Modern society thrives on technology, and the advancement of technology.
Technology connects the consumer to the world at any given time, and the demands, even expectancies of the consumer are ever increasing.
Join me as we take a more in depth approach to understanding the technological demands of the consumer and how it affects their lives.
APM Welcome, APM North West Network Conference, Synergies Across Sectors
How consumers use technology & its impact on their lives
1. THE IMPACT OF TECHNOLOGY ON CONSUMER LIFE:
INTRODUCTION
Modern society thrives on technology, and the advancement of technology.
Technology connects the consumer to the world at any given time, and the demands, even expectancies of the consumer are ever increasing.
Join me as we take a more in depth approach to understanding the technological demands of the consumer and how it affects their lives.
2. ACCESS TO THE INTERNET
The internet as we know it today was conceived in March 1989 when Tim Berners-Lee circulated a proposal for “Mesh” (later to be known as the World Wide Web) to his management at CERN (Press, 2015). Originally conceived
and developed to meet the demand for automatic information-sharing between scientists around the world (for cern.com, n.d.), more than 4.1 billion users (statista.com) are now connected through one device or another.
In 1991, way back when Bryan Adams’ ‘Everything I do (I do it for you) topped the charts for a record breaking 16-weeks, dial-up connection internet speeds topped out at 56kbps (Wright, 2017), and people were fine with that. It
was perfectly normal for a 3-minute song to take up to half an hour to download, and if you wanted to download a movie you could be waiting a week, that’s just how it was. Fast forward 27 years and the very notion of having to
wait for a song to download, a connection so slow half the time only text would load would just seem unthinkable to the current generation. Here’s a brief history of how we went from no-speed to light-speed in the blink of an eye...
1991 1998 2001
The internet was first introduced and
with a download speed of 56Kbps a
3-minute song could take up to half an
hour to download and video streaming
was non-existent. Dial-up internet
required a phone line to operate so calls
couldn’t be made whle the internet was
in use.
1995 2000 2004
By 1995 there were 16 million global
internet users, which equated to 0.4% of
the world’s population.
The early 2000’s saw a breakthrough in
internet connectivity with the introduction
of broadband. Broadband networks
allowed the signal to be split between a
phone line and an internet line, meaning
calls could be made whilst connected to
the internet.
Broadband network also allowed people
to download at much faster speeds of up
to 512Kbps, which would pave the way
for a whole new world of online media.
2004 saw the launch of social
networking site Facebook. Conceived in
a Harvard University dorm room,
Facebook has become part of everyday
life for billions of people the world over.
The initial 1 million users per month
would turn into 6 million in just 12
months and 2.2 billion today which would
ultimately place more demand on faster
connectivity as users’ social activity and
demand for information grew.
Google opened it’s first office in
California with the intention “to organize
the world’s information and make it
universally accessible and useful.”
By August 2001, the global digital
population had reached 513 million,
equating to 8.6% of the population, a rise
of 2.7% in 12 months. As broadband
prices became more and more
affordable the demand for digital
information would increase
exponentially.
2005
By 2005 download speeds had hit
2Mbps which paved the way for global
video streaming following the
introduction of YouTube.
2007
2007 saw the smartphone boom. Apple
set the standards with the launch of the
iPhone, which was followed by Windows
and Android. Smartphones literally put
the internet in the palm of peoples hands
at any given time. The evolution of 3G
into 4G meant that users had a
download speed of upto 300Mbps. Over
the next decade the global digital
population would see an increase of over
262%.
2018
The global digital population now stands
at 4.1 billion users, 3.8 billion of those
accessing the internet via a mobile and
3.3 billion being active social media
users. The average global download
speed is 7.2Mbps
0.4%
4.1 b
HOW CONSUMERS USE
TECHNOLOGY & ITS IMPACT
ON THEIR LIVES
3. HOW CONSUMERS USE
TECHNOLOGY & ITS IMPACT
ON THEIR LIVES
4,156,932,140
7,634,758,428
As of the 1st January, 2018, the total number of internet users across the
world was
With the world’s total population estimated at
738,539,792
In China, the number of active internet users is
Google is the most popular
search engine with over
which is over double the entire population of the United States
55.3% of the world’s population is using the internet
(thenextscoop.com, 2018)
(websitehostingrating.com, 2018)
1.4 Tbps
In 2014, scientists in the UK created the fastest ever real-world internet
connection, using commercial-grade fibre optic lines to clock up speeds of
Believed to be the fastest speed test of its kind, it would allow users to
download 44 high-definition films in a single second and the entire
English version of Wikipedia would in just 0.006s.
