So, what are the numbers showing us?
1. GRANDMA AND GRANDPA ARE ONLINE
Anyone implementing a digital transition has heard the staple resistance; “But lots of our customers are old and don’t use computers.” But a quick look at the stats show that older citizens – and even the Golden Oldies – are leading digital lives.
The Australian Bureau of Statistics has investigated Australia’s online behaviours and found that whilst there is a decline in digital usage with age, this decline is only significant after 64 years of age. 78% of persons between 50 and 64 years of age are online. However, even when that decline finally sets in, 46% of Australians over the age of 65 are online. If your audience are over 65 years of age, you could argue there is still a need to place equal emphasis on both digital and non-digital communications, sure – but otherwise, we have now reached a point in our digital evolution where every age bracket is officially digital. If your marcomms strategy targets under 65 and is not weighted towards digital, it’s not your customers that are old… it’s your marcomms strategy.
Need more convincing? ACMA (The Australian Communications and Media Authority) then looked at online frequency – a more in-depth indication of the difference between “using digital” and “being digital”. OK, so older Australians can use a computer or a smartphone – but are they really integrating online into their daily lives? Yes. 40% of Australians over the age off 55 are online more than twice a day.
Wrong. The only thing older Australians are not doing in great numbers online is downloading music and videos, or playing online video games. Included in the ABS findings is that 66% of men over the age of 55 do their banking online and that half of women over 55 years of age use online for social networking.
And while we’re on the subject of age, it is worth considering that at the other end of the generational spectrum, ACMA found that in 2013, 92% of children under the age of 2 had a digital shadow (meaning they have somehow interacted online – whether on mum’s laptop or the family iPad). Anecdotal amazement from parents who watch their toddlers using home devices is commonplace, and now the data backs it up as a new norm. Your audience today may be predominantly digital – but just wait til you meet your audience of tomorrow!
2. THE BUSINESS SECTOR HAS FALLEN IN LOVE WITH ONLINE VIDEO
It’s important to Forbes, one of America’s largest business media brands, to understand the business and entrepreneurial mindset. Their annual insights are always worth reading.
We have known for a while now that the business world loves its digital – time-poor and information-hungry, it’s not exactly a surprise that budding wolves of Wall Street rely on the advantages of the digital age. Past statistics showed us that they were particularly fond of tablets and apps (what killed the Blackberry); and Forbes’ latest numbers show another trend also catching on in the boardrooms…. video.
75% of executives watch work-related videos on business websites at least once a week. And moving beyond the business media brands and into the more mainstream channels once thought unrelated to the digital lives of business leaders, 50% watch business-related videos on Youtube.
What is fascinating about this shift is that the phenomenon of online video was originally correlated with concepts like poor literacy – in fact, many commentators are now even blaming online video content for further diminishing literacy amongst the masses. But here we have one of the most literate demographics, largely residing in older age brackets, and who have traditionally been seen as heavy readers. And yet ultimately, 59% of executives told Forbes they would rather watch an online video to obtain information than read text.
So, it is wise to remember that wise people are at the forefront of digital! In fact, here in Australia, the Bureau of Statistics found a direct correlation in education with digital use. The higher educated the Australian individual is, the more digital they are.
3. ONLINE VIDEO RESPONSIVENESS IS HIGHEST IN PLACES YOU MIGHT LEAST EXPECT IT
We often think we are more advanced in comparison to other cultures than in truth we are. This boils down to good old western arrogance – a kind of colonialist superiority embedded in our cultural psyche – and spills over into what we think we know about the digital era. I saw this on a recent trip to South Korea, where a group of Australians I shared the airport shuttlebus with wondered if South Korea would have “okay internet” (it has the very best internet in the world!).
Suffering from this kind of twisted logic, many Australian businesses presume the recent dominance of online video is yet to hit the wider world. But American statistics giant, Statista, have compiled global response rates to commercial online video (that is, online video produced as a commercial call to action) in the first quarter of 2013. Latin America is the region most responsive to online video advertising with positive response rates of a staggering 70%.
However, even though North America and Europe are the least responsive regions to online video, these numbers are impressively high across the board when compared to those of digital formats like eDM, which now generally linger around 29% impact at their best. And considering the steep curve upwards of online video trends, it is worth noting that these numbers would by now be considerably higher.
