digital consumer study by google

Pakistan Digital Consumer Study A look at the life of the connected Pakistani consumer November 2013

Agenda

Research methodology

The digital consumer...

Spends more time online...

Does research before buying...

Is willing to buy online...

Gets influenced by ads

Reaching the digital consumer

Pakistan Digital Consumer Study A look at the life of the connected Pakistani consumer

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Research methodology

Research Methodology


Males & Females Aged 18 and above

WHO?

Users of internet (at least once a week)

• Q4 2013 • Fieldwork conducted in October-November 2013

WHEN?

WHERE? • Islamabad • Lahore • Karachi • Faisalabad

• Peshawar • Rawalpindi • Multan

HOW? • Online surveys • 1650 consumers surveyed • Length: 30-35 minutes

Survey Demographics


Gender

Age

71% Male

29% Female

28% 18-25 Years

33% 26-32 Years

33% 33-44 Years

6% 45+

Years Base: N (All respondents) =1650

Location

Islamabad (6%) Peshawar (1%)

Rawalpindi (6%) Faisalabad (4%)

Lahore (25%)

Multan (5%)

Karachi (42%)

Rest of Pakistan (11%)

Survey Demographics


Base: N (All respondents) = 1650

Education

Intermediate / diploma

31% Occupation

Household Income

University

58%

Matric or below

11%

44% Single 25%

Married without kids

Employed Full Time

Self Employed

Student

Employed Part Time

Unemployed / retired

Housewife

35%

25%

19%

11%

5%

More than 100,00 PKR

80,001 - 100,000 PKR

50,001 - 80,000 PKR

30,001 - 50,000 PKR

20,000 - 30,000 PKR

Up to 20,000 PKR

Av./month PKR

44,250

10%

8%

14%

26%

19%

23%

31% Married with kids

5%

The digital consumer..

High household ownership of personal computers (PCs) among online users. Mobile devices are gaining momentum among the online users.


Base: N (All respondents) = 1650

93% own a pc at home

45% own a

smartphone or tablet

12% have mobile as primary

device

Household Ownership

Primary Device

A1. How many do you or/and someone else own in your household? Which device is primarily used in the household?

76%

44%

68%

39%

41%

8%

30%

4%

PCs are the primary device for accessing the internet but mobile devices are gaining momentum


Base: Those who use devices to access internet (N) Smartphones=775; Tablets=588; Feature mobile phones=833

S5. How frequently do you use internet with one or some of these devices?

90% use PC to access the internet daily Base: Those who use devices to access internet (N)PCs = 1534;

66% use tablets

73% use feature phone

77% use smartphones

Social networking, email and search are the 3 most frequent online activities


Base: Those who use a PC or Smartphone to access internet N=1616

B6. Which of the following activities do you normally do online on daily or weekly basis for personal use?

Social Networking

(FB, Google+ etc.)

Email General Search

Streamed TV shows/movies

General News

Streamed music

Online education

Online banking

56% 52%

47%

35% 35% 29% 26%

23%

52% 47%

35% 35% 29% 26%

23%

Spends more time online..

Consumers spend more time on the internet than on any other type of media. It is also where they like to spend most of their personal time.


*Low base C1. On a typical day, which of the following activities do you normally do? And among these activities, which one do you like to spend most of your time on? B4/C2. On an average, how much time in total, would you say you spend daily........?

69%

59%

42%

25%

25%

6%

24%

7%

9%

2%

On a typical day..

Like to spend most time doing

Base: All Respondents (1650)

Weekdays

Weekends Base: All who like to spend

most of their time doing

Average time spent on...

2¼ hrs

3 hrs

1¾ hrs

2½ hrs

1½ hrs

2 hrs 2 hrs

2 hrs

2 hrs

969 411 98 111 31*

Use the internet

Watch TV

Read newspaper

Read magazines

Listen to radio

1¾ hrs

Does research before buying..

ZMOT is the critical indicator that reflects pre-shopping and information search, before making any purchase decision


Making the purchase

(online/offline)

Pre-‐shopping and information gathering

The post purchase experience

Online research is an essential part of the digital consumer’s decision to make purchase


Base: N (All respondents) =1650 D1. Choose the relevant sources of information you use for following activities.

Self / family/ friends

TV

Internet

Print

Radio

48%

45%

48%

11%

4%

24%

36%

64%

13%

26%

30%

67%

14%

3%

44%

29%

57%

15%

4% 4%

Stimulation Gather more information

Compare and evaluate

Buying decision

Digital consumers find online information resources more useful than offline. ZMOT indicates that the majority of digital consumers do product / services research before they decide to buy


D3a. When did you reach the decision on which product/service to buy? D2. Which of following products / services have you bought in last 2 months? Did you buy these online or offline? D3b. For reaching the decision on product/services, which information sources did you find more useful?

Base: All who purchased in P2M (online or offline) 447 186 325 537 195 309 390 175 363

Computers/ tablets

Mobile phones

Tele- communication

services

Travel Baby care products

Luxury goods

Beauty and personal care

products

Saving/ investment

products

Cars

The duration of ZMOT varies from few hours to few weeks before purchase

ZMOT

Online resources are more useful

66% 73% 68% 67% 60% 56% 52% 66% 61%

84% 76% 76% 73% 72% 72% 71% 70% 68%

Is willing to buy online..


D2. Which of following products / services have you bought in last 2 months? Did you buy these online or offline? D10. How frequently you shop on the Internet? D11. How much do you think is your average annual value of online shopping? D13. Why have you not purchased any of the products online?

* weighted average

Base: All Respondents (1650)

Products recently bought online

38% shop online at least

once a year

18% shop once a month

The average online shopper spends PKR 22,900 per year*

Products they consider buying in the future

Insurance

Mobile phones/ plans

Travel Movies/ event tickets

Luxury goods

Travel Apparel

Computers/ tablets

Mobile phones/ plans

Beauty

Portable electronics

Gets influenced by ads.

There is a high top of mind recall for online ads. 2 in 3 digital consumers did further research after seeing an online ad


recall seeing online ads for products they

researched

52% researched

further online

32% bought the

product

Base: Those who recall online ads (854) E1. Thinking of the products/services you researched online, do you recall seeing online advertisements for those product/services? E2: After seeing the online advertisements, what action did you take?

Action taken after seeing an online ad

16% researched

further offline

52%

Base: All respondents (1650)

Online ads stimulate further online research. Relevant and visually engaging ads are particularly impactful


E3: After seeing the online advertisements, what action did you take? E4. What typically makes you click on such ads?

50% Used a search engine

52% Clicked on the online ad

48% Visited the brand’s website

38% Visited product review sites

Those who researched further online

Base: Those who clicked on ads (231)

Triggers for ad clicks

Relevant to what I’m searching for

Relevant to my interests and hobbies

It looks entertaining!

Offers good deals or discounts

Base: Those who researched further online (442)



Our nation is a connected society. Internet users own and use more than one device to access the internet daily. Adoption of smartphones and tablets will further boost online activity

The internet is a catalyst for changing consumer behavior. It is extensively used by the digital consumer for researching products and services before buying. Online sources are seen as much more useful than offline

Online users find the internet engaging – they spend more time on the internet than any other media. 2 in 5 have shopped online and are willing to buy more in the future. Communication and entertainment are key online activities

Relevant and engaging ads stimulate and influence consumer buying behavior. 1 in 2 not only recall online ads but also act upon them. Half of them continue their online research

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