Thursday, April 27, 2006

The Internet's Growing Role in Life's Major Moments; Internet penetration has now reached 73% for all American adults

The Pew Internet & American Life Project has recently released two new
reports:

The Internet's Growing Role in Life's Major Moments - April 19, 2006 The internet has become increasingly important to users in their everyday lives. It is also the case that for many of online Americans, the internet has become a crucial source of information at major moments and milestones in their lives. Our surveys show that 45% of internet users, or about 60 million Americans, say that the internet helped them make big decisions or negotiate their way through major episodes in their lives in the previous two years. Read the full report: http://www.pewinternet.org/pdfs/PIP_Major%20Moments_2006.pdf

Data Memo: Internet Penetration and Impact - April 26, 2006

Over time, internet users have become more likely to note big improvements in their ability to shop and the way they pursue their hobbies and interests. A majority of internet users also consistently report that the internet helps them to do their job and improves the way the get information about health care.

While the share of internet users who report positive impacts has grown, the sheer size of the internet population also continues to increase. Surveys fielded in 2006 show that internet penetration among adults in the U.S. has hit an all-time high. While the percentage of Americans who say they use the internet has continued to fluctuate slightly, our latest survey, fielded February 15 - April 6, 2006 shows that fully 73% of respondents (about 147 million adults) are internet users, up from 66% (about 133 million adults) in our January 2005 survey. And the share of Americans who have broadband connections at home has now reached 42% (about 84 million), up from 29% (about 59 million) in January 2005.

Read the full memo: http://www.pewinternet.org/pdfs/PIP_Internet_Impact.pdf

The Pew Internet & American Life Project is a non-profit initiative of the Pew Research Center, funded by The Pew Charitable Trusts to explore the impact of the internet on children, families, communities, health care, schools, the work place, and civic/political life. The Project is non-partisan and does not advocate for any policy outcomes. For more information, please visit our website: http://www.pewinternet.org/

Use of B2B Extranets Is Up

April 27, 2006 (source: eMarketer and CompTIA)

B2B extranets are supposed to be more efficient and cost less. Do they?

According to new findings from Computing Technology Industry Association (CompTIA), business partners are relying more heavily on extranet websites to conduct e-commerce in order to cut costs. In fact they may be adding costs to the supply chain.
A CompTIA survey of business-to-business (B2B) e-commerce buyers and suppliers found that 74% of them are actively using websites for at least a portion of their B2B trading. 31% said their website trading has increased over the past year.

The move to B2B extranet trading is clear. Unfortunately, the result is not what companies hoped for. More than three-quarters of them (77%) said the shift is less beneficial than other B2B trading mechanisms. Many respondents reported it has had a negative impact on efficiency, accuracy, costs and partner relationships.

The obvious implication is that migrating from electronic data integration (EDI) to managing transactions on extranet websites is having a detrimental impact on both supplier and customer operations.

Looking deeper into the problem, however, the loss of efficiency may be only short term and due to the fact that — for many companies — the shift to e-commerce is not yet complete.
Because extranet applications are not fully integrated into other company systems, they often require companies to add staff to handle manual data entry. This reliance on manual dfata transfer from one system to another increases costs as well as the risk of error. Transactions, rather than being speeded up, are slowed down as the amount of time it takes for a supplier to manually enter information into their own systems and then manually enter the response on the buyer's website is likely also greater than the time it takes to complete the same transaction with an automated system.

"Extranets are a viable trading mechanism, especially when communicating with small and medium-sized trading partners that may not have the resources to support sophisticated e-commerce systems," said David Sommer of CompTIA. "But when transaction volume is substantial the use of manual extranets can become cumbersome and costly. In high-volume scenarios some electronic data interchange is necessary for the supply chain to be efficient."
The majority of companies (92%) said their preferred mechanism for B2B trading was system-to-system electronic trading. Their reasons included improved business processes and better integration with enterprise resource planning (ERP) systems.

"Buying companies who venture down the extranet path should establish a strategic, collaborative plan with their suppliers and discuss in detail the costs of data exchange," said Mr. Sommer. "Without such pro-active steps, the strategic sourcing initiatives instituted by buyers may eventually increase costs and errors, and reduce the amount of information shared between trading partners."

CMO Council study finds marketers out of touch with customers

CMO Council study finds marketers out of touch with customers

Apr 26, 2006

Palo Alto, Calif.—Marketers still have a long way to go when it comes to understanding and interacting with customers, according to a new study by the CMO Council.The study, “Select & Connect: Strategies for Targeted Acquisition and Retention,” was based on a survey of more than 550 marketers in the first quarter.

It found that nearly 75% of marketers did not have a customer advisory board or council. Of those that do, only 6% said the board was “very critical” in product innovation.

Also, nearly 75% of marketers said they did not manage a formal online community of users or buyers, and more than 66% said they did not have a formal customer word-of-mouth program in place.

The top three factors that prevent optimal customer insight and intimacy are complexity of data and system integration, competing departmental goals and personalities, and an under-appreciation of such efforts within the company, the survey found.

By Kate Maddox, BtoB magazine

Tuesday, April 25, 2006

Americans view their cell phones

Americans say their cell phones aid them during emergencies and fill in their free time.

But many also report driving unsafely while on their cells and they say they don’t like the new intrusions and public annoyances cell phones bring to their lives – not to mention their monthly bills.

The cell phone has become an integral and, for some, essential communications tool that has helped owners gain help in emergencies. Fully 74% of the Americans who own mobile phones say they have used their hand-held device in an emergency and gained valuable help.

Another striking impact of mobile technology is that Americans are using their cell phones to shift they way they spend their time. Some 41% of cell phone owners say they fill in free time when they are traveling or waiting for someone by making phone calls. And 44% say they wait to make most of their cell calls for the hours when they do not count against their “anytime” minutes in their basic calling plan.

At the same time, there are new challenges associated with cell phone use. More than a quarter of cell phone owners (28%) admit they sometimes do not drive as safely as they should while they use their mobile devices. Among cell phone users, men (32%) are more likely than women (25%) to admit they sometimes don’t drive as safely as they should.

