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Copyright © 2010 The Nielsen Company. Confidential and proprietary.
Title of Presentation Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Courting Today’s Mobile Consumer
July 18, 2012
Dan Lee Director of Product, Digital
Nielsen
Presented by
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Consider…JUST 5 years ago
How things have changed…even in the past year!
The first iPhone was just released – Android
was still a vision for the future
Smartphone penetration was in single digits
The first iPad was still ~ 3 years away
Phones were primarily used for phone calls
Source: Nielsen
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Agenda
Who is the mobile consumer? 1
What is the mobile consumer doing on their device?
2
How does mobile compare to TV and Online? 3
How do consumer’s feel about advertising on their mobile devices? 4
4
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Who is the mobile consumer?
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
What are mobile consumers using today?
29% 31% 30% 35% 36%
38% 37% 38% 41% 42% 43% 44% 44%
46% 48% 48%
51% 52% 53% 55%
71% 69% 70% 65% 64%
62% 63% 62% 59% 58% 57% 56% 56%
54% 52% 52%
50% 49% 48% 47%
45%
Oct-
10
Nov-1
0
Dec-1
0
Ja
n-1
1
Feb-1
1
Ma
r-11
Apr-
11
Ma
y-1
1
Ju
n-1
1
Ju
l-1
1
Aug
-11
Sep
-11
Oct-
11
Nov-1
1
Dec-1
1
Ja
n-1
2
Feb-1
2
Ma
r-12
Apr-
12
Ma
y-1
2
Ju
n-1
2
Smartphone & Feature Phone Penetration, US Mobile Subscribers Ages 18+
Smartphone
Feature phone
Source: Nielsen Mobile Insights
They are now mostly smartphone owners
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59% 60%
47%
31%
22%
16%
67%
72%
58%
46%
34%
25%
74%
81%
76%
61%
51%
42%
Ages 18-24 Ages 25-34 Ages 35-44 Ages 45-54 Ages 55-64 Ages 65+
<50k 50k-<100k 100k+
Smartphone Penetration by Age and Income Mobile Insights Q1 2012
This is especially true for younger and higher income demographics
Ages 55+
is 30%
with 51%
annual
growth
Source: Nielsen Mobile Insights
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
NUMBER OF
ANDROID & iOS USERS
PERCENTAGE OF
APP DOWNLOADERS WITH ANDROID AND iOS PHONES
49M 90M
80% 92% APP APP June 2011
June 2012
May 2011
May 2012
Consumers continue to adopt Android and iOS devices
Source: Nielsen Smartphone Analytics
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Males tend to be first adopters, but females are quick to catch up
Gender can impact how consumers interact with apps
53%
58% 58% 56%
58%
50%
55% 51% 52%
55%
Facebook YouTube GoogleSearch
PandoraRadio
Mar-11 Mar-12
47% 42% 42% 44% 42%
50% 45%
49% 48% 45%
Facebook YouTube GoogleSearch
PandoraRadio
Mar-11 Mar-12
44%
58% 56%
42%
Low(bottom third of app
users)
High(Top third of app
users)
Female Male
Male Share of Top Apps
Female Share of Top Apps
Gender Share by Usage Segment
Source: Nielsen Smartphone Analytics
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Age Distribution Low App Users iOS Smartphone Analytics May 2012
Mobile consumers ages 25-44 make up a majority of the high usage segment
Ages 18-24 10%
Ages 25-34 21%
Ages 35-44 17%
Ages 44-54 19%
Ages 55+ 32%
Age Distribution High App Users iOS Smartphone Analytics May 2012
Ages 18-24 19%
Ages 25-34 34%
Ages 35-44 25%
Ages 45-54 12%
Ages 55+ 9%
Source: Nielsen Smartphone Analytics
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Key Takeaways
Majority Smartphones = Big
Mobile Media Usage Gains
Android and iOS continue to dominate reaching 90M users
in the U.S.
Who is the mobile consumer?
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What is the mobile consumer doing on their device?
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
How are Mobile consumers spending their time?
