia’s digital pulse

Spring 2010

Pulse Check Spring 2010

About the study:

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At Principals,a growing number of our clients ask us to develop brand communications programs that come to life on the internet for the benefit of their customers, employees and shareholders. Yet we’ve found it difficult to find reliable local data that captures just what Australians are up to online. What devices they are using to access the web. What tasks and applications are their favourites. The extent to which they’re interacting regularly with brands online. And, perhaps most critically, the extent to which positive or negative online experiences affect their purchasing of brands.

So we’ve set out to answer these questions through a regular tracking study, the first wave of which has just been completed. On the 19th and 20th July, 2010, a nationally representative sample of 302 Australians completed our online questionnaire exploring their digital behaviour and attitudes. This first report provides preliminary insights into what Australians are choosing to engage with online – and confirms, beyond a doubt, that the internet is the most important brand building medium of our time.


Age

SampleThe representative of the Australian population

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Region Gender


The Questions we set outto answer

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Q. In what ways are Australians 06connecting with the internet?

Q. How deeply has the internet 12become a part of our everyday lives?

Q. What are Australians choosing 20to do online?

Q. How are people harnessing the 22internet in different ways ?

Q. How are Australians interacting 32with brands online?

Q. What are Australians buying online? 34

Q. What are some of the most 38surprising facts we’ve uncovered so far about Australians online?

In Summary 40

Page


Q. In what ways are Australians connecting with the internet?

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How have you accessed the internet in the past month?


How have you connected to the internet in the past month?Percent of total connections

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Brands of mobile device used to access the internet in the past month


Connection differences by age

A desktop computer at work or school

A homebased desktop computer

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A laptop A mobile phone


Q. How deeplyhas the internet become a part of ourdaily lives?

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Approximately how much time in the average week would you spend accessing the internet, including emailing, instant messaging and social networking?


Time spent online in the past month

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Time spent online in the past month

14-25 years % 26-55 years % 56 + years %Internet 93 Internet 90 Internet 84Television 57 Television 77 Television 78Cinema 38 Radio 41 Newspapers 49Game consoles 27 Newspapers 32 Radio 49Radio 23 Cinema 18 Cinema 13Magazines 18 Magazines 15 Magazines 12Newspapers 18 Game consoles 10 None of the above 7None of the above 5 None of the above 3 Game consoles 5


Q. Which of the following media would you describe as being difficult for you to personally live without?

14-25 years % 26-55 years % 56 + years %Internet 93 Internet 90 Internet 84Television 57 Television 77 Television 78Cinema 38 Radio 41 Newspapers 49Game consoles 27 Newspapers 32 Radio 49Radio 23 Cinema 18 Cinema 13Magazines 18 Magazines 15 Magazines 12Newspapers 18 Game consoles 10 None of the above 7None of the above 5 None of the above 3 Game consoles 5

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Newspapers

Cinema

Radio


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Internet

Magazines

Television

Game consoles like Xbox, Wii & Playstation

50-75%Browsing eBay 63%Networking with friends (Facebook, Myspace, etc) 54%

YouTubing 53%Reading email from brands 51%

MORE THAN 75% +Browsing the internet 96%Accessing personal email accounts 89%Internet banking 74%


Q. What are Australians choosing to do online?

25-49%Researching brands 45%SMS texting 43%Accessing work email accounts 39%Visiting online forums 34%Hunting for property 34%Watching catch-up TV 33%Job seeking 32%Requesting info from brands 31%Tagging friends in photos 31%Skyping 28%Gaming 27%Listening to podcasts 25%Opting in to receive brand information 25%Planning trips & holidays 25%

LESS THAN 25%Illegal downloading 23%Viewing branded films or ads 22%Selling on eBay 22%Entering brand competitions 21%Clicking on ads 16%Reading Twitter posts 16%Commenting positively about work 16%Commenting positively about a brand 16%Reading brand blogs 15%Writing blogs 15%Friending brands 14%Posting CVs 12%Using Cloud applications (Google etc) 11%Commenting negatively about work 10%Writing tweets 10%Business networking (LinkedIn, Plaxo etc) 9%Using GPS mobile apps 9%Using cameras on mobile devices 8%Dating 7%Commenting negatively about brands 7%Following brands on Twitter 6%Subscribing to and reading RSS feeds 5%Participated in webinars 5%

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Q. What are Australians choosing to do online?