Furthermore, 82% of all Americans and 86% of cell users report being irritated at least occasionally by loud and annoying cell users who conduct their calls in public places. Indeed, nearly one in ten cell phone owners (8%) admit they themselves have drawn criticism or irritated stares from others when they are using their cell phones in public.

For some, the cell phone has become so central to their communications needs that they lose track of the expenses associated with their phones. Some 36% of cell owners say they have been shocked from time to time at the size of their monthly bills.

When it comes to the features Americans would like to add to their cell phones, the desire for maps tops the charts by a clear margin. Fully 47% of cell owners say they would like this feature and 38% say they would like to have instant messages from select friends sent to their cells.

Some 24% of cell owners say they would like to use their phones to conduct searches for services such as movie listings, weather reports, and stock quotes. And a similar 24% of cell owners would like to add email to their mobile-phone functionality.

A third of cell owners (35%) already use text messaging features on their phones and another 13% would like to add that capacity to their phone.

Some 19% of cell owners say they would like to add the capacity to take still pictures to their cells.

These findings emerge in a national survey of cell phone owners by the Pew Research Center’s Pew Internet & American Life Project, the Associated Press and AOL. The findings provide a detailed picture of the role of the cell phone in modern life, including how the use of cell phones has helped people become more spontaneous and prolific in their communication patterns. Half the survey was conducted among cell phone owners on their cell phones – one of the largest such samples ever conducted.

In all, 1,503 people were surveyed between March 8 and March 28 – 752 of them on their landline phones and 751 on their cell phones. Some 1,286 cell phone users were interviewed in the sample. The overall sample and the cell-phone user sample have a margin of error of plus or minus three percentage points.

It is likely that many of the behaviors reported here will intensify in coming years as more people become attached to and reliant on their mobile phones. Indeed, 23% of those who currently have landline phones say they are very likely or somewhat likely to convert to being only cell phone users.

Other overall findings – interruptions, deception, texting spam and “American Idol” In this survey of adult cell users, more than a third say their cell phones have enabled some type of unwelcome intrusion in their lives.

24% of cell-using adults report they often feel like they have to answer their cell phones even when it interrupts a meeting or a meal.

22% believe that “too many” people try to get in touch with them because others know they have a cell phone.

The reasons for this become clear when cell owners describe how they use their phones: Fully 52% of all cell owners say they keep their phone on all the time and 81% of cell-only users say the device is always on. At times, mobile phones are used abet some white lies: 22% of cell owners say they are not always truthful about exactly where they are when they are on the phone. Younger users are much more likely to say they are not always honest about where they are: 39% of cell users ages 18-29 say that.

Spam has invaded cell phones, too. About one in six cell owners (18%) report receiving unsolicited text messages on their phones from advertisers.

Asked if they had used their cells to vote in contests that had appeared on television, such as “American Idol,” 8% of cell owners said they had done that.

Cell phone users are split in how attuned they are to making calls at times when it is less expensive to do so. Some 41% say they try to place most of their phone calls when they know the minutes they use won’t cost them extra money, while 58% report they don’t concentrate the use of their phones to those off peak hours.


The Pew Internet & American Life Project have posted the results of a new study detailing how Americans view their cell phones. News release: http://www.pewinternet.org/press_release.asp?r=128Questionnaire: http://www.pewinternet.org/pdfs/Cell_questions_release.pdfReport: http://www.pewinternet.org/pdfs/PIP_Cell_phone_study.pdf

Friday, April 21, 2006

Will the Mobile Phone become the Dominant Internet Platform?

APRIL 21, 2006

It could happen…

The personal computer remains the dominant platform for accessing the Internet around the world. However, in many countries Internet access via the mobile phone is actually outpacing wireless access from a notebook PC. After all, there is a massive installed base of mobile phones globally, and wireless networks are expanding every day.

According to A.T.Kearney, while in 2004 only 36% of mobile phone users browsed the Internet or downloaded e-mail, that figure rose to 56%. In Japan 92% of users went online via their mobiles.

In a study just released, "The Face of the Web," Ipsos Insight found that 28% of mobile phone owners worldwide had browsed the Internet on a wireless handset, up slightly from 25% at the end 2004.

Brian Cruikshank of Ipsos noted, "Accessing the Internet on a wireless handheld device is no longer a novelty for consumers in the major global economies. It's becoming a common, everyday occurrence for many people."

In fact, it was the Ipsos study that posited that mobile phones are poised to become the dominant Internet platform outside the home. "In the long term, many of today's PC-centric online activities could be complemented through the mobile phone or migrate to the mobile phone altogether, due to greater convenience and faster connection speeds," said Mr. Cruikshank. p>Mobile phone ownership is certainly on the rise around the world. The Ipsos survey showed ownership in major countries ranging from 61% of consumers in Canada to 95% in Japan.

Internet browsing via a wireless device is also growing in many global markets. France and the UK are exhibiting the strongest growth, while Internet usage via mobile phone in Japan also continues to grow rapidly. Today, four in 10 adults browse the Internet on their wireless handset in Japan, double the rate in 2003.

Over half (52%) of all mobile phone households today have sent or received a text message, and over a third (37%) have sent or received e-mail on a mobile phone. In general, almost all wireless device activities experienced growth in 2005 — including m-commerce, financial transactions, sending or receiving digital pictures and downloading entertainment.

Japan — followed by the UK, US and South Korea — leads the world in browsing the Internet via mobile phone for news and information.

All this activity aside, however, it should be noted that Ipsos found that the growth in Internet browsing on a mobile phone was flattening in some markets, specifically the US and Canada, where wireless Internet access via notebook PC appears to be emerging as the stronger out-of-home Internet platform.

If you need more information on this topic, eMarketer has recently published a number of reports on wireless trends and markets around the world, and you can browse them all by clicking here.

Source: eMarketer.com

Thursday, April 20, 2006

Blogs Continue to Multiply

The bloated blogosphere?

