SurveyMonkey Audience Monthly Consumer Insights Tracking Study (December 2012)

SurveyMonkey Audience Monthly Consumer Insights Tracking StudyDecember 2012

IntroductionBeginning in June 2012, SurveyMonkey Audience has run a monthly tracking survey to over 500 respondents to get feedback on a variety of topics including Netflix subscription trends, Online music service listening trends, Social networking usage trends, Mobile device ownership, Mobile video gaming usage, Grocery store shopping preferences, Casual dining restaurant visitor trends, Fast food restaurant visitor trends and spending habits, Restaurant reservation and takeout service usage, among other topics. We typically run this survey during the second week of each month over 7 day period. Every month, we update the survey to ensure that it contains the most relevant information and question options (e.g., as new online games are launched, we add them to the survey options as they become popular and retire unpopular options). We often do this using our text analysis tools, which allow us to surface the most popular options entered in the “Other (please specify)” fields, which help make sure we don’t miss any important options to add as trends evolve. Over time, we have added and removed sections and areas that we cover in the survey based on customer interest levels (we want to provide interesting, relevant information for customers) and new trends that emerge in the media. We have also made modifications in the past to the way we collect data and types of questions or answer options used. For example, we found that our data on average grocery spending per week was more useful for trending purposes to collect raw numbers (vs. using a multiple choice question with ranges) so that we could provide a trending average. If there are interesting topics you’d like us to cover in the monthly survey, or ways that we can provide better coverage of the topics we focus on, please email us. We’d love to hear any feedback and make this content as useful as possible. You can reach our sales team at [email protected]. Disclaimer: The data and information in this document and the associated detailed tracking reports is meant for informational and product collateral uses. We use this information as a way to highlight the many topics and types of analyses that can be accomplished using SurveyMonkey Audience. We use a general population sample when running our projects and do not balance on fully nationally representative measures or seek to achieve high confidence levels since this is promotional data. For any customers projects seeking to achieve higher confidence levels and nationally representative data or data balanced on any other quotas, please contact our sales team and we would be more than happy to help you create your own custom projects to achieve your needs.

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Sample Size: We sample at least 500 respondents each month and provide the number of respondents to each question in our footnotes. Since we use skip logic in our survey, not all respondents answer each questions, so the confidence levels can vary. For a guide to understanding the confidence level in any data points in our study, please refer to our guide to confidence intervals.

http://help.surveymonkey.com/app/answers/detail/a_id/5709/kw/confidence%20intervals?q=confidence+intervals







Focus TopicsIn this report, we will provide an overview of any key findings for each topic area and a chart depicting trends using all data we have gathered on each topic. In many cases, focus areas with more detailed analysis will include a link to additional reports focused on each topic. The focus areas in the December 2012 edition of the SurveyMonkey Audience Monthly Tracking Study include:

● Netflix Subscription Trends● Online Music Service Listening Trends● Social Networking Usage Trends● Mobile Device Ownership● Mobile Video Gaming Usage● Game Console Ownership● Casual Dining Restaurant Visitor Trends● Fast Food Restaurant Visitor Trends and Spending Habits● Restaurant Reservation and Takeout Service Usage● Daily Deal Consumption Trends● Travel Websites Usage Trends

Netflix Subscription TrendsNetflix (NFLX) is always a hot topic for Internet and Media analysts and investors. The company that brought DVDs into your mailbox for years and grew to become leading a media player and innovator has a strong following and huge customer base. We track several trends on market share, cancellation likelihood and satisfaction. Below is a snapshot of our data and key topics.

Netflix Market ShareSince our sample includes a gender balanced group of US adults, we expect this to predict a reasonable trend of US market share. While December was a little noisy on the legal front for Netflix with CEO Reed Hasting facing possible SEC action over a Facebook post about hitting 1 billion hours in July, our December numbers were a little quieter. Subscriber numbers amongst our respondents stayed very close to last month’s results.

* Number of December respondents: 599

Netflix Cancellation (Churn) LikelihoodFor current Netflix subscribers, we ask how likely they are to cancel their subscription in the next 3 months. While customer ability to predict their future behaviors is not 100% reliable, we expect the trend to provide insight into customer happiness with the offering and the impact of competing offerings. The percentage of users that are not at all likely to cancel their subscription remained almost unchanged with a 1 percentage point drop. At the same time, there was also a small decrease in the percentage of people extremely or very likely to cancel, but is still within the average for the past few months.


