how the u.s. consumer feels about micropayments: 2014 survey

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HOW THE U.S. POPULACE FEELS ABOUT MICROPAYMENTS Research conducted by Hollis Thomases, 11/2014

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Page 1: How the U.S. Consumer Feels About Micropayments: 2014 survey

HOW THE U.S. POPULACE FEELS

ABOUT MICROPAYMENTS

Research conducted by Hollis Thomases, 11/2014

Page 2: How the U.S. Consumer Feels About Micropayments: 2014 survey

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

Page 3: How the U.S. Consumer Feels About Micropayments: 2014 survey

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

Page 4: How the U.S. Consumer Feels About Micropayments: 2014 survey

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

Page 5: How the U.S. Consumer Feels About Micropayments: 2014 survey

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.

Page 6: How the U.S. Consumer Feels About Micropayments: 2014 survey

INCOME LEVEL HAD AN IMPACT

Results for people

earning $75-99K

Results for people

earning $100-149K

Greater willingness to

pay occurs above $100K

Page 7: How the U.S. Consumer Feels About Micropayments: 2014 survey

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?)

Page 8: How the U.S. Consumer Feels About Micropayments: 2014 survey

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

Page 9: How the U.S. Consumer Feels About Micropayments: 2014 survey

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

Page 10: How the U.S. Consumer Feels About Micropayments: 2014 survey

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