COUN COUNTRY REPORT · Conversations: • First names are preferred. • Smalltalk is only of marginal importance. • Focus on objective facts and evidence. • Displaying emotions

COU

COUN

Facts,

SVI-Endowed Ch

Malte Blömer, Julia

Jörn

COUNTRY REPORT – GREAT BRITAIN

COUNTRY REPORT

Facts, Figures, Data – March 2013

Editor:

Prof. Dr. Ralf Wagner

owed Chair of International Direct Marketin

Mönchebergstraße 1

34125 Kassel

Contributors:

er, Julia Mölders, Heike Zellerhoff, Matthias

Jörn Hempel, Jennifer Hellriegel

Marketing

Matthias Koch,


ii Prof. Dr. Ralf Wagner

SVI-Stiftungslehrstuhl für Internationales Direktmarketing

Mönchebergstraße 1 – 34125 Kassel

Acknowledgment

The SVI Endowed Chair for International Direct Marketing would

like to express its appreciation to the various contributors who

assisted in creating this country report, including their efforts for

research, conducting the survey, and compiling the contents. We

would also like to thank all the participants who took part in the

survey in the scope of the seminar “International Direct

Marketing” of the University of Kassel in the winter terms of

2011/12 and 2012/13.

Limitation of Liability for Content

The content of this country report has been compiled with meticulous care and to the best

of our knowledge. However, the SVI Endowed Chair for International Direct Marketing will

not assume any liability for the up-to-dateness, reliability, completeness or accuracy of any

of the contents. The contents of this country report do not substitute for legal advice. Any

interim changes of law or of legal interpretations cannot be considered in this report.


iii Prof. Dr. Ralf Wagner



Table of Contents List of Abbreviations iv

List of Figures v

List of Tables vi

General Country Information 1

National Economy 3

British Culture 5

Direct Marketing Facts 7

- Offline - 7

- Media Availability and Usage - 9

- Reactance - 10

- Online - 11

- Mobile - 14

Legal Environment 19

List of References 20


iv Prof. Dr. Ralf Wagner



List of Abbreviations

ASA - Advertising Standard Authority

CAP - Committee of Advertising Practice

cf. - confer

e.g. - exempli gratia

F - France

Fig. - figure

GCSE - General Certificate of Secondary Education

GDP - Gross Domestic Product

UK - United Kingdom

VAT - Value Added Tax


v Prof. Dr. Ralf Wagner



List of Figures

Figure 1: Ethnic Groups 1

Figure 2: Population 1

Figure 3: GDP Composition by Sector 3

Figure 4: Hofstede’s Cultural dimensions 6

Figure 5: Share of Direct Mail Expenditure by Sector 7

Figure 6: Spendings for Direct Marketing in 2011 8

Figure 7: Household Media Penetration 9

Figure 8: Use of the Internet for Selected Activities 11

Figure 9: Most Popular Social Networks by UK Internet Visits 15

Figure 10: Proficiency in Mobile Communications 15

Figure 11: Perceived Benefit from Information in Mobile Advertising 16

Figure 12: Top 5 Apps by Usage 17

Figure 13: Top 5 Bestselling Apps 17

Figure 14: Perceived Interestingness of Promotional Apps Offering Discounts 18


vi Prof. Dr. Ralf Wagner



List of Tables

Table 1: The UK’s Results in the “Doing Business” Ranking as Put Forward by the World Bank 4

Table 2: Schwarz’s Cultural Dimensions 6

Table 3: Most Popular Social Network Sites 12


1 Prof. Dr. Ralf Wagner



Facts and Figures Languages

Fig.1: Ethnic Groups

Religion

Fig. 2: Population

Households

General Country Information

Area: 243,610 km².

Capital: London.

Population: 63,047,162 (2012).

Population density: 258,61 people per km² (varies

according to area under

scrutiny).

No. of households: 26.3 million.

GDP: 2.29 trillion (measured in US $).

Agglomeration areas: London (8,615 million).

Birmingham (2,296 million).

Manchester (2,247 million).

