GfK Consumer Tracking
Research Online, Purchase Offline (ROPO) – Mobile & DSL
Media Efficiency Panel Project Research Online, Purchase Offline (ROPO)
March 2010
The role of the internet in the decision process for mobile & DSL GfK Panel Services
GfK Consumer Tracking
Research Online, Purchase Offline (ROPO) – Mobile & DSL
Agenda 1. Methodology and Objective
2. Results 3. Key Findings
March 2010
GfK Consumer Tracking
Research Online, Purchase Offline (ROPO) – Mobile & DSL
March 2010
Project Overview & Key Objective 3
The role of the internet in the decision process for mobile & DSL contracts Single Source Data Clickstream
Questionnaire
• Internet usage behaviour in private households in Germany
• Primary research among panelists of MEP
• Source: Media Efficiency Panel (MEP)
• Source: Media Efficiency Panel (MEP)
→ How does the research process looks like for consumers who sign a mobile or DSL contract online or offline?
GfK Consumer Tracking
Research Online, Purchase Offline (ROPO) – Mobile & DSL
March 2010
Research Elements 4
Clickstream –
Source: Media Efficiency Panel (MEP) by GfK, representative for online population
–
N= 16,022 panelists (with ongoing online measurement from July – Oct 2009)
–
Measurement of online behavior: – Panelists installed browser plug-in on all home PCs to capture individual traffic: Log-in screen when browser is launched. – Plug-in captures visits, page impressions, keywords & ad impressions/ clicks (display & search)
Questionnaire –
Survey (DSL & mobile & contracts) among panelists in cw 48/49 2009 (N= 23,887)
–
thereof 275 DSL-buyers and 801 mobile buyers with purchase from July – Oct 2009 and ongoing online measurement up to 12 weeks before purchase
4
19 October 2010
GfK Consumer Tracking
Research Online, Purchase Offline (ROPO) – Mobile & DSL
March 2010
Definition Online Research 5
–
Analysis of online research process is based on observational data
–
Definition Online Research: A consumer visited at least one relevant websites and/ or entered at least one relevant keyword at home
Research online
Search –
Basis: 3,625 search terms, defined by iProspect, Vodafone, Google and GfK
–
Exact, phrase & broad match to keywords that panelists entered
–
Manual review by Google team to delete wrong keywords (e.g. eplus: “netzabdeckung eplus” ok., “nikeplus” or “sofortrenteplus” excluded)
5
Website –
Basis: 554 websites, defined by project team
–
Whitelist included telecommunication only sites (e.g. eplus.de) as well as more general websites (e.g. amazon.de)
–
To exclude non-telco sub-domains site title of general websites were scanned with keyword list (e.g. exclude amazon.de/bücher) 19 October 2010
GfK Consumer Tracking
Research Online, Purchase Offline (ROPO) – Mobile & DSL
Agenda 1. Methodology and Objective
2. Results 3. Key Findings
March 2010
GfK Consumer Tracking
Research Online, Purchase Offline (ROPO) – Mobile & DSL
March 2010
Internet is main source of information in both product categories, mobile and broadband. Approx. 1 offline source is used. Base: mobile buyer, DSL buyer
7
Sources for Information Mobile Buyer
DSL Buyer 59%
internet*
28%
shop of the net operator
Requested information from operator
5%
called a net operator
5%
Ad in newspaper/ magazine
5%
Mailing from a net operator Radio/ TV
11%
article in newspaper/ magazine
8%
others in the same household
26%
friends/ relatives
9%
article in newspaper/ magazine
19%
shop of internet provider
18%
friends/ relatives
49%
internet*
others in the same household
Ø 1.5 sources
Requested information from provider
12%
called a internet provider
12%
Ad in newspaper/ magazine
4%
5%
7% 10%
Mailing from a net operator Radio/ TV
3%
5%
company/ employer
2%
company / employer
2%
sales staff of a net operator
1%
sales staff of a net operator
2%
0%
7
10%
20%
30%
Base: Mobile buyer, DSL buyer * “internet” is based on observational data, other sources based on survey data
40%
50%
60%
0%
Ø 1.6 sources
10%
19 October 2010
20%
30%
40%
50%
60%
GfK Consumer Tracking
Research Online, Purchase Offline (ROPO) – Mobile & DSL
March 2010
Approx. one third of internet users report that the contract was signed online. Base: mobile buyer, DSL buyer with internet access
8
Sales Channel
Mobile Contract online
DSL Contract online
31%
36%
69%
64%
offline
8
Base: Mobile buyer, DSL buyer with internet access at home
offline
19 October 2010
GfK Consumer Tracking
Research Online, Purchase Offline (ROPO) – Mobile & DSL
March 2010
31% of all contracts were made online. For another 37% consumers researched online first before signing the contract offline. Base: mobile buyer, DSL buyer with internet access
Research Online, Purchase Offline (ROPO) Research…
Purchase...
