The Connected Consumer
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- Dale Hicks
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1 The Connected Consumer
2 The target market exceeds 100 M U.S. adults Connected Mainstreamers, 29% Connected Early Adopters, 9% Resistors, 40% Connection Prospects, 8% Non- Committals, 14% PROJECTED MILLIONS OF CONNECTED CONSUMERS Connected Early Adopters, 20 M Connected Mainstreamers, 65 M Connection Prospects, 18 M Non- Committals, 32 M Resistors, 90 M
3 Connected Early Adopters 31 % FEMALE 69 % ESP. MALE ESP. AGES (52%, vs. 15% avg) ESP. KIDS IN HOUSEHOLD (61%, vs. 31% avg) ESP. HOMEOWNER (77%, vs. 57% avg) PAY TV (vs. 74% avg)89 % HOUSEHOLD INCOME 75K+ (43% vs. 26% avg) (Less so <40K, 22% vs. 40% avg) TECH STATUS: Smart speakers 67% Game Console 82% vs 38% Pay TV customers 89% vs 74% Satellite 27% vs 20% telco 18% vs 12% Home security 69% vs 25% 3+ streaming services Live TV Weekly+ 91% vs 76% OnDemand 76% vs 38%
4 Connected Mainstreamers Connection Prospects 50 % FEMALE 50 % MALE ESP. AGES (40%, vs. 31% avg) 52 % FEMALE 48 % MALE ESP. AGES (46%, vs. 36% avg) ESP. KIDS IN HOUSEHOLD (40%, vs. 31% avg) ESP. HOMEOWNER (64%, vs. 57% avg) PAY TV79 % (vs. 74% avg) ESP. KIDS IN HOUSEHOLD (35%, vs. 31% avg) ESP. HOMEOWNER (52%, vs. 57x% avg) PAY TV 73 % (vs. 74% avg) HOUSEHOLD INCOME 100K+ (21% vs. 14% avg) (Less so <40K, 31% vs. 40% avg) TECH STATUS: Have smart home tech Smart speakers 47%, thermostat 32%, cameras 29%, garage door 27% Video game console 47% (vs. 38% avg) Smart TV 52% (vs. 40% avg) Home security 42% (vs. 25% avg) HOUSEHOLD INCOME 20-50K (40% vs. 31% avg) TECH STATUS: No smart home tech, but intend to buy it within 6 months (esp. speakers) Tablet users 65% (vs. 49% avg) Video game console 49% (vs. 38% avg) Less home phone 44% (vs. 54% avg) Less home security 14% (vs. 25% avg)
5 Non-Committals Resistors 54 % 54 % FEMALE FEMALE 46 % 46 % MALE MALE TYPICAL AGES TYPICAL AGES (51%, vs. (51%, 52% vs. avg) 52% avg) 56 % FEMALE 44 % MALE ESP. AGES 65+ (26%, vs. 17% avg) FEWER (19% vs. 31% avg) KIDS IN KIDS IN HOUSEHOLD HOUSEHOLD (27%, vs. (27%, vs. 31% avg) 31% avg) 68 % 68 % FEWER HOMEOWNERS FEWER (48%, vs. 57% PAY TV (48%, avg) vs. 57% avg) PAY TV HOMEOWNER MORE RENTERS (vs. 74% (vs. avg) 74% avg) More renters: (39%, vs. 32% avg) (39%, vs. 32% avg) FEWER KIDS IN HOUSEHOLD (19%, vs. 31% avg) HOMEOWNER (53%, vs. x57% avg) 71 % PAY TV (vs. 74% avg) HOUSEHOLD HOUSEHOLD INCOME INCOME <40K <40K TECH STATUS: TECH STATUS: No smart home tech nor intent to buy in 6 months, but are mid-range in (47% vs. (47% 40% avg) vs. 40% avg) intention for some connected home (Less so (Less <40K, so 22% <40K, vs. 22% 40% vs. avg) 40% avg) devices Near average ownership of other device types (laptop, smartphone, tablet, etc.) HOUSEHOLD INCOME <30K (36% vs. 29% avg) TECH STATUS: No smart home tech, and reject intention (1-3 on 10-pt scale on connected devices) Lower ownership of other devices: smartphone 68% (vs. 79% avg) tablet 37% (vs. 49% avg) smart TV 25% (vs. 40% avg)
6 Implications 1 2 The Connected Consumer Market is Large and Multi-faceted The recent rapid growth curve should be expected to continue 3 Caregivers remain a great target group for connected solutions 4 5 Pay TV and connected Natural convergence of the consumers go hand in hand connected solutions vertical and heavy video consumption 6 Smart speakers are likely to drive demand and voice has definite promise for TV content discovery 7 A provider who enables consumers first successful and simplistic smart solutions will earn trust, confidence, and delight 8 8 Strong emotional benefits help market connected solutions - but do vary by device category
7 1 8 The Connected Consumer Market is Large and Multi-faceted
8 Recent estimates show that Americans will, have an average of 50 connected devices in the home by The breadth of consumer connections is on the cusp of exponential growth.
