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EDGE

CUTTING EDGE MEDIA RESEARCH & EXPERTISE

Personal Media Day – diary study

Technology and innovation are perceived as one of the biggest drivers in economic- and social transformation as well as in consumer behavior changes. Drawing from our previous blog post written by Niklas (available here) about the PESTC-model, people’s ways to social interaction are changing drastically and the main reason to this is technology.

The distribution of media to several different technological platforms is changing the way people consume media. Presenting some simple statistics from Finland, in 2011 Q2, 67% of the Finnish households owned a portable computer, 42% of the Finnish population owned a smartphone and surfing the internet via mobile phones in 3G networks had tripled in two years. 76 % (Q2 2011) of the Finns had read newspapers on the web and in the beginning of 2012 Finland had approximately 170 000 tablet owners, yet increasing and contributing to changes in consumer behavior. The first crucial step in order for the media industry to adapt to the changes taking place is to deepen their knowledge in the consumers’ media usage/consumption behavior and habits. What media is being consumed? How is it consumed; by print, computer, mobile, TV, radio, tablet or other? How much time does the consumer spend on a particular media? Why is a particular media being consumed; for news read, entertainment, other? These are the main questions we within the EDGE Research Group try to find answers to in terms of the Personal Media Day (PMD) research project, part of this year’s Next Media program. How we have done this in practice is the theme of this times blog post.

Diary and survey as methods for data collection

If and when the researcher is interested in relatively precise measures about how often, how long and in which order a person is doing different activities, the researcher should consider research diaries as a method for collecting data. A research diary is in practice, exactly what one understands with the word diary. They can be completely unstructured, or they can be written following some guidelines (e.g. by always answering a certain set of questions, or looking at a phenomenon through a distinct viewpoint. As a more engaging method, a diary can also give more valid and reliable data than, for instance, a survey. These are also the reasons why we chose electronic diaries as method for data collection.

We gave the respondents some questions to answers, but in addition to that, it was up to the respondents in writing a diary in the format they found most suitable. We instructed the respondents to write a diary about their media usage during one week with the questions presented under the first section in mind (i.e. what media is consumed, how it is consumed (print, PC, laptop, smartphone, tablet etc), for how long, and why). Furthermore we asked the respondent to divide his/her day into three parts; morning, day and evening. In this way we can figure out how media usage differs at different times of the day. At the same time, the media day was made more graspable for the respondents as the day was divided into smaller pieces. The diary could be done by a text editing program or a blog.

At the time of writing we’re starting to have all of the diaries collected and in order to get data about the demographics of the respondents we’ve also sent the sample group a background survey. In addition to the diary, a survey was used to collect values and attitudes concerning media usage, estimated expenditure on media and product ownership.

Recruiting respondents

Recruiting material

To get a representable sample, with people from various backgrounds and from different age groups, i.e. a more random sample, we have used different techniques for recruiting. Libraries functioned as the primarily spot for recruiting because we considered libraries effective in reaching people from various demographics.

The libraries also turned out as successful channels for recruiting. For one day I together with Niklas recruited people at the city libraries of Turku and Tampere. The recruiting was backed up by recruiting materials as flyers and posters spread over the libraries and by a note on the website of the city library of Turku.

At the city library of Tampere

The latter (static notes) proved out to be more effective. Can’t figure out why, must have been Niklas’ unpolished shoes, or my bad sense of humor? The recruiting material was then available at the libraries for a couple of weeks and evidently this succeeded in capturing attention and spreading the word as we have respondents all the way to Lapland. We also attended a morning gathering at Åbo Katedralskolan to present our study and to recruit younger attendants. Materials were also handed out to Luostarivuoren Lukio (Turku) and Pargas Gymnasium (all three upper secondary schools).

What’s next?

With summer around the corner, we’re starting to see glances of the sun also here at Åbo Akademi University, School of Business and Economics. This applies as well for the PMD research project. The data gathering phase is over and next up is the analyzing of the data. A quick overview on the gathered data you can identify that oh yes, media usage can in many cases be a complex behavior with various media used simultaneously and on different platforms. However, you also can see patterns of typical media days as media usage often tend to follow a routine- the print paper and TV routine has transformed to its 21st century equivalent. Needless to say, media usage differs a lot depending on demographics. Looking forward to start plough through this media jungle. We will have the final results by the next PMD seminar in June. Till then we at EDGE Research Group want to sincerely thank all of our participants, respondents and cooperation partners.

