Technology adoption by lower income populations

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1 Technology adoption by lower income populations APHSA-ISM Annual Conference October 8, 2013 Aaron Smith, Senior Researcher Pew Research Center

2 About Pew Internet Part of the Pew Research Center, a non-partisan fact tank in Washington, DC Studies how people use digital technologies Does not promote specific technologies or make policy recommendations Research is primarily based on nationally representative telephone surveys

3 What do we mean by lower income? Based on reported annual household income Categories collected: <10k, 10-20k, 20-30k, 30-40k, 40-50k, 50-75k, k, k, and 150k+ Around 10-20% of respondents typically don t report (or don t know) income Limited ability to subdivide the lowerincome population. But it tends to skew towards non-white; youth and seniors; low education; urban/rural

4 Before we get started Apologies for making you start your morning with charts But you don t have to write anything down! Because you can find these slides at pewinternet.org/presentations

5 1) Internet Use and Home Broadband Adoption

6 National averages 85% of American adults are internet users 70% of American adults have some sort of high-speed home internet connection (DSL, cable, FIOS, etc) Which means that 15% of Americans do not go online from any device/location (Group 1) 15% of Americans go online, but do not have broadband at home (Group 2)

7 Internet use & broadband by income 100% 92% 94% 96% 97% 96% 90% 80% 70% 1 70% 70% 85% 84% 77% 84% 85% 90% 90% 60% 50% 2 54% 64% 63% 40% 42% 30% 20% 10% 0% <$10k $10,000 - $19,999 $20,000 - $29,999 $30,000 - $39,999 $40,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150k or more Broadband at home Use the internet

8 Age has a huge impact on which group people fall into Non users: Half 65+ yrs old Online, no broadband: Half <45 yrs old 1% 5% 8% 14% 16% 48% 11% 14% 17% 24% 22% 15%

9 In plain English Around 1/3 of people making <$20k per year are not online at all. Non-users are heavily dominated by older adults. Around 1/3 go online, but don t have broadband at home. So how is that group accessing online content?

10 Many of them turn to public institutions like libraries 32% of lower-income (<$30k per year) Americans have accessed the internet for free from somewhere other than home, school or work in last 12 months 81% of lower-income Americans say it is very important for the library to provide free access to the internet & computers 35% of lower-income library users have used the internet or a computer at a library in the last 12 months

11 2) But mobile devices are also playing a big role

12 Cell ownership > internet use 100% 90% 83% 87% 87% 89% 92% 92% 96% 94% 98% 98% 97% 96% 97% 96% 80% % 84% 70% 60% 70% 70% 50% 40% 30% 20% 10% 0% <$10k $10,000 - $19,999 $20,000 - $29,999 $30,000 - $39,999 $40,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150k or more Use the internet Own a cell phone

13 100% Smartphone or non-smart phone? Depends on your income 80% 60% 34% 43% 49% 51% 54% 61% 73% 82% 81% 40% 20% 0% 49% 17% 44% LT $10k $10,000 - $19,999 37% 38% 37% 13% 14% 11% 9% $20,000 - $29,999 $30,000 - $39,999 $40,000 - $49,999 35% 25% 16% 16% 4% 2% 2% 3% $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150k+ No cell phone Cell, not a smartphone Smartphone

14 but especially your age 100% 80% Smartphone ownership by age/income grouping 90% 87% 81% 77% 72% 68% 60% 40% 47% 40% 43% 20% 22% 21% 8% 0% Less than $30,000 $30,000-$74,999 $75,000 or more

15 Smartphone ownership over time 100% 80% % 81% 73% 73% 60% 40% 35% 43% 49% 37% 51% 44% 54% 38% 61% 53% 57% 26% 20% 21% 20% 0% <$10k $10,000 - $19,999 $20,000 - $29,999 $30,000 - $39,999 $40,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150k or more May 2011 May 2013

16 Impact of smartphones on broadband adoption 100% 90% 80% 70% 66% 78% % 85% 77% 94% 95% 96% 91% 90% 90% 84% 85% 60% 56% % 63% 50% % 40% 42% 30% 20% 10% 0% <$10k $10,000 - $19,999 $20,000 - $29,999 $30,000 - $39,999 $40,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150k or more Broadband at home Broadband OR Smartphone

17 Biggest impact is among young and working-age lower income adults 100% 90% 80% 70% 92% 74% +18 Broadband/smartphone adoption among HH income of <$30k per year 79% % 50% 40% 60% 55% 47% +8 30% 20% 25% 24% 10% 0% Broadband at home Broadband OR Smartphone

18 Almost everyone texts, apps track with smartphone ownership % of cell owners in each income group who 100% 90% 80% 70% 80% 75% 80% 80% 81% 88% 85% 90% 90% 73% 68% 60% 59% 50% 43% 46% 46% 49% 50% 40% 33% 30% 20% 10% 0% <$10k $10,000 - $19,999 $20,000 - $29,999 $30,000 - $39,999 $40,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150k or more Use text messaging Download apps

19 100% 90% 80% 70% Texting and apps by lower-income adults of different age groups 98% 78% Texting/apps use among cell owners with HH income of <$30k per year 92% 68% 60% 50% 40% 41% 30% 20% 14% 19% 10% 4% 0% Use text messaging Download apps

20 Internet use on cell phones 100% % of cell owners in each income group who use the internet/ on their cell phone 90% 83% 84% 80% 70% 60% 50% 50% 51% 63% 60% 59% 63% 72% 40% 30% 20% 10% 0% <$10k $10,000 - $19,999 $20,000 - $29,999 $30,000 - $39,999 $40,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150k or more 45% of cell internet users in this income group go online mostly with their cell phone 39% 27% 30%

21 Tablets growing at the low end, but still largely an elite device 80% Tablet ownership by income category 65% 60% 57% 50% 45% 40% 33% 38% 34% 26% 25% 22% 28% 20% 17% 15% 12% 16% 14% 5% 5% 0% <$10k $10,000 - $19,999 $20,000 - $29,999 $30,000 - $39,999 $40,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150k or more May 2012 May 2013

22 Summary Huge differences between young and old lower-income adults Cell phones are common for all income ranges, but smartphones are mainly a young/working age phenomenon Many lower-income adults (esp. younger ones) are using mobile devices as their primary gateway to online life

23 Resources 2013 Broadband update: Smartphone update: Ownership-2013.aspx Mobile topics page (running list of latest and greatest):

24 Aaron Smith Senior Researcher Pew Research Center s Internet

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