West Yorkshire (1,541 million).

Glasgow (1,166 million).

Christian: 71.6% Muslim: 2.7%

Other: 1.6% Hindu: 1.0%

(Unspecified or none: 23.1 %)

Based on: Central Intelligence Agency (2012)

• The official language is English.

• Regional dialects include:

Scotts, Scottish Gaelic, Welsh,

Irish and Cornish.

• Median Age: 40.2 years

• The average life expectancy at

birth is 80.17 years.

• Currently, the population

grows at a rate of about 0.55%.

Central Intelligence Agency (2012)

• The average household size is

2.4 people.

• The percentage of one-person-

and one-family-households

(couple) increases steadily.

Office for National Statistics (2012c)

White (9.2 %) Black(2.0 %)

Indian (1.8 %) Pakistani (1.3 %)

Mixed (1.2 %)

17,3%

65,8%

16,9%

under 15 years

15 - 64 years

65 years and older





Education

• Currently, there is a literacy rate of about 99%.

• School life expectancy which includes primary to tertiary education: 16 years.

• Educational expenditures measure up to 5.5% of the GDP (2007).

• Great Britain’s education system is decentralized and, thus, organized differently in England, Scotland,

Wales and Northern Ireland (hence, the subsequent information – based on the English education

system – is to be understood as an example).

• School is compulsory for young people between 5 and 16 years.

• At the age of 16, students attain the “General Certificate of Secondary Education” (GCSE).

• A GCSE with above-average grades is a prerequisite for A-Level courses (which correspond to the

German “Abitur”).

• Conversely, attaining good A-Level grades is necessary to enroll at a university.

Central Intelligence Agency (2012) & Auswärtiges Amt (2012)





Fig. 3: GDP Composition by Sector

Imports and Exports

GDP Key Figures Consumer Confidence

Labor Market

Consumption Climate

National Economy

• GDP in 2011: USD 2.29 trillion.

• GDP per capita amounts to USD 36,600.

2011 GDP real growth rate: 0.7%.


• Exports 2011: USD 479.3 billion.

• Main export partners: Germany (11.6%),

United States (10.6%), Netherlands

(8.4%), France (7.8%).

• Main export commodities: fuels,

manufactured goods, chemicals, food,

beverages, tobacco.

• Imports 2011: USD 639 billion.

• Main import partners: Germany (13.2%),

China (8.7%), Netherlands (7.1%), United

States (7%).

• Import commodities: manufactured

goods, machinery, fuels, foodstuffs.


Overall consumer confidence was -26 index

points in January, up from -28 index points in

December (has been at pretty much the same

level for the last 12 months). Conversely,

there are more manufacturers who think that

output will rise over the next three months

than there are manufacturers who think it

will fall.

UK Parliament (2013)

• Unemployment rate: 7.9% (August

2012), which equals 2.53 million

unemployed people in the UK.

• Number of people employed in the

public sector: 5.66 million (2012).

• Number of people employed in the

private sector: 23.90 million (2012).

(i) Currently, employed UK citizens work 31.7

hours a week. Full-time earnings are about

GBP 539 for men, while for women, full-time

earnings are about GBP 445.

Office for National Statistics (2012a) & Office

for National Statistics (2012e)

According to the European Commission

survey of economic sentiment, the overall UK

sentiment index rose by 0.5 points to 97.6.

UK Parliament (2013)





Table 1: The UK’s results in the “Doing

Business”

Attractiveness as a Business Site Current and Future Growth Industries

• UK‘s economy is the seventh-largest in the

world.

• It is the second-largest economy in the

EU: highly developed, diversified and

market-based.

• The government has reduced public

ownership in the last couple of years.

• The current government is planning to

reduce the corporate tax rate to 21% by

2014.

