Deloitte research report covering Australia's media usage and preferences 2012. For more information refer http://www.deloitte.com/au/mediademocracy

1. Vox Populi:
State of the Media
Democracy Survey
Australia’s media usage and preferences 2012
GO »

2. Contents
Foreword About this survey
Entertainment Media devices Internet Advertising
Newspapers & References
Re Relevant Deloitte Contacts
magazines thought leadershipp

3. Foreword
Foreword
What are Australian consumer habits when it comes to media This survey is part of a Deloitte research project which was
consumption and how will they change? What are consumer conducted across the globe in 2011, covering Australia, France,
preferences and attitudes towards future technology? Do Germany, India, Japan, Spain, the United Kingdom, and the United
About this survey Australians consume media differently to people in other countries? States. In Australia, data gathering, performed by an independent
What are the specific challenges that Australian companies are research organisation, obtained usage and preference data from
facing as they anticipate and respond to these preferences and over 2,000 Australian consumers across five distinct demographics.
behaviours?
We are constantly fascinated by changing consumer behaviours
The first edition of our State of the Media Democracy survey and how they are impacting our clients – representing material
provides unique demographic insights into how Australian challenges and opportunities. We remain committed to working
Entertainment consumers are currently interacting with technology, purchasing closely with our clients to help them stay ahead of these dynamics
products and responding to TV and online advertising. so their businesses can respond appropriately.
Media devices These observations and insights are relevant to all companies We hope you find this report useful and we look forward to doing
grappling with the challenges of engaging new and existing it all again next year so we can report on how things have shifted.
customers and audiences via new platforms, devices and media.
Internet This survey considers:
• Consumer usage and preferences for traditional and emerging
media devices and platforms Damien Tampling Clare Harding
Advertising • The evolving adoption of mobile devices Partner Partner
• Reactions to conventional and next generation advertising National Leader Consulting
• Emerging customer preferences and the implications for Technology, Media Technology, Media
Newspapers & advertisers, content producers, distributors, developers and & Telecommunications & Telecommunications
magazines device manufacturers.
References
Relevant Deloitte
thought leadership
01

4. About this survey
Foreword
Focussing on four generations and five distinct age groups, the Undertaken by an independent research organisation between 09
survey aims to provide a ‘reality check’ on how consumers between November 2011 and 08 December 2011, the survey employed an
the ages of 14 and 75 are interacting with media, entertainment online methodology to obtain usage and preference data from over
About this survey and information (as depicted in Figure 1). 2,000 Australian consumers.
Additional insights for this report were derived from Deloitte
Technology, Media and Telecommunications (TMT) specialists who
Figure 1. Consumer groups surveyed work every day with leading Australian companies in these sectors.
Where appropriate, we have also included insights and findings
Entertainment from the research conducted by other Deloitte member firms
around the globe as part of the State of the Media Democracy
Trailing millennials Leading millennials report.
Media devices Age:14–22 Age: 23–28
Internet
Xers
Age: 29–45
Advertising
Newspapers &
magazines Boomers Matures
Age: 46–64 Age: 65–75
References
Relevant Deloitte
thought leadership
02

5. Key findings
Foreword
The investment choices and operating model decisions of all
In a world of more content, more companies will inevitably be affected by this digital complexity.
About this survey connectivity, more devices and more The challenge is to anticipate what is most important to your
customers and, therefore, grasp how to build new capabilities to
interaction, some home truths remain retain brand loyalty and revenue in a world of exploding choice and
the same… and we still love TV competition.
This survey reveals a number of key themes, including: Entertainment
• The continuing importance of live TV, notwithstanding the A total of 63% of Australians surveyed prefer to watch TV content,
growing importance of ‘my time, my choice’ viewing on any device, more than any other form of entertainment. This
Entertainment is followed closely by using the Internet (47% of respondents) for
• The continuation of platform convergence and the challenges
social or personal interests. Compared to international consumers
of achieving a consistent brand or product experience across
surveyed, Australia’s preference for watching TV is less than that for
platforms and devices
Media devices • The importance of anticipating consumer preferences to curate
consumers in the US, Germany, Japan and the UK and Australians
also use the Internet less for entertainment purposes than observed
the ‘right’ content for consumers in most other countries, except for Germany and Japan.
• The rise of the tablet and the early signs that is it displacing
Internet laptop usage in certain circumstances. Watching live TV on a home system remains the significantly
favoured method for watching TV content across all age groups.
Consumers are doing more of everything – converting, shifting, In Australia, 64% of consumers surveyed typically watch their
Advertising viewing and sharing. This explosion of digital-based behaviour is favourite programs in this way, followed by Online (19%) and via
driving complexity and uncertainty for all companies – both those a Personal Video Recording (PVR) device (11%). This suggests that
that do and don’t currently engage with customers via digital the TV schedule is still guiding viewing choices and that for most
Newspapers & channels. What is certain is that the younger generations we people, the allure of TV is still tightly linked to the passive nature of
surveyed are unsurprisingly engaging digitally and in ways which viewing – they can sit back and be entertained on a large format
magazines
have never been conceived of before. What is surprising is that in device in the comfort of their own home. TV as we currently know
a number of cases older generations too have vigorously adopted it retains social currency or the ‘water-cooler factor’, whereby
digital media for certain activities. viewers are attracted to major TV events as a mechanism for social
References
inclusion.
Relevant Deloitte
thought leadership
03

