Category Archives: Market Segmentation

Digital Feathernesters – it’s not only generational (TUPdate)

Millennials have been getting a bad rap lately, with pundits suggesting that they’re squandering their financial futures on avocado toast or cold brew. While our TUP study doesn’t track café treats, we’re finding robust spending on technology devices and services by millennials. Among millennials, homeowners outspend their home-renting counterparts by far.

Based on our most recent wave of TUP – Technology User Profile 2017 US – millennial homeowners are far more likely than millennial renters to be using an Apple Watch or Google Wear smartwatch. Furthermore, they’re well above all other groups in using tech devices they don’t own – such as an employer-provided mobile phone, e-book reader, or tablet. They stand out for having their nest feathered by entertainment devices such as home projectors and OTT TV devices such as an Amazon Fire TV or Google TV. Also, these digital feathernesters are more likely than average to be protecting their homes with smart locks and video doorbells.

Differences in tech usage by homeownership status is not only about age, since Generation X homeowners are also well above GenX renters. Interestingly, the mix of devices used by GenX homeowners is like those used by Millennial homeowners, although at lower levels.

Millennial homeowners are a substantial market segment, making up nearly one in four connected adults. This group is only slightly larger than the 20% which are GenX homeowners and the 22% which are boomer homeowners. Renters are the smallest share of connected adults in every age group. Among millennials, a higher share are renters than the rate in other age groups, although homeowners still outnumber renters by nearly two to one.

Looking ahead

Millennial feathernesters have impressive plans, with their tech purchase intentions higher than any other age or homeownership group. Their plans which are strongly higher than the plans of other age and homeownership groups span nearly all types of devices: notebooks, tablets, and smartphones.

Homeownership status is less of a factor among GenX. Unlike the pattern among current tech users, GenX homeowners don’t have substantially stronger plans than do GenX renters. And among Baby Boomers, the pattern is slightly reversed. For many tech products, especially the most-mobile devices, a higher share of Boomer renters plan to purchase notebooks, tablets, smartphones, and desktop PCs than do Boomer homeowners.

Notes

For decades, MetaFacts has focused on research technology usage and adoption, and segmented users by a wide variety of sociodemographic and behavioral factors. This helps us support our wide variety of clients, some of who use different segmentation and analysis approaches that change over time. While many of our clients employ proprietary segmentation approaches, others seek to analyze the market using more publicly-available or convenient standards.

Analysis by age is one widely-used view, and often a productive starting point for deeper analysis. In some cases, age is a key component of life stage, reflecting passages such as adulthood or retirement. In other cases, birth year is used to identify a generational group. Segmentation approaches seek to identify groupings of people who as similar to each other as they are different from members of other groups.

For the analysis in this TUPdate, MetaFacts has categorized online adults into the following age groups:

  • Millennial adult (born 1981-1999, age 18-36)
  • Generation X (born 1965-1980, age 37-52)
  • Baby Boomer (born 1946-1964, age 53-71)
  • Silent+Greatest Generation (born 1945 and before, age 72+)

In our standard TUP analysis, we often split Millennials and GenX into younger and older groups, since much of the technology adoption varies within each of these groups.

MetaFacts continues to conduct custom analysis of the groupings that are the most useful with respect to their use and adoption of technology, as well as with respect to broader sociodemographic and behavioral analysis.

We’re also monitoring the ongoing discussion among the research community around the possible name of the next generation following Millennials. In January 2018, a New York Times reader request turned up suggestions such as “memelords”, “iGeneration”, “deltas”, or “Generation Z or GenZ”.

Source

This post includes a complimentary brief summary of recent MetaFacts TUP (Technology User Profile) research results. These results are based on results of the MetaFacts Technology User Profile survey, from TUP 2017, its 35th consecutive wave, as well as previous waves. Comparable results are available through TUP fielded in Europe and Asia. For more information about MetaFacts and subscribing to TUP, please contact MetaFacts.

 

 

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Filed under Consumer research, Demographics & Econographics, Market Research, Market Segmentation, Market Sizing, TUP 2017, TUPdate

Online and Offline seniors – Hidden in Plain Sight

Online and offline seniors – hidden in plain sight

The number of actively connected seniors continues to rise, even while their connection rate has stalled. Also, seniors are very active with their connected devices, from PCs to Tablets and Smartphones.