• In 2012, the UK ranked 6th

in the “Doing

Business” ranking conducted by the World

Bank (see below for details).

globalEDGE (2012), Central Intelligence Agency

(2012) & The World Bank (2013)

Category Rank

Starting a Business 18

Dealing with Construction

Permits 19

Getting Electricity 64

Registering Property 69

Getting Credit 1

Protecting Investors 10

Paying Taxes 19

Trading Across Borders 15

Enforcing Contracts 21

Resolving Insolvency 6

Overall Doing Business 6

Based on: The World Bank (2013)

• Growth sectors go hand in hand with

Britain’s changing demographics.

• Hence, besides a general desire to

bolster a great variety of economically

crucial infrastructure sectors (see

above), it is especially the “green

sectors” which get major attention

when it comes to economic

sustainability.

• Moreover, sectors with excellent

prospects of future growth are,

amongst others, the automotive

industry, renewable energies and life

sciences (such as pharmaceuticals or

medical technologies).

Department for Business Innovation & Skills





Cultural Dimensions Business Behavior

British Culture

Address:

• One should always wait to be invited to

first names.

• If a woman’s maritial status is unclear,

she should – on a preliminary basis – be

addressed as “Ms”.

• Within the realm of some professions, it

is still common to include the title or

rank when addressing somebody.

Gifts:

• Giving gifts is not a common practice.

• But: Wine, flowers and/or chocolate is

an appropriate gift in the context of an

invitation to a business partner’s home.

Business meetings:

• Punctuality is expected.

• The best time for a serious and

productive meeting is lunch.

Dress style:

• A conservative dress code prevails.

• The so-called “Casual Friday” is not

universally recognized in Great Britain;

it is better to be over-dressed than

under-dressed.

Conversations:

• First names are preferred.

• Smalltalk is only of marginal

importance.

• Focus on objective facts and evidence.

• Displaying emotions is uncommon.

globalEDGE (2012)

Schwartz’ cultural dimensions:

• Embeddedness vs. Affective or

Intellectual Autonomy describes to what

extent humans are being perceived as

part of an entirety or as independently

acting individuals. The British are rather

independent individuals who, to a

certain extent, pursue their own goals

and interests rather than those of

society as a whole.

• Hierarchy vs. Egalitarianism determines

to what extent power is (un)equally

distributed in the culture. Hierarchy

plays a rather small role in British

society, whereas egalitarianism, i. e.

equality, social justice, etc., is a common

characteristic of British society.

• Mastery vs. Harmony deals with the

relation between humans and their

environment. British culture displays a

medium Harmony value, i. e. the British

try to fit into nature and their

environment. On the other hand, they

place emphasis on advancing their

situation by self-affirmation (risk,

ambition, success, etc.) and, thus, to

actively change the world.

• The scale ranges from -1 (contradiction

to own values) over 0 (entirely

irrelevant) to 7 (very important).





Table 2: Schwartz’s Cultural Dimensions

Fig. 4: Hofstede’s Cultural Dimensions

35

89

35

66

2535

6766 65

31

80

20

66

30

118

40

91

62

46

29

PPI IDV MAS UAI LTO

Great Britain Germany China USA

UK F

Intellectual autonomy 4.684 4.070

Affective autonomy 4.204 3.121

Embeddedness 3.441 3.311

Egalitarianism 5.007 4.670

Hierarchy 2.530 1.516

Harmony 3.987 4.024

Mastery 4.083 2.892

Total mean 3.991 3.372

Schwartz (2006)

Hofstede’s Cultural Dimensions

� Power Distance: The degree to which

less powerful people of society accept

and expect that power is unequally

distributed. The British rather not

accept unequal distribution of power.

� Individualism: The degree of

interdependence a society maintains

among its members. British society

exhibits a high value on the

Individualism dimension showing that

the British tend to pursue their

individuals goals and interests.

� Uncertainty Avoidance: The extent to

which the members of a culture feel

threatened by ambiguous or unknown

situations. The British show a low

value of uncertainty avoidance and

can, therefore, be considered

prepared to take risks.

� Masculinity/Femininity: Focuses on

what motivates people, wanting to be

the best (masculine) or liking what you

do (feminine). The British culture

shows a preference for

accomplishment, success and severity

(masculine).