Mobile Buyer
9
Online
Offline
Online
22%
9%
31% online conversions: Todays basis for online marketing
Offline
37%
32%
59% of contracts: pure online conversions plus ROPO contracts are more appropriate basis to reflect the full value of online marketing
Mobile Buyers/DSL buyers, internet population, research up to 12 weeks before purchase, considering a 30-day-Black-out-Period
Please note. Consumers with at least one relevant website visit and/ or search query are assigned to “research online”
19 October 2010
9
GfK Consumer Tracking
Research Online, Purchase Offline (ROPO) – Mobile & DSL
March 2010
37% of mobile & 29% DSL buyers research online before buying offline; the internet is more impactful than the online sales suggest. Base: mobile buyer, DSL buyer with internet access
10
Research Online, Purchase Offline (ROPO) Research…
10
Online
Offline
Online
22%
9%
Offline
37%
32%
Mobile Buyers/DSL buyers, internet population, research up to 12 weeks before purchase, considering a 30-day-Black-out-Period
DSL Buyer
Purchase...
Purchase...
Mobile Buyer
Research…
Online
Offline
Online
20%
16%
Offline
29%
35%
Please note. Consumers with at least one relevant website visit and/ or search query are assigned to “research online”
19 October 2010
GfK Consumer Tracking
Research Online, Purchase Offline (ROPO) – Mobile & DSL
March 2010
Among post paid contracts the share of ROPO consumers is even higher. The ROPO segment is also the most valuable one (+16%). Base: mobile buyer, DSL buyer with internet access
11
Research Online, Purchase Offline (ROPO) Research…
11
Online
Offline
Online
26%
8%
Offline
41%
25%
Mobile Buyers/DSL buyers, internet population, research up to 12 weeks before purchase, considering a 30-day-Black-out-Period
Mobile Buyer Post paid - ARPU
Purchase...
Purchase...
Mobile Buyer Post paid - %
Research…
Online
Offline
Online
Index: 90
Index: 79
Offline
Index: 116
Index: 91
Please note. Consumers with at least one relevant website visit and/ or search query are assigned to “research online”
19 October 2010
GfK Consumer Tracking
Research Online, Purchase Offline (ROPO) – Mobile & DSL
March 2010
The average online research process takes approx. 6 weeks (same for mobile & DSL). Base: mobile buyer, DSL buyer with internet access
12
Online Research Process: Duration DSL Buyer
Mobile Buyer
Ø 44 days
41%
Ø 40 days
35%
19%
19%
1-2 weeks
3-4 weeks
12
22%
5-8 weeks 9-12 weeks
Mobile Buyers/DSL buyers, internet population, research up to 12 weeks before purchase, considering a 30-day-Black-out-Period
24% 18%
1-2 weeks
3-4 weeks
19 October 2010
22%
5-8 weeks 9-12 weeks
GfK Consumer Tracking
Research Online, Purchase Offline (ROPO) – Mobile & DSL
March 2010
Pure online decision process is slightly longer than process of consumers who research online and purchase offline. Base: mobile buyer, DSL buyer with internet access
13
Online Research Process: Duration DSL - Ø in days
Mobile - Ø in days 44
All buyers
13
48 42
ROPO
Mobile Buyers/DSL buyers, internet population, research up to 12 weeks before purchase, considering a 30-day-Black-out-Period
43
40
pure online
All buyers
38
ROPO
19 October 2010
pure online
GfK Consumer Tracking
Research Online, Purchase Offline (ROPO) – Mobile & DSL
March 2010
Approx. ½ of mobile and DSL consumers use a search engine in the decision process. Base: mobile buyer, DSL buyer with internet access
14
Online Research Process: Websites & Searches DSL Buyer
Mobile Buyer 59%
57% 49%
48%
31% 23%
Research online
14
Mobile Buyers/DSL buyers, internet population, research up to 12 weeks before purchase, considering a 30-day-Black-out-Period
Website visit
Search engine usage