(independent.co.uk, 2018)
58.9%
More people access the internet on a mobile device
than a desktop computer. In 2017, mobile internet
usage was
This is expected to rise to 61.2% in 2018
(websitehostingrating.com, 2018)
26.7 Mbps
South Korea averages the world’s
fastest download speed at
compared to 16.5 Mbps in the UK which ranks 31st in the world
(fastmetrics.com, 2018)
3.5 billionsearches every day
(thenextscoop.com, 2018)
Of North Americans use the internet,
which is the world’s highest
penetration rate
88.1%
(websitehostingrating.com, 2018)
4. DIGITAL DEVICES USED BY AUDIENCES
Statcounter.com found that as of July 2018, mobile and tablet devices accounted for 56.89% of internet access worldwide, whereas desktop devices accounted for 43.11%. The advancement in mobile and tablet technology means
it now more convenient than ever before to access the internet the internet using a hand-held device
52.95%
MOBILE TABLET DESKTOP
3.94%
43.11%
HOW CONSUMERS USE
TECHNOLOGY & ITS IMPACT
ON THEIR LIVES
5. HOW CONSUMERS USE
TECHNOLOGY & ITS IMPACT
ON THEIR LIVES
HOW CUSTOMERS SEARCH FOR INFORMATION
Though it started out as a platform for individuals to share photos of their friends and
family, social media has evolved to become much more impactful. Social media is now
a key component of organisations’ marketing strategies (Barker,2017). According to
Hubspot data 71% of consumers are more likely to make a purchase based on social
media referrals (Ewing,2017)
According to vividfish.com, 89% of customers begin their buying
process with a search engine (vividfish.com, 2017). As we have
already touched upon, mobile/tablet browsing has overtaken
desktop in recent years, meaning that more information than ever
before is at the touch of our fingertips.
Google is undoubtedly the most popular search engine with over 70% of
the search market share and capturing 85% of mobile traffic.
Additionally, recent changes to their algorithm aim to fulfil consumer
needs directly on Google without having to click any links. (Forsey,
2018). This makes it much easier to access key information from a
consumer point of view but more difficult from a business point of view
to capture the website traffic you want.
SEARCH MARKET SHARE
MOBILE TRAFFIC CAPTURE
89%
71%
70%
85%
6. I reached out to David Glenwright, Head of Training and Special Projects at JC Social Media Ltd to gather his insights as to how consumers search for information. Here is what he had to say:
- David Glenwright, JC Social Media
Innovations and developments in technology have had a remarkable effect on our natural thirst for
knowledge, and of course impatience. Smartphones and the ease with which we can access the
internet now means that arguments down the pub can be resolved with a 30 second Google search,
that directions can be found without the need to find someone who knows the answer, and we can
be kept up to speed with everything that is happening in the world with a moment's notice.
On the surface, this is a good thing. We have unprecedented access to knowledge, and thanks to
social media we are able to stay informed and know what is happening with our friends and family.
As a society we are connected in a way that was once unimaginable. However, at the same time we
find ourselves becoming increasingly separated from those around us. What was once a lively 10
minute discussion in a pub has now been relegated to a minute-long recital of fact. What was once an
opportunity to meet a local and discover a hidden gem of a restaurant is now a straight search and
directions for whichever place happens to top the search algorithms. What was once an exciting
afternoon catching up with a friend you haven't seen for 5 years is now a couple of hours reminding
each other of things already seen online.
To see what is now possible, and how easy it is for society to access is an incredibly exciting thing,
but it is important that it is always placed in the correct context. Smartphones and online searches
are not there to replace human interaction, but rather to enhance it. We should always strive to
engage with other people where possible, to enjoy our friendships face-to-face, not
face-to-Facebook. The abilities of our smartphones are incredibly powerful, and we should be mindful
that that comes with responsibilities to match.
HOW CONSUMERS USE
TECHNOLOGY & ITS IMPACT
ON THEIR LIVES
7. HOW CONSUMERS USE
TECHNOLOGY & ITS IMPACT
ON THEIR LIVES
In markets around the world categories such as travel, entertainment (books, music, events) and durable goods (fashion, IT/mobile, electronics) are the front runners for consumers to enter the online retail sphere. After
two decades of e-commerce retailing, these categories have higher online purchasing penetration and frequency of purchasing than most consumer goods categories. (nielsen.com,2018).
