Commentary

Lower Income Tech Users Use More Tech

According to Nielsen’s third-quarter Total Audience Report, focused on media habits in different economic strata, people with higher-incomes tend to have more access to tech advancements at their collective fingertips, be it that trendy new tablet or a streaming service with a much-ballyhooed program. Consumers that make less money actually spend more time with the media they spent their hard-earned money on.

The study, looking at 10 different devices/services, found that penetration followed the same pattern in every instance: homes with higher incomes had more devices/services. In August 2015, 38% of adults in homes with an income of less than $25,000 per year had access to a video game console. In that same period, 58% of adults in homes making more than $75,000 boasted a console. This trend played out even further among emerging services and technologies, such as tablets, smart TVs and streaming services.

However, says the report, just because a home has access to a device or service, doesn’t necessarily mean the homes’ denizens are using them. The study found that adult users in lower-income households that actually have these devices or services have greater usage, among both traditional and emerging media!

Percentage of Total Media Usage Among Adults (By HH Income; % of Each Cohort)

 

Device Usage

HH Income

TV

Radio

TV Connected Devices (DVD, Game Console, Multi-Media Device)

Digital Devices(PC, Smartphone, Tablet)

<$25K

53%

20%

5%

21%

$25K-50K

49

22

6

23

$50K-$75K

46

23

5

25

$75K +

44

22

5

29

Source: Nielsen, January 2015

tech

Glenn Enoch, SVP Audience Insights, Nielsen, said “… we did not anticipate that low-income consumers of all devices had greater usage… media behavior of low-income adults… concentrated in fewer devices… results in more minutes of usage for the devices (owned)… (while) high-income adults distribute their time among more devices… ”

The report also considered how the economics of connecting with media played out over multicultural lines, and found that money is a great equalizer. Adults in each income group have the same pattern of ownership of devices/services regardless of race or ethnicity and usage plays out in a similar manner for all income levels.

The most interesting finding on the usage side, says the report, is that users in lower-income households spend more time with every device that they use than high-income households. This is true not just of traditional devices, but of newer ones as well.

Monthly Time Spent Among Adult Users (hrs:min)

 

Device

HH Income Level

Live/DVR TV

AM/FM Radio

Web On PC

Game Console

<$25K

211:14

75:28

51:29

42:22

$25-50K

172:25

69:46

41:36

33:33

$50-75K

144:30

65:57

39:06

22:54

>$75K

113:41

58:02

33:38

17:58

Source: Nielsen 3Q Audience Report, January 2016

When looking at adult users of multimedia devices, black homes making under $50,000 averaged more than 33 monthly hours in the third quarter of 2015, Hispanic homes notched about 27 hours, and Asian-American homes had about 41 hours. In homes of these same ethnicities that made over $50,000, the monthly time spent with multimedia devices shrinks to 20 hours (black), nearly 19 hours (Hispanic) and 25 hours (Asian-American).

Knowing the trends in not just ownership, but how different economic levels of all U.S. consumers utilize and access the many devices they have at their fingertips helps provide a new line of sight to programmers and marketers looking to reach a multitude of viewers, concludes the report.

The Nielsen total audience report dated 12/10/15 may be found here for additional information.

 

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