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Vox Populi:

State of the Media


Democracy Survey
Australias media usage and preferences 2012

Contents

Foreword

About this survey

Key findings

Entertainment

Media devices

13

Internet

19

Advertising

24

Newspapers and magazines

32

References

36

Relevant Deloitte thought leadership

37

Authors

38

Contacts

39

Foreword

What are Australian consumer habits when it comes


to media consumption and how will they change?
What are consumer preferences and attitudes towards
future technology? Do Australians consume media
differently to people in other countries? What are
the specific challenges that Australian companies
are facing as they anticipate and respond to these
preferences and behaviours?

This survey is part of a Deloitte research project which


was conducted across the globe in 2011, covering
Australia, France, Germany, India, Japan, Spain,
the United Kingdom, and the United States.
In Australia, data gathering, performed by an
independent research organisation, obtained usage
and preference data from over 2,000 Australian
consumers across five distinct demographics.

The first edition of our State of the Media Democracy


survey provides unique demographic insights into how
Australian consumers are currently interacting with
technology, purchasing products and responding to
TV and online advertising.

We are constantly fascinated by changing consumer


behaviours and how they are impacting our clients
representing material challenges and opportunities.
We remain committed to working closely with our
clients to help them stay ahead of these dynamics so
their businesses can respond appropriately.

These observations and insights are relevant to all


companies grappling with the challenges of engaging
new and existing customers and audiences via new
platforms, devices and media.
This survey considers:
Consumer usage and preferences for traditional
and emerging media devices and platforms
The evolving adoption of mobile devices
Reactions to conventional and next generation
advertising
Emerging customer preferences and the
implications for advertisers, content producers,
distributors, developers and device manufacturers.

We hope you find this report useful and we look


forward to doing it all again next year so we can
report on how things have shifted.

Damien Tampling
Clare Harding
Partner Partner
National Leader
Consulting
Technology, Media
Technology, Media
& Telecommunications
& Telecommunications

About this survey

Focussing on four generations and five distinct age


groups, the survey aims to provide a reality check
on how consumers between the ages of 14 and 75
(as depicted in Figure 1) are interacting with media,
entertainment and information.
Undertaken by an independent research organisation
between 09 November 2011 and 08 December 2011,
the survey employed an online methodology to
obtain usage and preference data from over 2,000
Australian consumers.

Additional insights for this report were derived from


Deloitte Technology, Media and Telecommunications
(TMT) specialists who work every day with leading
Australian companies in these sectors.
Where appropriate, we have also included insights
and findings from the research conducted by other
Deloitte member firms around the globe as part of
the State of the Media Democracy report.

Figure 1. Consumer groups surveyed

Trailing millennials
Age:1422

Leading millennials
Age: 2328

Xers
Age: 2945

Boomers
Age: 4664

Matures
Age: 6575

Vox Populi: State of the Media Democracy Survey

Key findings

In a world of more content,


more connectivity, more
devices and more interaction,
some home truths remain the
same and we still love TV
This survey reveals a number of key themes, including:
The continuing importance of live TV,
notwithstanding the growing importance of
my time, my choice viewing
The continuation of platform convergence and
the challenges of achieving a consistent brand or
product experience across platforms and devices
The importance of anticipating consumer
preferences to curate the right content
for consumers
The rise of the tablet and the early signs that is it
displacing laptop usage in certain circumstances.
Consumers are doing more of everything converting,
shifting, viewing and sharing. This explosion of
digital-based behaviour is driving complexity and
uncertainty for all companies both those that
do and dont currently engage with customers via
digital channels. What is certain is that the younger
generations we surveyed are unsurprisingly engaging
digitally and in ways which have never been conceived
of before. What is surprising is that in a number of
cases older generations too have vigorously adopted
digital media for certain activities.
The investment choices and operating model decisions
of all companies will inevitably be affected by this
digital complexity. The challenge is to anticipate what
is most important to your customers and, therefore,
grasp how to build new capabilities to retain brand
loyalty and revenue in a world of exploding choice
and competition.
Entertainment
A total of 63% of Australians surveyed prefer to watch
TV content, on any device, more than any other form
of entertainment. This is followed closely by using the

Internet (47% of respondents) for social or personal


interests. Compared to international consumers
surveyed, Australias preference for watching TV is less
than that for consumers in the US, Germany, Japan
and the UK and Australians also use the Internet less
for entertainment purposes than observed in most
other countries, except for Germany and Japan.
Watching live TV on a home system remains the
significantly favoured method for watching TV content
across all age groups. In Australia, 64% of consumers
surveyed typically watch their favourite programs in
this way, followed by Online (19%) and via a Personal
Video Recording (PVR) device (11%). This suggests
that the TV schedule is still guiding viewing choices
and that for most people, the allure of TV is still tightly
linked to the passive nature of viewing they can sit
back and be entertained on a large format device in
the comfort of their own home. TV as we currently
know it retains social currency or the water-cooler
factor, whereby viewers are attracted to major TV
events as a mechanism for social inclusion.
Australians are, however, watching more of their
favourite TV shows on the road via smartphones and
tablets, with 12% of those surveyed having watched
TV shows on online devices such as smartphones,
tablets and portable games consoles. This behaviour is
currently skewed heavily towards Trailing and Leading
Millennials, but we expect this behaviour to shift up
the age brackets in coming years. In Australia, 4%
of respondents watch TV on a tablet, which places
Australian respondents third behind India and the
UK in the countries surveyed. We would expect this
rate to increase in coming years, especially as the
penetration of tablet devices increases.
The majority of Australians (60% of respondents) are
multi-tasking while watching TV. While it may be fair
to assume that audiences have always multi-tasked
by reading, cooking or eating while watching TV,
what is true now is that six of the seven top
multi-tasking behaviours occur on another
electronic device. The challenge for organisations
is to engage consumers further by creating
interactive opportunities, which are linked to
the content, either on the TV or on other devices.

Media devices
According to the survey, Australia has one of highest
smartphone and tablet penetration rates worldwide
(46% and 13% respectively). A weak economic outlook
and low consumer confidence might be expected to
reduce consumer spending on discretionary items such
as new TV sets or tablet computers; but this has not
happened. In fact, tablet sales skyrocketed in Australia
in 2011 and tablet penetration is expected to triple over
the coming years. Australian consumers are increasingly
using smartphones and tablets as legitimate substitutes
for more longstanding entertainment and productivity
devices, such as the laptop.

Advertising
TV advertising is still the most influential form of
advertising on consumer buying decisions in Australia
(68% of respondents), followed by newspapers (53%)
and online advertising (47%). The affinity of Australian
consumers with TV advertising is broadly consistent
with global trends, with the exception of Japan, where
online advertising is the most influential on consumer
buying decisions.

The importance of platform convergence, consistent


branding and customer experiences across multiple
channels is increasing as more Australian consumers
use multiple devices to consume media. We would
also anticipate an increased role for cloud-based,
online storage as consumers increasingly attempt
to shift content between devices.

Nevertheless, consumer behaviours such as ad-skipping


on Digital Video Recorders (DVRs) and TV viewer
multi-tasking are potential catalysts to reduce the
influence of TV advertising over time. Advertisers
have the opportunity to rethink ad design and to
incorporate the small screen of smartphones, tablets
and laptops into the big screen viewing experience
of the TV. We believe the challenge is to shape the
multi-tasking behaviour into a multi-tasking experience
built around the product being advertised, increasing
consumer engagement with the brand or product and
maintaining advertising effectiveness in an environment
of attention saturation.

