Internet Access & Shopping Report Apr 10

The British Population Survey

INTERNET ACCESS AND

ONLINE SHOPPING

PARTICIPATION REPORT

APRIL 2010

REPORT PRODUCED BY

THE BRITISH POPULATION SURVEY

WORKING IN PARTNERSHIP WITH

IMRG

© APRIL 2010 The British Population Survey (DataTalk Research Ltd). 2 of 14

INTRODUCTION The internet as an economic force came of age in the recession of 2008 – 2010. The importance of the internet to the daily lives of hard pressed consumers, of all age groups, has become deeper and more valued. Today they search out and find new and innovative ways to make their pounds go further, they look for jobs and access the increasing number of government services now available online. The internet has become a key life management tool for the UK consumer. Growth has been slower but always positive across the ecommerce sector. This has provided a vital commercial buffer for many retailers, their shareholders and their employees. Early 2010 research figures from the IMRG show that ecommerce growth has again accelerated into double digits and that close to 80% of ecommerce retailers look to increase their staffing levels in the next 3 – 9 months.

CONTENT This report studies the two main aspects of the population in relation to the use of the Internet for purchasing goods and services -

Who has access to the Internet Who uses the Internet for Online Shopping.

The purpose of the Report is to provide a detailed view of the current population of Internet Shoppers – Who they are; What identifies them amongst the population as a whole; How their numbers have progressed over the last two years; What are the differences between those who shop for Groceries and those who shop for all other goods and services. The trend charts are based on the period from January 2008 to March 2010, and are constructed as three month rolling averages, each data point being the average figure for the three months to that point. The number of face to face Interviews conducted during this period is 189,319, at an average of over 21,000 interviews per three month period. The profile charts are primarily based on the first quarter of 2010 - January to March inclusive – based on 20,099 face to face interviews. Where comparisons are made to previous ‘first quarters’, the interview totals are 2008 18,394, and 2009 20,500 interviews. The report is structured into four main sections as shown below, together with a fifth section detailing the background and methodology of the Research upon which the report is based.

SECTION 1 TRENDS IN INTERNET ACCESS, ONLINE SHOPPING AND COMPUTER OWNERSHIP

SECTION 2 INTERNET ACCESS

Chart Group 1 Frequency, Type, Method and History, Q1 Comparisons 2008, 2009, 2010 Chart Group 2 Demographic Profiles Comparison to Population Chart Group 3 Profile Comparisons Q1 2008, 2009, 2010

SECTION 3 ONLINE SHOPPING

Chart Group 1 Access Frequency, Type, Method and History comparison of Online Shoppers / All Access Chart Group 2 Demographic Profile Comparisons Online Shoppers to Population Chart Group 3 Demographic Profiles Comparisons Q1 2008, 2009, 2010 Chart Group 4 Demographic Profile Comparisons Online Grocery Shoppers to Other Online Shoppers Chart Group 5 Comparison of Other Internet Uses by Online Shoppers to All Users

SECTION 4 CONCLUSIONS SECTION 5 METHODOLOGY AND BACKGROUND


SECTION 1 TRENDS IN INTERNET ACCESS, ONLINE SHOPPING AND COMPUTER OWNERSHIP The trend charts in this section are based on three month rolling averages, using Interviews conducted from January 2008 to March 2010 inclusive. The total number of interviews on which they are based is therefore 189,319 during the period, an average of over 7,000 interviews per month. There can be no doubt that the most important fact emerging from the longer term trend charts is that in the first quarter of 2010 the percentage of the Adult Population of Great Britain that has actually engaged in Internet Shopping during the last three months has exceeded 50% for the first time. By December 2009 the figure had grown to an historic peak of 48.74%, but by March 2010 it has now risen further to a new high of 51.07%. This comes on the back of an increase in those who have access to the Internet, which has grown from 73.92% in December 2009 to 75.99% in March. It is also important in the long term growth of Online Shopping to note the narrowing in the gap between those who Search for Product Information Online and those who actually purchase. In March 2008, the ratio was 17 Shoppers to every 20 Searchers, and by March 2010 this has become 18 to every 20.