6. Foreword
Australians are, however, watching more of their favourite TV in 2011 and tablet penetration is expected to triple over the coming
shows on the road via smartphones and tablets, with 12% of those years. Australian consumers are increasingly using smartphones
surveyed having watched TV shows on online devices such as and tablets as legitimate substitutes for more longstanding
About this survey smartphones, tablets and portable games consoles. This behaviour entertainment and productivity devices, such as the laptop.
is currently skewed heavily towards Trailing and Leading Millennials,
but we expect this behaviour to shift up the age brackets in coming The importance of platform convergence, consistent branding and
years. In Australia, 4% of respondents watch TV on a tablet, which customer experiences across multiple channels is increasing as more
places Australian respondents third behind India and the UK in Australian consumers use multiple devices to consume media. We
the countries surveyed. We would expect this rate to increase would also anticipate an increased role for cloud-based, online
in coming years, especially as the penetration of tablet devices storage as consumers increasingly attempt to shift content between
Entertainment increases. devices.
The majority of Australians (60% of respondents) are multi-tasking Internet
Media devices while watching TV. While it may be fair to assume that audiences According to the survey results, the Internet is the second most-
have always multi-tasked by reading, cooking or eating while preferred type of media entertainment and continues to challenge
watching TV, what is true now is that six of the seven top TV and traditional forms of entertainment for consumers’ time and
multi-tasking behaviours occur on another electronic device. The attention. Millennials and Boomers have an even more pronounced
Internet challenge for organisations is to engage consumers further by preference for spending time online via portable devices.
creating interactive opportunities, which are linked to the content,
either on the TV or on other devices. The most common activity on the Internet across all age groups
Advertising surveyed is using search engines as a gateway for other activities,
Media devices such as seeking product reviews or comparing prices.
According to the survey, Australia has one of highest smartphone
Newspapers & and tablet penetration rates worldwide (46% and 13% Online reviews and recommendations are particularly influential
magazines respectively). A weak economic outlook and low consumer factors in buying behaviours. Although seeking product information
confidence might be expected to reduce consumer spending on online is equally popular across all age groups, Millennials and Xers
discretionary items such as new TV sets or tablet computers; but are more influenced by online reviews and recommendations than
References this has not happened. In fact, tablet sales skyrocketed in Australia older generations. The global survey data shows this Australian
Relevant Deloitte
thought leadership
04

7. Foreword
finding to be consistent with findings in other participating countries While industry spending on online advertising has increased, our
(with the exception of Japan), with consumers overseas even more survey reveals that newspaper advertising remains a more influential
influenced by online reviews. The majority of Australian consumers form of advertising in Australia than other forms of advertising
About this survey surveyed had also learned of a new product for the first time online including online. One reason for this is that 69% of Australian
or made a purchase decision based on an online review. consumers perceive online ads as more intrusive and, therefore, less
effective than other forms of advertising.
Advertising
TV advertising is still the most influential form of advertising on We believe this presents both an opportunity and challenge to
consumer buying decisions in Australia (68% of respondents), advertisers and the need to reassure consumers regarding the
followed by newspapers (53%) and online advertising (47%). The security of privacy in online environments will become more
Entertainment affinity of Australian consumers with TV advertising is broadly pronounced in coming years.
consistent with global trends, with the exception of Japan, where
online advertising is the most influential on consumer buying Newspapers and magazines
Media devices decisions. As evidenced by the survey, the majority of Australian consumers
still prefer the print format and value their newspaper subscriptions
This is consistent with and reinforces our view that TV remains far more than online newspapers and magazines. However,
a powerful force in entertainment consumption and a powerful newspaper content is increasingly being consumed in different
Internet ingredient in most advertising budgets. formats and on different devices, with 58% of Australian
respondents having done so in a format other than the traditional
Nevertheless, consumer behaviours such as ad-skipping on Digital printed hard copy. This adoption of non-printed hard copy forms of
Advertising Video Recorders (DVRs) and TV viewer multi-tasking are potential newspaper consumption is consistent with the US, France and the
catalysts to reduce the influence of TV advertising over time. UK, ahead of Germany, but significantly behind India and Spain.
Advertisers have the opportunity to rethink ad design and to
Newspapers & incorporate the ‘small screen’ of smartphones, tablets and laptops
magazines into the ‘big screen’ viewing experience of the TV. We believe the
challenge is to shape the multi-tasking behaviour into a multi-
tasking experience built around the product being advertised,
References increasing consumer engagement with the brand or product and
maintaining advertising effectiveness in an environment of attention
saturation.
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thought leadership
05

8. Foreword
Respondents have demonstrated a desire
About this survey to receive more targeted advertising,
but paradoxically don’t want to share
the personal information that would
facilitate better targeting
Entertainment Opportunities exist for newspaper providers and advertisers to
connect with consumers across multiple platforms and provide
an integrated content or brand experience. The challenge for
Australian publishers is the same as that being experienced
Media devices
throughout the globe – how to move consumers from paid print to
paid digital content – and whether consumers will demonstrate a
willingness to pay for online content that they have, to date, been
Internet able to access for free.
From our observation, topic depth, in-content verticals which
incorporate search capabilities, exclusive and differentiated online
Advertising stories and inherent content portability are the key to driving
consumers’ online adoption.
Newspapers &
magazines
References
Relevant Deloitte
thought leadership
06

9. Entertainment
Foreword
About this survey
So many options,
but we’re still
in the main
Entertainment
couch potatoes
Media devices
Internet
Advertising
Newspapers &
magazines
References
Relevant Deloitte
thought leadership
07

