1. Digital Pulse Study | Autumn 2011
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2. Our cover story
Where do Australians shop online? 4-25
Regular features
Q2 In what ways are Australians 26-30
connecting with the internet?
Q3 How deeply has the internet 31-35
become a part of our daily lives?
Q4 How are people harnessing the 36-37
internet in different ways?
Q5 How are Australians interacting 38-39
with brands online?
Q6 What are Australians buying online? 40-45
Pulse Check Autumn 2010 3

3. Delivering on the
online promise
It’s a lobbyist’s lot to exaggerate to identify the best value products not offshore businesses. Data offshore (far greater than a GST
the misfortunes of their cause. and services, wherever in the drawn from Principals’ Digital will ever bridge), suggest that
As does The Retail Coalition, world they may be found. The Pulse study, shows that 70% of further book and music store
the pressure group backed by scale strengths inherent in bricks Australian’s online purchases in closures will be difficult to stem.
retailing heavyweights Solomon and mortar retailing don’t drive February 2011 were in support But in a far longer list of
Lew, Gerry Harvey and Bernie success in the way they used to. of local businesses. sectors, local businesses hold
Brookes. They’re pressing the But the extent of the hometown Granted, in some of the most a very dominant share of online
government to introduce GST advantage that local businesses discretionary sectors such as purchasing. Groceries, wine,
on products bought from online enjoy in the online shopping cosmetics, software, music and beer and spirits, insurances,
retailers overseas, in the interests sector is heavily underplayed books, the bulk of Australian’s travel services, event ticketing,
of protecting local livelihoods, in this debate. online purchases are now sourced stationery, computer and large
their own clearly included. overseas, or via the global device electrical appliance sectors
At best, online purchases
That local retailers now face currently account for 10% of stores such as iTunes. The ease are close to captive markets
vigorous competition from online Australian credit card transactions with which these light weight for local online retailers. Either
businesses all over the world isn’t according to the Reserve Bank. or no weight products can be the bulkiness of the physical
in question. Nor is there any doubt Of this online commerce, the shipped here, combined with the goods, the regulated nature of
that online channels are making lion’s share still goes to local, often deep price savings available the local markets or the need to
it easier by the day for customers
Pulse Check Autumn 2010 5

4. Delivering on the
online promise
be physically close to customers core business is clearly evident. growing cohort of Australians
(practically or emotionally) greatly None more so than the major 35 plus are heavily inclined to
favours local merchants. department stores, who offer a shop online locally.
So, there are abundant paltry array of online merchandise, It’s not difficult to understand
opportunities for local retailers to when compared to their why Messrs Lew, Brookes and
prosper online, by combining new global peers. friends are seeking a little pricing
online services with their existing Herein lies the hope for local assistance from the government
physical network strengths. Not to retailers. Despite, a pretty thin to hold their fragile lead. But
compete on lowest price for sure, local online fashion offer and surely the greater opportunity is
but to offer convenience, brand acknowledging a real pricing to build real online excitement,
familiarity, fair value and close at disadvantage vs offshore choice and heartfelt service into
hand service in equal measure. competitors, local businesses still their online stores, in a way that’s
When one visits the online stores captured a majority of Australian’s truly integrated with their existing
of the major Australian retailers online fashion and footwear bricks and mortar networks, to
their ambivalence in making purchases in February; 55% vs deliver all-round value that pure
the transition to online trading, 45%. Australians haven’t turned price competition can’t match.
as a natural extension of their their backs on local retailers
having a go online. And the
Pulse Check Autumn 2010 7

5. Some ideas to 1 If you can’t beat them,
mimic them
become a more
competitive 2 Don’t reinvent the wheel,
use existing platforms
online retailer*
3 Real world rewards and
enriching experiences
4 Inspire patriotic purchasing
* especially for the 74% of Australian retailers who are not online yet.
Pulse Check Autumn 2010 9

