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Covid-19: A Game Changer For Media and Purchasing: Live Panel
Covid-19: A Game Changer For Media and Purchasing: Live Panel
Covid-19:
A Game Changer
For Media And
Purchasing
November 2020
Research overview
Four groups of consumers Globally, 77% are craving the The impact of Covid-19 is In-home media, and
were identified based on a day when they can feel less highly personal and emotional particularly those that
combination of their anxiety anxious and life returns to with personal/family health provide entertainment, have
level and their financial ‘normal,’ albeit with a renewed and safety concerns being top seen the largest increases in
response to the crisis: Tense focus on family, relationships of mind (60% agree). consumption. Playing video
(26%), Distressed (26%), and self-sufficiency, rather Unprecedented drop in games has seen the largest
secure (31%) and Proactive than values associated with consumer confidence due to increases YOY, growing 47%
(17%). materialism and self- financial and economic daily (from 21%-31%).
fulfilment. worries.
Digital entertainment E-commerce has become a Consumers are now more An accelerated focus on
platforms are seeing a boom lifeline for people worldwide mindful of how and where value, health and local as a
in both reach and time spent, with substantial growth in their money is being spent result of the pandemic and
as people spend more time revenue YOY. Covid-19 has (70% agree), focusing on the changed consumer values
in-home. Podcasts have forced laggard audiences and essentials versus the frivolous and attitudes.
newly become embedded markets to learn the benefits of and adopting a thrifty, self-
throughout the day. online shopping, driving a sufficient mindset.
more balanced global profile of
this activity.
Impact Map
Higher Anxiety
Introduction Tense Distressed
26% 26%
The impact of Covid-19 across
the globe is unprecedented.
The combination of the humanitarian, health & safety,
financial and economic aspects have reached almost
every corner of society across the globe, shaping business Secure Proactive
and consumer attitudes and behaviour. It’s
31% 17%
unquestionable whether social distancing, quarantining
and staying at home have had a significant effect on
Lower Anxiety
consumer media and purchase behaviour. Many of these
changes in attitudes and behaviour are game-changing
and will be with us for a long time to come.
Tense (26%)
Secure (31%) This group tends towards older
consumers and empty nesters.
This is the lowest income group Most work full-time but the
and more likely to be older, group is more likely to include
retired consumers, albeit most retirees, full-time homemakers
still work full-time. They are more and those slightly more
likely to be interested in thrillers, interested in drama. They are
sports and comedy. They have highly anxious, are actively
the lowest level of concerns avoiding public places and
around the health or financial won’t feel safe until there is a
impact of Covid-19. vaccine. However, their anxiety
is relatively more health-driven
rather than financial. 4
Globally, 77% are craving the day when they
can feel less anxious and life returns to
“What I think is most important in life has changed since the pandemic crisis”
‘normal’, albeit with a renewed focus on
family, relationships and self-sufficiency,
100
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% Completely ag ree % Somewhat agree High Cases / Hig h St ringency
High Case / Med-Low St ringency Medium Cases / High St ringency Medium Cases / Medium Str ingency The seismic shock of the pandemic has driven
Low Cases / High Str ingency Low Cases / Medium Str ingency Low- Med Cases / Low St ringency consumers to completely re-evaluate all aspects of
their life, consciously or otherwise, resulting in a
changed, unfamiliar world for both brands and
consumers.
Source: LIVE Panel 2020 5
Focusing On Family And UK
Relationships First
Consumer responses to Covid-19 have been highly personal with the primary Continued spread of the virus 52%
focus on matters that are close to home and which directly impact them and
their immediate family. Globally, the number one concern is around personal and Income/finance 43%
family health (61%), rising to 67% of the Distressed group and 64% in the highest
affected markets. This is followed by a concern around the continued spread of Future job stability/prospects 35%
the virus (52%), which is unsurprisingly higher for older (and therefore more
vulnerable) consumers and the Tense consumer group (indexing 115 and 116 National economy 34%
respectively).
Global economy 24%
Some 60% said they wouldn’t feel safe until a vaccine is available, rising to 81% for
the Distressed group, 76% for the Tense group and 70% in the most affected Climate change 19%
markets.
