The rise of the empowered consumer
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The rise of the empowered consumer: - Consumers have more choice due to technology and can filter out irrelevant messages. - They constantly demand more and express dissatisfaction quickly. - Marketers are challenged to embrace this consumer empowerment through honest and relevant messaging across devices, transparency, and bringing digital strategies to scale.
The rise of the empowered consumer
- 1. The rise of the empowered consumer How consumers are becoming more powerful and what to do about it? April 2012 Source: http://1.bp.blogspot.com/- 8A6t3KbfgWA/T1oI8UG1c4I/AAAAAAAAFEc/4a73b7jmCN0/s1600/shopping.jpg
- 2. In essence, there are 3 key Empowered consumer by MediaCom Lithuania, Apr 2012 factors that are challenging marketers in 2012: 1. Because of technology, consumers have more choice and are fragmented, thus traditional media is less powerful 2. Consumers have the opportunity to filter out irrelevant messages 3. Consumers will constantly demand more and express dissatisfaction quickly when they don’t get what they want Picture retrieved from MediaCom image library 2
- 3. Empowered consumer by MediaCom Lithuania, Apr 2012 Consumption has been a way to display social status for long time. What’s the mechanism nowadays? 3
- 4. Status updates Empowered consumer by MediaCom Lithuania, Apr 2012 Things you own or do can communicate person’s status (preferably – rising). • Traditional boundaries of social classes are fading – instead people are searching for new reference groups, which results in more fragmented crowds • There is a huge shift from physical status symbols to digital ones • Smartphones enable to instantly show of one’s consumption to the whole digital society • As a result, the platforms and tools that help the possessions look perfect online are very popular 4
- 5. Status updates (cont’d) Empowered consumer by MediaCom Lithuania, Apr 2012 Advertising industry needs to embrace this new need to communicate status. Source: http://www.glamour.com/sex-love- life/blogs/smitten/2012/02/27/0227-man-on-laptop-sm.jpg • Every piece of information (on signs, ads, products, buildings, etc.) might be linked to further content via QR codes, augmented reality, Apps, etc. • Social platforms, especially Facebook, have become a diary of status symbols – all content, relevant to the person, can be gathered by like button • People can integrate themselves into campaigns or imaginary brand sphere • Online it is easy to position a product/brand as a person, and when people start perceiving brands as live personalities, with character, empathy, and even flaws, those brands who will manage to give the meaning, support, and foster the community will be much appreciated and trusted. 5
- 6. Empowered consumer by MediaCom Lithuania, Apr 2012 The digital revolution is not only for young people - the changes of media consumption are present across all demographic groups. 6
- 7. Changing media habits Empowered consumer by MediaCom Lithuania, Apr 2012 Some facts from US market: Smartphones • Older and female audience are the fastest growing segments of digital users • Smartphone penetration will reach Multi-tasking 44% of mobile users in 2012 • Around 75% of TV viewers are now multi-tasking while watching it • Video-on-demand consumption will Digital usage reach 71% of internet users in 2012 Of course, it will take a while until we see such numbers in Lithuanian market; however, the trend is clear: messages are not longer split by media type, but by the form: video, audio, text, and image. The best way is to put the consumer at the center of your strategy and build communications around them: the choice of channels should be a secondary focus. 7
- 8. Empowered consumer Internet statistics in by MediaCom Lithuania, Apr 2012 Lithuania % of age group using internet The usage of internet has been growing rapidly for several years. Basically all 2007 2008 2009 2010 2011 2012 100 people aged 15-29 use it. In age segment 99 of 50-59 more than half of people are using 99 9394 80 internet, while the usage in 60-74 group is 8081 74 60 even 22%, according to the most recent 56 data. The device ownership percentage 40 52 45 also follows the same upward trend over the years. Mobile internet is still quite new 20 22 17 and mostly popular among people under 0 40; however, mobile internet usage will 15 - 19 20 - 29 30 - 39 40 - 49 50 - 59 60 - 74 expand severely in the near future. Data Source: TNS LT, Galileo % of age group who use mobile internet in 2012 % of age group having a PC, laptop, or tablet 2007 2008 2009 2010 2011 2012 100 100 9495 92 80 80 87 8483 78 60 52% 60 70 42% 59 53 40 40 22% 14% 20 31 20 25 6% 2% 0 0 15 - 19 20 - 29 30 - 39 40 - 49 50 - 59 60 - 74 15 - 19 20 - 29 30 - 39 40 - 49 50 - 59 60 - 74 Data Source: TNS LT, Galileo Data Source: TNS LT, Galileo 8
