UK consumers remain far less willing than their global counterparts to pay for digital content, but are more willing to accept targeted advertising both on their PCs and mobiles, and share personal profile data, according to KPMG’s global Consumers & Convergence IV report, an annual survey of consumers’ day-to-day use of mobile and PC technology.

KPMG’s global Information, Communications and Entertainment practice surveyed 5,627 respondents from 22 countries online and by phone in the Spring of 2010. The study finds that 81 per cent of UK consumers would go elsewhere for content if a previously free site they use frequently began charging; only 19 per cent would be prepared to pay. This figure is much higher globally, with 43 per cent of consumers now willing to pay to access frequently used online content. This increases to 59 per cent in Asia-Pacific.

“UK consumers still haven’t come around to the idea of paying for digital content, and are clear that they will move to other sites if paywalls are put up,” says Tudor Aw, head of technology at KPMG Europe LLP.

Other key survey findings include:

• Almost three quarters of UK consumers are willing to receive online ads in exchange lower content costs
• 48 per cent of UK consumers are willing to allow their personal profile data to be tracked, although concerns over online privacy and security remain
• Mobile banking usage has doubled in the past 18 months
• 94 per cent of UK consumers have no plans to discontinue landline telephone connections and use mobile only

There is good news for advertisers, as the survey shows a strong trend for consumers to receive ads in exchange for lower prices or free content. 74 per cent of UK consumers are willing to receive ads on their PC in exchange for lower costs, while 56 per cent feel this way about their mobile.

Where UK consumers are willing to accept ads, their preference is for them to be tailored to their own interests and activities. This preference corresponds with an increase in people’s willingness to allow their online usage and personal profile information to be tracked if it would result in lower costs. 48 per cent of UK consumers would be willing to accept profile tracking, up from 35 per cent in the 2008 survey. 

Despite concerns over privacy and data security, people around the world are adopting the mobile internet at an astonishing pace as an easy and convenient method of carrying out everyday transactions including banking and shopping.

Compared with only 18 months ago, the global percentage of consumers who have used their mobile device for banking has more than doubled from 19 per cent to 46 per cent, while the percentage who have used it to buy goods and services has risen from 10 per cent to 28 per cent. 
UK consumers, however, remain more sceptical about mobile banking. Only 19 per cent have used a mobile device for banking, although this is an improvement on 18 months ago, when the figure was only 5 per cent. Similarly, only 15 per cent of UK consumers have used a mobile device to buy goods and services, though this is an improvement on the 2008 figure of just 4 per cent.  

Despite this growing familiarity with mobile commerce and profile tracking, consumers still remain worried about risking their privacy. Almost 90 per cent of consumers globally said they were concerned over privacy and security online. Consumers in the UK are also concerned about these issues, with 88 per cent worrying about their online security and 86 per cent about their privacy. This has reduced very little from 18 months ago, when these figures were 95 per cent and 89 per cent respectively. 

“At first sight, these concerns over privacy might seem to conflict with our findings that consumers are more willing to have their profile information tracked, but there seems to be a clear distinction in consumers’ minds between uncontrolled use of personal information, and properly regulated use,” says Aw. “They do see the value in allowing service providers to have access to the information necessary for more tailored services, but they are only prepared to do this if the risks are controlled, and, crucially, if there is some value in it for them.