Venues with lots of people 17%
The next group of concerns is driven by rising anxiety around personal finance
and the economic impact of Covid-19. Some 44% stated they were concerned Travel safety 16%
about income/finances (rising to 52% for our Proactive group), followed by future
job security/prospects (35%). Political turm oil 15%
Global Media
Landscape
With people being confined to their homes, the big
In-home media, and
winners are the media channels that are consumed
particularly those that in the home, particularly those that provide
provide entertainment, have entertainment:
seen the largest increases in ⨁ Playing video games has seen the largest
consumption. increases YOY, growing 47% daily (from 21%-31%)
and 36% weekly (from 35%-47%).
The circumstances surrounding Covid-19 and the resulting shifts in consumer values,
attitudes and behaviour have driven a significant change in the patterns of media ⨁ Using the internet for TV and video content has
consumption across the globe. increased 19% YOY in terms of daily usage (from
58%–69%) and 11% weekly (from 77%-85%)
Unsurprisingly, due to widespread closures and cancellations, cinema and events have
declined hugely YOY in terms of reach with all channels dropping by around 50% or ⨁ Listening to the radio offline has increased 7%
more. In addition, printed newspapers have declined by 8% on a three-monthly period weekly (from 68% to 73%).
most likely due to the reduction in people commuting to and from work.
⨁ Using online shopping has increased 6% weekly
The only big winner YOY is video gaming which has increased from 51% to 60% on a (from 48%-52%).
three-monthly basis, particularly so in the markets with high cases and high stringency
(growth index 127).
However, we have observed much larger changes in the frequency of using different
media channels.
7
A Changed Global
Media Landscape
80% 80
The only big winner YOY is video gaming which
has increased from 51% to 60% on a three- 53
60% 60
monthly basis, particularly so in the markets 47
41
with high cases and high stringency (growth
40% 31 40
index 127).
20% 20
However, we have observed much larger
changes in the frequency of using different 99% 99% 98% 98% 96% 96% 95% 95% 93% 92% 86% 82% 75% 70% 63% 63% 61% 38% 20% 18% 18% 14%
media channels. 0% -
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LC = low cases LS = low stringency
MC = medium cases MS = medium stringency
Source: LIVE Panel 2020 HC = high cases HS = high stringency
9
Entertainment
Digital entertainment platforms Furthermore, we now see heavier Entertainment venues, such as
are seeing a boom in both consumption overall, with the cinemas and theatres, have closed
amount of time spent increasing and production stopped. This has
reach and time spent, as
20% from 110-132 minutes per day. led to an increased focus on online
people spend more time in- The biggest gains come from the entertainment streaming services,
home. Podcasts have newly parent lifestages (+27%) and the such as Netflix and Amazon Prime.
markets that had the highest
+19% become embedded throughout
cases / stringency (+31%). Some 49% of our sample subscribe
increase in the day. to and watch Netflix, while the
Daily Delving deeper, we can see there figure for Amazon Prime is 16% - the
has been a massive uptick in the former having a slightly younger
Reach Digital entertainment is thriving amid the
number of people who are profile, while the latter is stronger
Covid-19 outbreak and is the biggest
watching TV programmes or films among households with kids. This is
growth area within the digital landscape,
via a paid-for on-demand service: followed by Disney+ (9%), and HBO
increasing 59% daily and 33% weekly. With
+76% daily (from 20%-35%) and (1.3%).
people unable to socialise outside of their
+46% weekly (from 43%-62%). This
home, go to events, or engage in other out-
is true across all markets and These platforms are seeing a
of-home activities, digital can provide an
demographics irrespective of their boom. Netflix added 26 million
almost unlimited variety of content to
situation. accounts between January and
entertain, engage, fill time and alleviate
June 2020 (more than double the 12
boredom.
Covid-19 has radically affected million added in the year-ago
both the consumption and the period), while Amazon Prime likely
At a top-line level, we have observed a 19%
production of film and TV content saw similar gains, aided by the
+21% YOY increase in the daily usage of the
since it all requires people to be product’s ties to discounts on
internet for TV and video content (from
in average 58%-69%) and a 11% increase weekly (from
together in small spaces which is Amazon shipping fees.