Q. How are people harnessing the internet in different ways?

More or less

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14-25 year olds are significantly more likely than 25 pluses to...YouTube 77%Network with friends via Facebook, MySpace, etc 73%SMS text 68%Tag friends in photos 55%Participate in online forums 48%Watch catch-up TV 41%Watch branded movies or ads 39%Illegally download 38%Share positive work experiences online 34%Share negative work experiences online 25%Read Twitter feeds 23%Write Tweets 20%Use GPS mobile apps 20%

55 pluses are significantly less likely than under 55’s to...Share positive work experiences online 1%Friend brands 5%Comment positively about brands online 7%Job search 7%Tag friends in photos 8%Network with friends via Facebook, MySpace etc 34%YouTube 37%


significantly more likely than women to:Illegally download content 30%Click on ads 22%Use cloud applications (Google apps, etc) 16%

significantly less likely than women to:Network with friends via Facebook, MySpace, etc 47%Tag friends in photos 26%

Males are

More or less

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Females are

significantly more likely then men to:Network with friends via Facebook, MySpace, etc 62%Tag friends in photos 36%

significantly less likely than men to:Use cloud applications (Google apps, etc) 7%Click on ads 10%Illegally download content 16%Internet bank 67%


Deskbound web users are most likely to buy

No. 1 Computer equipment & suppliesNo. 2 Tickets to movies, concerts or showsNo. 3 BooksNo. 4 Travel servicesNo. 5 Clothing & footwearNo. 6 MusicNo. 7 ApplicationsNo. 8 GamesNo. 9 InsuranceNo. 10 Electrical appliances

More or less

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Mobile web users are most likely to buy

No. 1 Tickets to movies, concerts or showsNo. 2 Tag friends in photosNo. 3 ApplicationsNo. 4 Travel servicesNo. 5 Clothing & footwearNo. 6 GamesNo. 7 Computer equipment & suppliesNo. 8 BooksNo. 9 Movies & TV showsNo. 10 Electrical appliances


More or less

Deskbound web users are most into

No. 1 Browsing the webNo. 2 Accessing personal emailsNo. 3 Searching goods for sale on online marketplacesNo. 4 Accessing video sharing sites like YouTubeNo. 5 Posting content on social networking sitesNo. 6 Accessing work or school email accountsNo. 7 Participating in online forumsNo. 8 Searching for property to rent or buyNo. 9 Watching free catch-up TV or newsNo. 10 Searching for jobsNo. 11 Talking via Skype or video conferenceNo. 12 Tagging a friends in a photos

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Mobile web users are most into

No. 1 Sending SMS text messagesNo. 2 Browsing the webNo. 3 Accessing personal emailsNo. 4 Downloading free games & appsNo. 5 Using apps employing a built in cameraNo. 6 Using an app employing GPSNo. 7 Sending messages or posts on a community siteNo. 8 Accessing work or school emailsNo. 9 Accessing video sharing sites like YouTubeNo. 10 Creating or updating personal profiles

on a community siteNo. 11 Reading Twitter postingsNo. 12 Searching for goods on sale on online marketplaces


Q. How are Australians interacting with brands online...

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...and how does it affect their purchasing behaviour?

Total 14-25 years 26-55 years 56+ years Female Male

Accessed a bank or investment account online 74 48 78 83 68 80Received and read an email promoting a company or brand 51 43 49 60 51 51Researched a brand 45 54 44 43 44 47Requested further information from a company online 31 30 29 33 29 32Opted to accept promotional offers or information from a company or brand 25 21 26 25 24 26Planned or managed a business trip or holiday online 25 20 28 22 25 25Watched a commercial or branded film on YouTube 22 39 18 18 18 26Participated in a brand-sponsored contest or sweepstake online 20 9 23 24 19 22Clicked on a digital ad/banner 16 18 15 16 10 22Commented positively to others about a brand via email, Facebook, Twitter, a website or blog posting 16 23 17 7 16 15

Read a company or brand blog 15 16 15 15 16 14Friended a brand on Facebook or MySpace 14 25 14 5 16 12Commented negatively to others about a brand via email, Facebook, Twitter, a website or blog posting 7 11 8 2 5 9

Followed a brand on Twitter 6 7 6 5 3 8Subscribed to or read an RSS feed from a company or brand 5 4 6 6 5 5


Significantly less likely to do (95% confidence interval) Significantly more likely to do (95% confidence interval)

How are Australians interacting with brands online?

