Human Needs in a Digital World - Digital Society Index 2019

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Human Needs in a Digital World - Digital Society Index 2019
Human Needs
in a Digital
World

           Digital
           Society Index
           2019
Human Needs in a Digital World - Digital Society Index 2019
Contents

    Foreword                                                   3

    Speed read: The report in 5 minutes                    4-8

    1.     What’s digital ever done for us?               9-15

    2.     A new model of digital needs                16-30

    3.     The impact on consumer behaviour             31-35

    4.     Recommendations for brands, 		              34-38
      		   businesses and governments

    Methodology                                              39

2                                             Digital Society Index 2019
Human Needs in a Digital World - Digital Society Index 2019
Foreword by Tim Andree
             Executive Chairman and CEO, Dentsu Aegis Network

    The digital economy is the defining           Today, we also see the emergence of new
    trend of our time. Thirty years on from       digital consumers. They are digital natives
    the establishment of the world wide           and use digital products and services
    web, the legacy of that breakthrough is       across a range of activities. But they’re
    extraordinary. The proliferation of digital   also digitally savvy and have learned
    technologies has powered economic             to manage the online world on their
    growth, created jobs, lifted millions         own terms: limiting the amount of data
    out of poverty, put information into the      shared and time spent online; installing
    hands of people the world over and            ad blockers; deactivating social media
    grown access to cheaper products and          accounts. The web has grown up—and so
    services. It’s hard to imagine a facet of     has its users. Adapting to their behavior
    everyday life that has not in some way        is a huge opportunity for brands to build
    been touched by digital. For people,          better, more trusted relationships.
    businesses and society as a whole, it
    has been a massive source of growth.          We need to develop a digital economy that
                                                  works for all in society. That’s a guiding
    However, with growth comes change.            principle at Dentsu Aegis Network, both
    And change is not always easy. With           commercially and as a good corporate
    that thought in mind, two years ago           citizen. We create long-term business
    we established the Digital Society            value for clients by helping them build
    Index program of research. The                trusted relationships with their consumers
    analysis recognizes that the digital          and audiences, putting people at the heart
    economy has been a hugely positive            of their digital transformation. Through
    source of change around the world. It         our Social Impact strategy, we take a
    also recognizes that securing these           leadership role in developing the digital
    benefits in the future requires a longer      skills of future generations and supporting
    view on how technological innovation          a new wave of female entrepreneurs.
    can best serve people’s needs.
                                                  It’s a common soundbite that what’s good
    Our findings this year show that progress     for society is good for business. But it
    is mixed. People in many countries—           happens to be true. The digital economy
    particularly those in high-growth emerging    gives us the power to be better versions
    economies—are hugely positive about           of ourselves. Capitalizing on this means
    their futures in the digital economy. But     harnessing digital in the right way—with
    at the same time, many people do not          human needs placed squarely at the center.
    feel as if their digital needs are being      By doing so, we can build better brands,
    met. Whether that’s the impact of digital     better businesses and a better society.
    technologies on health and well-being,
                                                  Let’s make it real.
    or the skills that are needed to thrive
    in a rapidly changing labor market,           Tim Andree
    many people do not feel as optimistic
    or well-prepared as we would want.

3                                                                         Digital Society Index 2019
Human Needs in a Digital World - Digital Society Index 2019
Speed read:
The report in 5 minutes

       Innovation will always fail unless it      Within that context, the Digital Society
       meets people’s needs and wants.            Index puts people at the heart of the
                                                  digital economy to examine how trust can
       Brands must ensure that digital            be rebuilt to deliver sustainable growth.
       products and services address those
       needs. By doing so, not only can brands  A new needs model for the
       build better relationships with their    digital age
       consumers and audiences—they can also
       help safeguard the long-term benefits    To that end, we’ve also developed a
       of a digital economy that works for all. new needs-based framework. Taking
                                                inspiration from the seminal model of
       That’s one of the central messages       Abraham Maslow, we’ve updated his
       that emerges from the Digital Society    original “hierarchy of needs” concept
       Index 2019. Developed in collaboration   for a digital age. However, the research
       with Oxford Economics, it combines a     shows that in most of the 24 countries
       primary survey of more than 43,000       we analysed, these needs are far
       people across 24 countries with          from being adequately addressed.
       economic and statistical analysis.
                                                    • Basic needs: Access to digital
       The year since our survey first started         infrastructure has always been
       in 2018 has seen a collapse in trust in         a necessary condition to engage
       the use of digital technologies. Trust          with the digital economy. But now,
       in big tech is falling, with misuse of          in addition, trust in data use is part
       personal data the number one cause              of the foundation on which digital
       of distrust, according to our survey.           products and services must be
       Stronger regulation of technologies like        built. Only 49% of people globally
       artificial intelligence is being mooted.        believe their basic needs are being
       And social media has been blamed                met, although Western economies
       for both political polarisation and             tend to perform strongly here.
       misinformation. Thirty years on from the
       birth of the world wide web and against
       a longer-term trajectory of growth and
       prosperity brought about by the digital
       economy, 2018 has been a tough year.

4                                                                          Digital Society Index 2019
Human Needs in a Digital World - Digital Society Index 2019
• Psychological needs: Digital            the gap is particularly stark. For example,
         technologies can help enhance           in the Netherlands, 42% of men are
         users’ sense of good health and         optimistic about the societal impact of
         well-being. However, globally,          digital, but this falls to 30% for women.
         just 38% of people believe this         And in terms of age, it is younger people
         need is being met. Asian countries      who score lowest on psychological
         tend to perform poorly on this          needs, reflecting those studies that show
         measure—out of all the countries        how higher usage of digital technologies
         analysed, Singapore ranks lowest        is negatively impacting young people’s
         on psychological needs.                 mental health and well-being.

       • Self-fulfilment needs: The extent       We need to take people with us
         to which people feel they have the
         right digital education, skills and     Furthermore, while technological
         opportunities for fulfilling work can   development accelerates, many people
         offset concern about automation         around the world feel left behind by
         and the impact of artificial            digital growth. This sentiment cuts across
         intelligence. However, only 45% of      differences in economic development,
         people globally score positively on     tech maturity and culture. It’s not just a
         this measure, with under-utilisation    first-world problem: it’s a whole-world
         of digital skills by employers a        problem, with three major elements:
         challenge. For example, in Denmark,
         less than four out of ten people with   • Skills are not keeping pace with
         average or above average digital          needs—digital technologies are
         skills agree that their employer          reshaping the jobs of tomorrow, but
         makes it possible to use the full         one in three people globally can’t
         range and depth of their tech             remember the last time they did any
         knowledge.                                digital training (or never have done any).

