GFK - LBS Consumer Market Research
Transcript of GFK - LBS Consumer Market Research
GfK Custom Research North America Metaplaces Conference September 23, 2009
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Metaplaces ConferenceIdentifying Key Drivers and Measuring Consumer Preferences for LBS
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GfK Custom Research North America Metaplaces Conference September 23, 2009
Navigating the LBS market
Consumer Landscape
Challenges DriversBest Practices
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GfK Custom Research North America Metaplaces Conference September 23, 2009
Navigating the LBS market
Consumer Landscape
Challenges DriversBest Practices
Connectivity
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Attitudes
Behavior
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GfK Custom Research North America Metaplaces Conference September 23, 2009
Smartphone adoption rapidly increasing, moving beyond productivity apps
Consumers’ increasing connectivity is a good launch pad for LBS
(Projected)
Connectivity
Year-Over-Year Shipment Growth in USA*
-4.7%
-13.8%
+68.4%
2008
-14.8%
-20.3%
+7.9%
2009
6.1%
-1.2%
+28.4%
2010
Total Market
Traditional Mobile
Smartphone
-4.7%
-13.8%
+68.4%
2008
-14.8%
-20.3%
+7.9%
2009
6.1%
-1.2%
+28.4%
2010
Total Market
Traditional Mobile
Smartphone
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MiFi Introductions hit the market in 2009
Netbooks and mobile broadband making significant inroads
*ABI research.com
*IDC.com
-4.7% -14.8% 6.1%Total Market -4.7% -14.8% 6.1%Total Market
2008 2013*
Netbook Shipments Worldwide*
2009
16.4M
32.7M
139M
(Projected)
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GfK Custom Research North America Metaplaces Conference September 23, 2009
4 consumer trends that LBS marketers can tap into
1
Accessibility
Practicality
2
Attitudes and
Behavior
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Accessibility
Sharing/getting personal
2
4 Protecting the family
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GfK Custom Research North America Metaplaces Conference September 23, 2009
The practicality and accessibility of Technology
• Consumers are increasingly showing their practical side when it comes to technology, and wireless offers productivity “on the go.”
• Accessibility is a key need sought by the increasingly mobile consumer.
Attitudes and
Behavior
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*GfK Roper Reports Worldwide 2009
48
25
52
34
To me it is important toalways be reachable
wherever I am
I buy technology productsthat help me do things I
need to do
2008
2009
% of American adults 15+ who agree with the following
statements related to technology*
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GfK Custom Research North America Metaplaces Conference September 23, 2009
Sharing and getting personal is another key underlying need
Consumers using their mobile phone or netbook to share content on social networking sites, online photo albums, blog sites, and community video sites:*
63Desktop PC 64 49
SocialNetworking Site
Online WebPhoto Albums Blog Sites
CommunityVideo Sites
Attitudes and
Behavior
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63
45
9
17
5
Desktop PC
Laptop
Netbook
Mobile Phone
Portable Media
Player
64
35
10
9
5
49
41
16
14
15
63
36
10
10
8
*GfK Connected Life
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GfK Custom Research North America Metaplaces Conference September 23, 2009
Protecting the family is #1 value of 32 tested
... Top 16 attributes shown
Protecting the family 84%
Freedom 79%
Stable personal relationships 79%
Self reliance 71%
Friendship 70%
Equality 63%
Attitudes and
Behavior
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*GfK Roper Reports US
Authenticity 78%
Working hard 74%
Enjoying life 72%
Learning 72%
Knowledge 71%
Helpfulness 62%
Open-mindedness 61%
Respecting ancestors 59%
Social tolerance 59%
Having fun 58%
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GfK Custom Research North America Metaplaces Conference September 23, 2009
Navigating the LBS market
Consumer Landscape
Challenges DriversBest Practices
Connectivity Monetization
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Attitudes
Behavior
Maximizing User Experience
Privacy
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GfK Custom Research North America Metaplaces Conference September 23, 2009
With the proliferation of free applications, requiring consumers to pay will be a challenge
*Key monetization challenges across LBS apps tested . . .
