iPhone, I amInsights from an online research community

Morgan Stanley: The Mobile Internet Report December 2009

Fastest user growth in consumer technology

history

25% of the smartphone market in the US28% of mobile enabled market in Australia

What’s the fascination withthe iPhone?

We asked them

112 iPhone users across Australia

6 week Online Research Community

March – April 2010

Why an iPhone?

It’s the latest gadget

It’s cool

It’s an Apple

It’s time to change

I’m a Mac fan

It’s a phone and an iPod

I’ve heard good things

My old phone died

At point of purchase it’s about what it is, not what it can do. Most new iPhone users have no idea…

A Post-purchase revelation

It does much more than I expected. It’s changed my life…well parts of it

Yours is different to mine,because it’s about me and my life

More entertained

More efficient

More connected

More freedom

More enabled

It’s about convergence, access, usability and utility

Love iPhone

“I don’t use a street directory anymore, I don’t take my laptop everywhere, I’m more productive when I’m away from the office. I love the calendar and use it extensively. I use the eBay app, and the Paypal app too. I also use it as an entertainment and information unit. My kids think I’ve become a nerd, but it just provides me with so many things I need and like, all on the go, and pretty much anywhere I am. I know it sounds a bit grandiose, but the iPhone has certainly changed the way I interact with the world”

– James, 54 years, Business Manager

When was the last time a brand or product had this effect on you?

desire

delight

dependency

From initially curious to completely committed

How much difference has owning an iPhone made to elements of your life or the way you do things?

It’s made a big difference!64%

Yeah, some difference34%

Nope, no difference - 2%

By 2011, predictions are that 85% of handsets shipped globally will include some sort of browser

So these and this

Mean less time using the internet on a computer

Less time on the computer, more on mobile devices

More than before

A lot less than before

A bit less than before

Same as before

3%

12%

27%

58%

Internet use on a computer since acquiring an iPhone

2 in 5 iPhone users are spending less time now on the internet on a computer

More time on the smartphone using

apps

mobile sites (if only there were more…)

and sometimes even ‘classic’ sites

Classic sites are frustratingFlash makes you invisible

There is a difference in information sought

Bite size, not the full meal

There are a lot of stats on apps

Gartner 2009, Apple, Distimo, Admob

99.4%3,000,000,000+apps downloaded since Apple app store launch

$2.86USD

average price of apps in Australia

100,000+

Almost half of worldwide mobile internet advertising traffic comes from iPhone OS

Estimated App store revenue

$6.8b USDin 2010

of apps sold in 2009 were through the Apple App Store

apps in store in 77 countries in20 categories

But what do we know about why people choose and use apps ?

Are they really used?

What’s the point?

Latitude Insights iTalk Community: Favourite apps

A new door has opened to allow brands to engage with customers

(and it’s not just about mobile advertising)

Our screens are prime ‘real estate’ for mini-experiences, whether they’re functional, informative or frivolous.

It’s another way of connecting with the brand.

What makes a great app?

Unique

Fulfills an unmet need

Delivers what it promises

Makes a difference to people in terms of factors like:

› Time› Convenience› Ease› Enjoyment› Knowledge› Access

Consumers want apps that make a difference to their lives in some way

“Good apps are the ones that make your life easier. They let you do things you would normally do at home but on the run”

“The intuitive ones, that save you time on everyday tasks”

“I was disappointed with Coles (app) in particular because it looked promising at first. But there are so many products not in it that it makes the whole thing useless. Now it being a lame app hasn’t stopped me shopping at Coles. Having said that if Safeway was to come out with a really good app it might make me switch. A long time ago I dumped Yellow Pages and decided that if they don’t have a website than I don’t want to do business with them anyway. I haven’t quite got to that stage with mobile but I doubt it is too far off ”

– Kate, 23 years, IT support

Some apps are pointless

✗ Don’t fulfill their promise

✗ Not fully functional or are ‘buggy’

✗ Too slow or complicated

✗ Don’t offer any advantage to obtaining the

information or experience from another

channel

Bad apps get trashed

Not all branded apps can embed themselves in our smartphones for the long-term.