There are more American seniors online than ever before. This is primarily due to two factors – rapid mobile phone adoption and the growing number of seniors in the U.S. Population. Based on our Technology User Profile (TUP) 2017 survey, nearly 44 million adults age 62 and older actively using a PC, Tablet, Mobile Phone, or Game Console to connect to the Internet.

A market segment often overlooked or derided by the tech industry, seniors have been increasingly embracing technology, weaving it into the fabric of their lives.

Mobile phones are hot among older adults, especially Smartphones. Tablet and Smartphone usage has soared among Americans age 62 and above, rising 49% and 47% per year, respectively, between 2013 to 2017. In 2013, the number of active Tablet users age 62 and over was under 4 million, and in 2017 that number is 19.1 million seniors. Similarly, Smartphone use has grown from less than 6 million adults age 62 and over in 2013 to 26.8 million in 2017.

Notebook PC use has also grown, while overall PC use has remained essentially flat. Mobile PC use has grown 20.4% per year from 2013 to 2017. Use of at least one PC has increased 1.8% per year from 2013 to 2017.

Getting connected has outpaced population growth. Only a small part of these growth rates is due to the growing population of seniors. The US Census projected that the number of Americans age 65 and above grew 3.3% per year from 2013 to 2016. During this same period, the number of Connected Adults age 65 and above grew 5.6% per year. The current number of 43.4 million adults regularly using an Internet-connected PC, Tablet, Mobile Phone, or Game Console is up from 35.7 million in 2013. In other words, one in five (20%) Connected Adults in the US are age 62 and above.

The rapid growth of Smartphone use among seniors is due in part to the many of these adults who have given up their old data-free basic cell phones. However, that’s not the entire story. Overall mobile phone adoption has grown. Between 2013 to 2017, mobile phones are in the hands of 20.5 million more adults age 62 or above.

Not to be underestimated

Seniors are big tech spenders. The average annual household technology spending by adults 62 and older is $6.6k. Among slightly older adults 65 and older, the average is slightly less at $6.5k per year for all technology devices and services. Like their younger counterparts, the majority of tech spending by older adults is for services, from cable TV and smartphone service to Internet connections.

More than healthcare

Often seniors are overlooked with the uninformed belief that they are not active with their connected devices, or only focused on healthcare. Although not as active as younger connected adults, seniors are busy with their connected devices.

More than 50% of connected adults age 62 and older around the world use their primary connected device for nearly every type of activity: from Communication, Shopping, Information & Search, and Personal/Productivity, to Entertainment. One reason that seniors may be thought to be less active is their relatively lower presence on Social Networks, making them less visible. This is based on our Technology User Profile 2017 survey across five countries (US, Germany, India, UK, and China). In China and India, connected seniors 62 and older.

Searching online for healthcare information is a major activity for half of seniors using their primary connected device, although it’s the fifth-ranked activity. Even more widespread are activities such as shopping, staying in touch, on top of finances, and current events.

Looking ahead

I expect connected seniors to continue to expand their use of their technology, while unconnected seniors will remain unconnected. Those already connected will follow the path of younger adults and these senior’s younger selves, finding evermore ways to enjoy and utilize each type of technology they’ve adopted. Among  unconnected seniors, the flattened connection rates isn’t likely to spike soon with the current approaches. Although many organizations from retailers to hospitals are nearly demanding that all their clients all interact online, force isn’t working. Unconnected adults are not being served, or organizations are needing to rely on connecting through traditional methods: postal mail, landline phones, and personal visits. Senior non-users are unlikely to respond to the benefits that attracted younger adults online in the first place. Instead, new approaches are needed.

In the meantime, don’t be surprised to see more active seniors toting Smartphones and Tablets.

Source

The information in this TUPdate is based on the most recent wave of Technology User Profile (TUP) – the TUP 2017 wave into the US, UK, Germany, India, and China. Current TUP subscribers can tap into these and additional similar results about seniors and younger adults. For more information about MetaFacts and subscribing to TUP, please contact MetaFacts.