Total 14-25 years 26-55 years 56+ years Female Male

Accessed a bank or investment account online 74 48 78 83 68 80Received and read an email promoting a company or brand 51 43 49 60 51 51Researched a brand 45 54 44 43 44 47Requested further information from a company online 31 30 29 33 29 32Opted to accept promotional offers or information from a company or brand 25 21 26 25 24 26Planned or managed a business trip or holiday online 25 20 28 22 25 25Watched a commercial or branded film on YouTube 22 39 18 18 18 26Participated in a brand-sponsored contest or sweepstake online 20 9 23 24 19 22Clicked on a digital ad/banner 16 18 15 16 10 22Commented positively to others about a brand via email, Facebook, Twitter, a website or blog posting 16 23 17 7 16 15

Read a company or brand blog 15 16 15 15 16 14Friended a brand on Facebook or MySpace 14 25 14 5 16 12Commented negatively to others about a brand via email, Facebook, Twitter, a website or blog posting 7 11 8 2 5 9

Followed a brand on Twitter 6 7 6 5 3 8Subscribed to or read an RSS feed from a company or brand 5 4 6 6 5 5

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Total 14-25 years 26-55 years 56+ years Female Male Metro Regional

Travel Services 28 18 33 27 24 32 31 24Tickets to movies, concerts or shows 27 34 31 17 31 24 32 19Computer equipment and supplies 26 23 28 27 22 31 27 26Books 26 29 27 24 31 22 26 27Applications 25 29 28 16 21 28 28 20Clothing and footwear 25 34 25 17 28 21 25 24Music 25 32 32 5 25 24 28 19Insurance 23 11 26 27 19 28 24 21Games 22 34 23 12 20 24 22 22Movies & TV shows 19 21 24 8 18 21 20 18Electrical applicances 19 14 23 13 16 22 18 19Fast food 16 20 22 2 16 16 17 15Cosmetics 14 16 15 11 20 7 15 13Wine, beer or spirits 12 4 10 20 7 17 13 10Newspapers & Magazines 12 2 17 7 8 16 13 10Stationery 11 11 12 8 12 9 13 6Nutritional products 8 5 10 7 6 10 9 6Groceries 8 4 11 4 7 8 10 4

Significantly less likely to buy (95% confidence interval) Significantly more likely to buy (95% confidence interval)

What are Australians buying online?

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Total 14-25 years 26-55 years 56+ years Female Male Metro Regional

Travel Services 28 18 33 27 24 32 31 24Tickets to movies, concerts or shows 27 34 31 17 31 24 32 19Computer equipment and supplies 26 23 28 27 22 31 27 26Books 26 29 27 24 31 22 26 27Applications 25 29 28 16 21 28 28 20Clothing and footwear 25 34 25 17 28 21 25 24Music 25 32 32 5 25 24 28 19Insurance 23 11 26 27 19 28 24 21Games 22 34 23 12 20 24 22 22Movies & TV shows 19 21 24 8 18 21 20 18Electrical applicances 19 14 23 13 16 22 18 19Fast food 16 20 22 2 16 16 17 15Cosmetics 14 16 15 11 20 7 15 13Wine, beer or spirits 12 4 10 20 7 17 13 10Newspapers & Magazines 12 2 17 7 8 16 13 10Stationery 11 11 12 8 12 9 13 6Nutritional products 8 5 10 7 6 10 9 6Groceries 8 4 11 4 7 8 10 4


How do positive and negative online experiences with brands affect actual purchasing?

Can you recall an occasion when an online experience changed your opinion of a brand in a positive way?

Did this positive experience influence whether you actually purchased a product or service from this brand?

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Can you recall an occasion when an online experience changed your opinion of a brand in a negative way?

Did this negative experience influence whether you actually purchased a product or service from this brand?


What are some ofthe surprising facts we’ve uncovered about Australians digital behaviour?

Men are twice as likely as women to click through to ads

36-45 year olds are most prolific online shoppers

Almost a quarter of 65+’s have planned a trip online

Internet banking just isn’t popular in regional and country areas

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Women are more likely to speak highly of their workplace online, men are more likely to criticise it

Younger people are three times more likely to actively boost a brand online

Under 25s are half as likely to enter brand competitions as older Australians

8 in 10 web actives 65+ manage their finances online

While both city and country dwellers will boost brands, city dwellers are almost twice as likely to bag brands

While more over 26’s read tweets, under 26’s are more likely to write them


Summary measure of the nation’s digital pulse confirms the primacy of the internet as Australia’s favourite media channel. Amongst a representative national sample of Australians [who all completed our study online], the internet is by far the ‘most difficult medium to live without’.

While it’s not surprising that 9 in 10 online teenagers view the internet as an indispensible part of their lives, so do 8 in 10 Australians who log on aged 55 plus. The notion of the internet as the province of the young no longer holds.

Its popularity across all age groups makes the internet the most important medium for brand building bar none.

In the month of July 2010, 97% of Australian web users spent 6 hours or more each week connected to the internet. 12% of Australians could be described as power-users,

spending 6 hours or more connected to the internet every day.

