CUTTING-EDGE CONSUMER TECH INSIGHTS

Cutting-Edge Consumer Tech Insights Page ! of !1 1

CUTTING-EDGE CONSUMER TECH INSIGHTSWHO'S WINNING, WHO'S BUYING, AND WHAT WILL THE FUTURE HOLD

INTRODUCTION Technology: Love it or hate it, it’s here to stay, and it’s always evolving. From virtual reality to self-driving cars, it’s hard to believe the difference a few years can make. Some of us are device addicts, while others are clinging to their flip phones, not ready to upgrade. No matter where you fall on the tech savviness spectrum, it’s a part of our everyday lives.

In this eBook, we’ve compiled a number of interesting findings from an extensive series of consumer technology blog posts and reports we published from July 2016 to September 2016, using data collected from our scientifically-proven polls. Hundreds of thousands of respondents are represented here, as we uncover consumers’ technology interests, awareness, device ownership, device market potential, and more.

We hope you enjoy the eBook – and please feel free to share these insights with others. We just ask that you attribute the insights back to CivicScience.

Interested in receiving more insights? Curious how we do it? Please contact us to receive a demo and see how we are helping consumer tech companies identify shopper segments, monitor trends, and make winning bets on the future. Email us at: [email protected]. Request a demo at: https://civicscience.com/request-a-demo/.

To keep up with our latest insights, please follow us on Twitter (@CivicScience) and check out our blog, with new posts added daily: https://civicscience.com/latest/.


https://civicscience.com/request-a-demo/

https://civicscience.com/request-a-demo/

https://civicscience.com/latest/

DIGITAL DEVICE ADDICTION

59% of U.S. consumers aged 13 and older consider themselves at least “somewhat” addicted to their digital devices.

76% of people under the age of 25 consider themselves addicted.

WHO ARE THE ADDICTS?

They are more likely to consider themselves “Night Owls”

They are more likely to have trouble falling asleep most nights

They are more likely to overeat

They are more likely to own exercise equipment but not use it

They are more likely to have difficulty controlling their spending


DEVICE ADDICTION TREND

By the end of 2013, 49% of Americans self-identified as addicts, meaning the current 59% represents a 20% positive change in the past 30 months:

Would you call yourself addicted to your digital devices? (computer, smartphone, etc.)

Where is the majority of device addiction growth coming from since 2013?

‣ Reported rates of addiction increased the most among respondents aged 35-54 and slightly among those 55+.

‣ It has also increased faster among men, parents, suburbanites, and the wealthy.


35%

45%

55%

65%

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

Yes No

THE BATTLE OF THE GENERATIONS

There’s a new generation taking center stage, with the oldest members just shy of 20. At nearly 70 million people, Gen Z’s size and influence are quickly approaching that of Millennials, making them a valuable group of consumers.

GAMING HABITS

Gen Z is 47% more likely than Millennials to be interested in purchasing a VR headset to enhance their gaming.

Gen Z is 42% more likely to play video games daily.

ADDITIONAL INSIGHTS

Millennials are 29% more likely than Gen Zers to have ad blocking software on their mobile phone.

51% of Gen Z consumers stream TV / video more than 1 hour / day, vs. 47% of Millennials.

Gen Z consumers are more than 2X as likely as Millennial consumers to say social media influences their electronics purchases a lot.

Gen Zers are 25% more likely than Millennials to say they are addicted to their digital devices.


THE POKÉMON GO CRAZE OF 2016

AS OF MID-JULY…

There was a 96% awareness of the game.

21% of people have played or intended to play.

WHO’S PLAYED OR INTENDS TO PLAY?

‣ 54% are 13-25 years old

‣ 25% are 25-34 years old

‣ They are more likely to eat fast food at least once per week

‣ They are also more than twice as likely to go to the movies at least once a month

‣ They are 45% more likely to tell others about new brands or tech

‣ A third are parents

WHICH STARTING POKÉMON IS THE MOST POPULAR?

Charmander takes the lead, followed by Squirtle and Bulbasaur.


THE SURPRISING NEXT ADOPTERS OF FITNESS TRACKERS

18% of adult consumers already own a wearable fitness tracker, with the majority using their device often.

7% of adults don’t own one but plan to buy one.

Let’s take a look at adults who are in the market for their first wearable activity tracker. They don’t seem to be the typical laggards who are slow to adopt technology.