       • Societal needs: This is about           • The pace of technological change
         people’s broader optimism that            causes anxiety. In countries such as
         digital technologies will be a            China, India and Brazil, more than
         force for good overall, helping           80% of people feel the pace of tech
         to create jobs and solve societal         change is too fast.
         challenges. Overall, less than
         half (49%) of people believe            • The future is not evenly spread—
         in digital’s role here, although          while many countries perform strongly
         people in Asia tend to be much            on our index in terms of delivering a
         more positive about the potential         digital economy that works for all—
         of digital to enhance society.            Singapore, the United States and
                                                   China top our rankings in 2019—many
    The demographics of these trends show          countries are pursuing an imbalanced
    clear anomalies. Women score lower             digital growth strategy.
    than men across all aspects of the model
    except basic needs. In some countries,

5                                                                         Digital Society Index 2019
Belief in digital drives the                This is creating significant implications
    business case for action                    for brands, businesses and governments
                                                in how they engage with consumers
    Why is this analysis important for          through digital products and services.
    businesses and brands? Because digital      The people who are hardest to reach are
    needs influence consumer behaviour.         also the most commercially valuable.
                                                Increasingly, this means brands will
    The more positive people are about          need to find new ways to maximise
    the digital economy’s wider impact on       the value of precious moments of
    society and their own digital skills, the   interaction with consumers, moving
    more likely they are to engage with         beyond reach to creating more
    digital products and services. In other     meaningful moments of engagement.
    words, give people belief in digital and
    they will be more likely to use digital     How to respond to the
    products and services. There’s not          new digital needs
    just an ethical case for delivering a
    digital economy that works for all—         The changing needs and awareness of
    there’s a strong business case too.         consumers calls for a more balanced and
                                                creative approach to engaging people
    The new digital consumer:                   in digital products and services. It is
    Hardest to reach but                        no longer enough for organisations to
    most valuable                               rely on increasing access and extending
                                                the user base—that effort must be
    The research also introduces us to the      matched by innovation in developing a
    new digital consumer. She is a digital      meaningful relationship with consumers.
    native and fully engaged in terms           Based on our analysis, we have three
    of what the digital world can offer:        recommendations each for brands,
    shopping online, using apps to take a       businesses and governments:
    taxi and streaming music. But she’s
    also taking actions that, for many
    businesses, might seem problematic.
    As our analysis shows, she’s installing
    ad blockers, reducing data-sharing and
    deactivating social media accounts.

6                                                                       Digital Society Index 2019
For brands                                     For businesses

    • Segment consumers and audiences        • Compete on openness: Transparency
      by motivation and needs: Traditional     around data usage can be a source of
      demographic approaches to segmenting     differentiation. With misuse of personal
      consumers are insufficient. Looking at   data the number one driver of distrust
      customers through the lens of digital    in the tech industry today, any business
      needs can help brands find ways to       ignores it at their peril.
      increase positive engagement with
      digital products and services, as well • Make better use of digital skills:
      as help test new services with more      Understand the digital skills that
      sceptical user groups.                   your employees have and constantly
                                               re-imagine work processes and
    • Focus on engagement, not reach:          organisational design around the full
      The most valuable consumers are          spectrum of their abilities.
      reducing the amount of data shared
      online, installing ad blockers and     • Showcase digital’s societal potential:
      limiting their time online. That means   Promote the ways social impact
      working harder to maximise the value     programmes and commercial offerings
      of interactions that will often be       can help meet people’s needs and wants.
      initiated by consumers themselves.

    • Help people undertake their own                     For governments
      digital detox: Enabling people to have
      a healthier relationship with digital      • Develop a balanced scorecard of
      may mean sacrificing access to data,         digital development: Metrics should
      but over the long-term it will lead to a     focus on inclusion and trust alongside
      better relationship based on trust.          growth of digital industries.

                                                 • Give people more control over digital
                                                   innovation: By involving people in a
                                                   more deliberative process of debate
                                                   and discussion, governments can help
                                                   shape a shared understanding of what
                                                   is and what is not acceptable in terms of
                                                   technology development.

                                                 • Harness technology to enable
                                                   effective learning: Ongoing training
                                                   and immersive learning experiences
                                                   will help leverage skills and unlock the
                                                   potential of digital technologies.

7                                                                         Digital Society Index 2019
Give people belief in
digital and they will be
more likely to use digital
products and services
1. What’s digital ever done for us?

    What’s digital ever done for us? Fans          covering more than 43,000 people
    of Monty Python will get the reference.        across 24 countries with economic
    But most people will recognise the             and statistical analysis. By measuring
    sentiment. Thirty years on from the            country-level performance across three
    birth of the world wide web, the digital       dimensions—dynamism (the strength
    economy has been a hugely positive             of the core digital sector), inclusion
    force in the world, helping to lift millions   (the breadth of access people enjoy
    out of poverty, access essential services,     to the benefits created by the digital
    find jobs, learn new skills and make           economy) and trust (the extent to which
    new connections… But despite these             people have trust in data use as well as
    opportunities, our survey shows that           broader optimism about the future)—
    many people today feel that digital is         we have created a unique people-
    changing their lives for the worse.            centric view on the digital economy.

    That paradox explains why it’s crucial         Our research reveals a mixed picture
    to understand the drivers of positive          of progress. A number of countries are
    engagement with digital technologies to        striking a healthy balance between
    ensure they meet peoples’ fundamental          dynamism, inclusion and trust, helping to
    needs. The potential benefits of digital       safeguard the long-term benefits of the
    to people and society are huge. Yet these      digital economy. But at the same time, in
    benefits risk being undermined by a lack       many countries people do not feel that
    of trust and the unaccountability of           their digital needs are being met. This
    technological development. As brands           has implications for the sustainability of
    continue to utilise digital products,          digital growth models in those parts of
    services and channels, it is essential that    the world. But it also has implications
    they are attuned to changing sentiment         for how people behave as consumers
    to ensure meaningful engagement.               and how brands engage with them.

    Building the Digital Society Index

    We have been working with Oxford
    Economics since 2017 to understand
    those changing relationships more fully
    and to examine how well countries are
    developing a digital economy that works
    for all in society. For our latest report,
    we’ve combined a major primary survey

9                                                                          Digital Society Index 2019
A deficit of trust

     The twelve months since our initial                              As a result, in 2019 the research shows
     report have seen unprecedented levels of                         we are facing tough questions about
     scrutiny of the business models of digital                       whether digital technologies truly
     companies. This scrutiny and some of the                         serve people’s best interests. Figure 1
     issues around data transparency that it                          shows that for the majority (64%) of
     has revealed has provoked fierce political                       people we surveyed, concerns around
     discussion. There are widespread calls                           the misuse of personal data are
     for the need for tighter regulation of                           undermining trust in the tech industry
     the technology sector, amid growing                              as a whole, followed by anxieties about
     anxiety about the development and                                automation and the pursuit of innovation
     use of artificial intelligence. Trust in                         for its own sake. These concerns are
     technology is in steep decline among                             unlikely to stop at the door of the
     the informed public around the world,                            tech industry itself—all businesses
     according to Edelman’s Trust Barometer.                          deploying digital products and services
     Social media in particular has been                              find themselves under similar scrutiny.
     cited as a cause of political polarisation
     and the spread of misinformation.

