Welcome to PR Vibes™, created by Calysto Communications to provide you with key insights into the publications and events in the communications industry. Today, we’re featuring a short interview with Eddie Hold, VP, Connected Intelligence, part of The NPD Group’s Technology Analyst Business. Enjoy!
Can you tell us about NPD Connected Intelligence and how it came about?
NPD Connected Intelligence focuses on the confluence of devices, connectivity and content, the result of which creates the concept of a “connected world.” It has been a concept I’ve been thinking about for the past five or so years, but it is only in the past year or so that the components have come together to form a true solution.
Typically, when most of us think about a “connected world,” we have a natural bias towards either the mobility component, or the in-home side of connectivity. But the focus of NPD Connected Intelligence is to really consider how all connections come together to form a comprehensive network that empowers devices and leads to greater content. Think about TV and the latest influential role this device may have: it has rapidly moved from basic television content to a connected device and more recently to a “smart” TV that supports applications.
At the same time, mobile broadband has finally taken off, and not just as a component of smartphone use. We are seeing significant demand for connected tablets and notebooks through both embedded solutions as well as via mobile hotspots and USB sticks. While 60 percent of tablet users are currently using Wi-Fi only connections, that’s actually significantly down from where it was a year ago. And we expect to see that fall to the mid-fifties in the next six months: on-the-go connections are becoming a must-have.
And of course, we cannot forget Wi-Fi, which has moved beyond its in-home roots to become a viable wide-area solution, thanks to the telcos and cable companies.
At the same time, connectivity in the home is becoming a reality beyond just the laptop, with connected TVs, TV Everywhere services, cloud-based gaming and music and so on. As the two locational uses of home and mobile converge into one homogenous concept – and with nomadic use growing — the result is demand for connectivity everywhere, regardless of the underlying technologies.
The Connected Intelligence service found its home as part of The NPD Group, which saw the huge potential in this concept — shaping the original concept into a greater view of the market. Importantly, NPD has a whole host of existing services that focus on what is being purchased by consumers. This helps form the foundation of the NPD Connected Intelligence service.
Can you tell us about the market and specific areas that are on your radar?
NPD Connected Intelligence is focused on the U.S. consumer market and has three core focus areas that interrelate: Devices, Access and Content. Devices covers the growing demand for connected devices – and how these are potentially cannibalizing other device categories. Access focuses on the broadband services, looking at consumer adoption of the services, and the forecasted growth of broadband access. Content looks at demand for services and how this then drives demand for faster access and devices.
How does NPD Connected Intelligence differentiate itself?
We differentiate through both the methodology of the service, as well as through the uniqueness of our content mix. From a methodology focus, each of our segments has four core areas that are addressed:
Availability. What products and/or services are on the market that consumers may purchase? Adoption. What products and/or services are consumers buying, or planning to buy? Application. How are consumers using the products and services? This is often drastically different from the assumption, based on adoption. For example, just because a consumer purchased a connect-capable TV does not mean that they actually do connect it and use the available services on an ongoing basis. Innovation. Based on what consumers are buying, and how they are using them, what should the OEMs, service providers and content providers do next to improve their products?
From a content source, The NPD Group has sales data in many consumer categories. This provides a very strong foundation for understanding what consumers are purchasing, and where the purchase takes place. In addition, we leverage a wholly-owned consumer panel and have recently launched a smartphone metering solution, all of which we combine together to provide even greater insight into consumer behavior.
Who are your target audience/key customer segments?
The key audience comprises OEMs and service providers who focus on the consumer market in the U.S., as well as content providers who are struggling to understand this very dynamic space and must place bets on which platforms are likely to be long-time successes with consumers.
What services does NPD Connected Intelligence provide?
At its core, NPD Connected Intelligence is a syndicated service with ongoing deliverables. These include market research reports, as well as data-focused coverage that includes purchase intent reporting and market share and forecasting where required. The service includes inquiry as well, which is clearly a fundamental requirement for any successful analyst firm: understanding the needs of your customers is core to maintaining a strong market presence.
But in addition to the syndicated service, we also support custom requests from our clients.
Anything new on the horizon?
Always! This is a market that is growing rapidly and our product mix will evolve to keep up with the changes. More importantly, we are very client-focused and when we have clients asking us to expand our coverage in logical ways, we certainly look at the potential. A case in point is in the mobile broadband space. Our original plan did not include a market share and forecast report, but early feedback we received convinced us to launch this product as part of the Access service. It’s been a popular addition.
More products will be added in the next 12 months for sure.
What do you see as the key technology/trends for the next 12 months?
The one phrase you hear in all aspects of the mobile fixed CE markets is ecosystem: how can carriers ensure that they remain consumer-related when the consumer is buying into a specific ecosystem, be it Android, Apple, Google or any other one that springs to mind? And how do mobile device manufacturers also retain their consumer customers when there is little barrier to change (because the mobile barrier is now the Android ecosystem, not the specific manufacturer’s product)? It keeps a lot of people up at night and will certainly cause new innovation and changes in the next 12 months.
How do you go about identifying emerging trends?
We have a number of different ways to detect trends at various points in their path. First of all, DisplaySearch, a subsidiary of NPD, tracks display technology and shipments. This provides a heads-up of things that are still a year or more away from the retail shelves, and helps with product trends. But more importantly in many respects is seeing how consumers use the products they buy. There is often a major gap between how consumers plan to use a product and then how they really use it. By tracking both, we get an early insight into how the market needs to change to address consumer requirements. Add all of that to sales data and you have a strong solution for trend detection.
Over the course of your career, would you say there has there been any market trend/event that has surprised you?
Yes….
The interesting thing about this market is that history no longer necessarily helps us to understand the future. I realize that flies in the face of common belief, but the tech market is often without a logical precedent. Take for example, the launch of the iPad. It should have failed, based on previous evidence (price point, limited functionality – i.e., no Office compatibility, and the fact that it didn’t immediately cannibalize any other product). And yet, a significant portion of the U.S. population carries one around as well as a laptop, phone, etc.
The lesson I learned a few years ago is that while looking back over one’s shoulder has benefits and can ground you, it means you are not necessarily looking where you are going which is never a good thing…