It may seem hard to believe, but according to the "State of the Blogosphere" report issued in January by Technorati, there were 26.6 million blogs online.

Now the latest "State of the Blogosphere" report has upped the number to 35.3 million blogs, and Technorati's David Sifry claims that is a mind-blogging 60 times more blogs than existed three short years ago.

Well, almost.

Looking back at Technorati's own numbers, the blogosphere is only about 16 times as large as it was three years ago. But, to be fair, if you go back a few months earlier and compare with August 2003, the blogosphere is now more than seventy times larger than it was then.

Blogs tracked by Technorati Aug. 2003 - Aug. 2006
  • Aug. 2003 = 500,000
  • April 2004 = 2,300,000
  • April 2005 = 9,400,000
  • April 2006 = 35,300,000

Technorati claims over 75,000 new weblogs are created every day, which means that on average, a new weblog is created every second of every day.

According to the latest report, 19.4 million bloggers (55%) are still updating their sites three months after their blogs were created. That's an increase in both absolute and relative terms over January, when only 50.5% or 13.7 million blogs were 'active'. In addition, about 3.9 million bloggers currently update their blogs at least weekly.

As Mr. Sifry writes in his own blog, "In other words, even though there's a reasonable amount of tire-kicking going on, blogging continues to grow as a habitual activity."

That statement is hard to argue with. Whether growth was actually 60 times or 16 times over the last three years, one thing is certain. There are a lot of blogs out there, and tomorrow there will be more.

For more information on blogs, read the eMarketer report, The Business of Blogging.

Tuesday, April 18, 2006

Mobile Phones Could Soon Rival the PC As World’s Dominant Internet Platform

Mobile Phones Poised To Overtake The PC As The Dominate Internet Platform In Some Markets, According To Ipsos Insight’s Latest The Face of the Web Study

New York, NY – Today, the personal computer remains the dominant platform to access the Internet globally. However, Internet access via the mobile phone actually outpaces wireless access from a notebook PC in many of areas of the world – a statistic driven largely by the massive install base of mobile phones throughout the world as well as more developed wireless networks, according to The Face of the Web, the annual study of Internet trends by global market research firm Ipsos Insight.

Indeed, Internet browsing via a wireless device is showing robust growth in many global markets. France and the U.K are exhibiting the strongest growth in this trend, while Internet usage via mobile phone in Japan also continues to grow rapidly. Today, four in 10 adults browse the Internet on their wireless handset in Japan, double the rate from 2003. However, growth in Internet browsing on a mobile phone is flattening in other leading markets, such as the U.S. and Canada, where wireless Internet access via notebook PC appears to be emerging as the stronger out-of-home Internet platform.

Mobile Surfing Becoming Mainstream

Globally, just over one-fourth (28%) of mobile phone owners worldwide have browsed the Internet on a wireless handset, up slightly from 25% at the end 2004. Interestingly, growth in this behavior for 2005 was driven by the older users (age 35+), indicating that surfing the Internet on a mobile phone is emerging as a mainstream activity, no longer dominated by the traditional early adopter segment – young males – typical of many new consumer technologies.
Noted Brian Cruikshank, Senior Vice President & Managing Director of Ipsos Insight’s Technology & Communications practice: “Accessing the Internet on a wireless handheld device is no longer a novelty for consumers in the major global economies. It’s becoming a common, everyday occurrence for many people.”

As consumer dependence on mobile phones grows, so to will new applications. Mobile phones are poised to become a dominant Internet platform outside the home. “In the long term, many of today’s PC-centric online activities could be complemented through the mobile phone or migrate to the mobile phone altogether, due to greater convenience and faster connection speeds,” Cruikshank added.

More 35+ Adults Utilizing Wireless Services & Activities

In addition to web-browsing, a number of other mobile phone activities witnessed significant growth this year, according to The Face of the Web study SMS text messaging remains the most popular activity among consumers, while other communication-based wireless activities are also growing. Over half (52%) of all mobile phone households today have sent or received a text message, and over a third (37%) have sent or received e-mail on a mobile phone. In general, almost all wireless device activities experienced growth in 2005 – including m-commerce (i.e., purchasing a product or service via mobile phone), conducting financial transactions, sending or receiving digital pictures, and downloading entertainment content.

Perhaps more important for the health of the industry, an increasing number of older adults (age 35+) are engaging in wireless activities. Increased usage among this group of consumers – presumably with higher net incomes and better credit – suggests the promise of higher Average Revenue Per Unit (ARPU) for the Wireless Industry in the future.

Mobile Phone Growth Driven Within the Household

Among other findings, mobile phone ownership at the end of 2005 was at near saturation levels in many areas of the world – most notably in East Asia, as over 90% of all households in South Korea, Japan and urban China own at least one mobile phone, according to the Ipsos study. Western European markets rank second collectively in mobile phone prevalence, with roughly 80% of all households owning a wireless handset. In North America, prevalence of mobile ownership is slightly less robust: in the U.S., three in four households own a mobile phone, while just over 60% of Canadian households own a mobile phone today.

While overall household ownership appears to be hitting a ceiling in many developed markets, proliferation of ownership within households continues to climb. In 2005, more than two-thirds of all households that owned a mobile phone owned multiple handsets, while the average number of handsets in these households stands at 2.2 globally – slightly higher than 2004’s average of 2.1 per household.

The Face of the Web also reveals the strong association between Internet usage and mobile phone ownership. Among those who had gone online in the past 30 days, household ownership spiked to over 90% in 10 of the 12 global markets studied. Cruikshank says the connection between PCs and mobile phones will have significant implications for Internet-based services and applications.

“We think the high correlation between Internet users and mobile phone ownership suggests an opportunity for wireless services or applications that can link aspects of personalization across multiple Internet platforms,” said Cruikshank. “Still, it will be crucial for companies to let consumers know just how they can leverage personalization opportunities across multiple access devices to their benefit.”