Internet
According to the survey results, the Internet is the
second most-preferred type of media entertainment
and continues to challenge TV and traditional forms
of entertainment for consumers time and attention.
Millennials and Boomers have an even more pronounced
preference for spending time online via portable devices.
The most common activity on the Internet across
all age groups surveyed is using search engines as a
gateway for other activities, such as seeking product
reviews or comparing prices.
Online reviews and recommendations are particularly
influential factors in buying behaviours. Although
seeking product information online is equally popular
across all age groups, Millennials and Xers are more
influenced by online reviews and recommendations
than older generations. The global survey data shows
this Australian finding to be consistent with findings
in other participating countries (with the exception of
Japan), with consumers overseas even more influenced
by online reviews. The majority of Australian consumers
surveyed had also learned of a new product for the
first time online or made a purchase decision based on
an online review.

This is consistent with and reinforces our view that TV


remains a powerful force in entertainment consumption
and a powerful ingredient in most advertising budgets.

While industry spending on online advertising


has increased, our survey reveals that newspaper
advertising remains a more influential form of
advertising in Australia than other forms of advertising
including online. One reason for this is that 69% of
Australian consumers perceive online ads as more
intrusive and, therefore, less effective than other forms
of advertising.

Vox Populi: State of the Media Democracy Survey

Respondents have
demonstrated a desire
to receive more targeted
advertising, but paradoxically
dont want to share the
personal information
that would facilitate
better targeting
We believe this presents both an opportunity and
challenge to advertisers and the need to reassure
consumers regarding the security of privacy in online
environments will become more pronounced in
coming years.
Newspapers and magazines
As evidenced by the survey, the majority of
Australian consumers still prefer the print format
and value their newspaper subscriptions far more
than online newspapers and magazines. However,
newspaper content is increasingly being consumed
in different formats and on different devices, with
58% of Australian respondents having done so in a
format other than the traditional printed hard copy.
This adoption of non-printed hard copy forms of
newspaper consumption is consistent with the US,
France and the UK, ahead of Germany,
but significantly behind India and Spain.

Opportunities exist for newspaper providers and


advertisers to connect with consumers across multiple
platforms and provide an integrated content or brand
experience. The challenge for Australian publishers is
the same as that being experienced throughout the
globe how to move consumers from paid print to
paid digital content and whether consumers will
demonstrate a willingness to pay for online content
that they have, to date, been able to access for free.
From our observation, topic depth, in-content verticals
which incorporate search capabilities, exclusive and
differentiated online stories and inherent content
portability are the key to driving consumers
online adoption.

So many options,
but were still
in the main
couch potatoes

Vox Populi: State of the Media Democracy Survey

Entertainment

Nothing
can beat the
internet for
entertainment
purposes
Trailing millennials

TV is fun but
the Internet
provides me with
more variety and
interest
Leading millennials

Both TV and
computers
offer me
valid forms of
entertainment
Xers

The Internet
is useful but
TV offers me
more relevant
entertainment
options
Boomers

Traditional
media provides
me with all the
entertainment
I need
Matures

61% choose
82%

72% use

prefer computers to TV for


entertainment purposes

mobile phones for


entertainment

using the Internet


for social and
personal interests
in their top three
entertainment
categories

56% chose
70% prefer computers
to TV for entertainment

17%

Only
chose listening to the
radio in their top three

watching TV on any
device in their top
three entertainment
categories

64% chose
60% think that the

49% use their

computer is more an
entertainment device than TV

mobile/smartphone as
entertainment device

watching TV on
any device in
their top three
entertainment
categories

67%
46%

Only
prefer their
computer over their TV

73%
place
watching
TV in their top three
entertainment categories

chose
watching TV
on any device in their top three
entertainment categories

39% place reading


newspapers in their top three
entertainment categories

6%

Only
use mobile
phones for
entertainment

51% value reading the


newspaper for entertainment

TV rules, OK?
Australian respondents prefer to watch TV content,
on any device, more than any other form of
entertainment. This is followed closely by using
the Internet for social or personal interests.
Figure 2. Ranking of preferred sources of
entertainment
Preferred sources of entertainment among all Australian
consumers surveyed. Please rank your top three.

63%

Watching TV (on any device)


47%

Using the Internet for social or personal interests

Reading newspapers (either printed or online)

30%

Reading books (either physical books


or via an e-book reader/online

29%

Listening to the radio (any format/device)


Reading magazines (either printed or online)

Figure 3. Methods used to watch favourite TV show


How do you typically watch your favourite TV shows
using the following methods?
64%

35%

Listening to music (using any device)

Going to the movies

Live TV remains the most popular


method of content delivery
Watching live TV on a home system remains the
number one method to watch favoured content
across all age groups. It is preferred by over 50%
of Millennials and 70% of Boomers and Matures.
Watching TV via DVRs is equally popular across all age
groups with a slighter higher percentage within older
age groups.

25%
22%
18%

Attending live performances (sporting events,


concerts, or stage (musical, dramatic or other)

16%

Playing videogames (handhelds, PC, console,


mobile/cellular/smartphone, online)

15%

For Australian Trailing Millennials, the use of the


Internet for social or personal interest is the preferred
entertainment source (61% of respondents),
while older generations of Australian consumers
prefer reading newspapers (51% of respondents)
and books (35% of respondents) over using the
Internet for social or personal reasons.
Compared to international consumers surveyed,
Australian respondents preference for watching TV is
less than that of consumers in the US, Germany,
Japan and the UK. Australians also use the Internet
less for entertainment purposes than observed in most
other countries, except for Germany and Japan.

19%

Live TV Online
system

11%
DVR

9%

9%

DVD/ Other
Blu-ray

3%
On
demand

Of the respondents surveyed, Australia trails the US


and UK in DVR usage, with 31% of U.S. consumers
and 23% of UK consumers watching their favourite
TV shows on a DVR device, compared to 11% of
Australian consumers. Although the use of DVR is
challenging live TV, it is currently a distant number
three for Australian consumers.
Additionally, consumers in all other surveyed countries,
except for Germany and Japan, watch more TV
online (i.e. source TV content via streaming,
video-on-demand and legitimate or illegal
download sites) than Australian consumers.
This preference for live TV on a home system possibly
relates to the social currency of TV or the water-cooler
factor, whereby viewers are attracted to major TV events
in part as a driver of social inclusion. Further, TV still
remains principally a push service, whereby viewers are
largely passive in their relationship with TV content and
enjoy the benefits of having a content curator assemble
and schedule programming for them. Compounding
this in Australia is a lack of emergent alternatives to
traditional TV, such as IPTV players like Hulu. We wonder
how quickly this may change given younger generations
relatively higher usage of online platforms and the
proliferation of content platforms and devices.
Vox Populi: State of the Media Democracy Survey

Online is an increasingly popular platform on


which to watch broadcast TV or movie content
Online sources, namely a TV shows Internet site,
video-sharing sites, peer-to-peer networks and free
online video services now account for 19% of the total
of methods used to watch TV or movie content. There
is a significant difference among Australian consumers
with the adoption of the online platform between
Millennials and other age groups. Millennials (39%)
use an online platform to view TV content on a weekly
basis, which is twice as much as Xers (20%), nearly six
times more than Boomers (7%), and 20 times more
than Matures (2%).

