How Does Industry Buzz Translate into Real World Consumer Activity? Early indicators of what this means for advertising
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1 How Does Industry Buzz Translate into Real World Consumer Activity? Early indicators of what this means for advertising
2 Today Introductions HearWatchSay The Story Behind the Story The Meat and Potatoes Consumer Uptake of Hyped Devices Implications for Advertising 2
3 Separating industry hype from consumers viewpoint 20,000 product launches at CES
4 Data from a variety of sources Single-source media diary examining when, where and how new and traditional media is consumed, as well as device ownership. Twice a year with 7,500 online consumers aged per wave. The Industry Source for Pre-Premiere TV Tracking. Weekly survey among 3,300 TV viewers aged per week.
5 Data from a variety of sources Ipsos MediaCT s community of 5000 media savvy consumers. In partnership with the IAB Used for qual and quant research.
6 Four devices dominated CES Tablets (still) OLED TV Ultrabooks Connected TV Which one is most likely to be this year s tablet?
7 Tablets
8 Global shipments increased by 55% Q3 to Q Global tablet shipments (millions) Qtr Qtr Source: IHS isuppli Research, Feb 2012
9 .through the last quarter which is just 2 years after we shipped the initial ipad, we ve sold 67 million...it took us 24 years to sell that many Macs and 5 years for that many ipods and over 3 years for that many iphones. And we were extremely happy with the trajectory on all of those products. And so I think ipad, it s a profound product. Tim Cook, Apple CEO [earning call, April 24th]
10 In US, 14% of internet users aged now have one % owning a tablet 14% 10% Apple s ipod took 6 years to reach 20% penetration 2% 4% Spring 2010 Fall 2010 Spring 2011 Fall 2011 Among US internet population aged (n=7500 per wave)
11 And in Fall 2011, 22% intended to buy one % interested in owning a tablet 17% 22% 12% 12% Spring 2010 Fall 2010 Spring 2011 Fall 2011 Among US internet population aged (n=7500 per wave)
12 Post-Holidays, 1 in 2 are interested in owning a tablet Interest in owning (among 13-64s) 25% 26% Very interested Somewhat interested TV Dailies: 3,300 TV viewers aged 13-64, Feb 2012
13 Tablet has increased across all groups Very Interested in Owning a Tablet (18+ year olds) Total Feb 2011 Total Feb % 27% <$100K (2011) <$100K (2012) $100K+ (2011) $100K+ (2012) 17% 17% 26% 31% <35 yrs old (2011) <35 yrs old (2012) 35+ yrs old (2011) 35+ yrs old (2012) 13% 25% 24% 28% 1000 adults 18+ in Feb 2011, 3000 adults 18+ in Feb 2012
14 Tablet = Killer form, rather than killer app 38% Most important feature Thinner & lighter than a laptop 31% Long battery life 14% Fast start-up 9% Touchscreen 7% Apps 645 members of HearWatchSay
15 Tablets: Summing up Potential in 2012: Interest continues to grow across all groups Price points for all pockets Strong standard bearer for the category
16 Ultrabooks All the capabilities of a PC/laptop Longer battery life Faster start-up time Much thinner & lighter than a regular laptop
17 Could the Ultrabook take on the tablet? Lightweight Portable Long battery life Fast to start up Powerful Work & personal use
18 Could the Ultrabook take on the tablet? Maybe not It s a laptop Multiple brands & products in the marketplace
19 What s the #1 feature of Ultrabooks for consumers? 92% Important features Does everything I can expect from a laptop 75% Long battery life 60% Thinner & lighter 56% Fast start up 48% Keyboard rather than touchscreen 645 members of HearWatchSay
20 Consumer perceptions: Thinner = less powerful I run some really intensive applications for work, and the specs on most Ultrabooks aren t quite there Not sure if these Ultrabooks will be able to live up to a gamer's needs There is so much technology out there am seriously confused about just what to get The main benefit to me is thin/light and long battery life. Unfortunately, these are sort of mutually exclusive with power I'm not in the market for a new portable computer right now, but I might consider one the next time I am From members of HearWatchSay
21 Ultrabooks lack the awareness & allure of tablets Awareness (% of 13-64s) 10% 63% Interest in owning (% of 13-64s) Tablet 25% 26% Very interested Ultrabook 17% 25% Somewhat interested TV Dailies: 3,300 TV viewers aged 13-64, Feb 2012
