In 1984, Motorola unveiled the first cellular phone: nicknamed “the brick,” it weighed two pounds, offered a half-hour of talk time per battery charge and sold for $3,995. In twenty-six years, mobile technology has transformed at warp speed. Not only are most devices the size of matchbooks, but phones are inexpensive and readily available. Some boast a battery life of up to a week, and features like games, unlimited texts, and Internet are standard. Through texting, many companies have found a new avenue for marketing to consumers. Some users have even started to shop online –with their phones. FGI turned to SmartPanel to get insight in this trend.

Among those surveyed, 59.67% reported that their phones had Internet, whereas 40.33% did not. When we drilled down the data by provider, the percentage of customers with Internet sometimes jumped as high as 75.9% (with Sprint) or 70.9% (with AT&T).¹ Across the board, customers believed the Internet connection on their phones was secure. When asked if they felt safe using mobile Internet to make a purchase, 87.93% answered “yes.” Customers’ overall faith in the web that they accessed through their phones may help explain the purchasing habits of those who used the technology to shop.

However, not as many customers were shopping online with their phones as their level of comfort might portend. As many as 67.6% of respondents said they did not use their phones for online purchases. Even among mobile customers who had Internet, the number of respondents who shopped online through their phones was relatively low. Nevertheless, the 32.4% of users who said they did shop online were making purchases in a range of categories.

Most (81.03%) were buying apps for their smartphones. Yet respondents also purchased other products, including electronics, clothes, shoes and accessories, books, food, and household items. Some said they also looked up information about what cars to buy. The industries that dominated were fashion, books, electronics and food. All of this data begs the question: who is the customer here?

The majority of those who shopped with their phones, up to 67.2%, were male. 32.8% were female. When women did use their phones to make purchases, they spent most of their money on household goods or on clothes, shoes and accessories. Men, meanwhile, spent a fair penny on food, books and electronics.

A breakdown in terms of income revealed even more about these mobile shoppers. Nearly two-fifths were in an income bracket between $75k and $100k. One fifth was in the bracket of $100k or more. A little over 30% made between $20,000 and $75,000 a year.

No matter who was shopping, customers tended to use their phones for small purchases: 43.1% of those surveyed said they spent less than $50 per month, and 24.14% reported that they spent between $51 and $100. A few said that they spent as much as $200-$300 on purchases through their phones. Among these, most were spending money on food (33.3%), automotive goods (30.0%), or clothes and accessories (27.8%).

Ultimately, the diversity of purchases that customers made through their phones –buying not just apps but tangible goods and services –indicates that this trend may influence how companies adapt their marketing plans to respond to mobile technology. Multiple industries may feel the effects if mobile online shopping grows more popular. One thing is for sure: both mobile Internet and online shopping are here to stay. As the former becomes more ubiquitous, the tendency to use phones for online purchases could increase, or at least stay steady. Further research would reveal even more insight into this possibility.

1. We wanted to know what mobile providers respondents relied on and what features were on their phones. We found that the leading providers were Verizon and AT&T, while T-Mobile and Sprint claimed a smaller –though substantial –share of the market.

We’ve all seen eye-popping statistics about the growth of social media. They read like this…

• “If MySpace was a country, it would be the 5^th largest in the world.”
• “In 2006 there were 2.7 billion Google searches per month; today, there are 31 billion.”
• “The first commercial text message was sent in December of 1992, now the number of text messages sent every day exceeds the population of the planet.”

And the list goes on. To be sure, there is a tremendous amount of online activity, but does it reach your target market, and more importantly, does it influence them? In our latest TrendTruth, FGI Research set out to determine the current reach and influence of social media’s newest star, Twitter.

Twitter is a simple social networking channel whereby members can “Tweet” about themselves, and tune in to other Tweets using any device that can access the Internet. Twitter is making its mark on the Internet this year, boasting just over 5 million members. However, recent media studies indicate that Twitter’s audience retention rate currently lags behind Facebook and MySpace. So, while Twitter’s long term audience size is unclear, FGI Research sought out to understand a few critical things about today’s Twitter audience. Among other things, we asked of Twitter users the following: 1) who do you follow, and 2) do they influence you? Our research yielded several compelling findings.

