The State of Mobile: Key Emerging Digital Trends

The State of Mobile: Key Emerging Digital

Trends

Evan NeufeldVP + Sr. Analyst M:Metrics, the mobile market authority

© 2007 M:METRICS, INC.

Insight on key trends and topics from thought-leading analysts.

• Quarterly key performance indicator reports

• Eight topical reports• Monthly Delta reports• Client-only Web briefings

Granular data on the most active segment of mobile media consumers.

• Direct measurement via on-device meter

• Tracking Symbian, Windows, Palm devices

• Browsing and messaging• Monthly data• Client-only Web briefings

• Device, content, and market tracking

• Direct measurement of operator channels

• Large scale surveys of consumer behavior

• Syndicated reports, online interface, and custom queries

• Monthly data• Client-only Web briefings

Comprehensive intelligence that helps companies profit from mobile convergence.

M:Metrics: The Mobile Market Authority


#1: Still Only 24 Hours in a Day: Fighting for Consumer Mindshare in an Increasingly Fragmented Environment

Media Consumption Evolution

Death of mass marketing

Need to understand multi-modal consumption

360 campaigns to become more the rule than the exception

Decreased Impact of Advertising

Over-messaging endemic

Need to rise above the clutter via improved messaging and targeting

The Era of Consumer Control

More savvy consumers demand fair exchange for value


#2: 213mm & Counting: Mobile Penetration to Grow 43% by 2011

MOBILE PHONE PENETRATION WW

26.1%

73.0%

95.8%

47.9%

87.0%

97.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

ASIA USA EU

REGION

% O

F P

OP

UL

AT

ION

2006 2011Source: Nikkei Electronics Asia -- March 2007

+ 43% WW


#3: Mobile Phones: A Uniquely Personal & Portable Connection to the Digital World

Networks

Devices

Content

Advertising

As convergence disrupts multiple sectors, the mobile phone emerges as the key personal connection to the digital world.


Driven by device evolution, speed, and developing business models, the mobile phone is moving from being just a portable phone …..

…. to becoming a mobile communication and media management platform


# 4: Moving from Mobile 1.0 to Mobile 2.0: Key Characteristics

1. Ubiquitous Indoor plumbing penetration levels of phones Consumers are incorporating the Mobile Web into the

fabric of their daily life. In the US: Passed 24+ million consumers using mobile browsers in Q4 ‘06 Those who engage are active, frequent users

56% turn to mobile daily and weekly for news and information

2. Devices getting more sophisticated3. Business model proliferation & experimentation


Popular Mobile Content Mirrors Popular Web Content – Immediate, Necessary & On-the-GoWeather information is the top destination on mobile browsers in the US: 44% of those who use their mobile browser in the US (4.8% of all mobile users) access weather info sites.

However, it leads by a slim margin. Top U.S. browsing genres:

Category Users % of browser users

Weather 10,272,251 44%Search 10,108,453 43%News 9,919,201 42%Sports Info 8,861,845 38%Ent. News 7,718,528 33%

Monthly users: accessed weather info(3-month average ending June-07)

4.8%

1.9%

0.9%

1.8%

1.5%

0.3%

0%

1%

2%

3%

4%

5%

6%

Via browser Via SMS Via downloadedapplication

US EU5

3 month avg ending JUL 2007


However, Consumption Is Showing Signs of Evolving ..

Q1-07 to Q2-07 changes

Increase: SMS, photo and video messaging, email News & info via applicationsRingbacksSideloaded music

Steady, or Slight Decline: IM News & info via browser, text alertsRingtones, graphicsCarrier music downloads, programmed video Played games, downloaded games


Paradigm Shift Anyone?Mobile 2.0 Activities Pick Up

News 2.0: Downloading of News & Info Applications grows … Viral: 1 in 10 mobile subscribers creating/sharing content today. UGC on The Rise: Some of the highest growing consumption

categories involve user-generated photo and video sharing via MMS, email, or uploading to sites.

Old Business Models Disrupted: Homemade personalization (ringtones, graphics) is taking the place of purchased personalization – with the exception of ringbacks.

PC Integration: Tracking to the proliferation of music-enabled handsets, listening to one’s own music collection (transferred from a computer) is experiencing much faster uptake than downloading from a carrier music store.