Netflix Cancellation ReasonsFor those subscribers who have indicated they have some likelihood of cancelling their subscription in the next 3 months, or that they were former subscribers but cancelled their subscription in the past, we ask why they cancelled. Respondents are able to select multiple reasons. We expect this trend to highlight any major issues with the product, service or pricing and any major threats from competitors. We have provided the aggregate set of data, but it can also be filtered to look specifically at those Extremely likely to cancel or to remove those who

have already cancelled, or any combination of other responses using SurveyMonkey’s analysis filters. In December, the foremost reason for subscribers cancelling was that they “don’t use [the service] enough,” which jumped up 6 percentage points from last month. This come amidst reports that a significant competitor, Redbox (CTSR), is testing a streaming movie service in partnership with Verizon Communications (VZ).


Online Music Service Listening TrendsPut away your 8-tracks, cassette tapes, CDs, and maybe even your iPods and make sure your PC or mobile device has a decent connection. Online based music services have grown rapidly over the past several years and new offerings continue to emerge and grow their market share. Services like Pandora (P) have even gained enough traction to become public companies. We track usage of some of the most popular services. Below is a snapshot of our data and key topics.

Online Music Service UsageWe ask consumers which online music services they use in the a typical week. Respondents are able to select multiple services. Each month, we review the names that come up in the “Other” category to see which new players we are missing using SurveyMonkey’s text analysis feature. We have added several companies into the answer options over time as we see new trends pop up. Earlier last month, Sirius XM Radio (SIRI) announced its best quarterly growth in subscriptions since it merged with XM Radio in 2008. Our numbers supported this claim and reflected the Q4 subscriber growth, with the percentage of Sirius XM users jumping 3 percentage points over last month.

* Number of December respondents: 593** Only data from the most popular answer options is included in this presentation. “Other” or “None of the above” responses are also not shown.

Social Networking Usage TrendsThis social networking phenomenon has caught on, and has certainly changed how people interact with each other, and how companies need to think about interacting with their customers. We’ll be publishing this report on our social media channels and hoping that people like, G+, tweet and share it to everyone they know. We track usage of some of the most popular services. Below is a snapshot of our data and key topics.

Facebook & Google+ Viewing ActivityWe ask consumers how often they view things on Facebook (FB) and Google+ (GOOG). We expect the trends to show us whether the frequency in how often people are checking content on the two networks is increasing or decreasing, and also to help provide insight into whether people are logging in to check updates and information at all. Our numbers show that December brought decreased visits and viewing activity on Facebook with a 7 percentage point decrease from last month in the number of people saying they visit the site once or more per week. It appears that numbers jump around for Facebook viewership, so the drop is in line with trends over the past months.


It also looks like social networking visits are down in general for December, since our results show Google+ activity down by 2 percentage points from last month.


Facebook & Google+ Posting ActivityWe ask consumers how often they post things on Facebook and Google+. Since we cover the topic of viewing in the trend above, we also want to understand whether people are contributing to conversations and adding content. We expect the trends to show us whether the frequency in how often people are adding content on the two networks is increasing or decreasing, and whether people are engaging with the two networks by posting updates and information. December also saw an downward trend in posting activity for both Facebook and Google+ by 2 percentage points each. However, given that it’s also within the ranges of the past months, this is most likely just noise and not a significant drop. It appears that the social media activity trends for both sites tend to increase and decrease together, and one site is not necessarily cannibalizing users from the other.



Mobile Device OwnershipWonder why the tech giants like Apple, Google, Amazon and Microsoft are all in the mobile device game? People can’t stop buying the next new mobile gadget. And lots of consumers own several devices. We track ownership of several of the most popular devices. Below is a snapshot of our data and key topics.

Mobile Device Ownership TrendsWhile smartphones and tablets and e-readers come in many flavors today, we ask consumers which devices they own and focus on the major brands and types of devices. We expect this trend to show us which manufacturers gain or lose share as new device models launch. We did not see any major changes in mobile device ownership in December, with numbers continuing to stay within the ranges of the past few months. It looks like Apple’s (AAPL) iPad may be starting to make a comeback with a 2 percentage point increase over last month. BlackBerry (RIMM) is also heading on an upward trend - we’ll see if this continues to feed the confidence surrounding analysts opinion of RIM’s BlackBerry 10 due out next year.


