Transcript Nielsen Mobile PowerPoint template (2/08)

To Mobile Or Not To Mobile?
Digital Strategies for Advertisers
September 2009
Confidential & Proprietary
© 2008 The Nielsen Company
What we’ll be covering today . . . .
Mobile Subscriber
Enablers
Content
Delivery
Products &
Services
• Wireless
Operators
• Device
Manufacturers
• Application
Solution
Providers
• Data
Aggregators
• Brands
• Agencies
• Commerce
Confidential & Proprietary
© 2008 The Nielsen Company
Page 2
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
Landscape
Mobile consists of a diverse set of media vehicles,
each with their own unique reach and opportunities
Mobile Subscribers (in millions)
UNIQUE USERS (%)
Q2 2008– Q2 2009, National
263
259
203
200
135
145
109
102
267
213
272
277
223
224
68M (31%)
55M (25%)
130
127
115
132M (60%)
174
162
158
221M
Audio 39M (18%)
Apps 27M (12%)
71
66
57
60
64
15
16
18
19
20
Q2 2008
Q3 2008
Q4 2008
Q1 2009
Q2 2009
Games 23M (10%)
Total US subs
Text messaging
Internet
Downloads
Multimedia messaging
Video
6.8M + 8.4M via web (7%)
Confidential & Proprietary
© 2008 The Nielsen Company
Page 4
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
Total Smartphone subscribers increased
72% from Q2 2008 – Q2 2009
Smartphone Subscribers and Device Penetration
Q2 2008 – Q2 2009, All Mobile Subscribers
35
20%
16.9%
30
16.0%
(In Millions)
14.5%
25
20
15%
12.8%
10.3%
10%
15
24.2
26.1
21.4
10
18.9
5%
15.2
5
Total
Smartphone
Subscribers
Smartphone
Penetration
0%
Q2 2008
Q3 2008
Q4 2008
Q1 2009
Q2 2009
Confidential & Proprietary
© 2008 The Nielsen Company
Page 5
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
Smartphone penetration continues to grow
steadily among recent acquirers; nearly onefourth of new handsets are smartphones
Smartphone Device Penetration Among Recent Handset Acquirers
Acquired device in the past 6 months, Q2 2008 – Q2 2009
21.7%
17.7%
8.5%
22.1%
22.5%
8.0%
9.2%
15.6%
9.1%
8.1%
7.8%
5.0%
8.4%
8.8%
5.7%
All Other
Blackberry
2.5%
2.9%
Q2 2008
Q3 2008
5.4%
5.7%
Q4 2008
Q1 2009
4.5%
Apple iPhone
Q2 2009
Confidential & Proprietary
© 2008 The Nielsen Company
Page 6
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
Smartphone penetration varies by country;
Italy and Spain lead the way
Smartphone Penetration Across Global Markets
All Subscribers
28%
23%
17%
12%
12%
13%
12%
Sweden*
UK*
11%
US
Canada*
France*
Germany*
Italy*
Spain*
*Smartphone penetration represents Q1 2009 data due to survey cadence variances
Question used: B1900
Source: Nielsen Mobile Insights, US, Q2 2009; Nielsen Mobile Insights,
Canada, Q1 2009; Nielsen Mobile Insights, Europe, Q1 2009
Confidential & Proprietary
© 2008 The Nielsen Company
Page 7
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
User Profile
The major difference between iPhone users and
all smartphone users are Income and Business vs.
