Technology adoption by lower income populations APHSA-ISM Annual Conference October 8, 2013 Aaron Smith, Senior Researcher Pew Research Center
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
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, 75-100k, 100-150k, 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
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
1) Internet Use and Home Broadband Adoption
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)
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
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% 18-24 25-34 35-44 45-54 55-64 65+ 18-24 25-34 35-44 45-54 55-64 65+
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?
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
2) But mobile devices are also playing a big role
Cell ownership > internet use 100% 90% 83% 87% 87% 89% 92% 92% 96% 94% 98% 98% 97% 96% 97% 96% 80% +13 +17 85% 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
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
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% 18-29 30-49 50-64 65+ Less than $30,000 $30,000-$74,999 $75,000 or more
Smartphone ownership over time 100% 80% +14 +23 +23 +14 +10 +23 +20 +25 +8 82% 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
Impact of smartphones on broadband adoption 100% 90% 80% 70% 66% 78% +14 74% 85% 77% 94% 95% 96% 91% 90% 90% 84% 85% 60% 56% +12 64% 63% 50% +14 54% 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
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% +19 60% 50% 40% 60% 55% 47% +8 30% 20% 25% 24% 10% 0% 18-29 30-49 50-64 65+ Broadband at home Broadband OR Smartphone
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
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% 18-29 30-49 50-64 65+ Use text messaging Download apps
Internet use on cell phones 100% % of cell owners in each income group who use the internet/email 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%
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
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
Resources 2013 Broadband update: http://pewinternet.org/reports/2013/broadband.aspx 2013 Smartphone update: http://pewinternet.org/reports/2013/smartphone- Ownership-2013.aspx Mobile topics page (running list of latest and greatest): http://pewinternet.org/topics/mobile.aspx
Aaron Smith Senior Researcher Pew Research Center s Internet Project asmith@pewresearch.org @pewinternet @pewresearch