Use of Online for Telecommunications Services We surveyed a total of 300 consumers that use the web to research and/or purchase Telecommunications Services •
A custom survey instrument (i.e. questionnaire) was developed to measure respondents’ use of the web, and search engines in particular, for researching and purchasing Telecommunications Services
•
The survey was conducted online, through a web-based interviewing process, in March 2005
•
Our sample is evenly distributed across all age groups and genders
•
Respondents were recruited through a variety of methods: web advertising, permission-based databases, public relations, telephone recruitment, partner-recruited panels, and alliances with heavily trafficked portals
•
The survey was designed and administered by Global Market Insite (GMI), a global sampling and data collection company, and MediaScreen, an independent strategic market research firm
Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 1
Use of Online for Telecommunications Information Executive Summary •
Three-quarters (78%) of Google users compare prices for Telecom Services online and 26% have purchased Telecom Services online
•
Search engine usage: -
Nearly two-thirds (64%) of Google users use a search engine first when researching Telecom Services, while less than 2% go to a portal first
-
Two thirds (65%) of Google Users feel a search engine is important to their making a telecom service purchase decision
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The vast majority (90%) of Google users say they would likely use a search engine after seeing an advertisement for a Telecom Service
•
Over 70% of all respondents select Google (over other search engines) to research and purchase Telecom Services
•
Almost three-fourths of Google users (74%) have heard of VoIP and the vast majority of Google users (92%) say they would be comfortable purchasing VoIP online
•
Nearly three-quarters (74%) of Google users use a search engine to research cell phone plans and internet access services Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005)
2
Use of Online for Telecommunications Information Three-quarters (78%) of Google Users compare prices for Telecom Services online and one-quarter (26%) purchased Telecom Services online 90% 80%
78%
77%
70% 60% 53% 50% 40%
35% 31%
30%
26%
20% 10% 1% 0% Compared prices on Telecommunications services
Go online to learn more about new Telecom Services that heard about elsewhere
Became aware for the first time of a new Telecom Service
Purchased/Subscribed to a Telecom Service offline after researching it online
Returned to the site where purchased Telecom Services to purchase accessories/services
Purchased/Subscribed to a Telecommunications Services online
Other
N=238
Have you ever done any of the following online? Please select all that apply. Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 3
Use of Online for Telecommunications Information Over half (57%) of Google Users expect to compare prices for Telecom Services in the next six months 60%
57%
50% 45%
44%
40%
30%
27%
26% 23% 21%
20%
10% 0% 0% Compare prices on Telecom services
Learn more about a Telecom Service that heard about elsew here
Learn about a new Telecommunications Service
Purchase/Subscribe to a Telecom Service offline after researching it online
None of the above
Return to the site w here purchased Telecom Service to purchase accessories/services
Purchase/Subscribe to a Telecommunications Services online
Other
N=238
Which of the following activities do you expect to do online in the next six months? Please select all that apply. Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 4
Use of Online for Telecommunications Information Nearly two-thirds (64%) of the Google Users use a search engine first when researching Telecom Services while less than 2% go to a portal first 2%
0%
2%
Search engine
32%
Service provider Portal Retail shopping site Other
64%
N=229
When you go online to research a telecommunications service (phone services, Internet access services, wireless plans), where do you typically go first? Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005)
5
Use of Online for Telecommunications Information Most Google Users (65%) go to a service provider, but one-quarter (28%) go to a search engine first when purchasing a Telecom Service 0% 6%
1%
Service provider
28%
Search engine Retail shopping site Portal 65%
Other
N=102 When you go online to purchase a telecommunications service (phone services, Internet access services, wireless plans), where do you typically go first? Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005)
6
Use of Online for Telecommunications Information Almost three-fourths (74%) of Google Users have heard of VoIP
26%
Yes No
74%
N=238
Have you heard of a new technology called VoIP (Voice over Internet) that allows users to make phone calls over their broadband Internet connection? Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005)
7
Use of Online for Telecommunications Information Three-quarters of Google Users (77%) have heard about VoIP online 90%
80%
77%
70%
60% 49%
50%
43% 40%
30% 20%
19%
20% 11% 7%
10%
0%
N=167Internet/online