Among Twitter users, over 80% actively follow other people. The majority of people they follow are friends, family members and celebrities. However, a significant number of Twitter users also follow businesses (38%), other organizations (23%) and political figures (29%). If these trends hold during Twitter’s audience growth phase, Twitter may become a table-stakes communications channel for businesses and other organizations to reach their target markets. But will this channel influence their target markets?

Among Twitter users who follow other people and organizations, the channel does appear to have an emerging, albeit not overwhelming influence on their opinions and purchase decisions. Below are the top two box (high influence and very high influence) percentages for several important categories:

• 26% are influenced in their selection of restaurants
• 23% are influenced in their purchase of electronics
• 20% are influenced in their political opinions
• 17% are influenced in their purchase of household goods
• 16% are influenced in their purchase of groceries
• 16% are influenced in their purchase of clothing
• 14% are influenced in their purchase of automobiles

Of course, every business and organization is different with respect to their products, services and target audiences. Some industries must implement Twitter initiatives more quickly than others. When determining if your audience is right for Twitter, a simple first step should be a demographic analysis of Twitter users. The chart below provides a breakout of Twitter users by age, income, and gender.

There is a lot more data and insights to address in this latest installment of FGI Research’s TrendTruth. Stay tuned for my analyses and insights. And, feel free to post your thoughts, ideas and requests for additional analytics and insights around this critical new communications channel.

When FGI Research asked women what they thought the most effective message in advertising geared toward them was, the results were quite clear.  33.67% of respondents thought that the most effective advertising showed that the “product or service will save them time and/or money”, and 23.91% thought that “showing the usefulness of the product or service” was the most influencing.  Surprisingly, only 9.43% of respondents thought that “showing how the product or service will benefit their family” would send the most enticing message, and the two least appealing campaigns showed how a product or service would “make life easier” and portrayed the product or service as having “high quality and value”.

Advertisers would be wise to use humor to get through to women, but not at the expense of men.  43.8% of women said that ads that are funny appeals to them most, but only 2.4% of women showed interest in ads that “make fun of men”.  In addition, women were attracted to ads that “empower women” and “trigger an emotional response”; while only a minuscule number of women thought that a “sexy” ad would get their attention.

We polled a significant number of respondents who were nationally representative in terms of their demographics using our tested method, known as iGAGE.  Our study showed that 10.3% of married couples, with at least one working partner, were in long distance relationships.  Of these, 70.83% said that the separation was due to the U.S. economy.  Interestingly, respondents over the age of 30 were much more open to the idea of a long distance relationship than those ages 21-29.  Of those who said that they’d be willing to live apart, 86.4% were over age 30.  Exploring this further, we discovered that the majority (62.2%) of respondents would only be willing to maintain this type of relationship for less than 3 years.  Finally, although 50% women said that they would live in a long distance relationship for ‘as long as necessary’ only 19.6% of men agreed.

Finally, FGI Research discovered some interesting ways in which couples keep their lines of communication open during separation.  Social media has emerged as a viable way for married couples to keep up with each other.  Our survey showed that 52.2% of these married couples use social media to keep in touch with their spouse.  The most popular site for communication for this purpose is Facebook (40.4%), followed by MySpace (23.4%) and Twitter (8.5%).  Surprisingly 72.3% of these social media users are between ages 30-54.  This is an unexpected shift in usage by age for media outlets that were once almost exclusively dominated by the 18-24 year old group one year ago.

If the job market continues to decline, or fails to improve in the near future, will more couples start considering long distance relationships as a means to maintain financial stability?  FGI Research would like to hear what you think about the matter.