19 October 2010
GfK Consumer Tracking
Research Online, Purchase Offline (ROPO) – Mobile & DSL
March 2010
Mobile buyers visited 4.2 websites, DSL buyers 3.2. Data for mobile confirms that decision is made based on price or hardware. Base: mobile buyer, DSL buyer with internet access
Ø number of unique domains visited
0
Mobile Buyer
Total visit a relevant website up to 12 weeks before purchase
1,3 2,6
Tarif
10%
18%
1,0
5+ 28% 4% 10%
16%
40%
23%
51%
1,3
3-4 25%
32%
1,0
Price Comparison
2
30%
Generic Hardware
1
29%
4,2
Brand
57,2%
number of unique domains visited
19%
10%
27%
50%
28%
52%
26%
16% 4% 7%
9% 10%
3%
DSL Buyer
0
Total
3,2
Brand
48,0%
15
visit a relevant website upto 12 weeks before purchase
1,5
Generic Hardware
1
37% 39%
26% 27%
2,1
3-4
21% 22%
21% 10%
36% 41%
10% 10%
0,9
2
47% 45% 45%
20% 18%
5+ 20% 18%
12% 6%
15% 15%
19% 9% 7% 9%
37% 37%
6% 11%
Price comparison
0,6
60% 60%
28% 28%
8% 2% 8%
Tarif
0,6
60% 60%
28% 28%
3%
Mobile Buyers/DSL buyers, internet population, research up to 12 weeks before purchase, considering a 30-day-Black-out-Period
19 October 2010
15
GfK Consumer Tracking
Research Online, Purchase Offline (ROPO) – Mobile & DSL
March 2010
Differences across segments are rather small concerning usage of (unique) websites. Base: mobile buyer, DSL buyer with internet access
16
Online Research Process: Websites DSL - Ø Websites
Mobile - Ø Websites
16
4,2
3,6
All buyers
ROPO
Mobile Buyers/DSL buyers, internet population, research up to 12 weeks before purchase, considering a 30-day-Black-out-Period
5,2
pure online
3,2
2,5
All buyers
ROPO
19 October 2010
4,2
pure online
GfK Consumer Tracking
Research Online, Purchase Offline (ROPO) – Mobile & DSL
March 2010
On average mobile buyers made 15.5 search queries while DSL buyers enter 7.8 search queries. Base: mobile buyer, DSL buyer with internet access
0
Mobile Buyer
Total Brand
31,0%
search for relevant keywords up to 12 weeks before purchase
15,5
1 13%
18%
8,0
Hardware 0,5
Tarif
0,4
3-4
16%
5+
53% 13% 7% 9% 13%
15% 11%
28%
18%
28%
11% 7%7%
46%
6,8
Price comparison
2
59%
2,1
Generic
17
number of search queries
Ø number of search queries
30% 2% 3%
91% 94%
2%
2%
DSL Buyer
Total
7,8
Brand
22,9%
search for relevant keywords up to 12 weeks before purchase
1
22%
16%
3,0
Generic Hardware
0
3,8
30%
0,3
Tarif
0,2
3-4
24%
46%
1,2
Price comparison
2
38%
29% 14% 11%
5+
19%
13%
5%
8%
25% 5% 6% 8% 6%
75% 84% 92%
2% 8% 5%
2%
17
Mobile Buyers/DSL buyers, internet population, research up to 12 weeks before purchase, considering a 30-day-Black-out-Period
19 October 2010
GfK Consumer Tracking
Research Online, Purchase Offline (ROPO) – Mobile & DSL
March 2010
Almost 50% of those who research online and purchase offline (ROPO) use a search engine during the decision process. Base: mobile buyer, DSL buyer with internet access
18
Online Research Process: Search Engine Usage DSL – Search Engine Usage
Mobile – Search Engine Usage 60% 47%
ROPO
18
45%
pure online
Mobile Buyers/DSL buyers, internet population, research up to 12 weeks before purchase, considering a 30-day-Black-out-Period
ROPO
19 October 2010
48%
pure online
GfK Consumer Tracking
Research Online, Purchase Offline (ROPO) – Mobile & DSL
March 2010
Users who research online & purchase offline enter a high number of queries during the process, esp. when researching for mobile. Base: mobile buyer, DSL buyer with search engine usage
19
Online Research Process: Search Queries
Mobile - Ø Queries
DSL - Ø Queries
19,9
12,1
11,5
4,9
ROPO
19
pure online
Mobile Buyers/DSL buyers, internet population, research up to 12 weeks before purchase, considering a 30-day-Black-out-Period
ROPO
19 October 2010