Wireless Device Activities – 2005: % Browsed the Internet for News & Information

Q7. Which, if any, of the following activities have you ever done on a Wireless Mobile Device?
Note: Wording for ‘Browsed the Internet for news & Information’ was updated in 2005

Japan 40%
U.K. 29%
USA 26%
South Korea 26%
Canada 19%
Germany 18%
France 18%
Mexico* 16%
China* 10%
Brazil* 8%
Russia* 7%
India 5%
Base: All respondents (General Adult Population)* Urban sample only

Source: Ipsos 2006

Prevalence of Mobile/Cellular Phones: 2005 Household Ownership
Q1a. Do you or anyone in your household currently own a wireless cellular/mobile phone?
Japan 95%
South Korea 94%
China 93%
France 85%
Germany 83%
U.K. 79%
Mexico* 78%
U.S. 75%
Brazil* 73%
India* 67%
Russia* 63%
Canada 61%

Base: All Respondents (General Adult Population)* Urban sample only
Source: Ipsos 2006

Methodology
The Face of the Web 2005 study was conducted in November and December 2005 among a random sample of 6,544 adults in urban Brazil, Canada, urban China, France, Germany, urban India, Japan, urban Mexico, urban Russia, South Korea, the U.K., and the U.S.

The Face of the Web 2005 study examined:

  • Global Internet Usage – Internet usage and trial through wired and wireless access, frequency of usage, and a 'Diffusion Spectrum' to help project future trends.
  • Internet Access & Connectivity – Household PC ownership (laptop and desktop), primary and secondary usage from various locations, primary and secondary access technology (dial-up versus DSL versus cable versus Wi-Fi).
  • Wired Internet Activities – A range of conventional and emerging online activities, such as streaming videos, downloading movies, sharing music files, making online phone calls, banking online, etc.
  • Wireless Internet Activities – Prevalence of household cell phone ownership and primary usage, wireless Internet usage and activities, (e.g., email, SMS, digital images, video games, ring tones, etc.).
  • Household Technology Inventory – Consumer technology and service penetration at the household level (e.g., MP3 players, digital cameras, PDAs, game consoles, GPS navigation, etc.).
  • Internet Growth – Growth projections using trend data, usage intent, and Ipsos' proprietary algorithm to derive estimates for future projections in wireless and wired Internet growth.

To learn more about The Face of the Web 2005, please visit: www.ipsosinsight.com/industryfocus/techandcomm/FOW.aspx

Mobile Phones Could Soon Rival the PC As World’s Dominant Internet Platform

Mobile Phones Poised To Overtake The PC As The Dominate Internet Platform In Some Markets, According To Ipsos Insight’s Latest The Face of the Web Study

New York, NY – Today, the personal computer remains the dominant platform to access the Internet globally. However, Internet access via the mobile phone actually outpaces wireless access from a notebook PC in many of areas of the world – a statistic driven largely by the massive install base of mobile phones throughout the world as well as more developed wireless networks, according to The Face of the Web, the annual study of Internet trends by global market research firm Ipsos Insight.

Indeed, Internet browsing via a wireless device is showing robust growth in many global markets. France and the U.K are exhibiting the strongest growth in this trend, while Internet usage via mobile phone in Japan also continues to grow rapidly. Today, four in 10 adults browse the Internet on their wireless handset in Japan, double the rate from 2003. However, growth in Internet browsing on a mobile phone is flattening in other leading markets, such as the U.S. and Canada, where wireless Internet access via notebook PC appears to be emerging as the stronger out-of-home Internet platform.

Mobile Surfing Becoming Mainstream

Globally, just over one-fourth (28%) of mobile phone owners worldwide have browsed the Internet on a wireless handset, up slightly from 25% at the end 2004. Interestingly, growth in this behavior for 2005 was driven by the older users (age 35+), indicating that surfing the Internet on a mobile phone is emerging as a mainstream activity, no longer dominated by the traditional early adopter segment – young males – typical of many new consumer technologies.
Noted Brian Cruikshank, Senior Vice President & Managing Director of Ipsos Insight’s Technology & Communications practice: “Accessing the Internet on a wireless handheld device is no longer a novelty for consumers in the major global economies. It’s becoming a common, everyday occurrence for many people.”

As consumer dependence on mobile phones grows, so to will new applications. Mobile phones are poised to become a dominant Internet platform outside the home. “In the long term, many of today’s PC-centric online activities could be complemented through the mobile phone or migrate to the mobile phone altogether, due to greater convenience and faster connection speeds,” Cruikshank added.

More 35+ Adults Utilizing Wireless Services & Activities

In addition to web-browsing, a number of other mobile phone activities witnessed significant growth this year, according to The Face of the Web study SMS text messaging remains the most popular activity among consumers, while other communication-based wireless activities are also growing. Over half (52%) of all mobile phone households today have sent or received a text message, and over a third (37%) have sent or received e-mail on a mobile phone. In general, almost all wireless device activities experienced growth in 2005 – including m-commerce (i.e., purchasing a product or service via mobile phone), conducting financial transactions, sending or receiving digital pictures, and downloading entertainment content.

Perhaps more important for the health of the industry, an increasing number of older adults (age 35+) are engaging in wireless activities. Increased usage among this group of consumers – presumably with higher net incomes and better credit – suggests the promise of higher Average Revenue Per Unit (ARPU) for the Wireless Industry in the future.

Mobile Phone Growth Driven Within the Household

Among other findings, mobile phone ownership at the end of 2005 was at near saturation levels in many areas of the world – most notably in East Asia, as over 90% of all households in South Korea, Japan and urban China own at least one mobile phone, according to the Ipsos study. Western European markets rank second collectively in mobile phone prevalence, with roughly 80% of all households owning a wireless handset. In North America, prevalence of mobile ownership is slightly less robust: in the U.S., three in four households own a mobile phone, while just over 60% of Canadian households own a mobile phone today.

While overall household ownership appears to be hitting a ceiling in many developed markets, proliferation of ownership within households continues to climb. In 2005, more than two-thirds of all households that owned a mobile phone owned multiple handsets, while the average number of handsets in these households stands at 2.2 globally – slightly higher than 2004’s average of 2.1 per household.