Personal Usage
All Smartphones
Gender
iPhone
Usage
Income
Age
220
200
Mobile Demographics, Q2 2009
171
165
174
150
160
158
160
137
125
119 121
220
123
115
105
100
97
83 81
86 86
95
88
84
77
69
53 53
54
46
3
35 5k
k5
50 0k
k
75 -75
k- k
10
0
10 k
0k
+
<
M
e
al
13
-1
18 7
-2
25 4
-3
35 4
-5
4
55
+
e
al
Pe
rs
on
M al
Bu ixe
si d
ne
ss
40
m
Fe
78
Confidential & Proprietary
© 2008 The Nielsen Company
Page 9
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
Mobile Media Consumption
iPhone owners spend nearly as much on data
charges ($37.60) as voice plan charges ($42.00)
each month
Average Billed Revenue Per Subscriber Component
All Lines, Q1 2009, National
$95
$88.85
$89.35
$7.90
$1.00
$28.20
$37.60
$85
$75
$65
$55
$57.04
$3.40
$12.10
$45
$35
$8.00
$3.10
$6.20
$4.80
Total other charges
$8.90
Data extras
Voice extras
Total taxes & fees
$25
$15
$5.10
$45.10
$35.40
$42.00
Monthly voice plan
charge (MRC)
Service credits
$5
($3.20)
($5.40)
($4.90)
All Subscribers
Blackberry
iPhone
($5)
Confidential & Proprietary
© 2008 The Nielsen Company
Page 11
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
Over 23% of all Streaming Audio users and 13% of
mobile Internet users have an iPhone
Data vs. Voice-Only Users
User Composition by Advanced Data Feature
Q2 2009
Q2 2009
Advanced Data
User
Instant
Messenger User
51%
Online Game
Player
89%
98%
17%
Advanced Data
User
Mobile Internet
User
6.5%
27.8%
21.3%
8.7%
38.3%
29.6%
14.7%
41.0%
26.3%
13.3%
49.0%
35.7%
Voice/SMS User
32%
All Subscribers
Voice-Only User
6%
5%
1%
1%
All Smartphone
iPhone
Streaming
Music User
Software/App
Downloader
23.4%
31.4%
19.5%
54.8%
38.0%
iPhone
57.5%
Other Smartphone
Confidential & Proprietary
© 2008 The Nielsen Company
Page 12
12
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
Advanced data usage is not limited to early adopters; “If you
pay for it you will use it”
Advanced Data User Penetration
Q2 2007 – Q2 2009
100%
*iPhone launched
in June 2007
96%
97%
98%
90%
98%
89%
80%
79%
81%
84%
87%
70%
60%
50%
46%
43%
40%
38%
44%
All Feature Phones
39%
All Sm artphones
30%
iPhone
20%
Q2 2007
Q4 2007
Q2 2008
Q4 2008
Q2 2009
Confidential & Proprietary
© 2008 The Nielsen Company
Page 13
13
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
iPhone owners over index on both music downloads and video
viewing; built-in handset features are emphasized as well
Media Usage
Features Regularly Used on Handset
Q2 2009
Q2 2009
Confidential & Proprietary
© 2008 The Nielsen Company
Page 14
14
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
Mobile media adoption occurs at different rates depending on
country; China in particular is adopting SMS and Internet
SMS Usage Penetration Across Global Markets
All Subscribers
89%
77%
76%
80%
79%
71%
62%
60%
67%
67%
51%
USA
80%
73%
48%
Canada Mexico
UK
Spain
Italy
Germany France
Brazil
Russia
India
China
Turkey
South
Africa
Mobile Internet Usage Penetration Across Global Markets
All Subscribers
27%
25%
19%
17%
11%
11%
7%
13%
9%
3%
USA
Canada Mexico
UK
Spain
Italy
13%
12%
Germany France
Brazil
3%
1%
Russia
India
China
Turkey
South
Africa
Confidential & Proprietary
© 2008 The Nielsen Company
Page 15
15
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
AT&T subscribers send/receive more text messages than voice
calls; iPhone users even more so – especially teens
Average Number of Monthly Calls vs. Text
Messages – All AT&T Subscribers
Average Number of Monthly Calls vs. Text
Messages – iPhone Users
Q1 2009, National
Q1 2009, National
2,608
1,810
# of Calls Sent/Received
# of Calls Sent/Received
# of Billed SMS Sent/Received
# of Billed SMS Sent/Received
775
696
358
235
134
275
244
216 234
291
195
124
350
248
232
147
38
Age <12
