2013 Australian Digital Statistics Compilation

Australian Digital Stats Compilation 2013

Online Shopping

1. The online shopping market in Australia is growing strongly and will account for seven per cent of all retail sales by end of 2013 (Frost & Sullivan’s Australian & NZ Online Shopping Market report, July 2013)
2. Total online spending is forecast to amount to $18.3 billion in 2013, with the average annual spend online per online shopper in Australia at $1,750 (Frost & Sullivan’s Australian & NZ Online Shopping Market report, July 2013)
3. Online sales are expected to continue to grow over the next five years and reach 9.8 per cent of total retail sales by 2017 (Frost & Sullivan’s Australian & NZ Online Shopping Market report, July 2013)
4. The most regular online shoppers are those earning over $80,000, and those aged 30 to 44 (EMMA, Sept 2013)
5. Shoppers in the 30 to 60 age bracket earning more than $80,000 represent the top 33% of all online spending and are the biggest online shoppers, spending nearly double the average spend (EMMA, Sept 2013)
6. Over the past two years the proportion of online shoppers in Australia shopping on local sites only increased from 21% in 2011 to 25% in 2012 and 29% in 2013
7. International online retailers remain a major threat to domestic retailers with almost as many (six in 10) shopping online with international retailers as with domestic retailers (seven in 10) (EMMA, Sept 2013)
8. 79% of Australians who shop online currently purchase from overseas sites to some extent, and an estimated 45% of Australian online expenditure goes to overseas-based web-sites (Frost & Sullivan’s Australian & NZ Online Shopping Market report, July 2013)
9. One in three (33 per cent) Australian consumers have abandoned an online purchase due to the delivery options not being suitable. Some 43 per cent of customers have abandoned a purchase because of payment options and fees being unsuitable. (Galaxy Research, July 2013)
10. While more than three quarters of Australians (76%) have shopped online in their lifetime, more than three quarters (86%) have visited a shopping centre in the last month (EMMA, Sept 2013)

Online Retail CustomersWhat the data is telling us: As Australian retailers are increasingly investing in eCommerce and digital – Australian consumers are increasingly turning to local sites to purchase online. However despite growth in the domestic market, research shows that Australian consumers are still buying overseas as more US and UK retailers target Australian shoppers. For local retailers the big opportunity is to focus on delivering an omni-channel approach as opposed to operating their eCommerce channel as a silo / separate business as research suggests the majority of Australian consumers who have bought online are also actively shopping instore.

Mobile & Tablets

11. Telstra’s latest Smartphone Index shows Australians have one of the highest rates of smartphone ownership in the world. We are behind China and South Korea, but ahead of the US and UK (Telstra’s third annual Smartphone Index, October 2013)
12. Smartphone penetration has doubled since 2010, reaching 72% of total mobile phone users (up from 36% in 2010), and continues to grow (Telstra’s third annual Smartphone Index, October 2013)
13. 71% of connected smartphone users access the internet on their smartphones on a daily basis (up from 56% in 2012) (Telstra’s third annual Smartphone Index, October 2013)

14. Young connected smartphone users aged 16 to 24 will spend the equivalent of a month on their smartphones each year (29 days) (Telstra’s third annual Smartphone Index, October 2013)
15. Women aged 16+ will spend an average of 21 days a year on their smartphone, while men will spend around 15 days a year. That’s not even taking into account the time spent on a tablet or a computer (Telstra’s third annual Smartphone Index, October 2013)
16. Australians are using their mobile phone as the entry point to their path to purchase, with 79 per cent using their devices to browse products on websites or apps (Telstra’s How Mobility is Changing the Rhythm of Australian Retail Report, October 2013)
In-store mobile device17. The top reasons consumers are using their mobile device in a retail store include checking out competitor prices (22%), and to read product reviews (19%)

18. Of those who have used their mobile device in a store, 51 per cent say it has changed their purchase decision.
19. Over the past 12 months, 25% of online Australians have purchased via a tablet device, whilst 23% have done so via a mobile device (Telstra’s How Mobility is Changing the Rhythm of Australian Retail Report, October 2013)
20. Retailers considering offering mobile payments in their store should be encouraged by a strong willingness of Australians to give it a go with 61 per cent of consumers very willing or somewhat willing to pay with their mobile in a store, compared with 36 per cent who would not consider it (Telstra’s How Mobility is Changing the Rhythm of Australian Retail Report, October 2013)
21. Tablet ownership/usage has risen sharply with almost one in two (49%) of smartphone owners also owning a tablet (up from 39% in 2012) (Telstra’s third annual Smartphone Index, October 2013)
22. Smartphone penetration is anticipated to reach 93% penetration by 2018, whilst household tablet penetration is anticipated to reach 80% by 2018 (Frost & Sullivan’s Mobile Device Usage Trends, August 2013)
23. Apple’s market share in Australia of the tablet market has dropped from 69% to 60%, and it is expected to fall significantly lower over the next few years (Frost & Sullivan’s Mobile Device Usage Trends, August 2013)

What the data is telling us:

Whilst Australians have one of the highest rates of mobile penetration in the world, companies are still slow to invest in mobile. In fact according to a recent IPSOS / eMarketer report mobile ad spend lags behind that of comparable markets (refer to the graph below). In addition Google research suggests 60% of large Australian advertisers do not have a mobile website.

Not only however do marketers need to think about mobile and the role it plays in the path to purchase / post purchase but marketers also need to consider the role mobile plays within the broader multi-screen strategy / multi-channel strategy as research shows around two in five people who start to research products on smartphones go on to complete purchases on desktop or in person.

