Courting The Mobile Consumer 7 18 Final

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1 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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Transcript of Courting The Mobile Consumer 7 18 Final

Page 1: Courting The Mobile Consumer 7 18 Final

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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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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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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

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Who is the mobile consumer?

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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-

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Nov-1

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Dec-1

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Ja

n-1

2

Feb-1

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Apr-

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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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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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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

Twitter

Mar-11 Mar-12

47% 42% 42% 44% 42%

50% 45%

49% 48% 45%

Facebook YouTube GoogleSearch

PandoraRadio

Twitter

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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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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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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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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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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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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Facebook

Twitter

YouTube

Gmail

Pandora

Radio

Words

with

Friends

Draw

Something

Free

Google

Maps

Google

Search

The

Weather

Channel

Weather

Instagram

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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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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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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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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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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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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How does mobile compare to other mediums such as TV and Online?

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79

115126

142 148

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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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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

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hifte

d

TV

Vie

win

g

Mo

bile

Ap

p

Usage

On

line

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bile

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4:32

0:32 0:11

0:13 0:04 0:03 5:37

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bile

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ide

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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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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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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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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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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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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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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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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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How do consumer’s feel about advertising on their mobile devices?

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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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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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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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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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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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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

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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.

Follow us on Twitter:

#mobileconsumer