Daily Time 77%-85%).
against health regulations in many
places.
Spent
10
Shopping
Online Shopping
E-commerce has become a lifeline
2020 Weekly Usage And YOY Change
for people across the globe and has
seen a substantial growth in revenue
YOY. Covid-19 has forced laggard 70 % 14 0
126
audiences and markets to learn the 115 117 115 115 117
113 113
benefits of online shopping driving a
6 0% 12 0
106 105 106
100 102 102
97 96
more balanced global profile of this 5 0%
94
10 0
activity.
4 0% 80
8% weekly.
10 % 20
However, with lockdowns forcing people to stay at 51% 50% 51% 60% 55% 54% 41% 48% 38% 47% 48% 54% 49% 51% 54% 61% 46%
home except for essential journeys, we have seen 0% -
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nt
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LC = low cases LS = low stringency
MC = medium cases MS = medium stringency
2020 YOY
HC = high cases HS = high stringency
Source: LIVE Panel 2020
11
Shopping
With a shift of this scale, many businesses have reported that they have had to adapt swiftly to
the ‘new normal’ and have significantly accelerated their digital development in line with
demand. Understanding and responding to the user needs and behaviour of online audiences will
be key to survival for brands and retailers.
What started as simply making a purchase eventually progressed to buying into new categories,
purchasing high-ticket items, and shopping and buying via mobile. Every time these behaviours
crystallised for a new set of consumers, it permanently shifted their online buying habits.
Previously sceptical or technically challenged consumers have had their hands forced and
subsequently learned the benefits of buying online, both for maintaining social distancing as well
as for sheer convenience.
6 0% 106 108 14 0
12 0
5 0%
Given the ongoing social distancing measures and 4 0%
10 0
80
wariness of enclosed spaces, online shopping will 30 %
60
20 %
continue to be a lifeline for many consumers 10 %
40
20
moving forward, resulting in these new habits being 0% -
constantly reinforced and changing behaviours for 2019 usa ge 20-< 30% 2019 usa ge 30- <40% 2019 usa ge 40- <50% 2019 usa ge 50- <60% 2019 usa ge 60%+
a long time into the future.
The pandemic has significantly Covid-19 has also expedited the changing face
and role of influencers. The incidence of live
impacted digital communication (+31% streaming has seen exponential growth since last
weekly), particularly video conferencing, year (+107% weekly from 17%-34%, and +131%
forcing a realising of what is possible monthly from 24%-56%), particularly so for older
consumers and those in the most impacted
with this medium and providing an markets. A recent study by Fullscreen stated that
important and highly valued way of influencer authenticity is now vital, and that a new
allowing people to be 'together' within type of content creator is emerging, broadening
the diversity of influencers. These are people who
the context of social distancing and self- share their own real experiences and
isolation. perspectives – curating ‘real’ content to connect
to real people and working together to navigate
the current environment. This aligns entirely with
Human beings have a natural desire to connect with
the changed consumer values – returning to the
other people, especially in times of crisis. As the
fundamentals of life and moving away from
pandemic has forced many people to work, study and
frivolity and materialism.
socialise remotely, we have seen people flocking to
digital communication platforms that provide quality,
personal face-to-face interactions and collaborations,
as well as a redefinition of what it means to be
connected through technology.
13
Accelerated Appeal Of
Gaming
70 % 18 0
Across our 54 markets, playing video games saw the
153 152
156 155 largest growth rates of all media channels: 47% daily
150 150
6 0%
144 148 144 16 0
(from 21%-31%), 36% weekly (from 35%-47%) and +23%
134 133 134
127 monthly (from 46%-56%). This growth is apparent across
123 122 125
14 0
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14
More Mindful And
Controlled Purchase
Behaviour
Covid-19 has driven consumers to be more mindful of Following this we saw that people are using
how and where their money is being spent – reflecting savings (27%), reducing regular financial
on what is essential and what is frivolous. Globally, 70% commitments (24%), looking for flexible payment
have said they are now more careful about how they options (20%), putting more purchases on credit
spend their money, rising to 90% of the Distressed cards (18%) and taking out a loan (11%).
group, 83% within the markets with high cases and high
stringency, and slightly more likely for parents. Also, we
see a similar response across all income bands which
would suggest this is a fundamental shift in mindset
across the population.