6. If you can’t beat them, mimic them
Copy leading local and international e-tailers from
information design to innovative functionality
Everyday, people are talking Tesco has a clear information
about brands online. Everything structure and smart shopping
from latest offers, the service list function that helps
they received, to things they consumers save time and
wish for most. money.
AussieSwimStore helps Zodee incorporates
shoppers select the right Live Help for confused
swimwear by categorsing consumers.
products according to
body shape. Shopping list
on the move:
Ocado’s handy
iphone app.
Pulse Check Autumn 2010 11

7. Don’t re-invent the wheel, use existing platforms
Australia loves eBay and Facebook
Use eBay to make
your goods findable,
then create a
Facebook page
to act as your
shopfront.
Read more on setting up Facebook as your storefront here:
http://mashable.com/2011/03/13/storefront-facebook/
Pulse Check Autumn 2010 13

8. Real world rewards and enriching experiences
Focus less on sales and more on adding value
Inspire
Bombay Sapphire’s pop-up
storefashion driven concept
in New York.
Save
UK fashion brand Firetrap
has a secret warehouse
sale for loyal consumers.
Help and educate Solve
Apple’s retail store offer Nokia creates
consumers useful advice booths where
and a chance to learn people can
more about Apple products have speak on
and creative software. their mobiles
in peace.
Move beyond the store environment to organise secret sales,
special events and experiences.
Pulse Check Autumn 2010 15

9. Inspire patriotic purchasing
Don’t use fear or guilt to make people buy from you, inspire
consumers into buying local products by demonstrating the
good it will do for nation-building.
The current
approach didn’t
work, and it
probably never will.
7 Proudly South Africa and Buy Michigan Now are two examples of where
local pride is created by bringing businesses and consumersto support
their community with job creation.
Pulse Check Autumn 2010 17

10. 18.4%
A device store like: Apple iTunes; The Nokia Ovi store;
Generally
the Amazon Kindle Store; Android Market;
Blackberr y AppStore
Australians
13.9%
An overseas-based
individual/private
seller online 72.5 %
buy more
An Australian-based
business online
locally 34.4%
An overseas-based
business online
26.2%
An Australian-based individual/
private seller online
Pulse Check Autumn 2010 19

11. Younger A device store like:
Apple iTunes; The Nokia Ovi store;
generations buy
the Amazon Kindle Store;
Android Market; Blackberry AppStore
more digital
An overseas-based individual/
private seller online
An overseas-based
content but less
business online
An Australian-based individual/
local goods
private seller online
An Australian-based
business online
0% 20% 40% 60% 80% 100%
W3 14-25 W3 26-55 W3 56+
Pulse Check Autumn 2010 21

12. 120
Brisbane leads 100
in buying locally,
80
while Perth
60
40
has the most 20
international 0
Sydney (L) Melbourne (M) Brisbane (N) Perth (O)
tastes An Australian-based business online
An Australian-based individual/private seller online
An overseas-based business online
An overseas-based individual/private seller online
A device store like: Apple iTunes; The Nokia Ovi store;
the Amazon Kindle Store; Android Market; Blackberr y AppStore
Pulse Check Autumn 2010 23

13. Our regular quarterly findings Pulse rising
Pulse rising Pulse falling
Pulse rising Pulse falling
Pulse the Internet “On-the-move” through mobile/
tablets andfalling
• Accessing
laptops
• Accessing the internet through desktop computers
• Creating profiles on social media sites
• Use of Twitter in terms of both reading and
sending tweets • Commenting positively on work experience
• Job searching and creating profiles on career sites • Watched branded YouTube commercial
• Use of Facebook, particularly Facebook Places with • Overall drop online shopping, particularly leisure/
both younger and mid age groups indulgent/entertainment categories
• Purchasing nutritional products increased in
metro areas
• Overall online experience is having more of an
effect on brand reputation
Pulse Check Autumn 2010 25

14. Q2
In what ways
are Australians 73
connecting with 68
the internet? 35
37
6
Pulse rising
Pulse falling
Pulse Check Autumn 2010 27

15. A laptop A mobile phone
A homebased A desktop computer An iPad/tablet
desktop computer at work or school
60
50
40
30
20
10
0
14-25 26-55 56+
years years years
Pulse Check Autumn 2010