New broadcast content is being discovered via


TV commercials and programs
Overall, 73% of Australians surveyed discovered
their favourite TV show via TV commercials and TV
programs, while 11% of consumers gain information
on new TV shows through online reviews, advertising,
recommendations or social networking sites. Younger
generations are more influenced by information
provided online, with almost 20% of Millennials
discovering TV shows online compared to 6% of
Boomers and 3% of Matures. The percentage of
Australians discovering their favourite TV show online
is higher than in the US, France, Germany and the UK.

Figure 4. Online methods used to watch favourite


TV show
How do you typically watch your favourite TV shows
using the following methods?

Figure 5. Method of discovering favourite TV show


How did you first discover your favourite TV show?

14%
11%
10%

10%

9%

9%

7%

6%

5%

3%
2%
Show's
Internet site

2%
Video-sharing
site

5%
1%
Online P2P
network

35%

Offline recommendation
from another person

8%
4%

9%

Online review

4%

Print review

4%

1%

Online recommendation
from a person

3%

Free online
video service

Print advertising

3%

Trailing millennials
Leading millennials
Xers
Boomers
Matures

Consumers in most other countries surveyed,


specifically in the US and India, view more TV via free
online video services than consumers in Australia,
while online peer-to-peer networks seem to be
more popular in Australia than in all other countries
surveyed, except Spain and India.

38%

TV commercial
By chance while watching
other TV programming

On a social networking site

2%

Online advertising

2%

Tablets and smartphones are the commuters


portable DVR
A total of 12% of Australian consumers we surveyed
have watched TV shows on online devices such as
smartphones, tablets and portable games consoles.
9% of Trailing Millennials surveyed and 5% of Leading
Millennials have watched their favourite TV show on
their smartphone compared with only 1% of Matures
having used this device to watch TV. Australian
consumer behaviour is consistent with most other
countries, except India, where 16% of all respondents
have used their smartphone to watch TV.
Only 4% of Australian consumers (based on the survey
group) have watched TV on their tablet. Comparing the
different age groups, Xers have watched TV on tablets
most (6% of Xers compared with only 4% overall).
Australia is ahead of most other countries surveyed,
with only India having a higher percentage of
consumers watching their TV shows on tablets.
Given the relative immaturity of the tablet market,
we might expect this rate to increase rapidly over the
coming years to at least the same levels as equivalent
smartphone usage.
In 2012, tablets and smartphones can be thought of
as portable playback devices with commuters catching
up on their favourite TV shows on their way to work
or otherwise on the go. With all of this content being
taken out of the living room onto the road (or across
the water), content creators and distributors will have
to think smarter about catering to multiple devices to
attract and retain market share.

60% of Australians are multi-tasking while


watching TV
It may be fair to assume that audiences have always
multi-tasked while watching TV, such as by reading,
cooking or eating. What is true now, based on our
survey, is that most of the top multi-tasking behaviours
are occurring on another electronic device.
This presents a challenge and an opportunity to
programmers and advertisers. How do they retain the
attention of viewers in a world of potentially endless
distraction so that programming and advertising
continues to be compelling? What can be done to
provide a greater meshing of programming and
advertisements across devices to drive multi-tasking
around the core content being broadcast?
In some cases, programmers are using traditional
forms of content interactivity such as audience voting
(which only 4% of respondents are using) in concert
with social or viewer-community offerings (e.g. tweets,
posts and groups), micro-sites with exclusive content
and integrated game experiences based on fandom.
Figure 6. TV watching multi-tasking behaviours
Which are things you typically do while watching
your TV?
Nothing else just watching TV

40%

Email read, write, send or receive

29%

Go online surf websites,


general Internet use

28%

Spending time on a social networking site

In 2012, tablets and


smartphones can be
thought of as portable
playback devices with
commuters catching
up on their favourite
TV shows on the go

20%

Reading a print magazine,


newspaper or book
Using a social networking site to
communicate real-time with friends
Using downloadable applications on
my smartphone or mobile device
Participate by phone or the Internet with
something that is currently on my TV

18%
15%
7%
4%

Vox Populi: State of the Media Democracy Survey

10

The challenge for organisations is to engage consumers


further by creating interactive opportunities, either on
the TV or on other devices, linked to their content. An
example of this in Australia is the ABC program Q&A
which enables viewers to engage in the content pre-,
during- and post-program via their website, Facebook
and Twitter.
Improved, integrated content offerings that encourage
in-program multi-tasking will extend content reach
from the TV to small screen devices and help to defend
advertising revenues. A good example of an integrated
content offering is Channel 7s Fango app. App users
can, for example, check in to a show, chat with fellow
fans and vote on action in real-time will polls.
Figure 7: Examples of integrated content offerings
Example: ABC Q&A

Source: www.abc.net.au

Example: FANGO

Source: au.fango.yahoo.com

11

The challenge for


organisations is to further
engage consumers by creating
interactive cross platform and
multi-tasking opportunities
The big questions
How do I leverage the popularity of live TV
at home to other online devices, especially in
light of increased online adoption by younger
generations?
How can I best integrate different platforms
to improve and extend the programming and
advertising offerings?
Do I need to upgrade my technological
capabilities in order to execute a
multi-platform strategy?
What are the rights implications of a potential
increase of online viewership of my content?
How can I incorporate online interactivity into
my current TV offering?

We love smartphones,
but not necessarily for
their smart features

Vox Populi: State of the Media Democracy Survey

12

Media devices

My phone can
be used to do
almost anything
Trailing millennials

I want the
ability to live my
life on the go
at all times
Leading millennials

I like that my
phone can be both
a communication
and an
information
provider
Xers

Phones have
useful features
but I dont
need to be
online 24/7
Boomers

I really only
need a phone
to contact my
family and
friends
Matures

13

63% use their phone to


update social networking pages

73% access the Internet on


their mobile phone

53% use the Internet on


their phone on a weekly basis

70% use their mobile


phones digital camera

97% use their mobile


phone to talk and 80%
use it to text message

23%

But only
use
it to purchase products

49%

And
use their phone
for online banking

88%
text message
on a weekly basis

53%

And
like to view
photos and video on their phone

10%

But only
have ever
downloaded an application

Our love affair with smartphones continues


Based on our surveyed population, Australia has an
average smartphone household penetration of 46%.
The highest penetration of smartphones can be seen
in the Millennials demographic group, with almost
60% owning smartphones compared to only 35%
of Boomers and 18% of Matures, respectively.
Smartphone penetration in Australia is the
second-highest among international participants
in this survey, outstripping the US, France, Germany,
Japan, Spain and India.
Figure 8. Product ownership
Which of the following media or home entertainment
equipment does your household own?
73%

Laptop/netbook computer
Flat Panel TV (LCD or plasma)

71%

Digital camera or camcorder

71%

Desktop computer

70%

Radio (traditional AM/FM radio)

60%

Mobile/cellular phone (basic phone)

59%
57%

Standalone DVD player

46%

Smartphone

43%

Videogame/console system
Portable music/video player

25%

Standalone Blu-ray disc player

15%

Blu-ray disc player in gaming console

14%

Australian consumers are starting to use the wider


smartphone functionality available, for example, nearly
60% of Millennials also use their smartphone at least
weekly as a device for viewing and taking photos.
Given the steady improvement in smartphone camera
quality and increased storage capacity, it is likely
that smartphones will become more popular with
consumers and may even become the preferred digital
camera device.
Figure 9. Smartphone uses
Of the features on your mobile/cellular phone that
you do use, please list how frequently you use them?
(Weekly +)
86%

82%
44%

42%

41%

29%

Digital Video Recorder

Internet-enabled TV

We have assumed that this is partially based on historic


mobile phone usage behaviours (i.e. those activities and
uses of a phone with which consumers are most familiar)
and the availability of locally relevant apps. The survey
data also suggests this limited usage may be driven
by the associated costs for data usage, with 18% of
consumers indicating that they do not use smartphone
Internet access because it is too expensive. That said,
the perception that Internet access on a smartphone
is too expensive is markedly lower in Australia than
observed in the US, Spain, Germany and India.

