Post on 15-Jul-2015
transcript
SMARTPHONE DOMINANCE
T H E S H I F T T O
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W H A T ’ S C O V E R E D
Rapid Adoption:
What are the drivers impacting the pace of
smartphone ownership?
Factors expediting the shift:
How should advertisers and publishers be building for a mobile majority first world?
Thinking Beyond Ownership:
Now the majority of consumers own a
smartphone, but so what?
The purpose of this study is to understand mobile migration patterns and which factors will accelerate the shift to a mobile-first world for consumers and advertisers.
Background
US: 2,768
UK: 1,010 GR: 1,016
FR: 1,011
Methodology: Quantitative + Analytics WHO § 5,805 18-64 year old
smartphone owners
§ Data population and ownership
WHEN January 2015
WHAT 30-minute online survey
FLURRY ANALYTICS Aggregated All Global Data from January 2015
• 600K apps • 250M phones • 1/3 of all app opens
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This is the most comprehensive data set we’ve ever used in Yahoo over the past decade to garner insights
RAPID ADOPTION PATTERNS H O W S M A R T P H O N E S A R E D I F F E R E N T
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ADOPTION CURVES FOR MODERN CONVENIENCES
100
50
1900 1915 1930 1945 1960 1975 1990 2005
The adoption curve for modern conveniences has shortened considerably Adoption curves since 1900
Source: Visual Economics
TELEPHONE
ELECTRICITY
AUTO RADIO
STOVE
CLOTHES DRYER
MICROWAVE
DISHWASHER
COLOR TV
CELL PHONE
INTERNET
VCR
FRIDGE
CLOTHES WASHER
AIR CONDITIONING
COMPUTER
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2012 2013 2014 2015 2016 2017 2018
Smartphone ownership will reach majority ownership rates in the next 3 years
6 Source: eMarketer | 2015
UK USA Germany France 73.6% 69.1% 66.9% 64.9%
50% ADOPTION
Adoption Rate
The speed of smartphone adoption can be attributed to the multiple products it has replaced
7 Source: eMarketer Report / Press Play: Infographic by Nicolas Rapp / Source: Appliance, Sept Issue, multiple years
REPLACEMENT CYCLES FOR ELECTRONICS PRODUCTS
PRODUCT AVG. LIFE (YEARS)
Cordless telephone 8
Color TV 8
CD Player 6
Telephone answering machine 6
VCR 5
Camcorder 5
Fax 4
PC 2
Mobile Phones 1
REPLACEMENT TIME
Beyond Ownership W H O I S D R I V I N G S M A R T P H O N E D O M I N A N C E ?
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What does a
Smartphone Dominant consumer look like?
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MOBILE FIRST.
67% state that their smartphone replaces their PC, and is the main way they access the internet
MOBILE LEAD.
75% of their digital time is on a mobile device +50% vs. an average smartphone owner
MOBILE IMMERSED.