ONLINE SEARCH + SHOPPING

2008 - 2010

30

40

50

60

70

80

Mar A

prMay Ju

nJulAugSep O

ctNovDec Ja

nFebMar A

prMay Ju

nJulAugSep O

ctNovDec Ja

nFebMar

% O

F P

OP

ULA

TIO

N

ONLINE SEARCH ONLINE SHOPPING ACCESS

Source - BPS

IMRG Report April 2010


Online Grocery Shopping continues its recent upward trend, but has still not yet breached the 15% mark. Other Shopping is also at another all-time high, and at 49.40% in March it can only be a very short time until it breaches the 50% mark. Although the chart might not immediately draw one to the conclusion, Grocery Shopping has grown 50% faster over the last two years than Other Shopping, Grocery Shopping showing a growth of 29% over its March 2008 level, while Other Shopping has shown an 18% rise over the period.

ONLINE SHOPPING

GROCERY / OTHER

0

5

10

15

20

25

30

35

40

45

50

Mar Ap

rMay Ju

nJulAugSep O

ctNovDec Ja

nFebMar Ap

rMay Ju

nJulAugSep O

ctNovDec Ja

nFebMar

% O

F P

OPU

LA

TIO

N

OTHER GROCERY

Source - BPS


The growth in Internet Access from 67.94% in March 2008 to 75.99% in March 2010 has parallels with the growth of Computer Ownership during the same period. 78.54% now have a home computer in their household, compared with 70.43% two years ago, whilst Laptops have shown a remarkable growth over the two years, from 34.15% in March 2008 to 53.03% in March 2010. This latter growth represents an increase in ownership of 55% in just two years.

COMPUTER OWNERSHIP

30

40

50

60

70

80

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

% O

F P

OP

ULA

TIO

N

PERSONAL COMPUTER LAPTOP

Source - BPS



SECTION 2 INTERNET ACCESS - Frequency, Type, Method and History, Q1 Comparisons 2008, 2009, 2010 The Profile charts in this section are based on the Interviews conducted during the months of January, February and March in each of the last three years. The Interview totals are 2008 – 18,394, 2009 – 20,500 and 2010 – 20,099. The charts show the changes in profile over the period for each of the topics. Frequency of access of the Internet over the last two years is characterised by a distinct shift towards greater frequency. This is clearest at the most frequent, with 57% of all those with access now accessing the Internet more than once a day, up from 48% two years ago. Whilst this could be seen as a natural progression with increased familiarity with the medium, when it is analysed in conjunction with the history of access figures later it becomes more likely that this is a direct result of the increased access to much faster download speeds, meaning each period of access becomes more productive. These figures also clearly show that accessing the Internet is also becoming an integral part of everyday living. The only real change observed in Access Type is the growth in Cable access, up from 27% of All with Access in 2008 to 32% in 2010. ADSL has seen a corresponding marginal reduction of 2% from 60% to 58%. However with the growth in the overall number of people with access over the period, ADSL, Other Broadband and Non Broadband have seen growth in the actual numbers of customers. Methods of Access continue to grow across the board, as consumers increasingly find their methods of accessing proliferating. Over the past two years the largest growth has come in Mobile Devices, up from 4% in 2008 to 13% in 2010. This can almost certainly be attributed to the phenomenal growth in the ability to use the new generation of mobile phones to access the internet through roaming facilities. Even so, this has not resulted in an adverse effect on facilities like Internet Cafes, which have nevertheless shown a growth in use of 21% over the period, from 5.79% to 7.03%. With over 60% of all who have access to the Internet showing a track record of over 6 years, and over 90% having had access for more than a year, there is a clear indication that these rises are not solely a demonstration of familiarity leading to increased use over time. If so, they would have been evidenced in previous years. It is more likely to be the result of a combination of factors. Enhanced Download Speeds, Mobile Access, and affordable home technology will undoubtedly have played their part. However it could well be that the increase in promotion of online services, the inclusion of a website address in almost every advert, and crucially the web presences of familiar and trusted household names from the High Street, have played an important part in the progress.