� Long Term Orientation: the extent to

which a society shows a pragmatic

future-oriented perspective rather

than a conventional historical short-

term point of view. The British

culture prefers a short-term

orientation.

The Hofstede Centre (2012)

Hofstede scores for Germany, China and USA

are indicated for comparison.





Address Format Postal Market

Application of Mail by Volume

Fig. 5: Share of Direct Mail Expenditure by Sector

Direct Marketing Facts

- Offline -

• Royal Mail is the UK’s governmental

postal service and delivers both mails and

parcels.

• Royal Mail covers 99% of the UK’s mail

delivery; there are other delivery services

for parcels and mails like UK Mail, Hermes

or TNT.

• Ofcom, an independent regulator of

competition for the UK’s communication

market, regulates the UK’s postal market.

• Mails are collected and delivered at least

once every working day and on Saturdays

• Standard mail delivery consists of two

services: 1st

class mail and 2nd

class mail

• 1st

class mail costs GBP 1,20 and is

delivered during the next working day.

• 2nd

class mail costs GBP 1,10 and will be

delivered during the next three days.

Ofcom (2012) & Royal Mail (2012)

Line 1: addressee’s name

Line 2: number and street name

Line 3: post town

Line 4: postcode

→ Example:

Mr. Smith

18 Somewhere Road

Harlow

CM 20 4EA

Royal Mail (2012)

• Transactional: 59%.

Advertising: 22%.

• Publishing: 8%.

Social: 8%.

Fulfilment: 3%.

Ofcom (2012)

50284655

4353

3563 3537 3620

0

1000

2000

3000

4000

5000

6000

2006 2007 2008 2009 2010 2011

Direct mail volume (in million items)

Ofcom (2012)

22,9%21,6% 21,2%

19,1% 20,2% 21,8%

Proportion of total volume





Advertising Agencies and Mail Order Business

Affiliate Marketing

Fig. 6: Spendings for Direct Marketing in 2011

(i) Expenditure on direct marketing amounted to GBP 14.2 billion (GBP 225 per capita) in 2011.

Direct Marketing Association (2012)

• Great Britain’s advertising industry is highly developed. Many award-winning marketing agencies are

located in England and especially London, e.g. Fallon, GREY group or Lowe & Partners.

• There are several address vendors like Listbroker, Data HQ, Mailing Lists UK and many others.

• Popular lettershops are BTB Mailflight or The Lettershop Group. Many other full service agencies also

offer mail services.

Design Intellect (2012)

• There are more than 5.000 affiliate programs available in the UK.

• Options vary from affiliate networks over pay per sale options to residual income and many others.

AffiliateSeeking (2013)

20%

16% 16% 15%

5%3.4% 3.3% 2.6% 2.6% 2.1% 1% 1%

0%

5%

10%

15%

20%

25%

Dis

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TV





British TV Stations Media Usage

Regular Media Activities

Fig. 7: Household Media Penetration

- Media Availability and Usage -

• Number of channels broadcasting in the

UK (2011): 515.

• On the whole, the assortment of British

TV stations is divided up into public and

commercial broadcasters.

• Public service broadcasters (PSBs):

BBC, Channel 4 (publicly-owned, but

commercially-funded PSB), Function:

Information, education and

entertainment, Independence from

government, funded by an annual

television licence fee (BBC).

• Commercial broadcasters:

ITV, Channel 5, etc. (shareholder-owned,

funded by ads and sponsorship).

• Continuous growth of online catch-up TV

via a PC or mobile in the last years.

BBC (2013), Channel 4 (2013), ITV Media

(2012) & Ofcom (2012)

Ofcom (2012)

• In 2011, British people spent 242

minutes per day in front of the TV, 175

minutes listening to the radio and

about 30 minutes on their mobiles.

• Usage of mobile devices is the strongest

during the day, while, in the evening,

the TV is the preferred media to use.

Ofcom (2012) & Ofcom (2010)

TV: 95%.

Using a mobile phone: 82%.

Listening to the radio: 64%.

Using the internet (PC/laptop): 72%.