     Figure 1: Misuse of personal data is the #1 driver of distrust in the
     tech industry globally

     What do you believe are the main causes of distrust in the tech industry as a whole?
     (% agreeing)

                              Misusing personal data                                                          64%

      Automation and not creating enough jobs                                       26%

              Pursuing innovation for its own sake                                  26%

                          Creating excessive wealth                           20%

                             Poor working conditions                    17%

                 Lack of diversity in the workforce                     16%

                               Not paying enough tax                    16%

     Source: Dentsu Aegis Network Digital Society Index Survey 2018

10                                                                                           Digital Society Index 2019
Six out of ten                              (second behind Germany at 62%).

     people in our survey                        The lowest response is seen in Russia,
                                                 where just a quarter of people believe
     believe that not                            social media is having this effect.

     enough is being                             We need to take people with us
     done to ensure                              It is not just the direction of
     digital technologies                        technological development that is
                                                 unsettling people. It is also the pace of
     benefit everyone                            change. Take India, Brazil and China.
                                                 In these countries, more than 80%
     in society                                  of people believe that the pace of
                                                 technology change is too fast today.
     Beyond the misuse of personal data,         Across the 24 countries in our analysis,
     there are also some hot-button issues in    more than half (57%) of people believe
     specific countries. People in the United    this to be the case (see Figure 2). Even in
     Kingdom are the most likely to cite tech    Singapore, one of the most competitive
     companies not paying enough tax (36%)       economies in the world that ranks top
     and creating excessive wealth (28%)         of our index (see ‘Spotlight: Delivering a
     as drivers of distrust. While people in     balanced approach to digital growth’),
     India are the most likely to identify       nearly two-thirds of people believe
     automation and not creating enough          the pace of tech change is too fast.
     jobs (36%) as well as a lack of diversity
     in the workforce (34%) as reasons for    Of course, there have probably been
     a loss of faith in the tech industry.    few moments in history when people
                                              haven’t been worried about the pace
     A challenge to democracy?                of tech change. There is plenty of
                                              research to show that human nature
     The last year has opened up a lot        tends to over-estimate the short-
     of debate about the influence of         term impact of change, while under-
     social media on political discourse.     estimating its long-term impact. But,
     It has been argued that social media     given what we know about the scale
     is instrumental in creating an echo      and pace of change brought about by
     chamber of entrenched positions, leading digital in many walks of life, this finding
     to more polarised views and vitriol.     articulates a sense of helplessness
     Awareness has grown of ‘fake news’       in the face of relentless disruption.
     and the potential risks of public debate
     being poisoned by misinformation,        One corollary of this statement is
     leading some commentators to suggest     that six out of ten people in our survey
     that digital technologies pose an        believe that not enough is being done
     existential threat to democracy. Six     to ensure digital technologies benefit
     out of ten people in the United States   everyone in society—and based on
     that we surveyed believe that social     the original ten countries in our 2018
     media is having a negative impact on     analysis, that proportion is increasing.
     political discourse in their country

11                                                                        Digital Society Index 2019
Figure 2: People feel the pace of tech change is too fast

     To what extent do you agree or disagree that the pace of technology change is too
     fast today? (% agreeing)

     85%
             81%      80%     78%
                                       72%
                                               70%
                                                          64%
                                                                      62%     61%
                                                                                       56%                                                                                                                                 57%
                                                                                                 54%     52%
                                                                                                                  48%       48% 48%            48%
                                                                                                                                                           47%           44%   44%      44%       44%       43%   42%      40%

                                                                                                                            Estonia
                                                                                                         France

                                                                                                                  Germany

                                                                                                                                      Canada

                                                                                                                                               Australia

                                                                                                                                                                                                                           Finland
                                                                                                                                                           Netherlands

                                                                                                                                                                         UK
                                                                      Spain

                                                                              Russia

                                                                                       Hungary

                                                                                                 Italy

                                                                                                                                                                               Poland

                                                                                                                                                                                        Denmark

                                                                                                                                                                                                  Ireland

                                                                                                                                                                                                            US

                                                                                                                                                                                                                  Norway
     India

             Brazil

                              Mexico

                                                          Singapore
                      China

                                       Japan

                                               Thailand

     Source: Dentsu Aegis Network Digital Society Index Survey 2018

     Breaking the innovation cycle                                                                                  Understanding precisely how well digital
                                                                                                                    growth is addressing people’s needs is
     Much of the recent debate can be                                                                               the focus of the next section, in which we
     understood in the context of the                                                                               introduce our own model of ‘Maslow for
     innovation cycle. If technological                                                                             a digital age’ that offers a new way of
     change gets too far ahead of consumers’                                                                        looking at people’s relationship with the
     needs it risks a backlash. It’s then that                                                                      digital economy. In section 3, we examine
     policymakers may seek to step in and                                                                           how those digital needs are driving
     protect consumer interests through                                                                             consumer behaviour. And, last, in section
     common standards and regulation.                                                                               4 we offer some recommendations for
     We’ve already seen that unfold in                                                                              brands, businesses and governments to
     the context of personal data. We are                                                                           help address the digital needs of their
     also seeing debates about potential                                                                            audiences, consumers and citizens.
     regulation of artificial intelligence.
     The race to deliver greater digital
     capability has not always taken full
     account of fundamental human needs.

12                                                                                                                                                                                      Digital Society Index 2019
Spotlight: Delivering a balanced
approach to digital growth

     The Digital Society Index measures                                                                                             access to digital infrastructure as well
     how successfully countries are                                                                                                 as the quality of tech-related education.
     developing a digital economy that
     works for all. It examines performance                                                                                   • Trust: a measure of the extent to which
     across three key dimensions.                                                                                               people have confidence in data use
                                                                                                                                as well as broader optimism about
     • Dynamism: the strength of the core                                                                                       the future. ‘Trust’ takes account of
       digital sector, which involves indicators                                                                                indicators such as cybercrime readiness,
       including size and growth of the                                                                                         data protection legislation and
       Information and Communications                                                                                           transparency of data use by businesses
       Technology (ICT) sector, spending                                                                                        and governments. (For a more detailed
       on research & development and                                                                                            overview of the research methodology,
       the availability of top quality tech                                                                                     please see page 39).
       universities and talent.
                                                                                                                              The 2019 results are set out in the table
     • Inclusion: the breadth of access                                                                                       below. By aggregate score, Singapore
       people have to the benefits created                                                                                    ranks first overall, followed by the
       by the digital economy. This dimension                                                                                 United States and China (see Figure 3).
       encompasses indicators that include

     Figure 3: Countries demonstrate different strengths across the
     three dimensions of the Digital Society Index

     DSI scores

                                                                                                                                                                  Dynamism                            Inclusion                       Trust
     0.6

