GFK Vodafone Ropo Study 2010

GfK Consumer Tracking Research Online, Purchase Offline (ROPO) – Mobile & DSL March 2010
Media Efficiency Panel Project

Research Online, Purchase Offline (ROPO)
The role of the internet in the decision process for mobile & DSL
GfK Panel Services
Agenda
1. Methodology and Objective
2. Results
3. Key Findings
Project Overview & Key Objective
The role of the internet in the decision process

for mobile & DSL contracts
Single Source Data

Clickstream Questionnaire
• Internet usage behaviour in private • Primary research among panelists of
households in Germany MEP
• Source: Media Efficiency Panel (MEP) • Source: Media Efficiency Panel (MEP)
→ How does the research process looks like for consumers

who sign a mobile or DSL contract online or offline?
Research Elements
Clickstream
– Source: Media Efficiency Panel (MEP) by GfK, representative for online population
– N= 16,022 panelists (with ongoing online measurement from July – Oct 2009)
– Measurement of online behavior:
– Panelists installed browser plug-in on all home PCs to capture individual
traffic: Log-in screen when browser is launched.
– Plug-in captures visits, page impressions, keywords & ad impressions/ clicks
(display & search)
Questionnaire
– Survey (DSL & mobile & contracts) among panelists in cw 48/49 2009 (N= 23,887)
– thereof 275 DSL-buyers and 801 mobile buyers with purchase from July – Oct 2009
and ongoing online measurement up to 12 weeks before purchase
4 19 October 2010
Definition Online Research
– Analysis of online research process is based on observational data

– Definition Online Research: A consumer visited at least one relevant websites
and/ or entered at least one relevant keyword at home
Research
online
Search Website
– Basis: 3,625 search terms, defined by iProspect, – Basis: 554 websites, defined by project team
Vodafone, Google and GfK
– Whitelist included telecommunication only sites
– Exact, phrase & broad match to keywords that (e.g. eplus.de) as well as more general websites
panelists entered (e.g. amazon.de)
– Manual review by Google team to delete wrong – To exclude non-telco sub-domains site title of
keywords (e.g. eplus: “netzabdeckung eplus” general websites were scanned with keyword list
ok., “nikeplus” or “sofortrenteplus” excluded) (e.g. exclude amazon.de/bücher)
5 19 October 2010
Agenda
2. Results
3. Key Findings
Internet is main source of information in both product categories,

mobile and broadband. Approx. 1 offline source is used.
Base: mobile buyer, DSL buyer
7
Sources for Information
Mobile Buyer DSL Buyer

internet* 59% internet* 49%
shop of the net operator 28% shop of internet provider 19%
friends/ relatives 18% friends/ relatives 26%
article in newspaper/ magazine 9% article in newspaper/ magazine 11%
others in the same household 8% others in the same household 5%
Requested information from operator 5% Requested information from provider 12%
Ø 1.5 Ø 1.6
called a net operator 5% called a internet provider 12%
sources sources
Ad in newspaper/ magazine 5% Ad in newspaper/ magazine 7%
Mailing from a net operator 4% Mailing from a net operator 10%
Radio/ TV 3% Radio/ TV 5%
company/ employer 2% company / employer 2%
sales staff of a net operator 1% sales staff of a net operator 2%
0% 10% 20% 30% 40% 50% 60% 0% 10% 20% 30% 40% 50% 60%
7 Base: Mobile buyer, DSL buyer 19 October 2010

* “internet” is based on observational data,
other sources based on survey data
Approx. one third of internet users report that the contract was
signed online.
Base: mobile buyer, DSL buyer with internet access
8
Sales Channel
Mobile Contract DSL Contract
online online
31% 36%
69% 64%
offline offline
8 Base: Mobile buyer, DSL buyer with internet 19 October 2010

access at home
31% of all contracts were made online. For another 37% consumers
researched online first before signing the contract offline.
9
Research…
Mobile Buyer
Online Offline
31% online conversions: Todays

Purchase...
Online 22% 9%
basis for online marketing
37% 32% 59% of contracts: pure online

Offline
conversions plus ROPO contracts are
more appropriate basis to reflect the
full value of online marketing
9 Mobile Buyers/DSL buyers, internet population, Please note. Consumers with at least one 19 October 2010
research up to 12 weeks before purchase, relevant website visit and/ or search query are
considering a 30-day-Black-out-Period assigned to “research online”
37% of mobile & 29% DSL buyers research online before buying
offline; the internet is more impactful than the online sales suggest.
10
Research… Research…

Online Offline Online Offline
Purchase...
Purchase...
Online 22% 9% Online 20% 16%
Offline 37% 32% Offline 29% 35%
Among post paid contracts the share of ROPO consumers is even

higher. The ROPO segment is also the most valuable one (+16%).
11
Research… Research…
Mobile Buyer Mobile Buyer