16. What Mobile/ Q3
tablet operating
systems are you
currently using?
How deeply
Android 9%
Don't know 25%
has the internet
Symbion 3%
become a part of
iOS 43% our daily lives?
Windows 17%
Blackberr y 11%
Pulse Check Autumn 2010 31

17. Approximately how much
time in the average week
would you spend online?
20
15
Percent
10
5
0
Up to 5 6-10 11-15 16-20 21-25 26-30 31-35 36-40 41-45 46-50 50
hours hours hours hours hours hours hours hours hours hours hours +
Male
Female
Up to 15 16-30 31-45 45
hours hours hours hours +
Pulse Check Autumn 2010 33

18. 100 100 100
80 80 80
60 60 60
40 40 40
20 20 20
0 0 0
14-25 26-55 56+ 14-25 26-55 56+ 14-25 26-55 56+
years years years years years years years years years
100 100 100 100
80 80 80 80
60 60 60 60
40 40 40 40
20 20 20 20
0 0 0 0
14-25 26-55 56+ 14-25 26-55 56+ 14-25 26-55 56+ 14-25 26-55 56+
years years years years years years years years years years years years
Pulse Check Autumn 2010 35

19. Q4 What are Australians choosing to do online?
MORE THAN 75% + 50-75% 21-49% Pulse rising
LESS THAN 20%
Browsing the internet 94% Pulse rising Accessed a bank or investment 74% Pulse rising Received and read an email 48% Pulse falling Download free video or podcasts 20%
Access personal email account 88%
Pulse falling
Pulse rising account online promoting a company or brand Watched a commercial or branded
Pulse rising
20%
Pulse falling Pulse rising
Sent a message or post content
Pulse falling
Pulse falling Browsing eBay 63% Pulse rising
46% Pulse falling film on YouTube Pulse rising
Accessed a video sharing site
Pulse rising
Pulse falling via (Facebook, Myspace, etc) Download a free game 18% Pulse falling
like YouTube or Vimeo 51% Pulse falling
Researched a brand 44% Pulse rising
Pulse rising
Pulse rising
Illegal downloading – BitTorrents 17% Pulse falling
Accessing work email accounts 34%
Pulse falling
Pulse falling
Friended a brand on Facebook 17% Pulse rising
Skyping 34% Pulse rising
Pulse rising Used Facebook Places 16%
Pulse falling
Pulse rising
Pulse rising
Create or update person profile 33%
Pulse falling
Click on digital ad/banner 15%
Pulse falling
Pulse falling Pulse falling
(Facebook, Myspace, etc) Pulse rising
Instant messaging 33% Participating in online contests 12% Pulse falling
Pulse rising
Clicked on the Facebook ‘Like This’ 33% Pulse rising
Pulse rising
Commenting positively about a brand 12% Pulse falling
Pulse rising
Hunting for property 30%
Pulse falling
Pulse falling Read a company or brand blog 11% Pulse falling
Job seeking 30% Pulse rising
Pulse rising
Posting CVs 9% Pulse rising
Tagging friends in photos 29% Pulse falling
Pulse falling Reading Twitter posts 8% Pulse falling
Pulse rising
Pulse rising
Writing blog entries 8%
Pulse falling
Pulse falling
Participating in online forums 27% Pulse rising
SMS texting 26% Pulse rising Commenting positively about work 7% Pulse falling
Pulse rising
Planned or managed a business
Pulse rising
Pulse falling Business networking (LinkedIn, Plaxo etc) 6% Pulse falling
trip or holiday online 24% Pulse falling
Pulse rising Writing tweets 6% Pulse rising
Pulse rising
Watching catch-up TV 23% Pulse falling
Pulse rising
Using Cloud applications (Google etc) 5%
Pulse falling
Pulse falling
Opted to accept promotional offers 23% Pulse falling Dating 5% Pulse rising
or information from a brand Subscribed to or read an RSS feed
Pulse rising
Pulse falling
Requested further information from from a company or brand 5% Pulse falling
a company online 23% Pulse rising Pulse rising
Pulse falling Commenting negatively about a brand 4% Pulse falling
Pulse rising
Selling on eBay 21% Commenting negatively about work 4% Pulse falling
Pulse rising
Participating in webinars 4% Pulse rising
Followed a brand on Twitter 3% Pulse falling
Pulse falling Other (please specify) 3%
Pulse Check Autumn 2010 37