Until next time, have a nice spring and “Glada Vappen”!

Ron Lindqvist

Tagged Consumer Behavior, Diary study, mediaconsumption, Research

EDGE Media Seminar in Helsinki on May 4, 2012

Media seminar by invitation only.

The seminar is held at GLO Hotel Art, Lönnrotinkatu 29 (Vanha Poli), Helsinki

Friday 4.5. at 9am – 12pm

Please contact Timo Ketonen if you wish to attend.
Email: timo.ketonen@abo.fi

Tagged Antti Hirvonen, Business Model, Content, Crowdsourcing, Elina Yrjölä, Hannu Olkinuora, Masa Peura, Media, Pekka Soini, Sanoma News, Subscription model, Talentum Media, YLE

The changing environment

Professor Vijay Govindarajan said it so well in a Harvard Business School interview (available here). According to him, creating an innovation mindset into an organization requires two things. The first one, and the one I will focus on in this post, is about understanding the changes taking place in the external environment. Understanding those changes, is a pre-requisite, a necessity, something that needs to take place before one can even start to think about new product and service concepts.

In analyzing the external environment, some use the simple PEST-model (or the slightly broader version, the PESTC; Political, Economic, Social, Technological, Competition, and Legal). Usually, major changes in one of these can cause enough headaches within a firm. What makes the media industry so interesting is that currently there are major changes taking place in every single one of these. Big changes, Big opportunities. Let us have a closer look at them.

Social. People’s ways to social interaction are changing drastically. The need for it is by no means novel, but the tools for it, are. We have Facebook, Twitter, Skype, E-mail, chat, and thousands and yet thousands of forums offering a platform for people with similar interest in finding each other. New digital tools for social interaction are by no means an age-related issue. The speed that the elderly are catching up in using various digital tools for social interaction, are tremendous. From 2008 to 2010, the share of Americans aged 65+ that used social networking sites, grew from 7% to 26%! The same development for those aged 50-64, was from 11% to 47%. That is more than a fourfold increase during a period of only two years. Sure, the younger generation seems to be the lead users, but the elderly are catching up fast. At the same time, the share of elderly in our population is growing. According to Statistics Finland, this year there are around 945 000 people aged 65+ in Finland. By the end of the decade, that is in eight years time, this number is about to increase to nearly 1.2 million; an increase of 250 000. By that time, the share of people aged 65+ is actually larger than of those aged 17 or less (21% vs. 20%). At the same time, the household sizes are constantly getting smaller, and hence the number of households increases. From year 2000 to 2010, the number of households grew from 2.295 million to 2.537 million, i.e. almost 250 000 more households during a 10-year interval. Many decisions related to media are made commonly within the household. Thus, a 250.000 increase means 250.000 new sales opportunities.

Technological. Smartphones and tablets. Tablets are not only changing the way we consume media, but also what media we consume and how. This is something worth bearing in mind, tablets are not about surfing the web, they are about consuming content. Tablets are by no means simply a touch screen version of the PC or laptop, they are changing how media is being consumed. Paper was the lean back media, computers made us lean forward, tablets are making us lean back again (see a good presentation by the Economist here). During the following three years, the number of tablets is expected to threefold to 326 million globally. At the same time, the number of smartphones is expected to double, reaching 1.1 billion.

Economic. The major concern here is perhaps that consumers are used to getting digital content for free. At the same time, consumers still value quality content and are ready to pay for it. The interesting question is therefore, where is the line in terms of content quality that makes us want to spend our money on it, instead of spending it on something else.

Competition. The more the consumption becomes digital, the more companies there are competing for customers time and money. At the point of actually making a purchase, the customer is faced with much more options than before; most of which were simply unavailable to the consumer in printed format (or perhaps available, but for a significantly higher price). In addition, within some market segments, the market entry barriers for new businesses are low. This means that new, more innovative, and more customer-oriented players can find their way to the market quicker and easier than before.

