How audiences use technology and its impact on their lives.

Student Number 76751318
Sarah Frame

Following on from your previous assignment, you are developing a reputation as
being knowledgeable in digital marketing. Now, the international interactive
media festival South by Southwest (SXSW) are interested in having you speak at
their next conference. They have asked you to prepare a presentation document
and short video pitch to give them an indication of your knowledge of how
audiences use technology and its impact on their lives.
Assignment 2

Introduction
Access to the internet has increased substantially over the years and has become more
accessible to the everyday consumer through a variety of digital devices.
These digital devices allow consumers to engage with and share content immediately and
has also changed the way consumers shop and search for information.
As of July 2020, almost 4.57 billion people were active internet users, which is 59% of the
global population (Statista, 2020). Over 90% of total internet users access the internet via a
mobile device (Statista, 2020) and this increasing trend in mobile internet users is changing
the way businesses focus on digital marketing.
This report analyses the trends that have come from the increasing accessibility to the
internet, and what predicted trends we can expect in the coming years.

Access to the internet
0
1,000,000,000
2,000,000,000
3,000,000,000
4,000,000,000
5,000,000,000
6,000,000,000
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
NUMBER OF INTERNET USERS
The internet has become more and more
accessible since the World Wide Web
launched in 1991. The biggest percentage
increase in users came between 1996 and
1998, however in terms of numbers of
users the biggest growth was in 2017,
with a growth of 460million users.
(Internet World Stats, 2020)
The current percentage of world
population who are internet users
continues to grow, and is now at 62%,
compared to 0.4% in 1995. (Internet
World Stats, 2020)
Number of internet users 1995-2020 (internet World Stats, 2020)

Access to the internet
Mobile cellular subscriptions are a key
factor in the growth of internet usage. In
2017, there were an average of 104
mobile cellular subscriptions per 100
people, compared to 3.65 per 100 just
20 years earlier in 1997 (Roser et al, n.d.,
see fig. 1)
In the UK, the biggest growth in mobile
cellular subscriptions came between
1997 and 2000, when the subscriptions
per 100 went from 15 to 73 (Our World
in Data, 2017, see fig. 1). This trend
matches the percentage of households
with mobile phones in the UK, which
grew from 16% in 1997 to 44% in 2000
(Statista, 2018). By 2002, 64% of
households had a mobile phone (Statista,
2018), which could be a direct result of
the launch of 3G in 2001.
Fig 1: Roser, M., et al. (n.d.) Mobile Cellular Subscriptions, 1960-2017 [graph]

Digital devices used by audiences
The four main devices used by
audiences to access the internet are
mobile phones, laptops/desktops,
tablets and gaming consoles. The
highest share of web traffic in 2020 is
mobile phones at 53.3% (Kemp, 2020,
see Fig. 2)
Device usage also depends on activity,
as in Europe in 2020, 66% of internet
users use their smartphone to check
the weather online compared to 38%
on a PC/laptop, however 49% of
internet users used their PC/laptop to
purchase a product online, compared to
40% who used a smartphone (Global
Web Index, 2020)
Fig 2: Kemp, S (2020) Share of Web Traffic By Device [graphic]

Digital devices used by audiences
33.0%
37.6%
39.2%
45.8%
49.5% 50.1%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Q3 2014 Q3 2015 Q3 2016 Q3 2017 Q3 2018 Q3 2019
Mobile's share of total internet time
+14% +4.3% +17% +8.1% +1.2%
Mobile’s share of total internet time 2014-2019 (Kemp, S, 2020)
As we have seen, mobile cellular
subscriptions are increasing year on year,
so it’s no surprise that the daily time that
internet users aged 16-64 spend using the
internet via mobile devices (as a
percentage of daily internet time) has
increased from 33% in 2014 to over 50% in
2019 (Kemp, 2020)

