Name: Kim
Bio: Kim is an expert in technology research, specialising in helping companies enhance their digital marketing strategies and online presence by knowing how consumers are using content across mobile, search and social media. Kim holds a Doctorate in Industrial/ Organisational Psychology and is a registered psychologist.
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- Less likely to view their existing laptop as a reason not to purchase, 32% in April vs. 37% in June
- More likely to consider purchasing instead of a laptop, 9% in April vs. 6% in June
- More likely to state the device would be useful for consuming digital media while travelling, 25% in April vs. 19% in June
- Less likely not to buy due to incompatibility with Flash, 11% in April vs. 14% in June
Climate change in the mobile brand ecosystem
May 25th, 2011
Nokia was long the dominant brand in the mobile world, but in the past five years times have changed, with iPhone and Android now holding the trump cards.
This change to the climate of our mobile ‘ecosystem’ occurred the day Apple popularised the gadget with the power to rule them all: the smartphone. No longer were all handsets virtually the same, and the mobile operating system as a brand was born.
But there is a further change to the mobile brandscape still to come. As we move back into a phase where handsets are becoming similar, the market moves from what my phone can do (e.g. imaging, email, video) to what I can do with my phone (e.g. Facebook, Google, YouTube). Content brands such as these are capturing the hearts and minds of consumers, diminishing the value of network provider and handset brand.
There’s no questioning it, consumers today would switch network before they’d give up their iPhone. They select the operating system, whether it be iOS, Android, RIM or Windows, that will enable access to their favourite content and deliver the best user experience in doing so.
Our recent Mobile Life study looked at where the brand equity sits in the mobile ecosystem.
At a global level, content brands increased their share of the mobile market’s brand equity, up from 13% to 17% in the past 12 months. This growth is evident in mature economies also, where they command an even greater share of the value. In North America, 37% of available brand equity now sits with content brands (more than either network providers or handset manufacturers can muster) and similar swings towards content are being experienced in the United Kingdom, Europe and Developed Asia.
In Australia, handset brands displayed increasing impact on consumer decision making over the past 12 months, to the detriment of network brands – brand equity is led by handset manufacturers at 56%, and followed by content brands at 29% and network providers with 16%. The Australian market is lagging behind the world’s lead mobile markets in the swing towards content brands, due to a history of network and handset provider dominance, but is expected to follow suit.
Barring game changing innovation from competitors, iOS and Android operating systems are set to continue their growth trajectory. Their consumer loyalty stems from their ability to deliver greater utility, with iOS consumers, for example, using an average of 10 services compared to only six services used through Symbian and Windows.
Globally, Android, gained 24% share in the past 12 months, (up from 9% to 33%), mainly to the detriment of Nokia and RIM. In Australia, Android is yet to take off with only 4% market share. iPhone has shown strong grown over the past twelve months and accounts for 27%.
Global data
For the moment, network providers retain strong equity in Australia due to a legacy of distribution channels and the nature of our mobile owning population. However, when this legacy begins to fade and handsets become increasingly similar again, the battle for mobile consumers will be fought and won over content.
For the moment, network providers retain strong equity in Australia due to a legacy of distribution channels and the nature of our mobile owning population. However, when this legacy begins to fade and handsets become increasingly similar again, the battle for mobile consumers will be fought and won over content.[BC(1]
[BC(1]Kim I couldn’t find Aus figures. Would you be able to quickly jot them down for me so I can update the chart?
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Where next for the tablet?
May 24th, 2011
The launch of the iPad took shiny toy syndrome to new heights, as consumers lined up for something they freely admitted having no real need for nor idea of how to use.
Just over a year since, around 20 million tablets have been sold across the globe, 90% of which is accounted for by iPad. This marvel of modern marketing is set to continue, with a legion of competitors hitting the market and predictions that sales will reach 242 million units by 2015.
On Australian shores, 6% of adults are proud owners of a tablet device, and 26% have stated an intent to purchase one in the next 6 months. They are seen as a complement, not a replacement, to the existing device repertoire, with only 13% of intended owners likely to replace their PC with a tablet and only 2% to replace their mobile phone.
So how can we understand this new computing form with its use and the space it sits in so ill-defined?
A good place to start is with a look at usage preferences of tablet owners and intended owners, which we covered in our recent Mobile Life study.