     0.5

     0.4

     0.3

     0.2

     0.1

     0.0
           Singapore

                       US

                            China

                                    Denmark

                                              UK

                                                   Finland

                                                             Netherlands

                                                                           Norway

                                                                                    Estonia

                                                                                              Germany

                                                                                                        Ireland

                                                                                                                  Canada

                                                                                                                           France

                                                                                                                                    Australia

                                                                                                                                                India

                                                                                                                                                        Spain

                                                                                                                                                                Hungary

                                                                                                                                                                          Poland

                                                                                                                                                                                   Mexico

                                                                                                                                                                                            Italy

                                                                                                                                                                                                     Thailand

                                                                                                                                                                                                                Japan

                                                                                                                                                                                                                        Russia

                                                                                                                                                                                                                                 Brazil

                                                                                                                                                                                                                                          Global Average

     Source: Dentsu Aegis Network Digital Society Index Survey 2018

13                                                                                                                                                                                                  Digital Society Index 2019
Figure 4: 2018 vs 2019 top ten rankings
                                       2018                           2019*
                                       1.   United Kingdom            1.   Singapore
                                       2. United States               2. United States
                                       3. China                       3. China
                                       4. Germany                     4. Denmark
                                       5. France                      5. United Kingdom
                                       6. Australia                   6. Finland
                                       7.   Spain                     7.   Netherlands
                                       8. Italy                       8. Norway
                                       9. Japan                       9. Estonia
        Source: Dentsu Aegis Network
        Digital Society Index 2018     10. Russia                     10. Germany

     The United Kingdom falls to 5th after             which there have been well-publicised
     ranking in top spot in 2018, while the            and damaging congressional testimonies
     Nordic economies dominate the top                 by the leaders of both Google and
     ten, following the expansion of the               Facebook. This imbalance signals a wider
     index from 10 to 24 countries (see                trend that sees other Western markets
     Figure 4). The reason for the UK’s                such as Australia, France, Germany and
     decline is not only because of a more             the United Kingdom in the bottom half of
     competitive peer set in 2019. Declining           the sample for trust, fuelled by a lack of
     consumer sentiment around the future              optimism about the future of the digital
     impact of digital technologies on                 economy and its impact on peoples’ lives.
     society and falling trust in data use
     largely account for its lower ranking.            By contrast, China appears to be still
                                                       relatively under-powered as far as
     Beyond these aggregate scores, the                dynamism is concerned, but performs
     relative performance across the three             well in terms of the breadth of access
     dimensions provides telling insight.              and opportunity that the digital
     This analysis reveals imbalances in               economy provides, reflecting a trend
     the way countries ensure that the                 seen among other emerging economies.
     benefits of digital growth can be
     enjoyed widely, underpinned by trust.             A third trend sees the Nordic economies
                                                       do well on inclusion and trust, but
     For example, the United States performs           perform less well as far as the dynamism
     strongly on dynamism but less so on               of their digital industries is concerned.
     trust, a finding that reflects a year in

14                                                                             Digital Society Index 2019
The race to deliver greater
digital capability has not
always taken full account of
fundamental human needs
2. A new model of digital needs

     Safeguarding the long-term benefits                                             Abraham Maslow’s seminal work on the
     of the digital economy—across                                                   hierarchy of needs, but it’s important
     employment, education, healthcare and                                           to point out that our framework is not
     the environment, for example—demands                                            a hierarchy, but a series of building
     laser focus on meeting people’s needs.                                          blocks. Except for basic needs, which
     We have developed a framework that                                              are the necessary foundation on which
     can examine people’s needs in the digital                                       the others are constructed, different
     economy through four perspectives:                                              needs will be emphasised in different
     basic needs, psychological needs,                                               contexts (see Figure 5). The following
     self-fulfilment needs and societal                                              paragraphs describe each need, how
     needs. We’ve taken inspiration from                                             we’ve measured it and why it’s important.

     Figure 5: Our digital needs framework
                                                         Maslow’s Hierarchy of Needs

                                                                                 Self-
                                                                                                     Self-fulfilment needs
                                                                           actualization:
                                                                           Achieving one’s
                                                                            full potential

                                                                           Esteem needs:
                                                                       Prestige and feeling of
                                                                          accomplishment
                                                                                                                  Psychological needs

                                                                  Belongingness and love needs:
                                                                   Intimate relationships, friends

                                                                            Safety needs:
                                                                           Security, safety
                                                                                                                                Basic needs

                                                                       Physiological needs:
                                                                     Food, water, warmth, rest

                                                                       Digital Needs

                                             Basic needs:                                     Psychological needs:
                                          Access to digital and                          Improved health & well-being and
                                             trust in data                                 quality of life through digital

                                        Self-fulfilment needs:                                   Societal needs:
                                      Digital skills empowerment                              Belief that digital will
                                             and utilisation                                     improve society

     Source: Maslow, A Theory of Human Motivation, 1943; Dentsu Aegis Network analysis

16                                                                                                                           Digital Society Index 2019
Less than half             Basic needs
     (49%) currently       Basic needs are the necessary pre-
     believe their basic   condition for people to engage with
                           digital products and services. We define
     digital needs         and measure basic needs in terms of
                           access to quality digital infrastructure
     are being met         (fixed internet and mobile networks
                           specifically) as well as the trust
                           that people express in businesses
                           and governments to use their data
                           responsibly in terms of privacy and
                           security. Lack of trust is destabilising
                           digital’s success. Without trust, the full
                           potential of digital will never be realised.

                           Based on our survey of more than
                           43,000 people around the world,
                           less than half (49%) currently believe
                           their basic digital needs are being met
                           (see Figure 6). In countries such as
                           Brazil, where that figure is only 35%,
                           infrastructure is a key source of concern.
                           While in Japan, where just 29% of people
                           report that their basic needs are being
                           met (the lowest out of the countries
                           we analysed), trust in data use is the
                           overriding anxiety. People in emerging
                           markets such as China (69%) and India
                           (67%) are much more content as far
                           as their basic needs are concerned,
                           reflecting the speed with which digital
                           infrastructure has been deployed
                           in those markets as well as greater
                           trust in businesses and governments
                           to use personal data responsibly.

17                                                  Digital Society Index 2019
Figure 6: In many countries, people’s digital needs are not being
     fully met

                                                                      Psychological    Self-fulfilment
                                            Basic needs                                                        Societal needs
                                                                      needs            needs

     China                                     69%                     27%                62%                     76%
     India                                     67%                     27%                69%                     74%
     Hungary                                   64%                     52%               40%                     43%
     Netherlands                               63%                     34%                36%                    36%
     Thailand                                  59%                     27%                63%                     75%
     Denmark                                   59%                     38%               40%                     42%
     Singapore                                 58%                     25%                53%                    56%
     Norway                                    56%                     37%                39%                     41%
     Finland                                   56%                     48%                41%                    43%
     Estonia                                   53%                     52%                41%                    43%
     UK                                        48%                      40%               37%                    40%
     Canada                                    47%                     34%                44%                    44%
     Poland                                    46%                     54%                42%                    52%
     Spain                                     46%                     36%                41%                    46%
     Mexico                                    44%                     39%                66%                    64%
     Germany                                   44%                     42%                38%                    34%
     Ireland                                   43%                     39%                42%                    39%
     US                                        43%                      41%               46%                    44%
     France                                    41%                     36%                38%                    43%
     Australia                                 41%                     37%                37%                    38%
     Italy                                     41%                      41%              40%                     50%
     Russia                                    37%                     58%                48%                    48%
     Brazil                                    35%                     44%                53%                    62%
     Japan                                     29%                     26%                21%                    32%
     Global avg                                49%                     38%                45%                    49%
     Source: Dentsu Aegis Network Digital Society Index Survey 2018

     Many businesses are already playing                                    With the goal of turning 400 acres of
     a role to meet people’s basic needs                                    empty land into a smart city by 2026,
     in digital. For example, electronics                                   Panasonic has not only installed free
     company Panasonic is putting basic                                     Wi-Fi but also LED street lights, a solar-
     needs at the heart of its ambitious                                    powered microgrid, pollution sensors and
     CityNow initiative by building a “smart                                security cameras and is even preparing
     city” infrastructure in Colorado, US.                                  the area for autonomous vehicles.