+50% more activities performed on a mobile devices vs. an average smartphone owner
Users who spend most of their time on their smartphones and are using them to replace their PC
Nearly 1/5 of users are Smartphone Dominant
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SMARTPHONE DOMINANT
18% TODAY
Smartphone Dominant users also dominate sessions and time spent on mobile devices
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21%
87% 78% 30%
11% 19%
49%
2% 3%
DEVICES SESSIONS TIME SPENT
Medium Light
Heavy: Smart Phone Dominant
DEVICE USAGE
Source: Flurry by Yahoo Analytics, mapped devices only, Jan 2015
Dominant Indeed
Currently Smartphone Dominants tend to be female Millennials and parents… Proportion of subgroups that are Smartphone Dominant
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FEMALES W/ CHILDREN 18-‐34
37%
FEMALES 18-‐34
29%
MALES 18-‐34
21% FEMALES 35-‐64
16% MALES 35-‐64
11%
18-34 35-64 Age Groups │
SMARTPHONE DOMINANT 50% 0%
In the US only, Hispanics
38%
…due to the smartphone being tuned to the active lifestyle of parents with young kids
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AGREE STATEMENTS TOTAL WOMEN 18-34 PARENTS 0-6
I'm using multiple devices at the same time more often than I did in the past 51% 62% 61%
My smartphone is the main way I access the internet, and I only use my computer to fill in the gaps with the things that aren't easy to do on my smartphone
28% 40% 42%
I often start things on my computer but move to my smartphone because I need to continue the activity on the go 28% 33% 37%
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SMARTPHONE DOMINANT
67% IN TOTAL
33% NOT LIKELY TO BE
Future of Smartphone Dominants The vast majority of users will eventually become Smartphone Dominant
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Developing for larger screens
Creating experiences for cross-screen, not
mobile only
Adapting to trends in the app revolution
Factors that will expedite the shift to a Smartphone Dominant world
More efficient, better user experiences will accelerate the shift to Smartphone Dominance Factors that are holding back consumers from being Smartphone Dominant among future Smartphone Dominant users
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UX (easier to type, read, easier
to browse/compare) 67%
Data & Internet Improvements
54%
Better Apps 44%
FULL-SIZE TABLETS 9.74 MIN
As screen sizes grow, engagement will increase
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SMALL TABLETS 6.88 MIN
MEDIUM PHONES 4.18 MIN
SMALL PHONES 3.8 MIN
Average time spent per session | Minutes
Source: Flurry by Yahoo Analytics, mapped devices only, Jan 2015
Developing for larger screens
Creating experiences for cross-screen, not
mobile only
Adapting to trends in the app revolution
Factors that wi l l expedi te the sh i f t to a mobi le lead wor ld
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Smartphone Dominant users are more digitally active across PC and Mobile # of different activities done last day used
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SMARTPHONE DOMINANT USERS
# OF ACTIVITIES DONE ON DEVICE CURRENT SD FUTURE SD
Smartphone 16 11
Computer 11 14
TOTAL 27 25
Smartphone Dominant users want digital experiences to go across devices % smartphone users agree
20 D4_12. How much do you agree or disagree with the following statements about devices? / Smartphone Dominant In Future (n=2913)
“I'm using multiple devices at the same time more often than I did in the past”
51% TOTAL
66% CURRENT SD
56% FUTURE SD
In fact, 2 in 5 smartphone owners go across devices daily to continue the same digital activity In the past day, I continued a digital experience across the following devices
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42%
28%
23%
16%
15%
14%
DEVICE TO DEVICE – CURRENT SMARTPHONE DOMINANT USERS
Smartphone to Computer
Computer to Smartphone
Smartphone to Tablet
Tablet to Computer
Computer to Tablet
Tablet to Smartphone
42% Will go across devices on at least one digital activity (Among total smartphone users)
Communication, content & search related activities span across devices most Sequential experience activities for any device – mobile, tablet & PC among those who had a sequential activity
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PHOTOS 29%
ONLINE VIDEO 35%
SOCIAL NETWORK 44%
EMAIL 59%
SEARCH 42%
CONTENT 48%
OTHER MENTIONS
Banking 29%
Shopping 29%
Playing games 28%
Streaming music/radio 26%
Using an IM or a texting app 26%
Work/school 20%
Finding directions/using GPS 20%
% smartphone dominant users agree
23 D4_12. How much do you agree or disagree with the following statements about devices? / Smartphone Dominant In Future (n=2913)
“I wish the tasks that I started on one device could transfer more easily to another device”
43% TOTAL
57% CURRENT SD
51% FUTURE SD