• Changing plans
• Paying for individual services
• Changing carriers
Monetization
“Compass isinfluenced by nearby
electronic devices to such a
“There are some nice features,
but I really expected more for
$10. I own less expensive
apps that I’ve found to be
much better.”**
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electronic devices to such a degree that it is quite
inaccurate. Only .99 cents but I wish I had spent more on
something that was accurate.”**
“Just downloaded and installed this app today thinking I’d save a few bucks
versus Navigon, TomTom, etc You should absolutely save your money
and buy something – anything – else. This is worthless for the purpose of navigation. I will never use it again, and if I could get my money back, I
would...in an instant.”**
*GfK Tech Test**iTunes Apps Store Reviews
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GfK Custom Research North America Metaplaces Conference September 23, 2009
Mobile advertising has yet to reach wide acceptanceLBS can be a solution to increase relevance
Ads on mobile phones annoying
Find:
Ads on TV annoying
70
37
29
Ads on mobile phones acceptable
Find:5
Ads on social networking sites annoying
Monetization
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Mobile ads are yet to deliver value to the consumer
Ads on mobile phones acceptable
Ads on TV acceptable
5
42
23Ads on social networking sites acceptable
Describe mobile device ads 9
14
as informative
as usefulDescribe mobile device ads
*GfK Roper Reports Worldwide 2009
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GfK Custom Research North America Metaplaces Conference September 23, 2009
Increase adoption by addressing key challenges
Learning Curve
If I am going to be able to use a
new technology product,
somebody has to show me how
to use it*
25
32
“Themes of recent CTIA and International CES trade shows has
been how new handhelds are often shipped with so many new
2008
2009
% Agree
Maximize User
Experience
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Screen Size
“Phones are so small that easily reading maps on them
is hard to do.”~ GfK Tech Test
“You won’t be able to see the screen. It’s too
little.”~ GfK Tech Test
Security of Personal Information
*Roper Reports Worldwide 2009**www.macworld.com***www.eff.org
been how new handhelds are often shipped with so many new
features and functions that users hardly ever use 10% of all
features, or even learn how to use them.”**
In an effort to protect user privacy: “Google’s Latitude does not
keep a historic log of a user’s location; it overwrites data each
time the user reports a new location.”***
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GfK Custom Research North America Metaplaces Conference September 23, 2009
LBS benefits must outweigh privacy concerns
Possible Benefits Privacy Concerns
“I do not like the idea of the possibility that someone would
know your every movement during the time your phone was in use. Privacy is more important than having an exact pinpoint location
Safety
Convenience
Privacy
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having an exact pinpoint location given to me by a tracking satellite.”
~ GfK Tech Test
“The concept of Big Brother watching me.”
~GfK Tech Test
Accessibility
Sharing
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GfK Custom Research North America Metaplaces Conference September 23, 2009
Navigating the LBS market
Consumer Landscape
Challenges DriversBest Practices
Connectivity Monetization Problem Solving
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Attitudes
Behavior
Maximizing User Experience
Privacy
Enhance Experiences
Relevance
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Ability to solve a problem is the top driver of Appeal
DRIVERS*
Ability to solve a problem 59%A
Problem Solving
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Overall
Appeal
Uniqueness 18%
Ease-of-set-up 14%
Believability 9%
B
C
D
*GfK Tech Test
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GfK Custom Research North America Metaplaces Conference September 23, 2009
Successful LBS applications mustEnhanceExperience
Fulfill an existing need Enhance current experienceOR
% who have accessed the GPS Smartphone Shipments Worldwide*
77M
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% who have accessed the Internet in past 3 months for
maps/directions**
Opportunity to drive consumers to their mobile device
*electronicsnews.com**GfK Connected Life
2008 2009
57M
+34%
77M
%76
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GfK Custom Research North America Metaplaces Conference September 23, 2009
Keep it relevant
What Where
Top iPhone Apps Where Mobile Devices are used
• Bathroom/Rest Area finder
• Friend mapper (shows friends' current location)
• GPS
• Hotel finder (finds hotels with open rooms close to current location)
Relevance
At home 66%
In the car 50%
Outside 46%
At work 43%
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to current location)
• Local restaurant locators
• Restaurant openings/reservations
• Local services and amenities (restaurants, bars, gas stations, tourist attractions)
• Parking lots and rates
• Post location on Facebook
• Registered offenders (brings up offender lists from current location)
• Speedometer
• Weather channel (local weather based on current location)
At work 43%
Somebody else’s home 39%
At café/restaurant 37%
While walking 37%
At airport/train station 33%
On public transport 29%
At client/customer offices 19%
At school/college/university 15%
*GfK Connected Life
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GfK Custom Research North America Metaplaces Conference September 23, 2009
Navigating the LBS market
Consumer Landscape
Challenges DriversBest Practices
Connectivity Monetization Problem Solving Methodologies
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Attitudes
Behavior
Maximizing User Experience
Privacy
Enhance Experiences
Relevance
Metrics to Evaluate
Activating Your LBS Strategy
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GfK Custom Research North America Metaplaces Conference September 23, 2009
Do I have a winner? Methodologies
Explore
Online Diary
Quantify
Survey questionnaire
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• Uncover benefits and concerns
• Evaluate use cases
• Get ongoing feedback
• Benchmark against other apps
• Profile potential users
• Assess uniqueness of app and problem solving
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GfK Custom Research North America Metaplaces Conference September 23, 2009
Stand out and solve problems Metrics for Evaluation
30
35
Mobile Payment
Old Answer to Problem
New Answer to Problem
Mobile Maps
Mobile E-mail
% Solves A Problem
% Solves A Problem
Aim for upper right quadrant
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10
15
20
25
10 15 20 25 30 35 40 45 50 55 60 65
Mobile Files
Mobile IM
Mobile Entertainment
Mobile TV
Mobile Photo Sharing
Time Shifted TV
Train/Flight Booking/Information
No Problem/No Answer
New Answerto Non-Problem
Mobile Maps
% Solves A Problem
% Solves A Problem
% Extremely/Very New and Different% Extremely/Very New and Different
Mobile Video
NormativeAverage
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GfK Custom Research North America Metaplaces Conference September 23, 2009
Activating your LBS strategy
Appeal to underlying consumer needs
• Practicality
• Accessibility
• Sharing/getting personal
Focus on delivering value in mobile ads
© Copyright GfK Custom Research North America 2009. Proprietary and Confidential
• Leverage LBS technology to enhance relevance
Address user experience barriers
Keep it relevant to where and how consumers Keep it relevant to where and how consumers want to use their mobile device
Explore and quantify
Leverage Convergence