10. Entertainment
Foreword
61% choose using the
“Nothing can beat 82% prefer Internet for social and
the Internet for computers to TV 72% use personal interests in their
About this survey entertainment for entertainment mobile phones for top three entertainment
purposes” purposes entertainment categories
Trailing millennials
“TV is fun but the 56% chose watching
Internet provides me 70% prefer Only 17% chose TV on any device in their
Entertainment with more variety and computers to TV listening to the radio top three entertainment
interest” for entertainment in their top three categories
Leading millennials
Media devices
“Both TV and 60% think that the 64% chose watching
computers offer computer is more an 49% use their TV on any device in their
me valid forms of entertainment device mobile/smartphone as top three entertainment
Internet entertainment” than TV entertainment device categories
Xers
Advertising “The Internet is 39% place
useful but TV offers 67% chose watching reading newspapers
Only 46% prefer TV on any device in their in their top three
me more relevant
their computer top three entertainment entertainment
Newspapers & entertainment over their TV categories categories
magazines options”
Boomers
“Traditional media
References provides me with all 73% place watching Only 6% use 51% value reading
the entertainment I TV in their top three mobile phones for the newspaper for
entertainment entertainment
Relevant Deloitte need” entertainment categories
Matures
thought leadership
08

11. Foreword
TV rules, OK? For Australian Trailing Millennials, the use of the Internet for social
Australian respondents prefer to watch TV content, on any device, or personal interest is the preferred entertainment source (61% of
more than any other form of entertainment. This is followed closely respondents), while older generations of Australian consumers
About this survey by using the Internet for social or personal interests. prefer reading newspapers (51% of respondents) and books (35%
of respondents) over using the Internet for social or personal
Figure 2. Ranking of preferred sources of entertainment reasons.
Preferred sources of entertainment among all Australian consumers
surveyed. Please rank your top three. Compared to international consumers surveyed, Australian
respondents preference for watching TV is less than that of
consumers in the US, Germany, Japan and the UK. Australians also
Entertainment Watching television (on any device) 63%
use the Internet less for entertainment purposes than observed in
Using the Internet for social or personal interests 47% most other countries, except for Germany and Japan.
Media devices Listening to music (using any device) 35% Live TV remains the most popular method of content
delivery
Reading newspapers (either printed or online) 30% Watching live TV on a home system remains the number one
method to watch favoured content across all age groups. It is
Internet Reading books (either physical books
or via an e-book reader/online
29% preferred by over 50% of Millennials and 70% of Boomers and
Matures. Watching TV via DVRs is equally popular across all age
Going to the movies 25%
groups with a slighter higher percentage within older age groups.
Advertising Listening to the radio (any format/device) 22%
Reading magazines (either printed or online) 18%
Newspapers &
Attending live performances (sporting events,
magazines concerts, or stage (musical, dramatic or other)
16%
Playing videogames (handhelds, PC, console,
15%
mobile/cellular/smartphone, online)
References
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thought leadership
09

12. Foreword
Figure 3. Methods used to watch favourite TV show This preference for live TV on a home system possibly relates to
How do you typically watch your favourite TV shows using the the social currency of TV or the ‘water-cooler factor’, whereby
following methods? viewers are attracted to major TV events in part as a driver of
About this survey social inclusion. Further, TV still remains principally a ‘push’ service,
64% whereby viewers are largely passive in their relationship with
TV content and enjoy the benefits of having a content curator
assemble and schedule programming for them. Compounding
19%
11% 9% 9% this in Australia is a lack of emergent alternatives to traditional TV,
3%
such as IPTV players like Hulu. We wonder how quickly this may
Live TV Online DVR DVD/ Other ‘On change given younger generations’ relatively higher usage of online
Entertainment system Blu-ray demand’
platforms and the proliferation of content platforms and devices.
Of the respondents surveyed, Australia trails the US and UK in DVR
usage, with 31% of U.S. consumers and 23% of UK consumers Online is an increasingly popular platform on which to
Media devices watching their favourite TV shows on a DVR device, compared watch broadcast TV or movie content
to 11% of Australian consumers. Although the use of DVR is Online sources, namely a TV show’s Internet site, video-sharing
challenging live TV, it is currently a distant number three for sites, peer-to-peer networks and free online video services now
Australian consumers. account for 19% of the total of methods used to watch TV or
Internet movie content. There is a significant difference among Australian
Additionally, consumers in all other surveyed countries, except for consumers with the adoption of the online platform between
Germany and Japan, watch more TV online (i.e. source TV content Millennials and other age groups. Millennials (39%) use an online
Advertising via streaming, video-on-demand and legitimate or illegal platform to view TV content on a weekly basis, which is twice as
download sites) than Australian consumers. much as Xers (20%), nearly six times more than Boomers (7%), and
20 times more than Matures (2%).
Newspapers &
magazines
References
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thought leadership
10

13. Foreword
Figure 4. Online methods used to watch favourite TV show New broadcast content is being discovered via TV
How do you typically watch your favourite TV shows using the commercials and programs
following methods? Overall, 73% of Australians surveyed discovered their favourite
About this survey TV show via TV commercials and TV programs, while 11% of
14% consumers gain information on new TV shows through online
11%
reviews, advertising, recommendations or social networking
10% 10% sites. Younger generations are more influenced by information
9% 9%
8% provided online, with almost 20% of Millennials discovering TV
7%
6% shows online compared to 6% of Boomers and 3% of Matures.
5% 5%
4% The percentage of Australians discovering their favourite TV show
Entertainment 3%
2% 2% online is higher than in the US, France, Germany and the UK.
1% 1%
Show's Video-sharing Online P2P Free online Figure 5. Method of discovering favourite TV show
Media devices Internet site site network video service How did you first discover your favourite TV show?
Trailing millennials
TV commercial 38%
Leading millennials
Internet Xers
By chance while watching other TV programming 35%
Boomers
Matures
Offline recommendation from another person 9%
Advertising Consumers in most other countries surveyed, specifically in the
US and India, view more TV via free online video services than Online review 4%
consumers in Australia, while online peer-to-peer networks
Print review 4%
Newspapers & seem to be more popular in Australia than in all other countries
magazines surveyed, except Spain and India.
Online recommendation from a person 3%
Print advertising 3%
References
On a social networking site 2%
Relevant Deloitte Online advertising 2%
thought leadership
11

