Consumers prefer content services on mobile, PC

Consumers are adopting digital content services, including social networking and videos, on mobile phone and PCs at an accelerated pace.

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 them if it results in targeted incentives that match their lifestyle.

This, it says, presents companies with significant advertising revenue opportunities among today8217;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 year8217;s study showed the decline of TV as the primary media device. This year8217;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 per cent and Internet data plans for mobile devices at over 40 per cent 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.

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8220;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,8221; said Dick Anderson, General Manager, IBM Media and Entertainment.

8220;Knowing distinct consumer segment preferences and delivering consistent content and messaging are essential for long-term success.8221;

Consumers8217; desire, and are comfortable with, wired and wireless access to content. Seventy-six per cent of consumers surveyed have already watched video on their PC, up 27 per cent from last year. Thirty-two per cent indicated they have viewed video on a portable device or mobile phone, up 45 per cent from last Year. Interest in mobile video content has more than doubled since last year to 55 per cent.

For both PC and mobile video, over 70 per cent 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 per cent to over 80 per cent by country, with Japan having the highest preference for ad-supported on both devices.

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Consumers are moving beyond the trial stage of watching online video. Of those who have watched videos on their PC, 45 per cent are doing so regularly 8212; at least a few times per month.

As adoption of online video continues, cannibalisation of overall television consumption is becoming more apparent.

Over 50 per cent of respondents who have watched online video claim they watch slightly less 8212; 15 per cent 8212; to significantly less 8212; 36 per cent 8212; television as a result, implying place-shifting alternatives may be changing consumer 8220;couch potato8221; 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.

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8220;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 8212; no fee, with very limited advertising shown,8221; said Saul Berman, Global Lead Partner, Strategy and Change Consulting, IBM Global Business Services and the author of many recent IBM studies.

8220;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.8221; Close to 60 per cent of total respondents were willing to provide information about themselves 8212; such as age, gender, and lifestyle or communications preferences 8212; 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.