Fig 3: Vivid Fish (2017) Search Engine stats [graphic]
The easiest way consumers search for products online is via search
engines. 89% is a huge percentage of customers beginning their
buying process with a search engine (Vivid Fish, 2017, See Fig 3).
However, according to Google (2020) 76% of people who go online
enjoy making unexpected discoveries while shopping, and 86%
look for shopping ideas and inspiration. Almost 3 in 4 people agree
they are always on the lookout for brands and products that are
relevant to them (Google, 2020), and this is where relevant digital
advertising would be effective.
Consumers are routinely searching for products online, now that
mobile devices with internet are easily accessible. Search engines
are a popular way for consumers to search for information,
alongside price comparison websites, social networks, specialized
search tools (e.g. booking.com) or even via Amazon or eBay.
Consumers may also use bricks and mortar stores in their
searches.
How customers search for information

When it comes to search engines, consumers focus mainly
on the top search results, with 75.1% of clicks being
attributed to the top 3 Google organic search results
(Dean, 2019, see Fig 4). Moving up just one position in
Google searches increases click through rate (CTR) by
30.8% (Dean, 2019).
Search engines are widely used because they offer ‘search
personalization’ (CMA, 2017). This means that two
consumers searching with the same keywords may not
necessarily get the same search results; it depends on the
click behaviour of the consumer based on similar
searches. Search engines also offer local searches –
‘implicit’ and ‘explicit’ (CMA, 2017). Implicit search results
are based on the searchers GPS or IP address, offering
local results based on their current location, whereas
explicit search results are based on the search terms (e.g.
‘restaurants in central London’).
Fig 4: Dean, B (2019) Google Organic Breakdown by Position [graph]

When it comes to searching for products,
63% of consumers in key e-commerce
markets began their searches of products
on Amazon, higher than those who start
their searches on search engines
(Marketing Charts, 2020, see Fig 5).
This may simply be because Amazon is
associated with fast, free shipping and
cheaper prices (Marketing Charts, 2018),
as 68% of consumers would choose
another retailer over Amazon based on
price (Marketing Charts, 2020).
Fig 5: Marketing Charts (2020) Where Online Shoppers Start Their Search [graph]

13%
14%
14%
15%
15%
16%
16%
17%
17%
17%
21%
22%
23%
24%
26%
27%
27%
32%
32%
36%
38%
0% 5% 10% 15% 20% 25% 30% 35% 40%
VLOGS
ADS HEARD ON RADIO
ENDORSEMENTS BY CELEBRITIES
ADS SEEN ON PUBLIC TRANSPORT
POSTS/REVIEWS FROM EXPERT BLOGGERS
PERSONALISED PURCHASE RECOMMENDATIONS ON…
STORIES/ARTICLES ON NEWSPAPER/MAGAZINE…
ADS ON BUILDBOARDS OR POSTERS
ADS IN MAGAZINES/NEWSPAPERS
EMAILS/MAILSHOTS FROM COMPANIES
ADS SEEN BEFORE ONLINE VIDEOS/TV SHOWS
IN-STORE PRODUCT DISPLAYS/PROMOTIONS
CONSUMER REVIEW SITES
ADS IN MOBILE/TABLET APPS
RECCOMENDATIONS/COMMENTS ON SOCIAL MEDIA
BRAND/PRODUCT WEBSITES
TV SHOWS OR FILMS
ADS SEEN ONLINE
WORD OF MOUTH RECOMMENDATIONS
ADS SEEN ON TV
SEARCH ENGINES
Sources of New Brand Discovery
Sources of new brand discovery (Global Web Index, 2019)
Customers discover new brands in a variety of
ways, with 32% of people discovering new
brands via online ads (Global Web Index, 2019).
90% of online shoppers read at least one review
before visiting a business (Willas, 2020) so it’s
unsurprising that reviews, recommendations
and word of mouth are all in the top 10 ways of
discovering new brands (Global Web Index,
2019). 94% of online shoppers reported that a
negative review has convinced them to avoid
visiting a business (Willas, 2020).
Search engines remain the key source of brand
discovery (Global Web Index, 2020), which is
where search engine marketing (SEM) is
essential to gain new consumers. Google
remains the leading search engine in terms of
market share, with around 90% market share
between 2010-2020 (Statista, 2020)