20. Q5 How are Australians interacting with brands online?
Total 14-25 years 26-55 years 56+ years Female Male
Accessed a bank or investment account online 74 56 75 84 72 77
Received and read an email promoting a company or brand 48 37 49 52 46 49
Researched a brand 44 48 45 40 44 45
Clicked on the Facebook ‘Like This’ feature 33 57 33 20 38 28
Planned or managed a business trip or holiday online 24 19 25 28 23 26
Opted to accept promotional offers or information from a company or brand 23 19 24 23 24 21
Requested further information from a company online 23 17 23 26 23 22
Watched a commercial or branded film on YouTube 20 33 20 11 23 17
Friended a brand on Facebook or MySpace 17 30 18 7 16 17
Used Facebook Places 16 15 20 10 16 17
Clicked on a digital ad/banner 15 11 19 10 17 13
Participated in a brand-sponsored contest or sweepstake online 12 11 12 14 14 11
Commented positively to others about a brand 12 22 11 8 13 12
Read a company or brand blog 11 13 11 8 8 13
Subscribed to or read an RSS feed from a company or brand 5 6 4 5 4 6
Commented negatively to others about a brand 4 13 1 2 2 6
Other (please specify) 3 6 3 3 5 1
Followed a brand on Twitter 3 7 3 0 3 3
Significantly less likely to do (95% confidence interval) Pulse rising
Significantly more likely to do (95% confidence interval)
Pulse falling
Pulse Check Autumn 2010 39

21. Q6 What are Australians buying online?
Total 14-25 years 26-55 years 56+ years Female Male Metro Regional
Clothing and footwear 25 33 28 13 30 19 24 26
Tickets to movies, concerts or shows 23 35 25 13 23 23 28 15
Travel Services 21 17 21 24 19 24 23 17
Books 20 19 23 15 22 17 18 23
Music 19 33 23 3 22 16 20 18
Computer equipment and supplies 18 7 19 24 12 26 17 21
Electrical applicances 16 9 17 17 7 25 14 19
Cosmetics 14 20 14 11 20 8 14 14
Games 13 15 17 6 14 13 13 14
Insurance 12 11 12 14 8 17 12 13
Wine, beer or spirits 11 2 11 16 4 18 13 6
Groceries 9 19 9 3 8 10 11 6
Movies & TV shows 8 15 9 1 9 7 7 10
Stationery 8 9 7 9 5 11 9 6
Fast food 8 9 10 3 6 10 9 7
Nutritional products 7 7 6 10 8 6 7 8
Applications 6 6 9 2 5 8 6 7
Newspapers & Magazines 5 9 3 7 5 6 5 6
Significantly less likely to buy (95% confidence interval)
Pulse rising
Significantly more likely to buy (95% confidence interval)
Pulse falling
Pulse Check Autumn 2010 41

22. No No
72% 72%
Pulse rising Pulse rising
No 72% Pulse falling
No 72% Pulse falling
Yes Yes
28% Yes 28% Pulse rising 28% Yes 28% Pulse rising
Pulse falling Pulse falling
Pulse rising
Pulse falling
Pulse Check Autumn 2010 43

23. 200 120 200
100
150 150
80
100
Number
100 60
Number
Number
40
50 50
20
0 0 0
14-25 25-65 56+ years NSW VIC QLD WA Other Female Male
years years & ACT
Regional Metro
Pulse Check Autumn 2010 45

24. For further information on:
Digital Pulse: digitalpulse@principals.com.au
Principals digital offer: tessa@principals.com.au
Any other enquiries: Tom Brigstocke
0418 447 094 | tom@principals.com.au
Office locations:
Sydney:
Level One 58 Lower Fort Street
Sydney NSW 2000 Australia
Melbourne:
1 Stewart Street
Windsor VIC 3181 Australia
www.principals.com.au