INTERNET ACCESS - FREQUENCY

0

10

20

30

40

50

60

> ONCE

A DAY

ONCE A

DAY

4/5 A

WEEK

2/3 A

WEEK

1 A

WEEK

2/3 A

MONTH

1 A

MONTH

< 1 A

MONTH

% OF ALL WITH ACCESS

Q1 '08 Q1 '09 Q1 '10Source - BPS


INTERNET ACCESS - TYPE

0

10

20

30

40

50

60

70

CABLE

BROADBAND

ADSL BROADBAND OTHER

BROADBAND

NON BROADBAND


Q1 '08 Q1 '09 Q1 '10Source - BPS


INTERNET ACCESS - METHOD

0

10

20

30

40

50

60

70

80

90

100

PC HOME PC WORK /

UNI /

SCHOOL

INTERNET

CAFE, ETC

MOBILE

DEVICE

TV SET GAMES

CONSOLE


Q1 '08 Q1 '09 Q1 '10Source - BPS


INTERNET ACCESS - HISTORY

0

10

20

30

40

50

60

70

< 3 MONTHS

3 - 6 MONTHS

6 - 12 MONTHS

1 - 2 YEARS

2 - 3 YEARS

3 - 4 YEARS

4 - 5 YEARS

5 - 6 YEARS

> 6 YEARS


Source - BPS



INTERNET ACCESS – Demographic Profiles Comparison to Population The Charts in this section are based on Quarter 1 2010, and are the results of 20,099 interviews conducted during this period. They show the profile of All with Access to the Internet in side by side comparison with the profile of the Adult Population. As a result, they provide an instant picture of the strength of penetration of the Internet in the various sectors.

Men are marginally more likely to have access to the internet than women, representing 50.5% of Access as opposed to 48.5% of the population. Those with families are the most overweight lifestage, representing 38.5% of Access as against 32.7% of the Population. The lack of Access in the Post Family group results in the other lifestages showing as slightly overweight. This will largely be driven by the data demonstrated in the next chart.

With over 75% of the adult Population having Access to the Internet the differences in the profile of those with Access will inevitably start to become more obscured. At first glance the profiles are therefore very similar in pattern, but the underweight Access in the Over 65 age group, (not in the slightest unexpected in its own right) should not be allowed to deflect attention form the fact that almost a quarter of those with Internet Access are over 55, and over 40% are aged over 45 years. The under 35 age group, often characterised as the vanguard of early adopters in the high-tec fields, whilst being overweight in each sub-group actually represent only 37% of the total of Internet Access. There is nothing much to be surprised about in this chart, with the penetration of the various Socio-economic groups largely falling in line with intuitive expectation. It is nevertheless important to include the data, if for no other reason than to confirm that expected range of penetration, rather than leave any doubt. The regional profile perfectly demonstrates that there is virtually no regional bias at all. If all figures are rounded to the nearest whole number percentage, the only regions that show a difference are South East, where the actual difference is 1.06% Access overweight, and Scotland, where the difference is 0.59% Access underweight.

ACCESS PENETRATION - Q1 2010

GENDER & LIFESTAGE

0

10

20

30

40

50

60

MALE FEMALE SINGLE PRE

FAMILY

FAMILY POST

FAMILY

% OF LEGEND GROUP

INTERNET ACCESS POPULATIONSource - BPS



AGE GROUPS

0

5

10

15

20

25

15 - 17 18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65+

% OF LEGEND GROUP




SOCIAL GRADE

0

5

10

15

20

25

30

35

A B C1 C2 D E

% OF LEGEND GROUP




REGIONS

0

5

10

15

20

25

NORTH

NORTH WEST

YORKS & HUMBERSIDE

WEST MIDLANDS

EAST MIDLANDS

EAST ANGLIA

SOUTH WEST

SOUTH EAST

GREATER LONDON

WALES

SCOTLAND

% OF LEGEND GROUP




INTERNET ACCESS – Profile Comparisons Quarter 1 2008, 2009, 2010 The charts in this section compare the Demographic profiles of Internet Access for the First Quarters of 2008, 2009 and 2010, to show the changes happening over the last two years. The interview numbers in each case are :- 2008 – 18,934, 2009 – 20,500, 2010 – 20,099. The changes are subtle, but the understanding of the make-up of the potential market is only enhanced by recognising and appreciating those changes over time. Gender equality in Access is fast approaching, with the difference down by 2010 to only 1%, Males representing 50.5% and Females 49.5%. In Lifestages the growth has been in the Family and Post Family groups, with marginal increases by 0.57% and 0.87% respectively.