22 Pricing needs to be in line with laptops or it s a barrier Interest in owning an Ultrabook (indexed to unpriced interest) Unpriced ('very interested') $999 $ members of HearWatchSay
23 Ultrabooks: Summing up Potential in 2012: Currently, the Ultrabook category is not a new one, but a progression of an existing one Planned developments could make them a genuine hybrid of tablet and laptop No standard bearer Current pricing is beyond many consumers
24 OLED TV Super HD & higher refresh rate True black & greater contrast, giving a brighter, clearer picture Much thinner
25 At CES, everyone was talking about LG s 55 OLED TV In the real world, very few consumers have heard of it: Awareness of OLED TVs (% of 13-64s) 8% TV Dailies: 3,300 TV viewers aged 13-64, Feb 2012
26 Despite low awareness, interest is relatively high Tablet 25% 26% Interest in owning (% of 13-64s) Ultrabook 17% 25% Very interested Somewhat interested OLED TV 17% 21% TV Dailies: 3,300 TV viewers aged 13-64, Feb 2012
27 Picture quality is the main driver of interest 72% 55% 51% Important features Super high def picture quality Full connectivity & same functionality as laptop or tablet Much thinner than a regular HDTV 45% Greater contrast 645 members of HearWatchSay
28 But when we mention the price Interest in owning an OLED TV (indexed to unpriced interest) Unpriced ('very interested') $3,999 $4, members of HearWatchSay
29 The challenge of marketing OLED TV Consumers already think they have great picture quality on their HDTV And how do you market better picture quality to consumers watching on an inferior screen?
30 Beyond a certain point, thinness is not a game changer
31 OLED TV: Summing up Potential in 2012: An important breakthrough, but not likely to break into into the living room in 2012 Price and convincing consumers it s worth upgrading their HDTV will be the major obstacles
32 Connected TV Full connectivity and functionality Download apps Share content (including TV shows) with friends
33 The term connected TV is not widely understood Awareness of Connected TV (% of 13-64s) 21% Awareness with more explanation (% of 13-64s) 56% TV Dailies: 3,300 TV viewers aged 13-64, Feb 2012
34 Interest in Connected TV is not at the level of tablets Tablet 25% 26% Interest in owning (% of 13-64s) Ultrabook 17% 25% Very interested OLED TV 17% 21% Somewhat interested Connected TV 18% 26% TV Dailies: 3,300 TV viewers aged 13-64, Feb 2012
35 nor is urgency among consumers to buy one Tablet 18% Intend to purchase in next 6 months Ultrabook 8% Connected TV 6% 645 members of HearWatchSay
36 Apps & social aspects of connected TV lack strong appeal for many consumers 79% Important features Full connectivity & same functionality as laptop or tablet 57% Access sites like Netflix, Hulu etc 42% Gesture control 34% Download apps 14% Make or receive recommendations on content 645 members of HearWatchSay
37 Connected TV seems to lack a killer app to drive urgency I still prefer Facebook & Twitter on a computer...that way I can watch TV & chat, surf, play games at the same time I want to watch TV...not talk on Facebook or Twitter, that is what my computer is for Sharing recommendations and such is pretty sad...why are we avoiding simply talking to the people we know about TV When my TV breaks next, I'll probably go out and buy another one, and I definitely want a connected TV a cheap cable can connect most computers and even tablets and smartphones to a TV again making these features redundant Already spent money to buy my TV, PC and phone...why would I go and spend more money on a TV that can do the things I am already able to do with the other devices? From members of HearWatchSay
38 All TVs will be connected in the future 20% 80% 80% of global TV shipments in 2015 are forecasted to be connected sets, up from 27% in Source: Futuresource Consulting
39 but the pace of adoption may be relatively slow Purchasing a connected TV Consumers are already connecting devices to a TV They love their current HDTV Using a connected TV TV is their escape They like multiple screens for multi-tasking TV shows are a great conversation topic
40 Only a small % of owners use their connected TV 42% 40% Past Week Activities on Tablet and Web-Enabled TV 32% Tablet Web-Enabled TV 23% 20% 19% 8% 7% 6% 8% 5% 2% 9% 8% 5% 4% Social Network Search News, Weather, Sports Games Shop IM TV Show Info LMX (US Online Consumers Fall 2011 A&U Among Those Who Went Online Using a Tablet n=596, Web-Enabled TV n=357...
