Contenu connexe


Assignment 2: How consumers use technology and its impact on their lives

  1. UNIT 1: Evolution of Digital Marketing Assignment 2 Student name: Carolina Coronado
  2. INTRODUCTION Globally, there are more and more people connected to the internet than ever before. The use and development of smartphones, smart TV’s, desktops, game controllers, laptops, tablets and wearables has enabled users to connect to the internet more rapidly and frequently. (Kemp, 2017) The digital revolution has shifted the equilibrium between brands and consumers which means the path to purchase has also changed and it has also transformed how consumers interact online. (Sethupathi, 2014) There has been also a dramatic increase in the use of social networks as a digital marketing channel embolden users to participate in discussions, share opinions and engage with others in real time. Companies that maximise their social presence and provide a good customer service via social media allow business owners to market their brands directly to consumers. (Chaffey, 2013)
  3. 0 50000 100000 150000 200000 250000 300000 350000 400000 450000 1995 1996 1997 1998 1999 2000 2003 2004 2005 2006 2007 2008 2009 2011 2012 2013 2014 2015 2016 2017 NumberofUsersinMillions The above graph shows how the world population who have access to the Internet went from 0.4% in 1995 to 54.4% today. In a matter of very few years, ‘’the Internet consolidated itself as a very powerful platform that has changed forever the way we do business, and the way we communicate. The Internet, as no other communication medium, has given an International or, if you prefer, a "Globalized" dimension to the world. Internet has become the Universal source of information for millions of people, at home, at school, and at work.’’ (Internet World Stats, 2018) GROWTH OF THE INTERNET SINCE 1995 UNTIL TODAY ACCESS TO THE INTERNET
  4. 0 500 1,000 1,500 2,000 2,500 Asia Europe Africa Latin America / Caribbean North America Middle East Oceania / Australia Asia is the region with more internet users in the world and it has grown by 1,704% in the last 18 years. Followed y Europe and Africa with a growth of 570% and 10,199%, respectively. ‘’Internet is changing all the time. Two things that have marked it's evolution recently: the social web and mobile technology. These two innovations have changed the way people use the Internet. In the social web people have found a new way to communicate. Since its creation in year 2004, Facebook has grown into a worldwide network of over 2,230 million active users. Mobile technology, on the other hand, has made possible a much greater reach of the Internet, increasing the number of Internet users everywhere.’’ (Internet World Stats, 2018) INTERNET USERS IN THE WORLD BY GEOGRAPHIC REGIONS - JUNE, 2018
  5. 50 Kbps - 1984 The predecessor to the Internet, began operating with 50 Kbps circuits 56 Kbps - 1986 The National Service Foundation’s internet backbone NSFNET went online at 56 Kbps 45 Mbps - 1991 The NSFNET network was connected to 45 Mbps WWW. Dial – Up – 1993 With the introduction of the World Wide Web, dial-up internet access was limited to 56 Kbps modems connecting via phone lines 3.5MB A single, low-quality song (3.5MB) would take around 10 mins to download at full speed. But, 30 mins to a few hours at low speed. 700MB A low-quality movie (3.5MB) would take around 28hrs download at full speed. But, 3-5 days at low speed Broadband – 1996 The earliest broadband in north America was available by 1996 in Canada. 2010 By 2020, over 65% of U.S. households had adopted broadband 2000 Between 2000 and 2001, broadband subscriptions increased 50% and saw another 48% in 2003 Google Fiber – 2013 Launched ‘’Google Fiber’’ powered by a gig - From 10MB/sec to GB/sec INTERNET CONNECTIONS: PAST TO PRESENT Information source: (Patrick, 2013)
  6. Average internet connection speed in the United States from 2007 to 2017 (in Mbps), by quarter. (Statista, 2018) The above graph shows how quickly the internet speed has had to increase to meet user expectations. The better the quality of the online information, the more space requires; which means that they weigh more, demanding a faster internet connection. EVOLUTION OF THE INTERNET SPEED IN USA
  7. The world’s mobile download speed increased 30.1% in 2017. Fixed broadband downloads increased 31.6%. ‘’With a mean global speed of 20.28 Mbps, mobile downloads increased 30.1% over the last 12 months and mobile uploads increased 38.9%. A global average of 40.11 Mbps makes fixed broadband downloads 97.8% faster than mobile and this speed increased 31.6% during the same period. Uploads over fixed broadband showed the smallest increase of 25.9%’’ (Macketta, 2017) INCREASES OF THE INTERNET SPEED
  8. Laptops & Desktops 43% Year on year change: -3% Mobile Phones 52% Year on year change: +4% Tablet devices 4% Year on year change: -13% Other Devices 0.14% Year on year change: +17% Smartphones are the world’s preferred choice for going online too, accounting for a greater share of web traffic than all other devices combined. People now spend 7 times longer using mobile apps compared to mobile web browsers, so mobile’s ‘share of internet’ is likely even higher than the figures above suggest. (Macdonald, 2018) This trend is putting pressure on companies to offer their products/services on a mobile-friendly website. All content needs to be able to be reached by mobile phones and needs to be a seamless experience; otherwise, organizations will miss opportunities. DIGITAL DEVICES USED BY AUDIENCES
  9. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Smartphone Computer Tablet Other Internet-enabled device United Kingdom Ireland Data source: Google’s Barometer Even though mobile phones are the preferred choice for going online, purchases are still been made through computers. Reflecting a behaviour to factor in when designing marketing campaigns. People are concern about their privacy, security and difficult- to-use; that is the reason why users browser on their mobile phones but the purchase is made trough their PCs. If organizations want to reach to those people who search on the move, they need to optimize their website for mobile use not to miss any lead/visitor/costumer. WHICH DEVICES DO PEOPLE USE TO MAKE THEIR PURCHASE?