Portable music devices: 34%.

Portable media players: 17%.

Ofcom (2012)

(2012)

Based on: Ofcom (2012)

93% 93% 92% 92% 93% 94%

90% 88% 87% 85% 85% 84%

64%

67%70% 73% 76% 79%

52%58%

68%71%

74%76%

65% 65% 67%

72%

27%30%

38%42%

20% 21%

32%39%

12%15% 17%

13%

0%

20%

40%

60%

80%

100%

2007 2008 2009 2010 2011 2012

Pro

po

rtio

n o

f A

du

lts

Mobile Telephony

Fixed telephony

Internet connection

Total broadband

Fixed broadband

Mobile data user

Internet on mobile

Mobile broadband

dongle or datacard





General Advertisements

Addressed Letters and E-mail Advertisements

Facebook

Twitter

Search Engines

Video Sharing Mobile Internet

- Reactance -

• British people, in general, exhibit no

aversion towards advertising.

• Generally, advertisements are regarded

as a source of information.

• Exception: overly pushy ads.

• There exists a high reactance towards

either, addressed letters and e-mail

advertisements.

• Still, if the recipient is familiar with the

advertising company, the reactance

decreases.

• However, this does not apply to e-mail

advertising, which might be a corollary of

the great masses of addressed e-mail ads

sent out these days.

• For about 41% of all internet users, a

search engine listing bolsters a

company’s credibility.

• However, almost 60% dislike advertising

(which is meant to complement their

search results) on search engine-sites.

• The majority of internet users prefer

entertaining advertisements on video

sharing sites (such as YouTube).

• About one third of all users actually

share such advertisements with friends

and family members.

• Advertisements right before a selected

video are highly despised.

• Social networking is the second most

common online activity.

• Most users of Facebook dislike

addressed advertising.

• This is most likely connected to the fact

that British users tend to refrain from

revealing personal data on Facebook.

• Also, most users refrain from clicking

the “I like”-button on a company’s

Facebook profile and are equally

annoyed at posts by companies on their

personal Facebook page.

• Still, a well-developed presence with

regard to social media is important, so a

pull-strategy – aided by such activities

as sweepstakes – is the best way to go.

• About 43% of all users are following

one or more company profiles.

• Thus, about two thirds of all Twitter

users sport a neutral stance towards

advertisements sent out by companies.

• Microblogs (such as Twitter) should be

used to inform potential customers

about new products or services.

Users of smartphones and other mobile

devices exhibit a strong reactance towards

any advertisement activities which might

require them to reveal personal data.

(i) Koch, M & Hempel, J. & Hellriegel, J.

(2013). Country Report: GREAT BRITAIN,

Term Paper submitted to University of

Kassel, n= 75.





Internet Use by Companies

Fig. 8: Use of the Internet for Selected Activities

- Online -

(i) The results are based on the question “Which, if any, of these do you or members of your household use the

internet for whilst at home?”; its base is made up by adults of 16 years of age with a broadband connection at

home (n=2727 UK).

Based on: Ofcom (2012)

� In 2010, 95% of businesses have internet access, with 92% connecting via broadband.

� About 51% of businesses have mobile broadband using 3G.

� Some 78% of businesses have a web page (2010).

� Some 86.5% of all businesses used the Internet to interact with public authorities in 2010.

� In terms of adapting new technologies, it can be observed that it is usually the larger companies who act

as pioneers in that regard; however, smaller businesses are gradually closing in, with increasing numbers

using broadband and mobile 3G internet.

European Travel Commission (2012) & Office for National Statistics (2012b)

97

79

78

41

49

55

42

35

31

9

16

26

2

10

10

33

15

9

19

22

16

15

25

14

0 20 40 60 80 100 120

Any

Sending and receiving email

General surfing/browsing

Purchasing goods/services

Banking

Using social networking sites

Finding downloading info for personal use

TV/Video viewing

Finding/downloading info forwork

Watching video clip/webcasts

Using local council/Government websites

Playing games





Internet use by Private People

Blogs and Social Networks

Table 3: Most Popular Social Networks by UK Internet Visits

� Some 21 million households in Great Britain (approximately 80%) have internet access.