601
559
492
Age 13-17 Age 18-24 Age 25-34 Age 35-44 Age 45-54 Age 55-64
69
Age <12
201
198214
170
120
Age 13-17 Age 18-24 Age 25-34 Age 35-44 Age 45-54 Age 55-64
Confidential & Proprietary
© 2008 The Nielsen Company
Page 16
16
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
Top performing SMS campaigns are coming from a wide variety of
sources and genres
Top Standard Rate SMS by Transactions (000s)
Unique Users (000s) by SMS Brand
AT&T and Verizon, Q2 2009
AT&T and Verizon, Q2 2009
Twitter
Unique Users by SMS Brand
1,269,744
FOX
# of Unique Users (’000)
Transactions per
User
50,162
85
Twitter
3,676
345
FOX
4,129
179
Facebook
5,610
83
4INFO
4,617
56
ESPN
805
167
Google
3,796
31
The Weather Channel
1,096
99
ChaCha
2,317
40
352
223
2,333
27
Title
740,485
All Titles
Facebook
4INFO
ESPN
Google
The Weather
Channel
465,292
256,611
134,643
119,371
108,935
ChaCha
93,066
43Kix
78,537
4.2B Total
Standard Rate
Transactions in
Q2 2009
43Kix
The Coca-Cola
Company
62,195
The Coca-Cola Company
Confidential & Proprietary
© 2008 The Nielsen Company
Source: Mobile Media Measurement –
Media SMS Report
Page 17
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
Social networking is driving mobile Internet growth
Mobile Internet Audience Growth by Category
July 2008 – July 2009, National
Mobile Social
Networking
audience up
from 6.4M in
Jul-08 to 18.3M
in Jul-09
187%
113%
57%
55%
51%
49%
49%
48%
47%
45%
42%
39%
38%
Category / Site
# of Unique Users and
Reach
All Mobile Sites
56.2M (100%)
All Social Networking
18.3M (32%)
Facebook
14.7M (26%)
MySpace
7.1M (13%)
Twitter
4.1M (7%)
36%
35%
33%
32%
31%
30%
24%
19%
Real Estate
Travel/Vacation
Health/Fitness
Music
Automotive
Sports
Food/Dining
Games
City Guides/Maps
Videos/Movies
Weather
Shopping/Auctions
Business/Finance
News
Technology/Science
Education/Employment
Portals
E-Mail
Entertainment
Banking/Online Trading
News & Current Events
Search
Social Networking
9%
Confidential & Proprietary
© 2008 The Nielsen Company
Page 18
18
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
Over 91M subscribers recall seeing some form of mobile advertising
Mobile Advertising Exposure (in millions)
National – All Mobile Subscribers
(In Millions)
100
32.9%
90
35%
29.6%
30%
80
25%
70
60
20%
17.9%
50
91.1
40
30
20
15%
76.8
10%
42.4
5%
10
Total Mobile
Advertising
Exposure (in
Millions of
Subscribers)
Penetration of
Mobile
Advertising
0%
Q2 2007
Q2 2008
Q2 2009
Confidential & Proprietary
© 2008 The Nielsen Company
Page 19
19
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
SMS and MMS are the most popular forms of mobile advertising
responses
Ad Recall and Response
Top Responses Among Ad Responders
Q2 2009
Q2 2009
26.0%
Sent SMS
16%
14.0%
Sent a Picture or MMS Message
17%
11.0%
Sent an email (PC or mobile)
47% of ad viewers
made a response
in Q2
Visited internet or mobile
internet site
9.0%
8.0%
Click to call
Viewed Ad,
Responded
Entered Sweepstakes
5.0%
Used / Requested mobile
coupon
5.0%
Searched for location /
directions
5.0%
67%
Viewed Ad, Did Not
Respond
Did Not View Ad
Made a purchase via mobile
phone
4.0%
Q2 2009
Confidential & Proprietary
© 2008 The Nielsen Company
Page 20
20
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
Teens are most accepting of mobile advertising
Perceptions of Mobile Advertising
US Q2 09
49%
45%
37%
Mobile Advertising is
Acceptable if it lowers my bill
29%
24%
20%
17%
33%
Mobile Advertising is
Acceptable if it improves
content
17%
16%
12%
8%
7%
5%
13-17
18-24
25-34
32%
Mobile Advertising is
Acceptable if it is relevant to
me
16%
15%
12%
35-44
45-54
8%
7%
5%
55-64
65+
Confidential & Proprietary
© 2008 The Nielsen Company
Page 21
21
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
