infoTECH Feature

March 16, 2011

Tablet Devices Boost Sales of New Content, Reveals Survey

L.E.K. Consulting, a global management consulting firm, recently released a survey, Hidden Opportunities in New Media. According to the survey findings, the owners of iPads and other tablet devices are voraciously consuming all types of media and are significantly outpacing individuals who don't own these devices. Additional findings include why TV and select other media will stay strong, and how social media is reshaping commerce.

"Consumers' media choices are changing rapidly, and the surge in consumption by tablet owners has been dramatic," said Dan Schechter, VP and co-head of L.E.K. Consulting's global Media, Entertainment and Technology practice, in a statement. "It's a clear indication that people are hungry for the ease of use and value of short-form digital content, and there's a significant opportunity for both content creators and advertisers to feed this appetite for media with targeted offers."

The surge in online digital media consumption has several drivers, including the perception that  e-versions of content are lower-priced. For magazines, 29 percent percent of tablet owners reported increasing their consumption since last year, compared to only 4 percent of non-tablet owners. For newspapers, 26 percent of device owners cited increased consumption of print newspapers, compared to 6 percent of non-tablet owners. Tablet owners are also gaming three times more than non-tablet owners, and watching movies two-and-a-half times more.

"People who are highly active in social networks are more likely to engage with brands and be open to advertising offers in these communities," said Alex Evans, VP at L.E.K. Consulting. "When executed effectively, a social network ecosystem strategy can raise awareness and garner brand endorsements from vocal community members. This evangelism can create the kind of credibility that convinces consumers to make purchases."

L.E.K. identified a high correlation between these users' social network activity and its impact on sales. Of the respondents who logged in several times per day to Facebook (News - Alert), 57 percent reported "Liking" at least five brands. In this group, 25 percent of respondents reported social networks driving real-world purchases.

Free video content sites such as Hulu (News - Alert) and inexpensive video rental models like Netflix have raised fears that consumers will "cut the cord" on their pay TV providers and rely on these "Over-The-Top" (OTT) services instead. L.E.K. finds that many analysts are missing the real threat. Only 2 percent of consumers are completely unplugging their pay TV providers.

In another study, LEK Consulting provided insights into how trade promotion effectiveness can be optimized. 




Trupti Kamath is a contributing editor for TMCnet. To read more of her articles, please visit her columnist page.

Edited by Jennifer Russell
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