Across the Age groups the growth is again occurring across the 55 to 64 and Over 65 groups, with compensating reductions across the younger groups. It is perhaps a natural progression of this perspective to see growth patterns of this nature - a simple expectation, as the population naturally progresses though the groups, to see a fairly constant increase in the penetration across the older age groups for a considerable period of time to come. However, penetration of the older age groups is still a dynamic force. If we ignore the 2 year progression, we see that the 67+ age group in March 2008 showed 26.96% with Internet Access, but by 2010, the 69+ age group (the same cohort 2 years older) now show 33.45% with Internet Access – a quite remarkable increase of a quarter in just 2 years. The gentle increase in the percentage of people with Internet Access in the C2, D and E groups is compensated by the percentage decrease in the B and C1 groups, even though these do not represent drops in actual numbers. The increasing ease of access through more economically viable channels, and the creation of access through service ‘bundles’, is inevitably creating a more naturally enfranchising environment for the groups with less disposable income. The increasing weight of these groups within the profile is therefore likely to continue until all groups are more evenly weighted against the population profile.

There are no particular changes being evidenced across the Regions, other than the marginal effects of the general increase in Access. It may be that some of the changes, such as the slight increase in weighting of the North West, could be put down to a side-effect of the Digital TV switch over encouraging consumers to adopt premium services which include bundled Internet Access. However this cannot be verified by the research.

INTERNET ACCESS PROFILE

GENDER & LIFESTAGE

0

10

20

30

40

50

60


FAMILY

FAMILY POST

FAMILY


Q1 '08 Q1 '09 Q1 '10Source - BPS



AGE GROUPS

0

5

10

15

20

25

15 - 17 18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65+


Q1 '08 Q1 '09 Q1 '10Source - BPS



SOCIAL GRADE

0

5

10

15

20

25

30

35

A B C1 C2 D E


Q1 '08 Q1 '09 Q1 '10Source - BPS



REGIONS

0

5

10

15

20

25

NORTH

NORTH WEST

YORKS & HUMBERSIDE

WEST MIDLANDS

EAST MIDLANDS

EAST ANGLIA

SOUTH WEST

SOUTH EAST

GREATER LONDON

WALES

SCOTLAND


Q1 '08 Q1 '09 Q1 '10Source - BPS



SECTION 3 ONLINE SHOPPING - Access Comparison of Online Shoppers to All With Internet Access The charts in this section of the report are again based on the Interviews conducted during the first quarter of 2010 (total 20,099). Their purpose is to begin to identify characteristic differences of Online Shoppers compared to All With Access, in order to provide information to assist in the acquisition of new customers for online retailers. The immediate result of this first chart is to demonstrate the direct correlation between frequency of engagement and Online Shopping. It would be wrong to regard this as being purely cause and effect because, as we shall see in a later section, the really frequent Internet Users are more likely to be using the Internet for Emails and Information on Hobbies and Interests. Therefore this becomes a significant market identifier. 63.23% of Online Shoppers have ADSL Broadband Access, compared to 58.27% of All With Access, whilst the comparison reverses with Cable Broadband where 32.36% have that type of Access but they only contribute 31.19% of Online Shoppers. However it is a straightforward fact that ADSL and Cable Broadband Access between them account for almost 95% of the Online Shopping marketplace. This chart ably demonstrates a phenomenon that can easily confuse, as in every case Online Shoppers show a higher percentage than All With Access. This effect can be caused when one of the questions under analysis allows for more than one answer – in this case Methods of Access. On average, All With Access to the Internet have 1.6 Methods of Access, whilst Online Shoppers have an average of 1.73 Methods of Access - again demonstrating the familiarity aspect. It would be easy to see Mobile Device as of growing importance from this profile, but looking deeper only 4.67% of Mobile Device owners have no other method of access. The research shows the actual Methods that people possess, it does not show which method they actually use to effect their transactions.