Mobile Ad Spend Australia

Social Media 

24. 65% of internet users have a presence on social media sites such as Facebook, Twitter or LinkedIn (Yellow Social Media Report, May 2013)
25. Australians are one of the highest users of social media worldwide. For every hour an Australian spends online 14 minutes are spent on social sites, nine on entertainment and four minutes shopping online (Experian, April 2013)
26. There are 12 million active monthly Facebook users in Australia, 9 million users access the site daily, 7.3 million do so via a mobile device (SMH, August 2013)
27. Facebook dominates the social media space, capturing 95% of social media users. On average, Facebook users spend more than seven hours a week on the site (Yellow Social Media Report, May 2013).
28. Some 45% use social media networks at least every day, up from 36%, with 17% using it more than five times a day (Yellow Social Media Report, May 2013)
29. Australians access social media all throughout the day, with 37% of social media users checking their networks first thing in the morning and 42% just before bed (Yellow Social Media Report, May 2013)
30. There are nearly 3 million Twitter accounts in Australia (Business Day, Oct 2013)
31. 12% of Australian social media users reported that they had stopped using some sites during the past year, down from 13% last year. Of those Australians who said they’ve dropped a social media site, 45% reported they had stopped using Twitter (Yellow Social Media Report, May 2013)
32. Smartphones are the most popular device to access social media with. In the past year, the number of social users accessing sites on their smartphone has grown from 53% to 67%, while those accessing it on a laptop dropped from 69% last year to 64% this year (Yellow Social Media Report, May 2013)
33. 66% of consumers who follow brands on social media do so for discounts (up from 57% in 2011), 56% do so for giveaways and 49% for product information (Yellow Social Media Report, May 2013)
34. 63% of online consumers in Australia indicated that in the past month they have shared some type of content on social media sites. Women (69%) appear somewhat more likely than men (57%) to have shared some content in the past month. (IPSOS, Sept 2013)
35. LinkedIn is now used by 3.7 million Australians, Pinterest has 1.7 million Australian users & YouTube over 11 million Australian users (Adcorp Population Analysis, May 2013)

What the data is telling us:
Australians interest in and usage of social media seems to continue to tick along showing no real signs of decline. As a large number of consumers are now accessing social media via their mobile device marketers should be considering how to take advantage of the social + mobile opportunity.

Online Advertising
36. Online advertising expenditure in Australia in the past year to 30 June has leapt 14.6 per cent to $3.6bn, according to the latest Interactive Advertising Bureau (IAB) figures (CMO, June 2013)
37. Over the first six months of the year total online advertising exceeded free-to-air television spending for the first time since the IAB report began in 2002. According to the IAB, online expenditure was valued at $1.88bn against $1.8bn on television (CMO, June 2013)
38. Mobile spend continues to outpace other categories in terms of growth, increasing 190 per cent year-on-year. Mobile spend reached $45.9m and 58 per cent was tablet-based (CMO, June 2013)
39. Video display advertising is also on the rise, increasing by 56 per cent year-on-year in the June quarter to $35.7m (CMO, June 2013)

What the data is telling us: Whilst digital advertising has now surpasses TV advertising for the first time ever, Australian businesses are still investing a disproportionate amount into traditional advertising vs. digital given Australians spend more time engaging with the web vs. any other medium.

Video: Internet Statistics Australia (eCommerce 2013)

Galaxy Research, July 2013 – http://www.afr.com/p/tech-gadgets/five_reasons_your_customers_don_8PwxkBRExFef4JCFQmy8rO
Frost & Sullivan’s Australian & NZ Online Shopping Market report, July 2013, http://www.frost.com/prod/servlet/press-release.pag?docid=281435628
EMMA Data, September 2013 –http://www.adnews.com.au/adnews/online-retail-not-just-about-price-and-marketers-should-focus-on-big-spenders
Telstra’s third annual Smartphone Index, October 2013 – http://www.telstra.com.au/abouttelstra/media-centre/announcements/shopaholics-get-smartphone-savvy.xml
Telstra’s How Mobility is Changing the Rhythm of Australian Retail Report, October 2013 – http://www.telstra.com.au/business-enterprise/download/document/business-enterprise-teg1398_mobility_retail_white_pages_v08_hr_singles.pdf
Experian Social Media Research, April 2013 – http://www.marketingmag.com.au/blogs/the-state-of-social-media-usage-in-australia-41342/#.UmnfQPmkzz4
Google Mobile Statistics, June 2013 – http://www.adnews.com.au/adnews/google-australian-advertisers-missing-out-through-mobile-site-fail
Business Day, Oct 2013 – http://www.businessday.com.au/business/twitter-has-growth-plan-for-australia-20131004-2uzp7.html
Mobile Ad Spend, Sept 2013 – http://www.bandt.com.au/news/digital/m-c-saatchi-advertisers-failing-to-capitalise-on-o
Online Ad Spend, June 2013 – http://www.cmo.com.au/article/523459/australian_online_ad_spending_hits_3_6bn_iab/
Yellow social media report, May 2013 – http://about.sensis.com.au/IgnitionSuite/uploads/docs/Yellow%20Pages%20Social%20Media%20Report_F.PDF
IPSOS Research, Sept 2013 – http://ipsos.com.au/majority-of-australian-internet-users-share-on-social-media-sites/
Frost & Sullivan Australian Mobile Device Usage Trends 2013, August 2013 – http://www.frost.com/prod/servlet/press-release.pag?docid=282630973
AdCorp Population Analysis, May 2013 – http://www.financialstandard.com.au/news/view/33355466
Social Media Users Australia, August 2013 – http://www.smh.com.au/digital-life/digital-life-news/facebook-checked-by-9-million-australians-every-day-20130820-2s7wo.html

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