14. Foreword
Tablets and smartphones are the commuter’s portable
DVR In 2012, tablets and smartphones
About this survey A total of 12% of Australian consumers we surveyed have
watched TV shows on online devices such as smartphones, tablets
can be thought of as portable
and portable games consoles. 9% of Trailing Millennials surveyed playback devices with commuters
and 5% of Leading Millennials have watched their favourite TV catching up on their favourite TV
show on their smartphone compared with only 1% of Matures
having used this device to watch TV. Australian consumer shows ‘on the go’
behaviour is consistent with most other countries, except India,
where 16% of all respondents have used their smartphone to 60% of Australians are multi-tasking while watching TV
Entertainment watch TV. It may be fair to assume that audiences have always multi-tasked
while watching TV, such as by reading, cooking or eating. What
Only 4% of Australian consumers (based on the survey group) is true now, based on our survey, is that most of the top multi-
Media devices have watched TV on their tablet. Comparing the different age tasking behaviours are occurring on another electronic device.
groups, Xers have watched TV on tablets most (6% of Xers
compared with only 4% overall). Australia is ahead of most other This presents a challenge and an opportunity to programmers
countries surveyed, with only India having a higher percentage of and advertisers. How do they retain the attention of viewers in a
Internet consumers watching their TV shows on tablets. Given the relative world of potentially endless distraction so that programming and
immaturity of the tablet market, we might expect this rate to advertising continues to be compelling? What can be done to
increase rapidly over the coming years to at least the same levels provide a greater ‘meshing’ of programming and advertisements
Advertising as equivalent smartphone usage. across devices to drive multi-tasking around the core content
being broadcast?
In 2012, tablets and smartphones can be thought of as portable
Newspapers & playback devices with commuters catching up on their favourite In some cases, programmers are using ‘traditional’ forms of
magazines TV shows on their way to work or otherwise ‘on the go’. With all content interactivity such as audience voting (which only 4%
of this content being taken out of the living room onto the road of respondents are using) in concert with social or viewer-
(or across the water), content creators and distributors will have community offerings (e.g. tweets, posts and groups), micro-sites
References to think smarter about catering to multiple devices to attract and with exclusive content and integrated game experiences based on
retain market share. fandom.
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15. Foreword
Figure 6. TV watching multi-tasking behaviours The challenge for organisations is to engage consumers further
Which are things you typically do while watching your TV? by creating interactive opportunities, either on the TV or on other
devices, linked to their content. An example of this in Australia is the
About this survey ABC program ‘Q&A’ which enables viewers to engage in the content
Nothing else – just watching TV 40% pre-, during- and post-program via their website, Facebook and
Twitter.
Email – read, write, send or receive 29%
Improved, integrated content offerings that encourage ‘in-program
Go online – surf websites, multi-tasking’ will extend content reach from the TV to ‘small screen’
28%
general Internet use devices and help to defend advertising revenues. A good example of
Entertainment an integrated content offering is Channel 7’s Fango app. App users
Spending time on a social networking site 20% can, for example, ‘check in’ to a show, chat with fellow fans and vote
on action in real-time will polls.
Media devices Reading a print magazine, newspaper or book 18%
Using a social networking site to communicate
15%
‘real-time’ with friends
Internet
Using downloadable applications on my smartphone
7%
or mobile device
Advertising Participate by phone or the Internet with something
4%
that is currently on my television
Newspapers &
magazines
References
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thought leadership
13

16. Foreword
Figure 7: Examples of integrated content offerings
Example: ABC Q&A
The challenge for organisations is to
About this survey further engage consumers by creating
interactive opportunities
The big questions
• How do I leverage the popularity of live TV at home to
other online devices, especially in light of increased online
Entertainment adoption by younger generations?
• How can I best integrate different platforms to improve
and extend the programming and advertising offerings?
Media devices Source: www.abc.net.au • Do I need to upgrade my technological capabilities in
order to execute a multi-platform strategy?
• What are the rights implications of a potential increase of
Internet Example: FANGO online viewership of my content?
• How can I incorporate online interactivity into my current
TV offering?
Advertising
Newspapers &
magazines
References
Source: au.fango.yahoo.com
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17. Media devices
Foreword
About this survey
We love smartphones,
but not necessarily for
their ‘smart’ features
Entertainment
Media devices
Internet
Advertising
Newspapers &
magazines
References
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thought leadership
15

18. Media devices
Foreword
About this survey “My phone can
be used to do 63% use their phone to update But only 23% use
almost anything” social networking pages it to purchase products
Trailing millennials
“I want the ability
to live my life
‘on the go’ 73% access the Internet on And 49% use their phone
Entertainment at all times” their mobile phone for online banking
Leading millennials
Media devices “I like that my
phone can be both
a communication 88%
Internet
and an information 53% use the Internet on text message
provider” their phone on a weekly basis on a weekly basis
Xers
Advertising “Phones have
useful features
but I don’t need 70% use their mobile And 53% like to view photos
phone’s digital camera and video on their phone
Newspapers & to be online 24/7”
magazines Boomers
“I really only
need a phone to
References 97% use their mobile
contact my family phone to talk and 80% But only 10% have ever
and friends” use it to text message downloaded an application
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thought leadership
16