The Face of the Web also reveals the strong association between Internet usage and mobile phone ownership. Among those who had gone online in the past 30 days, household ownership spiked to over 90% in 10 of the 12 global markets studied. Cruikshank says the connection between PCs and mobile phones will have significant implications for Internet-based services and applications.

“We think the high correlation between Internet users and mobile phone ownership suggests an opportunity for wireless services or applications that can link aspects of personalization across multiple Internet platforms,” said Cruikshank. “Still, it will be crucial for companies to let consumers know just how they can leverage personalization opportunities across multiple access devices to their benefit.”

Wireless Device Activities – 2005: % Browsed the Internet for News & Information

Q7. Which, if any, of the following activities have you ever done on a Wireless Mobile Device?
Note: Wording for ‘Browsed the Internet for news & Information’ was updated in 2005

Japan 40%
U.K. 29%
USA 26%
South Korea 26%
Canada 19%
Germany 18%
France 18%
Mexico* 16%
China* 10%
Brazil* 8%
Russia* 7%
India 5%
Base: All respondents (General Adult Population)* Urban sample only

Source: Ipsos 2006

Prevalence of Mobile/Cellular Phones: 2005 Household Ownership
Q1a. Do you or anyone in your household currently own a wireless cellular/mobile phone?
Japan 95%
South Korea 94%
China 93%
France 85%
Germany 83%
U.K. 79%
Mexico* 78%
U.S. 75%
Brazil* 73%
India* 67%
Russia* 63%
Canada 61%

Base: All Respondents (General Adult Population)* Urban sample only
Source: Ipsos 2006

Methodology
The Face of the Web 2005 study was conducted in November and December 2005 among a random sample of 6,544 adults in urban Brazil, Canada, urban China, France, Germany, urban India, Japan, urban Mexico, urban Russia, South Korea, the U.K., and the U.S.

The Face of the Web 2005 study examined:

  • Global Internet Usage – Internet usage and trial through wired and wireless access, frequency of usage, and a 'Diffusion Spectrum' to help project future trends.
  • Internet Access & Connectivity – Household PC ownership (laptop and desktop), primary and secondary usage from various locations, primary and secondary access technology (dial-up versus DSL versus cable versus Wi-Fi).
  • Wired Internet Activities – A range of conventional and emerging online activities, such as streaming videos, downloading movies, sharing music files, making online phone calls, banking online, etc.
  • Wireless Internet Activities – Prevalence of household cell phone ownership and primary usage, wireless Internet usage and activities, (e.g., email, SMS, digital images, video games, ring tones, etc.).
  • Household Technology Inventory – Consumer technology and service penetration at the household level (e.g., MP3 players, digital cameras, PDAs, game consoles, GPS navigation, etc.).
  • Internet Growth – Growth projections using trend data, usage intent, and Ipsos' proprietary algorithm to derive estimates for future projections in wireless and wired Internet growth.

To learn more about The Face of the Web 2005, please visit: www.ipsosinsight.com/industryfocus/techandcomm/FOW.aspx

Thursday, April 13, 2006

One-Fourth of Mobile Customers Jump Ship Annually

One-Fourth of Mobile Customers Jump Ship Annually

According to a recent Forrester report release, nearly 98 million US households will have a mobile phone by 2010. As market saturation approaches, subscriber churn has become a critical issue for mobile carriers. 24% of US mobile subs switched providers between 2004 and 2005, and another 16% plan to switch in the next two years or more. Number portability, commoditized mobile offerings, and lifestyle-based service providers will continue to create churn, going forward.

The 24% of US mobile subs who switched carriers between 2004 and 2005 are younger, more likely to be female, less likely to be white, and are more optimistic about technology than the average mobile subscriber.
  • 43% of AT&T Wireless' displaced subs were acquired in Cingular's buy-out
  • Many of Cingular's lost subscribers went to Verizon
  • Verizon's turncoats signed up with Cingular and T-Mobile
    Sprint lost subs to Verizon
  • T-Mobile former subscribers went to Cingular

In this game of musical mobile providers, the biggest, Verizon and Cingularr, win, while the littler guys like Alltel, Cellular One, and U.S. Cellular are just treading water, says the report.

Consumers who are planning to switch mobile carriers in the future are spending more than $4 more per month on mobile service than those who are likely to stay put, and are primarily looking to improve the price and service aspects of their mobile experience. Handset selection, customer service, data services, and unique content are all secondary considerations, even for those consumers who currently use advanced mobile features like data or messaging.

The study suggests several ways providers can differentiate themselves to maintain their base and attract switchers:

  • Allow customers to store photos, text messages, emails, and IM on the network.
  • Entice the big spenders with the hottest upcoming handsets
  • Be an objective advisor to confused consumers
  • A multiservice bundle, including mobile, from one company will make it less likely that the current subscriber will defect
  • The delivery of audio and video via handsets provides unique leverage

More current and continuing consumer information from Forrester can be found here.

Friday, April 07, 2006

Mobile TV and Video Attracting a High Percentage of the Coveted Young Adult and Male Audience

Mobile TV and Video Attracting a High Percentage of the Coveted Young Adult and Male Audience, According to TelephiaWednesday

V CAST and MobiTV Consumers Spend $40 More per Month than non-TV Subscribers

SAN FRANCISCO--(BUSINESS WIRE)--March 22, 2006--Mobile TV and video usage is growing slowly, but is attracting a higher proportion of the young adult and male demographic, reports Telephia, the leading provider of performance measurement information to the mobile industry. According to Telephia, 1.5 percent or roughly three million wireless subscribers in the U.S. streamed TV or played video content on their mobile devices in Q4 2005 (see Table 1). Historical data from early 2005 show penetration of 1.4 percent.

