And we start with some background. We know that there are 112m people in Mexico, and about 100m mobile phones. That means that mobile phone penetration is lower than in other key markets in Latin America (Arg 1.35, BR 1.3, Colombia etc etc), but still a very large number – and probably due to increase significantly in the next few years as the market opens up to more competition. And in 2012, 17m Mexicans will use a mobile device to access the internet. Data suggest that about half of people using their mobile phone to go online use WiFi hotspots to access the internet, which is an interesting market dynamic. For the purposes of this research, we’ve not split out the different connection channels – it keeps things simpler, but also, the study concentrates on the key motivations for accessing the internet from a mobile phone, and so the channel isn’t an integral part of the research.
In 2012, 17m people will access the internet from a mobile phone in Mexico, an increase from 2011, when 11m did so. By 2015, more than 37m people will use the mobile internet, more than 3x as many as in 2011. At the same time, there’ll be 7x as much money spent on mobile advertising in 2015 as there was last year – PWC predicts that $14m or MX$200m will be spent on mobile advertising formats in 2015. In fact, that’s a conservative estimate: other sources suggest that MX$1bn will be spent on mobile ad formats in 2015 (about $75m), or 10% of all internet advertising in Mexico.
Communication is (unsurprisingly) one of the key motivations for mobile internet use. People check their emails, update their social network status, use instant messenger, share photos, and so on
Q26. But content is also very important in mobile internet use. People search for information about news, sports, celebrities. They want to know directions, look at photos, watch videos and so on.
The key finding from our research is that all of these different activities can be summarised into 7 key Modes, or themes, shown here. Connect: is all the communication that I mentioned: emails, IM, social media; sharing photos and posting comments online.Search:is about finding specific information, whether it’s a phone number for a local store, a topic for school or a business meeting (or a social event), or a particular recipe. Entertain: is about passing the time: listening to music, playing games, seeing information about movies and so on. Manage: is coordinating your day: schedules, shopping lists, keeping track of money and so on. Inform: is primarily about reliable content – news, sports and finance, whether it’s in text, video or pictures.Shop: is an area that’s of growing interest – it’s about people using their mobiles to facilitate their shopping, whether it’s comparing prices when they’re in-store, or checking out e-commerce stores and suchlike. Navigate: finding a place, or mapping a route.
That brings us to the end of the first section, and really what we’ve seen is that the mobile phone has become integrated into the daily lives of many Mexicans; and for those using the mobile internet, this is even more true. Almost everything they want or need can be accessed on their mobile phone, whether it’s to find a bar, manage their lives, pass the time or whatever. Fortunately for us, when we analyse these numerous activities, we see that there are some common themes in the motivations behind them, and through these themes we can group and simplify all of these mobile activities into 7 Mobile Modes.
These Mobile Modes give us a great start to understanding more about mobile internet users in Mexico, and their similarities and differences.
These are our modes
Q26. And we start by looking at how age affects people’s behaviour. Here we’ve broken out three key age groups from our mobile internet users – 14-17, 18-34 and 35+. The teens concentrate most on communication, but do less managing, shopping or navigating. It makes sense – we know teens are always talking to or about their friends, but don’t have so much money for shopping. Our middle age group, 18-34, covers several lifestages, but in general we expect this group to be heavy consumers of mobile internet – they’re young enough to really embrace the technology, but old enough to combine that with disposable income and a need to manage their lives. And that’s almost exactly what we see. Again, communication is important, managing is more important to them than the younger users, and they’re more likely to shop and navigate. Those aged 35+ have slightly different behaviours again – while managing their lives is important, again shopping and in fact search are less important to them than younger users. But that’s just the first step, if we delve *into* the modes, we can also see that there are nuances within the different kinds of behaviour.
Here I’ll just focus on the “Connect” mode, about communication. And along the bottom we have the different activities that make up this category – email, IM, social networks and so on. If we take just the two age groups this time, we can see that older consumers are more likely to use email and IM than the teens. They’re about as likely to do social networking on their mobile, interestingly. But the younger users are much more likely to do things like posting photos online, posting on blogs, use things like FourSquare and so on. Mobile’s importance also varies across these activities. The key thing to remember here, really, is that there are differences in consumers’ behaviour. Obviously not all mobile internet users are the same – younger people behave differently from older users. But the Mobile Modes give us a great way to understand the key themes behind each activity, and a broader understanding of why and how consumers are doing them.