68.71% of Online Shoppers have been accessing the Internet for longer than 6 years, as compared to only 60.82% of All With Access. This is a further demonstration of the effect of long term engagement and familiarity with the medium being a powerful indicator of the likelihood of an individual becoming an Online Shopper.

COMPARISON Q1 2010

ACCESS V SHOPPER - ACCESS FREQUENCY

0

10

20

30

40

50

60

70

> ONCE

A DAY

ONCE A

DAY

4/5 A

WEEK

2/3 A

WEEK

1 A

WEEK

2/3 A

MONTH

1 A

MONTH

< 1 A

MONTH

% OF LEGEND GROUP

INTERNET ACCESS ONLINE SHOPPINGSource - BPS


COMPARISON Q1 2010

ACCESS V SHOPPER - ACCESS TYPE

0

10

20

30

40

50

60

70

CABLE

BROADBAND

ADSL BROADBAND OTHER

BROADBAND

NON BROADBAND

% OF LEGEND GROUP



COMPARISON Q1 2010

ACCESS V SHOPPER - ACCESS METHOD

0

10

20

30

40

50

60

70

80

90

100

PC HOME PC WORK /

UNI /

SCHOOL

INTERNET

CAFE, ETC

MOBILE

DEVICE

TV SET GAMES

CONSOLE

% OF LEGEND GROUP



COMPARISON Q1 2010

ACCESS V SHOPPER - ACCESS HISTORY

0

10

20

30

40

50

60

70

80

< 3 MONTHS

3 - 6 MONTHS

6 - 12 MONTHS

1 - 2 YEARS

2 - 3 YEARS

3 - 4 YEARS

4 - 5 YEARS

5 - 6 YEARS

> 6 YEARS

% OF LEGEND GROUP




ONLINE SHOPPING - Demographic Profile Comparisons Online Shoppers to Population This section continues to study the identifying characteristics of the Online Shopper, by providing Demographic Profiles of Online Shoppers, and combining these with a comparison with the profiles of the Adult Population. The charts are based on the first quarter of 2010, utilising the results of 20,099 interviews. Males are slightly more likely to be Online Shoppers than Females, representing 50.22% of Shoppers, but only 48.52% of the Adult Population. Lifestage penetration is dominated by the underweight representation of the Post Family group, where they represent 47.2% of the Adult Population but only 37.03% of Online Shoppers. However this should not obscure the fact that even though they may be an underweight sector, they still represent a far larger proportion of Online Shoppers then Single and Pre Family combined.

The main differentials here are the overweight representation of the 35-44 Age Group in Online Shoppers, at 23.2% against 18.2%, and the underweight representation of the Over 65 Age Group at 8.64% against 19.61%. The strength of Online Shopping clearly lies around the central three groups, with them together representing 60.94% of Online Shoppers, compared to 49.84% of the Adult Population. It can only be regarded as ‘intuitively natural’ to see this demonstration of the ABC1 sector being universally overweight in Online Shopping, and the C2DE sector being universally underweight. However it can be useful to see the facts quantified, because even though the C2DE sector may be underweight, it still represents almost 32% of the Online Shopping market. The ‘underweight factor’ here should be viewed as a measure of potential, rather than a measure of shortfall. To an extent this chart is heavily influenced by the Regional Access data seen in Section 2, but this does not account for the strongest differentials shown here. Perhaps the most striking comparisons here can be seen between the South East, where Online Shoppers contribute 23.36% of the total market against 19.53% of the Population, and Greater London where the weights are reversed to show 9.98% of Online Shoppers but 12.80% of the Population.