Outlook
22
Garter predicts a large increase in smartphone adoption over
the next few years
Confidential & Proprietary
© 2008 The Nielsen Company
Page 23
23
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
The previous digital revolution could give us clues as to how
the Mobile trajectory will play out over the next few years
Internet Audience by Category
2003
2009
Source: Nielsen Netview
Confidential & Proprietary
© 2008 The Nielsen Company
Page 24
24
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
The previous digital revolution could give us clues as to how
the Mobile trajectory will play out over the next few years
Internet Audience by Category
2003
2009
Confidential & Proprietary
© 2008 The Nielsen Company
Page 25
25
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
The previous digital revolution could give us clues as to how
the Mobile trajectory will play out over the next few years
Mobile ----------Internet Audience by Category?
Mobile Trajectory
------2003 2009
------- 2015
2009
Confidential & Proprietary
© 2008 The Nielsen Company
Page 26
26
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
Mandate
27
The way we’re thinking about mobile marketing
Mobile Marketing
Opportunity
Drive Sales
Mobile Marketing Activity
Works Well For:
High
Intensity
Research
Provide information to support
a purchase

Coupons, discounts, event
notification

Low
Intensity
Research


Add functionality




Information & inspiration
Associate your brand
with a desirable
experience


Mobile search
Enhance consumers’
experience with your
franchise / brand
Retail
Sponsorship


Fun and/or useful apps



Confidential & Proprietary
© 2008 The Nielsen Company
Page 28
28
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
The important Mobile Marketing activities can be aligned with
consumers’ interactions with devices
Enrichment
Utility
App downloads
Mobile Video/TV
SMS
Full track music
downloads
Taking pictures
Basic mobile
internet (email, IM)
Advanced mobile
internet (social
networking, LBS)
The Mobile Advantage
Utility
Anytime, anywhere exchanging of information
Enrichment
Anytime, anywhere rich media consumption, self-broadcast, instant information access
Confidential & Proprietary
© 2008 The Nielsen Company
Page 29
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
As Smartphone penetration and engagement rises, there will be
greater opportunity to capitalize on the dynamic features of these
devices
Utility
Enrichment
2009
2015
Confidential & Proprietary
© 2008 The Nielsen Company
Page 30
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
Best Practices: Provide information to Support a Purchase
What is it?
Barnes & Noble iPhone Apps
Barnes & Noble offers two mobile applications,
allowing consumers use their phones to
• Buy and read books (eReader)
Why we like it
• Browse virtual bookshelves
Limits Need for Planning in Advance – Reference
book reviews and recommendations on-the-go
Supports In-Store Experience – Reserve copies at
brick & mortar location
Innovative – Take photo of book cover with phone
and get access to reviews, product details and more
Personalized – Location-based: get directions to
nearest store, find local events
Inspirational – Watch video interviews, browse
recommendations
Who should
be doing it?
For whom?
Retailers (e.g. Consumer Electronics Retailers)
Shoppers looking to make informed purchase
decisions quickly, without having to set aside time for
researching before heading to the store
Confidential & Proprietary
© 2008 The Nielsen Company
Page 31
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
Best Practices: Coupons, Discounts
Mobile Coupons
What is it?
