APHSA-ISM Annual Conference

October 8, 2013

Aaron Smith, Senior Researcher

Pew Research Center

Technology adoption by lower income populations

About Pew Internet

• Part of the Pew Research Center, a non-partisan “fact tank” in Washington, DC

• Studies how people use digital technologies

• Does not promote specific technologies or make policy recommendations

• Research is primarily based on nationally representative telephone surveys

What do we mean by “lower income”?

• Based on reported annual household income

• Categories collected: <10k, 10-20k, 20-30k, 30-40k, 40-50k, 50-75k, 75-100k, 100-150k, and 150k+

• Around 10-20% of respondents typically don’t report (or don’t know) income

• Limited ability to subdivide the lower-

income population. But it tends to skew towards non-white; youth and seniors; low education; urban/rural

Before we get started

• Apologies for making you start your morning with charts…

• But you don’t have to write anything down!

• Because you can find these slides at pewinternet.org/presentations

1) Internet Use and Home Broadband Adoption

National averages

• 85% of American adults are internet users

• 70% of American adults have some sort of high-speed home internet connection (DSL, cable, FIOS, etc)

Which means that…

• 15% of Americans do not go online from any device/location (Group 1)

• 15% of Americans go online, but do not have

broadband at home (Group 2)

Internet use & broadband by income

42%

54%

64% 63%

77%

84% 85%

90% 90%

70% 70%

85% 84%

92% 94% 96% 97% 96%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

<$10k $10,000 -$19,999

$20,000 -$29,999

$30,000 -$39,999

$40,000 -$49,999

$50,000 -$74,999

$75,000 -$99,999

$100,000 -$149,999

$150k or more

Broadband at home Use the internet

1

2

Age has a huge impact on which group people fall into

1%

5%

8%

11%

24%

48%

Non users: Half 65+ yrs old

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

16%

17%

15% 22%

14%

14%

Online, no broadband: Half <45 yrs old

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

In plain English…

• Around 1/3 of people making <$20k per year are not online at all. Non-users are heavily dominated by older adults.

• Around 1/3 go online, but don’t have broadband at home.

• So how is that group accessing online content?

Many of them turn to public institutions like libraries

• 32% of lower-income (<$30k per year) Americans have accessed the internet for free from somewhere other than home, school or work in last 12 months

• 81% of lower-income Americans say it is “very important” for the library to provide free access to the internet & computers

• 35% of lower-income library users have used the internet or a computer at a library in the last 12 months

2) But mobile devices are also playing a big role

Cell ownership > internet use

70% 70%

85% 84%

92% 94%

96% 97% 96%

83%

87% 87% 89%

92% 96%

98% 98% 97%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

<$10k $10,000 -$19,999

$20,000 -$29,999

$30,000 -$39,999

$40,000 -$49,999

$50,000 -$74,999

$75,000 -$99,999

$100,000 -$149,999

$150k or more

Use the internet Own a cell phone

+17 +13

Smartphone or non-smart phone? Depends on your income…

17% 13% 14% 11% 9% 4% 2% 2% 3%

49%

44% 37%

38% 37%

35%

25% 16% 16%

34% 43%

49% 51% 54% 61%

73% 82% 81%

0%

20%

40%

60%

80%

100%

LT $10k $10,000 -$19,999

$20,000 -$29,999

$30,000 -$39,999

$40,000 -$49,999

$50,000 -$74,999

$75,000 -$99,999

$100,000 -$149,999

$150k+

No cell phone Cell, not a smartphone Smartphone

…but especially your age

77%

47%

22%

8%

81%

68%

40%

21%

90% 87%

72%

43%

0%

20%

40%

60%

80%

100%

18-29 30-49 50-64 65+

Less than $30,000 $30,000-$74,999 $75,000 or more

Smartphone ownership by age/income grouping

Smartphone ownership over time

21% 20%

26%

37%

44%

38%

53% 57%

73%

35%

43%

49% 51%

54%

61%

73%

82% 81%

0%

20%

40%

60%

80%

100%

<$10k $10,000 -$19,999

$20,000 -$29,999

$30,000 -$39,999

$40,000 -$49,999

$50,000 -$74,999

$75,000 -$99,999

$100,000 -$149,999

$150k or more

May 2011 May 2013

+14 +8 +25 +20 +23 +10 +14 +23 +23

Impact of smartphones on “broadband” adoption

42%

54%

64% 63%

77%

84% 85%

90% 90%

56%

66%

78% 74%

85%

91%

94% 95% 96%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

<$10k $10,000 -$19,999

$20,000 -$29,999

$30,000 -$39,999

$40,000 -$49,999

$50,000 -$74,999

$75,000 -$99,999

$100,000 -$149,999

$150k or more

Broadband at home Broadband OR Smartphone

+14

+12

+14

Biggest impact is among young and working-age lower income adults

74%

60%

47%

24%

92%

79%

55%

25%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

18-29 30-49 50-64 65+

Broadband at home Broadband OR Smartphone

+18

+19

+8

Broadband/smartphone adoption among HH income of <$30k per year

Almost everyone texts, apps track with smartphone ownership

80%

75%

80% 80% 81%

88% 85%

90% 90%

33%

43% 46% 46%

49% 50%

59%

73%

68%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

<$10k $10,000 -$19,999

$20,000 -$29,999

$30,000 -$39,999

$40,000 -$49,999

$50,000 -$74,999

$75,000 -$99,999

$100,000 -$149,999

$150k or more

Use text messaging Download apps

% of cell owners in each income group who…

Texting and apps by lower-income adults of different age groups

98%

92%

68%

19%

78%

41%

14%

4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

18-29 30-49 50-64 65+

Use text messaging Download apps

Texting/apps use among cell owners with HH income of <$30k per year

Internet use on cell phones

50% 51%

63% 60% 59%

63%

72%

83% 84%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

<$10k $10,000 -$19,999

$20,000 -$29,999

$30,000 -$39,999

$40,000 -$49,999

$50,000 -$74,999

$75,000 -$99,999

$100,000 -$149,999

$150k or more

45% of cell internet users in this income group go online mostly with

their cell phone

39% 27% 30%

% of cell owners in each income group who use the internet/email on their cell phone

Tablets – growing at the low end, but still largely an elite device

5% 5%

12%

16% 14%

22%

28%

34%

45%

17% 15%

26% 25%

33%

38%

50%

57%

65%

0%

20%

40%

60%

80%

<$10k $10,000 -$19,999

$20,000 -$29,999

$30,000 -$39,999

$40,000 -$49,999

$50,000 -$74,999

$75,000 -$99,999

$100,000 -$149,999

$150k or more

May 2012 May 2013

Tablet ownership by income category

Summary

• Huge differences between young and old lower-income adults

• Cell phones are common for all income ranges, but smartphones are mainly a young/working age phenomenon

• Many lower-income adults (esp. younger ones) are using mobile devices as their primary gateway to online life

Resources

2013 Broadband update:

http://pewinternet.org/Reports/2013/Broadband.aspx

2013 Smartphone update:

http://pewinternet.org/Reports/2013/Smartphone-Ownership-2013.aspx

Mobile topics page (running list of latest and greatest):

http://pewinternet.org/topics/Mobile.aspx

Aaron Smith Senior Researcher

Pew Research Center’s Internet Project

asmith@pewresearch.org

@pewinternet

@pewresearch