So that brings us to the end of this second section. One of the key findings are that mobile internet users are NOT all the same – people of different ages behave slightly differently, for example – but the Mobile Modes give us a very clear framework for understanding why and how people are undertaking these bheaviours. The other key point is that Content is King. Content drives a lot of mobile internet behaviour, whether it’s written articles, videos or applications. We saw that the most popular genres of content are entertainment (things like music, movies and so on), and news; with some understandable differences in the kinds of content that different people prefer (young, old, male, female).
So I’ve talked about mobile internet as a channel for consumers; the final section of the research relates to mobile internet as a channel for brands and for marketers. How do we take what we know about people’s use of the mobile internet and build on it to engage with them.
The first thing to understand is that research from around the world shows that mobile is a very effective marketing channel. This chart is from Dynamic Logic, and it summarises the thousands of campaigns they’ve measured in the last 3 years with their ad effectiveness studies. What it shows is that the average mobile ad performs significantly better than the average traditional online ad, across all the metrics they track. Mobile ads generate better ad recall, better brand awareness, they get the message across better; they build brand favourability more effectively, and they ultimately have a greater effect on purchase intent than online ads. And bear in mind that the average clickthrough rate for a standard online banner ad across North America (incl MX) is about 0.2% - while the average clickthrough rate for mobile ads is 5x as much. There are a few reasons for this: mobile device as central hub for daily life. Including the fact that it’s still a relatively young medium (people aren’t quite as cynical just yet about mobile ads); but also because the limitations of mobile internet mean that ads are inherently more useful. There simply isn’t space for the pointless ads on mobile that we see on many PC websites.
Q45/46/51. Higher recall/ lower claimed interaction than Brazil. We found that half of our respondents could recall seeing an advertisement while using the internet on their mobile device. And more than half of them have clicked on a mobile ad. Looking in more detail, banner ads have the highest recall in the mobile experience, probably because they’re the most common form. Video ads are less common but more memorable when they are shown; location-based ads have the lowest recall (probably in part because consumers tend not to consider ‘location-based’ as an attribute).Interestingly, there are differences among different mobile internet users – younger users are more likely to recall video ads, for example, in part because they’re more likely to watch video on their mobile and hence more likely to have been exposed.
Q47Looking at it a different way, we found that people’s receptivity to mobile ads varies by what they’re doing at the time. Firstly, we saw that when users are Navigating or Shopping, they’re least likely to notice mobile ads. As we touched on earlier, they’re quite functional activities – when you’re lost and trying to find your way, for example, ads really aren’t top of your list of priorities.At the other extreme, people are most likely to notice ads when they’re socialising or searching. This may partly be a function of recall – people are more likely to remember ads if they’re not too busy, or if they’re not being distracted by something more interesting.But it’s also very interesting, suggesting that people are more open to distraction by ads when they’re Connecting. With Search, we know that ads in mobile search perform very well; as with search on a PC, the point of the search ads is to try to make it easier to find what you’re searching for, or at least give you options.
But across the Modes, we discovered that there were some consistent themes in the kinds of mobile ads that Mexican users would most value. First, we can start with the basics, the essentials. Unsurprisingly, consumers like ads that offer them an incentive, or something in return. Not necessarily a flashing banner promising millions of pesos, but at least something that offers them a little more reason to click on the ad. Obviously they like ads that are relevant to them and their interests; and to their general location as well. If you’re in Mexico City and see an ad for a restaurant in Monterrey, it’s not really particularly helpful. This final point is worth reiterating; as with the previous ones it’s so obvious, but so important. On the whole, mobile internet users will not make a note of ads that they see on their mobile. If they want more information, they will click on it right now, on their mobile phone. So it *has* to lead to a mobile-optimized experience. It can’t lead to a website that doesn’t work on a mobile phone. It’s so simple, but we see in other markets that brands still forget sometimes!
