Wireless Industry Insights: Devices and Carriers

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Wireless Industry Insights: Devices and Carriers

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Key factors to consider for your marketing message this fall ...

Key factors to consider for your marketing message this fall

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  • http://www.pewinternet.org/Reports/2013/Smartphone-Ownership-2013/Methods/About-this-study.aspx
  • http://mashable.com/2012/09/20/qualcomm-smartphone-study/
  • Across all age groups, 11 percent of respondents said they had switched mobile providers because they were dissatisfied with their former provider’s customer service. This was the second most common reason, trailing only that their new mobile provider offered better pricing or discounts (16 percent). Customer service dissatisfaction was also cited more often than dissatisfaction with their former provider’s network coverage (8 percent) or lack of availability of a particular phone or device (5 percent). • Younger consumers tend to jump around more frequently from one mobile provider to the next. 30 percent of respondents ages 18 to 34 have purchased mobile services from two or more providers in the past five years. By comparison, 22 percent of those ages 35 to 54 and 19 percent of those ages 55 and older have used multiple providers. • 20 percent of consumers ages 18 to 34 said they are likely to leave their current mobile provider in the next 12 months. In comparison, just 14 percent of those 35 to 54 and 13 percent of those ages 55 and older are likely to leave. http://www.jdpower.com/content/press-release/8QTU2QQ/2013-u-s-wireless-customer-care-full-service-performance-study-volume-2-and-2013-u-s-wireless-customer-care-non-contract-performance-study-volume-2.htm
  • http://www.fiercewireless.com/story/18-americans-would-sign-handset-upgrade-plan-according-survey/2013-07-29#ixzz2b2wWpvp1
  • Whether it is a searcher’s intent to research, read review, go to compare prices, or buy a device, this study helps in determining the optimal seasonal strategy around a new device launch. It should help in taking the already existing demand on Yahoo Bing properties so that you can connect our searcher to your product or site experience when they look for a particular device… and when the seasonal demand is high, you can make sure your brand is fully utilizing your paid search dollars to make best use of it. The study looked at the top keywords used by searchers to look up highly anticipated devices, the trends in demand indicated by surges in search, and what happens to the demand of previous devices based on searches of previous models during these times. The list of keywords was then taken to determine how some of the top advertisers on our network utilized the available consumer demand. Concept & Methodology – What we are trying to accomplish and why the advertiser should consider..Launch Observations – Supply and Demand (SRPVs, Impressions, Clicks, CPC, CTR)Expose seasonal trends and call out interesting behavior (i.e. SRPV spike prior to demand click acknowledgement, time and amount of CPC increase to capitalize on new supply – i.e. CPCs went from.25 to 1.50 overnight, etc)Advertiser Past Performance – Top Term Competitive SOV during launch periodMissed opportunities acknowledgement and reasons for loss (budget, bids, copy, etc)Actions/ Recommendations:Advanced Forecasting analysisPast performance relative to launchClick opportunity size – addressable opportunityHigh, Medium, Low estimates to capitalize on anticipated supplyQualitative best practices (when to set budgets and bids, how much, insure bidding tools are ready to react, etc)
  • Top 15 Keywords:Iphone 5Iphoneapple iphone 5Iphone 5 priceiphone 5 september 2012sprint iphone 5iphone 5 featuresverizon iphone 5new iphone 5iphone 5 specsverizon iphonetmobile iphoneatt iphone 5new iphone 5 2012iphone 5 announcement
  • http://www.huffingtonpost.com/2012/08/10/iphone-4s-price-drop_n_1763995.htmlhttp://www.theverge.com/2012/9/12/3319198/apple-iphone-4-4s-price-drop-3gs-discontinued
  • SCRIPT: “With ever increasing and evolving digital advertising options, I know it’s difficult to know how and where to spend your precious advertising dollars.  And although most advertisers are familiar with the large audience that Google provides, they often don’t have time to research and decide on other channels to maximize their advertising spend and that’s why we’re providing more information about our audience and how it can help drive demand for your products or services.   As of June 2013 comScore reports that the Yahoo! Bing Network audience delivered 5.6B searches, 163M unique searchers (meaning unduplicated audience between Yahoo! and Bing) in the US and 29% search market share.  Out of the 163M unique searchers on the Yahoo! Bing Network, 54M exclusively use the Yahoo! Bing Network and are not reached on Google; that’s roughly the population of Illinois and California; an audience that’s left on the table if you’re only using Google.   The last two data points on this slide align with what we commonly hear from advertisers who properly optimize their campaigns with us.  comScore tracks a metric called BPI – which stands for Buying Power Index.  This metric indexes the likelihood of a particular group to make purchases as compared to the general population.  We’ve taken this index and compared it to Google’s to see how we stack up.  For our total audience - the 163M unique searchers - they are almost 6% more likely to spend more than Google searchers.  However, remember the population of Illinois and California that cannot be reached on Google?  That audience of 54M that exclusively uses the Yahoo! Bing Network, spends 18% more than Google searchers.  And this is the value we can provide to your business, 163M searchers and 54M exclusive searchers that spend even more.”
