the future of market research in the world of connected data

“The Future of Market Research In a World of Connected Data”Justin Wheeler, VP Product

© 2016 Survey Sampling International

Key Consumer Trends Driving Revolution in MR


1. Consumers Are Radically Connected

2. Demographic & Behavioral Shifts Occurring Rapidly

3. Media Mobility

4. Peak Social

5. Peak Retail

6. Peak Accumulation

Consumers Are Radically Connected


Trends – Radical Connection


Receipt Upload Confirmed Visits: 1 Day


Trends – Demographic Shift Toward Gen Z


76

6678

81

Population in Millions

BB Gen X Gen Y Gen Z

As of 2016, Gen Z has become the largest audience cohort (born 1996-97 to 2015)

Trends – Move Toward “Media In Hand”


58%

Gen Z

39%

Gen Y

26%

Gen X

* Source = Nielsen Total Audience Report®

% of daily media consumption hours by Smartphone or Tablet

Trends – High Leverage = Less Discretionary Income


• Gen Z projected to enter the job market with nearly 4x of the debt of BB did 40 years ago (inflation adjusted)

• Projected to have 33% less discretionary income than Gen X did during first 5 years in the workforce

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Gen Z Gen Y Gen X BB

Debt on first day of first job

Avg Debt 1st Year Workers

Source: Atlanta Federal Reserve, 2015 (inflation adjusted)

Trends – Example Peak Retail


• Total US Retail B&M Sales Down 18% from 2013 (inflation adjusted)

• US B&M Retailers Posted collective $578MM Loss in Q1

• $47.5 B in loans against US Retail collateral due in 2017, 31% non-performing*

• 41% of Gen Z have never purchased anything at a shopping mall

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2013 2014 2105 2106

US Brick & Mortar Sales – Billions*

Malls Mass Merch Apparel

Linear (Malls) Linear (Mass Merch) Linear (Apparel)

* 2016 Projected, Source: Forbes & BISNOW.com & SSI® Note: Inflation Adjusted

Trends – Peak Social


• Gen Z = Video, Video, Video

• Facebook is the #1 Video Site (2x daily video views over YouTube)

• Total FB Users Declined by 4% YoY (2014-2015)

• Total FB Hours per Member Declined by 14% YoY (2014-2015)

0% 10% 20% 30% 40% 50% 60%

Gen Z

Gen Y

Gen X

BB

% Cohort Logging on at Least Daily

Snapchat Pinterest Twitter Instagram Facebook YouTube

Source: SSI®

Trends – We Are Living In A Video World


Trends – Email Dying, Are You Ready For It?


• Gen X Retail Marketing relies heavily on email

• 85% of retailers report relying heavily/somewhat on email marketing

• Millennials less likely to open/read emails

• As Gen Z comes of age, email likely won’t be an effective marketing strategy for that cohort

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Gen Z Gen Y Gen X BB

Emails Sent/Received Daily

Total Daily Emails

Source: eMarketer, Jan 2016

Trends – Positive Attitude About Real-Time Proximity Ads


48%

Gen Z

31%

Gen Y

22%

Gen X

* Source = SSI®

% of Cohort Identifying Proximity-based Mobile Ads as “Helpful” vs

“Intrusive”

Trends – Behavior Changes


99%

92%

88%

78%

18%

0% 20% 40% 60% 80% 100% 120%

Written a Check

Boiled an Egg

Grilled a Steak

Walked Into a Bank

Driven a Car

“Never” Events

Gen Z Gen Y Gen X

* Source = SSI®. Gen Z = 18-22 year olds surveyed

Trends – Behavior Changes


31%

5%

66%

14%

20%

0% 10% 20% 30% 40% 50% 60% 70%

Purchase a Car

Purchase a Home

Go On a Vacation Outside the US

Have/Adopt a Child

Get/Be Married

Next 10 Years “Definitely” Events

Gen Z Gen Y Gen X

* Source = SSI®. Gen Z = 18-22 year olds surveyed

5 Year Implications of These Trends


1. Less foot-traffic to stores, less discretionary income available

2. Retail Experience will be key to capturing and keeping customers, both online and for brick & mortar stores

3. Email Marketing likely to decrease in effectiveness, especially among 18-25 year olds

4. More and more media hours will shift to handheld/mobile devices & video

5. Mobile / Proximity advertising likely to increase in acceptance & effectiveness especially among 18-25 year olds

Overview of Implications to Research


1. ~70%+ of “online” surveys will be taken on Mobile Devices by 2020

2. Avg Length of Surveys will be <10 Minutes by 2020, so more data will have to come through behavioral rather than response

3. Deep access to data for same consumers will be vital for market researchers to understand customers…but it is available!

4. Consumer responses will shift to images/video both for online reviews & surveys

5. Media consumption & communication will shift to smaller screens, shorter engagements. Video/ Vlogs vs Articles/Blogs

Ideal Solution – Mobile & In Context


Permissioned, App-based Mobile enables Location Tracking, Rich Media Responses and Device Metering

$10,000 Mobile Research Contest at Booth #110