19. Foreword
Our love affair with smartphones continues Figure 8. Product ownership
Based on our surveyed population, Australia has an average Which of the following media or home entertainment equipment
smartphone household penetration of 46%. The highest does your household own?
About this survey penetration of smartphones can be seen in the Millennials
demographic group, with almost 60% owning smartphones
Laptop/netbook computer 73%
compared to only 35% of Boomers and 18% of Matures,
respectively. Flat Panel TV (LCD or plasma) 71%
Digital camera or camcorder 71%
Smartphone penetration in Australia is the second-highest among
international participants in this survey, outstripping the US, France, Desktop computer 70%
Entertainment Germany, Japan, Spain and India.
Radio (traditional AM/FM radio) 60%
Mobile/cellular phone (basic phone) 59%
Media devices Standalone DVD player 57%
Smartphone 46%
Videogame/console system 43%
Internet
Portable music/video player 39%
Non-flat panel TV 29%
Advertising Digital Video Recorder 25%
Standalone Blu-ray disc player 15%
Newspapers & Blu-ray disc player in gaming console 14%
magazines
Tablet 13%
Internet-enabled TV 10%
References
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17

20. Foreword
Although smartphones provide a significant amount of Figure 9. Smartphone uses
functionality, their usage in Australia is still dominated by voice and Of the features on your mobile/cellular phone that you do use,
text messaging. please list how frequently you use them? (‘Weekly +’)
About this survey
We have assumed that this is partially based on historic mobile
86% 82%
phone usage behaviours (i.e. those activities and uses of a phone
44% 42% 41%
with which consumers are most familiar) and the availability of locally
relevant apps. The survey data also suggests this limited usage
may be driven by the associated costs for data usage, with 18% Talking Text Internet Viewing Digital
of consumers indicating that they do not use smartphone Internet on the messaging access photos camera
Entertainment access because it is too expensive. That said, the perception that
phone or video (still
pictures)
Internet access on a smartphone is ‘too expensive’ is markedly lower
in Australia than observed in the US, Spain, Germany and India.
Media devices Although similar levels of Australians and U.S. respondents access
Australian consumers are starting to use the wider smartphone the Internet on their smartphone (50%), Australian consumers
functionality available, for example, nearly 60% of Millennials use less email and online search than U.S. consumers on their
also use their smartphone at least weekly as a device for viewing smartphone. Acquiring new apps conversely seems to be more
Internet and taking photos. Given the steady improvement in smartphone popular in Australia than in France, Germany, Japan and Spain.
camera quality and increased storage capacity, it is likely that
smartphones will become more popular with consumers and may Tablet sales skyrocket in Australia
Advertising even become the preferred digital camera device. More than 1.4 million tablets were sold in Australia during 2011,
which represents a total estimated revenue of $1billion1,2. Of
Australian households surveyed, 13% own at least one tablet and
Newspapers & 31% of tablet owners think their tablet is the most valuable product
relative to other media devices.
magazines
References
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18

21. Foreword
Tablet adoption is nearly equally distributed across all age groups Accordingly, a very high proportion of smartphone and tablet users
in the survey. Xers have the highest percentage of ownership have used these devices as alternatives to their laptop, even when
About this survey (16% of respondents) followed by Leading Millennials and Trailing at home. For example, 42% of tablet owners have used their tablet
Millennials with 13% and 14% of respondents, respectively. at home instead of their laptop, while more than 50% of Leading
Millennials and 24% of Matures use their tablet at home as a
Australia, together with the US, has the second-highest tablet laptop substitute.
penetration among participating countries, after India with 15%.
In our view, the main reasons for the success of the tablet across all Figure 10. Smartphone and tablet substitution for laptops
demographics and globally are the size of the screen, the quality of In the past six months, have you ever used your smartphone/
Entertainment the user interface and the apps, which provide an enormous number tablet as a replacement for your laptop’s functionality?
of possibilities to consumers.
51%
Media devices In our Deloitte Technology, Media and Telecommunications 42% 46%
Predictions report, we forecast that in 2012, 5% of all tablets will 30%
be sold to individuals or households that already own a tablet,
which equates to five million tablets worth between $1.5 and $2
Internet billion in revenue.3 Although this represents a small percentage of Used my Used my Used my Used my
total tablet sales, given that the tablet market is only three years old tablet as a tablet as a smartphone smartphone
it likely marks the most rapid ‘multi-anything’ market penetration in replacement replacement as a as a
for my for my replacement replacement
Advertising history¹. laptop, laptop while for my for my
while at away from laptop, laptop
Smartphones and tablets as substitutes home home while at while away
home from home
Newspapers & While the laptop is the most commonly owned product or
magazines device across all age groups in Australia, it remains to be seen if
its importance will change due to the increasing penetration of
smartphones and tablets. In 2012, we are seeing a wave of new,
42% of tablet owners have used
References feature-packed smartphone and tablet devices enter the market. their tablet at home instead of
The rate of improvement in these devices is such that users
are increasingly seeing them as legitimate substitutes for more
their laptop
Relevant Deloitte longstanding entertainment and productivity devices, such as
thought leadership laptops.
19