4. WHERE AND HOW WE ARE WATCHING VIDEO IS CHANGING
Let’s start with one of the most crucial statistics I have for you. The dominance of facebook has been a sore point for a great portion of the marketing and online industries. The more facebook monopolises the market – which it has done by creating an ecosystem people no longer need to leave at all – the more external businesses and parties are being rendered obsolete. Because of this, an incredibly deceitful PR campaign has been waged against facebook by a variety of online channels and businesses, and the web is full of articles heralding facebook’s supposed post-peak fade in relevance. Most use data that shows teenagers are less facebook-driven than young adults (because they share their social media time with teen fads like snapchat and instagram), and from this build what amounts to a smear campaign against facebook. They are agenda-ridden exercises – carefully spun prophecies by those who are financially benefited by facebook losing its hold over the modern digital user.
Google in particular is sweating the shift in search culture to internal facebook searching (which is now used by younger users more than the classic search engines). And google’s beloved youtube, whilst certainly still a dominant part of our contemporary digital lives, has finally fallen to the rise of facebook. In 2013, facebook overtook youtube for social network activity. So take no notice of the “facebook is finished” brigade. Facebook has never been stronger.
Facebook had closely trailed youtube for a number of years now – so was there anything in recent behavioural trends where we can see something tip the balance in Zuckerberg’s favour?
A comparison of video-view statistics by Commscore may have the answer. As youtube’s video numbers began declining (and let’s remember that, unlike facebook, video-views is literally all youtube “is”), facebook surged. The trend continued beyond the moment in early 2013 when facebook overtook youtube activity, to an even more astonishing feat. In August 2014, more videos were watched on facebook than on youtube. Videos on facebook were viewed an incredible 12.3 billion times, compared to only 11.3 billion on youtube (that’s just in one month, and on desktop computers!). That would have been a somber day in the google offices.
Moving away from simply the format of online video and the software and channels we use to watch them “through”, there have also been some interesting insights into the hardware (devices) we watch them on. However, before we look at this, let’s familiarise ourselves with what people are generally using to connect to the internet. With the incredible rise of mobile platforms, there has been a valid rush for businesses to be mobile – but often at the expense of the broader perspective. The Global Web Index has the numbers. PC’s and Laptops are still the most common online hardware.
Owned by 47% of internet users, tablets are now also an important part of your marcomms. Tablets have partly increased importance thanks to the explosion of online video. Smartphones are often used as the quick go-to device for information, but stats show that users will turn to their tablets for more in-depth engagement – such as video.
In 2013, Visible Measures explored one of the most debated factors of online video: content duration. The question we’re all asking is “How long do people watch each video for?” When it comes to online advertising videos, the answer seems to depend on what the user is watching the content on. Even more intriguing, there was a visible difference between users on apple and android operating systems! The average time spent watching each video was:
Desktop (PC/laptop) 2 minutes
Phone (iPhone) 2.4 minutes
Phone (android) 4 minutes
iPad 5 minutes
This data supports the recent shift towards longer video times. Originally, online video was modelled off traditional above-the-line advertising where “short and snappy” was the order of the day. But over time, we are learning that users engage online video as a more substantial content experience than, for example, watching a television commercial. And this is great news for us! It means we can communicate more to an audience who are more receptive.
5. SOCIAL MEDIA HAS USURPED CONSUMER AUTHORITY
The traditional website continues to struggle, whilst social media continues to thrive as the trusted source for consumers. 2013 research commissioned by digital.gov.au found that 49% of Australians used social media at least once per day. In terms of commercial integration, 59% of Australians said they use social media to engage brands.
The era of authenticity that social media ushered in has drastically changed the nature of the relationship between consumers and brands. We now live firmly in the age of Peer Review. Social media has effectively extinguished the traditional models of marcomms where brands carefully constructed restrictive, non-interactive, and largely inauthentic messaging as the dominant communications engaged by the consumer. Today, online has allowed your customers to trust not what you’re telling them, but what your other customers are. Search engine journal found that 72% of consumers trust online reviews as much as personal recommendations.
But despair not! When asked to compare posts by friends and posts by companies on social media, all was not lost…
Rather, the ultimate take away here is that social media is now at the forefront of consumers’ investigations. People trust social media. Remember that to flip those numbers, only around 20% said they were not influenced by social media posts in their purchasing decisions.
And while these surveys were conducted in America, ACMA (The Australia Communications and Media Authority) found similar numbers. It is also worth pointing out that contrary to the ideas some digital naysayers assert in regards to the dangerous negativity of the online space, most Australians were engaging in positive social media relationships with brands…
So, there you have it. Don’t presume that just because your business crossed over into digital space, it can sit on its electronic laurels. The question isn’t just “Are we digital?” but “How are we digital?” The world is moving fast. Keep up.