December 1st 2004

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Interactive TeensThe Impact of the Internet on
Canadas Next Generation
Presented by Steve Mossop
December 1st 2004
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North Americas Fastest Growing Research Company

• Ipsos is the 2nd largest survey-based research
  company in the world, with 600M Euros in
  billings per year.
• Largest marketing research company in Canadaby
  far 100M
• 80 brand awareness in the BC market
• 200 press releases per year
• Offices in 35 countries, 3,500 full-time
  employees.
• 20 offices in 20 cities in North America.
• Fastest-growing company in North America over the
  past 3 years, with organic growth of
• 8 in 2004 (YTD)
• 14 in 2003
• 17 in 2002
• 2,500 clients 6,000 projects per year in U.S.
• Various brands under the Ipsos umbrella
• Ipsos-Insight (Ipsos-Reid, formerly Angus Reid in
  Canada)
• Ipsos-Novaction
• Ipsos-Vantis
• Ipsos-Public Affairs
• Ipsos-Media

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Hypothesis/Common PerceptionsGoing Into the
Research

• Most youth online are technologically advanced,
  and are much more comfortable with technology
  relative to their adult counterparts
• Internet access and usage among teens is
  universal, and part of their daily routine
• Teen online activities exceed adults in both
  number, and depth
• Teens spend their days downloading music, and
  buying music is for grownups
• Teens have a significant discretionary income,
  and are comfortable with ecommerce
• A significant number of teens are doing advanced
  activities online, like posting to online forums,
  listening to radio, downloading tv shows and
  movies, etc.
• When teens grow up, their online experiences will
  result in a largescale shift in online attitudes
  and behaviour
• Tech gadget usage is high
• Parents have a high degree of involvement in
  young teens online usage

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Outline

• 1. Methodology
• 2. Source
• Canadian Inter_at_ctive Reid Report Q2-2004
• 3. Topics Covered
• Online Access
• Online Activities
• Experienced Users
• Ecommerce
• Online Socializing
• Music Downloading Gaming
• Security
• 4. Conclusions/Implications for Marketers
• 5. Topics Not Covered
• ELearning
• In-depth findings

5

• Major Sources
• Canadian Inter_at_ctive Reid Report

6

7

• Reality 1
• Internet access among youth is nearly universal,
  but Internet usage is not

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Internet Access
n1,000, National Sample of Canadian Adults

9
Internet Access in Context
n1,226 National Sample of Canadian Online Youth

10
Internet Usage
16 of adults responded Dont Know to this
question
11

• Reality 2
• Online activities of youth are dramatically
  different from adults and can be summarized into
  three main groupings
• Socializing
• Music
• Learning

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(No Transcript)
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Internet Activities of Adults
14
Top 9 Online Activities of Youth
A few timesa week
73
70
45
30
28
23
22
15
15
Source Q3-2004 Inter_at_ctive Reid Report
(n1,226), National Sample of Canadian Youth
15
Types of Websites Visited
A few timesa week
49
48
28
20
19
18
17
11
10
6
Source Q3-2004 Inter_at_ctive Reid Report
(n1,226), National Sample of Canadian Youth
16

• Reality 3
• Adult Internet users are becoming mainstream, but
  usage and online activities continue to be driven
  by a small group of experienced users. Same goes
  for Youth

17
Level of Internet Expertise
Source Q3-2004 Inter_at_ctive Reid Report
(n1,226), National Sample of Canadian Youth
18
Feelings Toward New Technology
Mean
Agree
I dont like it when people often say things in
an email that they would never say to you in
person
7.0
77 of adults
My parents often warn me about the dangers of the
Internet
7.0
Using the Internet is an important part of my
daily routine
6.1
I dont know how people before me lived without
the Internet
5.1
If I dont find out more about the Internet I
will be left behind
4.5
Id like to have a career or job in new technology
4.2
My parents often ask me to help them with
technology-related things
3.9
I get most of my entertainment from the Internet
4.0
I prefer to talk to people via email than by any
other method
3.6
58 of adults
I often read books and magazines about the
Internet
2.5
(Percentage of respondents)
From Q4-2003 Canadian Inter_at_ctive Reid Report
(n1,000 Canadian adults).
Source Q3-2004 Inter_at_ctive Reid Report
(n1,226), National Sample of Canadian Youth
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• Reality 4
• Teens are not buying online

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Ecommerce Bomb among Teens

• Total teen spending in Canada falls between
  2B-4B/year.
• Only 17 of teens have ever made a purchase
  online.
• Less than 5 buy at least monthly.
• Ecommerce is 20th on list of 20 most frequent
  activities.
• Where are they buying? Ebay.
• Parents credit card the primary source (49),
  followed by Paypal account (17).
• Only 15 of non-buyers indicate they will do so
  in future.
• Lack of credit card, and parents permission main
  barrier.