ONLINE SHOPPING PENETRATION - Q1 2010

GENDER & LIFESTAGE

0

10

20

30

40

50

60


FAMILY

FAMILY POST

FAMILY

% OF LEGEND GROUP

ONLINE SHOPPERS POPULATIONSource - BPS



AGE GROUPS

0

5

10

15

20

25

15 - 17 18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65+

% OF LEGEND GROUP




SOCIAL GRADE

0

5

10

15

20

25

30

35

A B C1 C2 D E

% OF LEGEND GROUP




REGIONS

0

5

10

15

20

25

NORTH

NORTH WEST

YORKS & HUMBERSIDE

WEST MIDLANDS

EAST MIDLANDS

EAST ANGLIA

SOUTH WEST

SOUTH EAST

GREATER LONDON

WALES

SCOTLAND

% OF LEGEND GROUP




ONLINE SHOPPING - Demographic Profiles Comparisons Q1 2008, 2009, 2010 The following set of charts show the changes to the Demographic Profiles of Online Shoppers over the last two years, by comparing the first quarter figures for 2008 (18,394 interviews), 2009 (20,500 interviews) and 2010 (20,099 interviews). They provide further context to enhance the analysis of the previous section. It is also helpful to bear in mind the overall increase in Online Shoppers from 43.42% of the Population in March 2008, to 51.07% in March 2010, which will mean that a reduction in the contribution of a category to an overall profile will not necessarily translate into a drop in actual numbers of Online Shoppers in that category. As these charts have been provided for context, alongside the previous section, they do not require particular commentary. However, as this has never stopped us commenting before, there are two interesting findings from these charts. The first is that the increases in Lifestage and Age Groups are appearing over this period in Post Family, and in the 55-64 and 65+ Age Groups. The second is that there is a defined growth in the C2, D and E Social Grades. This accelerated penetration of the older Age Groups, and the lower Social Grades, if continued, may prove to be a key area of growth over the next year.

ONLINE SHOPPER PROFILE

GENDER & LIFESTAGE

0

10

20

30

40

50

60


FAMILY

FAMILY POST

FAMILY

% OF ONLINE SHOPPERS

Q1 '08 Q1 '09 Q1 '10Source - BPS

IMRG Report April

2010


AGE GROUPS

0

5

10

15

20

25

30

15 - 17 18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65+


Q1 '08 Q1 '09 Q1 '10Source - BPS

IMRG Report April

2010


SOCIAL GRADE

0

5

10

15

20

25

30

35

40

A B C1 C2 D E


Q1 '08 Q1 '09 Q1 '10Source - BPS

IMRG Report April

2010


REGIONS

0

5

10

15

20

25

30

NORTH

NORTH WEST

YORKS & HUMBERSIDE

WEST MIDLANDS

EAST MIDLANDS

EAST ANGLIA

SOUTH WEST

SOUTH EAST

GREATER LONDON

WALES

SCOTLAND%

OF ONLINE SHOPPERS

Q1 '08 Q1 '09 Q1 '10Source - BPS

IMRG Report April

2010


ONLINE SHOPPING - Profile Comparisons of Online Grocery Shoppers to Other Online Shoppers This final section of profile charts takes a detailed look at the differences between those who engage in Grocery Shopping Online, and those who engage in Other Online Shopping using the Quarter 1 2010 data for the latest view. They are not mutually exclusive categories, but as only 26.19% of Other Shoppers also do Grocery Shopping Online, and 6.63% of Online Grocery Shoppers do not do any Other Online Shopping, it should be useful to interrogate the differences between these categories. The first chart raises the question as to the importance of the ‘Amenity Value’ of Online Grocery Shopping. There is absolutely no wish to veer away from the comfort of Political Correctness, but the very significant weighting on the chart towards Female and Family do tend to lean towards a conclusion that this is heavily favoured by Women with Families. It would have to be fair to point out that in the Survey 37.66% of Main Household Shoppers were Male, and that of Online Grocery Shoppers in the Family Lifestage, 37.76% were Male, but neither of these facts invalidate the conclusion. The overweight results in the 25-34 and 35-44 Age Groups for Grocery Shopping Online continue to propose the distinct Amenity Value of the proposition. Deeper analysis of these two Age Groups of Online Grocery Shoppers reveals that 62.73% of the Males and 79.57% of the Females in that sample are in the Family Lifestage. Finally, and one stage deeper still, analysing that sub-set of Online Grocery Shoppers Aged 25-44 and in Family, 93.4% of those Males are Working, and 70.02% of those Females are Working and 22.76% were Housewives . The differential weightings in the Social Grades are less marked, the most significant being in Grade B where even then the difference is only the margin between 31.36% of Other Shoppers, and 33.88% of Grocery Shoppers.

