SurveyMonkey Audience Monthly Consumer Insights Tracking Study (November 2012)

SurveyMonkey Audience Monthly Consumer Insights Tracking StudyNovember 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 November 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

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. Earlier this month, it was reported that activist investor Carl Icahn bought nearly a 10% stake in Netflix, pushing the internet company to adopt a “poison-pill” that would protect them from a hostile takeover. Our November responses show that the market share for Netflix has not changed since last month. Virtually all categories of current, past, and non-subscribers have remained the same amongst our respondents.

* Number of November respondents: 664

Netflix Cancellation (Churn) Likelihood

For 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 jumped up 8 percentage points this month, which may be related to seasonality. At the same time, there was also a small increase 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 November, the reasons for subscribers cancelling has stayed pretty consistent with past months. Based on the last 3 months, it looks like users are becoming less dissatisfied with Netflix content. The biggest jump we say was

in the “Other” category which also shows that Amazon Prime (AMZN) continues to be a significant competitive offering.


This Months “Other” Netflix Cancellation Reasons

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 this month, Sirius XM Radio (SIRI) announced its best quarterly growth in subscriptions since it merged with XM Radio in 2008. While things seem to be looking up for the satellite radio company, our numbers still show that usage has dipped a little since last month. We’ll keep an eye on these numbers in the next couple of months to see if they reflect the Q4 subscriber growth at all. Pandora (P) continues to be the market leader, despite getting into a spat with music artists earlier this month regarding it’s attempt to decrease amounts paid on royalties.


** 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. November was a good month for Facebook, which saw its stock price increase after reports came out on strong revenue-growth prospects. Our numbers also show that November brought increased visits and viewing activity on Facebook, with a healthy 6 percentage point increase from last month in the number of people saying they visit the site once or more per week. It also looks like social networking visits are up in general, since our results show Google+ activity up 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. November also saw an uptick in posting activity in both Facebook and Google+ by 2 and 3 percentage points respectively. 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 November, with numbers continuing to stay steady compared to past months. It looks like Apple’s (AAPL) iPad may be starting to trend down, while Amazon’s (AMZN) Kindle Fire is starting to trend up. It also looks like BlackBerry (RIMM) might be starting to make a comeback - more good news for the company whose stock soared in November after analysts showed optimism around the BlackBerry 10 phone set to release early next year.

* Number of November respondents: 650** Only data from the most popular answer options is included in this presentation. “Other” or “None of the above” responses are also not shown.

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. We don’t see any major changes in the mobile gaming players with usage staying consistent with last month’s results.


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. While this is the first month of our gaming console trend, 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.

* Number of November responses: 650

Game Console Purchase LikelihoodWe ask all respondents (game console owners and non-owners) how likely they are to a purchase one of the top 3 game consoles in the next months. Over time, we expect the trend to provide insight into the popularity of game console manufacturers. Below are the results of our first data point gathered in November.

* Number of November responses: 650* Respondents that selected “I already own this device” answer choice are not shown.

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. Most of the restaurants we showcase were stronger in November than in October showing that overall restaurant spending hasn’t changed too much, but is on the upslope for most restaurants. The biggest jump came from Red Lobster (DRI).


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 November. Most restaurants we’re following stayed relatively close to results from last month, although it looks like Dunkin’ Donuts (DNKN) is continuing its upward trend since we started following it in August.


This Month’s “Other” Fast Food Restaurants

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 drop since last month, but given that the numbers have stayed between 10 to 13% in the past 6 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. While OpenTable (OPEN) usage has stayed pretty consistent for the past few months, November brought a 7 percentage point drop in the number of respondents using OpenTable. Earlier this month, OpenTable cut revenue

forecast for Q4 citing Hurricane Sandy effecting restaurants’ ability to serve customers. However, we see that there was a direct increase in the percentage of people using restaurants’ own websites to make reservations which went up by 8 percentage points.


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 November was not a good month for ordering food for takeout and delivery. The number of respondents that made phone calls or online orders dropped a total of 14 percentage points, while the overall number of people that did not make any orders rose 16 percentage points.


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. Below is the data for our first month of coverage of the daily deal market.

* Number of November responses: 650

Technology

SurveyMonkey Audience Monthly Consumer Insights Tracking Study (November 2012)