Of those who responded, 83.92% said they had qualified and used Financial Aid.  Respondents were asked to share all forms of financial aid that they received for their education.  The majority of this aid came from Stafford Loans (76.98%), followed by Perkins Loans (36.51%) and then private loans (29.37%). While most respondents were female, compared with male respondents there was an almost equal percentage of both genders who accepted Financial Aid. Also, respondents receiving financial aid were not confined to one ethnicity, gender, or age range, making it apparent that this trend has affected multiple demographics due to the country’s economic downturn.

The subject of student loans has also hit social media outlets.  Facebook users are creating various groups, notes, and blogs to discuss the issue with others.  Respondents also cited Youtube as being a commonly used source of information concerning student loans.  Of those who turned to social media as an educational tool to learn about financial aid, 34.27% of respondents cited Facebook and 23.08% used YouTube.  It’s not just students using social media to discuss the issues surrounding Financial Aid.  In June 2009, Congresswoman Nancy Pelosi posted a note on Facebook with information to make students aware of the many benefits available to help them manage their student loans.

Approximately half of our respondents are currently still paying off student loans so, not surprisingly, 81.62% of them reported that having the loans has affected their standard of living.  According to the survey, 65.03% reported that student loans have affected small spending habits regarding leisure activities, food and household purchases; 39.86% said loans have prevented travel; and 31.47% said they have postponed major milestones such as marriage, starting a family, or purchasing a house. If the economic downturn is prolonged, the question remains as to how to reap the benefits of higher education without being negatively affected by the backlash of student loan payments in the future.

Of people who do DIY projects regularly, 28.29% report doing more DIY projects now than they did 12 months ago.  The frequency of people doing DIY projects is not only increasing because of the educational opportunities on the internet, but also because of the downturn in the economy.  In fact, 32.95% of DIYers said that they do more DIY projects specifically because of the down economy.  Furthermore, 57.75% of people who do DIY regularly said that the main reason why is that it is less expensive than hiring a professional.

Our analysts also looked at some differences in DIY preferences in terms of gender.  The majority of respondents who reported to do ‘light DIY’ projects were women (69%); as opposed to those who said they do ‘medium and heavy’ levels of DIY, which were almost twice as frequently male.  Furthermore, women, most frequently performed 1-2 DIY projects in the past 12 months, but a majority of males reported doing 3-4 and 5+ projects in that time.  In addition, the reasons why our respondents do DIY projects differ between the genders.  24.6% of those who said that ‘completing DIY projects gives me a sense of satisfaction’ were male.  Overwhelmingly, of those who said their main reason was that it was ‘less expensive than hiring a professional’ and that they ‘enjoy learning how to do DIY projects’, were women.

It is important to note the differences in appeal to both men and women when thinking about the DIY market.  The main motivation behind why a woman purchases DIY products may be to save money or learn a new skill; whereas a male consumer may simply be motivated by the sense of satisfaction he gets with a job well done.  In both cases the trend is the same: as long as the economy stays down, people will be motivated to use social media, and learn to ‘do it themselves.’

The impact of this news on social media was huge; FGI Research noticed a sizeable spike in blog traffic surrounding this subject and Google Trends rated the term ‘Cash for Clunkers’ ‘Volcanic’ as it earned a number one spot on their most frequently searched list.  Although this trend is spreading rapidly on the internet, the question for automakers is:  Is this social media trend as ‘volcanic’ for all consumers, or is there a difference, in awareness when consumer demographics are considered?

FGI Research conducted an independent study this week on the impact of “Cash for Clunkers” on the purchasing habits of nationally representative consumers.  Our results were quite surprising.  82% of respondents said that they had heard of the government program.  We also found that the awareness of this program was impacted slightly by some demographic factors; for example, 70% of Hispanics said they had heard of this program, as opposed to 84% for non Hispanics.  There was also a significant drop in the awareness of people ages 31-34 (57%) when compared to the average respondent awareness (87%).  The highest two age groups in terms of awareness are 35-44 and 65+.

