Tablet effect on media consumption

The iPad’s effect on media consumption John Oswald Business Design Lead Fjord London @fjord

Slide 2 © Fjord 2011 | Confidential

What questions does the iPad raise if you’re a media organisation?

The iPad’s has really taken off, but is it a passing thing?

What’s it doing to the overall print / web debate?

What are the demographic trends?

What are the device trends?

How best to act and filter some kind of signal from the noise?

Where best to invest?


Content

•  Some numbers and projections

•  What can the form offer?

•  What’s really changing?

•  What are the underlying trends for media consumption?

•  Thinking context?

•  Some pointers and ideas


Numbers…

14.8 million sold in first 9 months

48 million worldwide in 2011 (Gartner)

294 million worldwide by 2015 (Gartner)

iPad 69% market share in 2011…

… but 47% market share in 2015


…these are interesting too

90% consumer awareness (Adage, Jan 2011)

21% 18-34 year olds intend to buy one (same survey)

Erosion of PC / Netbook growth Gartner’s growth projections reduced from 16% to 10.5%, on sales of 387 million worldwide


There are adjacent effects of the iPad’s growth

Which eBook reader do you currently own?

Kindle

iPad

Source: ChangeWave research


There are signs that advertising is more welcome here

Source: The Nielsen Company



A note of caution

•  So far, slightly niche device – mainly male •  Education levels are higher among iPad owners •  Many are early adopters •  More than half are high earners

Pinch of salt needed with tales of advertising and purchasing


There will be the inevitable catch-up




But in a nutshell,

I probably don’t need to tell you that this is worth embracing



Fighting for timesha re All fighting for timeshare


News on itunes…


Not all apps are created equal*

*according to a Webcredible survey in April 2011 (www.webcredible.co.uk)


In a nutshell,

We’re still grappling with the form factor and potential of the iPad




Making best use of the screen


Using natural interactions


Scaling the brand


Doing more than just displaying the news


But let’s not get ahead of ourselves,

What’s changing as a result of the iPad phenomenon?



Casual computing


Impact of tablets on use of other devices

Source: The Nielsen Company, Q1 Mobile Connected Device Report



Reasons for using tablets over other devices

Source: The Nielsen Company, Q1 Mobile Connected Device Report


What people are downloading

Source: The Nielsen Company


Mobile computing…


… for the workforce too

Source: AlphaWiseSM CIO Survey, via Morgan Stanley


People are spending a lot of time using it

Source: RJI – donald w. reynolds journalism institute – DPA iPad research project, 2011

63% of people spend more than an hour in a typical day with their iPad. 28% more than two hours a day

89% use their iPad throughout the week


Touch generation…?


Total shipments over first five years (in other words, people just ‘get it’)

Source: Morgan Stanley Research, Gartner, IDC, company reports, 2011

Millions sold


Social ease


That’s all very well,

What are some of the bigger trends for media consumption?


Keeping up with news / current events is (still?) the most popular main use

78.6% of iPad users surveyed spent 30 minutes a day (That’s compared to 52.5% on TV, 18.8% on daily newspapers)

48.9% spend an hour a day consuming news

9 out of 10 said they are very likely (71.8%) or somewhat likely (21.2%) to use a newspaper’s app for reading news and features stories as opposed to a browser



But there’s a bigger trend – personal curation


And this doesn’t even account for sharing

The average Facebook user creates 90 pieces of content a month

30bn pieces of content are shared each month (e.g. news

stories, links, photos)


So it’s a short leap of imagination to totally crowdsourced media

Minnesota Public radio’s roster of ‘journalists’ with specialist knowledge – its Public Insight Network


Because TV is the new Print (or, the Web is the new TV)

•  The live web […] is fast becoming our primary means for viewing and listening to news

•  The web is the new TV and radio, because it has subsumed both


Whither the print edition?

30.6% of iPad users surveyed don’t subscribe to print news

10.6% have already cancelled their print subscriptions

58% said they were likely to cancel their print subscriptions in the next year



Digital First, Print Last (powered by the iPad?)

•  Stop listening to print people and put digital people in charge •  Newspapers must invest in content, sales and disruption – sell or

outsource everything else •  Complaint: newspaper dollars become digital dimes. Response: start

stacking the dimes


How one media company has approached this - Bonnier


User research and basic design principles

Real News Live Content Charged Design


Live Newsroom: ‘read’ mode


Live Newsroom: ‘act’ mode


How has it been received?

Launched for all the major brands in Sweden

The concept has reached 50% of the iPad user base

15% of customers have become paying subscribers.


So to summarise,

The iPad has arrived at a time of massive media transformation… …and has accelerated it


Some success criteria (in our opinion)

Five likely foundations for success:

Think Context

Build Engagement

Real user insights

Think Gaming

Business model first

… maximising how to make the most of where your users are and what they’re doing

… enabling interaction on every possible level, and sharing mechanisms

… primary research, behavioural data, willingness to test ideas with real users/customers

… not playing games, but game type interaction to build engagement

… settling on a means of monetisation appropriate to the type of service and the context


Top things to avoid (if you can..)

Five likely foundations for failure:

Copying print form (slavishly)

Alienating readership through complex interaction modes

Diverging from other platforms

Individual silos

Transfer of commercial model from print/web to iPad

… simply copying the print edition is very limiting and misses lots of tricks

… but complexity can really put people off, unless it’s appropriate

… it has to feel seamless irrespective of platform, building on awareness of context

…real potential for bulk deals as well as cross-brand interaction

… poorly judged advertising can alienate for good


What questions does the iPad raise if you’re a media organisation?

The iPad’s has really taken off, but is it a passing thing?

What’s it doing to the overall print / web debate?

What are the demographic trends?

What are the device trends?

How best to act and filter some kind of signal from the noise?

Where best to invest?


Thank you

Tablet effect on media consumption

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