22. Foreword
Figure 11. Devices used to make purchases A total of 60% of survey respondents own a traditional AM/FM
Which of the following have you used to make a radio, which is a higher percentage than respondents owning a
purchase in the last year? portable music/video player (39% of respondents) such as an iPod
About this survey or an MP3 player. Over 70% of Boomers and Matures have a radio
and the percentage of radio owners is higher amongst Leading
Desktop computer 49% Millennials (56% of respondents) than Trailing Millennials (42% of
respondents) and Xers (50% of respondents).
Laptop/netbook computer 44%
The percentage of Australian consumers owning a radio is higher
Home phone 21%
than in most countries surveyed other than the UK, US and Spain.
Entertainment
Smartphone 16%
Unbounded shifting of content and online storage will
Television 8% become more important
Media devices Videogame/console system 5%
Consumer responses indicate that the integration and convergence
of media on multiple devices will continue to gain momentum in
Tablet 5%
the future. For example, 63% of all Australian consumers would
like to view online content on their TV – good news for Internet-
Internet None of the above 15% enabled TV manufacturers and retailers.
Interestingly, 39% of the survey respondents categorised the
Advertising With the success that the tablet has achieved in the corporate ability to move music, TV shows, movies etc. to any platform or
sector and assisted by the ongoing improvement in productivity device they own as extremely desirable. This was observed most
applications for tablets – e.g. exemplified by the much anticipated significantly among Trailing and Leading Millennials, with over 56%
Newspapers & launch of the Microsoft Office suite for iPad – we believe these levels of respondents finding this technical capability desirable.
magazines and patterns of usage will likely continue and even increase.
Besides a shift to small screen viewing (e.g. TV movie content
Radio remains prominent in Australia on tablets), we think that the unbounded shifting of content
References Although music and radio shows can be consumed on multiple between devices and online storage services will become important
devices, traditional AM/FM radio remains important in Australia. capabilities for TMT businesses in the near future.
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23. Foreword
Consistent branding and customer experience across
The big questions
multiple channels will be critical for Australian companies • What is my smartphone and tablet app strategy and
About this survey With the emergence of new devices, additional forms of interaction how can I create a consistent branding experience across
have been created, such as apps for smartphones and tablets, multiple channels?
providing different layouts and content based on form-factor and • How can I increase my revenues or better structure costs
operating systems. This creates additional challenges in creating a through the integration of multiple channels?
consistent brand and customer experience across all channels and
• How can I best incorporate tablets and smartphones into
media devices.
my daily business to increase productivity?
Entertainment While the capabilities required to achieve truly consistent and • What are the security implications for the business use of
engaging experiences for consumers are still developing, companies mobile devices?
have an unprecedented opportunity to communicate with • How do I create the technological standards and
Media devices consumers at anytime, anywhere. capabilities to enable multi-device content access?
Internet
Advertising
Newspapers &
magazines
References
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thought leadership
21

24. Internet
Foreword
About this survey
The Internet is
entertaining us…
everywhere
Entertainment
Media devices
Internet
Advertising
Newspapers &
magazines
References
Relevant Deloitte
thought leadership
22

25. Internet
Foreword
“I want to be able
About this survey to share what’s
Only 28% email friends But 53% socialise on
going on in my
life at all times” and family almost every day networking sites almost every day
Trailing millennials
“I want to save 52%
Entertainment time by doing 18% amount of time spent have used a laptop to make
things online” online via a smartphone an online purchase
Leading millennials
Media devices “I like being
able to find any 61%
information
53% use social networks to use search engines
that I need” communicate with friends almost every day
Internet
Xers
“I can use the
Advertising Internet to
55% learned of a new 21% have used a
discover products I
product for the first time smartphone to purchase
never would have
known about” online something in the past year
Newspapers &
Boomers
magazines
“The Internet
is primarily just
References a tool to find
facts and useful
53% are using search But only 38% maintain a
information” engines almost every day social network profile
Relevant Deloitte Matures
thought leadership
23

26. Foreword
The Internet is second only to TV as the most popular form Millennials and Xers prefer to spend time online via portable devices
of entertainment media (e.g. smartphones, tablets, laptops) while stationary devices,
Across all age groups in Australia, using the Internet for social or especially the desktop computer, are the preferred devices within the
About this survey personal interests (47% of all respondents) lags only watching TV age groups of the Boomers and Matures. Overall, 7% of time spent
content on any device (63% of all respondents) as respondents’ online on stationary devices is spent on TV and games consoles.
preferred type of media entertainment. Trailing Millennials are the While the percentage of respondents spending their time online via
exception with 61% of respondents within this demographic group a TV is similar across age groups, games consoles are, as might be
identifying the Internet as their primary source of entertainment. expected, more popular with the Trailing and Leading Millennials.
Internet use is going mobile, especially with younger and Comparing the daily Internet activities of Australian consumers to
Entertainment middle-aged consumers global data, Australian consumers surveyed read less news, watch
Using search engines is the most common daily Internet activity less TV and seek less personal interest information online than
across all age groups, followed by reading local news and emailing. consumers in most other countries. Surprisingly, although ‘Australia’
Media devices and ‘sport’ go hand in hand, Australian consumers are reading/
watching less sporting content online than in any other surveyed
Figure 12 online activities country.
How often would you say you are doing the following online
Internet activities? (% everyday/almost everyday (5–7 days/week))
Activities Australia US France Germany India Japan Spain
Advertising Using search engines 59% 63% 68% 58% 72% 65% 79%
Reading about local news, weather or current events 39% 46% 44% 39% 51% 29% 55%
Reading national/world news, weather or current events 37% 43% 46% 39% 48% 42% 56%
Newspapers & E-mailing with friends or family 38% 40% 45% 31% 60% 32% 53%
Socialising (via social networking, chat rooms, message boards) 28% 32% 10% 15% 50% 7% 37%
magazines Watching TV programs 21% 28% 20% 25% 46% 25% 25%
Instant messaging with friends or family 24% 24% 32% 16% 58% 4% 46%
Seeking personal interest information 18% 22% 28% 19% 39% 24% 40%
References Watching/listening to content created by others 15% 21% 15% 14% 40% 18% 28%
Reading/watching sports content 13% 19% 14% 15% 39% 16% 28%
Seeking product reviews, conducting shopping research 9% 13% 14% 10% 28% 9% 16%
Relevant Deloitte Online gaming 6% 9% 8% 11% 20% 8% 7%
thought leadership
24