18                                                                                                       Digital Society Index 2019
Psychological needs

     While digital technologies can help       As part of our survey, we asked people
     connect people and foster a sense of      about the impact of digital technologies
     community, the ‘always-on’ nature of      on their health and well-being, as well
     social media and smartphones can          as on their overall quality of life. A clear
     have a negative impact on personal        trend in the results is the extent to
     well-being.                               which Asian countries tend to perform
                                               poorly on this measure. Singapore, which
     Achieving a healthy balance of personal   tops this year’s Digital Society Index
     technology use is becoming a key need     rankings, ranks lowest with just 25%
     of the digital economy, with a number     of people surveyed believing that their
     of businesses now helping consumers       psychological needs are being met. The
     actively manage their screen time. In     next bottom five scores are all registered
     June 2018, for example, Apple launched    from people in Asian economies.
     a range of new digital wellbeing tools
     to reduce the time people spend online.   This finding, and particularly the low
     The new Screen Time app provides a        score of India and China on this measure,
     dashboard for iPhone and iPad users       belies the stereotype that digital health
     to understand their activity, from how    is an issue only in developed economies.
     much time they spend on which apps        As emerging markets embrace digital
     to how often they pick up their device,   technologies rapidly, often leapfrogging
     as well as to set daily time limits for   developed markets and their legacy
     individual apps. It will enable parents   infrastructure, they are perhaps more
     to access their children’s activity and   aware of the sudden impact digital
     understand their browsing habits.         can have on their well-being.

19                                                                      Digital Society Index 2019
Our research shows that people in                                                 Though these populations embrace
     emerging economies are also much more                                             digital rapidly, the usage appears to
     likely to engage with digital products                                            have sharper impact on their sense of
     and services than those in developed                                              well-being.
     countries (see Figure 7).

     Figure 7: Emerging markets are driving the adoption of digital
     products and services
     Compared to last year, are you more or less likely to do the following? (% likely)

                                                                                                                Emerging            Developed

                                                                                                                                               83%
                                                                      Do my shopping online                                             72%

                                                                                                                                              79%
             Listen to music via a streaming service (e.g. Spotify, YouTube etc.)                                                 64%

                                                                                                                                              79%
                                Use an app to do my banking or manage my money                                                    63%

                                                                                                                                   67%
     Watch TV via a streaming service (e.g. Netflix, Amazon Prime, Hulu etc.)                                               56%

                                                                                                                                  66%
                                 Use an app to take a taxi (e.g. Uber, Grab, Lyft etc.)                         32%

                                                                                                                            57%
          Read a book using a digital device (e.g. Amazon Kindle, Audible etc.)                                  36%

                                                                                                                      40%
                       Use an app to consult a doctor rather than going in person                         22%

     Source: Dentsu Aegis Network Digital Society Index Survey 2018
     Note: Emerging and developed markets are defined as per International Monetary Fund classification

20                                                                                                                    Digital Society Index 2019
Self-fulfilment
               needs

     Achieving individual potential and                                                                              Only 45% of people globally score
     fulfilment in the context of the digital                                                                        positively on this measure. Learning
     economy means having the skills,                                                                                remains an area of significant weakness:
     education and opportunities to find                                                                             globally, one in three people can’t
     rewarding work. With much uncertainty                                                                           remember the last time they did any
     around the potential impact of                                                                                  digital training (or never have)—see
     digital technologies (such as artificial                                                                        Figure 8. Perhaps counter-intuitively,
     intelligence) on jobs, having confidence                                                                        people in the developed markets of
     in your ability to manage future change                                                                         Japan, Germany and France are most
     is a critical determinant of optimism                                                                           likely to say they do not remember
     and individual happiness. Our measure                                                                           when they last had any digital training,
     of this need factors in the extent to                                                                           or never have. People in the emerging
     which people feel their education has                                                                           markets of China, India and Mexico are
     prepared them for a tech future, their                                                                          least likely to agree with this statement.
     self-assessed level of digital skills and
     the extent to which employers enable
     them to utilise fully their digital skills.

     Figure 8: Globally, one in three people can’t remember the last time
     they did any digital training (or never have)

     When was the last time you undertook any digital training? (% responding either
     can’t remember or never have)
      61%

              49%       47%      46%
                                          45%
                                                      40%
                                                            39%      38%        38%           37%     37%
                                                                                                            34%      33%                                                                                                      33%
                                                                                                                               32%       31%
                                                                                                                                                   29%
                                                                                                                                                           26%
                                                                                                                                                                    25%      25%
                                                                                                                                                                                       24%
                                                                                                                                                                                                 22%
                                                                                                                                                                                                             20%

                                                                                                                                                                                                                     15%
                                                                                                                                                                                                                             11%
      Japan

              Germany

                        France

                                 Poland

                                          Australia

                                                                                                                                                           Brazil

                                                                                                                                                                    Russia

                                                                                                                                                                                                                             Mexico
                                                      UK

                                                            Norway

                                                                     Thailand

                                                                                Netherlands

                                                                                              Italy

                                                                                                      US

                                                                                                            Canada

                                                                                                                     Denmark

                                                                                                                               Finland

                                                                                                                                         Estonia

                                                                                                                                                   Spain

                                                                                                                                                                             Ireland

                                                                                                                                                                                       Hungary

                                                                                                                                                                                                 Singapore

                                                                                                                                                                                                             China

                                                                                                                                                                                                                     India

     Source: Dentsu Aegis Network Digital Society Index Survey 2018

21                                                                                                                                                                                     Digital Society Index 2019
Skills utilisation is also an area where                                                                         Some corporations are responding
     people’s needs are not being met.                                                                                directly to this need. Lloyds Banking
     Surprisingly, it’s in the Nordic economies                                                                       Group is addressing people’s self-
     where this appears to be a particular                                                                            fulfilment needs by tackling the skills
     challenge. Denmark, Finland and                                                                                  gap head on. As part of its Helping
     Norway make up the bottom three                                                                                  Britain Prosper plan, the UK bank has
     countries when people were asked                                                                                 committed to providing digital skills
     if their employer utilises their digital                                                                         training, including training on internet
     skills (see Figure 9), with around four                                                                          banking, for 2.5 million individuals,
     out of ten people in those countries                                                                             SMEs and charities to build people’s
     believing this to be the case.                                                                                   digital skills and employability.