  • Kenshoo (Q1 2013)CPC flat YoY but spend was up 35% YoY, with click volume up 38% YoY, ctr up from 1.48% to 1.92%I1 Digital Marketing Report- “Again Yahoo! Bing had a larger YoY increase in Q1 spend with an 11% rise, compared to Google’s slight decrease in spend of 1% (it is important to point out that Yahoo! Bing’s growth is off a smaller base).Over the past 12 months Bing Ads has evolved to meet advertiser top asksFrom a FEATURE perspective (usability, actionable insights, improved targeting, new markets)We know in addition to giving you more volume, we have to also be delivering quality traffic. The efforts to improve the platform, provide new ad formats and focus on quality partnerships have all helped to increase performance. We’re hearing from our partners that its more efficient and effective to invest on the Yahoo! Bing NetworkTake a look at a few quotes from recent report from key SEM technology providersKenshoo Ignition One (Q1 2013)*YAHOO! BING NETWORK CONTINUES TO INCH AHEAD – Yahoo! Bing continued to increase their growth and improved their US market share slightly to 24.4%.*Yahoo! Bing had a larger YoY increase in Q1 spend with an 11% rise, compared to Google’s slight decrease in spend of 1%*While paid search and PLAs are often running on the same page competing for one click, there is minimal cannibalization. While we did see a slight decrease in paid search clicks as PLA investment increased, that effect was much smaller than the synergy of paid search investment and PLA revenue.  RKG (Q1 2013)*Bing Ads search spending increased 48% Y/Y as the engine continued to deliver strong impression growth on expanded keyword to query matching. Ad clicks rose 44% while CPCs increased 2%.*Mobile generated 28% of Google clicks, but just 16% of clicks for Bing Ads. On devices where they were the default search provider, each engine held a relative advantage*Google Product Listing Ads generated 33% of Google non-brand spend among RKG’s retail-leaning client sample. PLA CPCs edged up relative to text ads.*Non-brand spending on Bing increased 53% Y/Y in Q1. Clicks increased 46% and CPCs rose 5%. Even though increased broad-matching is driving traffic volume gains, ROI was on par with Q1 2012, falling just 4%*Brand queries remained significantly more expensive on Bing in Q1. Google brand CPCs were just under half those for Bing.

