News media is read by 90% of Australians intending to buy the most sought after technology products. With advertisers mindful of planning Christmas marketing activities, LANCE CLATWORTHY takes a look at what tech products readers want, the stores they shop at and how they share information on such a widely discussed category. 12m intended purchases…
12m intended purchases of the Top 10 tech products
News media readers may not have settled on their Christmas wish list yet, but emma data reveals the products they’d love to own in the next 12 months.
Compared to a year ago, Mobile phones remain top of the list with 1.7m intending to buy one. Of these, only 82,000 are new users with the overwhelming majority looking to replace their mobile phone or to own more than one. Of course, it’s market saturation that is behind this, with 94 per cent of readers already owning a mobile phone.
Go-Pro is a different proposition; remaining at number two, 1.5m readers intend to buy one in the next year with 1.4m of them being new owners.
A notable omission from the Top 10 list is Tablets which have dropped to 11th place. Intended purchases are down 20 per cent compared to a year ago as people turn increasingly to larger smartphones for online browsing.
The biggest mover was Pay TV/Streaming services*5 which moved up 4 places in the rankings on intended purchases of 1.1m, representing a 9 per cent gain on a year ago*3.
Bubbling under the Top 10 are Portable gaming devices*4 with intended purchases growing +26 per cent against the prior year*3.
Opportunities are similar across states
All states provide opportunities for advertisers to reach tech buyers, but Victorian readers are even more inclined to buy these products. Victoria represents 25 per cent of news media readers, but 29 per cent of the 1.7m intended Mobile phone purchases – compared to other readers, Victorian readers are more likely to have purchase intentions. And the same can be said of Go-Pros, DVR/TV recorders and a number of other products in our Top 10.
Smart watch forecast to have biggest growth in users
Rather than looking at total intended purchases of products, we can look at the implied growth in users. May be not surprisingly, the products that have less current ownership are the products where we find the biggest “intended” user growth. Smart watches currently have 1.5m users. With 962k new users intending to purchase in the next 12 months, this represents a 66 per cent growth on current users. Go-Pro (+55%), Wireless speakers (+24%) and Fitness monitors (+21%) will also experience high growth on their current user base*2.
At the other end of the scale, nearly all intended Mobile phone and Laptop purchases are replacements (or additions) rather than representing a growth in users.
More likely to be shopping at major electrical chains
Where will they be going to purchase their tech products? 24% of news media readers shop at a major electrical chain at least every 3 months. Compared to non-readers, that makes them 9 per cent more likely to be visiting this type of store. This rises to 26 per cent more likely for those who pay for access to digital news media. Given that paying readers are likely to be more engaged readers, digital news media should have extra appeal for advertisers in this category, whether product owners or retailers*7.
2.7m readers shop at JB Hi-Fi
The 24 per cent of readers (above) translates to 3.9m readers shopping at a major electrical retailer every 3 months or more. And, on its customer base, it’s JB Hi-Fi that sits head and shoulders above the rest with 2.7m readers shopping there. News media would provide mass coverage for JB Hi-Fi as an advertiser, but (as advertisers) two other retailers would benefit from a skew on reach – Readers are 26 per cent more likely to shop at Harvey Norman and 28 per cent more likely to shop at JB Hi-Fi’s recently acquired Good Guys.
Word of mouth abounds – Informed and informing
Based on their experiences, 27 per cent of news media readers encourage others to buy tech products or services. This makes the category the most widely discussed category other than Food and dining where 29 per cent of readers could be leveraged as advocates for advertisers. Indeed, readers demonstrate a high tendency to make recommendations as well as a high tendency to obtain information – keeping up-to-date with the latest technology products and services*6.
Advertisers targeting tech buyers with news media
In terms of purchase intentions, the Top 10 tech products have remained largely similar to a year ago, although it’s notable that Tablet has dropped out. Mobile phones and Go-Pro top the list but Smart watches look set to boast the biggest percentage growth in users. For advertisers, news media offers 90% reach to buyers in the category, with readers showing an increased likelihood to be shopping in major electrical retailers when compared to non-readers. Demonstrating strength across all news media channels and states, digital news media and Victorian titles can provide some further value for advertisers in a market where readers look to be informed whilst also actively informing others – often acting as advocates.
Source: emma™ 12 months to May 2017. Readership based on last four weeks. Survey conducted by Ipsos MediaCT, people 14+ ; Nielsen DRM May 2017, People 14+ only. Analysis assumes a maximum of one intended purchase/sale per person for any given product type. Unless otherwise stated, all “More likely” is indexed readers v non-readers of news media = 100 ix.
*1 Intend to purchase in the next 12 months
*2 Intended user growth = Intended purchase next 12 months (not currently owned) as a percentage of currently own
*3 Compared to a year ago (May16)
*4 Sony+Nintendo portable gaming devices v May16
*5 TiVo+Apple+MyStar+Foxtel TV set top boxes v May16
*6 All statements relate to technology products and services
*7 Major chains = JB HiFi (2.7m), Harvey Norman (1.2m), Good Guys (730k), Dick Smith (500k), Betta Electrical (72k), Bing Lee (23k), Harris Technology (11k)