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TNS research project reveals: major changes in online behavior

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WPP press release:

Global Digital Life research project reveals major changes in online behaviour
10 October, 2010

Website showcases data from largest ever online research project covering 46 countries and 90% of world’s online population

Launched on ‘digital day’, first survey reveals major differences in online attitudes and behaviour:

– Online is now the media of choice
– Mature markets being left behind online as emerging markets become more active
– Increase in mobile use as consumers seek greater access to social networking on the go

LONDON — The largest ever global research project into people’s online activities and behaviour – Digital Life – was launched today, ‚digital day‘ by TNS, the world’s biggest custom research company. Covering nearly 90 per cent of the world‟s online population through 50,000 interviews with consumers in 46 countries, the study reveals major changes in the world‟s online behaviour.

Core data from the study is being made publicly available via an interactive website – www.discoverdigitallife.com

“This study covers more than twice as many markets as any other research.” said TNS Chief Development Officer Matthew Froggatt. “It is the first truly global research into online activities, including all the key emerging markets of the BRICs and many of the „Next 11‟. We have also researched beyond basic behaviour to provide more detailed data into attitudes and emotional drivers of that behaviour.”

“We are confident that Digital Life will become the new benchmark for information on online consumer behaviour,” continued Froggatt. “Making a lot of this publicly available was an important first step for us and obviously we have a wealth of further information behind those basic statistics covering brands and companies which we will offer to clients.”

Among the key findings of the study are:

– Globally, people who have on-line access have digital sources as their number one media channel. 61% of online users use the internet daily against 54% for TV, 36% for Radio and 32% for Newspapers.

– Online consumers in rapid growth markets have overtaken mature markets in terms of engaging with digital activities. When looking at behaviour online, rapid growth markets such as Egypt (56%) and China (54%) have much higher levels of digital engagement than mature markets such as Japan (20%), Denmark (25%) or Finland (26%). This is despite mature markets usually having a more advanced internet infrastructure.

– Activities such as blogging and social networking are gaining momentum at huge speed in rapid growth markets. The research shows four out of five online users in China (88%) and over half of those in Brazil (51%) have written their own blog or forum entry, compared to only 32% in the US. The Internet has also become the default option for photo sharing among online users in rapid growth markets, particularly in Asia. The number of online consumers who have ever uploaded photos to social networks or photo sharing sites is 92% in Thailand, 88% in Malaysia and 87% in Vietnam, whilst developed markets are more conservative. Less than a third of online consumers in Japan (28%) and under half of those in Germany (48%) have uploaded photos to such sites.

– Growth in social networking has been fuelled by the transition from PC to mobile. Mobile users spend on average 3.1 hours per week on social networking sites compared to just 2.2 hours on email. The drive to mobile is driven by the increased need for instant gratification and the ability of social networks to offer multiple messaging formats, including the instant message or update function. When looking at how the digital landscape will change in the future, research shows that consumers expect their use of social networking on mobiles to increase more than use through PC. In the US, for example, a quarter (26%) of online consumers expect their use of social networking on a PC to increase in the next 12 months compared to over a third (36%) who will be looking to their mobile to increase usage. In Australia the figures are 26% and 44% respectively, and in Sweden they are 24% and 53%.

Goodbye email, hello social networking
One further finding of the study showed that online consumers are, on average, spending more time on social networking sites such as Facebook and LinkedIn than on email, despite the former only becoming mainstream in many markets over the last few years. In rapid growth markets such as Latin America, the Middle East and China, the average time spent, per week, on social networking is 5.2 hours compared to only 4 hours on email. Online consumers in mature markets remain more reliant on email, spending 5.1 hours checking their inboxes compared to just 3.8 hours on social networking. The heaviest users of social networking are in Malaysia (9 hours per week), Russia (8.1 hours per week) and Turkey (7.7 hours per week).

When it comes to who has more friends, online consumers in Malaysia top the list with an average of 233 friends in their social network, closely followed by Brazilians with 231. The least social are the Japanese with just 29 friends and Tanzanians have, on average, 38 in their circle of friends. Surprisingly, Chinese consumers only have an average of 68 friends in their networks despite being heavy users of social networking sites, indicating a culture that embraces fewer but closer friendships.

Froggatt continued: “The Internet is a huge part of life in the 21st century but how it affects our lives varies depending upon where in the world you live. We‟ve seen that in mature markets where people have been online for years and where access is ubiquitous, the Internet has already become a commoditised item that consumers take for granted. However, in rapid growth markets that have seen recent, sustained investment in infrastructure, users are embracing these new channels in much more active ways. The digital world is transforming how they live, develop and interact and online consumers in these markets are leaving those in the developed world behind in terms of being active online and engaging in new forms of communications.”

Source: http://www.wpp.com/wpp/press/press/default.htm?guid=%7bad32a1ae-a75b-4af8-94b0-25fc021195ef%7d

How consumers shop online

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Ever wondered how consumer really behave when shopping online?
If you are running your own ecommerce website you can invest a great deal into web analytics. Analyzing visitors paths, conversion rates and visitor loyalty can provide interesting insights. Still it may be really hard to get definite information. Changing IP addresses, inexact origins due to electronice data processing centers and all the common inconveniences of web analytics make it hard for online retailers to analyze their customers behavior.

McAfee Secure now came up with a white paper that summarizes the results of the analysis of 163 million consumers who completed a total of 2.52 million transactions. The results are stunning. And they prove what we already know from real life shopping: We love to promenade through the inner city stores monitoring all the interesting products and comparing prices before we finally come to the obviously bet decision based on the information we have gathered. The same happens online. Consumers do not shop at once (except for spontaneous purchases). The average online shopper is in no hurry. Of course not, as stocks online usually last some time and there is barely any fear someone else might grab the last item available. The average online shopper of those 163 millions shoppers surveyed take their time – on average up to two days – between first visiting a website and finally purchasing a product.

What happens within those 33 hours and 54 minutes? Well, nothing extraordinary. Consumers compare prices elsewhere, read test results and consumer reviews, ask their peers about the product and gather recommendations from other users. An ever growing source of information are social networks and the entertaining social media presences of brands. They may lack elaborate information but they provide a good impression of a brand’s character and its fans. Some ecommerce websites even allow shopping together making use of social media technology. We call it social commere. Paul Marsden, an expert in this field defines social commerce as follows:

Selling with social media – the use of social media in the context of e-commerce (Source: www.socialcommercetoday.com)

What are the implicatios of this analysis for online retailers?

Well in order to assure that shoppers really shop with you instead of finding another place to get the product of their desire, you might want to assure this: clarity / good usability, transparency in terms of costs, shipping and handling, warranty, product details and of course the reputation consumers have of you! You know, price is not everything. Simply treat your customers the way they expect it. And for your own sake, always keep an eye on costs. The best service in the world is useless if it costs you too much and eventually ruins your business. Then customers with a service issue will sadly have to find out that only some months after they bought your products your business went bankcrupt….

For a more detailed list of advice, please see a really good article on this here:

http://www.practicalecommerce.com/articles/1799-Online-Shoppers-Wait-Two-Days-to-Buy