The future looks brighter for the auto industry this year as a result of “Cash for Clunkers”.  Only 12% of respondents said that they had bought a car in the past six months, but 23% of respondents said that they planned to buy a car in the next six months.  Of respondents who had not bought a car in the past six months, and had not heard of “Cash for Clunkers” before taking the survey, 17% said that they were more likely to buy a new car after learning of the program.  It’s simple to see what a tremendous impact this government program has had on the American consumer in terms of new car purchases.  The chart below highlights the sentiment of our respondents on the subject of “Cash for Clunkers.”

FGI Research has concluded that: 51% of Americans believe that Social Media sites, like Twitter, affect the news. National news networks like CNN or FOX news use Twitter regularly to report how the country feels about different topics. This extremely interactive forum for generating immediate feedback is a quick and easy barometer for the media to interpret the sentiment of a large sample of Americans. 28.6% of all respondents said that they use social media sites, like Twitter, to follow the news; and of those, 45.8% said that they find the same amount or more news on social media sites than they did last year.

It’s not a stretch to say that the increased attention in the national news has boosted Twitter’s membership. According to our study, Twitter is growing: 17% of respondents, who are not currently account holders, say that they plan on creating an account within the next 6 months. This means that, according to our data, Twitter is growing faster than MySpace, YouTube, FriendFeed, LinkedIn, and Flicker. In fact, microblogging is becoming a break out form for reaching large audiences in an inexpensive way to make updates in real time. It’s easy to see why some companies have invested in full time monitoring of their brand in social media.

FGI Research programmed and hosted an independent study this week to explore how much influence these conferences, and other marketing strategies used by Apple, have on the brand awareness and purchasing behavior surrounding the iPhone. Over 90% of all respondents said that they were familiar with the iPhone brand and 24% of people who had purchased a smart phone in the past 6 months, bought an iPhone. It is no surprise that younger people and people with higher income have higher brand awareness when it comes to the iPhone. For respondents, ages18-24 and ages 25-44, awareness is near 94%, compared to respondents ages 45-65+ where awareness drops off to 87%. In the past 6 months, respondents ages 23-44 purchased three times as many more iPhones than the 45-65+ age group. Likewise, respondents who earn less than 50k have an 87% awareness of the iPhone brand, as opposed to 93% awareness from those who earn more. Respondents who earn more than 50k have purchased 2.5 times the number of iPhones in the past six months than those who earn less.

Apple’s social media marketing efforts have been put to good use to gain the most viewership for their ideal audience. Apple has a strong presence on the web, including but not limited to personal networking sites like Facebook and Myspace, blogs, and YouTube where they post tutorial videos. Young professionals, with a taste for new technology, respond well to this kind of corporate communication. With targeted marketing efforts like this, it’s easy to see why Apple is dominating the SmartPhone market in just over two years after releasing their first phone.

In an effort to gauge the level of concern the average American has about his or her retirement, FGI Research conducted an independent survey entitled, “Consumers in Crisis.” The survey was designed to identify and measure how American consumers are reacting to changes in the economy. We asked 1500 respondents, with demographic qualities that reflect the 2000 census data, for their opinions. A clear majority of the seniors, whom we contacted, voiced concerns about their financial futures. In fact, the study revealed that 56.3% of seniors (aged 65+) are worried about having enough money on which to retire. As noted in the 60 Minutes report, “Many [seniors] fear they will never get to retire.”

Seniors today aren’t the only ones interpreting ill omens. When asked about their personal finances, 49.7% of all respondents said that their financial situation has ‘gotten worse than it was a year ago.’ So, what is the answer for those Americans who are struggling to weather the financial storm? 62.9% of those surveyed are resolved to save more money in the next twelve months. Reflecting recent events, 53.2% believe that a government-insured savings account is the safest place for their investments, highlighting perceptions of economic instability. Indeed, the public is worried and looking for a safe investment. Companies competing for business in today’s economy would do well to address this issue in an effort to reassure consumers. Establishing, or in some cases, re-establishing, trust is a significant step along the path toward brighter futures.