Younger mobile subscribers, age 18-24 have the highest penetration for mobile TV and video usage, securing a 3.3 percent rate, doubling since the beginning of 2005. Overall, men are more likely to stream TV and play video content on their wireless devices than women, showing a penetration rate of 1.8 percent or more than 3.5 million wireless subscribers during Q4 2005. Female mobile subscribers who accessed mobile TV and video content over their handsets had a rate of 1.2 percent in Q4 2005, equaling 2.5 million consumers, according to Telephia.

"During this early adopter stage, audience demographics play a significant role in directing mobile companies how to best develop mobile TV and video content offerings," said Kanishka Agarwal, Vice President of New Products, Telephia. "The key for providers is to be able to understand the needs of these individual groups and supply targeted content that they will pay for."

Table 1: Penetration Rates of Mobile TV/Video Activity (U.S.)

Penetration Rate (%)
Demographic Segment Q1 2005 Q2 2005 Q3 2005 Q4 2005
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All Subscribers 1.4% 1.4% 1.4% 1.5%
Youth Subscribers 1.8% 2.9% 2.9% 3.3%
Male Subscribers 2.2% 1.9% 1.7% 1.8%
Female Subscribers 1.1% 1.0% 1.2% 1.2%
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Source: Telephia, Q1 2005-Q4 2005

V CAST and MobiTV Users Show Higher Total Monthly Spend than non-TV Subscribers
According to Telephia, V CAST and MobiTV subscribers spend roughly $40 more per month as compared to non-TV subscribers. During Q4 2005, V CAST and MobiTV subscribers spent an average of $94 in total monthly charges in comparison to non-TV subscribers who had an average total monthly spend of $54.

"The revenue stream for mobile TV and video content is very strong and shows upward promise. The combination of price, quality, diversity of content, and handsets capable of viewing content will be instrumental in the long-term growth," added Agarwal.

Launching in Spring 2006, the Telephia Mobile Applications Report will measure revenue performance of a wide range of mobile applications, including mobile TV, news, weather, sports, and travel. The report is part of Telephia's Audience Metrics product suite that is the industry's only source for actual measurement of mobile content revenues directly from the bills of an opt-in panel of 33,000 mobile consumers.

About Telephia
Founded in 1998, Telephia provides syndicated performance measurement information to the leaders of the converging communications and mobile industries, including carriers, device manufacturers, content and application providers, retailers, infrastructure vendors and investment analysts. Telephia is the industry standard measure of subscriber share, customer satisfaction, device share, network quality, revenue share, advertising effectiveness, content audience and many other key performance indicators. For further information, please visit our website at www.telephia.com or call 415-395-0500.

Monday, April 03, 2006

Just An Online Minute... Wireless Offer Clutter

By Tobi Elkin is Executive Editor, MediaPost.

All those offers from wireless companies appear to have little impact on customer satisfaction and loyalty, according to a survey by Harris Interactive. The survey finds that 66 percent of U.S. adult mobile phone users comparison shop for wireless service providers, with more than two in five (43 percent) initiating the process two months before their contract expires or less.

Harris finds that while wireless providers enjoy limited success with promotional offers (29 percent of mobile phone users who receive promotional offers have responded to at least one offer over the past two years), such offers don't stop most subscribers from comparison shopping, and they seem to have little impact on customer satisfaction. The survey also finds that consumers would like to receive fewer offers than they currently do.

The Harris survey finds that two in five (40 percent) of mobile phone users say they receive promotional correspondence from their wireless service provider at least once a month or more often. Another third say they receive them once every three months (21 percent) or six months (10 percent). But if consumers had it their way, only 12 percent would choose to receive them at least once a month or more often, while 30 percent would want them about once every three months, and 20 percent would want them about once every six months. One in five indicate they never want to receive any offers.

While frequency affects promotional offer success, so does the mode in which the offers are delivered. Among mobile phone users who receive promotional offers, if they could choose, many would like to learn about offers via printed materials, either by mail at home (22 percent) or as an insert with their bill (23 percent). Nearly one-third (31 percent) would like to learn about them through an opt-in e-mail, such as an e-newsletter.

Harris finds that most mobile phone users (98 percent) who receive promotional offers and comparison shop say these offers don't stop them from comparison shopping. Further, 85 percent of those who receive promotional offers say such communications don't leave them feeling any less, nor any more, satisfied with their wireless service provider; 84 percent say the offers don't leave them feeling any less nor any more valued. In fact, the promotions have the opposite effect on some, as 9 percent of those who receive them say they feel less satisfied when they receive such offers, and 8 percent say they feel less valued.

"Wireless service providers are eager to hang on to current customers and to lure new ones into their grasp," said Joe Porus, vice president and chief architect for the technology research practice at Harris Interactive in a statement. "However, the survey shows that many providers are reaching out to consumers too often and may not be sending these offers out at the best time." Porus continued: "Promotional offers may be more persuasive if they were received within the 60-day 'shopping clock' before a contract expires, which appears to be the time [when] the largest proportion of subscribers are out seeking a better deal."

Harris Interactive conducted the online study from January 19-25, 2006 among a nationwide sample of 1,067 U.S. adults (ages 18 years and over) of whom 865 are current mobile phone users, 722 receive promotional offers, and 501 receive promotional offers and comparison shop.

2006 IBT/MCA Market Pulse Survey Finds U.S. Consumers Still Seek A Face-to-Face Experience From Financial Service Providers

The toaster is officially “toast” – the majority of U.S. adults say a free toaster, cash or even an iPod will not get them to change financial institutions

-Full Disclosure: IBT is an Arketi Group client and we conducted this survey-

ATLANTA – March 21, 2006 – IBT Enterprises and MCA Works announced the findings of the 2006 IBT/MCA Market Pulse Survey, which seeks to understand how U.S. adults feel about and use financial services. The study, released at the 16th Annual IBT Trends Conference, reveals that when it comes to financial services the “human touch” still matters to a great number of consumers.

The survey of almost 700 U.S. adults using financial services found that despite decades of predictions that technology-driven channels like ATMs and online banking would replace traditional banks, 50 percent prefer to bank face-to-face (bank branch, in-store branch and drive through). Thirty percent of those surveyed prefer to bank online, 18 percent opt for ATMs and 2 percent say mail or telephone. For more information or to download a complete copy of the 2006 IBT/MCA Market Pulse Survey report, please visit www.ibtsource.com/viewpoint.htm.