     Figure 9: Employers are failing to utilise digital skills

     To what extent do you agree or disagree that your employer makes it possible
     for you to use the full range and depth of your digital technology skills as part of
     your job? (average % of consumers with strong or very strong skills agreeing)

      80%
                 73%     72%
                                  70%
                                          66%
                                                   62%
                                                               61%
                                                                         58%      57%     57%                                                                                                                                56%
                                                                                                  55%       55%       53%      53%           53%
                                                                                                                                                     51%   51%       50%
                                                                                                                                                                              47%      47%
                                                                                                                                                                                             43%
                                                                                                                                                                                                         41%      40%       39%
      Thailand

                 India

                         Mexico

                                                                                                                                                                              France

                                                                                                                                                                                             Australia

                                                                                                                                                                                                                  Finland

                                                                                                                                                                                                                            Denmark
                                  China

                                          Russia

                                                   Singapore

                                                               Estonia

                                                                                                                                                                                       UK

                                                                                                                                                                                                         Norway
                                                                         Brazil

                                                                                  Japan

                                                                                          Spain

                                                                                                  Germany

                                                                                                            Hungary

                                                                                                                      Poland

                                                                                                                               Netherlands

                                                                                                                                             Italy

                                                                                                                                                     US

                                                                                                                                                           Ireland

                                                                                                                                                                     Canada

     Source: Dentsu Aegis Network Digital Society Index Survey 2018

22                                                                                                                                                                                     Digital Society Index 2019
Societal needs

     In an age of complex societal challenges      and create new jobs. In 2019, just less
     and a growing divide between the haves        than half (49%) of people believe
     and the have nots, there is enormous          this need is being met, with emerging
     potential for digital technologies to         markets markedly more positive than
     play a critical enabling role in closing      developed. China tops this measure with
     the gap. Across a range of challenges,        76% while Japan is bottom with 32%.
     from eradicating poverty to improving
     access to healthcare and education,           Reflecting this overall trend, people
     we’re seeing the impact that digital          are especially pessimistic about the
     can have in closing inequalities              potential of digital technologies to
     and delivering a fairer society.              create jobs—apart from in a handful of
                                                   emerging markets (see Figure 10). This
     Ensuring that digital is able to fulfil       is likely informed by the many scare
     this potential relies in part on people       stories about the potential impact of
     sharing this optimism and trusting that       AI and robotics on jobs, which have
     digital can be a force for positive change.   generally varied between the uncertain
     Hence we measure societal needs (which        and the unpalatable. These fears
     we called ‘digital engagement’ in our         are likely to be felt in more mature
     2018 report) in terms of how optimistic       markets, while emerging markets remain
     people feel about the ability of digital      optimistic, despite the potential impact
     technologies to enhance society overall       on manufacturing jobs in particular.
     as well as solve key global challenges

23                                                                        Digital Society Index 2019
Figure 10: Only one third of people globally believe digital
     technologies will create jobs

     To what extent do you agree or disagree that emerging digital technologies, such
     as artificial intelligence and robotics, will create career opportunities for you in the
     next 5-10 years? (% agreeing)

      67%
             66%
                     63%
                                61%

                                         48%
                                                  42%
                                                              37%                                                                                                                                                           36%
                                                                      35%
                                                                              33%      33%      32%       31%      31%       30%
                                                                                                                                      28%   28%
                                                                                                                                                      26%           25%       24%       24%     24%      24%
                                                                                                                                                                                                               23%
                                                                                                                                                                                                                           18%
                                                                                                          Russia

                                                                                                                   Finland

                                                                                                                             Canada

                                                                                                                                      US

                                                                                                                                            Denmark

                                                                                                                                                      Netherlands

                                                                                                                                                                    Hungary
     India

             China

                                                                                                                                                                                        Japan

                                                                                                                                                                                                               Australia
                     Thailand

                                Mexico

                                         Brazil

                                                  Singapore

                                                              Italy

                                                                      Spain

                                                                              Poland

                                                                                       France

                                                                                                Estonia

                                                                                                                                                                              Ireland

                                                                                                                                                                                                Norway

                                                                                                                                                                                                         UK

                                                                                                                                                                                                                           Germany

     Source: Dentsu Aegis Network Digital Society Index Survey 2018

     At 36%, the overall proportion of                                                                              10 to 24 countries. Based on a like-
     people believing digital will create jobs                                                                      for-like comparison, 32% of people
     has increased from 2018, when just                                                                             in our original 10 countries believe
     29% of people believed this. However,                                                                          digital will create jobs, signalling a
     this increase is partly explained by                                                                           slight improvement in optimism.
     the increase in geographic scope from

24                                                                                                                                                                                      Digital Society Index 2019
The inequalities of need

     Our research highlights the extent           Looked at in terms of age, it is significant
     to which people believe their digital        that younger people score lowest on
     needs are not being addressed—but            the measures for psychological needs.
     also that there is significant variation
     across the countries we’ve analysed.      This trend appears to reflect how
                                               higher usage of digital technologies
     People in emerging markets tend to        is seen to be taking its toll on young
     feel more satisfied that their needs      people’s mental health and well-being.
     are largely being met, but have greater   Brands, businesses and policymakers
     concerns about the psychological          alike should be hugely concerned by
     impact of digital technologies. People in this growing crisis. Many governments
     developed markets are generally positive around the world are taking measures
     as far as their basic and psychological   to address this—for example, by
     needs are concerned, but much less so     setting up digital detox camps of the
     in respect of the capacity of digital to  type seen in China. But are brands
     meet self-fulfilment and societal needs.  stepping up to the plate too?

     The framework also reveals differences       Overall, a more balanced view of how
     by gender and age. While globally women      well people’s digital needs are being
     are more positive than men in terms          met can help improve our understanding
     of digital meeting basic needs, across       of how to engage them as users and
     the other three building blocks there        consumers. The personas on the
     is a significant gap. For example, in the    following pages bring some of these
     Netherlands, the perception of the digital   considerations to life, which we then
     economy positively impacting societal        explore further in the next section.
     needs scores 42% among men but that
     falls to 30% for women. Most likely,
     much of this reflects educational gaps
     whereby STEM subjects are generally            Younger people
                                                    score lowest on
     under-represented by girls and women
     from school through to higher education.

     Furthermore, the tech industry is
                                                    the measures for
     notoriously male-dominated (see                psychological needs
     ‘Spotlight: Women in Tech’) which may
     further compound negative perceptions
     among women about the wider potential
     of digital technologies in society.

