The technology habits of America’s Baby Boomers have gained a
lot of attention, but much of the literature focuses on what they
do and not why they do it. The recent Pew Research1 study confirmed
that older Americans have warmly embraced the Internet, social
networking and especially email. The insight missing, until now, is
how companies should position themselves to attract this growing
group to their products and services.
Research by Perion Network Ltd. (NASDAQ:PERI), a developer of
software tailored for 40+ Second Wave Adopters (SWAs) of
technology, shows that older Americans have a cautious approach to
technology but they still embrace it. Rather than engaging with
technology because it is new or exciting, they base their
technology decisions on the practical impact it will have on their
lives. Though 88.5% of the Americans over 45 surveyed consider
themselves slow to adopt technology, 84.8% adopt a new technology
when it fits their current lifestyle, 89% will use new technology
if it’s better than what they use today, and 79.2% find technology
fun and enjoy new gadgets. By comparison, Internet penetration in
the US is only 78.3% according to the International
Telecommunications Union.2
The results from February 2012 focus on the 2,963 American
respondents who are users of Perion’s IncrediMail email client and
over 45 years of age. Thirty-seven percent of respondents were male
and 14% were between 45 and 54 with the remainder over 55. Using a
widely recognized classification question,3 only 11% of respondents
were classified as “Early Adopters,” leaving 89% as “Second Wave
Adopters.”
The large sample size enabled the study to delve further into
the sub-groups of older technology users and their psychological
profiles than most previously published research studies.
Key to understanding the segment is the recognition that SWAs
over 45 do not fear technology, but they need to be a little more
convinced to use it than others. Surprisingly, 76% said that
technology was fun; not a term usually associated with technology
amongst SWAs.
Technology usage was not seen as incompatible with friends even
amongst older SWAs. Only 50% of respondents felt that greater usage
of technology has hurt social interactions, and 89% said that they
were good at keeping in touch with friends. Large numbers of SWAs
have embraced established technologies with 68% using Facebook
(according to the International Telecommunications Union, US
Facebook penetration was 50.3% as of December 31, 2011) and 30%
using Skype.
While tablet penetration is still most common amongst Early
Adopters, it is clear that SWAs have begun to embrace the devices.
As more SWAs become convinced that tablets will enhance their
current lifestyles, the tipping point will be reached for adoption
amongst this group. As they embrace tablets, they will seek
services and products that cater to their particular needs.
“Tablets are easy to use and functional, so Boomers, who are
traditionally later adopters of technology, are amongst the early
users,” according to Adam Goodvach, Director of Customer
Insights.
The quick penetration of tablets among Americans 45+ who are
Second Wave Adopters provides an important lesson for consumer
technology companies. They are willing to embrace technology if
presented with a compelling reason that speaks to their particular
circumstances. With over 120 million Americans over 45 years old,
consumer technology companies need to reach out and penetrate this
market to ensure their own profitability.
Goodvach continued, “Understanding the psychological drivers of
these 120 million potential consumer technology users will be key
to ensuring uptake for technology companies. If it is pitched the
right way, new products and services will be enthusiastically
embraced. Keep it fun, simple and supportive of existing
lifestyles, and boomers will give it a go.”
About Perion Network Ltd.
Perion Network Ltd. (NASDAQ: PERI), a digital media company,
helps improve the everyday digital lives of 'second-wave adopters'
by delivering a growing portfolio of easy-to-use applications for
accomplishing popular activities. Perion focuses upon the almost
300 million consumers and under-served ‘second-wave adopters,'
those who wait to adopt technology and want products that connect
them with friends and family, enhance their online experiences, and
offer safe and easy to use solutions. The Company targets three
billion dollar market verticals: 1) communications, 2) photos and
3) online security. With 120M+ downloads and 13.3M installed base,
products include: IncrediMail, an award-winning email application,
Smilebox, a photo sharing and social expression product, PhotoJoy,
a photo discovery and sharing screensaver and wallpaper product,
and Fixie, a PC optimization product. Perion offers and develops a
range of iPhone and iPad products to answer the increasing mobile
demands of ‘second-wave adopters.' These include a photo email
application, Smilebox application with over 500,000 downloads and
Photojoy application, all available for download in the Apple App
Store. For more information on Perion (NASDAQ: PERI), visit
www.perion.com.
Forward Looking Statements
This press release contains historical information and
forward-looking statements within the meaning of The Private
Securities Litigation Reform Act of 1995 with respect to the
business, financial condition and results of operations of the
Company. The words "believe," "expect," "intend," "plan," "should"
and similar expressions are intended to identify forward-looking
statements. Such statements reflect the current views, assumptions
and expectations of the Company with respect to future events and
are subject to risks and uncertainties. Many factors could cause
the actual results, performance or achievements of the Company to
be materially different from any future results, performance or
achievements that may be expressed or implied by such
forward-looking statements, including, among others, potential
litigation associated with the transaction, risks that the proposed
transaction disrupts current plans and operations and the potential
difficulties in employee retention as a result of the proposed
transaction and in integrating the acquired business, the
distraction of management and the Company resulting from the
proposed transaction, changes in the markets in which the Company
operates and in general economic and business conditions, loss of
key customers and unpredictable sales cycles, competitive
pressures, market acceptance of new products, inability to meet
efficiency and cost reduction objectives, changes in business
strategy and various other factors, whether referenced or not
referenced in this press release. Various other risks and
uncertainties may affect the Company and its results of operations,
as described in reports filed by the Company with the Securities
and Exchange Commission from time to time, including its annual
report on Form 20-F for the year ended December 31, 2011. The
Company does not assume any obligation to update these
forward-looking statements.
1
http://www.pewinternet.org/Reports/2012/Older-adults-and-internet-use.aspx2
http://www.internetworldstats.com/america.htm3 Do you purchase
technology a) before most people you know, b) after some people you
know, c) after most people you know, d) after just about everyone
you know.
Source: Perion Network Ltd.
Perion Network (NASDAQ:PERI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Perion Network (NASDAQ:PERI)
Historical Stock Chart
From Jul 2023 to Jul 2024