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Digital Trends - Black Consumers - US - May 2017

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
The insights
Blacks’ purchase intent and desire for new tech eclipses the general market
Figure 1: Intent to purchase hardware and services, by all and Black, January and March 2017
Virtual reality devices may be seen as next generation gaming among Blacks
Figure 2: Interest in VR headsets, by all and Black, January and March 2017
Anywhere, anytime television and video choice drives advanced television ownership
Figure 3: Household ownership of TVs and streaming devices, by all and Black, January 2017 and March 2017 vs April 2015
Black men are the tech purchase decision makers in the household
Figure 4: Blacks’ household ownership of select technology products, by married/partnered men, March 2017
The opportunities
Showcase advanced functionality to fuel device upgrade purchases
Figure 5: Blacks’ interest in new tech – Select items, March 2017
Identify areas of desired efficiency and connectivity not met due to lack of device ownership
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Blacks are becoming a part of the digital mainstream
TV viewing across people in the home drive set ownership
EXPENDITURES ON TELEVISION, COMPUTERS
Blacks’ spending on televisions, computers and peripherals under par
Figure 6: Spending on televisions, computers, and peripherals, by all and Black consumers, 2015
THE BLACK POPULATION BY THE NUMBERS
Black population represents 13.3% of the total US
Figure 7: Total US and Black population estimates, 2012-22
60% of the Black population is a Millennial or younger
Figure 8: Distribution of generations by race, 2017
Black population will continue to skew female
Blacks more likely than other groups to live with adult family members
Figure 9: Family groups, by race and Hispanic origin, 2015
MARKET FACTORS 
Median household income of Blacks below $50K
Figure 10: US median household income distribution, by all and Black, 2015
The digital divide is closing, but many Blacks still do not have internet access at home
Figure 11: Broadband internet subscription at home, by race and Hispanic origin, 2013-15
Television viewing is Blacks’ leading leisure activity; gaming, computer usage lags behind the average
Figure 12: Time spent per day in leisure and sports activities, by race and Hispanic origin, 2015
MARKET PERSPECTIVE
Seven in 10 Blacks have home internet service
Blacks use the same providers as the general market, but with less fragmentation
Figure 13: Household internet service provider, by all and Black, October 2015-November 2016
Figure 14: Xfinity “X1 Triple Play” internet, television and cable bundled service offer, April 2017
Weekday and weekend internet usage mirror each other
Figure 15: Blacks’ household internet usage, by daypart, October 2015- November 2016
KEY TRENDS – WHAT YOU NEED TO KNOW 
Blacks are up to date on what new devices are available
Television set ownership indicative of higher-than-average viewership
Blacks’ screen time driven by produced content, but gaming is gaining traction
Device ownership increasing across traditional and new hardware
Low-cost mobile is bridging the internet connectivity gap among Blacks
More than half of Blacks visit Facebook every day
WHAT’S WORKING AND WHAT’S STRUGGLING?
Televisions
Blacks own more, yet smaller, televisions vs the average
Figure 16: Household television ownership and number of sets, by all and Black, October 2015-November 2016
Figure 17: Size of television in the household, by all and Black, October 2015-November 2016
Streaming devices gaining traction among Blacks
Figure 18: Household streaming device ownership and type, by all and Black, October 2015-November 2016
Single-function devices trending toward obsolescence
Gaming
PlayStation is the favorite system among Black gamers
Figure 19: Video game system ownership/playing status, by all and Black, October 2015-November 2016
Mobile
Blacks’ smartphone ownership on par with the average, but purchase cheaper phones
Figure 20: Smartphone ownership by brand, by all and Black, October 2015-November 2016
AT&T is the category leader, but Blacks are more likely to subscribe to discount carriers
Figure 21: Personal subscription to cellular/smartphone carriers, by all and Black, October 2015-November 2016
Blacks’ preference for cell service contracts influence when they will upgrade their device
Figure 22: Cell phone/smartphone contract type and expected device upgrade, by all and Black, October 2015-November 2016
Social
Facebook is number one among Black adults but platforms with culturally-relevant communities are preferred
Figure 23: Social media sites visited on a daily bases, by all and Black, March 2017
WHAT’S NEXT?