 

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Filed under Behaviors and Activities, Consumer research, Demographics & Econographics, Market Segmentation, Smartphones, Statistics, Tablets, Trends, TUP 2015, TUP 2016, TUP 2017, TUPdate

K-12 Children and Technology Spending

Dan Ness, Principal Analyst

Who can quantify the pride or commitment of a parent? On social networks, I often see a parent sharing their happiness about their child reaching an educational milestone.A proud father

One measure of parental pride, dedication, or support could include the investment they make in tools to help their children grow and learn. Technology spending among adults with children continues to increase, and especially so among those with younger school-age children.

As released in our most recent wave of Technology User Profile – TUP 2017 US – our research shows that spending on home technology devices and services has increased both in volume and breadth. The number of Connected Adults with school-age children has grown, and so has their average tech spending. In TUP 2015, we found that 72.5 million Connected Adults were in households with Children. That grew to 81.2 million, as ascertained in our TUP 2017 wave.k12 homes tech spending trends TUP 2017-15 171130_1200

The average (mean) annual amount spent on technology devices and services is strikingly stronger for households with children than for those without children. The average annual tech spend increased from $7.4k to nearly $11k within only the last two years – from the TUP 2015 to TUP 2017 survey. During this same time, homes without children increased their tech spending, although the growth has not been as substantial. Among adults with no children, average spending rose from $5.9k to $6.7k over those three study years.

Drilling down into the TUP data just a little deeper, I noticed a more interesting difference among households with children in their tech spending. Homes with younger school-age children (age 6-11) are spending the most on home technology devices and services. Meanwhile, households with either the oldest or the youngest children have increased spending, although not by as many dollars.k12 homes tech spending trends by age segment TUP 2017-15 171130_1215

While not all home technology is being bought solely for the use of kids, there’s a strong association. For example, more than one-in five (22%) adults with children in their household specifically print items for children/teen education.

Also, Connected Adults with school-age children (6-17) are 20% or more likely than the average to be using a Home All-in-One PC, Apple Home Mac, or Home Tablet.

Looking ahead

Parents have been some of the biggest tech spenders for decades, and this recent increase in investment bodes well for the tech market as well as for the next wave of children. Each successive generation has become more comfortable with and reliant on technology devices and services. I expect this momentum to continue as each new generation of new parents uses what they know to support their children’s education and future.

Source

The information in this TUPdate is based on the three most recent waves of Technology User Profile (TUP) – the TUP 2015, 2016, and 2017 waves into the US. Current TUP subscribers can tap into these and additional similar results about adults with children in the UK, Germany, China, and India. For more information about MetaFacts and subscribing to TUP, please contact MetaFacts.

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Filed under Market Research, Market Segmentation, Personal and Productivity, TUP 2015, TUP 2016, TUP 2017

Apple’s Long March into the Majority (TUPdate)

Apple’s Long March into the Majority – Dan Ness, October 27, 2016
td1609-apple-penetration-2016-10-25-1311
For the first time in tech history, Apple has reached the half-way mark in the active installed base. As of our 2016 wave of the TUP survey, 52% of connected adults are using either an Apple Macintosh, iPhone, or iPad. This overall penetration statistic reflects that at least one key Apple device is in the hands of over half of the market.

Apple’s achievement has been from multiple successes – not only one blockbuster. In fact, just as all boats rise together on the same tide, each of Apple iPad, iPhone, and Macs have attained greater market penetration.

The iPhone has lead the charge, passing one-fourth of U.S. connected adults in 2015 to reach 36% in 2016. The iPad has experienced the most dramatic growth, stretching beyond one in five adults in 2015 to 29% in 2016. Of the three key devices, the Apple Mac and MacBooks are starting to mark their mark beyond their prior return customers. Having been strong among students and mobile employees for some time, especially MacBooks, both Apple notebooks and desktops are reaching a wider audience.
metafacts-td1609-apple-device-penetration-2016-10-25-1305

Apple has achieved this in part through balancing proprietary designs with open standards. To encourage and support use by users of only one of Apple’s key devices, each one needs to play well with other competitive products. For example, iPhone and Android Smartphone users need to be able to communicate with each other. Although Apple hasn’t fully opened their iMessage system, basic text messaging works cross-platform. iPad users need to be able to easily browse web pages with as much ease as on a Windows or Android Tablet, even while Apple famously avoided enabling Adobe Flash. Mac users need to be able to share documents with Windows users, and that’s smoother than ever.

