Consumers prefer digital content services on mobile,PC: survey

New York, Nov 18 (PTI) Consumers are adopting digital content services, including social networking and videos, on mobile phone and personal computers at an accelerated pace and it is impacting consumption habits, a new survey shows.

The second global online survey, conducted by IBM,
found that people are willing to get personal with advertisers
by sharing information about themselves if it results in
targeted incentives that match their lifestyle.

This, it says, presents companies with significant
advertising revenue opportunities among today's informed and
empowered consumers.

The survey was conducted with 2,800 people in six
nations - India, Australia, Germany, Japan, the UK and the US.

Last year's study showed the decline of TV as the
primary media device. This year's study found large scale
adoption and usage of digital content services accessed via
the PC and mobile phone, with ad-supported models (versus
consumer-paid).

Adoption for most categories of digital content
services doubled from last year, with services such as social
networking now at 60 percent and Internet data plans for
mobile devices at over 40 percent for respondents globally.

While digital content services adoption is widespread,
interactivity through features such as user ratings tools and
video uploads is primarily concentrated among the more digital
savvy consumers.

"With the rise of Web 2.0, millions of people can
instantly create, publish and consume content. In order to
survive, advertisers must understand how to reach their target
audiences across multiple devices," said Dick Anderson,
General Manager, IBM Media and Entertainment.

"Knowing distinct consumer segment preferences and
delivering consistent content and messaging are essential for
long-term success."

Consumers' desire, and are comfortable with, wired and
wireless access to content. Seventy-six percent of consumers
surveyed have already watched video on their PC, up 27 percent
from last year. Thirty-two percent indicated they have viewed
video on a portable device or mobile phone, up 45 percent from
last Year. Interest in mobile video content has more than
doubled since last year to 55 percent.

For both PC and mobile video, over 70 percent of
respondents prefer advertising-supported models as opposed to
consumer-paid models, representing a huge growth opportunity
for the industry. Preference for ad-supported models ranged
from 62 percent to over 80 percent by country, with Japan
having the highest preference for ad-supported on both
devices.

Consumers are moving beyond the trial stage of
watching online video. Of those who have watched videos on
their PC, 45 percent are doing so regularly -- at least a few
times per month.

As adoption of online video continues, cannibalization
of overall television consumption is becoming more apparent.
Over 50 percent of respondents who have watched online video
claim they watch slightly less - 15 percent - to significantly
less - 36 percent - television as a result, implying
place-shifting alternatives may be changing consumer
"couch potato" behaviour.

When asked how they prefer to view ads associated with
online videos, the majority of respondents said they prefer to
see it before or after a video. Respondents from all six
countries polled protested traditional television models such
as interruption advertisements during the video or the use of
product placements within programs.

"Consumers have grown accustomed to accessing new
forms of content through alternative sources, such as online
video and video-on-demand, at no cost to them -- no fee, with
very limited advertising shown," said Saul Berman, Global Lead
Partner, Strategy and Change Consulting, IBM Global Business
Services and the author of many recent IBM studies.

"The industry must find appealing ways to monetise new
content sources or risk a similar fate as that of the music
industry where value shifted away from core players."

Close to 60 percent of total respondents were willing
to provide information about themselves -- such as age,
gender, lifestyle or communications preferences -- in exchange
for something of value.

Younger respondents had fewer concerns about revealing
personal preferences, and a sizeable portion of participants
over the age of 45 were also willing to share information
about themselves. However, all respondents indicated the need
for perceived value and incentives as a trade-off to provide
personal information. PTI