…are increasingly
embracing mobile
media services
54
109
2011 2012
Total Mobile App Duration on Android & iOS (Billions of Minutes Per Month)
Nielsen Smartphone Analytics May 2011 – May 2012
+102%
U.S. Mobile subscribers are
engaging in:
• Mobile Internet Browsing grew
from 98 million to 129 million
• Mobile App Downloads grew
from 41 million to 72 million
U.S. mobile subscribers are avid app users …
Source: Nielsen Smartphone Analytics and Mobile Insights
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
PROPORTION OF TIME SPENT
TOP 50 APPS TIME SPENT ON
APPS VS. WEB
72% 56% 81% 72%
May 2011
May 2012
May 2011
May 2012
Consumers spend the majority of time on apps and are diversifying the range of apps used
Source: Nielsen Smartphone Analytics
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Poll Question
Which of the following categories do you think has had
the biggest percentage growth in the past 12 months?
Just to clarify, we’re not talking absolute growth in
terms of unique users, but growth percentage.
a) Commerce & Shopping
b) Communication (e.g. Email, messenger apps, Skype etc.)
c) Entertainment
d) Finance
e) News & Information
f) Photography
g) Social Networking
h) Travel
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Consumers are pushing apps into the mainstream at a fast pace
2011 Growth Rate of Mobile App Unique Audience by Category on Android or iOS Smartphone Analytics May 2012 vs. May 2011
Instagram added 13m users in
the past year and has grown
270% in the past 3 months
In the past year Amazon
Mobile added 8m users while
Amazon App Store added 6m
and eBay added 5m
59%
84%
85%
89%
90%
98%
105%
116%
123%
Social Networking
Total Mobile Universe
Entertainment
Commerce & Shopping
News & Information
Communication
Finance
Travel
Photography
Source: Nielsen Smartphone Analytics
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Distribution of Time Spent in
Apps on Android and iOS Smartphone Analytics, March 2012
Consumers are driving a lot of movement in the top 50 apps
Change in App Ranking Year over Year -Top
50 Android and iOS Apps Smartphone Analytics, March 2011 – March 2012
“All Other
Apps”
26% a
year ago
Source: Nielsen Smartphone Analytics
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
YouTube
Gmail
Pandora
Radio
Words
with
Friends
Draw
Something
Free
Maps
Search
The
Weather
Channel
Weather
12 of the top 15
apps have a social and/or local component
Consumers are using their mobile devices to stay social and local
Mobile Apps and the Social / Local Intersection
Social
Local
Source: Nielsen Smartphone Analytics
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
iPhone / Android Active App User Audience18+ (000)
Select iPhone / Android Games Combined Unique Audience (000)
The growth of selected mobile games is outpacing Android and iOS growth
Unique Audience on Android and iOS Mobile NetView 3.0
77% growth
among
selected
games
65,643 68,574
71,545 75,065
79,324 83,675
Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12
Source: Nielsen Smartphone Analytics
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
The rise of iOS, Android & Facebook as platforms has partially, but not completely, driven F2P gaming growth
Mobile phone and tablet influencing gaming Overall gameplay for the average gamer increased by 7% in 2011 vs. 2010,
driven by various platforms, but mainly mobile and tablet
Mobile/tablet gamers are more gender-balanced & skew 18–34, non-white, $100K+ income. Within them further segments emerge, including mobile-only
players driven by teens
Mobile and tablet F2P gamers are more likely & willing to pay for gaming content than their PC peers
Source: Nielsen
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Mobile phones are shopping companions and shopping assistants
89% use smartphones
while shopping in
store
Top Shopping
Apps
1. eBay Mobile
2. Amazon
Mobile
3. Groupon
4. shopkick
Source: Nielsen Smartphone Analytics and Mobile Connected Device Report
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Mobile devices are impacting the consumer’s path to purchase
Searching for/using
online coupons
25%
Comparing prices
online while shopping
in a store
40% 18% Using Location
Based Services
to find a retail
location
Paying for goods
and/or services at
POS at a merchant
8% Discovery
Purchase Done Mobile
Shopping on
Smartphone or
Tablet
Source: Nielsen Mobile Shopping Report
No 21%
Yes 79%
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2%
2%
3%
3%
4%
4%
9%
10%
10%
American Express
Citibank
Wells Fargo
USAA
Mint.com
Capital One
PayPal
Bank of America
Chase
7
12
12
13
14
19
20
31
35
American Express
PayPal
Capital One
Wells Fargo
Citibank
Bank of America
Chase
Mint.com
USAA
Mobile provides an opportunity for the Financial vertical
Active Reach of Mobile Banking/Finance Apps Smartphone Analytics, May 2012
Average Time Spent per Person (Minutes) Smartphone Analytics, May 2012
Category
reach is 47%
and time per
person is 17
minutes
Source: Nielsen Smartphone Analytics
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Apps are still king when it comes to smartphones vs. the
mobile web
Successful apps leverage all the key advantages of a social, local and mobile smartphone
Smartphones have enabled innovation in several industry verticals such as retail and
finance
Key Takeaways What is the mobile consumer doing on their device?