What consumers buy online
In order to understand what consumers are buying online,
we first need to understand the consumer buying process.
In 2014, Shane Jones wrote about ‘a distinctive set of steps
that most consumers went through before deciding whether
to make a purchase or not’ (Jones, 2014, see Fig 6).
Firstly, the consumer needs to recognise there is a problem
stopping them from getting to where they want to be
compared to where they currently are. This causes them to
research the solution; in this case, the product which will
solve this problem.
Once the solution has been found, there is a comparison of
products, to make sure the solution they have is the right
one. Then they will make the decision to purchase that
product.
Once the consumer has made the purchase, they evaluate
how satisfied they are with their purchase, which is where a
brand can make or break the loyalty of this consumer.
Fig 6: Jones, S (2014) The Six Stages of the Consumer Buying Process [graphic]

E-commerce has grown significantly since the
launch of the World Wide Web, and by 2023
e-commerce will make up 22% of global retail
sales (Statista, 2020).
In 2019 travel (including accommodation)
topped the global list of what consumers
purchased online (Kemp, 2020, see Fig 7), with
fashion/beauty and electronics/physical media
following. Surprisingly, food and personal care,
which many would deem ‘essential’ sits in 6th,
behind furniture and appliances and
toys/hobbies.
It is hard to predict what the global Covid-19
pandemic in 2020 will do to affect the
predicted e-commerce growth, as although
more consumers moved their shopping habits
online rather than in store, the shrinking
economy could mean these ‘luxury’ items
(especially travel) are not purchased in 2020.
Fig 7: Kemp, S (2020) Global Ecommerce Spend by Category [graphic]

Mobile apps are an easy way for consumers to shop
online, as they are typically more instant than
accessing through a browser. In 2019 Amazon was the
most popular mobile shopping app in the United
States, with 80.64% of mobile users accessing the app
(Statista, 2020, see Fig 8).
Mobile e-commerce is growing, and by 2021 mobile
will have 72.9% share of total e-commerce spend
growing from 58.9% just 3 years ago in 2017
(Merchant Savvy, 2020).
Most popular mobile shopping apps in the United
States as of September 2019, by reach
Fig 8: Statista (2020) Most Popular Mobile Shopping apps in the US by reach [graph]

Online video consumption
Online video consumption has grown year on year,
with 90% of internet users aged 16-64 watching
online videos each month in 2019 (Kemp, 2020, see
Fig 9). 6 out of 10 people prefer online video
platforms to live TV (Google, 2016). By 2022, 82% of
all consumer internet traffic will be made up by
online videos, which is 15 times higher than just 3
years ago in 2017 (Biteable, 2020)
64% of consumers make a purchase after watching
branded social videos (Insivia, 2018), which
highlights the point that ‘consumers are beginning to
rely on marketing videos from brands’ (Bump, 2020).
Mobile video consumption rises by 100% every year
(Cox, 2020), with 75% of all video plays on mobile
devices (eMarketer, 2018)
Video content is becoming increasingly important, as
half of Gen Z and Millennials “don’t know how they’d
get through life without video.” (Bump, 2020) Fig 9: Kemp, S (2020) Most Online Content Activities [graphic]

Understanding why people consume online video
content is key for the creators of video content. The
top reason people consume online video content is to
help them relax and unwind (Bump, 2020, see Fig 10).
Consumers of online video content do not prioritize
high production quality or has famous actors, they
would prefer the content teaches them something
new or is relatable to them (Bump, 2020).
Amongst the top 20 YouTube channels most
subscribed to are Dude Perfect and 5-minute crafts
(Boyd, 2020). These two channels epitomize the top
two reasons consumers watch online video content;
Dude Perfect centers around entertaining content to
help their viewer relax and unwind, and 5-minute craft
is a DIY channel about teaching its viewer something
new.
Fig10: Bump, P (2020) Reasons why consumers watch video content [graph]