25                                                                         Digital Society Index 2019
Spotlight: Women in Tech

     The tech industry doesn’t have a great                                  concerned. Women in IT have high self-
     reputation for gender diversity. Our                                    fulfilment need scores (86%)—higher
     own survey shows that of the c. 3000                                    than their male counterparts (see Figure
     people working in IT, the gender split is                               11) and way above the industry average
     broadly 35:65 in favour of men. The lack                                of 63%. 81% of women in IT believe their
     of gender parity within technology—                                     education gave them the right digital
     and STEM jobs, in general—has brought                                   skills for the workplace, but at 72% men
     women in tech into the spotlight and                                    in IT are less convinced. And in terms of
     onto government and business agendas.                                   societal needs, again women (81%) are
     Universities the world over have                                        more positive than men (75%) about the
     bursaries and programmes for women                                      potential impact of digital. While it’s hard
     interested in technology, like Adobe                                    to provide a definitive interpretation of
     India’s Women in Technology scholarship                                 these numbers, perhaps they represent
     programme, and charities which                                          the impact of programmes designed
     encourage girls to learn digital skills are                             to increase female participation in the
     abundant, like Girls Who Code which                                     sector by companies such as Google.
     has an alumni of over 90,000 students.                                  However, women in IT have one of the
                                                                             lowest psychological need scores at just
     However, according to our framework,                                    19%, the only dimension on which they
     the gender gap is going in the other                                    score lower than their male co-workers.
     direction as far as women in tech is

     Figure 11: How women and men in the IT sector believe their digital
     needs are being met

                                                                        Psychological   Self-fulfilment       Societal needs
                                           Basic needs                  needs           needs

        Women                                  74%                       19%              86%                   81%
        Men                                    62%                       26%               81%                  75%
       Source: Dentsu Aegis Network Digital Society Index Survey 2018

26                                                                                                        Digital Society Index 2019
Raj
                              Basic                         Psychological
                              67%                           27%

                              Self-fulfilment               Societal
                              69%                           74%

      Age: 28                                          What does this mean for brands?

      Occupation: Operations Technician                Improving digital infrastructure is fast
                                                       increasing Raj’s use of digital goods and
      Location: New Delhi, India                       services. Some developing countries are
                                                       leapfrogging more mature markets in
      Archetype: Mindful Optimist                      terms of technology and user friendliness,
                                                       unencumbered by legacy systems. This
      Raj is confident that technology can change      enables brands to engage consumers like
      society in India for the better and solve global Raj by utilising the latest technologies to
      problems—or at least get him a job one day!      offer engaging, personalised and innovative
      The operations technician is ahead of the        consumer experiences to differentiate
      game and able to make full use at work of        themselves. Furniture store Ikea, which
      the tech skills that he learnt at school.        opened its first store in India in 2018,
                                                       created immersive showrooms using virtual
      Happy with his new Samsung and its               reality technology where products can
      connectivity, Raj now has more apps on his       be viewed in 3D. As part of the store’s
      phone than he knows what to do with. Need        opening to drive interest, customers were
      a taxi? A doctor? He’s got it all. And with all  also provided with VR glasses to give a
      the data regs out there these days, he trusts    virtual tour of the store and Ikea plans
      that businesses know what they’re doing.         to open more stores in India in 2019.

      However, Raj is a bit concerned that a lot has   However, now that Raj is limiting his time
      changed very quickly. He worries that, deep      online due to digital’s negative effect on
      down, the impact of digital isn’t making him     his well-being, brands have an opportunity
      happy—in fact, quite the opposite. Taking        to address this need through the way they
      time for himself offline to hang out with        engage with consumers like him. For example,
      family or play with his local cricket team in    as part of Google’s Digital Wellbeing
      south Delhi seem to be better for him. He’s      Initiative, YouTube has introduced a feature to
      even got rid of Facebook and Snapchat—he         remind users to take a break from watching
      figures his real friends have his number.        videos and enables its users to track the time
                                                       they have spent on YouTube over the last
                                                       week with the aim of helping users to track
                                                       their digital habits and curb device addiction.

27                                                                                Digital Society Index 2019
Jan
                             Basic                          Psychological
                             63%                            34%

                             Self-fulfilment                Societal
                             36%                            36%

     Age: 43                                           What does this mean for brands?

     Occupation: HR Manager                            Having access to a high-quality
                                                       infrastructure means that Jan engages
     Location: Maastricht, Netherlands                 with brands mostly online, but views them
                                                       dispassionately as selling a product and
     Archetype: Experienced Cynic                      nothing more. Brands which fail to create a
                                                       meaningful connection with consumers like
     Jan can barely remember a world without           Jan run the risk of being abandoned when a
     technology. He makes the most out of his          cheaper or quicker competitor comes on the
     quick Wi-Fi with his nightly Netflix binges and   scene. Educating or upskilling consumers can
     uses apps for everything from reading to his      build customer trust and engagement. Brands
     weekly food shop. Thankfully, 4G makes it         that can bridge the digital skills gap felt
     so easy and Jan trusts (just about!) that his     by people like Jan may greatly strengthen
     data is safe and secure. Besides, it’s not like   their relationship with their customers.
     Jan has a choice. He’s become dependent on
     doing things with one click of the button. Why    Jan’s doubts that technology can solve the
     fight the crowds when he can do it all online?    world’s most pressing challenges would
                                                       enable a brand to set themselves apart by
     Despite this dependency, Jan thinks that he’s     showcasing the societal impact digital can
     been around technology long enough to know        have. Outdoor clothing company Patagonia
     that it actually does more harm than good.        has an impressive record of amplifying
     He can’t see tech fixing world problems like      its social initiatives through social media.
     climate change—he can’t even see it getting       In February 2018, it launched Patagonia
     him a promotion! Jan keeps hearing about          Action Works, a digital recruiting platform
     all these exciting innovations, but he’s never    which informs people of local environmental
     been offered any digital training at work.        activism opportunities. Through its strong
                                                       sense of purpose, Patagonia’s customers are
     And what’s more, Jan knows that technology        engaged by not just its products, but with
     isn’t good for him personally. Constantly         the brand itself; as of 2018, Patagonia is now
     looking at his phone was becoming a               approaching $1 billion in sales annually.
     nasty habit, so his New Year’s resolution
     this year was to spend much less time
     online—and more time having fun!

28                                                                               Digital Society Index 2019
Lucia
                            Basic                       Psychological
                            35%                         44%

                            Self-fulfilment             Societal
                            53%                         62%

     Age: 21                                       What does this mean for brands?