39%

Non-flat panel TV

Tablet

Although smartphones provide a significant amount of


functionality, their usage in Australia is still dominated
by voice and text messaging.

13%
10%

Talking
on the
phone

Text
Internet Viewing
messaging access
photos
or video

Digital
camera
(still
pictures)

Although similar levels of Australians and U.S.


respondents access the Internet on their smartphone
(50%), Australian consumers use less email and online
search than U.S. consumers on their smartphone.
Acquiring new apps conversely seems to be more
popular in Australia than in France, Germany,
Japan and Spain.

Vox Populi: State of the Media Democracy Survey

14

Tablet sales skyrocket in Australia


More than 1.4 million tablets were sold in Australia
during 2011, which represents a total estimated
revenue of $1billion1,2. Of Australian households
surveyed, 13% own at least one tablet and 31% of
tablet owners think their tablet is the most valuable
product relative to other media devices.
Tablet adoption is nearly equally distributed across
all age groups in the survey. Xers have the highest
percentage of ownership (16% of respondents)
followed by Leading Millennials and Trailing Millennials
with 13% and 14% of respondents, respectively.
Australia, together with the US, has the second-highest
tablet penetration among participating countries,
after India with 15%. In our view, the main reasons for
the success of the tablet across all demographics and
globally are the size of the screen, the quality of the user
interface and the apps, which provide an enormous
number of possibilities to consumers.
In our Deloitte Technology, Media and
Telecommunications Predictions report, we forecast
that in 2012, 5% of all tablets will be sold to
individuals or households that already own a tablet,
which equates to five million tablets worth between
$1.5 and $2 billion in revenue.3 Although this
represents a small percentage of total tablet sales,
given that the tablet market is only three years old it
likely marks the most rapid multi-anything market
penetration in history.
Smartphones and tablets as substitutes
While the laptop is the most commonly owned product
or device across all age groups in Australia, it remains
to be seen if its importance will change due to the
increasing penetration of smartphones and tablets.
In 2012, we are seeing a wave of new, feature-packed
smartphone and tablet devices enter the market.
The rate of improvement in these devices is such
that users are increasingly seeing them as legitimate
substitutes for more longstanding entertainment
and productivity devices, such as laptops.

15

Accordingly, a very high proportion of smartphone


and tablet users have used these devices as
alternatives to their laptop, even when at home.
For example, 42% of tablet owners have used their
tablet at home instead of their laptop, while more
than 50% of Leading Millennials and 24% of Matures
use their tablet at home as a laptop substitute.

Figure 10. Smartphone and tablet substitution


for laptops
In the past six months, have you ever used your
smartphone/tablet as a replacement for your laptops
functionality?
42%

51%

46%
30%

Used my
tablet as a
replacement
for my
laptop,
while at
home

Used my
tablet as a
replacement
for my
laptop while
away from
home

Used my
smartphone
as a
replacement
for my
laptop,
while at
home

Used my
smartphone
as a
replacement
for my
laptop
while away
from home

42% of tablet owners have


used their tablet at home
instead of their laptop

Figure 11. Devices used to make purchases


Which of the following have you used to make a
purchase in the last year?

Desktop computer

49%

Laptop/netbook computer

44%
21%

Home phone

16%

Smartphone
Television

8%

Videogame/console system

5%

Tablet

5%

None of the above

Radio remains prominent in Australia


Although music and radio shows can be consumed
on multiple devices, traditional AM/FM radio remains
important in Australia. A total of 60% of survey
respondents own a traditional AM/FM radio, which
is a higher percentage than respondents owning a
portable music/video player (39% of respondents) such
as an iPod or an MP3 player. Over 70% of Boomers
and Matures have a radio and the percentage of
radio owners is higher amongst Leading Millennials
(56% of respondents) than Trailing Millennials (42% of
respondents) and Xers (50% of respondents).
The percentage of Australian consumers owning a
radio is higher than in most countries surveyed other
than the UK, US and Spain.

15%

With the success that the tablet has achieved in


the corporate sector and assisted by the ongoing
improvement in productivity applications for tablets
e.g. exemplified by the much anticipated launch of
the Microsoft Office suite for iPad we believe these
levels and patterns of usage will likely continue and
even increase.

Unbounded shifting of content and online


storage will become more important
Consumer responses indicate that the integration
and convergence of media on multiple devices
will continue to gain momentum in the future.
For example, 63% of all Australian consumers would
like to view online content on their TV good news
for Internet-enabled TV manufacturers and retailers.
Interestingly, 39% of the survey respondents
categorised the ability to move music, TV shows,
movies etc. to any platform or device they own
as extremely desirable. This was observed most
significantly among Trailing and Leading Millennials,
with over 56% of respondents finding this technical
capability desirable.
Besides a shift to small screen viewing (e.g. TV movie
content on tablets), we think that the unbounded
shifting of content between devices and online
storage services will become important capabilities
for TMT businesses in the near future.

Vox Populi: State of the Media Democracy Survey

16

Consistent branding and customer experience


across multiple channels will be critical for
Australian companies
With the emergence of new devices, additional forms
of interaction have been created, such as apps for
smartphones and tablets, providing different layouts
and content based on form-factor and operating
systems. This creates additional challenges in creating
a consistent brand and customer experience across all
channels and media devices.
While the capabilities required to achieve truly
consistent and engaging experiences for consumers
are still developing, companies have an unprecedented
opportunity to communicate with consumers at
anytime, anywhere.

17

The big questions


What is my smartphone and tablet app
strategy and how can I create a consistent
branding experience across multiple channels?
How can I increase my revenues or better
structure costs through the integration of
multiple channels?
How can I best incorporate tablets and
smartphones into my daily business to
increase productivity?
What are the security implications for the
business use of mobile devices?
How do I create the technological standards
and capabilities to enable multi-device
content access?

The Internet is
entertaining us
everywhere

Vox Populi: State of the Media Democracy Survey

18

Internet

I want to be
able to share
whats going
on in my life
at all times
Trailing millennials

I want to save
time by doing
things online
Leading millennials

I like being
able to find any
information
that I need
Xers

I can use
the Internet
to discover
products I never
would have
known about
Boomers

The Internet
is primarily just
a tool to find
facts and useful
information
Matures

19

28%

Only
email friends
and family almost every day

18%
amount of time
spent online via
a smartphone

53% use social networks to


communicate with friends

55% learned of a new


product for the first time online

53% are using search


engines almost every day

53%

But
socialise on
networking sites almost every day

52%
have used a
laptop to make
an online
purchase

61%
use search engines
almost every day

21% have used a


smartphone to purchase
something in the past year

38%

But only
maintain a
social network profile

The Internet is second only to TV as the most


popular form of entertainment media
Across all age groups in Australia, using the Internet
for social or personal interests (47% of all respondents)
lags only watching TV content on any device (63%
of all respondents) as respondents preferred type
of media entertainment. Trailing Millennials are
the exception with 61% of respondents within this
demographic group identifying the Internet as their
primary source of entertainment.
Internet use is going mobile, especially with
younger and middle-aged consumers
Using search engines is the most common daily
Internet activity across all age groups, followed by
reading local news and emailing.

