Kantar Media: The ‘game-changers’: identifying the future audience for online news media
In our latest research focus article, Kantar Media look at the audience using mobile devices to access online media news – and locate optimistic trends for paid news sites.
Rupert Murdoch recently proclaimed the Apple iPad as a potential ‘game changer’ that could rejuvenate online news media. But who are the key players in this finely poised game; i.e. those likely to access (and potentially pay for) news via tablet computers? To find out, it’s prudent to investigate those currently consuming online news on the move.
In recent times, the number of British adults who regularly use the internet via a mobile device has increased dramatically. Indeed, according to Kantar Media’s Internet Monitor, it has risen from 2.8m in 2008 to 4.3m in 2009 and now doubled to a massive 8.6m in 2010. Combine this with the Internet Advertising Bureau/PricewaterhouseCoopers mobile internet advertising figures (a 32% increase to £37.6m in 2009) and it strongly suggests that mobile is now a viable medium in itself.
Social networking has undoubtedly been a key driver in people making more use of mobile internet. Indeed, half of mobile internet users claim to have used their mobile for social networking in the last six months. This has been reflected by the high-profile successes of mobile services from Facebook and Twitter. However, news content actually follows closely, with four in ten accessing news content via their mobile devices. It is important, therefore, to examine these key players in a potentially ‘game-changing’ shift in online news consumption.
Currently, most of those who access news content via mobile internet are male (69%) and aged 20-44 years (with the largest proportion aged 25-34). Social grade is evenly split with 35% AB, 33% C1 and 32% C2DE.
With two thirds ABC1 and a youthful age profile, this presents an affluent and progressive target audience for advertisers. This is reinforced by an average household income of £43,000 for mobile news users, which is 30% higher than the general online average of £33,000. Moreover, this is reflected by an average online spend in the last 6 months of £779 compared with £587. Such figures highlight the potential return on investment from advertising effectively targeted at this group. With this in mind, it is necessary to consider how receptive the group is to internet advertising.
In terms of attitudes, mobile news users are more likely than the online population to find internet advertising ‘more relevant’ than other forms. This is reflected in actions, with such users more likely to have researched a brand advertised online. Mr. Murdoch will also be encouraged by a greater receptiveness towards paid-for content amongst the mobile news audience. For example, 18% agreed that ‘if a newspaper’s website was no longer free, I would agree to pay for this content,’ compared with 9% of those who access news online in general. In addition, a quarter of mobile news users claimed they would miss online newspapers if they were no longer available, compared with just 12% of the general online population. This reflects a group that is generally less likely to read print titles, and prefer surfing the web to watching TV.
To encourage such individuals to pay for content and ensure a robust advertising audience, their broader online preferences must be engaged. For example, over a third (35%) have submitted an article or comment to a website in the last 6 months, compared with 16% of the online population. Correspondingly, 6 in 10 have read an article or comment submitted by another member of the public. This highlights an active group wishing to read the comments of others, whilst posting their own opinions. In addition to community content, online news users are also likely to be attracted by video features and news clips. Nearly 6 in 10 (58%) have watched news videos online in the last month, compared with 38% of all mobile internet users. There’s evidence of such moves by Murdoch’s News International with The Times providing a user-defined ‘Dashboard’ and a multimedia ‘Have your say’ section.
Digging a little deeper, using Kantar Media TGI Net, there’s evidence that the mobile news audience currently mirrors a classic early adopter profile. For instance, they are more likely to buy new products first and influence others on choice. They are ambitious, motivated and take risks. They are decision makers and trend setters. Mobile news provides a means of reaching this valuable target group and this understanding of the audience helps to understand which categories might be most effectively advertised on mobile news channels. However, the rapid growth rate means this profile is likely to broaden quickly opening up advertising on mobile news sites to a wide range of new brands.
Evidently, there is a considerable and growing number of people consuming news via mobile internet. At their core is an affluent group, receptive to online advertising, and spending. However, to secure this opinion-forming, early-adopter audience, online news providers must deliver appropriately tailored content. This is likely to include community offerings and multimedia content. It will be fascinating to monitor the role tablet computers play in the future progression of mobile news media. Central to this will be who triumphs in the struggle between Rupert Murdoch’s (and maybe Trinity Mirror’s) paid-for model and the free-to-access approaches of their competitors.