     Occupation: Student                           Lucia’s digital needs indicate that she is
                                                   expectant but frustrated. As well as ensuring
     Location: Curitiba, Brazil                    the brand experience in-store is as compelling
                                                   and personable as it is online, brands should
     Archetype: Frustrated Newbie                  pay attention to customers who experience
                                                   low connectivity or are in remote locations.
     Lucia is fairly hopeful for the future that   Brazilian retail company Magazine Luiza has
     technology could create. About to graduate    seen rapid growth in its e-commerce service,
     from the Federal University of Paraná,        but has been careful to cater to the needs
     the 21-year-old student feels more or less    of Brazilians who are still acclimatising to
     prepared for the modern workplace and         the digital economy. In many rural areas,
     believes that new technologies may open       Magazine Luiza is the only department store
     the door to future career opportunities or,   available and has repurposed many of these
     at least, make the world a better place.      stores to include distribution centres to
                                                   increase efficiency. It realises that having
     Lucia is nervous about how quickly her        a physical store nearby (for picking up and
     country is changing though and wonders        returning products) is critical for a population
     a little bit whether all this technology      new to e-commerce. Its methods have kept
     is good for her self-esteem. She never        competitors like Amazon at bay and the
     cared what others thought of her before       company reported a net income in Q1 2018
     she got Instagram. Although some              of $41.5 million, up 152% from a year earlier.
     things can’t change quick enough—her
     Wi-Fi has dropped five times in the last      To avoid losing customers like Lucia, brands
     month and her download speeds are so          must also prioritise their customers’ trust
     slow, she can’t even stream music.            in data security and privacy. By being
                                                   transparent about how customer data
     Moreover, Lucia doubts whether businesses     is being used and handled, brands can
     in Brazil—or even the government—             reassure customers. In October 2018, Apple
     are keeping up with all the change. She       launched a portal that enables customers
     recently switched banks because her last      to see exactly what data the company
     bank suffered a data breach; it’s put her     holds on them. This step follows on from
     off sharing too much online and she still     its Privacy Icon launched earlier in the year,
     prefers to shop in-store, just in case.       allowing its users to see what information
                                                   the company gathers using applications.
29                                                                             Digital Society Index 2019
3. The impact on consumer behaviour

     The digital needs framework can help        For example, in the United States, just
     businesses better understand their          23% of people with below-average
     audiences and consumers. Having a more      digital skills are more likely to use digital
     nuanced view of individuals and their       products and services in the following
     attitudes towards the digital economy       year. That proportion increases to 62%
     can help craft communications and           among people with above average digital
     marketing strategies and shape the          skills. A similar picture is seen in France,
     testing and roll-out of digital products    where the population (52%) with above
     and services. For example, by prototyping   average digital skills is more than twice
     new services across populations that        as likely to use digital products and
     score both high and low across each         services than people with below average
     level of the needs model, businesses can    skills. A similar difference emerges
     develop stronger insights on adoption.      between people whose societal needs
     But how else can this framework help        are being met and those who are not.
     shine a light on consumer behaviour?
     A number of insights emerge.                This means that brands, businesses
                                                 and governments cannot just look
     Belief in digital drives the                at consumers in isolation from the
     business case for action                    wider digital context shaping their
                                                 future. Give people belief in digital
     It is clear that the more positive people   and they will be more likely to use
     are about digital’s wider impact on         digital products and services. Ensure
     society and on their own skills, the        they have the skills to chart their own
     more likely they are to engage with         destiny and they will engage more
     digital products and services. We           with online commerce. This means
     examined a range of digital consumer        that there’s not just an ethical case for
     activities—from online shopping and         meeting digital needs and delivering
     banking to using an app to order a          a digital economy that works for all—
     taxi—and correlated these against           there’s a strong business case too.
     the building blocks of digital needs.
     The strongest correlations existed for
     self-fulfilment and societal needs,
     while the relationship with basic and
     psychological needs is markedly weaker.

30                                                                         Digital Society Index 2019
The new digital consumer:                                                Paradoxically however, as our analysis
     Hardest to reach but                                                     shows, this digital consumer is also
     most valuable                                                            the most likely to shop online, use an
                                                                              app to take a taxi or stream music. In
     Our research also introduces us to a                                     other words, today’s digital consumer
     new breed of digital consumer. She is                                    is doing things that businesses might
     a digital native and is taking actions to                                perceive to be negative, but are in
     limit or control her online footprint that                               fact the most positive as far as their
     may appear problematic in commercial                                     propensity to buy digital products and
     terms for businesses. For example,                                       services is concerned. In fact, across
     she’s installing ad blockers that make                                   seven online activities (shopping online,
     it harder to ensure digital ads are                                      using an app to order a taxi, banking
     being seen by target audiences. She’s                                    online, streaming music, watching TV,
     also reducing the amount of data she                                     downloading a book and consulting a
     shares and time spent online, making                                     virtual doctor), people are more likely
     it more difficult for businesses to                                      to do these over the next 12 months if
     personalise products and services. As                                    they have installed an ad blocker versus
     Figure 12 shows, these are all actions                                   those who have not (see Figure 13).
     that people in our survey took in the 12
     months leading up to it (i.e. from July/
     August 2018 to twelve months before).

     Figure 12: People around the world are taking actions to limit their
     online footprint

     Have you taken any of the following actions over the last 12 months?
     (% choosing each option)

     Taken steps to reduce the amount of data you share online (e.g. clearing
                                                                                                                          44%
                      search history, opting out of geo-location services etc.)

                              Chosen to buy a product in-store rather than online                                   36%

                                                          Installed ad blocking software                      27%

                                                                          None of these                 23%

                              Actively limited the amount of time you’re spending
                                                                                                       21%
                                             online or looking at your smartphone

                                                   Deactivated a social media account            14%

     Source: Dentsu Aegis Network Digital Society Index Survey 2018

31                                                                                                     Digital Society Index 2019
Figure 13: People are more likely to use digital products
     and services if they have installed an adblocker

     Compared to last year, are you more or less likely to do the following?
     (% who did/did not install adblockers over the last year)

                                                    Installed adblocker           Did not install adblocker
         84%
               77%               78%                    77%
                                       70%                                 71%
                                                              69%
                                                                                 62%
                                                                                             60%
                                                                                                               57%
                                                                                                   50%
                                                                                                                     47%
                                                                                                                                 40%
                                                                                                                                       33%

      Do shopping               Listen to             Use an app            Watch           Use an app          Read a          Use an app
         online                music via a            to do their          TV via a          to book          book using        to consult
                               streaming               banking            streaming           a taxi           a digital         a doctor
                                 service                                    service                             device

     Source: Dentsu Aegis Network Digital Society Index Survey 2018

     In some instances, these gaps are                                           common among young people. Across
     particularly stark. For example, less                                       all the measures we have explored that
     than half (47%) of people who did not                                       relate to taking back control, it is people
     limit the amount of time they spent                                         in the 18-24 or 25-34 age brackets
     online are likely to download an e-book.                                    that are most likely to employ them.
     For people who have limited their time                                      For example, 61% of 25-35-year-olds
     online, this proportion increases to 60%.                                   in Estonia have taken steps to reduce
     Similarly, while two-thirds of people who                                   the amount of data shared online,
     have not reduced the amount of data                                         while in Canada nearly half (47%) of
     they share online are likely to use an                                      18-24-year-olds have installed ad
     online banking service, this proportion                                     blocking software over the last year.
     increases to 77% for those who have
     taken steps to limit their data footprint.                                  Overall, this trend is creating significant
                                                                                 implications for brands, businesses
     The research indicates that people are                                      and governments in terms of how they
     learning to manage the digital economy                                      engage with consumers through digital
     on their own terms, taking back control                                     channels. Increasingly, they will need
     and reducing their online footprint.                                        to work harder to earn consumers’
     But they’re doing so in a positive way—                                     attention and find new ways to maximise
     selecting and maintaining the online                                        the value of consumer interactions
     services they want. This is particularly                                    that may be increasingly fleeting.

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