Apple’s growing penetration has also been one of expanding breadth. Now effectively half (49%) of Apple’s customers have two or more of Apple’s key devices. Only one year ago, in 2015, only 41% had that many. The most demonstrably loyal Apple customers have the full collection of these three key devices. This continues to be a small group, at 15% of Apple’s customers for these devices, and yet this is a growing group.

Diving into the combinations
To get a more complete understanding into the dynamics, I dove more deeply into the TUP data. One fruitful dimension of our custom forecasting analysis is based on what users have. For most tech products and service, buyers begin with what they have. The current set of products has a strong impact on shaping future choices. For example, when consumers mull buying a tablet, those already using both an Apple Mac and iPhone are more likely to include an iPad in their consideration set than those with no Apple devices at all. They’re also more likely to have an ongoing connection with Apple, even if it’s limited to periodic operating system updates. Similarly, those with any single Apple device are more likely than non-users to at least consider an additional Apple device. Of course, this isn’t automatically true, since in some cases in can backfire if users are having bad experiences with the product, brand, or in this case, the OS ecosystem.

The largest group based on combinations of Apple devices – those who are only using an iPhone, and not an iPhone or iPad. This group has been largest since 2014. Those who have added an iPad to go along with their iPhone have brought this 2-Apple-device combination to be the 2nd-largest. Perhaps surprisingly, the 3rd-largest Apple-device combination is the set of users who have all three. Although this Apple-intense group only represents 8% of all connected adults, it’s grown from being 4% only one year prior.metafacts-td1609-apple-combo-penetration-2016-10-25-1157

Into the [main] stream
With Apple’s move into the majority, will it be harder for Apple to be perceived as elite, special, and “different”?

Even in the 1980’s when I was researching markets for Apple, the company was different and special. From its beginning, Apple appealed to and reached a small share of the market. There have always been certain segments of the market where Apple has dominated at least some of the time, such as among creatives in graphics, marketing, and education.

We are conducting additional analysis of technology users by their employment role and industry, to see where other TUP results point to strongthening or weakening Apple adoption through buyer’s purchase intentions, refresh rates for PCs (Macs), Smartphones, and Tablets, socioeconomic factors, and many other factors.

Looking ahead
We expect Apple’s expansion to continue, although not with as high growth rates as in the past. In the tablet business, Microsoft’s Surface has made recent inroads, such that 12% of connected adults are using a Windows Tablet. Google Android Tablets are also a strong force, being actively used by 17%.

With the recent refresh of the MacBook line, Apple stands to continue its broadening penetration. The foremost  buyers will come from within the ranks of current MacBook and Apple desktops users. We expect a smaller percentage of buyers to come from the ranks of current Windows Notebook users. Stronger yes will be those users with at least one Mac, iPad, or iPhone.

This trope can finally be truthfully said: these segments are Apple’s low-hanging fruit.

About this TUPdate

This TUPdate includes a complimentary brief summary of recent MetaFacts TUP (Technology User Profile) research results. These results are based on the most-recent results of the MetaFacts Technology User Profile 2016 survey, its 34th wave, with 7,334 respondents (US). Trend information is based on prior waves. For more information about MetaFacts and subscribing to TUP, please contact MetaFacts.

Resources

Current TUP subscribers can tap into any of the following TUP information used for this analysis or for even deeper analysis.

The TUP 2016 Devices Chapter details device combinations, as well as device primacy, OS Ecosystems, brand footprint, and other key analysis points.

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Filed under Market Research, Market Segmentation, Market Sizing, Notebooks, Operating systems, Smartphones, Tablets, Technology adoption, TUP 2016, TUPdate

Tech Media, Advertising, TV – solid market research from MetaFacts Technology User Profile

Extensive information about tech media, advertising and TV is available in TUP – Technology User Profile.

Today’s media-savvy consumers may want their MTV, but they might seek alternative methods to get it.  Advertising seems to have become an option for the consumer, who today is able to bypass commercials, salespeople, and even email in favor of social networking and other sites.  Advertisers in this day and age have to be both flexible and targeted while ubiquitous in order to get their message across.