  10. Figure: ‘’The use of Search Engines heavily favoured Google throughout 2017 - averaging a net share of 74.54%. This again reinforces the fact that Google is the market leader, however, it also highlights that the "Others" such as Yahoo, Bing and Baidu etc. still hold a large audience and it would be silly to simply ignore them’’. (Mangles, 2018) ‘’Google is the reigning king of 'spartan searching', and is the single most used search engine in the world. While it doesn't offer all the shopping center features of Yahoo! Google is fast, relevant, and the largest single catalogue of web pages available today’’ (Gil, 2018) Amazon, Ebay & Alibaba: ‘’They can also be used as search tools, where consumers can evaluate offers from competing sellers who use these marketplaces as sales channels.’’ (CMA, 2017) and websites such as: Expedia, TripAdvisor and, they are specialised search tools are used for particular goods or services such as online travel agents. (CMA, 2017) HOW CUSTOMERS SEARCH FOR INFORMATION – Search Engines • Facebook • Twitter • Pinterest • Snapchat • Instagram Consumers will go to the social channels to also look for products or additional information on retailers and brands (i.e.: reviews, content, service, etc.) (CMA, 2017) • 62% of adults get their information from social media. • 70% of consumers are more likely to use a local business if it has information available on a social media site. • 88% of millennials get their information from Facebook, and 47% say social media influences their purchase decision. (Veriday, 2017) Social Media
  11. 0% 10% 20% 30% 40% 50% 60% Clothing & accessories or footwear Books, CDs, DVDs or Video games Cosmetics, beautry or health products Computer hardware, software or peripherals Digital cameras/camcorders, audio devices United Kingdom Ireland Data source: Google’s Barometer WHICH PRODUCTS DO PEOPLE PURCHASE ONLINE IN IE AND UK? The above graph shows people’s preferences when purchasing products online. Clothing and accessories or footwear are number one choice followed by books, CDs or video games. Any clothing store who does not have an online presence will be left behind which may explain why now companies have adapted to new customer’s needs and improved their return and delivery policies to make it more attractive for their users.
  12. 1 60% of shoppers have purchased clothing, shoes and accessories items 55% of shoppers have purchased books, movies and music 43% of online shoppers have purchased computers or electronics 34% of shoppers have purchased beauty items at marketplaces 2 3 4 Data source: Wallace, 2018 WHICH PRODUCTS DO PEOPLE PURCHASE ONLINE? That may explain why platforms like Spotify, Apple Music Store, Netflix, HBO, etc. were created, the online demand for music and movies is considerably increasing with time. Before, people would go to stores to buy music, movies, games, etc., this is no longer a reality – perhaps only for collectors – even some music stores have permanently closed because their users moved to online stores. Someday some TV channels may also close down as the trend is to watch movies, series, documentaries, online at any time and anywhere.