ONLINE SHOPPING TYPE - Q1 2010

GENDER & LIFESTAGE

0

10

20

30

40

50

60


FAMILY

FAMILY POST

FAMILY

% OF LEGEND GROUP

OTHER GROCERYSource - BPS



AGE GROUPS

0

5

10

15

20

25

30

35

15 - 17 18 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65+

% OF LEGEND GROUP




SOCIAL GRADE

0

5

10

15

20

25

30

35

40

A B C1 C2 D E

% OF LEGEND GROUP




The Regional Analysis should be treated with great care in this section, as it takes absolutely no consideration of the Availability of the Online Grocery Shopping services across the country. The Other Online Shopping analysis is sound, as fulfilment in this area is predominantly by mail delivery, but we have not, at this stage, been able to overlay the Research Database with an effective and comprehensive availability database. The Chart is therefore ONLY provided as a broad indicator (and for more detailed use by those who already have to hand the relevant service availability data).


REGIONS

0

5

10

15

20

25

30

NORTH

NORTH WEST

YORKS & HUMBERSIDE

WEST MIDLANDS

EAST MIDLANDS

EAST ANGLIA

SOUTH WEST

SOUTH EAST

GREATER LONDON

WALES

SCOTLAND

% OF LEGEND GROUP


IMRG Report April

2010

ONLINE SHOPPING - Comparison of Other Internet Uses by Online Shoppers to All Users Based on the 20,099 interviews conducted during the first three months of 2010, this chart shows a breakdown of the other principal Uses of the Internet engaged in by all Internet Shoppers compared to All With Access to the Internet. To put the chart into the first context, the figure for Online Shopping is 51.07% of All With Access. This would put it in 4

th

place on a League Table of Internet Uses, behind Emails at 92.31%, Searching for Information on Hobbies and Interests at 83.72%, and Searching for Information on Products and Services I am thinking of Buying 73.37%. Close behind are To Check on my Bank Account and Other Financial Holdings at 50.62%, and Social Networks and Blogs at 45.31%. This chart is the final supporting act in the overall story of Online Shoppers being generally more engaged with the Internet in all aspects. Right across all the Uses listed in the chart, Online Shoppers are more engaged with every Use than the overall universe of All with Access to the Internet.