Political and Legal. As content is digitalized, so are the customers’ movements in the digital world. This opens up new possibilities in terms of delivering value to the customer, and in offering personalized, more relevant content. The flip side of the coin concerns issues about data security and ethics; is there a limit in how much data a company is actually allowed to collect? At the same time, the combat against free file sharing is getting fiercer. New business models are created in convincing those that are used to downloading content illegally free, to actually start paying for it (e.g. Spotify). The political and legislative issues in the digital world can create barriers, but at the same time open up new opportunities.

These are only some of the changes taking place currently in the media industries. Understanding these changes is only one side of the story, the other side is, how can the firm adapt and take advantage of these?

Within the EDGE Research Group we are this year part of the Next Media program, a project called Personal Media Day. Within this research project, we deepen our knowledge in one of these major changes shaping the media industry, those in consumer behavior. What does a personal media day look like? Is there such a thing as a typical media day? How we actually do it, will be the subject for our next post, so stay tuned.

Niklas Kiviluoto

Tagged Business Model, CEO's dilemma, external environment

EDGE2012 Highlights

EDGE2012 Highlights: The arrangers of EDGE2012 would like to thank all of you who participated and those who commented and cheered for us on Twitter. A special thanks to Keynote speakers Jyrki Ovaska (UPM), Marjaana Toiminen (Bonnier Publications) and Peter Vesterbacka (Rovio Entertainment). Please refer to the Blog post EDGE2012 Highlights on the right.

Tagged Alf Rehn, Angry Birds, Bonnier, business models, Jyrki Ovaska, Marjaana Toiminen, Olavi, Olivia, Peter Vesterbacka, UPM

EDGE seminar on Friday March 16 at 1 pm. For tweets use #EDGE2012 on Twitter

Press info will be held at 12.30 at HHÅA School of Business and Economics. Those present at the press info are Keynote speakers Jyrki Ovaska, President, Paper Business Group at UPM, Peter Vesterbacka, Mighty Eagle at Rovio Entertainment and Professor Alf Rehn. The press info is hosted by Timo Ketonen, Project Manager at EDGE research group and communications people from Åbo Akademi University.

For the press release available in Finnish and Swedish please refer to the Åbo Akademi University website http://www.abo.fi/public/News/Item/item/5428

Welcome to EDGE2012 seminar

Seminar Program

We hope you will join us Friday 16 March 2012 in celebrating our 85-year young business school – Handelshögskolan vid Åbo Akademi – with our traditional spring seminar EDGE with high profile keynotes from our popular speakers.

SEMINAR THEME: Business development in an age of upheaval.

PLACE: School of Business and Economics, Henriksgatan 7, 20500 Åbo.

TIMETABLE: Registration: at 12.30. Seminar: 13.00-16.30 and cocktails thereafter.

PROGRAM: Edge-2012_120x180

HHÅA alumni and the School of Business and Economics at Åbo Akademi University

The Social Web & New Media Concepts


Keynote at the Media+Mark seminar at Aalto University by Timo Ketonen on March 6, 2012 re: Social Media and the change in the Media landscape. The presentation includes a review of Business Models and new Media concepts in Finland and internationally with regard to digital revenue streams.

EDGE

EDGE is a research group at the School of Business and Economics at Åbo Akademi University. The focus of the group is issues surrounding business model innovation and revenue models in industries undergoing fundamental transformations.

EDGE’s role is to support and service innovative business model development to ensure the creation of profitable new business that enables sustained growth, regardless of industry. The goal of EDGE is to serve both large and small firms, from start-up to established corporations.

EDGE stands for:
Evolution – Creativity, Business Model Innovation, Renewal, Change
Design – Business Concept Design, Service Design, Strategy, Branding, Communications, Networks
Growth – Research & Analysis, Performance, Profitability
Entrepreneurship – Start-up, Growth, Technology, Corporate

EDGE research group focus on three research projects in 2012-2014:
1. Personal Media Day (PMD) = Consumers’ change in Media Behavior
2. Disruptive Business Models (DBM) = Media firms’ approach to find new sources of revenue and the process of open innovation
3. Mobile Value Services (MVS) = new advertising solutions combined with a personalized media experience

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