Friends/colleagues
Television
New spapers
Magazines
Direct mail
Other
Where have you heard about VoIP (Voice over Internet)? Select all that apply. Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 8
Use of Online for Telecommunications Information One-quarter (25%) of Google Users said they would purchase VoIP for their home, but over half (57%) are not yet sure
25%
Yes No Not sure yet
57%
23%
N=167 Would you consider purchasing VoIP for your home? Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 9
Use of Online for Telecommunications Information The vast majority (92%) of Google Users say they would be comfortable purchasing VoIP online
8% 0%
Yes No Not sure
92%
N=38 Assuming you were prepared to purchase VoIP, would you consider making that purchase online? Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 10
Use of Online for Telecommunications Information Over 70% of all respondents select Google (over other search engines) to research and/or purchase Telecom Services 80% 71% 70%
60% 49%
50%
40%
29%
30%
20%
16%
15%
10%
5%
6%
5%
7%
5%
3%
1%
1%
0%
0%
Allthew eb
Infospace
Looksmart
Wisenut
0% Google
Yahoo
MSN
Ask Jeeves
AOL
Alta Vista
Netscape
iWon
Lycos
N=300
Other
Never use a search engine
Which, if any, of the following search engines do you use when researching or purchasing telecommunications services (phone service, Internet access service, wireless service plans)? Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 11
Use of Online for Telecommunications Information Two-thirds (65%) of Google Users feel a search engine is important to their making a telecom service purchase decision 2% 2% 27%
30%
Very important Somew hat important Neither important nor unimportant Somew hat unimportant Not at all important
38%
N=238 When you purchase telecommunications services how important is using a search engine in making your purchase decision? Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 12
Use of Online for Telecommunications Information The vast majority (90%) of Google Users say they would likely use a search engine after seeing an advertisement for a Telecom Service
10%
1%
43%
Very likely Somewhat likely Not very likely Not at all likely
47%
N=238 Assuming you saw an advertisement for the telecommunications service you were interested in, how likely would you be to then search for that service on a search engine? Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005)
13
Use of Online for Telecommunications Information Nearly three-quarters of Google Users use a search engine to research cell phone plans and internet access services 80% 74% 68%
70%
60%
50%
40%
36% 32%
30%
20%
10%
0%
N=238
Wireless cell phone service plans
Internet access services
Traditional local/long distance phone service
Internet-based phone service (VoIP)
For which of the following telecommunications services do you use a search engine to help you conduct research on those services? Select all that apply. Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 14
Use of Online for Telecommunications Information Over two-thirds (69%) of Google Users use a search engine to make a purchase decision about cell phone plans and Internet access services 80%
70%
69% 66%
60%
50%
40%
37%
30%
26%
20%
10%
0% Wireless cell phone service plans
Internet access services (cable,dsl, dialup, w ireless)
Traditional local/long distance phone service
Internet-based phone service (VoIP)
N=238 For which of the following telecommunications services do you use a search engine to help you reach a purchase decision? Select all that apply. Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 15
Use of Online for Telecommunications Information Using a search engine, over half of Google Users located Verizon and Cingular for wireless phone services 60%
57% 54%
50%
42% 40%
40%
40% 35%
30%
20% 15% 12% 9%
10%
2% 0% Verizon Wireless
Cingular
TMobile
Sprint Wireless
AT&T Wireless
Nextel
US Cellular
Alltel
Western Wireless
Other
N=179
You indicated that you have used a search engine to locate sites that offer wireless phone service plans. Which of the following sites have you used a search engine to help you find? Select all that apply. Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 16
Use of Online for Telecommunications Information Using a search engine, one-third of Google Users located Verizon, Comcast, and Earthlink for Internet access services 40% 37% 35% 35% 31% 30% 27% 25% 21% 20% 17%
16%
15%
15% 11%
11%
12%
11%
10%
10%
5% 2%
r O th e
ov ad C
ox C
t es
C
ab
le
vis
io
W ar ne e Ti m
Q w
n
r
r dr un oa
U
ni
te d
R
in O nl
ne
et ze ro e/ N
ls
ou
th
t Be l
D oo /Y ah
Sp rin
SL
k in SB C
Ea rth l
ca om C
Ve r
izo
n
st
0%
N=172
You indicated that you have used a search engine to locate sites that offer Internet Access Services (ISPs). Which of the following sites have you used a search engine to help you find? Select all that apply. Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 17
Use of Online for Telecommunications Information Using a search engine, over half (55%) of Google Users located AT&T for traditional phone services 60% 55%
50%
47%
41% 40% 33% 30%
28%
28%
21% 20%
10% 5%
4% 1% 0% AT&T
Verizon
Sprint
Bellsouth
MCI
Qw est
SBC
IDT
