Growing the Mobile
Marketplace
Insights from the United States and China
Josh Crandall, President
Netpop Research, LLC
| Pocket 2009

Introduction
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The Present
2009 brings another year of optimism
about the future of mobile marketing…
… and persistent questions about the
best use of the technology
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The Present
What is the mobile web best for …
Brand loyalty?
Advertising?
New applications?
All of the above?
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The Future
The Pew Internet & American Life
Project predicts that mobile devices
will be the dominant way we connect
to the Internet by 2020*
Yes
Is this realistic?
* \"The Future of the Internet III,\" Janna Quitney Anderson and Lee Rainie,
Pew Internet & American Life Project, December 14, 2008
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The Netpop Future
Online access from web-enabled phones
grew 4 percentage points (36 percent
increase) from 2007 to 2008 in the U S
U.S.
The rate of mobile adoption continues to
accelerate
Even if mobile web adoption continues at
the current rate, half the broadband
population will access the Internet from a
mobile phone by 2015
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The Netpop Future
Handset improvements bring more users
to the web
… but cost and infrastructure barriers slow
universal mobile connectivity
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Global Access Gap
Many countries share these barriers to
adoption
… yet mobile web access in China and
emerging economies far exceeds that
of the U.S.
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Perspective
This Netpop report examines mobile
Internet access among broadband
users in the U S and China
U.S.
What are the benefits of accelerating
mobile web access?
What can the U.S. market learn from
Chinese Mobile Netizens?
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Market Size
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China dwarfs the U.S. in mobile web access
41% (57 million)
own web-enabled
mobile phones
18 Million
U.S. Mobile Web Users
138 million
Broadband Users
(13+)
China
243 million Broadband
Users**(13+)
102
75% (182 million)
Million own web-enabled
p
mobile phones
Mobile Web
Users
*Pew Research Center, U.S. Census, Netpop Research, LLC
**China Internet Network Information Center, U.S. Census, Netpop Research, LLC
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China dwarfs the U.S. in mobile phone ownership
• Web-enabled mobile phones dominate the mobile
market in China, creating an enormous, 24/7
connected marketplace
• Over half of U.S. Broadbanders do not even own a
web-enabled mobile phone
Mobile Web Access: U.S. and China
100%
13%
90%
80% 42%
28%
70%
60%
Access Web f rom
50%
mobile phone
33%
40%
Have Web-enabled
59%
30% phone but do not use to
access Web
20%
Do not have Web-
25% enabled phone
10%
0%
U.S. China
Percent Who Own 2+ Mobile Devices
18% 28%
Base: All respondents U.S.: n=4383 China: n=4269
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The desktop monopoly is eroding--slowly
• B th countries continue t move away f
Both ti ti to from
stationary connectivity with increased use of
laptops and mobile devices for Internet access
• The growth in mobile web access from 2007 to
2008 is more than double in China, compared to
that of the U.S.
Change in Devices Used for Web Access
2007 to 2008: U.S. and China
100%
94%
93%
88%
87%
90%
80%
70%
61%
60%
54%
51%
50% 45%
42%
40%
32%
30%
20% 15%
11%
10%
0%
Desktop compuer
p p Laptop Computer
pp p Mobile device
U.S. 2007: n=4068 China 2007: n=4002
Base: All respondents
U.S. 2008: n=4383 China 2008: n=4269
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\"Smartphone\" penetration is comparable
• 51% of mobile devices used to access the Internet
in each country are smartphones
• Top smartphone brands:
in U.S.
in China
Change in Mobile Devices Used for Web Access
2007 to 2008: U.S. and China
100%
90% 85%
78%
80%
70%
60% 55% 53%
51% 51%
50%
41% 39%
40%
30%
23%
20%
13% 11%
6%
10%
%
Cell phone Smartphone PDA
China 2007: n=1266
Base: Use mobile device to U.S. 2007: n=451
China 2008: n=1806
access the Internet
e ee U S 008
U.S. 2008: n=637
63
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Now that you have seen an overview of the
mobile marketplace in the U.S. and China, we
hope you are interested in learning more.
To purchase the full report, please go to
www netpopresearch com
www.netpopresearch.com.
Topics covered include:
•Year/year trending from 2007 to 2008
•Market size and device ownership (cell phones,
web-enabled phones, smartphones)
•Device of choice for internet access
•Crossover between computer and mobile device
Comparison of use
U.S. and •Time and locations of use
Chinese
•Premium content purchases in each country
Mobile
Internet Users •Attitudinal segmentation of mobile web users in
each country
•Demographics
•Conclusions, implications and opportunities
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