WHAT CONSUMERS BUY ONLINE
FASHION
TRAVEL
MUSIC & BOOKS
IT & MOBILE
EVENTS TICKETS
61%
59%
49%
47%
45%
8. HOW CONSUMERS USE
TECHNOLOGY & ITS IMPACT
ON THEIR LIVES
Every marketer has questioned when and how they should be using video in their projects and campaigns. While you’re still chewing over whether you should get on board, your competitors are producing how-to videos,
promo campaigns with video bloggers and using an animated header for their Facebook page. They know where the future is headed (Iakovleva, 2017)
ONLINE VIDEO CONSUMPTION
500,000,00
80%
People Watch Facebook videos every day
1/3Of the time people spend online is devoted to watching videos
In 2019 it is expected that 80% of all
internet traffic ill come from video
19% 90% 80%Mentioning the word ‘video’ in the subject of
your email increases the open rate by 19%
90% of customers ay that videos help make
buying decisions
Video on landing pages is capable of
increasing conversions by 80%
9. HOW CONSUMERS USE
TECHNOLOGY & ITS IMPACT
ON THEIR LIVES
Since the start of the smartphone boom in 2007 the internet has become more and more accessible year after year. The continuous
rise of social media usage means information is becoming ever more available to consumers. Internet access is now anywhere,
anytime thanks to the increasing affordability of smartphones, tablet devices and even wearables such as smart watches.
Marketers are taking advantage of this and online retail is taking more and more of the market share at the expense of traditional
brick-and-mortar stores. Consumers now have the ability to shop around more than ever before, using smartphones and tablet
devices they are able to quickly and easily compare products, shop around for the best deal and use social media to gather opinions
and reviews of other consumers.
Recent advancement in voice search technology has seen an increase in popularity for connected devices such as the Amazon Echo and
homeowners are investing more and more in smart home features making everyday living more automated than ever.
In short, technological advancement over the past few years has seen a significant rise in consumer convenience but comes at a
price. The high street is becoming ever more desolate, bricks-and-mortar stores closing on a weekly basis as they simply cannot
compete with the convenience of online shopping shopping. With the growth of social media, people have begun to act, think, and
purchase differently. The attention span of each person has been diminished to less than 8 seconds (Beall, 2017), and it i becoming
increasingly more important that businesses adapt their marketing mix accordingly.
CONSUMER TRENDS
10. HOW CONSUMERS USE
TECHNOLOGY & ITS IMPACT
ON THEIR LIVES
Technological advancement has led to the ‘I want it now’ culture. Since the launch of the first smartphone 12 years ago consumers have
become increasingly dependant on convenience. What used to be a trip into the nearest town to make a purchase is now a quick search from
the comfort of the consumer's home, or office, or wherever they they be, delivered to their door from as early as the next day.
Consumers demand personalised solutions from companies and they demand it now. How many times have you scrolled your favourite social
media platform in your lunch hour and been served an advert for a product you did a quick Google search for the previous night?
As a result, consumers are becoming more savvy when it comes to online retail, using platforms such as social media and review sites such
as tripadvisor to gather the opinion of other consumers before making a buying decision. Abandoned cart email marketing is a great tool for
businesses to increase conversion but the savviest of online shoppers are starting to take advantage of this. Just recently I personally
managed to save 10% on a TV purchased from a popular technology company, purely by getting to the point of checkout and closing my
browser knowing full well that in the coming days I would be receiving an email with offer tempting me over the line. I was always going to
buy the TV but after a few minutes of reading positive reviews to make sure the product fulfilled my requirements, and ensuring that I had
found the cheapest price, I knew I could better the price by making the retailer come to me.
The effect of technology on consumers lives is that of convenience and resourcefulness. Consumers can make an informed buying decision
based on research, reviews and peace of mind that they are buying at a competitive price. Wearables such as smart watches make it simple
for people to keep a track of their health and activity and smart home devices not only automate the home but make it easier to keep an eye
on the cost of living.
SUMMARY
11. REFERENCE LIST
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HOW CONSUMERS USE
TECHNOLOGY & ITS IMPACT
ON THEIR LIVES
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HOW CONSUMERS USE
TECHNOLOGY & ITS IMPACT
ON THEIR LIVES