� Around 93% of households with internet access use a fixed broadband connection.

� Roughly one third of all internet users have access to the internet on their mobile handset.

� Main online activities include communication, information procurement (for work and studies alike),

transactions (e.g. online shopping or banking) and entertainment (e.g. video viewing).

European Travel Commission (2012)

� There are a great number of British, marketing-related blogs.

� Thematically, these range from mobile communications up to even parody-blogs (see below).

� Some popular, marketing-related blogs:

(1) mashable.com: “With in excess of 5 million monthly pageviews, Mashable is the world’s largest

blog on social networking. It’s written by Pete Cashmore, a new media expert.”

(2) uk.techcrunch.com: “The UK version of TechCrunch.com focusing on Web and Mobile startups.”

(3) allaboutsymbian.com: “The world’s biggest community site and portal for smartphones running

the Symbian OS, with over 1.5 million visitors each month.”

(4) coolest-gadgets.com: “Reporting on all the latest cool gadgets and technology in the continual

search for the coolest gadget. Has over 60,000 subscribers and serves over 1 million page views

per month.”

(5) johncow.com: “A parody blog about internet marketing. Dedicated to JohnChow.com.”

Branded3 (2013)

Share of Visits (Sept. 2011) Yearly Change

Facebook 51.94% -4.32%

YouTube 22.50% +5.33%

Twitter 3.40% +1.11%

Yahoo! Answers 2.34% +0.18%

Gumtree 1.16% -0.03%

LinkedIn 0.96% +0.52%

Tumblr 0.84% +0.54%

Moneysavingexpert 0.43% -0.04%

MySpace 0.39% -0.57%

Moshi monsters 0.37% +0.15%

European Travel Commission (2012)

COU

SVI-Stiftu

Shopping and Surf Behavior

Online Payments

Loyalty Programs

• Being one of the mayor interne

of the UK’s GDP.

• In 2010, approximately 13.5% of

• As figure 7 (above) illustrates, s

carried out by an average British

• In 2011, clothes and sporting go

• Leading UK online shops (% of un

(1) Amazon.co.uk 18.

(2) Ebay.co.uk 1.

(3) Tesco.com 7.

• Most-used search engines (% of

(1) Google Search 31.

(2) Yahoo! Search 5.

(3) Bing Web 4.

Ofcom (2012); European Travel Com

• About 90% of retailers accept cr

• More than 70% of UK businesses

• Commonly-used online payment

Electronic Payments (2012)

• Some 86% of UK adults are curre

• Beside supermarkets, banks f

Membership reward points for e

• Top programs: Nectar (membe

Boots Advantage and Tesco Club

Aimia Coalition Loyalty UK Ltd. (2012


Prof. Dr. Ralf Wagner Stiftungslehrstuhl für Internationales Direktmarketing


r internet-based economies in the world, e-commerce accou

% of all purchases were done via the web.

strates, shopping for goods and services ranks among the

ge British household each week.

rting goods were the goods most frequently bought on the w

s (% of unique audience):

18.5%.

1.1%.

7.3%.

es (% of unique audience):

31.2%.

5.1%.

4.9%.

vel Commission (2012)

ccept credit and debit cards – although most are offline.

usinesses have a website, but less than 40% of these can take

payment providers include:

are currently a member of at least one reward scheme.

banks for credit cards such as American Express have

ints for every dollar in purchases charged to credit card.

(members: Sainsbury‘s, BP, Ford, Expedia, Hertz, Amercian

sco Clubcard.

(2012), American Express Company (2013), Hall (2011) &

13

e accounts for around 8.3%

g the top internet activities

on the web by both sexes

can take online payment.

ss have loyalty programs:

mercian Express, DHL, etc.),

& Smithers (2012)





Telephone Use

- Mobile -

� Total number of fixed telephones (2011): 33.2 million.

� Total number of mobile phone (2011): 81.6 million (population of approximately 63 million).

