Decca Media Mobile Industry Report


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Mobile Industry - "At A Glance" Report from Decca Media.

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Decca Media Mobile Industry Report

  1. 1. At a Glance: Mobile 2013Decca Media Mobile Analysis
  2. 2. At A Glance: Mobile 2013 - Mobile Industry ReportMobile At Large, 2013By the end of Q4 2012 it became evident that the mobile industry was experiencing continued growth. Thegrowth documented has been at a historic level and represents a massive transfer and reconfiguration at thecore of technological life for organizations and consumers.But what exactly does mobile mean? For one, it’s hardly limited to advertising. From our perspective, advertis-ing is only one component of mobile’s future. There are many other game changers that have yet to surface.As the industry develops, we watch countless organizations and entities deploy and transition to this cloudbased, evolving mobile ecosystem, but does anyone fully understand the power and potential of what mobilecan do? As corporations and governments adapt a “mobile first” attitude, what can end users expect to experi-ence? The staggering growth in smartphone and smart device usage is changing the way consumers behave,the way businesses operate and the way governments collect knowledge. Having these devices at our collec-tive fingertip also changes how we manage our finances, stay in touch with friends and consume content.Mobile & the WorldBelieve it or not, the Internet is still in its first stages of development. The entire industry is very young and thisundoubtedly includes mobile. Today, roughly two-thirds of the world are without Internet access. Still, an esti-mated 2.26 billion people are online, one billion of which are using mobile broadband subscriptions - and thenumbers grow daily. Many people can only access the Internet by using a mobile device and do not even owna home computer, which puts the future of mobile in a solid position for continued growth. In other words, asmore users get online, they won’t be doing so with a desktop. In fact, many will never use a desktop.Developing nations are showing the greatest gains in Internet and social media use on a percentage basis; atrend that the U.N.’s International Telecommunications Union predicts will continue at least through 2015. Forexample, the Philippines has the highest rate of social network participation among Internet users, at 70 per-cent, followed closely by Indonesia and Malaysia; compared to the global rate of 55 percent. The middle eastis also very active on social media and social network platforms, despite censorship and blockades. IncreasedInternet activity is inexplicably linked to economic improvements, with the U.N.’s telecommunications agencyestimating that a 10 percent rise in the total broadband penetration of developing nations will equal an ap-proximate 1.38 percent rise in GDP growth. In this way, mobile even has the power to directly affect the peo-ple’s general health and the standard of living in developing nations.As such, it is essential for countries to invest in broadband infrastructure, which provides the ability to par-ticipate in today’s growing and global digital economy. According to the Boston Consulting Group, the Inter-net economy among G20 nations is estimated to be valued at nearly $2.3 trillion, a figure that is expected todouble by 2016. Also of note, the McKinsey Global Institute estimates that the Internet already accounts for atleast one fifth of the GDP growth in all G8 countries, as well as in the economies of Brazil, China, India, SouthKorea and Sweden.As more and more people around the world are able to get online, the landscape of the Internet and all as-pects of mobile will continue to evolve. In fact, Chinese will soon surpass English as the most-used language onthe Web, and the total number of Chinese-language Internet users is expected to exceed the number of Eng-lish language users by 2015.
  3. 3. Mobile in the MarketBusiness and government hold the keys to unlocking mobile’s full potential. The U.S. Armed Forces and otherfederal agencies have been in the process of changing their communications infrastructure to rely more heav-ily on mobile technology. Governments and private organizations around the world are rapidly investing in thefuture of mobile, analyzing the potential for booms in growth within developing areas.The rise of mobile is definitely changing the way we engage with our government and businesses on interna-tional, national and local levels. For example, it is estimated that 29 percent of consumers regularly use theirmobile devices to find a local business, compared to only 15 percent who use desktop Internet. Bring YourOwn Device, or BYOD, is growing rapidly as more and more businesses and organizations adapt.Small and local business depends heavily on the search function, and many of these search queries are nowcoming from mobile devices. The most commonly searched businesses for mobile users include pubs, barsand clubs, as well as restaurants, clothing stores, hotels, automotive, doctors, beauty salons and fitness clubs.Other businesses that made the list include dry cleaners, health and wellness clubs, gardeners, tradesmen,wedding retailers, builders, home repair specialists and accountants.Already, shoppers globally are showing signs of embracing the concept of allowing mobile technology to func-tion as a useful tool when browsing retailer offerings, searching for discounts or comparing products. The ben-efit of using a smartphone or tablet is that these devices are easy to use both at home and on the go, makingmobile every smart shopper’s new best friend.According to Mashable, a news organization, in 2012 around $13 billion in goods were traded on eBay viamobile, which is more than twice the amount in 2011. This also led to a rise of 18 percent in the retailer’soverall growth during the fourth quarter of last year, helping it hit $4 billion. These numbers are only expectedto increase throughout the remainder of 2013 and beyond. In fact, mobile device shipments are expected toincrease by 150 million unit as of 2015.Consider this: As of December 2012, around 70 percent of U.S. mothers who own a smartphone or tablet haveused the device to shop, and one third have used these devices to fulfil at least half of their total shoppingneeds. Since mothers tend to lead shopping and mobile trends, this could be the first sign of another big stepin the forward momentum of the mobile lifestyle. Retailers must evolve.Social networking apps also play a large role in deciding what to buy, with nearly 50 percent of moms regularlyusing them to gain product insight. Product review applications, location-based apps and barcode scanner appswere also quite popular among one out of five moms. Still, input from other moms is viewed as the most im-portant part of making a purchase decision by most members of this telltale demographic, followed by conven-ience and product discounts.Mothers aside, the total number of mobile shoppers is expected to reach more than 180 million in the U.S.alone by the end of 2013 and you can bet that businesses will be closely monitoring their behaviors in an at-tempt to identify leading indicators of trends among various demographics.Businesses can keep up with the growing mobile trend by making sure they are easy for mobile users to findand have a mobile optimized website. Today’s mobile consumers are looking for fast, easy access to the mostimportant information about a business, so content should be simple and to the point.Ray Kurzweil, futurist and Director of Engineering at Google has made it clear that his goal is to develop
  4. 4. “search” so questions are asked before they are queried. How this will end up coming about is still unknown,but chances are it will be built upon a platform of mobile technology. The former need to sit at a desk andconceptualize is now just an option. The industry is leading towards having you search via Google Glass (smartoptics) while you are in your driverless car.Mobile in the FutureCorporations are lining up at the gates. As this report was being compiled, Facebook announced their partner-ship with HTC, and ultimately AT&T.Enterprise and open source platforms will be the way of the mobile future. At least, that’s what we think.Regardless, there is no end in site to the mobile phenomenon. By 2015, the U.N. hopes that at least 60 percentof the world will have Internet access and mobile broadband is expected to deliver the extra growth in ac-cess that will be needed to make this goal a reality. However, there are still outliers like India, a nation poisedfor wide internal growth, who need to develop their own national platforms and infrastructure. The fact thatmobile is in demand and holds a high degree of permanency is reason enough for governments to embark onpurely public or private-public platforms for future planning.The rapid increase of mobile users worldwide is changing the way consumers react as companies continue tobattle for market share. In today’s world, we are often available on our smartphones and tablets up to 18 hoursof each day and these devices are changing the way we connect with others, consume media, shop and organ-ize our daily lives. That will be the same for the developing world as Internet access spreads.
  5. 5. Sources Used:Source 1 – How Moms Are Making Mobile Part of Shopping Routine 2 – Only 29% of Consumers Regularly Use Mobile Devices 3 – Internet Usage 4 – The Mobile World Top 20 Markets