The Tablet and TV - a match made in heaven: Deloitte Media Democracy SurveyDOWNLOAD
25 May 2012: Deloitte’s State of the Media Democracy survey of more than 2000 Australians across four generations shows that the preferred form of entertainment for 64% of Australians is to watch TV at home. And while they do this, 60% multitask on other electronic devices.
“In fact six out of seven of the top multitasks occur on an electronic device,” Deloitte Technology, Media and Telecommunications (TMT) Partner Clare Harding said. “It seems the tablet has really kicked along our multi-tasking behaviour whilst in front of the TV.
“Indeed our research tells us that converged consumption of media and entertainment content in front of the big screen is well past the ‘tipping point’. This is an important consideration for broadcasters, application developers and advertisers when building an integrated marketing campaign,” Harding said.
“If you can leverage this behaviour to drive greater and longer engagement, as well as a more direct call to action, you really can secure a competitive edge and a better, more measurable return on investment,” she said.
"Broadcasters are starting to embrace the opportunity with their own products which was very obvious in programs such as the Voice, Q&A, Master Chef and earlier this year, the Australia Open,” Harding said. She noted that in the US, software that listens to TV audio and identifies unique signatures to match with content already exists. It is now possible to bring up a window with facts about a show or an advertisement, and find out more using a remote control. The obvious opportunity of this technology is for consumer brands that advertise on TV, to use a more integrated approach with sufficient information to support viewers to purchase their product instantly.
“Investment and business model decisions of all companies will inevitably be implicated by this digital complexity,” Harding explained. “The challenge will be to anticipate what is most important to your customers and what new capabilities are needed to retain brand loyalty and revenue in a world of exploding choice.
“That younger generations are engaging digitally with content was no real surprise, but that older generations are also vigorously adopting digital media was news, and gives the findings a real depth,” Harding said.
“The big question is how broadcasters and advertising agencies take this trend and help their clients, the advertisers, develop campaigns that take advantage of some of the possibilities multi-tasking provides,” Deloitte National TMT Leader , Damien Tampling said.
“Do broadcasters have partnerships or capabilities to assist a brand take an order triggered by a TV advertisement pop up and then follow through to deliver that order? Should this be part of the broadcaster’s value chain or is it beyond the remit of what they should be trying to do?” Tampling asked.
“Certainly increasing convergence will continue to drive innovation in how these companies deliver their messages and deliver measurable outcomes to the advertiser across more than one channel,” he said
The rise of the multi-tablet owner
Deloitte’s State of Media Democracy survey also highlighted the value Australians are placing on the tablet, its functions and overall experience. Tablet sales skyrocketed in Australia in 2011 with more than 1.4 million tablets sold to the 13% of Australian households that own at least one tablet.
“Interestingly, 31% of tablet owners indicated that their tablet was more valuable than any other media device they owned. Tablet adoption is nearly equally distributed across all age groups with Xers (29-45 years) having the highest percentage of ownership (16% of respondents) followed by Leading Millennials (age 23-28) and Trailing Millennials (age 14-22) with 13% and 14% of respondents respectively,” Tampling said.
“As more Australian consumers use multiple devices to consume their media, the importance of platform consistent customer experience also increases. Google recently launched a campaign, promoted through print media, to target companies to become more aware of what their website looks like on a mobile device,” he said. “A carefully considered mobile strategy has become a ‘ticket to play’ for companies and no industry is immune to its potentially disruptive impact or the opportunities it provides to be competitive ahead of the game.”
Advertising, Online Reviews and Social Media
Although Deloitte’s State of Media Democratisation survey found that television advertising was the most influential on consumer decisions in Australia (68% of respondents), it was followed by newspapers (53%) and online advertising (47%) based on a selection by respondents of their top three influences.
Online advertising is catching up to traditional media channels with online reviews and recommendations highly influential when it comes to making buying decisions. “Our survey shows that 56% of respondents learned about a new product online for the first time and 43% purchased a product based on an online review or recommendation,” Tampling said.
A Deloitte Retail 3.0 research report also reveals that 41% of shoppers will check competitors’ prices on their smartphones whilst in a retail store. "Consumers are becoming ‘shameless’ when it comes to telling in-store staff members they can get a product cheaper elsewhere. Price matching is everyday consumer behaviour as is asking questions about product issues they’ve read about online.
“It’s called Word of Mouth (WOM) in the 21st Century,” Tampling said.
“Although seeking product information online is equally popular across all age groups, Millennials and Xers are more influenced by online reviews and recommendations than older generations,” he said.
Harding added that social media is also inevitably very influential in these consumer buying decisions. “An unexpected finding in the State of Media Democracy survey was that 42% of Boomers (46-64 years) and 34% of Matures (aged 65-75) report finding social media is a good way to satisfy some of their social needs.
“The implications of the statement that: ‘My parents’ parents are on Facebook’ are huge,” she said. “Figuring out the role social media has to play in advertising strategies as social media gets to scale, and how to do that in a way that is sensitive to the medium, is a big challenge and a big opportunity.
“While industry spending on online advertising has increased, newspaper advertising nevertheless remains a more influential form of advertising in Australia when it comes to buying decisions,” said Harding. “A reason for this could be that 69% of Australian consumers perceive online ads as more intrusive and therefore less effective than other forms of advertising,” she explained.
Newspaper content is also increasingly being consumed in different formats and on different devices, with 47% of Australian respondents reading their newspapers or magazines online. Australians’ adoption of non-printed newspapers is however consistent with the US, France and the UK, ahead of Germany and significantly behind India and Spain.
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