41 Most of the TV they watch is live Web-Enabled TV Owner Share of Video Time (past day) Online VOD Video 3% Streamed 7% to TV 8% DVR 19% Live TV 64% Among Web-Enabled TV owners n=357 (Fall 2011)
42 Connected TV: Summing up Potential in 2012: Installed base will continue to grow Faces stiff challenge from other devices and existing behaviors Needs a killer app to engage consumers
43 In summary 2012 is likely to be a repeat of 2011, with tablets continuing their rapid growth. The others are all breakthroughs but they may struggle to move strongly into homes in Connected TV is a slow burner, needing a killer app to ignite Tablets OLED TV Connected TV Ultrabooks
44 What does this mean for advertising? 44
45 Two devices look to have near-term advertising relevance Tablets Connected TV
46 Two devices look to have near-term advertising relevance and one new partnership Tablets Connected TV Tablets + TV
47 As always, the novelty factor can be the hook to added consumer affinity It s interesting to see how ads make use of the.touchscreen functionality of the tablet.connected, internet or interactive functionality of the connected TV 15% 8% 31% 43% 46% 51%.ability to interact with them using a tablet 12% 31% 43% Agree strongly Agree slightly HearWatchSay, Feb 2012, 181 tablet owners / 60 connected TV owners, March 2012
48 Tablets offer an attractive new format It's great being able to interact with advertising on a tablet by touching or swiping 15% 29% 44% There are some great ads to interact with on a tablet 13% 19% 32% Agree strongly Agree slightly HearWatchSay, Feb 2012, 181 Tablet owners, March 2012
49 . I personally am digging the ads on my Ipad 2 a lot more than ads I normally would come across on my PC. I like how they [are] making ads much more specific and interactive for the tablets - they seem much more interesting than regular advertising.allowing a user to go through things [interactively] could allow for greater return on customers.being able to pick & choose which parts to view is a good idea. HearWatchSay members, March 2012
50 Connected TV provides new ways to advertise I pay more attention to advertising if it makes use of the connected, internet or interactive functions of my television 10% 26% 36% It's great being able to interact with advertising on my connected TV 12% 35% 47% Agree strongly Agree slightly HearWatchSay, Feb 2012, 60 connected TV owners, March 2012
51 Tablet and TV work well together I pay more attention to commercials or brands featured on TV if I can interact with them or find out more using my tablet 7% 25% 32% It's great being able to interact or find out more about commercials or brands featured on TV using my tablet 12% 29% 41% Agree strongly Agree slightly HearWatchSay, Feb 2012, 60 connected TV owners, March 2012
52 Tablet owners are already more likely to use a simultaneous screen % going online while watching TV 71% 62% Tablet Owner Total Population Among US internet population aged (n=7500 per wave)
53 Tablet owners are more likely to engage with advertisers and content providers using social media Tablet owners are 23% More likely to visit a product or brand page 22% More likely to comment on a product or brand 56% More likely to communicate with a product or brand LMX (US Online Consumers Fall 2011 A&U Among Tablet Owners n=1,086 and Total n=7,546; Tablet Owners SN Members n=974, Total SN Member n=6,349.
54 What does this mean for advertising? New opportunities Advertising that makes use of the tablet s features is appreciated Connected TV is opening up new ways to engage The partnership of TV and tablet has great potential Tablets Ultrabooks OLED TV Connected TV
55 Thank you. Sherrill Mane Senior Vice President for Research, Measurement and Analytics Kevin Thompson SVP, Corporate Development 2012 Ipsos. All rights reserved. Contains Ipsos' Confidential and Proprietary information and may not bedisclosed or reproduced without the prior written consent of Ipsos.
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