pure online
GfK Consumer Tracking
Research Online, Purchase Offline (ROPO) – Mobile & DSL
March 2010
Generic search terms dominate the research process. As DSL is less complex users start with generic search before entering brands. Base: mobile buyer, DSL buyer with search engine usage
20
Online Research Process: Search Queries DSL Buyer
Mobile Buyer %
% 100%
14%
9%
14%
brand
80%
100%
19% 80%
36%
39% 45%
60%
hardware
40%
14%
49%
49%
15%
17%
35%
34%
2nd third of process
3rd third of process
60%
40%
67% 50%
52%
20%
41%
0%
20%
0%
1st third of process
20
generic
2nd third of process
Mobile Buyers/DSL buyers, internet population, research up to 12 weeks before purchase, considering a 30-day-Black-out-Period
3rd third of process
1st third of process
19 October 2010
GfK Consumer Tracking
Research Online, Purchase Offline (ROPO) – Mobile & DSL
March 2010
For both products, mobile and DSL, online touchpoints dominate the research process - but media mix often is focused on offline media. 21
Touchpoints* Mobile Decision Process
(1.5 contacts per offline source, 4.2 online (=number of unique websites))
Touchpoints* DSL Decision Process
(1.5 contacts per offline source, 3.2 online (=number of unique websites)) internet
internet offline (e.g. call centre, shop, friend, TV, magazines etc.)
offline (e.g. call centre, shop, friends, TV, magazines etc.) search
search
21
* assumption: 1.5 contacts per offline touchpoints. Online. 4.2 (=# of unique websites)
19 October 2010
GfK Consumer Tracking
Research Online, Purchase Offline (ROPO) – Mobile & DSL
Agenda 1. Methodology and Objective
2. Results 3. Key Findings
March 2010
GfK Consumer Tracking
Research Online, Purchase Offline (ROPO) – Mobile & DSL
March 2010
Key question for today’s marketing mix: Is the media mix following the touchpoints in the consumer decision making process? 23
websites call centre
word of mouth
search engine
shop
active research for info
passive exposure to ATL media 23
sign mobile contract
GfK Consumer Tracking
Research Online, Purchase Offline (ROPO) – Mobile & DSL
March 2010
Key Results 24
While CPO for online marketing focuses on online conversions only, the ROPO effect suggests that offline effects of online media need to be considered as well: 37% of consumers who sign a mobile contract and 29% of DSL sign-ups have research online, before signing the contract offline. The online research process of the ROPO segment and the consumers who convert online is similar. The intensity of the research process (duration, websites visited, search queries) is higher for online buyers - but the internet is the most important information source for ROPO consumers as well.
With a net reach of 31% resp. 23% search engines are among the leading websites within the decision process for telecommunication products. For both products, mobile and DSL, generic keywords play an important role. During the research process for broadband access users are starting with a generic term and enter branded queries rather at the end. Due to the intense online research process by online and offline (ROPO) buyers the majority of brand touchpoints are online. In order to follow the consumer journey advertisers should therefore carefully review their media strategy which is often very offline centric.
GfK Consumer Tracking
Research Online, Purchase Offline (ROPO) – Mobile & DSL
Thank You!
March 2010
GfK Consumer Tracking
Research Online, Purchase Offline (ROPO) – Mobile & DSL
Your contacts at GfK: Karlheinz Seidl Senior Specialist +49 911 395-31 41
[email protected] Dr. Christoph Tillmanns Research Manager +49 911 395-21 21
[email protected]
March 2010