Research and Reports

The success of Amazon.com's Kindle e-reader and online e-book store has spawned a paid e-publishing content marketplace that has grown rapidly in the past two years and shows no sign of slowing. Competition from other device-makers such as Apple promises to further stimulate what is already one of the most dynamic areas of the digital content ecosystem.

Baby boomers are on the verge of adopting smartphones and the mobile Internet. In the vanguard of this movement are younger boomers, just as they are more active Internet users. But boomers’ mobile Internet adoption rates will be similar to their social media uptake—that is, slow. They must see the benefits before they sign on.

Mothers control an estimated 80% of all household spending, and they are increasingly exercising their spending power online. Motherhood changes a woman’s shopping behavior, product needs and purchase criteria. New and experienced moms alike rely heavily on the Internet to learn about the products they need, save on purchases and connect with other moms to exchange opinions about retailers and products.

Led by the trailblazing efforts of Major League Baseball, other top US sports leagues have made huge strides in streaming live-game content on a paid basis.

Growth for behaviorally targeted advertising outperformed the entire display ad bucket in 2008 and 2009. This trend will continue into 2010 and beyond, with increases in behaviorally targeted ad spending topping out at 25.9% in 2012. But the uncertainty created by several factors-most notably governmental investigations and potential regulation, but also consumer privacy complaints-will inhibit even greater spending on behavioral targeting.

Marketers across categories are racing to take advantage of the proliferation of online video content and consumers' increasing engagement with that content. The consumer products sector is no exception.

Creating and renewing personal connections online is the biggest draw for boomers. About 47% of online boomers maintain a profile on at least one social network, according to several sources. Their contacts include family, friends and co-workers of all ages.

The advent of the Internet, wireless broadband, laptop computers, smartphones and other complex digital devices has led to many new behaviors in both men and women. Sending and receiving e-mail, for example, something unimaginable for most people 20 years ago, is now virtually universal among Web users.

Baby boomers are avid Internet users. They make up 32.5% of the US adult population and 36% of the adult online population, according to the Pew Internet & American Life Project. On a typical day, boomers account for one-third of all Internet traffic, Pew found. According to Burst Media, nearly two-thirds (62.6%) of these users spent more than five hours a week online.

In its struggle to regain its footing, the US recorded music industry has tried many business approaches, including a la carte downloads, subscription services, ringtones and ad-supported streaming. With the exception of Apple’s successful iTunes Store, no digital music service has delivered enough revenue to create a healthy, well-balanced market.

The portability of content from device to device represents the future of media consumption. However, the devices themselves continue to shift, partially in response to the evolving electronics landscape and partially as a result of changing consumer preferences.

While only a small number of multichannel retailers allow customers to buy online and pick up in-store, a majority of online consumers rate this service as important. Consumers avoid shipping fees, see and touch products before taking them home, and satisfy a need for immediate gratification when the product is in stock.

Many multichannel retailers provide their store employees with Web-enabled point-of-sale terminals to help customers place orders. Others have in-store kiosks that give customers the same capability. The ability to place online orders while in-store reduces the frustration shoppers feel when items are out of stock or part of an expanded assortment not carried by the store. Web-enabled devices also give customers access to product information and user reviews that help them make purchase decisions.

2009 will end with major shifts in social network advertising spending. Facebook, at 350 million users worldwide, is the premier destination for marketers in the US and many worldwide markets. It will surpass its former rival, MySpace, in ad revenues in 2010. In total, marketers will spend $2.2 billion to advertise on social networks worldwide in 2009, with $1.2 billion in spending in the US. In 2010, Facebook will account for nearly one-quarter of all social network ad spending worldwide, up from 20% in 2009.

Spending for US online advertising will decrease in 2009 by 4.6%—the first drop since 2002. However, the slowly recovering economy, combined with basic structural changes in how marketers and the public use media, will lead to Internet ad spending growth in early 2010.

In the consumer packaged goods (CPG) arena, the battle for consumer dollars and mindshare boils down to the basket—what makes it in and what gets left on the shelf.

More than 39 million UK residents use the Internet in 2009, eMarketer estimates. By 2013, nearly 44 million will be online—over 70% of the total population.

More than 39 million UK residents use the Internet in 2009, eMarketer estimates. By 2013, nearly 44 million will be online—over 70% of the total population.

Online holiday season sales will reach $30.0 billion (excluding travel) in 2009, up 5.4% over 2008. Although this is tepid growth compared with the double-digit rates seen for most of this decade, it is a strong improvement over last year’s 5.7% decline and signals a brighter outlook.

Online holiday season sales will reach $30.0 billion (excluding travel) in 2009, up 5.4% over 2008. Although this is tepid growth compared with the double-digit rates seen for most of this decade, it is a strong improvement over last year’s 5.7% decline and signals a brighter outlook.