� Over half of all UK consumers (56%) now own a smartphone, while about 21% have access to a tablet.

� Accordingly, online shopping and web browsing is preferably done via tablets rather than smartphones;

around 66% of all users of mobile devices have ever made an online purchase via their tablet, while only

about 44% have done the same using a smartphone.

� Studies reveal that over one quarter of all smartphone users (roughly 28%) use their device to research

for products and compare prices.

� Download and usage of apps: Business and international news apps top the smartphone list (57%),

followed by weather (51%) and games apps (38 %).

� In regard to tablets, app downloads indicate a preference for games (64%) as well as books (60%), with

news apps arriving only at 58%.

European Travel Commission (2012); Ofcom (2012)

COU

SVI-Stiftu

General Online Behavior

Self-assessment

� Some 96% of the respondent

participants used such a store at

� Also, 87% spend at least 30 minu

� There is a significant connection

means that younger participants

� Most popular social network site

• 78% consider social networking

Koch, M & Hempel, J. & Hellriegel

University of Kassel, n= 52.

While roughly 42% consider thems

communications, most of them do

communications:

17%

Facebook

Twitter

LinkedIn

0

5

10

15

20

25

No proficiency

Fig. 9: Most Popular Social Netw

Fig. 10: Proficiency in Mobile Com




- Mobile -

pondents have an account for at least one online store

store at least once per month.

30 minutes online per day.

nnection between the participant’s age and the time spent on

rticipants tend to spend more time online than older ones.

work sites (multiple answers possible):

tworking to be an important, if not very important, aspect of t

ellriegel, J. (2013). Country Report: GREAT BRITAIN, Term

r themselves to have at least advanced skills when it

em do not see themselves as so-called opinion leaders in

80%

32%

17%

Basic Intermediate Advanced Profes

cial Network Sites

bile Communications

15

e store and, moreover, all

spent online (r=-0.643). This

of their everyday lives.

Term Paper submitted to

when it comes to mobile

eaders in regard to mobile

Professional

COU

SVI-Stiftu

Attitude Towards Advertisements

Over half of the respondents have a

advertisements are or are not benefici

� It is similar with advertisements

as Facebook: Over 50% do not f

by them.

� There is a medium negative cor

behavioural targeting and the f

customized advertising or not.

3

1413

Strongly

disagree

Disagree Somewh

disagree

Question: “Generally, I benefit from

Fig. 11: Perceived Benefit from




s have a negative attitude towards advertising, which is re

t beneficial to the consumer:

isements that are customized to the consumer’s profile on a s

do not find such information useful, and about 67% are at le

correlation between the perceived usefulness of custom

nd the feeling of being annoyed by this. This shows that co

or not.

13

7

2

13

Somewhat

disagree

Somewhat

agree

Agree Strongly

agree

I don't

know

efit from information that I get from mobile advertising.”

efit from Information in Mobile Advertising

16

ich is reflected in the way

ile on a social network, such

are at least slightly annoyed

f customized advertising via

s that consumers either like





Mobile Usage

Fig. 12: Top 5 Apps by Usage

Fig. 13: Top 5 Bestselling Apps

� Some 67% of the survey’s total respondents own a smartphone.

� Android is the most widely-used operating system (43%), followed by iOS (28%) and Windows phone

(roughly 26%).

� One smartphone user indicated that he/she did not know what kind of operating system was installed on

his/her smartphone.

� Roughly 89% of all smartphone users indicated that they use apps on their mobile device.

� The five apps most often in use (multiple answers possible):

� Almost 84% of all app users buy apps from an online store, such as the App Store, Google Play Store, Ovi

Store or Windows Phone Apps & Games Store.

� There is only a weak positive connection between the participants age and their willingness to buy apps

(r=0.284), which implies that the sale of non-free apps can be seen as independent from the (respective)

target-group’s age.

� The five apps bought most often (multiple answers possible):

� Some 91% of all smartphone users spend at least 60 minutes per day using apps.