We estimate that the average online Australian aged 14+ currently spends 21 hours per week connected to the internet.

While mobile internet devices are rapidly gaining popularity, it’s desktop-based machines that remain the predominant web access point. The almost universal web experience for Australians is the home-based desktop, with 8 in 10 adults accessing web content in this way each month.

The glowing box in the corner no longer has an aerial attached, it has a keyboard and mouse.

While television remains the nation’s firm second favourite medium across all age groups, just over half of online teenagers view TV as indispensible. This can in part be explained by the fact that teens

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are currently the nation’s most enthusiastic catch-up TV users, with four in ten online teens having watched TV shows on a computer in the past month. Seven in ten teens have also accessed video sharing sites like YouTube and Vimeo in the past month, further reframing the modern definition of ‘tube watching’.

TV is being disaggregated into bite sized pieces, with the advertising largely removed.

One bright note for advertisers is younger Australian’s appetite for watching branded films and commercials over the internet, often passed on by friends. 4 in 10 web users aged less than 25 have viewed a branded film or commercial online in the past month, underlining the critical importance for brand owners to develop creative ideas entertaining enough to provoke conversation and sharing between peers.

In every sense of the word, brand communications need to become remarkable in a pass-it-on world.

Around one in three internet users have accessed the web via a mobile phone or tablet device in the past month.

Just over a third of these liberated users have accessed the web via an Apple branded device. Nokia hold about a third of the mobile access market, with the remainder spread amongst a disparate array of manufacturers; Google’s Android platform is yet to make its presence felt here.

Mobile web users differ most markedly from deskbound users in two important respects; their enthusiastic embrace of micro-apps, particularly those that harness the in-built widgetry in their devices and their greater propensity to post


content on community sites from their phones. It is claimed that UK iPhone users spend 50% of their screen time accessing Facebook; an embroynic trend in this direction is suggested here.

The most popular online activities remain task based: web browsing, emailing and internet banking, followed closely by more leisurely activities with a strong social dimension such as EBay browsing, networking on Facebook and YouTubing.

The most popular categories of online purchasing were logged in travel services, event ticketing, computer equipment, books, clothing, music, insurance and games. Under 25s were far more inclined to purchase games, event tickets and clothing while women bought more books. Over 55s were more inclined to purchase alcohol online and, of this group, most were male.

One of the more overblown trends, in Australia at least, is Twitter.

While one in four online users access Twitter monthly, only one in four of these followers ever write tweets; it’s an activity that has many more passive observers than it has active participants.

For years, clients have witnessed the dwindling effectiveness of banner ads, to the point today where just 10% of online users claim to have clicked through to an ad message in the past month. Thankfully, there are a wide array of other branded activities that attract people’s active participation. 51% have received and read brand-focused emails in the past month, 44% have proactively researched a brand online, 29% have actively requested information from a company online, 19% have participated in an online brand competition, 16% have read a brand-focused blog and 15% have friended a brand.

While the days of producing a single 60 second tv commercial and roadblocking the three major networks on a Sunday night is a dim and distant memory, there are

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a multitude of new ways in which consumers are willing and open to engage with brands.It’s clear that a multi-faceted and digitally-based strategy is needed to build bonds with customers who have such eclectic preferences for connecting with brands.

A large aggregate audience for your message can still be built but it demands a belief in building bonds one small tribe at a time. The two way nature of the internet mustn’t be underestimated as an influencer of brand reputation. 16% of online actives felt positive enough about a brand to recommend it to others online in the past month, 7% felt negative enough about a brand to bag it. Both boosters and baggers skew less than 35, suggesting the need for brands with a younger target audience to listen most intently to their customers online. Australians are just as likely to talk about experiences of their employer online as they are with brands in general.

16% of online actives have commented positively about their employer online in the past month, 10% have commented negatively. An important reminder, that in managing a brand’s reputation, the job starts with one’s own people.As we repeat this study every quarter we seek to capture emerging trends in digital usage and their impact upon brand engagement. In the meantime, your questions and comments are very welcome. Please contact [email protected]

Principals digital services include digital channel planning and information design, web and app concept development, user analytics and online brand management systems. Please contact [email protected] to discuss your needs.

mailto:[email protected]


Digital Pulse: [email protected]

Principals digital offer: [email protected]

Any other enquiries: Tom Brigstocke 0418 447 094 | [email protected]

Office locations:

Sydney:Level One 58 Lower Fort Street Sydney NSW 2000 Australia

Melbourne:1 Stewart Street Windsor VIC 3181 Australia

www.principals.com.au

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www.principals.com.au

digital pulse spring 2010

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