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
How does mobile compare to other mediums such as TV and Online?
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
79
115126
142 148
95107
86
6558
493937
24
51
343044
72
0
50
100
150
200
250
300
Q2
2008
Q3
2008
Q4
2008
Q1
2009
Q2
2009
Q3
2009
Q4
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Q1
2010
Q2
2010
Q3
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Q4
2010
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Note: Mobile Users A:13+; TV and PC A:2+
Smartphone Users – Actual and Projected, US All Mobile Subscribers A:13+ – Actual through Q2 2012
The smartphone audience is rapidly approaching
that of the PC…
TV = 290M
PC = 218M
Total Mobile = 237M
Smartphone = 126M
Source: Nielsen
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
The average smartphone user, spends nearly an hour a day consuming Mobile content
Average Daily Time Spent on Media Activity (h:mm)
Total Population, March 2012
TV
On
line
We
b
Bro
wsin
g
Tim
e S
hifte
d
TV
Vie
win
g
Mo
bile
Ap
p
Usage
On
line
Vid
eo
S
tre
am
ing
Mo
bile
We
b
Bro
wsin
g
4:32
0:32 0:11
0:13 0:04 0:03 5:37
Mo
bile
V
ide
o
0:01
4:47
0:49 0:23
0:39 0:09 0:09 0:10
TV
Daily time spent among the total population
Daily time spent among users of the media type
Source: Nielsen
Note: Mobile Users A:13+; TV and PC A:2+
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Q1 2012 Video Penetration among
the Total Population
Based on Total US Population, Persons 2+ for TV and Online, 13+ for Mobile, Q1 2012
Monthly Time Spent among
Video Users (hh:mm)
While TV still dominates for video viewing, Mobile wins for convenience viewing
MOBILE 5 : 0 1 12%
ONLINE 5 : 2 4
14%
TELEVISION 1 5 5 : 4 6
54%
95%
Note: Mobile Users A:13+; TV and PC A:2+
Source: Nielsen
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Smartphones are for snacking, while tablets are for meals
Media Content Accessed Through Device Mobile Connected Device Report, Q1 2012
4.0x
2.9x 4.2x 2.4x
46%
26% 26% 25%
59%
51%
28%
23% 22%
12% 9%
6% 10%
62%
53%
28% 26%
23%
Books Movies Magazines TV shows News SocialNetworking
Downloadedmusic
Sports Streamingradio
Tablet Smartphone
Mobile consumers frequently turn to tablets to consume long-form content
Reach of
Netflix is
25% on iPad
and 12% on
iPhone
Source: Nielsen Mobile Connected Device Report
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
The iPad’s larger screen drives different usage patterns
Browsing Video
Viewing
Evening
Usage
Consumers browse on the iPad
iPad’s bigger screen
drives more…
versus iPhone
92%
78%
64% 67%
20%
11%
Facebook Twitter Amazon
Web App
Web vs. App Reach on iPad
Source: Nielsen Smartphone Analytics
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Engage with Mobile consumers while they watch traditional TV
Source: Nielsen Mobile Connected Device Report
88% of tablet owners
use their device
while watching
TV
87% of smartphone
owners use their
device while
watching TV
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Poll Question
What do you think the top activity is on a smartphone or
tablet when watching a TV show?
a) Looking up product info based on TV ad
b) Looking up coupons/deals related to TV ad
c) Shopping
d) Checking email
e) Browsing the web
f) Social networking
g) Using apps
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Tablet or Smartphone Activities while Watching TV Mobile Connected Device Report, Q1 2012
57%
55%
50%
45%
44%
38%
26%
22%
52%
36%
43%
23%
40%
23%
17%
12%
Checked email duringthe program
Surfed the web for unrelatedinformation during the program
Used a downloadedapplication
Shopping
Visited a Social Networkingsite during the program
Looked up info relatedto the TV program
Looked up product informationfor an ad I saw on TV
Looked up coupons/dealsrelated to a TV ad
Tablet Owner
Smartphone Owner
Consumers use their Mobile devices for a variety of activities while watching TV
Source: Nielsen Mobile Connected Device Report
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Key Takeaways
Smartphone audience is rapidly approaching the PC audience in
terms of size
Despite the dominance of TV, Mobile is gaining share from being the ‘always available
screen’
Big opportunity to engage users on smartphones and tablets while they are watching TV!