Some points were more subjective – every campaign is different, and not all work well the same way. But we thought it’d be interesting to show them, as useful guidance. So mobile internet users in Mexico prefer entertaining, humorous ads; and they like their mobile ads to be interactive and bold, standing out from the clutter and catching their attention. Interestingly, they prefer mobile ads to be relatively simple, without too much detailed information. It’s interesting, but perfectly understandable given the limitations for the medium. And they like ads that build their relationship with a brand, rather than just focussing on a specific product. So really they’re painting a picture of the ideal mobile ad – something that catches their attention, gives them a reason to interact with it, with a colourful message and a brand connection.
I wanted to bring together the results of the last few slides into an outline of how to optimize mobile advertising around what we’ve learned about Mobile Modes. Navigate: is tricky for brands. Lots of navigation is through an app, so it’s not always easy to insert ads. Also people aren’t always in the right mindset to see them. But if they’re particularly relevant, they can be great. Shopping:didn’t have the best recall, but it’s often about browsing for particular products, prices and so on, which gives an opportunity for marketing. Say our user is in a store looking at some jeans – where else can she find them, what other brands should she consider – an ad can really help her to find that information or share the experience with her friends. Inform: is about staying up to date with what’s going on, through reliable information. So users are probably open to ads, but those ads should reflect that mindset and environment. Attractive and interesting is fine; frivolous or tacky may not be. (Also, of course, for news many internet users have their preferred trustworthy sites and sources that they use, be it Televisa or Yahoo! News – similarly for Sports. Brands on these sites benefit from being associated with the trustworthy, reliable content. )Manage: higher recall of ads. Quite functional activities (booking travel, making dinner arrangements, managing money etc), so ads that help those processes and make them easier will be useful. Entertain: is about primarily passing the time, finding fun stuff to read, watch or do. In this mode, we’d expect ad receptivity to be highest, particularly for interactive, fun ads that attract their attention. From other research findings, this is probably not the place for ads that are too serious, worrying or playing on people’s anxieties! Search:(It’s about searching for something – an answer, a place, some information – and things that help to bring that ‘something’ closer are going to generate the best response. Search ads on mobile can be similar to those on PC;] don’t forget as well, that people don’t always ‘search’ on search engines alone – they can also hunt for things by going to their favourite trusted site and hunting around there (eg Yahoo! for a clip of the football). Connect: Probably the most suitable mode for more sociable ads, or ads that you want people to share. If you have something that you want to be viral, think of connecting. (And, while people are fairly distractible in this mode, don’t forget that they still have things they want to do, and more pressing gossip to catch up on! )
So to summarise:- Mobile internet may be quite small now, but it is growing very rapidly. It’s already important for many users, and its importance will only increase, both for consumers and for brands. - For consumers, it enables them to do everything in one place – again, the iPhone is a great example, showing how people can do everything on their mobile phone: listening to music, watching movies, emailing, updating Facebook, playing games, managing their lives. Mobile internet users are different from each other, and there are many thousands of different kinds of things people can do on the mobile internet, but we’ve seen that these behaviours can be grouped together and simplified into these 7 Mobile Modes, each of which reflects a different motivation and need. - In turn, these Mobile Modes enabled US to understand how best to reach these consumers, how to help them, how to engage with them and how to be part of their mobile lives. Thank you very much for your time and your attention. Are there any questions?
Looking at it another way, we can break out how people use different devices across the same activities. The blue line is the proportion of mobile users doing each activity ONLY on their mobile (ie not on any other device). As I mentioned earlier, these figures are quite low – again, people prefer to use their PC for the internet, when they can. And the red line shows the proportion of people who do each activity on a PC as well as on their mobile. The interesting thing is that the importance of the PC shrinks as we go from left to right. For email, IM and social networking, we know that people do these a lot on their PCs as well as their mobiles. These activities follow them across devices, if you like. But when we look at things like location-based checkin services (FourSquare, for example,) or video calls through things like Skype, we see that relatively, the mobile-only people make up a larger proportion of those doing this activity. The key thing to remember here, really, is that there are differences in consumers’ behaviour. Obviously not all mobile internet users are the same – younger people behave differently from older users. But the Mobile Modes give us a great way to understand the key themes behind each activity, and a broader understanding of why and how consumers are doing them.