THOSE WHO DON’T OWN A FITNESS TRACKER BUT PLAN TO BUY ONE ARE…

64% women and 36% Millennials (aged 18-34). Not surprisingly, 45% exercise several times a week. However, this is less than the 51% of fitness tracker owners who exercise weekly. In terms of the type of exercise, they are 39% more likely to do aerobic / cardio activities than the general population. Those in the market for an activity tracker are 28% more likely to look at online reviews before making a purchase, they are 75% more likely to use Pinterest actively, and are 54% more likely than the general popluation to say social media influences their electronics purchases.


IT’S STILL EARLY ADOPTER TIME FOR SMARTWATCHES

Which of the following best describes your experience with smartwatches? (Responses: 22,938)

THOSE WHO ANSWERED WITH “I OWN ONE (OR MORE) AND USE IT OFTEN” ARE MORE LIKELY THAN OTHER GROUPS TO…

Try new products before other people do

Read technology websites or blogs

Consider brand over price when shopping

THOSE WHO ANSWERED WITH "I DON'T OWN ONE, BUT I PLAN TO BUY ONE" ARE MORE LIKELY THAN OTHER GROUPS TO...

Read technology websites or blogs

Tell others about new brands and technology


I own one (or more) and use it often

I own one (or more) but don't use it much

I don't own one, but plan to buy one

I don't own one and don't plan to buy one

I've never heard of this

0% 20% 40% 60% 80%

THE SMART HOME TREND HAS YET TO TAKE OFF. WILL IT EVER?

SMART HOME INTEREST

When comparing data collected in July 2015 to data collected in July 2016, it seems consumers are only slightly more likely to be interested in purchasing a smart device for their home:

Which of these smart home automation products that can be controlled via smartphone apps are you most interested in purchasing next? (Responses: 2,133)


None of these

Home security products, including cameras and alarms

Audio

Lighting

Automated electrical outlets / switches

Climate control devices, i.e. ventelation, temperature, humidity

0% 15% 30% 45% 60%

July 2016 July 2015

SMART HOME OWNERSHIP

7% own a smart home product.

Another 7% don’t own a smart home product but plan to buy one soon.

POTENTIAL SMART HOME BUYERS

65% of potential buyers are men.

62% of potential buyers tell family and friends when they are happy with a product.

52% of potential buyers always compare prices before making a purchase.

45% of potential buyers read tech blogs or websites at least weekly.

40% of potential buyers are not yet homeowners.


GAMING CONSOLES, VR HEADSETS AND THE UPCOMING HOLIDAYS

PLAYSTATION VR INTEREST LEVELS

Are you planning to buy the Playstation VR headset? (Responses: 2,116)


Yes

No, but I own or plan to buy another type of VR device soon

No, but I'll buy a VR device of some kind when the price comes down

No, but I'll buy a VR device of some kind when the technology matures

No, and I have no intention of ever buying one

0% 20% 40% 60% 80%

SONY PS4 PRO: WHO WILL BE IN LINE THIS NOVEMBER?

‣ 13% of people are likely to purchase the PS4 Pro console. Of those people, 54% are men and 51% don’t have children.

‣ People who own or want a virtual reality product are more than 3x as likely to be in the market for the PS4 Pro.

‣ Fans of TV dramas are more likely to purchase the PS4 Pro; however, those interested in purchasing the console are less likely to be influenced by TV ads. Instead, they are 64% more likely to be influenced by social media.

‣ When it comes to their eating habits, over half of potential buyers eat most at fast food and fast casual restaurants. They are 88% more likely to eat at fast food restaurants and 90% more likely to eat at fast-casual restaurants than the general population.

‣ One last interesting, but random insight: people who volunteer at least once a week are more than twice as likely as the general population to answer they are interested in purchasing the new PlayStation.


SELF-DRIVING CARS – SAFETY CONCERNS

‣ 11% of adults would feel safe in an Uber self-driving car.

‣ 25% of adults would feel safe in an Uber self-driving car only if there was an employee at the wheel just in case.

‣ 64% would not feel safe regardless.

WHO WOULDN’T FEEL SAFE IN A SELF-DRIVING UBER?

They are split equally between men and women.

They are generally 45 and older.

Parents and grandparents are less likely to feel safe.


