The iPad’s effect on media consumption John Oswald Business Design Lead Fjord London @fjord

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What questions does the iPad raise if you’re a media organisation?

The iPad’s has really taken off, but is it a passing thing?

What’s it doing to the overall print / web debate?

What are the demographic trends?

What are the device trends?

How best to act and filter some kind of signal from the noise?

Where best to invest?

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Content

•  Some numbers and projections

•  What can the form offer?

•  What’s really changing?

•  What are the underlying trends for media consumption?

•  Thinking context?

•  Some pointers and ideas

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Numbers…

14.8 million sold in first 9 months

48 million worldwide in 2011 (Gartner)

294 million worldwide by 2015 (Gartner)

iPad 69% market share in 2011…

… but 47% market share in 2015

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…these are interesting too

90% consumer awareness (Adage, Jan 2011)

21% 18-34 year olds intend to buy one (same survey)

Erosion of PC / Netbook growth Gartner’s growth projections reduced from 16% to 10.5%, on sales of 387 million worldwide

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There are adjacent effects of the iPad’s growth

Which eBook reader do you currently own?

Kindle

iPad

Source: ChangeWave research

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There are signs that advertising is more welcome here

Source: The Nielsen Company

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A note of caution

•  So far, slightly niche device – mainly male •  Education levels are higher among iPad owners •  Many are early adopters •  More than half are high earners

Pinch of salt needed with tales of advertising and purchasing

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There will be the inevitable catch-up

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But in a nutshell,

I probably don’t need to tell you that this is worth embracing

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Fighting for timesha re All fighting for timeshare

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News on itunes…

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Not all apps are created equal*

*according to a Webcredible survey in April 2011 (www.webcredible.co.uk)

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In a nutshell,

We’re still grappling with the form factor and potential of the iPad

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Making best use of the screen

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Using natural interactions

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Scaling the brand

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Doing more than just displaying the news

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But let’s not get ahead of ourselves,

What’s changing as a result of the iPad phenomenon?

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Casual computing

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Impact of tablets on use of other devices

Source: The Nielsen Company, Q1 Mobile Connected Device Report

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Reasons for using tablets over other devices

Source: The Nielsen Company, Q1 Mobile Connected Device Report

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What people are downloading

Source: The Nielsen Company

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Mobile computing…

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… for the workforce too

Source: AlphaWiseSM CIO Survey, via Morgan Stanley

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People are spending a lot of time using it

Source: RJI – donald w. reynolds journalism institute – DPA iPad research project, 2011

63% of people spend more than an hour in a typical day with their iPad. 28% more than two hours a day

89% use their iPad throughout the week

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Touch generation…?

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Total shipments over first five years (in other words, people just ‘get it’)

Source: Morgan Stanley Research, Gartner, IDC, company reports, 2011

Millions sold

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Social ease

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That’s all very well,

What are some of the bigger trends for media consumption?

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Keeping up with news / current events is (still?) the most popular main use

78.6% of iPad users surveyed spent 30 minutes a day (That’s compared to 52.5% on TV, 18.8% on daily newspapers)

48.9% spend an hour a day consuming news

9 out of 10 said they are very likely (71.8%) or somewhat likely (21.2%) to use a newspaper’s app for reading news and features stories as opposed to a browser

Source: RJI – donald w. reynolds journalism institute – DPA iPad research project, 2011

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But there’s a bigger trend – personal curation

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And this doesn’t even account for sharing

The average Facebook user creates 90 pieces of content a month

30bn pieces of content are shared each month (e.g. news

stories, links, photos)

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So it’s a short leap of imagination to totally crowdsourced media

Minnesota Public radio’s roster of ‘journalists’ with specialist knowledge – its Public Insight Network

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Because TV is the new Print (or, the Web is the new TV)

•  The live web […] is fast becoming our primary means for viewing and listening to news

•  The web is the new TV and radio, because it has subsumed both

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Whither the print edition?

30.6% of iPad users surveyed don’t subscribe to print news

10.6% have already cancelled their print subscriptions

58% said they were likely to cancel their print subscriptions in the next year

Source: RJI – donald w. reynolds journalism institute – DPA iPad research project, 2011

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Digital First, Print Last (powered by the iPad?)

•  Stop listening to print people and put digital people in charge •  Newspapers must invest in content, sales and disruption – sell or

outsource everything else •  Complaint: newspaper dollars become digital dimes. Response: start

stacking the dimes

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How one media company has approached this - Bonnier

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User research and basic design principles

Real News Live Content Charged Design

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Live Newsroom: ‘read’ mode

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Live Newsroom: ‘act’ mode

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How has it been received?

Launched for all the major brands in Sweden

The concept has reached 50% of the iPad user base

15% of customers have become paying subscribers.

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So to summarise,

The iPad has arrived at a time of massive media transformation… …and has accelerated it

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Some success criteria (in our opinion)

Five likely foundations for success:

Think Context

Build Engagement

Real user insights

Think Gaming

Business model first

… maximising how to make the most of where your users are and what they’re doing

… enabling interaction on every possible level, and sharing mechanisms

… primary research, behavioural data, willingness to test ideas with real users/customers

… not playing games, but game type interaction to build engagement

… settling on a means of monetisation appropriate to the type of service and the context

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Top things to avoid (if you can..)

Five likely foundations for failure:

Copying print form (slavishly)

Alienating readership through complex interaction modes

Diverging from other platforms

Individual silos

Transfer of commercial model from print/web to iPad

… simply copying the print edition is very limiting and misses lots of tricks

… but complexity can really put people off, unless it’s appropriate

… it has to feel seamless irrespective of platform, building on awareness of context

…real potential for bulk deals as well as cross-brand interaction

… poorly judged advertising can alienate for good

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What questions does the iPad raise if you’re a media organisation?

The iPad’s has really taken off, but is it a passing thing?

What’s it doing to the overall print / web debate?

What are the demographic trends?

What are the device trends?

How best to act and filter some kind of signal from the noise?

Where best to invest?

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Thank you