Awareness of Voice over Internet Protocol (VoIP) on the Rise in Great Britain and in the United States

Awareness

Although the change in VoIP awareness is undeniable, there are still a substantial proportion of adults who are unaware of the technology (41% of British adults and 36% of U.S. adults). Additionally, women are far less likely than men to have heard about VoIP in both Great Britain (28% of women vs. 57% of men) and the United States (34% of women vs. 62% of men).

Derek Eccleston, Research Director at Harris Interactive, comments, "These data suggest that whilst broader marketing efforts may be having success in building awareness of VoIP generally in the marketplace, more targeted communications strategies may be needed to fill the gaps in awareness among various demographic segments."

Competition

Although VoIP competition in the market is increasing and there is plenty of choice for consumers, the survey found clear leaders in awareness among those adult consumers who are aware of Internet telephony: Vonage in the United States and Skype and BT in Great Britain.

The danger for Vonage and Skype though, in a broadening market, is that they have higher awareness levels amongst men than women (for Vonage, 54% of men vs. 34% of women, and for Skype, 58% of men vs. 30% of women), but the more ‘mass market’ players such as Yahoo, BT, AOL and Verizon find awareness levels equally as strong among both genders, both in Great Britain and in the United States.

Eccleston comments, "The entrance of more mainstream brands moves the VoIP market onto the next stage, raising the questions: Will the big players use their scale and presence to quickly establish dominance? Or will their arrival lend credibility to the market and benefit the specialists?"

The good news is the market potential

Among those adults who do not use Internet telephony, more than half (56%) in Britain and about half (49%) in the United States say they are at least somewhat interested in it. Despite this interest, it’s worth noting that only small percentages (11% in Britain and 9% in the United States) say they are ‘very’ interested in the possibility of making telephone calls via an Internet connection, and one in four adults who do not currently use VoIP but are interested in it (26% in both Great Britain and the United States) say they will be likely to consider or buy VoIP in the next 12 months or sooner..

Reasons to adopt

Among adults in both Great Britain and the United States who do not use Internet telephony, but are interested in it, substantial numbers say free calls between users of the same provider (53% of British adults and 43% of U.S. adults) and cheap local/national telephone calls (44% of British adults and 49% of U.S. adults) would appeal to them if they were to consider making calls via an Internet connection. Those in Great Britain are more likely than those in the United States to find cheaper rates for calling mobile/cell phones (56% vs. 19%) and for international calls (30% vs. 21%) appealing. Those in the United States are more likely than their British counterparts to find a caller ID feature appealing (51% vs. 32%).

Barriers to adoption

There will always be a number of people who have no interest at all in new services and that is no different for VoIP. Amongst those adults who say they are not at all interested in Internet telephony, the lack of perceived need or usage and entrenched behaviour, as indicated by those who say: ‘I don’t make many calls’ (40% in Great Britain, 40% in the United States), ‘I use my mobile for my calls’ (19% in Great Britain, 29% in the United States) or ’I will always prefer to use my landline’ (42% in Great Britain, 28% in the United States), are key barriers to VoIP. Also the association between VoIP and the PC is deterring some from using this service, with 28 percent of those in Britain and 35 percent of those in the United States saying ‘I don’t want to talk to my computer.’

Derek Eccleston goes on to say, "Overall, the market is much more open to VoIP than it was at the beginning of 2005. For now, it is still a service used by a niche audience, mainly male. To tempt a broader range of consumers to try the service, players in the market need to generate greater awareness of the service, explaining what it does and how it works, clearly communicating the key benefits delivered by the service, and find ways to lower the perceived barriers to usage. The most successful companies going forward will be those which deliver the right messages and the right mix of benefits to targeted segments of consumers with the most potential for take-up. Watch out for the winners and losers over the coming months."