Transcript

  • 1. Wireless Industry Insights: Devices and Carriers Key factors to consider for your marketing message this fall
  • 2. According to Pew Research: • 56% of American adults are smartphone owners • 35% of U.S. population still using feature phones • 10% increase in U.S. smartphone adoption from 2012 • {No cell phone} rate declines in 2013 compared to 2011 (-2%). • 9% population is tracked as carrying no cell phone • 8% of Americans age 65 and older now own a smartphone, compared with 13% in February 2012. Smartphone Ownership Continues to Grow in 2013 Source: Pew Research Center’s Internet & American Life Project , 2011 – 2013 tracking surveys
  • 3. Tablet Ownership Grows Faster in 2013 Source: Pew Research Center’s Internet & American Life Project , 2011 – 2013 tracking surveys • A third (34%) of American adults ages 18 and older own a tablet computer like an iPad, Samsung Galaxy Tab, Google Nexus, or Kindle Fire—almost twice as many as the 18% who owned a tablet a year ago. • Unlike smartphones, which are most popular with younger adults ages 18-34, we see the highest rates of tablet ownership among adults in their late thirties and early forties. In fact, almost half (49%) of adults ages 35-44 now own a tablet computer, significantly more than any other age group. • Adults ages 65 and older, on the other hand, are less likely to own a tablet (18%) than younger age groups
  • 4. Parents with Minor Children Adopt Tablets Faster in 2013 Source: Pew Research Center’s Internet & American Life Project , 2011 – 2013 tracking surveys • Among parents with minor children living at home, tablet ownership rose from 26% in April 2012 to 50% in May 2013 (an increase of 24 percentage points). • Tablet ownership among adults living in households making at least $75,000 per year rose from 34% to 56% (22 percentage points). • Tablet ownership among college graduates rose from 28% to 49% (21 percentage points).
  • 5. Our Audience More Likely to Research and Buy New Electronics When compared to Google, the Yahoo! Bing Network audience is more likely to: Source: comScore US Plan Metrix Site Audience Profile, June 2013 Research before major offline purchase (5 rating/describes completely) Research before major online purchase (5 rating/describes completely) Be the first to buy new gadgets (5 rating/describes completely)
  • 6. Price is Biggest Factor For New Smartphone Buyers According to Recent Qualcomm study Source: “Price is the biggest factor for smartphone buyers,” Qualcomm study in mashable.com, September 20, 2012 42% more likely to own Kawasaki 71% of respondents influenced by price when selecting a new smartphone 42% more likely to own Yamaha68% of respondents looked for longer battery life 4% more likely to own Kia 23% of the respondents purchased a new device after watching a product advertising 10% more likely to own Lexus25% of parents have purchased their child under 13 a smartphone 12% more likely to own61% of respondents said speed was an important factor
  • 7. 38% of customers who purchased iPhones in the last three months upgraded from another iOS device , 31% upgraded from a basic feature phone, and 20% switched from an Android device 42% of those who purchased a new Windows Phone upgraded from a basic feature phone over the last three months iPhone and Windows Phone Pricing Attracts First-time Smartphone Buyers Source: “Android Leads in the US, but iOS and Windows are Growing Faster,” Kantar Worldpanel ComTech, June 3, 2013 Priceis the main factor driving popularity of these brands among new smartphone buyers. Older iPhone models are now available for free or at discounted rates, same as Windows devices that are priced for new smartphone buyers.
  • 8. Price is Also Key in Selecting a Carrier According to comScore and Oracle Studies in the Last 2 Years 1 These statistics were compiled in December 2012 from comScore MobiLens. 2 Oracle Mobile Trends: Consumer Views of Mobile Shopping and Mobile Service Providers 2011 42% more likely to own KawasakiIn Dec 2012, comScore MobiLens reported Price of the Device, plan and data costs as the most important factors for consumers when choosing a new carrier, along with network quality, latest devices and brand recognition. 1 Oracle study from 2011 capturing [Consumer Views of Mobile Service Providers] also showed that 71 percent of consumers say they would switch to a new carrier with better pricing. 2 Interestingly, according to Oracle study, pricing tends to be a bigger factor for older consumers. 2 • 75% of consumers ages 55 and older and 73% of those ages 35 to 54 said pricing plans and overall cost was one of the three biggest factors for them when choosing a mobile provider. • By comparison, 67% of those ages 18 to 34 cited pricing and cost.