Below are a few examples of questions addressed in TUP related to tech media, advertising, and television. The full TUP service enables drilling down beyond the answers to these questions to identify which other technologies, services and behaviors are disruptive and to profile which market segments are and aren’t adopting. TUP is much more than a one-dimensional market view or opinion piece, since it delivers solid answers to the following questions, and more.

  • Which tech buyers focus more on retail than shopping online and vice versa?
  • How are Facebook users different from users of other Social Networks? Beside demographics, what else distinguishes these from each other?
  • Who is printing coupons?
  • Which smartphone OS is leading, and with which market segments?
  • How many screens do people view? Which market segments view more screens than other segments?
  • Online shoppers – are they everyone, or unique?
  • What do users sync or “store” in the cloud? How do users share images – social networking sites or photo-specific sites? Which users are the most active?
  • Who are the people who shop for technology products on the web, but purchase at a local retail outlet?
  • Most-mobile customers – where do they go and what do they do?
  • Entertainment primacy – what is the center of the user’s home entertainment world? Is it one device or many? Which devices and services, and among which segments?
  • What is the impact on privacy concerns on use of social networking?
  • How do online shopping activities differ between Hewlett Packard, Apple and Dell customers?
  • What is the status of mobile phone transition, from basic feature phones to smartphones and non-users?
  • Which segments are the most music-intensive? What is the overlap of music-centered products and services by segment?
  • Who spends the most hours online?
  • Who are the biggest tech spenders? Which segments spend the most and least for devices? How does spending for tech services differ?
  • Which combination of tech devices is the most popular today? How large is each segment? Who are in each segment? Which direction are they headed with their buying plans?
  • How many and which segments are watching and renting movies on which platforms?
  • Which social networks show the most growth-oriented activity? Which segments show signs of losing interest or withdrawing?
  • Tech adoption cycles may not be as fast as the tech-focused think. How many and which users still use older tech products?
  • Which market segments interact with their social network using their mobile phone, and which do not? What else stands out about these connected users?
  • What are the attitudes about texting and driving? Who is most supportive and who is mostly opposed?
  • What other activities are just outside the box for gamers? Online dating? Social Networking? Music? Movies? Entertainment in general?
  • How PC/Online & Mobile Phone activities compare? How is this different for Tablets or eBook Readers? Which segments use which device for the most activities?
  • Are Apple’s retail shoppers already the Apple-faithful or is Apple drawing in the unconverted? Who are these shoppers?
  • What makes a smartphone a smartphone in the consumer’s eyes? How does usage compare to basic mobile phones? What are the user segments and usage profiles?
  • Who is buying the highest-end PCs? Are there brand differences? What else do users buy and what else do they use?
  • Which market segments are blogging? How do they compare to social networkers?
  • Which PC brands dominate the PC market? How does this vary within market segment?
  • Who is videoconferencing, and using which platform?
  • Who are the true early adopters and laggards? How does this vary by actual usage of specific products and technologies?
  • How prominent is Home PC renting versus outright purchase?
  • How much have PC users integrated PCs into their personal lives?
  • How does the life and lifespan of a PC vary by form factor? Does it vary by brand? By user segment?
  • How much of the game-playing population is older versus younger?
  • Primacy – what is the center of the user’s world? Their home PC, work PC, mobile phone? Is it one device or many?
  • Are PC users primarily accessing the Internet at home, in the workplace, using friends or neighbor’s computers, or in public places such as libraries or cybercafés? Which users use other’s PCs and which have many to choose from? Are smartphones or netbooks changing this?
  • How rich is the user’s printing experience? Do they use only one printer or more than one? For multi-printer users, which ones do they use? Who are the most-active printer users?

If solid answers to any of these questions would help your work in creating the future, please contact MetaFacts.

MetaFacts, Inc. helps technology marketers find and measure their best and future customers.

For more information on the results delivered in TUP and about how to subscribe, please contact MetaFacts.

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Filed under Consumer research, Market Research, Market Segmentation, MetaFAQs, Statistics, Tech Market, Trends, TUP 2011, TUP 2012