Mobile Video Gaming UsageWhether you are waiting in line at the DMV or trying to keep touch with old friends with an old fashioned game of long distance scrabble, gaming applications are on nearly everyone’s mobile devices. As advertising inventory moves toward mobile devices, gaming companies try to churn out the next big hit to get as many daily users as possible. We track some of the most popular mobile games to see how their popularity increases or decreases over time.

Mobile Video Game Playing TrendsWe ask consumers which games they have played in the past week. Respondents are able to select multiple games. We expect this trend to show share gains/losses for popular games and also to surface new popular games. Each month, we review the names that come up in the “Other” category to see which new games we are missing using SurveyMonkey’s text analysis feature. We have added and removed several games in our answer options over time as we see new games emerge. Earlier in December, Zynga’s (ZNGA) stock price rose amid reports that they were taking concrete steps towards real money games in the US. Our numbers also showed good news for two Zynga games with Words with Friends and Draw Something each showing usage rising.


This Month’s “Other” Mobile Games

Game Console Ownership There may be some old school gamers who can beat Super Mario Brothers 1 in less than 5 minutes, but today’s gaming is interactive and so lifelike that people can often mistake a game of Madden for an actual game. As online and interactive gaming grows and evolves and become a portal to the Internet and media, we track the trends of which gaming consoles consumers own. Below is a snapshot of our data.

Game Console Ownership TrendsWhile there are a number of different game consoles that have been sold throughout the years, we ask consumers which of the most popular devices they currently own and focus on the major brands and models. We expect this data to show relative market share of the Internet population and over time to reflect the shifts in market share amongst the main gaming console providers. While Nintendo is facing a tough time meeting their initial sales forecast for the new Wii U and cut sales forecasts by 70 percent in October, Nintendo Wii gained the most over the past month with a 4 percentage point bump. Looks the like the general trend of people that don’t own a game console is going down, but we’ll keep an eye on it over the next few months to see if this is just noise.

* Number of December responses: 581

Casual Dining Restaurant Visitor TrendsA favorite random fact for our team - what is the most popular casual dining restaurant in the US? Applebees, Olive Garden, Chili’s, Outback, Ruby Tuesday? Take a look at our data below to find out. Restaurant groups battle constantly for your business using advertising, adding new locations, and anticipating the next new trend to make sure you stop in and try out their latest menu offerings. We track which restaurants consumers visit and how much they typically spend when they dine out.

Top Casual Dining RestaurantsWe ask consumers which popular casual dining restaurants they have visited in the past 30 days. Respondents are able to select multiple restaurants. We expect this trend to help us understand the success of new marketing initiatives from restaurant groups and to see how seasonal patterns may be favorable or unfavorable for different restaurants. We also find that restaurant-goers are very keen to let us know which of their favorite eating establishments need to be on our list. So each month, we review the names that come up in the “Other” category to see which restaurants we are missing using SurveyMonkey’s text analysis feature. We have added and removed several restaurants in our answer options over time to make sure we are tracking the largest chains. Numbers stayed pretty steady for the restaurants we showcased in December as compared to last month with no big changes in amount of people visiting the franchises. The biggest jump came from Outback Steakhouse (BLMN).


** Only data from the most popular answer options is included in this presentation. “Other” or “None of the above” responses are also not shown.

This Month’s “Other” Casual Dining Restaurants

Fast Food Restaurant Visitor Trends and Spending HabitsWe couldn’t ask people about their restaurant dining habits (see above) without asking about fast food dining. While fast food has become a staple for many Americans, the major chains battle for your business using advertising, adding new locations, and anticipating the next new trend to make sure you stop in and try out their latest menu offerings. We track which fast food restaurants consumers visit and how much they typically spend.