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• Reality 5
• By far, socializing online is the prevelant teen
  activity

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(No Transcript)
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Online Socializing
Methods of Communication
(Percentage of respondents)
Preferred Method of Communication
n1,226, National Sample of Canadian Youth
Source Q3-2004 Inter_at_ctive Reid Report
24
Online Socializing
A few timesa week
73
70
28
23
11
10
(Percentage of respondents)
Source Q3-2004 Inter_at_ctive Reid Report
(n1,226), National Sample of Canadian Youth
25
Online socializing

• 43 of teens use email every day, 73 at least
  weekly
• 48 of teens use instant messaging every day, 69
  weekly
• 57 use either email or instant messaging every
  day!
• 97 use either email or instant messaging at
  least weekly
• 14 of teens have been asked to meet someone in
  person that they originally met online (20) of
  1517
• 8 have own web blog

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• Reality 6
• Music downloading and entertainment are two huge
  growth categories for youth

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(No Transcript)
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Online Music Downloading

• The Facts
• 66 of teens have downloaded free music, 30 do
  it weekly
• Only 10 have tried a paid music site
• The average number of downloaded songs is
  15/month, but that average is being driven by 6
  who download 50/month
• Of the 66 who have downloaded music, 65 have
  made CDs for themselves, and 24 have made CDs
  for friends/family
• 88 of downloaders still purchase CDs, buying
  1.5 CDs/month
• Parents are a big influence on the 34 who have
  never downloaded
• Itunes coming to Canada
• Music downloading not illegal in Canada

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Online Gaming

• The Facts
• A similar proportion of teens (60) play online
  games against friends or family, and 49 play
  games against strangers.
• The mean number of hours spent is 6.1 per week,
  driven by 5 who spend 21 hrs./week.
• Games like Runescape, Billiards, Diablo,
  Warcraft, Checkers, Starcraft, Neopets and Sims
  are popular, but no game captures over 4 of
  players.
• Gaming just as prevalent among the two age
  groups.
• But twice as many males relative to females in
  category (hours spent by males (8/wk.) compared
  to females (3.6).

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• Reality 7
• Teens are far less concerned about online
  security/privacy, but parents still have a lot of
  control over their online activities.

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Parents Influence on Online Activities
Gap Difference(Youth Parents)
Youth
Parents
-20
A lot of influence
13
A little influence
3
Not very much influence
3
No influenceat all
1
Dont know
(Percentage of respondents)
Source Q3-2004 Inter_at_ctive Reid Report
(n1,226), National Sample of Canadian Youth
32
Parents Activities to Keep Track of Internet Use
Gap Difference(Youth Parents)
Youth
Parents
Give you guidelines/rules about how and when you
can use the Internet
-6
Put computer in area where they can easily keep
track of your use
-11
Place time limits or curfews on your use
-9
Check web browsers history to see what sites you
have been visiting
-5
Install software that stops you from going to
certain types of sites
-1
Read your email
1
3
None
(Percentage of respondents)
Source Q3-2004 Inter_at_ctive Reid Report
(n1,226), National Sample of Canadian Youth
33
Level of Concern With Online Security
Concerned 54
NotConcerned 36
From Q1-2003 Canadian Inter_at_ctive Reid Report.
Source Q3-2004 Inter_at_ctive Reid Report
(n1,226), National Sample of Canadian Youth
34

• Reality 8
• Will Teens turn into their parents online?

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(No Transcript)
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Conclusions/Implications for Marketers/Decision
Makers

• Internet access is by no means universal, even
  among teensneed to cater to both online/offline
  market
• The proportion of heavy Internet users is still
  relatively small
• The offline market will always be there
• Offline media still plays critical role in
  reaching about ½ of todays youth
• While Internet is a critical medium to reach
  youth, it is by no means exclusive
• However, if you want your web property to appeal
  to youth, you need to incorporate popular online
  activities
• Online music,
• Online chatting,
• Online games, and
• Online education
• How?
• Cultivating online communities, to increase
  affinity to the brand How?
• Contests/quizzes, polls
• Clubs
• Bulletin Boards
• Music Downloading as Incentive
• Customized Interactive Online Games (Advergames)
• Make it easier to buy
• Not banner ads though!

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Conclusions/Implications for Marketers/Decision
Makers

• The activities of youth online are dramatically
  different from adults
• But of course they are
• When these teens grow up, I believe they will
  transition their activities to adult online
  activities
• Segmenting youth is critical
• 1214s are dramatically different from 1517s
• Online advanced/expert users are dramatically
  different from newbies
• Boys are far different from girls
• Not all teens are technogeeks
• Face the same tech barriers as many adults
• Not everything needs to be zip, bang, whiz!
• Online expertise has more to do with mindset
  and activities than it does age
• Online marketing materials need to reflect this