The digital tipping points are here: Deloitte media consumer surveyDOWNLOAD
30 July 2014: Using the internet has almost eclipsed watching TV as our preferred source of entertainment and reading the news online has overtaken reading it in print, according to more than 2300 Australians surveyed for Deloitte’s annual media consumer survey.
The key findings of this third annual survey into how Australians across four generations and five age groups prefer to consume media show that many of the long anticipated digital tipping points are either here, or will be here this year.
The survey results confirm that more than half (53%) of us are digital omnivores (up from 28% last year). This ‘dosing up on devices’ has largely been driven by increased tablet ownership with 63% of respondents now owning tablets as well as laptops (87%) and smartphones (81%).
We are habitual multi-taskers, 79% of us do so while watching TV (up 8% from last year). We also love our apps, especially the social network and weather ones.
We are demanding and want faster internet speeds and are willing to pay for it. Some of us, almost 10%, are prepared to pay a lot more – over $20 more a month.
When it comes to social though, that’s where the growth is. We check our social networks a lot – up 170% since last year – with some of us doing so more than 20 times a day!
And advertising on social media is increasingly influential – a third of us (33%) find it influential when it comes to buying decisions.
Deloitte Media Partner and co-author of the report Niki Alcorn said: “In this year’s survey, digital has come of age.
“Our findings on what we use, where we use it and how, all show that Australians are increasingly sophisticated and savvy when it comes to digital. Even the matures and boomers, who are our fastest growing group of tablet users at 42% and 21% compound annual growth respectively, are multitasking while watching TV. They mostly read emails or surf the web.
“It is the speed at which we are changing to digital that is most impressive,” said Alcorn. “Our shift to social is up 170%, and our shift in entertainment preferences to the internet from TV has grown 10% year on year for the past three to its current 63% preference versus 64% for TV.
“In Australia for instance there is a greater proportion of ‘digital omnivores’ than in the US (37%) or Japan (17%). And at 53% we are just behind Norway’s 57%, although we lag China (63%).
“As well as speed, we think the way we consume media is also about convenience,” said Alcorn. “For instance when it comes to TV and video content, we rent movie and TV shows using whichever method is most convenient at the time, with a preference for digital emerging. Over the next couple of years almost a quarter of survey respondents say they will subscribe to an online streaming service, with 21% intending to rent a digital copy.
“And convenience is also key when it comes to watching our favourite TV shows. While live TV on a home system is still the most common way to view (65%), almost a quarter of us will watch the show later on a DVR through the home TV system, or use catch-up services, including a free online video services and a show’s internet site (18%).
Deloitte Media leader Clare Harding said: “Given we spend more than a day a week watching TV and video content, (just under four hours daily), convenience also describes our appetites for bingeing. We binge on our favourite hit shows, and like to take control and want choice when it comes to TV viewing.
“Seventy two percent of our survey participants binge on three or more consecutive episodes of their favourite TV series, with 30% of Xers and Millennials bingeing once a month, and 41% of the younger age groups doing so once a week.
“Bingeing also shows that it’s all about ‘me’. I want to do what I want, when I want it, on my terms – not as a determined by the schedule.
“It also demonstrates that audiences are deeply engaged with ‘cult’ series - think Game of Thrones or Breaking Bad. Bingeing is almost the opposite of scheduled episodic content that brings audiences and advertising dollars back on a regular basis. Broadcasters need to consider how to build delivery platforms and revenue models that support both preferences, as well as producing or acquiring these highly attractive, binge-worthy programs.”
Harding said that when it comes to advertising it is becoming easier than ever to understand consumers’ interests and needs through insights drawn from the information trails we leave all over the Internet. “Our survey shows that 44% of participants would be willing to see more online ads if they provide access to free content that they find valuable.”
She said: “Ads delivered during or after an online video for instance appear to be becoming more influential, with 33% of surveyed respondents ranking these online ads in the top three online influences on their buying decisions.”
“However although online advertising is picking up and the influence of print advertising beginning to subside, more than half of our survey respondents still pay more attention to print advertising in newspapers and magazines than they currently do to online ads. And of this mass advertising, television is still the most influential in terms of buying behaviour, with a product’s website seen as more influential than either newspaper or magazine advertising.”
Stuart Johnston, the Technology, Media and Telecommunications lead partner at Deloitte said: “The insights around digital, convenience and influence in this year’s media consumer survey, and the preferences, attitudes and behaviours they call out are important for telecommunications, media and technology businesses. But not exclusively so.
“The challenges of anticipating and responding to digital consumers’ changing behaviours when it comes to connecting with customers across platforms and devices, can inform many industries.
“The insights reveal what Australians are prepared to pay for, and what they will not, how we like to be entertained, on what devices and technologies, and who and what we respond to. These attitudes will be useful across a broad sweep of industries – both private and public.
“In what has fast become the digital age, understanding its shifts, tipping points and influences – especially our peripatetic social networks – as well as how advertising fits into the picture, will help businesses design better and more robust ways to work with their clients and customers, as well as their employees.
About the survey
Please visit www.deloitte.com/au/mediaconsumer to download a copy of the report.
NB: See our media releases and research at www.deloitte.com.au.