CONSUMERS DEVOTE 20% OF THEIR MEDIA ACTIVITY TO THE INTERNET
Pan-European research shows internet usage increasing and driving both online and offline sales
Key Findings
§ Internet consumption constitutes 20% of total media consumption in
Europe – above magazines and newspapers
§ 42% of European internet users are online 7 days a week
§ Online research inspires additional offline sales
§ ‘Choice and convenience’ of internet cited as key reasons for increased
use
London, 9th November 2004 – Research commissioned by the European Interactive Advertising Association (EIAA), the pan-European trade organisation for sellers of interactive media, reveals a rise in the amount of time people spend online with the internet now accounting for 20% of Europeans’ media consumption.
The study places the internet above both magazines (8%) and newspapers (11%) in terms of media consumption and not far behind radio (30%). TV continues to represent the largest share of people’s media time at 33% but over a third (35%) of those online claimed to watch less TV as a result of using the internet.
Among the increasing number European internet consumers, 42% are online every single day and 1 in 10 claim to spend at least 25 hours a week surfing the web.
The EIAA Pan-European Media Consumption Study, undertaken by leading global research agency Millward Brown, was designed to quantify how people allocate their time across media in Europe and to gauge consumer perceptions of the internet and the role it plays within their media selection.
Positive ‘image’ of the internet:
Over half of users felt that the internet was best for active brains and 61% viewed it as a medium to keep you ahead of the game. Half of users cited the internet as their favourite source of information with the huge majority rating it as the best place to get what you want when you want it (70%) and the most time-efficient medium (80%). One in three consumers even went as far as to say that they would be lost without the internet in their lives.
Whilst 83% felt that TV has too much advertising, less than half felt the same about the Internet. A third stated that online advertising was relevant to them and more than half (53%) believed that internet advertising was from forward-thinking brands.
Offline to online activity transfer:
Increasing numbers of consumers are using the internet as opposed to traditional methods to perform daily tasks such as booking tickets (45%), reading newspapers (37%), chatting to friends (35%) and shopping (31%). In addition, 1 in 4 now listen to music online. Primary reasons for this switch were the convenience, speed and ease of the internet.
Whilst 88% use email regularly, 61% visit news sites and almost half look to organise their finances online. Travel (47%) and music sites (39%) again prove popular with internet users. This latter trend is evident again when looking at browsing and buying habits. Travel tickets and holidays are most frequently researched online with high purchase conversion rates at 64% and 45% respectively. Conversion rates for theatre/cinema tickets (71%), clothes (69%), music (66%) and books (65%) remain high.
Online research drives offline sales:
The research also demonstrates that offline sales are boosted by the internet. 2 in 5 people admit that they research travel tickets and holidays online, then buy through traditional means. And a third of consumers responded that they looked at books and theatre/cinema tickets on the web but subsequently purchased elsewhere.
It was also found that many forms of media were consumed simultaneously. However, in comparison the internet largely demanded consumers’ sole focus.
Nigel Morris, President of Carat Interactive Worldwide, comments, “This research demonstrates the growing impact that the internet is having on daily lives. It commands consumer attention, and with overall consumption and frequency of use increasing year-on-year, it must now be viewed as an essential part of the marketing mix.”
“People are spending more and more time online and are finding it increasingly relevant to their lives. It impacts what they buy offline, it influences their social life and hobbies, connects them with friends and family; in short it’s becoming essential." said Michael Kleindl, Chairman of the EIAA. “The internet is now a rival to other media and with always on and mobile technologies emerging, we can only expect this trend to continue.”
The study involved 7,000 random telephone interviews with 1,000 respondents in the UK, Germany, France, Spain, Italy and the Nordics and 500 respondents in Belgium and the Netherlands. Interviews were conducted between September and October 2004.
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About the EIAA
The European Interactive Advertising Association ( www.eiaa.net) is a unique pan- European trade organisation for sellers of interactive media. The primary objectives of the EIAA are to champion and to improve the understanding of the value of online advertising as a medium, to grow the European interactive advertising market by proving its effectiveness, thus increasing its share of total advertising investment. Its members are currently AdLINK Internet Media AG, AOL Europe, LYCOS Europe, MSN International, Tiscali, T-Online International, Yahoo! Europe. It is chaired by Michael Kleindl, Managing Partner of Valkiria Network.
About Millward Brown
Millward Brown ( www.millwardbrown.com) is one of the global top 10 market research agencies with 60 offices in 36 countries and maintains a working relationship with 70% of the world's top 100 brands. Millward Brown specialise in helping companies maximise their brand equity, brand performance and brand communication.
For further information, please contact:
Alison Fennah
Executive Director
EIAA
Tel: 01536 712710
Nick Wilkins/Charlotte Holder
Red Consultancy
Tel: 020 7025 6500
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