Looking at the fixed device versus the unfixed device, mobile phones remain the preferred form for communication, navigation and music, while the PC is favoured for browsing, multimedia editing and shopping.
The tablet being mobile, but not portable to the same extent as the mobile phone, finds 68% of its usage in the home by Australian users, primarily for similar activities to those conducted on a PC, such as media consumption. Sales of wifi only iPads were estimated at 60-70% in 2010 indicating that the tablet’s mobility is taken advantage of at home more often than out and about.
Reading eBooks emerges as the one key activity where tablet preference is stronger than PC or mobile. The space that the tablet appears to be tailored for is the transition between PC and mobile – the occasions where consumers want a rich multimedia experience or convenient information and communication tool that can go with them on less complicated trips, whether that be to the couch or bed, or the commute to work.
But Apple, Google and co appear to have other ideas. Apple says it’s taking what it has learnt from tablets to refine its Mac OS, and Google has announced it will build an operating system that will span all computing forms, to be called ‘Ice Cream Sandwich’. These developments point to a further evolution still to come for the tablet, where current PC operating systems integrate into the more flexible, instant on, portable tablet style. It’s looking like we will see a ‘super tablet’ emerge with the ability to perform all the tasks of a PC and slot into a docking station for use at work or in the home. ASUS have dabbled with the idea with their eePad Transformer, which docks into a laptop keyboard for more intensive tasks.
With their high growth potential, tablets are deserving of the hype that they’ve attracted. In responding to the opportunity they represent, brands need to look beyond the hype and find a way to add value to consumers’ lives on the tablet. Those who make the move onto tablets will be well placed to gain when the next phase of the tablet evolution arrives.
Sources: TNS Mobile Life, AdMob, isuppli.com, BTrax, ZDNet, Forrester, Nielsen, Ogilvy
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The Apple factor
August 16th, 2010
When the iPad was first released, it came with the tagline ‘A magical and revolutionary product at an unbelievable price’. Apple wanted us to believe that $629 for the base model was low for a tablet device. And many of us did. However, with dozens of competitors releasing tablets at much lower prices (Pioneer’s DreamBook is currently available for $230) and a raft of fakes available for next to nothing, we should see scrutiny of iPad’s price point begin to increase.
But will it matter? The launch and advertising buzz generated has succeeded in raising awareness, with 61% of the general Australian population aware of what the device is compared to 45% pre launch. Fifteen percent of Aussies state they intend to purchase an iPad in the next six months. Awareness and consequently purchase consideration of competitors in comparison is far, far lower. We tested purchase consideration of Asus and Dell models – only 1% or less are considering investing in these in the near future.
Apple’s advertising campaign appears to be moving perception of the device in the right direction. Criticisms of overlooked features and compatibility issues have died down in the media, and our recent Consumer Electronics Study points to the iPad carving out a future market for tablets beyond traditional Windows/Intel PCs. Post launch (measured in June) versus pre launch (April), consumers were…
What we’re seeing is the hype created by Apple, and the prestige associated with the brand, overriding more rational purchase drivers such as price and device capabilities. Apple recently announced that sales of the iPad had hit 3 million in the first 80 days of release. Alternatives such as the Dell Streak are making little impact.
The tablet form factor is still in its infancy; as it develops and more serious competitors emerge, iPad’s price point will come under greater scrutiny. How do consumers feel about having to pay for a second data plan for their tablets? Early indications are that it is not a concern with 3G models flying out the doors of retailers, maybe the excitement has made them overlook this.
So far, Apple’s impeccable timing together with the ‘Apple factor’ and huge hype has afforded the iPad an unopposed first cut at the tablet market. The next 12 months will be interesting as serious competitors emerge with arguably better functionality (allowing users to actually create content), e.g. Android based devices or the PalmPad from HP. Will the halo effect be enough to sustain iPad’s leadership?
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The gaming revolution
August 11th, 2010
The gaming market is undergoing a revolution. Globally, it is bigger than Hollywood and nowadays, three-quarters of Australians are regular[1] gamers. As expected, the percentage is higher among young people, but even so 67% of those aged between 50-64 claim to play some form of gaming on a regular basis. This figure has experienced rapid growth in the past five years. So, why has gaming suddenly become so much more attractive?