  • 9. Customer Service is Key for Carriers to Retain Customers Online customer service features like Live Chat are most popular 1 J.D. Powers: 013 U.S. Wireless Customer Care Full-Service Performance Study--Volume 2 and 2013 U.S. Wireless Customer Care Non-Contract Performance Study--Volume 2 2 Oracle Mobile Trends: Consumer Views of Mobile Shopping and Mobile Service Providers 2011 42% more likely to own Kawasaki Oracle Mobile Trends study found across all age groups, 11% of respondents said they had switched mobile providers because they were dissatisfied with their former provider’s customer service. 2 The chat feature has become the leading contact source, as 42% of full- service customers indicate using a live online chat feature vs. email (23%) or other social media forum (16%). 1 A recent J.D. Powers study shows that online customer service channels are increasingly becoming popular among consumers with highest satisfaction rates compared to other contact channels 1
  • 10. Device Upgrade and Buyback Plans Become Popular Source: “18% of Americans would sign on to a handset upgrade plan, according to survey by New Street Research” Fiercewireless.com July 2013 42% more likely to own Kawasaki T-Mobile, Verizon and AT&T introduced upgrade plans to encourage users to upgrade to new devices 1 "These plans appeal to people that are interested in the latest and greatest phones--those that are real mobile enthusiasts and can think ahead and know that they need more than one upgrade in the two years," IDC analyst Kevin Restivo told Bloomberg. 18% of Americans would sign on to a handset upgrade plan, according to survey 1
  • 11. Taking Advantage of these Insights this Fall Target Feature Phone Users with iPhone and Windows Phone Pricing Offers. Consider Targeting Older and Senior Adults with Incomes Lower than $74k. Target with Promotions and Discount Offers. Consider Highlighting LIVE CHAT Features and Customer Service Ratings in Your Ads to Target New Customers. Married Couples with Children and College Students with Price / Promotions. 1 comScore US Media Metrix Demographic Profile and Audience Duplication Reports, July 2013 2 comScore US Plan Metrix Site Audience Report, June 2013 Highlight PRICE POINTS and PROMOTIONS In Your Search Ads. Yahoo! Bing Audience has a strong audience advantage for this segment when compared to Google: • 4% more likely to be between 35-44 • 13% more likely to be between 45-54 • 25% more likely to be 55-64 • 25% more likely to be 65+ • 5% more likely to have a HHI of $25K-$40K • 7% more likely to have a HHI of $40K-$60K
  • 12. This study focuses on surfacing key insights that help in determining the optimal paid search media and optimization strategy on the Yahoo! Bing network during the new iPhone release. Our Discoveries
  • 13. Searches for New Product Launches Typically Surge in Three Stages: a) pre-announcement chatter b) official release announcement c) product in-store date Source: Smartphone Launch study 2013. Bing ads data 2012 Drive perceptional and conversion value Take advantage of strong conversion value iPhone 5 release timeline 2012 Stage A & B Stage C More than 50% searches during stage A and B. Searches surge x300% at the time of initial announcement leading up to the product ship dates (stage C) A handful of search keywords trigger these spikes – 90% of the searches are brand related keywords – product, carrier or product + carrier 16% of all iPhone related searches during this time period came from searchers looking up the exact brand name, in this case iPhone 5
  • 14. Searches on Mobile Devices Show Similar Trends a) pre-announcement chatter b) official release announcement c) product in-store date Source: Smartphone Launch study 2013. Bing ads data 2012. Data based on iPhone related searches on mobile & tablet 4/29/2012 – 10/28/2012. • iPhone related searches on mobile and tablet saw similar trends with a spike in searches close to days leading up to the official announcement • With the increased growth in mobile searches over the last few quarters, we should anticipate the # of searches to in both mobile and tablet to increase this year. We recommend having appropriate mobile budgets for launches this year to ensure proper coverage. Searches MOBILE Tablet