HEADPHONE USAGE – WHY THE NEW IPHONE DESIGN MAY HAVE PROBLEMS

If smartphones didn’t have a headphone jack in favor of connectivity via Bluetooth and the charging port, meaning you couldn’t charge the phone while having headphones plugged in, would this be a problem? (Responses: 2,121)


Yes, I have my headphones plugged in while charging my phone

No, I use my headphones while charging my phone, but I have / plan to

purchase wireless headphones

No, I do not use my headphones while charging my phone

Does not apply

0% 10% 20% 30% 40%

PEOPLE WHO HAVE THEIR HEADPHONES ON WHILE CHARGING THEIR PHONES ARE MORE LIKELY TO...

‣ Be active Snapchat, Instagram and Pinterest users and more than twice as likely to actively use Twitter.

‣ Own or want a smartwatch, virtual reality equipment, and a wireless speaker system.

‣ Follow technology trends and stream music.

‣ Be under the age of 30.

If the tech engaged crowd doesn’t buy into this new paradigm, Apple might have a problem selling the newest iPhone to the general public.


BLUETOOTH AND WIRELESS HEADPHONE OWNERSHIP

Which of the following best describes your experience with Bluetooth and wireless headphones? (Responses: 1,917)

31% of people own bluetooth / wireless headphones, however, more than half of those people say they don't use them much.

8% don't own bluetooth / wireless headphones, but plan to buy some. This group of consumers is much more likely to have a favorable opinion of Beats by Dr. Dre.


I own one (or more) and use it often

I own one (or more), but don't use it much

I don't own one, but plan to buy one

I don't own one and don't plan to buy one

0% 15% 30% 45% 60%

PAY TO PLAY: AMAZON MUSIC UNLIMITED

We asked consumers before Amazon's music streaming service was named and a launch date was set:

Amazon is reportedly preparing to launch a standalone streaming music service for $9.99. Will you subscribe to it? (Responses: 2,063)


Yes, and I've never subscribed to a streaming music service before

Yes, and I'll keep the other paid subscriptions I already have

Yes, and I'll unsubscribe from other paid music subscriptions

No, I'll continue using an existing paid subscription

No, and I don't use paid streaming music services

0% 30% 60% 90%

WILL AMAZON ATTRACT NEW STREAMERS OR JUST CANNIBALIZE THE OTHER SERVICES?

Roughly 17% of people pay for a music streaming service.

Of the consumers who say they plan to subscribe to the service, an equal 1/3 indicate that they will be first-time streamers, 1/3 will keep other paid subscriptions, and 1/3 will unsubscribe from current services.

In other words, Amazon could bring 1% of U.S. consumers into the streaming marketplace and steal another 1% from other providers.

WE ASKED CONSUMERS HOW LIKELY THEY WOULD BE TO TRY THE NEW STREAMING SERVICE:

‣ 46% of respondents aged 13 to 29 fall into the “likely” category.

‣ 10% of respondents aged 35 to 44 could subscribe.

‣ They are more likely to be female.


HOW WE DO IT

CivicScience surveys millions of consumers every month inside the content of a large and diverse network of web, mobile, and social publishers. Because these surveys are brief, convenient, and engaging, the methodology reduces the burden of traditional techniques and mitigates the declining response rates and respondent biases plaguing the research industry.

‣ Over 45+ Million profiled respondents

‣ 85% of CivicScience respondents do not belong to any reward-based survey panel.

‣ Data collection is quota-based, matched to U.S. Census figures to limit need for reweighting or other post-collection manipulation.

‣ Extensive technical measures and diagnostics ensure random probability of each question appearing to any given respondent, eliminate opt-in bias, prevent multiple responses from the same respondent, and identify and purge fraudulent participation.

Our data is used by Fortune 1000 brand clients and agencies, and our insights have been featured by The Wall Street Journal, Bloomberg, Fox News, CNBC, The Hollywood Reporter, AdAge, Forbes, The Huffington Post, Good Morning America, Quartz, Gartner, USA Today, and hundreds of other local, national, and global news publishers.

Since our inception in 2011, the CivicScience Methodology has been exhaustively scrutinized and validated by leading academics, economists, data scientists, industry analysts, and dozens of highly-discriminating clients.