Millennials and Xers prefer to spend time online via


portable devices (e.g. smartphones, tablets, laptops)
while stationary devices, especially the desktop
computer, are the preferred devices within the age
groups of the Boomers and Matures. Overall, 7%
of time spent online on stationary devices is spent
on TV and games consoles. While the percentage
of respondents spending their time online via a TV
is similar across age groups, games consoles are, as
might be expected, more popular with the Trailing and
Leading Millennials.
Comparing the daily Internet activities of Australian
consumers to global data, Australian consumers
surveyed read less news, watch less TV and seek less
personal interest information online than consumers in
most other countries. Surprisingly, although Australia
and sport go hand in hand, Australian consumers are
reading/watching less sporting content online than in
any other surveyed country.

Spain

Japan

India

Germany

France

US

Activities

Australia

Figure 12 online activities


How often would you say you are doing the
following online activities? (% everyday/almost
everyday (57 days/week))

Using search engines

59% 63% 68% 58% 72% 65% 79%

Reading about local news, weather or current events

39% 46% 44% 39% 51% 29% 55%

Reading national/world news, weather or current events

37% 43% 46% 39% 48% 42% 56%

E-mailing with friends or family

38% 40% 45% 31% 60% 32% 53%

Socialising (via social networking, chat rooms, message boards)

28% 32% 10% 15% 50%

Watching TV programs

21% 28% 20% 25% 46% 25% 25%

Instant messaging with friends or family

24% 24% 32% 16% 58%

Seeking personal interest information

18% 22% 28% 19% 39% 24% 40%

Watching/listening to content created by others

15% 21% 15% 14% 40% 18% 28%

Reading/watching sports content

13% 19% 14% 15% 39% 16% 28%

7% 37%
4% 46%

Seeking product reviews, conducting shopping research

9% 13% 14% 10% 28%

9% 16%

Online gaming

6%

8%

9%

8% 11% 20%

Vox Populi: State of the Media Democracy Survey

7%

20

Figure 13 Share of online time


Thinking about all the time you spend online with
each of the following types of devices, please enter
the percentage of time you spend online with each.
52%

48%

3%
4%

3%
10%

45%
35%

Stationary

Portable

Desktop computer
TV
Games console/handheld
Laptop/netbook
Mobile device/phone
Tablet

Online reviews and recommendations are highly


influential factors in buying behaviour
In total, 56% of Australian respondents across all age
groups had learned of a new product for the first time
online and 43% of respondents purchased a product
based on an online review or recommendation.
Although seeking product information online is
equally popular across all age groups, Millennials
and Xers are more influenced by online reviews
and recommendations than older generations. The
global data shows this to be consistent with other
participating countries (with the exception of Japan),
with consumers overseas even more influenced by
online reviews.
Survey data indicates that Trailing Millennials are three
to five times more likely than Boomers and Matures
to engage in Internet-based socialising activities.
Combined with the influence of information online,
this suggests campaigns that seed or promote viral
marketing via online social channels are likely to have
a greater response rate than traditional above-the-line
campaigns for this particular demographic.

21

The online retail experience is going mobile, evidenced


by 41% of shoppers having checked competitors
prices on their smartphones while in a retail store4.
Consumers are more informed than ever and
traditional retailers will need to rethink how they can
respond to these behaviours to support and augment
the in-store retail experience.
Self-publication is less popular in Australia
than in other countries
Although Australian consumers are highly influenced
by online reviews, only 15% of respondents have
experience in writing product reviews for review or
e-commerce sites.
This is low in comparison to international behaviours
observed in this survey. On average 27% of consumers
surveyed in other countries write product reviews,
with as many as 28% in Spain (the second highest)
and 40% in India (the highest).
Survey respondents indicate concern with sharing
personal information online, as only 25% of all
respondents are willing to provide more personal
information online in exchange for targeted
advertising. However, 18% of Australians surveyed
are active in personally contributing to another
persons blog and 11% maintain their own blog.
The survey results also show that self-publication is a
behaviour observed across all age groups, with 15% of
Boomers and 12% of Matures currently contributing to
a blog; meanwhile 5% of Boomers and 4% of Matures
have their own blog.
Self-publication in terms of contributing to and
maintaining blogs is even more popular in other
countries such as the US, India, Japan and Spain.

Total

Trailing
millennials

Leading
millennials

Xers

Boomers

Matures

Figure 14 User-generated content behaviours


Please indicate your experience with each of
the following

Maintaining my social networking site (Facebook etc)

60%

76%

71%

64%

50%

38%

Communicating in real time with others via my social networking site

50%

68%

60%

53%

40%

29%

Posting comments to online communities, message boards or online forums

32%

39%

39%

37%

25%

23%

Adding comments or postings to news articles or special nterest stories I read on the Internet

27%

33%

32%

28%

22%

17%

Uploading my own photos to a photo sharing site.

21%

31%

31%

21%

13%

11%

Contributing to a blog (not my own) by adding comments or postings

18%

28%

21%

16%

15%

12%

Writing product reviews on review sites, e-commerce sites, blogs etc.

15%

15%

18%

18%

11%

7%

Communicating with others via micro-blogging (Twitter, Yammer etc.)

14%

28%

19%

16%

8%

3%

Maintaining my own blog (Web log) for others to read about myself and my opinions

11%

22%

17%

11%

5%

4%

Uploading my own videos to a video sharing site

11%

23%

19%

11%

4%

3%

Uploading my own game content (e.g.levels, films, music, other) to a console or a


PC games environment

11%

22%

16%

11%

5%

3%

There is demand for faster Internet speeds


and greater network efficiency
Currently, 21% of overall respondents watch TV
content on the Internet daily. Although the percentage
of Young Millennials watching TV online is the highest,
14% of Boomers and 17% of Matures are also
watching TV programs online.
In comparison, the percentage of Australians watching
TV online is the lowest of participating countries
other than France. One reason for low Australian
adoption is existing Internet speed. Over half of
survey respondents would view more videos from the
Internet if their downloads finished more quickly and
they would be willing to pay extra to have the fastest
available connection.

21% of respondents watch TV


content on the Internet daily

Australian consumers are conditioned to use the


Internet within a capped bandwidth model, distinct to
Internet products currently offered by Internet Service
Providers (ISPs) in other countries (e.g. in Europe, Asia
and the Americas). With the National Broadband
Network (NBN) and the availability of 4G rolling out
over the coming years, Australian ISPs product offerings
and consumers usage are likely to change in the future.
The big questions
How can we more effectively measure the
outcomes of online campaigns, especially
those delivered in a social media context?
How can I integrate online into my business
to provide customers with a richer shopping
experience?
What implications does a more informed
shopper have on my pricing strategies?
Have we fully considered how best to take
advantage of the NBN and availability of 4G
for our organisation?

Vox Populi: State of the Media Democracy Survey

22

If the TV said so,


it must be true!

