New York, NY - A comprehensive, quantitative survey on the micropayments market was released today at the Micropayments Conference in New York City. The survey found that more than 4 million Americans have purchased digital content for less than $2 in the past year. Additionally, a projected 30 million Americans are at least somewhat likely to purchase content for less than $2 in the next twelve months. Further, the current lack of compelling content in this price range is cited as the primary reason consumers have not yet made an online purchase for $2 or less. Among consumers who had made online purchases of $2 or less, the most commonly purchased items were ring tones, music, games and articles. Teens were most likely to indicate plans to purchase items for $2 or less online in the near future. The survey showed that the most significant factors limiting consumer use of micropayments is the lack of available and compelling content in this price range. "The data suggest that increasing the availability and consumer awareness of compelling online content for less than $2 could be the key to sparking growth in this emerging online commerce area," said Matt Kleinschmit, director, Ipsos-Insight. The survey, conducted by global survey-based market research group Ipsos-Insight, and Peppercoin, a micropayments company that enables profitable new business models for low-priced digital content and physical goods, was a scientific, random sample telephone survey of 1,100 Americans ages 12 and older and has a margin of error of +/- 3 percent. "The music industry has recently forged new ground and proven the viability of the micropayments model. Now it is up to other online merchants to find new ways to package their existing content and to develop new, innovative content to grow this market," said Robert Kiburz, president and CEO of Peppercoin. "The technology is available today to enable cost-effective sales of low-priced digital content and now the most significant challenge is packaging and pricing the content to meet consumer demand." Specific survey responses include:
- More than 44 percent of those Americans surveyed have made an online purchase in the past year.
- More than 50 percent of the people surveyed who have purchased items online indicated that the main reasons they have not made a micropayment was because it was not worth the effort, lack of interesting content or availability of content.
- Fifteen percent of Americans ages 12 and older indicated they are at least somewhat likely to make a micro purchase in the next 12 months. This translates into approximately 30 million potential customers.
- Teenagers are the most likely age group to purchase content online with micropayments in the near future. Thirty-seven percent of teens were at least somewhat likely to purchase something online for less than $2 in the next 12 months and they are currently the most likely to make purchases of under $20.
- Less than one percent of respondents indicated that security of the transaction was a concern that prevented them from purchasing items online.
- The data show that 65 percent of current micropurchasers are male and 28 percent are under the age of 25.