- 9. Empowered consumer TV-on-demand & social by MediaCom Lithuania, Apr 2012 media in Lithuania Male Female • Online TV platforms are becoming more and more popular as people appreciate the possibility to Sex 43,3 56,7 watch good quality broadcasting, less add- 0% 25% 50% 75% 100% cluttered TV programs when it’s convenient for them A7-14 A15-24 A25-34 • Advertising in online TV platforms can generate A35-44 A45-54 A55+ lots of clicks and high reach in a short period of time. For example, currently the most popular TV3 Age 17,1 30,4 21,3 15,9 10,2 5,2 Play website had 327,000 unique monthly visitors (Dec 2011 – Feb 2012) 0% 25% 50% 75% 100% • The demographic break-down shows that 31,3% of all TV3 Play viewers are older than 35 Village Town City 3 biggest cities (Vilnius, Kaunas, Klaipėda) Area 10,1 9,8 35,2 45,1 0% 25% Period: Oct 2011 – Jan 2012, TV3 50% 75% 100% 9
- 10. Facebook statistics in Lithuania Empowered consumer by MediaCom Lithuania, Apr 2012 • Total Facebook users (2012 04): 1,047,820 • Penetration of population is 32% and penetration of the online population – 48% (similar to the European average); • 51% of users are younger than 25 years old. However, 21% of all users are older than 35, and 9% are older than 45 Users by gender Users by age 1% 6% 2% 9% 13-15 9% 16-17 12% 18-24 male 46% 25-34 54% 35-44 female 45-54 28% 33% 55-64 65+ Source: Socialbrakers Source: Socialbakers # TOP Pages Fans PTA* # TOP Brands Fans PTA* 1. Radijo stotis M-1 183,692 12,148 1. Charlie Pizza 122,784 4,745 2. Lietuva 164,076 1,355 2. Grupinis.lt 109,346 2,566 3. Lietuviška muzika! 139,870 1,178 3. Vulcan.lt 83,251 568 4. Dienos anekdotas :) 137,536 12,478 4. Pigu.lt maunasi kelnes 82,371 1,586 5. Official Robert Burneika 127,705 10,478 5. Celerauto 75,852 27,990 6. Charlie Pizza 122,784 4,745 6. Ežys 70,497 530 Pirk.lt - Spalvingam 7. Grupinis.lt 109,346 2,566 7. gyvenimui 70,466 1,497 8. Linas Kleiza 99,078 1,229 8. Omnitel 62,088 782 9. Vulcan.lt 83,251 568 9. Bacardi 55,637 0 10. Pigu.lt maunasi kelnes 82,371 1,586 10. auto.plius.lt 51,670 337 *PTA – People talking about
- 11. Empowered consumer by MediaCom Lithuania, Apr 2012 “My internet does not look the same way yours does” – how to use it for your products? 11
- 12. The filters which form the Empowered consumer by MediaCom Lithuania, Apr 2012 internet for each of us: Social network timeline might be the 1st layer toughest spam filter that exists. You can “unsubscribe”, “hide”, “uncircle” the posts or persons you are not interested in or find them annoying “The filter Ability to organize your contacts into certain lists creates the hierarchies of bubble”* 2nd layer relevance: the content posted by “best friends” might get very different attention than by “opinion leaders” or “old It is important to work classmates” your way around those filters in order to keep Google and other search engines show your message “in the 3rd layer subjective search results that are bubble” produced by algorithms with each users search and browsing history, social media profiles, etc. *named as such by Eli Parisen 12
- 13. Digital persuasion Empowered consumer by MediaCom Lithuania, Apr 2012 Persuasion profiles - traditional sales psychology, updated for the digital age: • Based on an understanding of our Reciprocity (connection) psychology rather than the relevance of a previously purchased or viewed item. Scarcity • A step beyond online behavioral targeting in that they detail not what we have been looking at but rather Authority what messages we are likely to respond to. • There are numerous ways in which Commitment & consistency these traditional sales techniques can be applied in e-commerce for each customer individually: small Consensus gifts (reciprocity), wishlist (commitment), best-seller tags Liking (consensus), etc. 13
- 14. Empowered consumer by MediaCom Lithuania, Apr 2012 In short, advertisers who want to embrace all the changes that come with the empowerment of consumers, should: 14
- 15. 6 essential actions for Empowered consumer by MediaCom Lithuania, Apr 2012 advertisers 1. Be honest and talk 2. Deliver relevant to the consumers messages 4. Be transparent and 3. Device a device- respect the neutral strategy consumer’s data 6. Think about how to 5. Love mobile bring scale to digital empowerement 15
- 16. Credits Empowered consumer by MediaCom Lithuania, Apr 2012 For more detailed information and full articles please take a look at the MediaCom’s media industry magazine Blink, published quarterly, and recent White paper, summarizing MediaCom’s webcasts: Blink, #4 2011 (http://www.mediacom.com/en/news-- insights/blink/issues/edition-4-2011.aspx) The Insider, the White paper (http://www.mediacom.com/media/2200734/ white_paper_4_empowered_consumer.pdf) 16
- 17. Empowered consumer by MediaCom Lithuania, Apr 2012 Good luck! Prepared by Agnė Pranulytė Research developer at MediaCom E-mail: [email protected] Office: +370-5-260-8463 Fax: +370-5-260-8247 UAB Trendmark, Islandijos g. 1/Vilniaus g. 31, LT-01401 Vilnius, Lithuania @Facebook: MediaCom Lithuania www.mediacom.com Photo by Justina Palinavičiūtė 17