Koch, M & Hempel, J. & Hellriegel, J. (2013). Country Report: GREAT BRITAIN, Term Paper submitted to

University of Kassel, n= 35.

87% 80%58% 55%

39%

Music Social

Networking

Games Messaging Navigation

35% 35% 23% 23% 19%

Music Games Messaging Navigation Sports /

Books





Attitude towards Mobile Advertising

Final Recommendations

� As the chart below shows, interest in promotional apps is rather scarce.

� However, 49% are at least slightly interested in such apps:

� All smartphone users would pay less than one British Pound to avoid advertising in their favorite app.

� Still, linking the observation above with the issue of being annoyed by advertising, one can reasonably

conclude that participants that feel annoyed by advertising in general are not necessarily willing to pay

to avoid ads in apps (r=-0.013). That further supports the suggestion not to use the “pay to avoid in-app-

ads” model for making turnover.

� Some 88% of all participants (n=52) fear the misuse of their personal data when utilizing mobile

marketing services, such as restaurant locators.

� Approximately the same amount thinks that it is likely to receive unrequested short text messages when

using such services.

� Generally, British smartphone users tend to spend quite a significant amount of time using apps but

dislike personalized advertisements.

� On the whole, Britons feel comfortable with mobile technology, which enables the utilization of a great

variety of mobile marketing activities.

� It is advisable to provide users with apps pertaining to the realm of music, gaming and messaging

without pestering them with unwanted text advertisements.

� Britons are willing to pay for apps if these are relevant; ad-free apps will not generate revenue.

� If carrying out a mobile marketing campaign, it is vital to gain the consumer’s trust by putting emphasis

on a judicious attitude towards data storage.

0

3

12

14

3 3

0

Question: “I think promotional apps offering discounts are interesting.”

Fig. 14: Perceived Interestingness of Promotional Apps offering discounts





General Legal Environment

Marketing-specific Information

Direct Marketing-specific Information

Legal Environment

• Great Britain has four different legal jurisdictions, each one is a Common Law system:

England & Wales: English Law

Scotland: Scots Law

Northern Ireland: Northern Ireland Law

Ireland: Law of the Republic of Ireland

• VAT is 20%.

Scottish Courts (2013), GOV.UK (2013) & Office of the Attorney General (2013)

• There are bans on advertising for tobacco both in the UK and Ireland.

• The EU regulates alcohol advertising.

• Fast food advertising is regulated by the children’s food bill.

• Data protection is regulated by the “Data Protection Act 1998”. It contains rules such as the following:

- Personal data held by an organisation may be viewed by the respective individual at any time

- Subjects may require organisations not to use their personal data for direct marketing

• Great Britain’s advertising industry has several institutions for self-regulation.

• The Advertising Standard Authority (ASA) is an independent regulator of advertising across all media. It

applies the so-called Advertising Codes and works against misleading, harmful or offensive ads.

• The Committee of Advertising Practice (CAP) writes the Advertising Codes and helps companies using

them. It also gives advice how to apply these rules.

• Sales promotion does not have many regulations; most of them come from the Advertising Codes; sales

promotions should therefore not be misleading.

The National Archives (2013), House of Commons (2004) & Deutsche Post AG (2008)

• Direct mail is allowed until the addressee asks the sender to stop (opt-out principle).

• When handing in personal information, customers must be informed if their data is going to be used for

direct mail or not.

• Advertising calls are allowed as long as the advertising purpose is explained right at the beginning.

Consumers may opt out of Telemarketing.

• Fax marketing to private consumers needs their permission (opt-in principle); fax marketing to

businesses follows the opt-out principle.

• Email marketing to private consumers needs them to opt in first. It is also allowed to send advertising

emails if there has been a purchase from a similar product category by the consumer once. Emailing

businesses follows the opt-out principle. The sender of the email has to be recognizable.

The National Archives (2013), House of Commons (2004) & Deutsche Post AG (2008)





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Documents

COUN COUNTRY REPORT · Conversations: • First names are preferred. • Smalltalk is only of marginal importance. • Focus on objective facts and evidence. • Displaying emotions