Lingo
Other
N=100 You indicated that you have used a search engine to locate sites that offer traditional phone services. Which of the following sites have you used a search engine to help you find? Select all that apply. Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 18
Use of Online for Telecommunications Information Using a search engine, Vonage was found by Google Users most often for VoIP services 60% 55%
50%
40% 35% 32%
31%
30%
27%
18%
20%
14% 10%
7% 5%
5%
5%
4% 1%
O th er
Br oa dv oi ce
oi ce pu ls e V
oi ce gl o V
Li ng o
Pa ck et 8
O pt im um vo ic e is io n
Sk yp e Ca bl ev
Ti m e
W ar ne rD ig ita lP ho ne
Ne t2 ph on e
in g oi ce w V on er iz V
A
T& T
Ca llV
V
an ta ge
on ag e
0%
N=66
You indicated that you have used a search engine to locate sites that offer Internet-based phone services (VoIP). Which of the following sites have you used a search engine to help you find? Select all that apply. Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 19
Use of Online for Telecommunications Information Google Users are almost equally likely to purchase Telecom Services online as over the phone 60%
50%
48% 44%
40%
30%
20% 13%
13%
Fill in form and wait for a call back
Other*
10%
0% Purchase/subscribe to service(s) online
Purchase/subscribe to service(s) over the phone
N=238
After using a search engine to help you find a site that offers telecommunications services, please indicate how you ultimately purchase/subscribe to those services: Select all that apply. Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005)
*Approximately 11% said they would purchase/subscribe at a retail store
20
Use of Online for Telecommunications Information Over 50% of Google Users said they would be very/somewhat likely to purchase Internet access services and wireless phone plans online Percent saying "very" or "somewhat" likely (“4” or “5” on 5-point scale) 70%
60%
58%
51% 50%
39%
40%
34%
30%
20%
10%
0%
N=238
Internet access services
Wireless phone service plans
Internet-based phone service (VoIP)
Traditional local/long distance phone services
For each of the following telecommunications services, please rate on a 5-point scale how likely you would be to purchase that service online. Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 21
Use of Online for Telecommunications Information Over half of Google Users (56%) purchased Telecom Services online in the last 12 months, mostly cell phone plans/services 50% 44%
45%
40%
35% 31% 30%
25%
20%
17% 15%
15%
13%
12%
12% 10%
10% 5% 4%
5%
2% 0% Cell Phone Plan/Service
Ringtones
Cable Internet
DSL Internet
Cell Phone Long Distance (w ithout service) Phone Service
Local Phone Service
Wireless Internet
VoIP
Other
Which, if any, of the following telecommunications products or services have you purchased/subscribed to online in the last 12 months? Select all that apply.
None of the above
N=238
Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 22
Use of Online for Telecommunications Information Almost two-thirds (64%) of Google Users are planning to purchase Telecom Services online in the next six months, especially VoIP and cell phone plans 40% 36% 35%
30% 26% 25% 25%
20% 20% 16% 15% 10%
10% 9%
10%
8%
5% 1% 0% VoIP (Voice over Internet)
Cell Phone Plan/Service
DSL Internet
Ringtones
Cell Phone (w ithout service)
Cable Internet
Long Distance Phone Service
Local Phone Service
Other
None of the above
N=238
Which of the following telecommunications services are you considering purchasing/ subscribing to online in the next 6 months? Select all that apply. Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 23
Use of Online for Telecommunications Information Over three-quarters of Google Users prefer to find their Telecom Services online – far more than other information channels 90% 80%
79%
70% 60% 50% 40% 31%
31%
30% 22% 18%
20%
18% 7%
10%
2%
O th er
Te le ph on e
on t Re ta il S to re fr
in e M ag az
sp ap er Ne w
m ai l Di re ct
ol le ag ue oc ia te /c Fr ie nd /a ss
W eb /o nl in e
0%
N=238
In general, how do you prefer to learn about telecommunications products or services? Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 24
Use of Online for Telecommunications Information Our sample is evenly divided between men and women
51%
49%
Male Female
N=238 Are you: Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 25
Use of Online for Telecommunications Information Nearly three-quarters of the Google Users were between ages 25 and 54 years
5%
13%
8%
18-24 25-34 18%
18%
35-44 45-54 55-64 65 or older
36%
N=238 How old are you? Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 26
Use of Online for Telecommunications Information Half of the participating Google Users had incomes ranging between $35K-99K 0% 2%
7%
2%
6% 10%
Less than $15,000
4%
$15,000 to $24,999 $25,000 to $34,999
6%
$35,000 to $49,999 $50,000 to $74,999 15%
$75,000 to $99,999 $100,000 to $124,999
14%
$125,000 to $149,999 $150,000 to $199,999 $200,000 to $249,999 $250,000 or more 12%
Decline to answ er
22%
N=238 Which of the following income categories best describes your total 2004 household income before taxes? Source: 2005 Telecommunications Survey, conducted by GMI and Media-Screen (Mar. 2005) 27