Upload digital coupons to cell phones via coupon
aggregators (e.g. shortcut$.com, Cellfire) or
retailers/manufacturers (e.g. P&G eSaver)
Why we like it
Limits Need for Planning in Advance – Allows
shoppers to find the best deals on-the-go
Easy & Green – Eliminates clipping and printing
coupons
Accessible – Platform can be SMS or MMS, making
it a viable option even for those without smartphones
Personalized – Location-based: get directions to
nearest store carrying product of interest
Who should
be doing it?
Retailers, Low Intensity Research Manufacturers (e.g.
Mass Merchants, Packaged Goods)
For whom?
Cost conscious shoppers looking for the best deal onthe-go, without having to set aside time to hunt for
coupons/deals before heading to the store
Confidential & Proprietary
© 2008 The Nielsen Company
Page 32
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
Best Practices: Information & Inspiration
Kraft’s iFood App
What is it?
Kraft’s iPhone/iPod Touch application offers
recipes, simplifies grocery shopping
Why we like it
Limits Need for Planning in Advance – On-the-go
recipes and grocery list functionality save time,
reducing need to plan before heading to the store
Inspirational – Recipes, how-to videos
Personalized – Location-based: get directions to
nearest store carrying product of interest; store
grocery lists; stick to a set budget
Integrated – Linked to Kraftfoods.com
Who should
be doing it?
Retailers, Low Intensity Research Manufacturers (e.g.
Pharmacies, Packaged Goods)
For whom?
Power Moms who do not have time to set aside for
meal planning before heading to the store
Confidential & Proprietary
© 2008 The Nielsen Company
Page 33
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
Best Practices: Sponsorship
Pepsi Sponsors “Drink Up, Rock Out”
What is it?
Why we like it
As part of its joint sponsorship of “Drink Up, Rock
Out” with MTV and the Rock Band game, Pepsi
has an iPhone app that lets users turn photos of
themselves or friends into their favorite rock stars
Interactive & Fun – Application allows users to
share their creations
Taps into Engaged Fan Base – Spreads awareness
by appealing to music enthusiasts and gamers
Timely – Tied to highly anticipated release of The
Beatles: Rock Band
Who should
be doing it?
Retailers and all types of Manufacturers (e.g.
Automotive Manufacturers, Consumer Electronics
Retailers)
For whom?
Consumers who enjoy using their mobile devices for
entertainment
Confidential & Proprietary
© 2008 The Nielsen Company
Page 34
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
Best Practices: Fun & Useful Apps
Information
What is it?
Companies provide category-relevant mobile
games or applications
• Gillette’s uArt iPhone/iPod Touch application
allows men to test out facial hairstyles
• Charmin sponsors Sit or Squat, a bathroomfinder application
Why we like it
Tongue-In-Cheek, But Relevant – Applications
provide value, beyond marketing brand
Sharable – Gillette application allows men to share
their creations, spreading awareness of Gillette
Who should
be doing it?
Retailers and all types of Manufacturers (e.g. Apparel
Retailers, Packaged Goods)
For whom?
Consumers who enjoy using their mobile devices as a
one-stop-shop throughout the day, ranging from
practical activities to entertainment
Confidential & Proprietary
© 2008 The Nielsen Company
Page 35
Confidential & Proprietary
Copyright © 2009 The Nielsen Company
Key Takeaways
• The key driver of mobile growth is good devices and fast,
affordable data. If people have it, they will use it…a lot.
• Smartphones are poised for serious growth in sales over the next
few years. If you don’t have already have a mobile strategy, it is time
to start thinking about one.
• It isn’t just about apps. There are a wide array of mobile marketing
activities that can work well for your brand.
• The key to unlocking Mobile is to take advantage of its unique
anytime/anywhere enablement of information exchange.
Confidential & Proprietary
© 2008 The Nielsen Company
Page 36
36
Confidential & Proprietary
Copyright © 2009 The Nielsen Company