The Nintendo Wii can take a lot of the credit for the popularisation of gaming. It opened up gaming to non-geeks – you no longer have to be an RPG geek to pick up a controller and join in. Wii now leads the market with more than double (14%) the share commanded by Xbox (5%) or PlayStation (8%).
But Sony and Microsoft are hitting back, launching their own motion sensor platforms that claim to take the experience to the next level. Motion-sensor technology has also ushered in multiplayer gaming to the broader market, providing a more tactile and fun experience. Multi-player gaming will continue to grow, with mobile capability, improved broadband speeds and the appearance of social gaming networks. Apple has announced plans to join the social gaming fray with a social network gaming centre for the iPhone OS4. Linking with the App Store’s 50,000 gaming titles and iTunes’ membership base it will have tens of millions of potential gaming participants to draw upon.
Mobile gaming has been opened up by the smartphone revolution also – participants no longer need a specialised device in order to game. We expect to see gaming capabilities move up the pecking order as an influencer of future mobile handset purchase.
Gaming, whether at home on the console or PC or while out’n’about on the mobile, is now mainstream. It is almost equally as popular amongst young females as males, and older generations aren’t far behind. Multi-player gaming sessions on consoles can now last several hours at a time and it’s not just the PC purists doing it, but groups of families and friends also. Hardware manufacturers are jumping on the multiplayer bandwagon as a means of driving gaming further into the lounge room and the mobile space.
Apple’s Game Center is expected to be a hit with the more casual type of gamer as iPhone games are skewed towards titles that are light and not very time consuming. These types of players will not be familiar with online multi-player features such as matchmaking so it’ll be interesting to see if they do get hooked on the social gaming tools offered by Apple’s Game Center.
This, together with Sony and Microsoft’s motion sensor platforms, set the scene for continued growth and will put gaming back on the Christmas wishlist for 2010.
[1] Play some form of gaming on a monthly or greater basis.
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More informed but will they buy online? Consumers still choose bricks-and-mortar for technology purchases
March 17th, 2010
With constant improvement and innovation in the consumer electronic space, it is not surprising that more and more consumers are turning to online reviews, blogs, social networks and company websites to decipher what is the best product for them.
However, a recent survey by TNS shows that information searching is still yet to translate to purchases online for most electronic products. Approximately 70% of consumers who intend to purchase consumer electronic products in the next six months (see table) still believe they will purchase their wares via a major retail chain or department store.
Incidence of consumers’ purchase intention of electronic products via retail stores
| Product | Intend to purchase in next 6 months | Intend to purchase at bricks-&-mortar |
| Plasma TV | 6% | 81% |
| Home theatre | 5% | 80% |
| LCD | 9% | 78% |
| LED TV | 5% | 76% |
| Digital camera | 4% | 74% |
| DVD recorder | 6% | 72% |
| Blu-ray | 8% | 72% |
| DVC | 8% | 64% |
| Gaming console | 7% | 54% | Laptop computer | 8% | 51% |
Whilst consumers are becoming more informed tech shoppers, they still desire the reassurance and guidance bricks-and-mortar retailers offer. The tactile nature of consumer electronic items deters consumers from purchasing online. They want to be able to see the physical nature of the product, to be confident it is what they’re looking for.
Furthermore, despite using an average of 3.3 sources in the decision-making process, most still need assistance decoding product specifications, highlighting the power of the frontline salesperson. With a more informed customer base coming into the store, the salesperson is placed under greater pressure to be knowledgeable and up-to-date, and provide recommendations. They find themselves translating what the consumer has learnt from the internet and helping them arrive at the best solution for each customer’s need.
Top 3 sources used to aid in purchase of consumer electronic products
| LCD TV | Plasma TV | Blu-ray | Laptop | |
| 1 | Staff in retail store (59%) | Staff in retail store (69%) | Staff (63%) | Company websites (53%) |
| 2 | Brochures/leaflets (51%) | Recommendations from friends and family (54%) | Recommendations from friends and family (48%) | Recommendation from friends and family (48%) |
| 3 | Recommendations from friends and family (50%) | Brochures/leaflets (51%) | Websites, blogs (42%) | Staff (46%) |
With these facts in mind, it is imperative that retailers still invest in front line employee training to build product knowledge, and demonstrate that they are a trusted advisor able to filter the abundance of information sourced from the web.
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