Forrester Research: Forrester Retail Insights Devices, Media, & Marketing First Look: Research & Event Highlights From Forrester

 04 Mar. 2003
Three Reasons Why Gaming Matters to You
1. In 2002, video gaming revenues surpassed box-office receipts for the first time.
2. Fifty-three percent of US households play games on a console, PC, or mobile platform.
3. Connected gaming will reach 22 million North American households by 2003.

Sony and Nintendo aren't the only ones riding the gaming wave. Content players, ISPs, retailers, and marketers are taking advantage of a new crop of gamers. Read how in Charlene Li's new report "Connectivity Splits The Gaming Industry."

The Unvarnished Truth
Downloading beats streaming. Consumers who use digital audio and video online prefer the ownership and experience of downloading over streaming. But barely half of them are satisfied with media players like RealOne and RealPlayer.

IM has grown 30% faster than email in its first five years. But this growth in IM obscures a more powerful technology story. IM is just the first application to exploit presence -- the online status of a person or object. Read how presence will transform the way you do business in "This Is Not Your Teenager's Instant Messaging."

Upcoming Research
"Digital Television's Dirty Word: Profit," by Josh Bernoff
"The Integrated Marketing Self-Test," by Jim Nail
"Devices & Access Data Overview: Covers Marketing And Selling of Consumer Electronics, Internet Access, And Digital Imaging," by Jed Kolko
"Designing A Great Media Site," by Charlene Li


Need Custom Research?
Beyond all the research we publish each year, Forrester performs custom consulting for a host of companies. Use our strategic insight, industry expertise, and deep database of consumer and business data to make the right business decision. For more information, email astockwell@forrester.com.

Instant Messaging Cuts Into Landline Use And In-Person Chats
Instant Messaging Cuts Into Landline Use And In-Person Chats

The Marketing Crisis -- And What To Do About It

2002 was the year of media moguls' misery. But lost in the cacophony of stories about the misfortunes of AOL Time Warner, Vivendi Universal, and Bertelsmann was the misery of yet another group: marketers. Digital technology is wreaking havoc on them -- offline and online. Media fragmentation, new ad-blocking tools, and attention-eroding multitasking are just some of the challenges buffeting marketers.

If you're a marketer (and who isn't?), the data points are scary: 1) 15% of online consumers use ad blocking software -- up tenfold from a little over a year ago; 2) Among 22 services we asked about, consumers rate "spam filtering" the second most important service that an ISP can offer; 3) 39% of online consumers use spam blockers on their primary email account; and 4) Personal video recorder owners view only 41% of ads in the programs they watch from their TiVo or ReplayTV boxes -- and we expect that, by 2007, TV ad viewing will decline 19% (that's on top of any decline in the network viewing audience). Phew. Pretty scary, huh?

(link:doc id:14534) As digital technology takes hold, marketers must face a grim reality: Consumers will have the power to avoid ads. What to do? Stop bombarding them with messages and begin engaging them. In a new era of integrated marketing, smart marketers will weave together digital and physical channels to engage consumers' emotions and deliver brand experiences as they move along the buying cycle. Companies like Volvo, Lands' End, New Line Cinema, Charles Schwab, COTY, and Kraft Foods have already put integrated marketing to work. They use cross-channel events, advergames, email, research surveys, and even IM to engage consumers. They target ad buying to media audiences who are likely to respond online (see figure above). The payoff: higher lead rates, higher email response rates, better products, and more loyal customers. Read more about this in our ongoing series on integrated marketing.

Email is one of the most crucial -- and most challenging -- ways to engage customers. The average consumer reports getting 110 unwanted messages each week, and more than 60% of consumers delete email without reading it. To help you out, we've written "Ten Email Best Practices To Live By," in which we spell out rules that companies like Wells Fargo, Procter & Gamble, and The Economist follow to keep email relevant and effective.

By next month, we will have published the results from our latest Consumer Technographics® Devices & Access Survey, a new digital television report, and much more. Have a great March!


Chris Charron
Devices, Media, And Marketing Group Director

P.S. Tell me what's on your mind heading into 2003 by replying to chrischarron@forrester.com. Whether it's research you'd like us to write, consumer data your team is looking for, or advice about a strategic challenge, we'd love to help.


We hope you like Devices, Media, & Marketing First Look but if not, please unsubscribe. If you would like to subscribe to Devices, Media, & Marketing First Look, please go to our Emails and Alerts page. If you have colleagues who should receive this newsletter, they also can sign up on this page.

Entire contents © 1997-2003, Forrester Research, Inc. All rights reserved. Forrester, Forrester eResearch, Forrester Oval Program, Forrester Wave, WholeView, Technographics, TechStrategy, and TechRankings are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. Forrester clients may make one attributed copy or slide of each figure contained herein. Additional reproduction is strictly prohibited. For additional reproduction rights and usage information, go to www.forrester.com. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.