Mobile Internet in Mexico: State of the Nation 112MM inhabitants With 99MM cell phones ...and 17MM mobile internet users Proprietary and Confidential.Sources: INEGI ‘10, Cofetel ‘11, eMarketer ‘12
...and mapping the future Mobile ad spend, US$m 2015 Mobile internet users in Mexico 14.0 11.2 MM 2011 2011 2012 17.1 MM 2.0 2013 23.6 MM 2014 30.1 MM 2015 37.7 MM = 200% growth from 2011 Proprietary and Confidential.Source: eMarketer, April ’12; PWC Jun ‘11
Our Research Approach Quantitative online survey of 750 mobile internet users in Mexico conducted with Ipsos. • Aged 14-54 • Use the internet through their mobile device at least once a week Sample profile • 49% female, 51% male • Average age 32 • 55% use a smartphone, 23% use a tablet4 Proprietary and Confidential.
Meet the Mexican mobile internet user 55% “ I read newspapers or magazines less because I prefer to read this content on my mobile device. ” “ My mobile device is more entertaining than TV. ” 54% 55% “ Mobile internet is more convenient than home connections. ”5 Proprietary and Confidential.
Mobile internet coexists with the PC Mobile doesn’t replace PC Only 31% say they’d rather give up their PC than their mobile. ...it’s a complement to it78% visit websites on their mobile device and follow-up on their PC. 68% prefer websites that they can access from both a PC and a mobile device (not just from a PC).6 Proprietary and Confidential.
...and enables myriad activities7 Proprietary and Confidential.
These activities fall into 7 Mobile ModesConnect Search Entertain Manage Inform Shop NavigateConnecting Using a search engine to find Playing music Managing Reading Purchasing Using an IM, email, key aspects or specific or games and news or online map social of daily life comparing information, viewing educational or GPS media; like a stock prices for sharing such as health- entertainment articles / videos system related or -related videos portfolio or goods or content paying an services looking up and articleswith friends online bill something local Proprietary and Confidential.
...which reflect different mindsets Connect Search Entertain Manage Inform Shop Navigate Use search Find out Plan and manage Compare prices Use an onlineInstant message Read articles engines to find information daily schedule when in a store map from blogs & information about movies forumsCheck/Send email Listen to Plan and monitor Compare Use an online Look up local or products/ streaming radio my health Read articles/ GPS service directory services or created music headlines from information playlists portals,View Or Update Browse retail/ newspapers, etcsocial networks, Research a topic Make dinner plans shopping sites Twitter etc for school or Browse or Watch video work download music 11 Proprietary and Confidential.
Socialising and passing the time are important % of mobile internet users doing each of these on their mobile device Connect Search Entertain Manage Inform Shop NavigateMobile 97% 90% 89% 89% 83% 77% 81% 12 Proprietary and Confidential.
Fixed-line internet is still the preferred channel % of mobile internet users doing each of these on a PC or laptop Connect Search Entertain Manage Inform Shop NavigateMobile 97% 90% 89% 89% 83% 77% 81%PC 99% 97% 97% 92% 93% 94% 73% 13 Proprietary and Confidential.
The Mobile ModesConnect Search Entertain Manage Inform Shop Navigate Proprietary and Confidential.
18-34s are heaviest mobile users across Modes Aged 14-17 Aged 18-34 Aged 35+100%80%60%40%20% 0% Connect Search Entertain Manage Inform Shop Navigate Proprietary and Confidential.
Within Modes, behavior differs by age 14-17 35+100%90%80% Connect70%60%50%40%30%20%10% 0% Check email Instant Social Share photos Post on Share videos Use location- Video Post videos message networking online blog/forum etc based check in conference online services Proprietary and Confidential.
Content is a key driver of mobile internet use83% of mobile internet users use their mobile for reading and watching content (the “Inform” Mode) read magazines and newspapers less 55% because they consume content on their mobile devices 95% of mobile internet users have downloaded content on their mobile device19 Proprietary and Confidential.
Entertainment and News are top genres for content83% of mobile internet users Types of content read through app or browser use their mobile for reading and watching content (the “Inform” Mode) Music 55% National News 45% Movies 43% Content Local News 42% read on phone Humor 39% Top headlines 37% Weather 37% International News 35% TV 33% Video game-related 31%20 Proprietary and Confidential.
