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 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 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 • 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.