23

Advertising

Unobtrusive
targeted
advertising gets
my attention
Trailing millennials

Printed ads are


more appealing
than cheap
online versions
Leading millennials

I like advertising
that helps me to
learn new things
about myself and
my family
Xers

I dont mind
online advertising
from search
engine results
that help me find
information
Boomers

I prefer printed
advertising but
can be influenced
by search
engine results
Matures

63% still believe TV is

67% still enjoy reading

among the most influential


advertising mediums

printed magazines despite being


able to find the same info online

32%

62%

Only
are influenced by
ads on social networks

pay more attention


to print ads in magazines
than online advertising

73% are highly

75%

influenced by TV advertising

enjoy reading printed magazines

69% are highly influenced

48% are influenced by

by newspaper advertising

interactive online advertising

81%

58% find unsponsored

are highly influenced by


newspaper advertising

search engine advertising


influential

Vox Populi: State of the Media Democracy Survey

24

TV advertising remains the most influential on


consumer buying decisions
As illustrated by Figure 15, TV advertising is still
considered the top influencer amongst all age groups
followed by newspapers and online advertising.

Despite the influence of TV advertising, consumer


behaviour such as ad-skipping and multi-tasking
is emerging as a potential catalyst to reduce the
influence of TV advertising over time.
Figure 15. Most influential advertising channels
across all platforms
When you encounter advertising in the following
media, which three have the greatest influence on
your buying decision?

While this is especially true for Xers and Boomers,


with more than 72% of each group stating that TV ads
have the greatest influence on their buying decisions,
it is also true for the youngest of respondents, with 63%
of Trailing Millennials responding in the same way.

68%

TV

The affinity of Australian consumers with TV


advertising is broadly consistent with global trends,
with the exception of Japan where online advertising
is the most influential on consumer buying decisions.
This reinforces our view that TV remains a powerful
force in entertainment consumption and a powerful
ingredient in most advertising budgets.

53%

Newspapers

47%

Online

45%

Magazines
Radio

29%

Billboard or
outdoor

17%

25

Australia

US

France

Germany

India

Japan

Spain

Figure 16. Influence of overall advertising


When you encounter advertising in the following
media, which three have the greatest influence on
your buying decision?

TV

68%

81%

66%

68%

64%

72%

69%

Newspapers

53%

38%

38%

50%

63%

47%

46%

Online

47%

52%

40%

50%

53%

88%

49%

Magazines

45%

43%

50%

52%

32%

41%

44%

Radio

29%

25%

26%

25%

8%

6%

30%

Billboards or outdoor advertising

17%

15%

39%

21%

15%

9%

23%

In-theater advertising

12%

12%

17%

12%

9%

6%

13%

DVDs/Blu-ray Discs

9%

12%

6%

5%

7%

5%

4%

Mobile/cellular/smartphone

9%

9%

7%

9%

34%

19%

11%

Videogames

6%

7%

8%

4%

7%

3%

6%

Downloadable app on mobile device

3%

3%

2%

2%

6%

2%

2%

Tablet

2%

3%

1%

1%

4%

2%

2%

Ad-skipping is one of the main reasons that


Australians use DVRs and 60% of all surveyed
consumers admit to multi-tasking while watching TV.
While Trailing Millennials are spending more time on
social networking sites, text messaging with friends
or doing homework, Leading Millennials and Xers
prefer reading/sending emails and surfing online while
watching TV.

60% of all surveyed


consumers admit to
multi-tasking while
watching TV

In global comparison, multi-tasking while watching TV


is even more common in the US, Japan and the UK,
with surfing online identified as the most popular activity.

Figure 17. Reasons why consumers use DVRs


Please rate each item below to identify the best uses
for your DVR? Summary of Top/Very best use
54%
51%

The freedom to
watch my shows
on my own schedule,
rather than at the
scheduled time

The ability to
record all my
favourite shows,
ensuring that I
never miss an
episode

51%

The ability to
fast-forward
through
scheduled
time commercials

We think that there are two main opportunities here.


First, advertisers could rethink ad design to make
advertising messages more accessible during
fast forwarding to retain effectiveness. Second,
advertisers could seek to incorporate and synchronise
the small screen of smartphones, tablets and laptops
into the big screen viewing experience of the TV.
The challenge is to shape the multi-tasking
behaviour into a multi-tasking experience built
around the product being advertised, increasing
consumer engagement with the brand or product
and maintaining advertising effectiveness in an
environment of attention saturation.

Vox Populi: State of the Media Democracy Survey

26

Total

Trailing
millennials

Leading
millennials

Xers

Boomers

Matures

Figure 18. Multi-tasking while watching TV


Which are things you typically do while watching
your TV?

Nothing else just watching TV

40%

35%

38%

37%

44%

52%

Email read, write, send or receive

29%

27%

33%

37%

25%

15%

Go online - surf Websites, general Internet use

28%

30%

36%

35%

21%

9%

Spending time on a social networking site

20%

34%

28%

23%

12%

4%

Read a print magazine

18%

11%

15%

18%

19%

26%

Read a print newspaper

18%

9%

11%

16%

25%

28%

Read books

18%

16%

14%

18%

19%

21%

IM or text messaging with friends

17%

32%

24%

19%

7%

5%

Talk with others on a land line phone

17%

13%

9%

18%

23%

18%

Talk with others on a mobile/cellular/smartphone

16%

21%

19%

18%

11%

8%

Using a social networking site to communicate with friends

15%

25%

20%

18%

7%

3%

Do homework/work for your job

14%

32%

20%

15%

6%

3%

Purchasing products online

12%

8%

20%

18%

7%

3%

Play videogames (any platform)

9%

15%

13%

10%

6%

1%

Watch YouTube or other video streaming sites

8%

13%

12%

10%

4%

2%

Listen to music

8%

15%

14%

7%

5%

3%

Using downloadable applications on my smartphone or mobile device

7%

11%

12%

8%

3%

1%

Participate by phone or the Internet with something that is currently on my TV

4%

5%

6%

6%

2%

3%

Micro-blogging

3%

5%

4%

3%

1%

0%

Figure 19. Consumer preferences


Please indicate how much you agree or disagree
with the following statements? Among total
Australian consumers surveyed summary of
agree strongly/somewhat
I enjoy reading printed magazines even though I know
I could find most of the same information online

72%

I find any type of Internet ad to be more intrusive


than print advertisements in newspapers

69%

I find any type of Internet ad to be more intrusive than print


advertisements in magazines
I tend to pay greater attention to print advertising in
magazines than advertising on the Internet
I tend to pay greater attention to print advertising
in newspapers than advertising on the Internet

27

67%
64%
63%

Newspaper ads command greater attention


than online ads
Newspaper advertising is still very influential on
consumer buying decisions, with 63% of consumers
surveyed paying greater attention to these ads than
those online. The survey reveals very similar results
across all age groups even younger demographic
groups such as Trailing Millennials (56% of respondents)
and Leading Millennials (60% of respondents) pay
greater attention to print advertising than to
Internet advertising.
Compared to other countries, only Indian consumers
are more heavily influenced by newspaper ads than
Australians.
Search result advertising is the most influential
form of online advertising
Australian survey respondents across all age groups
listed sponsored and unsponsored search result
advertising, along with banner advertising, as the
three most influential forms of online advertising on
their buying decisions.