INTERNET USES

ACCESS v SHOPPING COMPARISON - Q1 2010

0

10

20

30

40

50

60

70

80

90

100

EMAILS

INFO - INTERESTS

INFO - PRODUCTS

BANK A/C & FINANCES

PLAY GAMES ONLINE

DOWNLOAD MUSIC

DOWNLOAD MOVIES

ONLINE DATING

VOIP

SOCIAL NETWORKS / BLOGS

% OF LEGEND GROUP

INTERNET SHOPPERS ALL WITH ACCESSSource - BPS

IMRG Report April

2010


SECTION 4 CONCLUSIONS Internet Access amongst the Adult Population continues to edge forward, reaching an all-time peak of 75.99% at the end of the first quarter of 2010. The rate of growth has slowed perceptibly over the last year, and it is an inevitable prospect that overall growth in Access will decline as saturation is approached. It is difficult to judge just how close we are to that saturation point at present. Even though there will remain a proportion of the older population who are simply not a viable target market, this has not precluded a steady growth amongst this population. Furthermore, with access penetration levels overweight in all age groups below 55, there is a natural progression over time towards an even greater degree of Access as the current generations with established familiarity and Access patterns take the place of the older non-adopter generation. Alongside the growth in Access, Online Shopping continues to grow as well, breaching the 50% mark in the first quarter of 2010 and moving on to 51.07% of the Adult Population in March. Underlying this growth in terms of the population is the growth in penetration of those with Access, which has increased over the last two years from 63.12% of All with Internet Access in March 2008 to 66.67% in March 2010. The gap between Search and Purchase Online has also continued to decline over the same period. Recent technology developments, particularly in the area of ‘roaming’ access via both laptops, and hand held devices, is clearly playing a part in the development of the availability of Online Shopping services. This has been particularly marked by an increase in laptop ownership from 34.15% of households in March 2008 to 53.03% in March 2010. The overall conclusions from the Research at this point are :-

1 There is still significant room for further steady long term growth in Internet Access

2 Even though the Online Shopping Industry continues to hit significant target benchmarks, it is only just reaching two thirds of the Access market. This opportunity, underlined by the continuing gap between Search and Purchase, defines the strong potential for maintaining the growth in Online Shopping. The population’s growing familiarity and engagement with the medium, demonstrated in this report, robustly enhances this opportunity.

3 This Report is able to define the make up and characteristics of those who engage with the Internet and Online

Shopping, and provide pointers towards areas and methods where the potential is strongest to widen the number of shoppers. It cannot provide any information or indicators in the areas of the frequency and value of their Online Shopping. It should therefore be viewed as a vital companion study to the regular IMRG volume and value reports on the Online Shopping Market, and we look forward to the opportunity to draw further insight in the future from these dual perspectives.

Mike Hare Research Director The British Population Survey April 2010


SECTION 5

About The British Population Survey METHODOLOGY AND BACKGROUND This Report is based is The British Population Survey. This is a very large, long term, monthly Tracking Study of the Adult Population of Great Britain. It conducts face to face, in home interviews with population representative samples of Adults aged 15 and over, at the rate of between 6,000 and 8,000 interviews per calendar month, It is not based on a panel, but always interviews new respondents, with long term guarantees of non – duplication. The full text of all the questions asked in the survey is available as a download from the Survey website at www.thebps.co.uk. The Survey Questionnaire contains 69 questions, with over 370 unique responses, each of which can be used for cross analysis or as an individual filter or part of a complex filter. Question areas cover details of family structure, economics, media consumption, lifestyle and, of course, Internet Access and Use. Since commencing in January 2008, the Survey has conducted interviews with 189,319 individual respondents, including over 20,000 in the first quarter of 2010. The data arising from the Survey is available to any interested party, and is supplied, via the Survey’s website, as a comprehensive database embedded in its own easy to use analysis software for unlimited cross analysis and filtration. The software, complete with the full Survey database for the whole of 2008, is available FREE from the website, and full updates from the free version to the full current extensive database can be downloaded at a small charge. Each month, the complete new set of data is uploaded to the website and is available for download within 10 working days of the end of the month. Whenever a download is made from the website, it will include the full back database from January 2008 to date, meaning that absolutely no ‘regular subscription’ or any similar undertaking is required in order to access the data at any time. As a subsidiary Survey alongside The British Population Survey, The British Marketing Survey is also available. This is conducted on one single set of 1000 interviews around the middle of each calendar month, and poses an additional set of 8 key attitudinal questions, with over 150 unique responses, about consumer response and acceptability in respect of 18 Marketing Communication Channels, and 21 Industry Sectors. This Survey database is also available on similar terms through the www.thebps.co.uk website.

About IMRG IMRG (Interactive Media In Retail Group) is the industry body for global e-retail. Formed in 1990, IMRG is setting and maintaining pragmatic and robust e-Retail Standards to enable fast-track industry growth, and facilitates its community of members with practical help, information, tools, guidance and networking. Consumers can be confident when dealing with IMRG Members because all have committed to operate using methods that are Honest, Decent, Legal, Truthful and Fair, and have undertaken to not bring the industry into disrepute. The strength of IMRG is the collective and co-operative power of its members.

Documents

Internet Access & Shopping Report Apr 10