...but men and women read different things Men prefer National News 50% 38% International News 39% 32% Content Sports 38% 21% read on phone Women prefer Beauty, Fashion 8% 37% Health 28% 34% Celebrities, gossip 17% 29%21 Proprietary and Confidential.
Mobile video is growing in importance83% of mobile internet users use their Types of video watched mobile for reading and watching content (the “Inform” Mode) Music 76% Humor 59% Movie clips and trailers 49% Videos News 48%watched Sports 40%on phone Technology 38% Education/ How-to guides 37% Full-length TV shows 36% Full-length movies 35% Celebrity 29%22 Proprietary and Confidential.
Again, there are gender differences Men prefer Movie clips, trailers 52% 46% Sports 51% 25% Technology 47% 27% Videos Automotive 29% 8%watchedon phone Women prefer Beauty, Fashion 8% 43% Educational/ How-to guides 32% 42% Food 18% 37% Celebrity 26% 34%23 Proprietary and Confidential.
Apps are important in the mobile experience 97% of Mexican mobile internet users say they use mobile applications 67% download apps at least once a month On average, mobile internet users in Mexico use different applications on their mobile devices 1924 Proprietary and Confidential.
Apps are most important for Navigate, Manage & Connect Connect Search Entertain Manage Inform Shop Navigate 13% 18% 20% 21% 26% 28% 36% 40% 44% 42%Use an app 47% 46% 39%Use both 37%Use browser 47% 33% 33% 38% 37% 28% 27%26 Proprietary and Confidential.
Mobile as a Marketing Channel Proprietary and Confidential.
Mobile advertising is more effective than (PC) online Proprietary and Confidential.
...and mobile internet users appreciate ads’ value “ I’m OK with mobile ads if it 52% means that I can access mobile content for free. ” “ I’m OK with mobile ads when they’re useful and relevant. ” 55% “ After I see a mobile ad, I 49% sometimes look for more information ”30 Proprietary and Confidential.
Mobile ad recall and response are high 50% of mobile internet users remember seeing an ad on their mobile ...of whom an ad 54% have clicked on 61% Type of ad recalled 38% 32% 31% 26% 23% 22% Banner/ Text Video ads Ads within Click-to- Click-to- Location graphical message/ mobile search video ads call ads based ads ads SMS ads engine listings31 Proprietary and Confidential.
…but recall varies by Mode 50% of mobile internet users remember seeing an ad on their mobile 75% Q. What were you doing on your mobile when you saw the ads? 65% 55% 45% Connect Search Entertain Manage Inform Shop Navigate32 Proprietary and Confidential.
There are some basic principles of mobile advertising The ads that would catch mobile users’ attentionAds that offer me something in Ads without an incentive return 51% 22%Ads relevant to my interests & Ads with broader focus background 51% 22% Ads in a free app 47% 22% Ads in a paid app Ads relevant to my location 42% 24% Ads with broader focus Ads that lead to a mobile- Ads that lead to the PC optimized site 41% 25% version of a website 33 Proprietary and Confidential.
…and some creative preferences The ads that would catch mobile users’ attention Entertaining ads 49% 23% Serious ads Interactive ads 45% 28% Simple, non-interactive adsAds that use bold colors or design 42% 26% Subtle, discreet ads Ads that build a stronger Ads that just focus on theconnection with the brand 41% 24% product Simple ads with little Ads with a lot of detailed information 40% 32% information34 Proprietary and Confidential.
Optimizing ads by Mobile ModeLowest ad recall Ad receptivity at its lowest; high app use, but potential for contextually Navigate relevant ads. Low ad recall, but activities include price comparisons, looking for stores Shop etc. About staying informed and up to date through trustworthy content. Ads Inform should reflect this and their environment Goal-oriented activities; ad recall is higher, but ads should be relevant to Manage the current task. More about passing the time, so receptivity to ads is higher. Eye- Entertain catching, entertaining ads that offer a reason to interact are good. Very goal-driven – searching for something, and search ads perform well Search when they help guide users to their end goal.Highest ad recall Very high ad recall; opportunity for the best ads to be shared with friends. Connect Proprietary and Confidential.