Additionally, 42% of respondents consider


interactive advertising that provides information
and/or entertainment, such as answering a quiz,
to be influential on their buying decisions. Especially
influential in the Trailing Millennials surveyed are new
forms of advertising, such as advertising associated
with downloaded apps on mobile devices and
advertising on social networking sites.
Search engine advertising, interactive advertising
and advertising on apps on mobile devices are more
popular in Australia than in most other countries.
Video-based pre-roll and post-roll ads are currently not
very influential on consumer buying decisions, ranking
fifth and tenth in terms of relative influence. As more
video content is consumed online, advertisers may pay
more attention in future to making these ads more
compelling and therefore effective.
Figure 20. Influence of online advertising
Thinking now about advertisements you encounter
online, which three have the greatest influence on
your buying decision? (Summary of ranked number 1)

Unsponsored search engine result advertising

21%

Sponsored search engine result advertising

21%

Banner advertising

17%

Advertising I interact with that provide


information/entertainment (e.g. answering a quiz)

14%
6%

Pre-roll advertising (ones you must view first before viewing a video)
Pop-Ups (ads that pop-up or scroll across
your screen before you view content)

5%

Advertising associated with games played on websites

5%

Advertising embedded in videos (on the screen while a video is playing)

4%

Advertising associated with downloadable apps on my mobile devices

4%

Post-roll advertising (additional information that is provided after a video)

3%

Vox Populi: State of the Media Democracy Survey

28

Online ads are perceived as more intrusive


69% of survey respondents in Australia find online
ads intrusive compared to print advertising.
Although this is consistent with the global trend,
Australian consumers surveyed find Internet ads
more intrusive than respondents in the US, Germany,
Japan and Spain.

Of the surveyed countries, Australians show the


second-greatest discomfort, behind UK consumers,
with having their web browsing activity tracked so
they could receive more targeted advertising.
Indian consumers are three times more likely to
share personal information than Australian
consumers for this purpose.

Paradoxically, opportunities exist to optimise Internet


advertising, as demonstrated by 62% of Trailing
Millennials and over 50% of Leading Millennials
and Xers reporting that they would click on more
advertising if it was targeted to their needs.
Additionally, in line with global survey data, 54% of all
respondents would be willing to expose themselves
to more online advertising if in exchange they could
receive free content that they found valuable.

We believe that this presents presents an interesting


paradox for Australian advertisers. Consumers have
indicated a willingness to consume more advertising
if the ads speak more directly to their individual
needs, but at the same time a significant majority are
reluctant to share more information which would
facilitate that better targeting of ads. In order to
resolve this conflict, the online advertising community
has an incentive to provide greater reassurance to
consumers regarding the collection, use and security
of collected personal information.

UK

Spain

Japan

India

Germany

France

US

Figure 21. Attitudes towards Internet advertising


Please indicate how much you agree or disagree
with the following statements Summary of agree
strongly/somewhat
Australia

While consumers are demanding more targeted content,


they are concerned about the privacy risks associated
with sharing personal information. Only 25% of all
the respondents are willing to provide more personal
information online in exchange for targeted advertising.

I find any type of Internet ad to be more intrusive than print advertisements


in newspapers

69% 63% 77% 60% 74% 54% 65% 70%

I would willingly be exposed to more online advertisements if it meant I could


receive free content that I found valuable

54% 56% 50% 49% 82% 56% 69% 48%

I would click on more Internet advertising if it was targeted to my needs

47% 49% 48% 34% 84% 74% 57% 33%

I would rather pay for online content (news, information, sports, games, social
interaction sites, movies, music, and TV) in exchange for not being exposed to
advertisements

30% 30% 26% 25% 66% 14% 35% 23%

I would be willing to provide more personal information online if that meant I could
receive advertising more targeted to my needs and interests

25% 27% 31% 18% 70% 22% 39% 16%

I am comfortable with having my web browsing activity tracked so that I could


receive advertising more targeted to my needs and interests

21% 21% 31% 25% 66% 30% 33% 15%

29

My parents parents are on Facebook?


In Australia, social media has a big impact on all age
groups. This is true not only of younger generations,
but also for older generations with 42% of Boomers
and 34% of Matures surveyed finding social media
networking a good way to satisfy their social needs.
Indeed, 25% of Boomers and 22% of Matures
surveyed think that the time spent interacting with
friends on social media sites is as valuable as spending
time in person.
While 22% of all consumers surveyed responded that
advertising on social media networking sites influences
their buying decisions, social media advertising is
less influential on older generations. Only 11 % of
Boomers and 6% of Matures recognise that this
form of advertising has an impact on their buying
behaviour. One reason for this could be that current
social media advertising is more targeted towards
younger consumers than older generations.

The big questions


TV advertising remains the most influential
form of advertising on buyer decisions,
followed by Newspapers and Online.
As an advertiser, how well do you incorporate
the small screen of smartphones, tablets
and laptops into the big screen viewing
experience of the TV?
In what ways can ads be redesigned to
remain effective and influential despite
DVR ad stripping behaviours?
How do we create greater confidence in
the security of personal information
collected online so we can better target
ads to consumers?

In international comparison, social media advertising is


more influential in Australia than in France, Germany
and the UK, while it is less influential in Australia than
in India, Spain and the US.
Figure 22. Attitudes towards social networking
Please indicate how much you agree or disagree with
the following statements
When I need to connect with
my friends, I think that social
networking sites, IM and texting are
a good way to satisfy my needs

42%
34%

The time I spend interacting withm friends


electronically through IM, texting or social
networking sites is just as valuable as time
we spend together in person
Advertising on social networking sites
influences my buying decisions more
than any type of online advertising

25%
22%

11%
6%

49%
46%

74%
65%

85%

60%

39%
32%
24%

Trailing millennials
Leading millennials
Xers
Boomers
Matures

Vox Populi: State of the Media Democracy Survey

30

Consumers are adopting


emerging technologies,
but still prefer printed
hard copy

31

Newspapers and magazines

I like the idea


of print media
but convenience
wins out
Trailing millennials

Traditional
media is nice
but digital media
is the way
of the future
Leading millennials

I still find
pleasure in
immersing
myself in hard
copy media
Xers

I definitely prefer
print media but I
could be convinced
to move online
Boomers

I cant imagine
not being able to
read a hard copy
newspaper
Matures

54% prefer reading


hard copy newspapers

30%

But only
read a hard copy
newspaper on a weekly basis

70%

18% have
bought an e-reader

32% like reading


newspapers on the computer

74% prefer to read


hard copy newspapers

And
of those consumers find
themselves buying more
books than previously

13%

But only
like reading magazines
on the computer

58%

But only
find
themselves actually reading a
hard copy newspaper each week

1%

95% prefer reading


magazines in hard copy form

And
use
a smartphone
to read
magazines or
newspapers

Vox Populi: State of the Media Democracy Survey

32

Matures

60%

Printed
hard copy

48% 30%

31% 45% 58% 73%

40%

Computer

31% 25%

35% 34% 30% 29%

Smartphone

7%

7%

11% 10%

3%

1%

Tablet

4%

2%

4%

7%

2%

Mobile/
cellular
phone

3%

4%

6%

3%

1%

MP3 player

1%

2%

2%

E-Reader

1%

1%

2%

2%

1%

1%

20%
0%
Total

Trailing
Leading
millennials millennials

Xers

Boomers

Mobile/cellular phone
Tablet
Smartphone
Computer
Printed hard copy

47% of respondents
have consumed content
in a non-printed hard
copy format

33

Boomers

80%

Xers

Total

100%

Leading
millennials

Figure 23. Method used to read favourite newspaper


Of the methods you use to read your favourite
newspapers, which is your favourite?

However, newspaper content is increasingly being


consumed in different formats and on different
devices, with 47% of Australian respondents having
done so in a format other than the traditional printed
hard copy. This adoption of non-printed hard copy
forms of newspaper consumption is consistent with
the US, France and the UK and ahead of Germany,
yet significantly behind India and Spain.

Figure 24. Method used to read favourite newspaper


How do you typically read your favourite newspapers
using each of the following methods? (Weekly +)

Trailing
millennials

Print retains dominance.for how long?