Post paid - % Online Offline Post paid - ARPU Online Offline
Index: Index:
Purchase...
Purchase...
Online 26% 8% Online

90 79
Index: Index:
Offline 41% 25% Offline
116 91
The average online research process takes approx. 6 weeks (same

for mobile & DSL).
12
Online Research Process: Duration
Ø 44 days 41% Ø 40 days

35%
24% 22%
22%
19% 19% 18%
1-2 weeks 3-4 weeks 5-8 weeks 9-12 weeks 1-2 weeks 3-4 weeks 5-8 weeks 9-12 weeks
12 Mobile Buyers/DSL buyers, internet population, 19 October 2010

research up to 12 weeks before purchase,
considering a 30-day-Black-out-Period
Pure online decision process is slightly longer than process of

consumers who research online and purchase offline.
13
Online Research Process: Duration
Mobile - Ø in days DSL - Ø in days
48
44 43
42 40 38
All buyers ROPO pure online All buyers ROPO pure online

Approx. ½ of mobile and DSL consumers use a search engine in the

decision process.
14
Online Research Process: Websites & Searches
59% 57%
49% 48%
31%
23%
Research online Website visit Search engine usage

Mobile buyers visited 4.2 websites, DSL buyers 3.2. Data for mobile
confirms that decision is made based on price or hardware.
15
Ø number of unique domains visited number of unique domains visited
0 1 2 3-4 5+
Mobile Buyer
Total 4,2 29% 18% 25% 28%
4%
Brand 1,3 30% 40% 16%
10%
visit a relevant
website up to Generic 2,6 10% 32% 23% 19% 16%
57,2% 12 weeks before 4%
purchase Hardware 1,0 51% 27% 10%
7%
Price Comparison 1,3 50% 28% 9%
Tarif 1,0 52% 26% 10%

3%
DSL Buyer Total 3,2

0 1 2 3-4 5+
37% 21% 21% 20%
39% 22% 10% 18%
Brand 1,5 26% 36% 20% 12% 6%
27% 41% 18%
visit a relevant
Generic 2,1 10% 47% 15% 19% 9%
website upto 10% 15% 7% 9%
48,0% 12 weeks before
Hardware 0,9 45% 37% 6% 11%
purchase 45% 37%
Price comparison 0,6 60% 28% 8% 2%

8%
60% 28%
Tarif 0,6 60%

60%
28%
28%
3%

Differences across segments are rather small concerning usage of

(unique) websites.
16
Online Research Process: Websites
Mobile - Ø Websites DSL - Ø Websites
5,2
4,2 3,6 4,2
3,2 2,5
All buyers ROPO pure online All buyers ROPO pure online

On average mobile buyers made 15.5 search queries while DSL

buyers enter 7.8 search queries.
17
Ø number of search queries number of search queries
0 1 2 3-4 5+
Mobile Buyer
Total 15,5 18% 13% 16% 53%
Brand 2,1 59% 13% 7% 9% 13%
search for relevant Generic 8,0 28% 15% 11% 18% 28%
31,0% keywords up to 12
weeks before purchase Hardware 6,8 46% 11% 7%7% 30%
2%
Price comparison 0,5 91%
3%
94% 2%
Tarif 0,4
2%
DSL Buyer Total 7,8

0 1 2 3-4 5+
22% 16% 24% 38%
Brand 3,0 46% 29% 13% 8%

5%
search for relevant Generic 3,8 30% 14% 11% 19% 25%
keywords up to 12
22,9% weeks before purchase Hardware 1,2 75% 5% 6%
8% 6%
Price comparison 0,3 84%

8%
2%
Tarif 0,2 92% 5%

2%

Almost 50% of those who research online and purchase offline

(ROPO) use a search engine during the decision process.
18
Online Research Process: Search Engine Usage
Mobile – Search DSL – Search

Engine Usage Engine Usage
60%
48%
47% 45%
ROPO pure online ROPO pure online

Users who research online & purchase offline enter a high number of
queries during the process, esp. when researching for mobile.
Base: mobile buyer, DSL buyer with search engine usage
19
Online Research Process: Search Queries
Mobile - Ø Queries DSL - Ø Queries
19,9
12,1 11,5
4,9
ROPO pure online ROPO pure online

Generic search terms dominate the research process. As DSL is less

complex users start with generic search before entering brands.
Base: mobile buyer, DSL buyer with search engine usage
20
Online Research Process: Search Queries
% %
100% 100%
14% 9% 14% brand
19%
80% 80%
14% 49% 49%
39%
36%
45% hardware
60% 60%
40% 40%
15% 17%
67%
50% 52%
20% 41% generic 20%
35% 34%
0% 0%
1st third of 2nd third of 3rd third of 1st third of 2nd third of 3rd third of
process process process process process process

