In a series of very interesting studies, StanfordUniversity and the Poynter Institute have used eyetracking equipment to observe online readers’ behaviours. Eyetracking technology tells researchers more precisely what the eyes take in than other available research options, and so the studies should shed new light on what online readers actually read, what they skim and what they ignore. It also revealed some interesting findings on what sections of the screen literally caught the eye.
Interestingly; the study revealed “a strong preference for text over graphics as entry points”, so it is not pictures, but text – briefs and captions in particular - that first catches the eye (and, logically, makes the greatest impression). However, when the first three clusters instead of just the first one were included to adjust for slow-loading sites, the margin slimmed.
The study was designed to describe behaviour rather than to explain why it occurred. A central piece of information, though, is that it was conducted in 1998-2000; and several observers have commented that the longer time used by graphics to load can explain some of the results; a claim supported by the findings of the follow-up analysis including the first three clusters.
The truth that a good picture speaks a thousand words still holds on-line. And that how quickly a picture takes to load influences to what extent readers look at it should surprise few. There is wide agreement that growth in broadband will be strong, and that this is great news for online classifieds providers among many others. But exactly what the effects may be, and how large, deserves some elaboration.
In a newspaper, text and images appear simultaneously to the reader. Any deviation from this simultaneity, however small, should be expected to have an adverse effect on the impact of images. Consequently, the real impact of the ad enrichment possibilities offered by online classifieds has yet to be seen, and probably many have ‘gotten away with’ devoting to little attention to this thus far, which will change.
The key tenet for any classifieds provider is and will be to deliver sales effect. In another opinion piece; we argue that online classifieds are superior to print classifieds in many respects; perhaps most importantly as it eliminates many limitations on information as the marginal cost of adding information is very modest. We have probably only witnessed the beginning of multi-media sales-enhancing add-ons to the basic text ad. Why should anyone want to assess an item for sale simply by reading about it when they could be able to look at it, perhaps hear it – perhaps even smell it or touch it; which technology does not permit – yet.
According to Jupiter Research; annual broadband growth averaged 65 percent in Western Europe from 2003 to 2004. Jupiter reckons that 74 percent of Western Europe’s online households will connect via broadband in 2010. This represents a very important inflection point for Internet usage, as broadband users behave differently from dial-up users in many ways:
-Broadband users are considerably more satisfied with their service; they spend significantly more time and money on-line, according to a 2003 survey conducted by Arbitron/Edison Media Research.
-Broadband users perceive the Internet as more useful to them, and it is a more important part of their lives, according to a 2005 study by Jupiter Research.
-In the same study, Jupiter found that of the 10 activities in which broadband users were overrepresented, 8 were entertainment-related (audio, video, reading magazines). Only 5 % of dial-up users downloaded video at least once a month.
-In another survey conducted in 2005 by the Online Publisher Association, 43 % of non-video viewers; i.e. regular, mainly American internet users that did not regularly watch videos on-line, stated that a faster Internet connection would motivate them to do so.
-Jupiter Research also predicts a major shift from low-tier to mid- and high-tier broadband access – i.e. faster, flat-rate connections towards 2010, which should further boost the amount of time spent on-line by the average broadband user.
In short, broadband should be great news for all that are involved in online classifieds. We think, though, that for some providers of online classifieds it may well pose a challenge as well as an opportunity.
Increased bandwith will enhance the impact of multimedia online; the most immediate effect will be to enhance the effect and thus the importance of images.
Images will be important today, other forms of multimedia will gain importance tomorrow. The effects will differ between verticals; a house is more efficiently described through images than most jobs will be, for instance. Our main point is that at present, many online classifieds providers fail to capitalize the full value-added effects of on-line classifieds; some merely upload three-liners from their print product. Another point is that as broadband development probably will benefit some providers – those who pay attention to its possibilities – more than others, it represents a differentiation opportunity and a possible inhibitor to the race-to-the-bottom price competition that many fear.
At time of writing, simplistic offerings with an ultra-local approach are en vogue, convincing some that no-fee, local, no-frills sites are the way to go. We, however, are not convinced that just because something is free and local, it must be simple and no-extras. There is a limit to how well you can compete with Craigslist and Kijiji simply by copying them.
Publishers should realize that having an online offering is not enough. To compete, a clever offering will be needed – and probably one that offers more added value than Craigslist.
The Poynter-Stanford Studies; see poynterextra.org, Jupiter Research ”Broadband User Evolution”; “European Broadband Access Forecast, 2005 to 2010”, Online Publishers’ Association Research “Drivers and Inhibitors to online video viewing”, Morgan Stanley Internet Themes 08/2004, FinnTech’s own research