Social and Connected Devices Are Influencing Purchases

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New research findings from a Nielsen online survey of respondents from 56 countries around the world provide insight into digital influences on grocery shopping behaviour. In the graphic above, trends show that consumers are using social media to help purchase decisions often through recommendations from friends or online reviews..

Nielson reports that one-third of the world’s population is online, an increase of 528 percent over the past 10 years. While Internet penetration rates vary by geographic region; North America (79%), Australia/Oceania (68%), Europe (61%), Latin America (40%), Middle East (36%), Asia (26%) and Africa (14%), they continue to climb steadily—especially in the developing countries of the world.

Connected devices, such as computers, mobile phones and tablets have become a way of life for many, but shoppers are digitally engaged to varying degrees depending on the products they buy. Nielsen examines how shoppers use connected devices (computers, mobile phones and tablets) to aid in their household grocery shopping.

Digital’s influence on grocery shopping is on the rise

  • Online shopping intentions for food and beverage categories
    increased 44% in two years
  • 6-in-10 global respondents used the Internet for grocery shopping research
  • Nearly half (49%)of respondents purchased a product online
  • Globally, 46% used social media to help make purchase decisions
  • 37% purchased from online-only stores most frequently

The influence of social media on purchase decisions is growing across all regions, albeit at varying levels. Globally, 46 percent of respondents said they used social media outlets to help make purchase decisions, a rise of three percentage points from 2010. North Americans were the least reliant on social media at 21 percent, but have increased their dependency by seven points. Asia-Pacific respondents were the most active social media users to aid purchase decisions at 63 percent, an increase from 60 percent two years ago.

Middle Eastern/African respondents increased their dependency on social media the most, rising 10 percentage points to 50 percent in 2011. Forty-four percent of Latin American respondents and 32 percent of European online users relied on social media to help make purchase decisions, an increase of five and two points, respectively.

Social media is levelling the playing field among the competition, allowing smaller brands to compete.  Marketers and brands need to focus and drive  satisfied customers to use online ratings and reviews to share positive experiences, but it is a two-way communication conversation and marketers must engage in active dialogue in keep customers engaged.

Shopper marketing tactics are changing and there are several ways to grow positive engagement levels. Whether customizing the message for the shopper, more narrowly segmenting shoppers, or delivering more ‘authentic’ messages in brand communications, savvy digital strategies must help personalize and integrate value-added content to improve the user experience. First, focus on the right shopper. Not everyone is going to use digital. Nielsen research finds that one-of-four shoppers are considered ‘Trendsetters’.

These are generally shoppers that love to keep ahead, try new things and tell others about them. They are typically younger compared to other segments, have children in the household and are a bit more affluent compared to the general population. Second, engage shoppers with the right message. ‘Trendsetters’ tend to be more digitally engaged, but that is still dependent on what they are buying.

Determine what activities are important to core shoppers and customize the offering. If shoppers are more dealcentric, provide coupon promotions. Third, connect with shoppers via the right medium. An increasingly complex landscape provides consumers with a wide array of choices. Marketers need to focus on the medium that provides the best return on investment. Think about product usage and devise strategies that speak to the needs of consumers.

Pair mobility with need and create apps that, for example, make it easier to create a shopping list, refill prescriptions or navigate a store. Whether the platform is online, mobile, social or in-store, prioritise the medium based on the impact it drives and the feasibility of deploying it.

 

Read and download Nielson’s full report below:

The iPad and the end of free online content?

After two months of promise and hype, Apple will finally ship its iPad tablet in the US in early April, and to other markets shortly afterwards. Apple’s new device hopes to make the consumption of digital media easier. The iPad is able to browse the web without the need for a keyboard or mouse. Movies and music can both seen and heard on the device. Even eBooks can be purchased from Apple’s new iBooks store. Marvellous.

However, from watching the video above, are consumers really willing to pay for online news and entertainment, that they currently get for free on the web today?

Nielsen recently asked more than 27,000 consumers across 52 countries, and the answer was ‘maybe.’ 85% of surveyed people prefer free content to remain free. However, participants did report, that many would consider paying for certain categories of digital content.

Looking at Nielson’s graph below, consumers are most likely to pay for movies, music, games and current TV shows. This is good news for Apple and other developers of Tablet devices. In contrast, consumers are least likely to pay for ‘user generated content’ such as podcasts and consumer generated videos and blogs.

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The success of the Apple’s iPad, will likely depend on whether everyday consumers are happy to trade in their existing books, magazines and newspapers for digital equivalents. These items have become somewhat of a commodity, and many people are happy to access content from a variety of online sources for example, Google News for free. However, Rupert’s Murdoch’s News Corporation, will soon charge for online newspaper content, ending the “free online news” culture that many observe on the web today. This will likely have a big impact on Google News, which currently aggregates free news content from Murdoch’s news empire.

It is interesting to note from Nielson’s research, that there is indeed a place for “paid digital content.” However, the content will need to be of a sufficient standard before consumers are willing to hand over their hard earned cash.

  • 78% of participants felt that if they already subscribe to a newspaper, magazine, radio or TV service, they should be able to access the online version for free.
  • 79% of participants stated that they would stop using a website, if it started levying charges to access content online.
  • 62% of participants stated that they should have “full control” over their purchased content. In other words, they want to be able to copy and share it with their friends and family. 

2010 will indeed be an interesting year for hardware devices and the content that powers them. Whether consumers are willing to ditch their newspapers and magazines for their digital counterparts, and pay for news content is still yet to be seen.  Newspapers and books are cheap, portable and don’t require batteries to power them. The same can’t be said about tablet devices! Also, I wonder how many people will actually travel around with these devices? I suspect many will end up living at home.

Will you be getting a tablet device this year?

You can read Nielson’s full report below


Nielson – Paid Online Content