The rise of online media and its impact on the way Australians access information, entertainment, news, communications and transactional services has created a shift in consumer behaviour with wide reaching ramifications for the marketing and media landscape. While the Internet is no longer a ‘new media’, it has certainly created ‘new’ and fresh environments and opportunities for today’s businesses.
For brands and marketers, continued media fragmentation often makes it challenging to reach the right consumers. It does, however, also create more opportunities to reach them via targeted pathways with messages that resonate in a more contextual and personalised manner than ever before.
Consumers focus on four core connected devices to provide the bulk of their online engagement: desktops, laptops, mobile phones and tablets. New connected screens are emerging but are not yet mainstream. On the smaller side, wearable devices can be found in one in 10 online Australians’ households; while on the larger side, Smart TVs experienced double-digit growth in ownership (now 36%.)
Aside from strong growth in uptake of connected technologies that support ‘viewer experience’ like connected TVs, those that support ‘content convenience’ continue to rise. Personal ownership of a smartphone has increased for the fifth consecutive year, now in the hands of 76% of online Australians, and tablet computers are in 59% of homes.
Smartphones have become a dominant player in providing brands with a tool to deliver online content and experiences to highly targeted audiences. The mobile phone surpasses all other devices in reaching the most consumers in the morning and lunch hour with online content, it has grown in popularity as the ‘companion screen’ to TV viewing and we expect the smartphone to be in the hands, pockets and handbags of more than eight in 10 online Australians by year end.
The Big Movers in 2014
The convenience of video content on demand is appealing to Australian audiences. More online Australians than not, source at least some of their TV or movie content from online sources (55%); and while traditional delivery methods of video (i.e. broadcast TV) remain dominant, audiences are increasingly complementing their broadcast consumption with video on demand. The reach, time and frequency of viewing video on demand increased in 2014; and particularly among the youngest viewers (16-24 year olds), the gap in penetration of broadcast TV versus video on demand is increasingly narrow.
The appeal of obtaining video on demand content for free is evidenced by the popularity of ad-supported services like YouTube and the catch-up TV services on offer from the networks. A new supply of subscription video on demand services has, however, recently become available to Australians, and many viewers reveal an intention to start paying for their on demand content this year, perhaps excited by the prospect of Netflix, Stan and/or Presto. Such services could attract new category entrants and help grow the total video on demand market in Australia.
A movement toward subscription services highlights the need for advertisers to closely monitor their consumers’ video consumption behaviour (both online and traditional) in order to formulate the most effective strategies for reach and engagement via video content.
More Online Aussies Watching VOD than not
New retail habits continue to evolve and new opportunities emerge. Six in 10 online Australians have readily adopted contactless card payment methods in a relatively short amount of time; an entry level activity that will likely evolve into mainstream adoption of ‘mobile wallet’ behaviours.
The online channel has fast become a favoured source of consumer research due to the range and accessibility of information; consumers predominantly focus their online research on retailers’ websites or apps, but more are starting to look beyond the retailers and turn to the online content of manufacturers or brands, complemented by social media, comparison sites and video platforms.
This shift is indicative of the potential for brands to make better use of online media at the top of the conversion funnel, to drive consumer discovery and early consideration. The youngest generation of shoppers (16-24 year olds) lean more heavily on resources like online video and social media on their path to conversion, highlighting the emerging role of various formats and platforms as part of consumers’ decision making.
And finally, there are scarcely any online Australians who don’t purchase at least one item online over the course of a year and one in four online Australians make online purchases at least weekly.
Smartphones are Driving the 'New Retail' Landscape
About the Australian Nielsen Connected Consumers Report, 2015
The Nielsen Australian Connected Consumers Report 2015 is a one-of-a-kind industry tool to guide your business' marketing and media strategy in alignment with today's connected consumers. The comprehensive insights and data sets provide your business with a unique ability to identify core audience segments and deep-dive into their device and cross-platform content consumption, purchase behaviours and influences, and the way they interact with brands.
Having more than 17 years of historical data from the annual Nielsen Australian Connected Consumers report allows you to see how trends have changed as well as forecast what's around the corner-so you can capture and maximise the opportunities of this increasingly connected consumer.