May 19th, 2011

Nielsen on tablets: Low penetration, high engagement, big opportunity

Apple’s iPad has been lauded as the fastest selling tech gadget of all time, yet research released by Nielsen highlights that in the U.S., more than 95% of consumers have yet to buy one. However, those that do appear to be more willing to pay for and consume content on a tablet than any other wireless devices.

Nielsen note that only 4.8% of the approximately 12,000 U.S. consumers surveyed have bought a tablet, as of Q1 2011. And in most other markets, that number is smaller. Paul Lee, a director of TMT research with Deloitte in the UK, estimates that in the UK the number of tablet users is 1 out of every 60 people—or 1.7%.

That puts tablets, for the last year at least, behind most other wireless devices in terms of both penetration despite the huge amount of media coverage of the iPad.

However, the current low penetration represents a big opportunity for tablet manufacturers and retailers.  Especially for Apple’s competitors who will feel that although Apple currently has more than a 80% share of the tablet market, there’s still everything to play for, particularly at the ‘lower margin-higher volume’ end.

For example, the UK retailer Asda (owned by WalMart) has recently started selling the seven-inch, WiFi-only Samsung Galaxy Tab for £277 (just under $450), and is offering five other tablets for under £100.

 

Tablet consumers appear to be far more engaged, which also offers businesses and content owners a big opportunity, which should grow as penetration increases. According to Nielsen, current tablet users, watch more video and read books; are more accepting of advertising and are more likely to make a purchase after viewing an ad, than users on smartphones or other devices.

According to Nielsen, current tablet users, watch more video and read books; are more accepting of advertising and are more likely to make a purchase after viewing an ad, than users on smartphones or other devices.

The Nielsen survey also indicated that when it comes to using a device whilst simultaneously watching TV, the highest proportion are tablet users at 70% followed by smartphones. This bodes well for marketers who can increase the effectiveness of their advertising with promotions or enriched content delivered online.


1 comment to Nielsen on tablets: Low penetration, high engagement, big opportunity


  • I liked your article is an interesting technology
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