  • 15. Demand for Predecessor Models Also Increases Source: Smartphone Launch study 2013. Bing ads data 2012. • Most device makers adjust the pricing for older models as they introduce newer versions • Consumer searches surged for these devices by roughly 200% on the day of this announcement and sustained gradual decline over the 30 day period • While new devices equals net new demand – search trends prove that appropriate budgets need to be in place to take advantage of increased demand for older models based on pricing updates iPhone 4 iPhone 4s
  • 16. Correlation Between Clicks and CPC Source: Smartphone Launch study 2013. Bing ads data 2012. Data based on iPhone related searches in Sept 2012. The days searches and paid clicks see a drastic increase, there is an opposite reaction to CPCs We recommend bidding aggressively during these times and ensuring budgets are not running out CPCs tend to normalize a few days following the drastic spikes – great opportunity for advertisers to take advantage of this trend 0 500,000 1,000,000 1,500,000 2,000,000 Searches vs. CPC Searches CPC 0 50,000 100,000 150,000 200,000 250,000 Clicks vs. CPC Paid clicks CPC
  • 17. • “Wireless” related keywords saw the highest click-through-rates with the lowest cost per click during Sept A few takeaways: • Most searchers look for “release” related information during the weeks close to launch • Searches for cases and accessories start to build up post release announcement with a gradual increase through the 30 day duration leading up to holidays A Deeper Look Into Performing Keyword Segments Source: Smartphone Launch study 2013. Bing ads data 2012. Data based on iPhone related searches between 9/1/2012 – 10/7/2012. CTR All iPhone Related Queries Cases Accessories Unlock Review Release Wireless CPC All iPhone Related Queries Cases Accessories Unlock Review Release Wireless (10,000) 10,000 30,000 50,000 70,000 90,000 110,000 130,000 150,000 Searches All iPhone Related Queries Phone Cases Phone Accessories Unlock phones Phone Reviews Release
  • 18. Key Considerations • Highlight price points and promotions in ad title • Target new segments of customers that have a high propensity to respond to your offers i.e. older and senior adults, parents with children • Highlight customer service tools like help chat and any customer ratings • Increase budgets through September to take advantage of new iPhone related search volume
  • 19. With Substantial Share of Paid Clicks Across Telecommunications Source: 1 comScore US Search Categories Report (custom), June 2013 2 comScore US Search Categories Report (custom), comparing March 2013 to June 2013 24% share of paid clicks TECHNOLOGY 37% share of paid clicks TELECOMMUNICATIONS +12% increase in TELECOMMUNICATIONS Substantial share of paid clicks across Telecommunications and Technology categories1 Share of paid clicks on the rise across Telecommunications category2
  • 20. Spend 23% more than average online population1 Total Yahoo! Bing Network spends about 6% more than US Google searchers1 Unique Yahoo! Bing Network spends about 18% more than US Google searchers1 Audience Buying Power Index 138 123 116 100 Unique Yahoo! Bing Network Total Yahoo! Bing Network Google Average Internet Reach an Audience that Spends More than Google 1 comScore Explicit Core Search (custom), June 2013
  • 21. The Yahoo! Bing Network Audience Snapshot Source: comScore Explicit Core Search, June 2013 / comScore Explicit Core Search (custom), June 2013 5.6B SEARCHES 163M UNIQUESEARCHERS IN THE US 54M UNIQUESEARCHERS NOTONGOOGLE 29% SEARCH SHARE TOTAL SEARCHERS ON THE SPEND SEARCHERS WHO EXCLUSIVELY USE THE 5.6% MORE THAN GOOGLE SPEND 18% MORE THAN GOOGLE
  • 22. Platform Updates +1,000 Increased Efficiency +21% More Clicks +25% New Markets in 2012 +15 Based on internal data 2012 “The Yahoo! Bing Network has outperformed Google in return on ad spend, ending Q3 2012 with the largest gap of the 18-month period at 28%.”Global Search Advertising Trends, Q4 2012 Paid Search Update, Q4 2012 “On [the Yahoo! Bing Network], advertisers saw marked improvement in clicks. On a year-over-year basis, advertisers saw 25% higher click volumes.” “Yahoo! Bing Network spend increased 48% Y/Y as the engine continued to deliver strong impression growth on expanded keyword to query matching. Ad clicks rose 44% while CPCs increased 2%.” “The “Yahoo! Bing [Network] continued to accelerate its growth with a YoY increase in spend of 48% compared to Google’s 12%.” Analysts: Yahoo! Bing Network is More Effective Than Ever
  • 23. Thank you