To learn more about the CivicScience methodology, check out our academic white paper on the topic: https://civicscience.com/white-paper-assessing-our-methodology/


https://civicscience.com/white-paper-assessing-our-methodology/

https://civicscience.com/white-paper-assessing-our-methodology/

REFERENCES

List of CivicScience posts and reports used for this ebook:

1. Digital Device Addiction is Growing at a Staggering Pace. Published on July 12, 2016. Data collection of 9,940 U.S. 13+ year olds responding from April 9, 2016 through July 8, 2016.

2. Gen Z is Making Waves in the Tech World. Published on June 20, 2016. Data collection of 1,040,556 Millennials (18-34) and 285,521 Gen Z consumers (13-17) from January 2015 through July 2016.

3. When It Comes to Playing Pokémon Go, Age Ain't Nothing but a Number. Published on July 14, 2016. Data collection of 2,814 U.S. 13+ year olds responding from July 12, 2016 to July 13, 2016 for the intent to play question. Data collection of 1,220 U.S. 13+ year olds responding from July 12, 2016 to July 13, 2016 for the starting Pokémon character.

4. The Surprising Potential Fitness Tracker Buyer. Published on July 21, 2016. Data collection of 17,960 U.S. adults responding from May 2, 2016 to July 14, 2016.

5. It’s Still Early Adopter Time for Smartwatches. Publisher on August 3, 2016. Data collection of 22,938 U.S. 13+ year olds responding from May 2, 2016 through August 3, 2016.

6. The Smart Home Trend Has yet to Take Off. Published on August 20, 2016. Data collection of 2,187 U.S. adults from July 12, 2016 to July 14, 2016 for the smart home interest question. Data collection of 7,091 U.S. adults from July 21, 2016 to August 3, 2016 for the smart home ownership question.

7. Want to Boost PlayStation VR Sales? Make it cheaper, make it cooler, make it family friendly. Data collection of 2,419 U.S. 13+ year olds responding from April 26, 2016 through August 24, 2016.

8. Overcoming the Fear of the Future – Uber’s ‘Something New, Something Borrowed’. Data collection of 2,227 U.S. adults from August 22, 2016 to August 24, 2016.


https://civicscience.com/digital-device-addiction-growing-staggering-pace/

https://civicscience.com/gen-z-is-making-waves-in-the-tech-world/

https://civicscience.com/surprising-potential-fitness-tracker-consumer/

https://civicscience.com/still-early-adopter-time-smartwatches/

https://civicscience.com/the-smart-home-trend-has-yet-to-take-off/

https://civicscience.com/want-boost-sony-vr-sales-make-cheaper-make-cooler-make-family-friendly/

https://civicscience.com/want-boost-sony-vr-sales-make-cheaper-make-cooler-make-family-friendly/

https://civicscience.com/ubers-something-new-something-borrowed/

https://civicscience.com/ubers-something-new-something-borrowed/

9. The Surprising Group that isn’t Ready to Cut the iPhone Headphone Cord. Data collection of 2,121 U.S. 13+ year olds responding from August 23, 2016 to August 27, 2016.

10. Why the New iPhone Could Be Good News for Beats. Data collection of 1,917 U.S. 13+ year olds responding from August 23, 2016 to August 27, 2016.

11. Sony PS4 Pro: Who Will Be In Line This November? Data collection of 2,138 U.S. 13+ year olds responding from September 21, 2016 through September 23, 2016.

12. Amazon Can Build a Streaming Music Business Without Growing the Overall Market. Published on June 14, 2016. Data collection of 2,053 U.S. 13+ year olds responding to the likelihood question, and 2,063 U.S. 13+ year olds responding to the intent question from June 10, 2016 to June 12, 2016.


https://civicscience.com/arent-ready-cut-headphone-cord-new-iphone/

https://civicscience.com/iphone-good-news-for-beats/

https://civicscience.com/sony-ps4-pro-who-will-be-in-line-this-november/

https://civicscience.com/amazon-can-build-streaming-music-business-without-growing-overall-market/

https://civicscience.com/amazon-can-build-streaming-music-business-without-growing-overall-market/


WHAT CAN WE HELP YOU LEARN ABOUT YOUR AUDIENCE? With 60,000 questions, millions of respondents, a nationwide publisher network, and close to a decade of data, we can help you better understand your customers and audience. Just ask. Visit ask.civicscience.com.

http://ask.civicscience.com

http://ask.civicscience.com

CUTTING-EDGE CONSUMER TECH INSIGHTS

Documents

Transcript of CUTTING-EDGE CONSUMER TECH INSIGHTS