  13. VIDEO COMSUMPTION • The value of a one-minute video is 1.8 million words. • The average user spends 16 minutes and 49 seconds watching online video ads every month. • 43% of people want to see more video content. • 55% of people watch videos online every day. • 65% of video viewers watch more than ¾ of a video. • 59% of executives agree that if both text and video are available on the same topic, they are more likely to choose video. • Nearly two-thirds of consumers prefer video under 60 seconds. • Marketers who use video grow revenue 49% faster than non-video users. • People spend on average 2.6x more time on pages with video than without. • 74% of 2017 online traffic was video content. (50Wheel, 2018) GENERAL VIDEO STATISTICS
  14. CONSUMER TRENDS: Costumer Service Contact Channel Preference by Generation Millennial Generation-X Boomer Silent Understanding customer demographics and their channel preferences should drive investments to improve the customer experience. 44% Social Media/Chat 34% Phone 20% Email 35% Social Media/Chat 41% Phone 22% Email 22% Social Media/Chat 55% Phone 23% Email 18% Social Media/Chat 52% Phone 28% Email CONSUMER PREFERENCES FOR DIGITAL CHANNELS • Over the last four years, consumer preference for web self-service has INCREASED BY 25% • Similarly, online chat has INCREASED BY 21% • While usage is still relatively low, preferences for mobile app self-service and text messaging are also ON THE RISE (The Northridge Group, 2018)
  15. • The expansion of the internet has dramatically changed how we consume media. • Key motivations for media consumption include shopping, entertainment and social (Chaffey, 2013) • The digital consumer is more informed, more connected and more empowered than ever before. The digital shopper consumes media in various ways including through eBooks, blogs, webinars, podcasts and videos (Carpenter, 2013) SUMMARY • A video is worth more than a thousand words. • In 2017, the 74% of online traffic was video content. • Mobile phones usage is on the rise. Consumers are now spending more time browsing on their phones than on their laptops/computers. Making companies to optimize their websites to facilitate navigation and to avoid losing potential customers due to a poor mobile experience. • Social media has given a voice to customers and they are talking, loud and clear. • Most companies, if not all, have to have a presence on at least one social media channel to reach out to their audience and vice versa. • Social media has also changed the customer service sector. People are now seeking for a customized customer service and are drifting to companies who make them feel special, unique and provide them with a seamless customer service experience. Before, companies would take days to reply to our emails. Now, there are companies who respond to customers in less than an hour through their social channels. • Visual content (i.e.: Images, videos, GIFs, etc.) is on demand. It is important for marketers to incorporate these content type to their campaigns to reach to their targeted audience
  16. • 50Wheel. (2018) The Top 50 Video Marketing Statistics of 2018. Available at: Accessed 21 October 2018 • Carpenter, G., 2013. Power shift: The rise of the consumer-focused enterprise in the digital age, Chicago: Review Trackers • Chaffey, D. S. P., 2013. In: Emarketing Excellence: Planning and Optimizing your Digital 8 Marketing 3rd Edition. s.l.:Routledge, pp. pp.145 - 156. • CMA (2017) Online search: Consumer and firm behavior. Available at: 2017.pdf Accessed 18 October 2018 • Consumer Barometer with Google. (n.d) What people have purchased online?. Available at: builder/?question=N44&filter=country:united_kingdom,ireland Accessed 18 October 2018 • Consumer Barometer with Google. (n.d) Which devices people use to find local information. Available at: builder/?question=N44&filter=country:united_kingdom,ireland Accessed 18 October 2018 • Gil, P. (2018) The Best Search Engines of 2018. Available at: Accessed 21 October 2018 • Internet World Stats. (2018) Internet Growth Statistics. Available at: Accessed 21 October 2018 • Internet World Stats. (2018) Internet User in the World by Regions – June 30, 2018. Available at: Accessed 21 October 2018 REFERENCE LIST
  17. • Kemp, S., 2017. Digital In 2017: Global Overview. [Online] Available at: [Accessed 4 November 2018] • MacDonald, N. (2018) Digital in 2018: World’s Internet Users Pass the 4 Billion Mark. Available at: digital-report-2018 Accessed 18 October 2018 • Macketta, I. (2017) The World’s Internet Speeds Increased More Than 30% In 2017. Are You Keeping Up? Available at: Accessed 21 October 2018 • Mangles, C. (2018) Search Engine Statistics 2018 Online Available at: statistics/ Accessed 24 October 2018 • Patrick, B. (2013) An Accelerated History of Internet Speed (Infographic). Available at: Accessed 18 October 2018 • Statista. (2018) Average internet connection speed in the United States from 2007 to 2017 (in Mbps), by quarter. Available at: Accessed 21 October 2018 • Sethupathi, R. B.-S. H. W. M. V. N., 2014. Connected Consumers Are Not Created Equal: A Global Perspective. [Online] Available at: /asset_publisher/Aj6WmQ8WDHBx/content/connectedconsumers-are-not-created-equal-a-global-perspective/10192 [Accessed 29 April 2017]. • Statista. (2018) Average internet connection speed in the United States from 2007 to 2017 (in Mbps), by quarter. Available at: Accessed 21 October 2018 REFERENCE LIST
  18. REFERENCE LIST • The Northridge Group. (2018) State of Customer Service Experience 2018. Available at: Experience-2018 Accessed 20 October 2018 • Veriday. (2017) How Customers Get Information in 2017. Available at: Accessed 20 October 2018 • Wallace, T. (2018) The 19 Ecommerce Trends + 147 Online Shopping Stats Fueling Sales Growth in 2018. trends/#top-19-ecommerce-trends-of-2018 Accessed 18 October 2018