Consumption preferences for newspaper content
reveal that printed hard copy is still favoured by 64%
of Australian consumers when compared to digital
and emerging technology media. Unsurprisingly, older
generational segments are well represented, with 74%
of Boomers and 83% of Matures surveyed indicating
that printed hard copy remains their preferred method
to read newspapers.

Matures

Of non-printed methods, PC-based usage dominates


with little variance to the 31% average across all age
groups. Smartphone and tablet-based consumption
currently constitute 7% and 4% of all respondents,
respectively.
This usage pattern is due to the increasing penetration
of smartphones and tablets and the introduction of
non-print offerings of local publishers. It is likely that
these devices will become more popular as alternatives
and complements to hard copy formats.

Opportunities exist for newspaper providers and


advertisers to connect with consumers across multiple
platforms and provide an integrated content or brand
experience. This is demonstrated by 68% of Australians
surveyed visiting a website as a result of a newspaper
advertisement and 67% as a result of magazine
advertisements. The print medium, in the short term
at least, continues to be important for media buyers
and advertisers alike. Declining circulation and
readership might also be offset by being able to sustain
advertising revenues through greater insight to reader
behaviours in potentially more valuable niches.
Growing the subscription pie
Newspaper subscriptions are highly valued by
Australian consumers with 53% of respondents
ranking it in their top three most valued household
purchased services ranking only behind Internet
access (in various forms), mobile voice services and
Pay TV, with online newspaper and magazines trailing
far behind. Older age groups value their newspaper
subscription particularly highly, with 59% of Boomers
and 72% of Matures identifying their newspaper
subscription as one of their top three most valued
compared to 29% of Millennials and 55% of Xers.

Figure 25. Examples of successful integration of


online and print media
Net-A-Porter from website to online magazine
(app based)

Source: www.net-a-porter.com

Shop till you drop from magazine to website and


online magazine (app based)

The print to digital value debate


The challenge for Australian publishers is the same as
that being experienced throughout the globe how
to move consumers from paid print to paid digital
content and whether consumers will demonstrate
a willingness to pay for online content that they have,
to date, been able to access for free.
Opportunities do seem to exist for newspaper players
to shift customers from paid print to paid digital due
to an existing online customer base and willingness to
pay for ad-free content. A total of 39% of Australian
respondents already read about local news, weather
or current events online, with little variance between
age groups, and with even 42% of the print-loving
Matures surveyed using online as a news source.
Additionally, many respondents would rather pay for
online content in exchange for not being exposed to
ads; specifically, 38% of Millennials, 31% of Xers, 23%
of Boomers and 30% of Matures.
The top product factors in the survey which drive
paid digital adoption are topic depth, exclusive and
differentiated online content and inherent portability.
The rich online media experience that can integrate
short-form video content, search product information
and purchase functionality while still maintaining
editorial and design standards has the potential to
compete with and potentially replace print. Good
examples can be found in the magazine sector, such
as the evo online magazine for tablets with integrated
video, 360-degree photography and interactive content.
Additionally, environmental drivers for digital
consumption exist with reduced paper consumption
also identified by 46% of respondents as a key driver
of purchase behaviour.

Source: www.shoptilyoudrop.com.au

Evo from magazine to online magazine

Source: www.evo.co.uk

Vox Populi: State of the Media Democracy Survey

34

Figure 26. Factors in buying an electronic version


of a newspaper or magazine
How much influence would the following have on
your decision to purchase the e-reader version of a
magazine or newspaper? (Extremely/very influential)
The ability to search other content
on the topic (i.e. prior articles)

47%

Access to additional stories not offered in the regular


printed version of the newspaper or magazine

47%

The e-reader version of the magazine or newspaper


allows me to consume less paper

46%

The e-reader version of the magazine or newspaper gives me the ability to


read a much wider variety of content than I could typically carry with me in

46%

Video that supplements stories in the magazine or newspaper

41%

The e-reader version of the magazine or newspaper reduces


the weight I have to carry

41%

The ability to purchase/view information about goods


and services mentioned in the article
Ability to view interactive advertising with videos
and links to websites for more information

32%

Ability to add my own opinions/comments on


the articles for other readers to see

31%

The big questions


How can I move consumers from paid print to
paid digital?
What does the optimal product mix look like?
What are the customer preferences when it
comes to apps and online magazines?
How can I create a consistent branding and
customer experience across all channels?
What are the implications on my
operating model?
Do my resources need a different skill-set to
serve customer preferences?
How can I identify and manage the different
technology requirements?

35

39%

References

1. Telsyte (2011): Media tablet study 2011


2. IBIS Report (2011): Computer and Software Retailing in Australia
3. Deloitte (2012): Technology, Media & Telecommunications Predictions 2012
4. Deloitte (2011): The next evolution Store 3.0

Vox Populi: State of the Media Democracy Survey

36

Relevant Deloitte
thought leadership
Technology, Media & Telecommunications Predictions 2012
Published January 2012
www.deloitte.com/au/tmtpredictions
Tech Trends 2012 Elevate IT for digital business
Published February 2012
www.deloitte.com/au/techtrends
Does TV Now present a potential rights game changer?
Published February 2012
www.deloitte.com/view/en_AU/au/industries/tmt/3f8df9563ddb5310VgnVCM1000
001956f00aRCRD.htm
Move quickly to capitalise on online retail
Published October 2011
www.deloitte.com/view/en_AU/au/industries/tmt/8304026885ce2310VgnVCM200
0001b56f00aRCRD.htm
Connected Continent
Published August 2011
www.deloitte.com/au/connectedcontinent
www.deloitte.com/au/mediademocracy
www.deloitte.com/au/tmt
www.deloitte.com/au/tmtinsights

37

Authors

James Taylor
Director
Consulting
Technology, Media & Telecommunications
email: jamestaylor@deloitte.com.au
Tel: +61 2 9322 7513

Nicola Alcorn
Director
Consulting
Technology, Media & Telecommunications
email: nalcorn@deloitte.com.au
Tel: +61 2 9322 7984

For more Deloitte thought leadership on issues and opportunities in the technology, media and
telecommunication sectors please visit www.deloitte.com/au/tmtinsights

Vox Populi: State of the Media Democracy Survey

38

Contacts

39

Damien Tampling
Partner
National Head, Technology,
Media & Telecommunications
Tel +61 2 9322 5890
dtampling@deloitte.com.au

Dennis Moth
Partner
Risk Services
Tel: +61 2 9322 7897
dmoth@deloitte.com.au

Clare Harding
Partner
Consulting Strategy
& Operations
Tel: +61 2 9322 5205
clharding@deloitte.com.au

Dean Kingsley
Partner
Risk Services
Tel: + 61 2 9322 7415
dkingsley@deloitte.com.au

Stuart Johnston
Partner
Consulting
Tel: +61 3 9671 6518
stujohnston@deloitte.com.au

Sandeep Chadha
Partner
Assurance & Advisory
Tel: + 61 2 9322 5033
sachadha@deloitte.com.au

Jamie Pride
Partner
Consulting Online
Tel: +61 2 9322 3464
jpride@deloitte.com.au

Tracey Rens
Partner
Tax
Tel: +61 2 9322 7599
trens@deloitte.com.au

David Cooper
Partner
Corporate Finance
Due Diligence
Tel: +61 2 9322 5783
davcooper@deloitte.com.au

Joshua Tanchel
Partner
Deloitte Private
Tel: +61 2 9322 7258
jtanchel@deloitte.com.au

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Deloitte
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