For both products, mobile and DSL, online touchpoints dominate the
research process - but media mix often is focused on offline media.
21
Touchpoints* Mobile Decision Process Touchpoints* DSL Decision Process

(1.5 contacts per offline source, 4.2 online (=number of (1.5 contacts per offline source, 3.2 online (=number of
unique websites)) unique websites))
internet
internet
offline
(e.g. call centre,
offline shop, friend, TV,
(e.g. call centre, magazines etc.)
shop, friends, TV,
magazines etc.)
search
search
21 * assumption: 1.5 contacts per offline touchpoints. Online. 4.2 (=# of unique websites) 19 October 2010
Agenda
2. Results
3. Key Findings
Key question for today’s marketing mix: Is the media mix following
the touchpoints in the consumer decision making process?
23
word of mouth
websites
search engine shop
call centre
sign mobile
active research for info contract
passive exposure to ATL media
23
Key Results
24
While CPO for online marketing focuses on online conversions only, the ROPO effect
suggests that offline effects of online media need to be considered as well: 37% of
consumers who sign a mobile contract and 29% of DSL sign-ups have research online,
before signing the contract offline.
The online research process of the ROPO segment and the consumers who convert
online is similar. The intensity of the research process (duration, websites visited, search
queries) is higher for online buyers - but the internet is the most important information source
for ROPO consumers as well.
With a net reach of 31% resp. 23% search engines are among the leading websites
within the decision process for telecommunication products. For both products, mobile and
DSL, generic keywords play an important role. During the research process for broadband
access users are starting with a generic term and enter branded queries rather at the end.
Due to the intense online research process by online and offline (ROPO) buyers the majority
of brand touchpoints are online. In order to follow the consumer journey advertisers
should therefore carefully review their media strategy which is often very offline centric.
Thank You!
Your contacts at GfK:
Karlheinz Seidl
Senior Specialist
+49 911 395-31 41
karlheinz.seidl@gfk.com
Dr. Christoph Tillmanns

Research Manager
+49 911 395-21 21
christoph.tillmanns@gfk.com

GFK Vodafone Ropo Study 2010

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GfK Consumer Tracking Research Online, Purchase Offline (ROPO) – Mobile & DSL March 2010

Media Efficiency Panel Project

1. Methodology and Objective

Project Overview & Key Objective

The role of the internet in the decision process

Single Source Data

→ How does the research process looks like for consumers

Definition Online Research

– Analysis of online research process is based on observational data

1. Methodology and Objective

Internet is main source of information in both product categories,

Sources for Information

Mobile Buyer DSL Buyer

7 Base: Mobile buyer, DSL buyer 19 October 2010

Mobile Contract DSL Contract

8 Base: Mobile buyer, DSL buyer with internet 19 October 2010

Research Online, Purchase Offline (ROPO)

31% online conversions: Todays

37% 32% 59% of contracts: pure online

Research Online, Purchase Offline (ROPO)

Mobile Buyer DSL Buyer

Online 22% 9% Online 20% 16%

Offline 37% 32% Offline 29% 35%

Among post paid contracts the share of ROPO consumers is even

Research Online, Purchase Offline (ROPO)

Mobile Buyer Mobile Buyer

Online 26% 8% Online

The average online research process takes approx. 6 weeks (same

Online Research Process: Duration

Mobile Buyer DSL Buyer

Ø 44 days 41% Ø 40 days

12 Mobile Buyers/DSL buyers, internet population, 19 October 2010

Pure online decision process is slightly longer than process of

Online Research Process: Duration

Mobile - Ø in days DSL - Ø in days

13 Mobile Buyers/DSL buyers, internet population, 19 October 2010

Approx. ½ of mobile and DSL consumers use a search engine in the

Online Research Process: Websites & Searches

Mobile Buyer DSL Buyer

Research online Website visit Search engine usage

14 Mobile Buyers/DSL buyers, internet population, 19 October 2010

Price Comparison 1,3 50% 28% 9%

Tarif 1,0 52% 26% 10%

DSL Buyer Total 3,2

Price comparison 0,6 60% 28% 8% 2%

Tarif 0,6 60%

15 Mobile Buyers/DSL buyers, internet population, 19 October 2010

Differences across segments are rather small concerning usage of

Online Research Process: Websites

Mobile - Ø Websites DSL - Ø Websites

16 Mobile Buyers/DSL buyers, internet population, 19 October 2010

On average mobile buyers made 15.5 search queries while DSL

Brand 2,1 59% 13% 7% 9% 13%

DSL Buyer Total 7,8

Brand 3,0 46% 29% 13% 8%

Price comparison 0,3 84%

Tarif 0,2 92% 5%

17 Mobile Buyers/DSL buyers, internet population, 19 October 2010

Almost 50% of those who research online and purchase offline

Online Research Process: Search Engine Usage

Mobile – Search DSL – Search

ROPO pure online ROPO pure online