Australia is one of the most connected countries in the world, according to shopper marketing firm, TNS.
The TNS Connected Life report is the world’s largest study of digital attitudes and behaviours across 50 countries.
Alistair Leathwood, executive director at TNS Australia,says that with the tremendous growth and complexity of the digital environment, the connected consumer presents both a challenge and an opportunity.
“We’re now on the cusp of a new digital revolution – the connected consumer revolution – that poses a rich opportunity for us to achieve precise targeting instead of mass reach and to create new channels of engagement in the connected homes and cars of the future,” said Leatherwood.
“We should be marketing by occasions, needs, attitudes, and the various mindsets for different media, reaching customers through specific channels at specific times of the day.
“Increasingly media is online, and online means mobile. These are the new table stakes of marketing and it is fundamentally changing how brands interact with consumers.”
The report found that on average Australians own 4.8 devices and spend 3.3 hours a day online on personal interests (browsing, shopping, entertainment).
Ninteen per cent of consumers report they are connecting mobile devices to other devices in the home, with another 28 per cent expressing interest in using this technology in the next 12 months. This means a potential 47 per cent market penetration in 2015.
Similarly in cars, 16 per cent of consumers report usage of in car connectivity, while a further 18 per cent express interest in future use. For smart or ‘quantified self’ devices that monitor biometrics, 18 per cent report current usage with interest from 17 per cent more.
Australians spend an average of 3.3 hours online for personal use as compared to 2.2 hours watching TV. When you consider multi-screening (watching TV while using another device), only 53 per cent of TV time is undivided. Still, TV is a viable channel during specific times of the day as below.
Time of day dictates the channel – despite considerable channel fragmentation, consumers are showing signs of predictability at certain times of the day. For example, one third (31 per cent) go online first thing in the morning, but TV is the more popular channel over dinner (36 per cent).
Smartphone penetration is as high as laptops in Australia. Smartphones grew five per cent on last year to 75 per cent, which for the first time places the smartphone in line with laptop penetration.
Smartphone penetration is highest among younger consumers, yet interestingly, is as high as 60 per cent amongst those aged 50+.
Tablets are expected to hit mainstream status in four years. Tablets grew 16 per cent on 2013 to 46 per cent, placing tablets firmly in the mainstream – this is considerable growth given tablets have only been in market since 2010.
Additionally, tablets achieved at least 40 per cent penetration in all age groups, making this device an important channel.
Showrooming, the act of evaluating products in store and later making a purchase online, has levelled off at just over 40 per cent, however, a deeper look shows online and offline experiences melding into a complex dance.
On average, there are seven touch points that exert influence (eg. seeing an advertisement, reading consumer reviews, evaluating competing products, looking for offers), yet this still often leads to an instore purchase – a process called ‘webrooming’.
The demand for more media, more often is limitless. In this new hyper connected world, people are consuming more advertising messages than ever before, but with the expectation that brands know them and their needs.
This makes micro-segmentation essential. Media and device fragmentation means there are a wealth of potential ways to reach people. Understanding these patterns allows the targeting of individuals and groups to be far more precise and ultimately delivers against both long and short term marketing objectives with greater accuracy.
Executive Director at TNS Australia, Alistair Leathwood who presented at the conference commented that with the tremendous growth and complexity of the digital environment, the connected consumer presents both a challenge and an opportunity.
Leathwood continued: “We’re now on the cusp of a new digital revolution – the connected consumer revolution – that poses a rich opportunity for us to achieve precise targeting instead of mass reach and to create new channels of engagement in the connected homes and cars of the future. We should be marketing by occasions, needs, attitudes and the various mindsets for different media, reaching customers through specific channels at specific times of the day. Increasingly media is online, and online means mobile. These are the new table stakes of marketing and it is fundamentally changing how brands interact with consumers.”