Online streaming services such as Netflix,
Amazon Prime and more recently Disney+,
are key to the growth in watching TV shows
via an online source. It is therefore
unsurprising to learn that in 2017, online
video content overtook live TV/VOD in terms
of percentage of favourite TV shows watched
(Felix, 2020, see Fig 11).
The average daily time spent watching video
content per day by US adults via digital video
devices has also increased from 46mins in
2013 to an estimated 1h49m in 2021, with
TV decreasing from 4h30m to 3h22m in the
same period. (eMarketer, 2019).
Even though Disney+ skyrocketed to 25% of
the streaming market share in its first 6
months, Netflix holds the biggest market
share of around 60% (Mac Daily news, 2020).
Fig 11: Felix (2020) How do you watch your favorite show? [graphic]

Although online video consumption is
unquestionably on the rise, there does
appear to be a link between the size of the
screen compared to the length of the
online video content.
81% of time spent watching online videos
on a connected TV is for content 10
minutes or longer, and this percentage
decreases along with the screen size
(Ritcher, 2014, see Fig 12). Smaller
smartphone screens have the highest
percentage of time spent watching shorter
form videos from 0-3 minutes (Ritcher,
2014, see Fig 12).
This indicates that longer form content such
as TV shows are still watched on a TV, and
shorter form content watched on mobile,
typically as a distraction or to kill time.
Fig 12: Ritcher, F (2014) The Larger the Screen the Longer the Content? [graphic]

Consumer trends
As we have learned, more and more people are accessing the internet
via their mobile phones. Wearable technology is also on the rise, with
an estimated accelerated growth of 23% year on year from 2019 –
2023 (Wade, 2017, see fig 13). This could be linked to the increasing
accessibility of mobile phones.
The main wearable responsible for this growth is the smart watch,
which had over 101million predicted worldwide shipments in 2019,
compared to 17.7million just 2 years before in 2017 (Wade, 2017). As
well as providing instant notifications keeping users connected, a key
reason smart watches are gaining popularity is because they are
reshaping healthcare, with Apple leading the way.
Apple are using their wearable smartwatch device to evolve what is
possible for modern medicine. The Apple Watch can notify wearers of
possible atrial fibrillation, which results in 130,000 deaths and
750,000 hospitalizations each year (Gonzales, 2019). It can also
measure the user’s electrocardiogram, which can be a lifesaving tool.
Fig 13: Wade (2017) Estimated global market for wearable technology [graphic]

Consumer trends
Voice search is also on the rise, with an estimated 21% of the UK
population using a smart speaker, up from 7.3% in 2017 (eMarketer, 2019,
see fig 14).
71% of people who use smart speakers use them to play music (Feldman,
2018), which is unsurprising given that streaming music services
accounted for 79.5% of all recorded music revenues in 2019 (Perez, 2020).
58% of smart speaker users ask their device general questions (Feldman,
2018), as this is a convenient way of sourcing answers and information.
Mobile users are 3 times more likely to use voice search, with 20% of
mobile queries done via this method, and 55% of teenagers using voice
search daily – the highest of any generation (Metev, 2020). This indicates
that voice searches will grow as the younger generations gain access to
devices with this feature.
Fig 14: eMarketer (2019) UK Smart Speaker Users [graphic]

Summary
With almost 4.57 billion internet users as of July 2020 (Statista, 2020),
the increasing accessibility to the internet is clear. A little over 10
years ago, devices such as smart TVs and tablets did not exist, and as
of 2018 more than 50% of adults in the UK now own at least one of
these devices (McCarthy, 2018, see fig 15). This trend of increasing
smart TV ownership has driven demand and favourability of
streaming online video content over the traditional TV/VOD content.
Consumers are accessing the internet more and more by mobile
phones, as these are a convenient choice typically on hand on the
consumer’s person. Shopping apps such as eBay and Amazon have
also made it easier for consumers to shop on their mobile, and
wearables such as smart watches connect to mobile devices to offer
health and fitness stats, along with any other notifications the user
would like instant access to.
Voice search is becoming a key source on how consumers search for
information, and a trend which is predicted to grow in the years
ahead. This, combined with the general increase in mobile searches,
makes it more important than ever for businesses to increase the
search engine hierarchy through strategic digital marketing
campaigns, with a focus on SEO and SEM.
Fig 15: McCarthy, N (2018) The evolution of digital device ownership in the
UK [graphic]

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