How does mobile compare to other mediums such as TV &
Online?
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
How do consumers feel about advertising on their mobile devices?
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Tablet users show more receptivity to advertising
I am open to ads on this device if it improves
the range of media content available
16%
22%
Smartphone
Tablet
I don't mind ads on this device so long as
it is relevant to my interests
15%
22%
Smartphone
Tablet
While Mobile advertising is becoming accepted, ads with user benefits bolster acceptance rates
1 in 3
tablet owners and
1 in 5
smartphone owners
think advertising is acceptable on the
mobile device
Source: Nielsen Mobile Connected Device Report
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
26%
27%
29%
33%
33%
36%
41%
46%
47%
47%
48%
91%
Text ads on mobile phones
Display ads on mobile devices
Online banner ads
Online video ads
Ads on social networks
Ads served in search engine results
Billboards
Ads on radio
Ads on TV
Ads in magazines
Ads in newspapers
Recommendations from people I know
To What Extent do you Trust the Following Forms of Advertising Global Online Survey (Q3 2011 n=501)
Gain trust of Mobile consumer over time and with demonstrating value
Source: Nielsen Global Online Survey
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Privacy concerns can be overcome by earning trust and showing relevance
Source: Nielsen Mobile Connected Device Report
Agree 30%
Disagree 70%
30% of users
find ads with
custom location-
based offerings
more useful
25%
22%
32%
33%
36%
45%
Ages 55+
Ages 45-54
Ages 35-44
Ages 18-24
Ages 25-34
Ages 13-17
Ads with Custom Location-Based
Offerings are More Useful - % Agree Q1 2012 Mobile Connected Device Report
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
17% of tablet owners and 14% of smartphone owners
Clicked to view the full ad or product offering
8% of tablet owners and 5% of smartphone owners
Made a purchase through my device based on an ad I saw
25% of tablet owners and 22% of smartphone owners
Made a purchase on the Internet via PC
17% of tablet owners and 12% of smartphone owners
Searched for more info about a business I saw advertised
Mobile advertising effectiveness shows promise
Source: Nielsen Mobile Connected Device Report
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
TV Standard Ad Source: Nielsen, Broadcast + Cable Primetime; 11.01.10 to 12.09.10, A18+
Campbell’s iAd Data: Among Respondents who were exposed to and tapped on the Campbell’s iAd, A18+, Sample size (N=51)
General Recall Brand Recall Message Recall Ad Favorability
Campbell’s Expanded iAd Performance vs. Campbell’s TV Ad Norm – A18+
Campbell's Expanded iAd Campbell's TV Ad Norm - Broadcast/Cable Prime (11.1.10 - 12.09.10)
With some Mobile campaigns performing much better than TV
2.3X 4.7X 3.2X 5.4X
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Key Takeaways
There is still a delicate
balance between placing
relevant ads and
encroaching on privacy
When executed well on
mobile, ad recall and
favorability can surpass
other mediums
How do consumer’s feel about advertising on their mobile devices?
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
What have we learned about the mobile consumer?
Who is the mobile consumer? • Rapidly growing group of smartphone owners
• Younger, higher income demos leading the charge
1
What is the mobile consumer doing on their device? • Being social, keeping it local, and pushing industry verticals to evolve
2
How does mobile compare to TV and Online? • Mobile relatively small for video consumption but growing
• Smartphones and tablets are complimentary to TV usage…
3
How do consumer’s feel about advertising on their
mobile devices? • Open to mobile advertising that demonstrates value and convenience to
the consumer
4
Q&A Visit our blog at:
http://blog.nielsen.com/nielsenwire/category/online_mobile/
If you have additional questions that were not addressed in the Q&A
session, please submit them to [email protected]
by July 31.
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