Top Fast Food RestaurantsWe ask consumers which fast food restaurants they have visited in the past 30 days. Respondents are able to select multiple restaurants. We expect this trend to help us understand the success of new marketing initiatives from fast food chains. Each month, we review the names that come up in the “Other” category to see which restaurants we are missing using SurveyMonkey’s text analysis feature. We have added and removed several restaurants in our answer options over time to make sure we are tracking the largest chains. Similar to casual dining restaurants, fast food restaurants also don’t show any drastic changes in visits for the month of December. Most restaurants we’re following stayed relatively close to results from last month, but it looks like Chick-fil-A might be making a comeback although it was a relatively small jump.


Restaurant Reservation and Takeout Service UsageWhy go out to eat or wait in line to pick up your food? Have it delivered or order ahead. A growing number of services have grown to help restaurants fill their seats and reach new customers and helped consumers save time and find new places to eat. These days, if you run a restaurant in a major city and aren’t letting customers reserve ahead with Opentable (OPEN), you may miss out on many restaurant-goers. We track whether consumers are using online services to book restaurant tables and order food for delivery or pickup and which services they use.

Online Restaurant Reservation PopularityWe ask consumers whether they have used an online service to book a restaurant reservation in the past 30 days. We expect this trend to show the popularity of online tools in the restaurant reservation space. The general trend for online reservations continues to stay steady. We see a 2 percentage point increase since last month, but given that the numbers have stayed between 10 to 13% in the past 7 months, we see this as general noise and not necessarily significant changes in usage.


Top Online Restaurant Reservation ServicesWe ask those consumers who have booked a restaurant reservation online in the past 30 days which services they used. Respondents are able to select multiple restaurants. We expect this trend to help us understand which services are gaining in popularity as new services emerge and restaurants begin using online systems to manage reservations. The overall number of people making restaurant reservations online was up this month, with only 5% of respondents citing they haven’t used anything to make reservations as compared to 9% last month. OpenTable (OPEN) had a small bump but it may be just general noise.


Top Online Delivery or Takeout ServicesWe ask consumers which methods they used to order delivery or takeout in the past 30 days. Respondents are able to select multiple methods. We expect this trend to help us understand which services are gaining in popularity as new services emerge and restaurants begin using online systems to manage orders. It appears that December continued the downward trend for ordering takeout or delivery food. The amount of people not using any service jumped up another 4 percentage points while most other services dropped.


Daily Deal Consumption TrendsAre daily deals a fad? Or something here to stay? Sometimes you can’t walk into a local business without seeing someone else pay for their visit with a daily deal, and sometimes at half the price you are paying for the same service or goods. Companies like Groupon (GRPN) and Living Social and many others have gained significant traction with consumers and have reached the revenue scale to become public companies. We track usages of some of the most popular daily deal sites.

Daily Deal ConsumptionWe ask consumers which daily deal site they have purchased a daily deal from in the past 30 days. Respondents are able to select multiple sites. We expect this trend to show popular players in the daily deal space, as well as the overall popularity of deal sites. While stock prices surged for Groupon earlier in the month amid speculations that Google might still be interested in a buyout, it usage dropped 2 percentage points amongst our respondents for the month of December. It’s been reported that Groupon may focus on the e-commerce space in the coming months and we’ll see if this makes any difference in our numbers next year. All other daily deal sites we track remained steady with no big increases or decreases in usage over the past month.

* Number of December responses: 578

Travel Websites Usage TrendsCalling up a travel agent to book trips has become a thing of the past, with the onslaught of online travel service providers available to consumers in the past decade. Being able to compares prices and itineraries across multiple airlines with a just a few clicks make travel research almost fun. The online travel industry is heavily saturated with hundreds of travel sites. Some have grown enough to acquire other major competitors in the market like Priceline (PCLN) did with Kayak (KYAK) in November of 2012. We track usage of the most popular travel websites.

Travel Website UsageWe ask consumers which travel site they have used to research travel in the past 30 days. Respondents are able to select multiple sites. We expect this trend to show popular players in the online travel space. Below is the data for our first month of coverage of the online travel service provider market. Given that it’s the holiday travel season, we expect that numbers would be healthy across all major players in the market. We’ll keep an eye on the results to see what they look like in the next few months.

* Number of December responses: 578** Only data from the most popular answer options is included in this presentation. “None of the above” responses are also not shown.

Technology

SurveyMonkey Audience Monthly Consumer Insights Tracking Study (December 2012)