Fascinating Insights: 5 Stats to Kickstart Your Week with Innovation, TV, and Generative AI
Get equipped with key statistics to empower your week ahead with a blend of innovation, television trends, and generative artificial intelligence.
‘Sluggish’ regulations slow consumer uptake of generative AI
According to a recent study by Forrester, US consumers are embracing generative AI technology at a faster rate than those in the UK, France, Germany, and Italy.
The study reveals that 34% of US consumers have already experimented with generative AI, while only 27% in the UK and 25% in France have done so. The slower adoption in Europe is attributed to what the study calls 'sluggish' regulations surrounding the technology.
Large Language Models (LLMs) are the top choice for generative AI applications, especially for search-related tasks. Among the AI platforms, ChatGPT is the most popular, with 28% of users in the US, UK, and France having given it a try. Following closely behind is My AI Chatbot, tried by 17% of users.
AI adoption is higher among younger, male, and highly educated individuals. Nearly half of millennials and Gen Z consumers in the UK have experimented with AI, while only 12% of baby boomers have done the same. Men and graduates are more likely to have tried AI, with 37% of men and 40% of graduates having experimented with it, compared to 22% of women and non-graduates. Forrester predicts that AI will have the most impact on roles that involve knowledge work.
Trying AI does not necessarily lead to trust. In the UK, US and France only 29% of consumers say they would trust information from Gen AI.
Source: Forrester
Falling inflation reduces pressure on household finances
Shop price inflation in March dropped to 1.3%, a decrease from 2.5% in February. This data comes from the BRC-NielsenIQ Shop Price Index. The March inflation rate is lower than the three-month average of 2.2% and marks the slowest shop price growth since December 2021.
Non-food inflation also decreased to 0.2% in March, down from 1.3% in February, once again below the three-month average.
Food inflation has also decreased, dropping from 5% in February to 2.7% in March. This is the tenth straight month of food inflation slowing down, reaching its lowest rate since April 2022.
Breaking it down further, fresh food inflation decreased from 3.4% in February to 2.6% in March, the lowest rate since November 2021.
Meanwhile, there was a decrease in ambient food inflation from 7.2% in February to 5.2%, compared to the three-month average of 6.6%.
"Last month, shop price inflation dropped to its lowest level since December 2021 as retailers worked hard to lower prices for their customers," stated BRC chief executive Helen Dickinson.
Easter treats were pricier this year due to high global cocoa and sugar prices. However, retailers offered great discounts on popular chocolates, resulting in lower prices compared to the previous month. Dairy prices also dropped as farmgate prices decreased, and retailers made efforts to reduce prices on essential items.
In non-food categories, prices of electricals, clothing, and footwear went down as retailers ramped up promotions to attract more consumer spending.
Traditional TV is still more popular than streaming
Traditional TV is still an important channel despite its shrinking reach, as highlighted in the GWI Global Media Landscape Report. According to the report, traditional TV continues to have high levels of trust among viewers.
The report also reveals that 56% of the total time spent watching TV is dedicated to broadcast TV, while streaming accounts for 44%. This marks a significant shift from 2013 when broadcast TV held a larger share of 74% compared to streaming's 26%.
Late 2023 marked a significant shift in viewing habits, with one in 10 internet users admitting they no longer watch live TV on a typical day. Despite this, live broadcasts of major sporting events like the Super Bowl and popular TV shows such as The Traitors continue to attract large audiences.
On the other hand, the report reveals that a higher percentage of consumers (31%) discover new products through TV advertisements compared to ads on streaming services (17%).
The report advises advertisers not to interpret 'TV time' too strictly. It highlights that in Southeast Asia, 91% of consumers use their smartphones as a second screen while watching TV. Additionally, over half (55%) of them engage with social media platforms while watching TV. Interestingly, consumers are more inclined to watch TV on their phones or tablets (73%) rather than on a traditional TV set (72%).
Source: GWI
Almost half of large businesses leaning on innovation to grow
Nearly half of major UK companies are turning to innovation to boost their growth in the coming year, as revealed by YouGov data. Specifically, 45% of these businesses are planning to introduce new products and services in 2021.
In addition, a significant number of decision-makers in large companies are prioritizing the expansion of sales and marketing activities as a key driver of growth. The survey of 1,000 decision-makers found that 41% are planning to invest in this area for growth in the current year.
It is worth mentioning that enhancing sales and marketing efforts is the top strategy for growth among small businesses, with 43% planning to focus on this in the next year. This strategy is also popular among decision-makers at medium-sized businesses.
On the other hand, large businesses are prioritizing digital transformation initiatives as their main strategy for growth, with 56% actively pursuing this. Efficiency and cost reduction measures closely follow behind at 55%.
Source: YouGov
Influencers outpace brand websites for consumers’ research
According to data from creator management platform Grin, 66% of Gen Z shoppers prefer to watch reviews on social media before making a purchase. In contrast, only 16% of all consumers rely on a brand's website for reviews.
Nearly 73.5% of people have bought a product based on an influencer's recommendation. Additionally, 20% of consumers intend to buy gifts through social media.
For a third of shoppers, social media reviews have the biggest impact on their buying choices. Furthermore, 61% have bought digital products like apps or subscriptions following a social media suggestion.
Source: Grin
Editor's P/S:
The article provides insights into various consumer trends and business strategies. It highlights the increasing adoption of generative AI, particularly among younger demographics in the US, while regulations in Europe may be hindering its widespread use. Additionally, it discusses the decline in shop price inflation in the UK, which brings some relief to household finances.
The article also examines the evolving media landscape, with traditional TV still holding strong despite the rise of streaming services. Interestingly, consumers are increasingly using their smartphones as second screens while watching TV, indicating the importance of multi-platform engagement strategies for advertisers. Furthermore, the article reveals that a significant portion of large businesses are prioritizing innovation and digital transformation for growth, while influencers continue to play a crucial role in consumer purchasing decisions, particularly among Gen Z shoppers.