While it is true the vast majority of U.S. adults use multiple channels to conduct their financial transactions, which include the stand-alone bank branch, drive-through windows, in-store banking, online banking and ATMs, 76 percent of Americans “love” or “don’t mind” going inside the branch to conduct business.

The study showed that consumers preferred face-to-face interaction with their financial institution representatives for more complex transactions such as making a deposit (69 percent), applying for a loan (65 percent) and opening a new account (64 percent). Automated banking (ATM, online and telephone banking) was most popular with respondents when it came to paying bills (64 percent), cash withdrawal (56 percent) and transferring funds (54 percent).

“Savvy banks and credit unions know that having convenient touch points opens greater opportunities for them to delight consumers and increase their share of that consumer’s business,” said Mylle Mangum, CEO of IBT, a leader in design and construction services for the financial services and specialty retail industries. “By offering a robust and integrated channel of banking methods, financial institutions are in a better position to solidify their relationships with consumers. Moreover, the delivery channels should match the consumer’s life stage/life cycle needs. For instance, drive-through windows are extremely important to families with children.”

Eighty-four percent of U.S. adults say they use retail or commercial banks, 40 percent say they use credit unions and nearly a third (28 percent) say they use securities and investment institutions. Sixty-nine percent of U.S. consumers have designated a retail or commercial bank as their primary financial institution and 19 percent have designated a credit union as their primary financial institution.

Highlighting the old marketing tenet -- “get them early and keep them” -- when asked about promotions to switch to another financial institution, 41 percent of U.S. adults said that “no amount of money or promotion could ever get me to switch.” However, one-third (33 percent) said they would switch if offered a $250 gift card and 20 percent said they would switch for 1 percent difference in their interest rate for deposits. Interestingly, 5 percent said they would switch financial institutions for an iPod. And of course, the toaster is now officially dead with only one percent reporting they would switch to a new financial institution in order to receive a new toaster.

Other findings on the uses of financial institutions include:

  • Nearly all respondents (97 percent) use a checking account. Seventy-eight percent use a savings account and nearly three-quarters of U.S. adults have a credit card issued to them from a financial institution.
  • Almost half of all consumers surveyed (47 percent) have loan debt, either auto, home or school loan.
  • The majority of U.S. adults would look to their primary financial institution if they needed a business loan (72 percent), home loan (69 percent), home refinancing (69 percent), car loan (49 percent) or other loan (67 percent).
  • Forty-seven percent of U.S. adults reported using investment products such as stocks, bonds, CDs, mutual funds and retirement accounts and 18 percent have a safety deposit box.
  • When asked about the fairness of service charges, 75 percent of U.S. adults felt that their service charges were fair.

Several attributes are important in evaluating a financial institution, such as having convenient locations, fast and efficient service and resolving problems quickly. The strong desire to conduct deposits at branches exemplifies the need for well-designed, location-conscious facilities that offer fast and efficient service. More than one-third (38 percent) of U.S. adults most often deposit money while inside the branch and a near equal number (34 percent) most often conduct deposit transactions through the branch drive-through window.

Illustrating that personal relationships are less common in the world of financial services today, 54 percent said that they do not have a good relationship with a specific individual at their primary financial institution. However, 60 percent of those surveyed say they have been banking with the same primary institution for five or more years.

When customers do switch financial institutions they do so largely because of life events (50 percent), product and service offering shortcomings (48 percent) or poor customer service or a bad experience (38 percent).

“Despite banking consolidation and automation, institutional relationships still matter because the majority of those surveyed have been with the same bank for the last five years or more,” said John Rosen, executive director of MCA Works. “And those who left did so because of dissatisfaction with customer service issues ranging from product offering shortcomings to poor customer experience, so the survey indicates the relationship matters and can be improved.”

While several attributes were important in evaluating a financial institution, some of those areas fell short on consumer satisfaction. For example, nearly all consumers (96 percent) felt that charging reasonable fees is important; however, only 81 percent were satisfied with their financial institution in this regard. Likewise, 94 percent felt it is important for their primary financial institution to offer competitive interest rates, and only 82 percent felt satisfied in this regard. Eighty-seven percent of those surveyed felt it was important that their primary financial institution “really wants my business,” and only 81 percent felt satisfied with their financial institution in that regard.

Seventy-five percent of those surveyed said that their financial institution has designed its branch for people like them. There are several factors that consumers feel are most ideal when it comes to branches:

  • Getting in and out of the branch in less than five minutes (83 percent)
  • Accessible parking (68 percent)
  • Fast line for deposits only (40 percent)

Underscoring the opportunity for branches to support small businesses with valuable add-ons, the majority of U.S. adults (59 percent) said that offering services such as postage and shipping would enhance their visit to their financial institution’s branch. Approximately one third (30 percent) said offering wireless Internet access and an almost equal number (27 percent) said that offering a coffee bar inside the branch would make them more excited about visiting their financial institution’s branch. This also illustrates a possible trend that time-pressed consumers may prefer financial institutions that offer expanded services in an effort to help consumers reduce time spent out of the office or home. The data show that all age categories were interested in the availability of postage and shipping services within a branch. The youngest age group (18 to 24 year-olds) was most interested in this service.

If a consumer wins the lottery, one might be surprised about who that lucky person might call first for financial advice. When asked about unexpectedly coming into a large sum of money ($250,000), 25 percent of U.S. adults said the first person they would call would be an accountant, 19 percent said a family member, 12 percent a banker, 10 percent stock broker, six percent friend and 1 percent a real estate broker. Interestingly, 27 percent of those surveyed said they would not call any of these individuals for financial advice.