Mobile Video: Nascent but Growing: From 2.6% In Jan ‘07 -

3.9% on Sept 07; Current usage: • Any Type of Video: 8.2 million Users as of Sept ‘07

• Viral: 7.1 million watched videos sent by family or friends Key Content Categories: News, Sports, Weather

Utility & Communication Categories Growth Driven by New Devices: Multimedia functionality drives adoption and next generation services

50% + own camera Phones 1 in 5 Own Music Phones Music phones were the fastest-growing handset category,

increasing a whopping 239%

Category Reach & Growth

Year Over Year Growth Q2 06 - Q2 07

Activity Q2'07 Subs GrowthBrowsing 11.00% -15.0%Purchased Graphic 3.2% -7.6%IM 6.70% -0.1%Played Games 20.6% -16.4%Purchased Tone 9.4% -6.5%Text Messaging 41.60% 12.7%Personal Email 9.00% 18.3%Work Email 5.30% 19.2%Visual Messaging 17.50% 36.8%SMS Alert 6.0% 2.5%Download Access 3.5% 21.0%Ringback Services 4.5% 50.8%Owned Camera Phones 56.1% 41.7%Owned Smart Phones 4.0% 73.4%


Pricing:

iPhone vs. Blackberry Bandwidth:

Consumers want to drink from the hose Devices:

Better devices = more usage Subsidization

The ad card…

# 5: What is Holding Us Back in Driving Us Forward …


Pricing: Consumers Getting Nickel and Dimed to Death…

+15%

+10%


Non 3g 3g BenchmarkBrowser access subgenre: news/info Any news or info 11.2% 19.7% 176Search 4.9% 9.2% 189Community/Dating 1.2% 2.1% 178Financial Account Access 1.6% 2.8% 170Business Directories 2.1% 3.8% 184Maps & Directions 3.2% 6.3% 195Movie & Entertainment Info 2.9% 5.8% 199Restaurant Info 2.0% 3.9% 199Travel 1.4% 2.2% 159Shopping Guides 1.4% 2.2% 161Health 0.7% 1.2% 169Horoscopes 1.1% 1.6% 149News 4.7% 9.8% 207Finance News 2.5% 4.7% 191Entertainment News 3.5% 7.1% 200Humor/Comics 1.0% 1.7% 164Sports Info 4.1% 7.9% 192Weather 4.9% 9.5% 195Men's Magazines 0.7% 1.0% 152Women's Magazines 0.6% 1.1% 185Traffic 1.9% 3.5% 185

3 month avg ending JUL 2007

The Broadband Effect: 19% 3G Penetration (and Climbing)

But we already knew that mobile broadband Is a game-changer


Usage :Smartphones Provide 400-800% Lift

14%

18%

49%

10%

9%

2%

2%

2%

0% 10% 20% 30% 40% 50% 60%

Used DownloadedApplication for News

& Info

Listened to Music(sideloaded)

Watched Video/TV

Browsed for Newsand Info

Percent of Installed Base

Non-smartphone owners

Smartphone owners


It must lend self to targeting

It must accommodate a wide range of marketing activities and

pricing / inventory models

It must allow for optimization & management of campaigns

It must provide clear , concise and actionable reporting

Must provide value back to consumers

How Do We Get There? Five Key Requirement for Effective Mobile Advertising


Thanks


The (nearly) Ubiquitous Device: Global, with Significant Variance by Market Place.

Select consumer penetration measures, US & EU%

FR DE IT ES UK USTotal Mobile Subscribers (Aged 13+) in millions 45.0 47.5 45.5 32.5 45.5 215.0

Sent Text Messages 73.6% 80.1% 85.9% 83.8% 86.4% 43.2%Used Net. Services for photo/video messaging 23.8% 21.8% 32.1% 32.3% 30.6% 19.2%Used email (work or personal) 6.6% 6.4% 9.9% 9.7% 8.4% 10.5%Accessed news/info via browser 9.2% 5.1% 6.9% 7.6% 15.2% 11.6%Accessed news/info via sms 7.8% 6.4% 18.1% 7.3% 5.8% 5.9%Purchased ringtones 4.2% 4.3% 4.0% 5.1% 3.4% 9.1%Used instant messaging 3.2% 3.1% 5.8% 6.6% 4.9% 6.8%Download games 1.5% 2.4% 2.7% 4.9% 4.8% 3.3%Purchased graphics 1.7% 1.9% 2.1% 2.1% 1.6% 2.9%Watched commercial mobile video / TV 1.2% 0.5% 1.6% 1.0% 1.3% 1.4%Accessed Social Networking Site or Blog 1.4% 1.3% 1.9% 1.9% 2.7% 3.3%

3 month avg ending AUG 2007

Date post:	18-Jan-2016
Category:	Documents
Upload:	iolani
View:	42 times
Download:	0 times

The State of Mobile: Key Emerging Digital Trends

Documents