Blacks will upgrade existing devices, looking forward to the next big thing
Gaming is huge among Blacks, and the sky is the limit in engagement
THE CONSUMER – WHAT YOU NEED TO KNOW 
Blacks’ device use mirrors the general market
Mobile use rivals traditional computers across communication methods
Black men are the digital gatekeepers of the household
Black Millennials are tech enthusiasts and will drive future tech purchases
BLACKS’ PERSONAL TECH OWNERSHIP
Blacks demonstrate greater adoption of portable and entertainment devices
Figure 24: Personal ownership of technology products, by all and Black, January and March 2017
Ownership of all-in-one mobile devices on the rise
Figure 25: Blacks’ personal ownership of technology products, April 2015 vs March 2017
Device ownership similar by gender, but men gravitate to gaming and navigation
Figure 26: Blacks’ personal ownership of technology products, by gender, March 2017
Black Millennials drive new tech device purchases
Figure 27: Blacks’ personal ownership of technology products, by generation, March 2017
College-educated Blacks are more likely than other segments to own advanced tech devices
Figure 28: Blacks’ personal ownership of technology products, by educational attainment, March 2017
Black parents’ device ownership may be driven by kids’ educational requirements
Figure 29: Blacks’ personal ownership of technology products, by parent status, March 2017
BLACK HOUSEHOLDS’ TECH OWNERSHIP
Black household device ownership on par with the average, skews higher for gaming
Figure 30: Household ownership of technology products, by all and Black, January and March 2017
Ownership increases among all-in-one and add-on devices
Figure 31: Black households’ ownership of technology products, April 2015 vs March 2017
Partnered Black men are the tech enthusiasts in their household
Figure 32: Black households’ ownership of technology products, by Black men’s marital status, March 2017
Middle-income Black households most likely to own hardware to provide home entertainment for the entire family
Figure 33: Black households’ ownership of technology products, by household income, March 2017
BLACKS’ PURCHASE INTENT
Blacks’ love of tech fuels their desire for the most up-to-date offerings
Figure 34: Planned tech purchases in the next year, by all and Black, January 2017 and March 2017
Black men’s awareness of tech trends drive their purchase intent
Figure 35: Blacks’ planned tech purchases in the next year, by gender, March 2017
Black Millennials’ expectation of connectivity drive their purchase intent
Figure 36: Blacks’ planned tech purchases in the next year, by generation, March 2017
Single Black men want tech devices for themselves, married men want tech for the household
Figure 37: Blacks’ planned tech purchases in the next year, by gender and marital status, March 2017
Middle-income households’ tech purchase intent provides upgraded home entertainment options
Figure 38: Blacks’ planned tech purchases in the next year, by household income, March 2017
BLACKS’ METHODS OF ACCESSING THE INTERNET
Blacks are similar to the average in how they access the internet
Figure 39: Methods of accessing the internet, by all and Black, January and March 2017
Anytime, anywhere access has increased vs 2015
Figure 40: Blacks' methods of accessing the internet, April 2015 vs March 2017
Black men more likely to use advanced tech for online access
Figure 41: Blacks' methods of accessing the internet, by gender, March 2017
How Blacks’ access the internet differs by educational attainment
Figure 42: Blacks' methods of accessing the internet, by household income, March 2017
ONLINE ACTIVITIES AND DEVICES BLACKS USE
Devices primarily facilitate communication, but gaming and personal expression is important
Figure 43: Devices used for online activities – Any device, by Black and index to all, January and March 2017
Blacks’ device use is more varied vs the average
Figure 44: Devices used for online activities, by Black and index to all, January and March 2017
Black men create a space online to make their voice heard
Figure 45: Devices Blacks use for online activities – Any device for any personal expression, by key demographics, March 2017
Black Millennials dominate mobile use across all forms of online communication
Figure 46: Devices Black use for online activities – Tablet and smartphone, by generation, March 2017
BLACKS’ INTEREST IN NEW TECH
Blacks demonstrate a greater desire for new tech vs the average
Figure 47: Microsoft’s Kelsee and Nkeiru Explore Cortana on the HP Spectre x360 with Windows 10,” July 2016
Figure 48: Interest in new tech, by all and Black, January 2017 and March 2017
Multipurpose, smart technology leads the pack in desirability among Blacks
Figure 49: Blacks’ interest in new tech, March 2017
Black Millennials have the greatest desire to own, but older generations want to know what’s new
Figure 50: Blacks’ interest in new tech products, by generation, March 2017
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Consumer survey data
Direct marketing creative
Abbreviations and terms
Abbreviations
APPENDIX – KEY TRENDS
Figure 51: Household internet access, by all and Black, October 2015-November 2016
Figure 52: Household internet service provider, by all and Black, October 2015- November 2016
Figure 53: Internet usage by daypart, by all and Black, October 2015-November 2016
Figure 54: Smartphone ownership by brand, by all and Black, October 2015-November 2016
Figure 55: Personal subscription to cellular/smartphone carriers, by all and Black, October 2015-November 2016
Figure 56: Cell phone/smartphone contract type and expected device upgrade, by all and Black, October 2015-November 2016
Figure 57: Cell phone/smartphone expected device upgrade, by all and Black, October 2015-November 2016
Figure 58: Household television ownership and number of sets, by all and Black, October 2015-November 2016
Figure 59: Size of television(s) in the household, by all and Black, October 2015-November 2016
Figure 60: Household streaming device ownership and type, by all and Black, October 2015-November 2016
Figure 61: Video game system ownership/playing status, by all and Black, October 2015-November 2016

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