how the u.s. consumer feels about micropayments: 2014 survey
TRANSCRIPT
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HOW THE U.S. POPULACE FEELS
ABOUT MICROPAYMENTS
Research conducted by Hollis Thomases, 11/2014
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HYPOTHESIS
With so much content given away for free these
days, U.S. consumers might still be likely to pay
a nominal amount for each content view (“a
micropayment”) if they valued it
In addition to putting this hypothesis to the test,
I also wanted to determine what would be the
maximum amount they would be willing to pay
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THE SURVEY QUESTION
Consider a situation in which you find a small
piece of online information valuable enough to
pay for - what is the MAXIMUM regular amount
you'd be likely to pay?
a) $0.00 - I'd never pay for information
b) $0.10 per time
c) $0.25 per time
d) $0.50 per time
e) $1.00 per time
f) $2.50 per time
g) more than $2.50
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THE FINDINGS
Disappointingly, the overwhelming majority of U.S. consumers surveyed
said they would never pay for information, even if they found it
valuable:
N = 1,309 respondents
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AND YET, THERE’S HOPE…
Younger respondents, who are already
more used to micropayments (buying
digital music by the song, apps, or
games) have the least objection.
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INCOME LEVEL HAD AN IMPACT
Results for people
earning $75-99K
Results for people
earning $100-149K
Greater willingness to
pay occurs above $100K
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GEOGRAPHY PLAYS A FACTOR
Rural consumers more
likely to pay and pay
more (perhaps they’re used
to paying more for things
when it’s harder to get them?)
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AND SOME RED FLAGS
At all payment levels, women are less likely to be
willing to pay then men
Parental status (parent vs. non-parent) had
inconsistent bearing on the response
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CONCLUSIONS
U.S. consumers are not yet ready for a
micropayment-for-content economy
Content, even valuable content, has become
commoditized
Unless and until consumers become more willing
to pay for content (or are forced to because they
cannot find content they value offered for free in
any place), content producers and publishers
should not expect micropayments to save their
businesses
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HOLLIS THOMASES, DIGITAL ADVOCATE
In 1998, multi-time award-winning entrepreneur Hollis Thomases founded Maryland-based Web Ad.vantage, providing strategic digital marketing and advertising solutions. In 2013, Hollis became a sole practitioner focused on marketing advocacy – ensuring clients were educated and aware of the pitfalls and missed opportunities that the digital marketplace can provide.
In January 2010, Hollis authored the book, “Twitter Marketing: An Hour a Day,” by John Wiley & Sons, and has been a columnist with Inc.com, Social Media Marketing Magazine, and ClickZ. Hollis also frequently speaks at industry conferences and association events.
Hollis Thomases graduated from Cornell University with a BA in Social Relations. You can find her in the Twittersphere @hollisthomases, on LinkedIn, by email or by old-fashioned phone: +011-484-679-6364. 10