Sometimes, being around for a good time not a long time, can be just as effective in delivering a brand experience.

Part of my life

Look at me!

Handy helper

Occupy prime real estate on screen

Used frequently

Facilitates a behavioral change

Part of my life

Less frequently accessed because less frequent behaviour

New touch point for brand, but not major distribution channel

Handy Helper

Short term, high impactMay be time/occasion/event specific

Look at me!

Part of my life

What kind of brand experience can you deliver?

Handy helper

Look at me!

Short term Ongoing but infrequent

Ongoing and frequent

Apps are not about generating revenue.

Brands can’t charge for apps - especially if it’s a channel for customer engagement

Small change really…

Pinch media estimates the ‘average’ paid app generates ~$12,000USD from downloads.

$3.50

10 minutes

$2.29

Multiple use

app

Apps are cheaper, last longer, but harder to spend money on…

Free apps dominate their phones

How many free apps do you have?

None 1 to 5 6 to 10 11 to 20 20 to 50 50+ Don't know

0%2%

22%

3%

27%

14%

2%

Two in five have more than 20

free Apps

Paid apps are far fewer

None 1 to 5 6 to 10 11 to 20 20 to 50 50+ Don't know

0%2%

22%

33%

27%

14%

2%

10%

38%

28%

16%

6%

2%0%

Free apps

Paid apps

Latitude Insights iTalk Community: How many of free and paid for Apps do you have?

Almost one in two have <5 paid apps

If they’re doing it why can’t you?

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Hello apps, where are you?Seeking apps:› Top 25 list › Browsing the store › Key word searches› Word of mouth› Apps about apps

But brands need to inform:› Media / advertising› Reviews on blogs, forums, etc

Not every brand needs to have an app – mobile sites are just as relevant.

“My favourite is Boozle, so I can find my beer at the cheapest price at the closest bottlo”

“Qantas is on the right path with their mobile site, if only it could be expanded more, to check flight availability, make bookings, check your frequent flyer account…”

To app, or not to app?Apps are…› Perceived as faster› More self-contained› Direct delivery of content› Own iPhone real estate/constant presence

Mobile sites…› Don’t clutter your screen› Good for infrequent visits› Good for smartphones, not just iPhones

“I think with many companies, just a mobile enabled website is enough. I don’t want to have a huge number of apps on my mobile when I only use them occasionally”

The point is, they expect to be able to engage with major companies via their smartphone

“I think it’s a great way for a business to grow and keep customers happy by creating an iPhone app…it makes it so much easier for us as customers”

“I think there is room for both mobile sites and apps. Personally I prefer an app for things that are used frequently, and a mobile site for information accessed a little less frequently. I don’t really like clutter on my phone but I would have any app that I find really useful”

“I want to be able to interact with businesses through my phone…I think companies need to do their research as to what their customers want. I don’t believe a lot of companies are planning for the future or are just lazy in this area”

“I’ll tell you what I want, what I really, really want”

Whether a branded app or a mobile site:

✔ Easy to use✔ Simple✔ Intuitive✔ Relevant

It doesn’t have to be everything, just the bits that are important when people are mobile.

“I no longer wait to get on my computer to‘Google it’. I have instant answers to all my questions! And apps…ahh, all those apps. I was astounded by the multitude of really useful (and not so useful) things I could do with my iPhone. I love the ‘honeymoon’ period when you try out all the functions and play around and have fun with your new toy…well let me tell you, my iPhone and I are still honeymooning nearly a year after we met ;)…still in love…”

Let’s let Rachael from our community have the last say…

LATITUDE INSIGHTSChanging the conversation

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Contact us:Dianne GardinerCEOdianne@latitudeinsights.com.au0417 323 765

Any questions?