Despite high crossover, sequential experiences are not smooth, especially among the Smartphone Dominant
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Consumers will transfer across devices differently based on content, social, & utility experiences Device switches done In last day used by specific activities
§ Email § Search § Shopping
§ Games § Short-form Video § Content § Photo’s § GPS § Streaming Music
§ Long-form Video § Work Activities § School Activities
■ Social Networking ■ Texting ■ Banking
Developing for larger screens
Creating experiences for cross-screen, not
mobile only
Adapting to trends in the app revolution
Factors that wi l l expedi te the sh i f t to a mobi le lead wor ld
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Saw an ad about it 39%
I need it for a specific task
53%
Task-based apps and replacing an existing app are top reasons users download new apps
Replace an existing app
49%
Read about in an article
39% Friend told me about it
41%
How did you hear about these apps | Among Actively Downloading
Motivations to download apps | Among Total
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App replacement is done by ~1/2 of Smartphone Dominant users each week I’m replacing apps currently on my device
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A FEW TIMES A WEEK OR MORE
TOTAL 34%
CURRENT SD 44%
FUTURE SD 43%
AT LEAST ONCE A MONTH
TOTAL 52%
CURRENT SD 64%
FUTURE SD 62%
Notable Quotable
“I am searching for apps that might replace some of the apps I currently have on my phone…”
Growth in sessions is driven by lifestyle, productivity and messaging apps Changes in annual growth in app usage | Sessions
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74% 48%
32% 28%
171%
116%
100% 88% 87%
LIFESTYLE & SHOPPING
AVERAGE 76%
UTILITIES & PRODUCTIVITY
MESSAGING HEALTH & FITNESS
TRAVEL SPORTS NEWS & MAGAZINES
MUSIC, MEDIA & ENTERTAINMENT
GAMES
Source: Flurry by Yahoo Analytics, mapped devices only, Jan 2014-2015
However, what will move media experiences even further is phablet ownership
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30%
53%
29%
158% 144%
130%
SPORTS NEWS & MAGAZINES MUSIC, MEDIA & ENTERTAINMENT
Phablets All device types % growth in category usage % over index
427% 172% 255%
Source: Flurry by Yahoo Analytics, mapped devices only, Jan 2014-2015
Engage future Smartphone Dominant users around life management & immersive content experiences Smartphone activities done last day
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CURRENT SD FUTURE SD % GAP | CURRENT VS. FUTURE
Banking 33% 17% Shopping 21% 11%
Online video 32% 19% Streaming music 31% 19% Social networking 66% 41% Photos 34% 22% Search 50% 33%
Emailing 64% 46% IM or text 47% 34% Directions & mapping 23% 17% Playing games 37% 28% Reading digital content 49% 38%
94% 91%
68% 63%
61% 55%
52%
39% 38%
35% 32%
29%
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FINDINGS
WE ARE JUST AT THE BEGINNING. In the next 5 years, 71% of Future Smartphone Dominant users will migrate and make mobile first This group will expand throughout the next 5 years to include all demographics, not just the early adaptors: Millennials, parents with young kids or Hispanics
DEVELOPING EXPERIENCES FOR LARGER SCREENS. Bigger screens sizes drive mobile engagement. They also offer opportunity for more viewable & engaging experiences to develop around
IMPROVING CROSS DEVICE EXPERIENCES. Communications, content, and search the biggest opportunities as 2/5 of all smartphone owners already attempt to port experiences across multiple devices
ADAPTING TO TRENDS IN THE APP REVOLUTION. Apps are where digital time is spent & app replacement is what is driving app downloads. Developers of experiences need to think about iteration, innovation and marketing to drive trial
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IMPLICATIONS
MORE SPACE. When building a mobile strategy, companies should account for the rapid adoption of larger phablet devices. More space = more ways to connect with your user. Native ad formats account for this size naturally and beautifully
INTEGRATED MOBILE BUDGETS. Mobile ad budgets should not be thought in isolation. With 2 in 5 consumers crossing devices daily, siloed mobile budget should evolve to larger cross-device buys. Native advertising, specifically, which runs on responsive design is a must-buy that creates that efficiency and ease for marketers
CONSTANT ITERATION & INNOVATION. In order to be a major player in the app game, the messaging to drive your app trial must evolve as consumers are constantly replacing apps. Message what’s innovative & better, not what’s necessarily new
GET THE WORD OUT. In order to drive app downloads and app adoption, developers & companies need to have a multi-pronged marketing strategy that uses paid advertising, creates opportunities through content marketing through articles, and ultimately drives WOM