Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- Overview
- The issues
- Challenges posed by phones and televisions as central points of internet access
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- Figure 1: Use of smartphone, smart TV/streaming player to access the internet, February 2016-December 2017
- Shopping and research concentrated around Amazon/Google
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- Figure 2: Online shopping and research activities, December 2017
- Little expansion in core youth market
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- Figure 3: Weekly use of review sites, by age, December 2017
- The opportunities
- Voice interface
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- Figure 4: Use of smart speaker, smartwatch, car, hotspot, and earbud to access the internet, December 2017
- Brand engagement: focusing on youth, segmenting by gender
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- Figure 5: Use of branded apps and sponsored stories, by gender and age, December 2017
- Ramping up digital entertainment buys
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- Figure 6: Digital activities conducted at least weekly, December 2017
- What it means
The Market – What You Need to Know
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- Limited growth in desirable demographics
Market Factors
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- Growth in population of young adults limited
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- Figure 7: US population by age, 2013-23
- Households with children in decline
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- Figure 8: Households with related children, 2007-17
- Median income
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- Figure 9: Household income distribution, 2016
- Figure 10: Household income distribution, by age of householder, 2016
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- Figure 11: Subscriptions to podcasts, by household income, December 2017
Key Trends – What You Need to Know
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- Decline in PC usage
- Up and coming devices for internet access voice centered
- Access via phone and television rising
What’s Working?
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- Access via smartphone to require new organization systems
- Living room gains but remains entertainment-oriented
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- Figure 12: Use of smartphone, smart TV/streaming player to access the internet, February 2016-December 2017
What’s Struggling?
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- Access via PC falls
- Consoles flat
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- Figure 13: Use of computers and gaming consoles to access the internet, February 2016-December 2017
What’s Next?
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- Voice interface: Smart speakers, watches and connected vehicles
- Smart speaker sees historic growth
- Connected vehicles ready to mainstream
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- Figure 14: Use of smart speaker, watch, vehicle, hotspot, and earbud to access internet, December 2017
- Service providers need vehicle subs
- 5G to impact cable and fiber subs
The Consumer – What You Need to Know
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- Shopping vies with entertainment pursuits in popularity
- Mobile associated with leisure
- Short content: Less liked, still extensively used
- Different strokes for different sexes
- Discounting an alternative to Amazon/Google dominance
Digital Activities
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- Shopping, browsing, and video most common digital activities
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- Figure 15: Conduction of digital activities, December 2017
- Fun comes more regularly
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- Figure 16: Digital activities conducted at least weekly, December 2017
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- Figure 17: Digital activities conducted daily, December 2017
- Age central factor in frequency of digital activity
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- Figure 18: Digital activities conducted at least weekly, by age, December 2017
- Women and men are par for shopping and gaming
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- Figure 19: Digital activities conducted at least weekly, by gender, December 2017
Devices Used for Digital Activities
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- Desktop where we shop, mobile where we play
- Tablets for gaming
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- Figure 20: Correspondence analysis – Hardware used for online activities, December 2017
- Shopping, video popular across devices
- Branded apps critical
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- Figure 21: Hardware used for online activities, December 2017
- Young women, Moms lead mobile charge
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- Figure 22: Use of smartphone for video, music, shopping, and app downloads, by age and gender, December 2017
- Middle-income groups heavy in smartphone activity
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- Figure 23: Use of smartphone for video, music, shopping, and app downloads, by household income, December 2017
Attitudes to Free Video Content
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- Free video consuming
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- Figure 24: Interest in and use of video entertainment, December 2017
- Young men, Hispanics, middle-income groups lead
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- Figure 25: Interest in and use of free video, by gender and age, December 2017
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- Figure 26: Interest in and use of free video, by Hispanic origin, December 2017
- Figure 27: Interest in and use of free video, by household income, December 2017
Use of Podcasts
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- Attractive medium, but small audience
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- Figure 28: Subscriptions to podcasts, by gender and age, by marital status December 2017
- Figure 29: Subscriptions to podcasts, by number of children under 18 in household, December 2017
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- Figure 30: Subscriptions to podcasts, by location of residence, December 2017
Brand Engagement
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- Function comes before fun
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- Figure 31: Use of branded digital properties, December 2017
- Women want solutions
- Women lead in use of how-to videos
- Young women into apps, stories
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- Figure 32: Use of how-to videos, apps and sponsored stories, by gender and age, December 2017
- Men just want to have fun
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- Figure 33: Use of brand’s website, YouTube channel, and games, by gender and age, December 2017
- Parents engage
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- Figure 34: Use of branded digital properties, by parental status of children under 18 in the household, December 2017
- Urbanites more likely to use branded media
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- Figure 35: Use of brands’ digital properties, by area of residence, December 2017
Online Shopping and Research
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- Majority of shopping still conducted in-person
- Online, majority head straight to Amazon
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- Figure 36: Online shopping and research activities, December 2017
- Amazon’s dominance peaks with 45-54s
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- Figure 37: Use of Amazon and Google in shopping, by age, December 2017
- Online primary channel for many 18-44s
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- Figure 38: Online shopping and research activities, by age, December 2017
- Amazon go-to site across income groups
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- Figure 39: Use of Amazon and Google in shopping, by household income, December 2017
- Preference for online channel peaks among middle-income households
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- Figure 40: Online shopping and research activities, by household income, December 2017
- Parents top target for growing newer online categories
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- Figure 41: Online shopping and research activities, by gender and parental status of children under 18 in household, December 2017
- Parents subscribe to Amazon
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- Figure 42: Use of Amazon and Google in shopping, by gender and parental status of children under 18 in household, December 2017
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Correspondence analysis methodology
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Abbreviations
- Terms
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