Investing that money is a little more clear-cut. Thirty percent of Americans said they would likely spend the majority of a $250,000 windfall to pay off debt and an equal number said they would invest the money in a savings account. Eighteen percent said they would spend the majority of the money on a house. The majority (60 percent) said if they choose to invest any part of the newfound $250,000 they would do so through an alternative financial institution such as a stock broker or mutual fund company rather than their current primary financial institution (40 percent).

When asked to personify their financial institution (for example who it would resemble the most), 47 percent of U.S. adults selected Donald Trump, suggesting consumers revere their financial institution as smart, savvy and successful. Second on the list was Mary Poppins with 39 percent support followed by Ebenezer Scrooge (8 percent) and Tony Soprano (6 percent).

Overall the study found that 87 percent of U.S. adults use financial services providers such as retail banks, credit unions, savings and loan and financial securities firms. The survey results are based on Americans that use the above financial services providers.

About The 2006 IBT/MCA Market Pulse Survey
Conducted in February and March, the 2006 IBT/MCA Market Pulse Survey is based on an online survey among a nationwide sample of U.S. adults that have an account at a financial institution. Of the 696 participants, 33 percent are from the South, 28 percent from the Midwest, 24 percent from the Northeast and 15 percent from the West. Of the respondents, 51 percent are male and 49 percent are female. The margin of error for the survey is plus or minus 4 percent. The research was conduced by Atlanta-based Arketi Group.

Editor’s note: Camera-ready charts and graphs on the findings from The 2006 IBT/MCA Market Pulse Survey are available at www.ibtsource.com/viewpoint.htm or by calling Brian Boudreaux at 404-929-0091 ext. 211.

About IBT
IBT is a leading source of forward-thinking designs and ideas in the arena of branch banking. Over its 21-year history, the company has consulted to more than 175 retail and 500 financial services clients on the development of more than 3,000 workspaces. IBT offers a comprehensive range of integrated services, including retail distribution strategy, market research, space planning, design, architecture and construction. For more information about IBT visit http://www.ibtsource.com/.

About MCAMCAworks (aka Marketing Consulting Associates, LLC) is a strategic marketing consulting firm passionately dedicated to helping clients accelerate and sustain business growth. Our leadership team has more than 100 collective years of business experience working globally with market leaders in most industries, including Financial Services and Banking. MCAworks offers a comprehensive set of strategic growth services, ranging from business strategy and marketing strategy to brand building and organization. For more information, please visit our website at http://www.mcaworks.com/

Cell phone users find the devices annoying but invaluable

Cell phone users find the devices annoying but invaluable

04/03/2006

Author: Will Lester

Copyright 2006. The Associated Press. All Rights Reserved.

WASHINGTON (AP) - Even cell phone users get irritated at others who yak on their portables about their personal business in public.

An AP-AOL-Pew poll found the offended don't think they are among the callers who get on other people's nerves.

Most cell users find their phones very useful, with half keeping them on all the time. But almost nine in 10 say they encounter others using those phones in an annoying way. Only 8 percent of cell users acknowledge their own use of cell phones is sometimes rude.

"People tend to talk louder on the phone. That's quite irritating," said Pamela Sorenson, a 57-year-old resident of Bellingham, Wash. "I often hear young people, mostly college age, talking about dating and personal things I don't want to know about.

"More than two-thirds of cell phone users say it would be hard to give up their portable, according to the poll, one of the most extensive news surveys of cell phone users yet.About a fourth of the cell phone users polled, 26 percent, said they can't imagine life without their cell phone. Three-fourths of cell users say they have used it in an emergency.

"My cell phone is pretty much a necessity -- sometimes a pain but a necessity," said Sandra Moore of Colorado Springs, Colo. "I have children and the cell phone gives me the freedom to be places I need to be. It's easier to communicate with people, you can reach them almost any time."

But that means people can reach me anytime," she grumbled. "Sometimes, I just turn the ringer off."

Almost one-fourth of those polled say too many people try to get in touch with them on their cell phones -- just one of many headaches balanced against the devices' advantages.
The poll also found:

--More than a fourth, 28 percent, said they sometimes don't drive as safely as they should because they are using a cell phone.

--More than a third, 36 percent, said they are sometimes shocked at the size of their service bill.

The bulk of cell users use it traditionally-- as a portable phone. But cell phones increasingly include built-in cameras, MP3 players, games and computers with the Internet and e-mail.

Young adults and minorities are drawn to the multiple uses of a cell phone. They are more likely than older adults and whites to send text messages, take pictures, use the Internet and play music with their cell phones.

If those trends continue, the cell phones' role will change dramatically."We've got everything on my phone," said Mark Madsen, a 24-year-old college student from Chattanooga, Tenn. "I use it mostly for the phone, but I also play video games and use the MP3 player. I pretty much use it all the time."

Only one-third of U.S. cell phone owners use text messages -- a practice immensely popular in Europe and Asia. Two-thirds of cell phone owners between ages 18 and 29 send text messages -- one of many areas where young adults have a more versatile approach to the devices.More than half, 55 percent, of young adults take still pictures with their phones; 47 percent play games and 28 percent use the Internet, according to the poll of more than 1,200 cell phone users.

"We think of them as mobile phones, but the personal computer, mobile phone and the Internet are merging into some new medium like the personal computer in the 1980s or the Internet in the 1990s," said Howard Rheingold, an author who has taught at Stanford University and written extensively about the effects of technology.

Cell phones have changed the way people organize their time. Nearly half freed said they make most of their cell calls in off-hours when the minutes are free. Almost as many say they make cell phone calls to occupy time when traveling or waiting for someone.

"When I'm driving to my appointments, everybody calls me on my cell phone, said 26-year-old Abel Yanez of San Jose, Calif, who works in a landscaping business. "When I'm in my office, I use my cell phone because if I need to leave, I just leave. I have the office phone so I can dial up on the Internet."

The AP-AOL-Pew poll of 1,503 adults included 1,286 cell phone users and was conducted March 8-26. It has a margin of sampling error of plus or minus 3 percentage points. About half of the interviews, 752, were conducted by dialing landlines and 751 were conducted by dialing cell phones.

Source: Associated Press Newswires