Data watch: a look at marketing photo storage services.

Stories of people losing their files and photos due to computer crashes, viruses, system upgrades, and online account termination policies, have been well documented--if not experienced by many of us personally--during the last few years. Experiences like these remind consumers of the fragile nature of digital files and prompt them to make back ups.

According to the 2007 PMA U.S. Consumer Photo Buying Report, most digital camera owners (70 percent) transfer their images on the computer hard drives. About 39 percent of those consumers back up all their digital images, beyond saving them on their hard drives, to CDs, DVDs, or external drives, though not necessarily on archival-quality materials. An additional 25 percent of consumers back up some but not all their images, while 36 percent make no back ups.

Businesses have long tried to attract customers who will pay for storage by reminding them of all the dangers threatening their digital files at any moment. The limited success of those efforts has caused many to doubt the existence of a revenue opportunity in the market for photo storage. In determining whether there is a market for secure storage services, the question to ask is: "Do people care enough about losing their photos, and ore they currently spending money and time for backing up photos?" The answer, according to the recent PMA Marketing Research report, is yes.

Successful marketing of secure storage solutions and services requires: (1) businesses offer simple and inexpensive storage and retrieval solutions, (2) businesses give the option to customers regarding which pictures to store, and (3) businesses create a positive promotional message instead of using scare tactics. Consider, for instance, the protection plans offered with camera equipment purchases or other electronics. In considering whether a protection plan is needed for their photos, consumers would weigh the importance of those photos against their circumstances and risk of potential loss, as well as the time and consumables required to perform the backups themselves. Offering such protection plans at the time of every upload of pictures or every purchase of prints would be appropriate.

Photo storage services and protection plans are not just ways to capitalize on consumer fears. They are ways to create value for those consumers who are already taking steps--spending money and time--to protect their photos and purchases. And retailing is about offering people better, faster, and cheaper solutions.

For comments or questions, visit the PMA Marketing Research blog, PMA Foresight, at www.pmaforesight.com.

Percent of U.S. Households that
Back-Up Digital Camera Images
Beyond Storing Them on the Hard Drive

Back up all images 39%
Back up some images 25%
Do not back up 36%

Base: U.S. households that used a hard drive as their storage method.
Source: 2007 PMA Camera/Camcorder, Digital Imaging Surveys.

Note: Table made from bar graph.