27. Foreword
Figure 13 – Share of online time Online reviews and recommendations are highly influential
Thinking about all the time you spend online with each of the factors in buying behaviour
following types of devices, please enter the percentage of time you In total, 56% of Australian respondents across all age groups had
About this survey spend online with each. learned of a new product for the first time online and 43% of
respondents purchased a product based on an online review or
52% recommendation. Although seeking product information online
3% 48%
3% is equally popular across all age groups, Millennials and Xers are
4%
10%
more influenced by online reviews and recommendations than
older generations. The global data shows this to be consistent with
other participating countries (with the exception of Japan), with
Entertainment 45% consumers overseas even more influenced by online reviews.
35%
Survey data indicates that Trailing Millennials are three to five times
Media devices Stationary Portable
more likely than Boomers and Matures to engage in Internet-based
socialising activities. Combined with the influence of information
Desktop computer online, this suggests campaigns that seed or promote viral
Television marketing via online social channels are likely to have a greater
Internet Games console/handheld response rate than traditional above-the-line campaigns for this
Laptop/netbook particular demographic.
Mobile device/phone
Advertising Tablet The online retail experience is going mobile, evidenced by 41% of
shoppers having checked competitors’ prices on their smartphones
while in a retail store4. Consumers are more informed than ever
Newspapers & and traditional retailers will need to rethink how they can respond
magazines to these behaviours to support and augment the in-store retail
experience.
References
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thought leadership
25

28. Foreword
Self-publication is less popular in Australia provide more personal information online in exchange for targeted
than in other countries advertising. However, 18% of Australians surveyed are active in
Although Australian consumers are highly influenced by online personally contributing to another person’s blog and 11% maintain
About this survey reviews, only 15% of respondents have experience in writing their own blog.
product reviews for review or e-commerce sites.
The survey results also show that self-publication is a behaviour
This is low in comparison to international behaviours observed observed across all age groups, with 15% of Boomers and 12%
in this survey. On average 25% of consumers surveyed in other of Matures currently contributing to a blog; meanwhile 5% of
countries write product reviews, with as many as 28% in Spain (the Boomers and 7% of Matures have their own blog.
second highest) and 40% in India (the highest).
Entertainment Self-publication in terms of contributing to and maintaining blogs is
Survey respondents indicate concern with sharing personal even more popular in other countries such as the US, India, Japan
information online, as only 25% of all respondents are willing to and Spain.
Media devices
Figure 14 – User-generated content behaviours
Please indicate your experience with each of the following
Internet Total Trailing Leading
illennials millennials
Xers Boomers Matures
Maintaining my social networking site (Facebook etc) 60% 76% 71% 64% 50% 38%
Communicating in real time with others via my social networking site 50% 68% 60% 53% 40% 29%
Advertising Posting comments to online communities, message boards or online forums 32% 39% 39% 37% 25% 23%
Adding comments or postings to news articles or special interest stories I read on the Internet 27% 33% 32% 28% 22% 17%
Newspapers & Uploading my own photos to a photo sharing site. 21% 31% 31% 21% 13% 11%
magazines Contributing to a blog (not my own) by adding comments or postings 18% 28% 21% 16% 15% 12%
Writing product reviews on review sites, e-commerce sites, blogs etc. 15% 15% 18% 18% 11% 7%
Communicating with others via micro-blogging (Twitter, Yammer etc.) 14% 28% 19% 16% 8% 3%
References Maintaining my own blog (Web log) for others to read about myself and my opinions 11% 22% 17% 11% 5% 4%
Uploading my own videos to a video sharing site 11% 23% 19% 11% 4% 3%
Uploading my own game content (e.g.levels, films, music, other) to a console or a 11% 22% 16% 11% 5% 3%
Relevant Deloitte PC games environment
thought leadership
26

29. Foreword
Australian consumers are conditioned to use the Internet within a
There is demand for faster Internet speeds and greater capped bandwidth model, distinct to Internet products currently
network efficiency offered by Internet Service Providers (ISPs) in other countries (e.g.
About this survey Currently, 21% of respondents watch TV content on the Internet in Europe, Asia and the Americas). With the National Broadband
daily. Although the percentage of Young Millennials watching TV Network (NBN) and the availability of 4G rolling out over the
online is the highest, 14% of Boomers and 17% of Matures are coming years, Australian ISPs product offerings and consumers’
also watching TV programs online. usage are likely to change in the future.
In comparison, the percentage of Australians watching TV online
is the lowest of participating countries other than France. One The big questions
Entertainment reason for low Australian adoption is existing Internet speed. • How can we more effectively measure the outcomes
Over half of survey respondents would view more videos from the of online campaigns, especially those delivered in a
Internet if their downloads finished more quickly and they would social media context?
Media devices be willing to pay extra to have the fastest available connection.
• How can I integrate online into my business to provide
21% of respondents watch TV content customers with a richer shopping experience?
• What implications does a more informed shopper have
Internet on the Internet daily on my pricing strategies?
• Have we fully considered how best to take advantage
of the NBN and availability of 4G for our organisation?
Advertising
Newspapers &
magazines
References
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thought leadership
27

30. Advertising
Foreword
About this survey
If the TV said so,
it must be true!
Entertainment
Media devices
Internet
Advertising
Newspapers &
magazines
References
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thought leadership
28

31. Advertising
Foreword
“Unobtrusive targeted 63% still believe TV is 67% still enjoy reading printed
About this survey advertising gets my among the most influential magazines despite being able to
attention” advertising mediums find the same info online
Trailing millennials
“Printed ads are more Only 32% 62% pay more attention
appealing than cheap are influenced by to print ads in magazines
ads on social networks than online advertising
Entertainment online versions”
Leading millennials
Media devices “I like advertising that
helps me to learn new
things about myself 73% are highly 75% enjoy reading
and my family” influenced by TV advertising printed magazines
Internet Xers
“I don’t mind online
Advertising advertising from search 48% are influenced by
engine results that help
69% are highly influenced
by newspaper advertising interactive online advertising
me find information”
Newspapers & Boomers
magazines
“I prefer printed
advertising but can be
References influenced by search
81% are highly influenced 58% find unsponsored search
by newspaper advertising engine advertising influential
engine results”
Matures
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29