15
More Mindful And
Controlled Purchase
Behaviour
Consumers are now more mindful of “I'm more careful how I’m spending my money”
how and where their money is being % Agree
spent (70% agree), focusing on the
essentials versus the frivolous and 90%
+
ls
/ HS
DI IO E
M HS
LC S
TE L
ED
M -LS
LS
LC LC S
C S
RE L
n
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35 4
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ts
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ol ch le
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p
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HC C /
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ur y n
To
re i th fre sin
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discount or sale - 39% are actively cutting back on
ild
18
M
i th ng u
C
C
EP
M
T
H
at t
Pa t w i ld ng
SC
e
the day to day things they buy and 36% are delaying
n c h ou
E
d
Y
big purchases. Following this we saw that people are
nt y
using savings (27%), reducing regular financial
re
commitments (24%), looking for flexible payment
Pa
options (20%), putting more purchases on credit LC = low cases LS = low stringency
cards (18%) and taking out a loan (11%). MC = medium cases MS = medium stringency
16
More Mindful And
Controlled Purchase
Behaviour
5 0% 13% 15 %
For those who only took one action,
4 0%
the most common was to wait for
items to be on promotion (33%).
10 %
30 % For those who took two-four actions,
7%
cutting back on day-to-day
20 %
5%
purchases and delaying big ones
3%
becomes more prominent, while the
10 %
1% more severe actions only really
1% 0%
0% 0%
come into play as the number of
1 2 3 4 5 6 7 8 9 actions taken goes over five.
Sha re of respond ents Wait for prod ucts to be on p romotion , di scou nt, sale
Cut b ack on th e da y-to-d ay thin gs you b uy Delay b ig purcha ses
Use you r sa vings Red uce reg ular fin ancia l co mmitments
Loo k for flex ibl e p ayment o ptions Put mo re purch ases on cred it ca rd s
Take out a l oan Ask for a paymen t holi day
71% The category showing the largest YOY decline, albeit by only a small
OTC -1%
amount, is the sweets and snacks market. With populations
spending more time in the home, there is less opportunity for on-
Ready Meals, Cooking Sauces* -2% 82% the-go impulse snacking, driving the decline.
Sweets & Snacks 89% Most other high/medium purchase cycle categories are staple
-5%
household products and have thus been resilient to any potential
impact from Covid-19.
However, categories with long purchase cycles have Actual Percentage Change
seen some of the largest impacts from Covid-19. In Purchasing YOY 2020 % Bought
Here, we have taken a cross section of categories
Last Last 3
and looked at the YOY changes for both purchases Year months
within a three-month period and within a year.
17%
Digital TV Subscription 51% 31%
20%
The biggest winner is digital TV subscriptions, such as 14%
Video Console/Games 39% 23%
Netflix and Amazon Prime. This is entirely aligned with 17%
the previous data we have discussed about the 6%
Household Electrical 49% 21%
growth of this category due to the need for increased 8%
1%
Furthermore, Covid-19 also has the potential to Children's Toys -1%
50% 33%
Higher Anxiety
Tense Distressed
Values have been rewritten, technology and digital have
26% 26%
become ever more pivotal to existence and been adopted
by new (previously sceptical or technically challenged)
audiences. Normal life as we knew it has changed forever.
In this new world, consumers will hold businesses and brands
to higher standards across a combination of factors: empathy,
honesty and transparency, being socially conscious, being
personal and personable, and ensuring communication is Secure Proactive
centred on local, health and safety, and value/affordability. 31% 17%
However, the relative focus of messaging will vary depending
Lower Anxiety
on the consumer group and whether the main driver of
behaviour is anxiety-led or finance-led.
Contact
Ramona Daniel
Research Director
ramona.daniel@groupm.tech