9 2 8 The recent rapid growth curve should be expected to continue
10 27% of the respondents intend to buy (more) connected tech. SOON. INTEND TO PURCHASE IN THE NEXT 6 MONTHS: 16% Any Smart Speaker 17% Any Connected Smart Home Security device 23% Any Connected Smart Home Solution/device
11 3 8 Caregivers remain a great target group for connected solutions
12 Caregiving solutions is an increasing priority for connected consumers Caregiving is common for connected consumers and prospects, and caregivers have high intent to purchase smart home devices % Who are Caregivers, In or Out of Home Connected Early Adopters Connected Mainstreamers Connection Prospects Non-Committals Resistors 8% 11% 20% 16% 18% Intention for Purchasing Connected Home Device Types (by Caregiver status among Total Sample, owners and non-owners) Any Solutions intent Any Security intent Any Speaker intent Any Connected Home Intent 15% 21% 27% 14% 25% 36% 31% 44% Of Caregivers Of Noncaregivers
13 4 8 Pay TV and connected consumers go hand in hand
14 TV programmers have an enthusiastic audience in connected consumers TOP NETWORK DIFFERENCES HBO 17% ESPN2 Nickelodeon Disney Channel Comedy Central Showtime Cartoon Network 13% 13% 13% 12% 12% 12% Connected Early Adopters regularly watch vs. all others
15 5 8 Natural convergence of the connected solutions vertical and heavy video consumption
16 CONTENT DISCOVERY SOLUTIONS THAT IMPROVE THE EASE OF FINDING DESIRED CONTENT EASILY AND CONVENIENTLY, ESPECIALLY USING VOICE CONTROL, SHOW GREAT POTENTIAL Using personal digital assistants to find and discover desired and relevant video content shows strong promise Consumers brainstormed a variety of types of extras they d like to see, driven extensively by the flood of video content now available to viewers To have a device where you can say, Hey, I'm looking for Doris Day movies and it would talk to your Roku and Netflix and it would say, Hey this is on here and you could pick one and turn it on. It would be really cool because right now there's nothing. EA, 18-34, SF Like with the news, you could set it up with Alexa: Tell me the highlights today. EA, 18-34, Alexandria
17 6 8 Smart speakers are likely to drive demand and voice has definite promise for TV content discovery
18 Speaker owners use many TV functions Smart Speaker TV or Movie Content Functions Used Launch streaming apps Learn info on a movie or TV show Control basic TV functions Set TV reminders or alerts Pause, play, rewind, and fast forward Tune to a specific TV show, movie, or service Get recommendations Find out when a movie or TV episode will be available Pause on one TV or device, resume on another Find out new TV shows or movies added to On Demand 30% 31% 28% 29% 28% 27% 29% 27% 27% 28% 28% 25% 26% 24% 25% 25% 23% 25% 24% 23% Use occasionally Use regularly
19 7 8 A provider who enables consumers first successful and simplistic smart solutions will earn trust, confidence, and delight
20 Connecting to connected consumers can mean new business & engaged customers ACQUISITION RETENTION VIEWER ENGAGEMENT
21 8 8 Strong emotional benefits help market connected solutions - but do vary by device category
22 Speakers are big & growing, but they aren t the whole story. Own & Regularly Use 17% Connected home Security 27% Connected home solutions/ appliances 17% Voice-activated Speakers Surveillance cameras Door locks Window sensors 6% 9% 11% Thermostat Lighting Garage door openers Kitchen appliances Cleaning Electrical outlets and plugs 13% 12% 10% 9% 9% 8% Voice-activated speakers 17% Centralized hubs 4%
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