32. Foreword
TV advertising remains the most influential on consumer Despite the influence of TV advertising, consumer behaviour such
buying decisions as ad-skipping and multi-tasking is emerging as a potential catalyst
As illustrated by Figure 15, TV advertising is still considered the top to reduce the influence of TV advertising over time.
About this survey influencer amongst all age groups followed by newspapers and
online advertising. Figure 15. Most influential advertising channels across all
platforms
While this is especially true for Xers and Boomers, with more When you encounter advertising in the following media, which
than 72% of each group stating that TV ads have the greatest three have the greatest influence on your buying decision?
influence on their buying decisions, it is also true for the youngest of
respondents, with 63% of Trailing Millennials responding in the
Entertainment same way. Television 68%
The affinity of Australian consumers with TV advertising is broadly Newspapers 53%
Media devices consistent with global trends, with the exception of Japan where
Online 47%
online advertising is the most influential on consumer buying
decisions.This reinforces our view that TV remains a powerful force Magazines 45%
in entertainment consumption and a powerful ingredient in most
Internet advertising budgets. Radio 29%
Billboard or outdoor 17%
Advertising
Newspapers &
magazines
References
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30

33. Foreword
Figure 16. Influence of overall advertising Ad-skipping is one of the main reasons that Australians use DVRs
When you encounter advertising in the following media, which and 60% of all surveyed consumers admit to multi-tasking while
three have the greatest influence on your buying decision? watching TV. While Trailing Millennials are spending more time
About this survey on social networking sites, text messaging with friends or doing
homework, Leading Millennials and Xers prefer reading/sending
Germany
Australia
France
emails and surfing online while watching TV.
Japan
Spain
India
US
TV 68% 81% 66% 68% 64% 72% 69% In global comparison, multi-tasking while watching TV is even more
Newspapers 53% 38% 38% 50% 63% 47% 46% common in the US, Japan and the UK, with surfing online identified
as the most popular activity.
Entertainment Online 47% 52% 40% 50% 53% 88% 49%
Magazines 45% 43% 50% 52% 32% 41% 44% Figure 17. Reasons why consumers use DVRs
Radio 29% 25% 26% 25% 8% 6% 30% Please rate each item below to identify the best uses for your
Media devices Billboards or outdoor 17% 15% 39% 21% 15% 9% 23%
DVR? Summary of ‘Top/Very best use’
advertising
In-theatre advertising 12% 12% 17% 12% 9% 6% 13% 54%
DVDs/Blu-ray Discs 9% 12% 6% 5% 7% 5% 4%
Internet 51% 51%
Mobile/cellular/ 9% 9% 7% 9% 34% 19% 11%
smartphone
Videogames 6% 7% 8% 4% 7% 3% 6% The freedom to The ability to The ability to
watch my shows record all my fast-forward
Advertising Downloadable app 3% 3% 2% 2% 6% 2% 2% on my own schedule, favourite shows, through
on mobile device rather than at the ensuring that I scheduled
Tablet 2% 3% 1% 1% 4% 2% 2% scheduled time never miss an time commercials
episode
Newspapers &
magazines
References
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31

34. Foreword
We think that there are two main opportunities here. First,
advertisers could rethink ad design to make advertising messages 60% of all surveyed consumers
About this survey
more accessible during fast forwarding to retain effectiveness.
Second, advertisers could seek to incorporate and synchronise
admit to multi-tasking while
‘small screen’ of smartphones, tablets and laptops into the ‘big watching TV
screen’ viewing experience of the TV. The challenge is to shape the
multi-tasking behaviour into a multi-tasking experience built around
the product being advertised, increasing consumer engagement
with the brand or product and maintaining advertising effectiveness Figure 18. Multi-tasking while watching TV
in an environment of attention saturation. Which are things you typically do while watching your TV?
Entertainment
Total Trailing Leading Xers Boomers Matures
millennials millennials
Nothing else – just watching TV 40% 35% 38% 37% 44% 52%
Media devices Email – read, write, send or receive 29% 27% 33% 37% 25% 15%
Go online – surf Websites, general Internet use 28% 30% 36% 35% 21% 9%
Spending time on a social networking site 20% 34% 28% 23% 12% 4%
Read a print magazine 18% 11% 15% 18% 19% 26%
Internet Read a print newspaper 18% 9% 11% 16% 25% 28%
Read books 18% 16% 14% 18% 19% 21%
IM or text messaging with friends 17% 32% 24% 19% 7% 5%
Advertising Talk with others on a land line phone 17% 13% 9% 18% 23% 18%
Talk with others on a mobile/cellular/smartphone 16% 21% 19% 18% 11% 8%
Using a social networking site to communicate with friends 15% 25% 20% 18% 7% 3%
Newspapers & Do homework/work for your job 14% 32% 20% 15% 6% 3%
magazines Purchasing products online 12% 8% 20% 18% 7% 3%
Play videogames (any platform) 9% 15% 13% 10% 6% 1%
Watch YouTube or other video streaming sites 8% 13% 12% 10% 4% 2%
References Listen to music 8% 15% 14% 7% 5% 3%
Using downloadable applications on my mobile device 7% 11% 12% 8% 3% 1%
Participate by phone or the Internet with something that is currently on 4% 5% 6% 6% 2% 3%
Relevant Deloitte my television
thought leadership Micro-blogging 3% 5% 4% 3% 1% 0%
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