1. the mobile landscape
Nick Lane, chief strategy analyst,
All data/forecasts contained in this presentation copyright of mobileSQUARED unless stated otherwise. Data from Mobile Consumer Trends database

2. About mobileSQUARED
Specialists in mobile consumer engagement
We do it using Mobile Consumer Trends, the only forward-looking mobile
consumer forecasts, based on extensive ongoing qual/quan mobile market
and consumer research.
How we do it
We create the Then segment • Advertising Then • Device type Then we
mobile market the data by • Apps by • Age forecast
forecasts • Internet • Gender
• Messaging • Location
• Commerce • Socio-economics

3. Our view of the UK mobile market
Number of subscriptions will increase from 82.9 million end-2011
to 86.02 million by the end of 2016
Total UK mobile subscriptions
88,000,000
86,000,000
84,000,000
82,000,000
80,000,000
78,000,000
76,000,000
74,000,000
4Q09 4Q10 4Q11 4Q12 4Q13 4Q14 4Q15 4Q16

4. Featurephones still dominate but ...
45.8 million
90,000,000
80,000,000
70,000,000 Featurephones/other
60,000,000 Other smartphones
Microsoft
50,000,000
Symbian
40,000,000
BlackBerry
30,000,000 Android
20,000,000 iPhone
10,000,000
-
4Q09 4Q10 4Q11

5. ...NOT FOR
LONG
4 out of 5 phones shipped during 2011 are smartphones

6. Arise Sir Smartphone
Smartphones experiencing
unprecedented growth in the UK
90,000,000
Smartphones to
80,000,000
overtake featurephones
70,000,000 Featurephones/other in 4Q2012
60,000,000 Other smartphones
Microsoft
50,000,000
Symbian
40,000,000
BlackBerry
30,000,000 Android
20,000,000 iPhone
10,000,000
-
4Q09 4Q10 4Q11

7. UK smartphone growth Smartphone penetration:
14% in 2009
24% in 2010
39% end 2011
UK mobile market 4Q2009
Smartphone UK mobile market 4Q2010
UK mobile market 4Q2011

8. Android overtakes iPhone in 2011 as the biggest
Platform size by volume up to 2016:
1. Android
2. iOs
3. Blackberry
90,000,000
80,000,000
70,000,000
Legacy Android CAGR 86%
60,000,000 Featurephones
Other
50,000,000
Microsoft
40,000,000 Symbian
BlackBerry
30,000,000
Android
20,000,000 iPhone
10,000,000 iPhone growth stabilising
-
4Q09 4Q10 4Q11 4Q12 4Q13 4Q14 4Q15 4Q16

9. 2011
According to Mobile Consumer Trends

10. Key usage numbers (4Q2011)
Mobile internet users 26.14 million 39%
App users 22.02 million 33%
Mobile Ad reach 13.62 million 20%
M-commerce 16.37 million 24%
Opt-in marketing 14 million 21%
Nb all MCT data based on 18-64 year olds

11. BIGGER

12. Key usage numbers (4Q2011)
Mobile internet users 26.14 million 39%
App users 22.02 million 33%
Mobile Ad reach 13.62 million 20%
M-commerce 16.37 million 24%
Opt-in marketing 14 million 21%
Nb all MCT data based on 18-64 year olds

13. UK mobile usage landscape 2Q... Mob Int: 7%
M-comm: 5%
Apps: 1%
M-comm: 1%
Mob Int: 11% Mobad conversion:
M-comm: 12% 65,250
Mob Int: 5%
Apps: 5%
M-comm: 5%
Mob Int: 2%
Apps: 2%
Mobad
conversion:
Mob Int: 10%
300,142
Mobad
conversion:
514,862
Mob Int: 5%
M-comm: 5%
Apps: 6%
M-comm: 6%
Mob Int.: 1.3 mil.
Apps: 7%
M-comm: 7%
Total mobad
Apps: 14% reach: 2.5 mil.
Total mobad Mob Int: 12% Apps: 18%
reach: 16% M-comm: 9% M-comm: 22%

14. ... And 4Q Mob Int: 1.88 mil.
M-comm: 929,828
Apps: 1.3%
M-comm: 207,927
Mobad conversion:
1.3%
Mob Int: 562,055
Apps: 473,363
Mobad conversion:
Mob Int: 2.7 mil.
408,652
Mobad
conversion: 12%
Apps: 1.43 mil.
M-comm: 1.2 mil.
Mob Int.: 6.5%
Apps: 1.6 mil.
M-comm: 1.3 mil.
Total mobad
Apps: 3.11 mil. reach: 26%
Total mobad Apps: 4.1 mil.
reach: 2.12 mil. M-comm: 4.1 mil.

15. Out with the old

17. Smartphone market, 4Q11
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
-
iPhone Android BlackBerry Symbian Microsoft Others

18. United Kingdom of Android
858,916
7.5 million
Number of Android mobile internet
users in 4Q2011
338,611
1.39 mil.
1.06 mil.

19. 490,526
Android app users
781,225
6.8 million
Number of Android app users in
4Q2011
308,116
496,675
1.26 mil.
965,339

20. App users 2Q11
FEMALE
MALE
•Number of females using
apps has now overtaken
male usage
•The gender gap will now
start to widen, but...

21. Frequent downloader, Heavy downloader,
Frequent user Frequent user
App user trends 4Q11

22. How appealing are apps?
App users by region, 3Q2011
iPhone app users by region, 4Q2011
513,290
322,415
7.15 mil
Total iPhone users 4Q11 1.32 mil.
463,248 840,709

23. Mobile
Responsive browser,
mobile purchaser
advertising
Mobile ad conversion twice as
likely in males vs. females
Responsive browser,
PC purchaser
Total mobile advertising reach
reach by smartphone
Mobile advertising

24. Where is this all heading?

25. There’s money in this
M-commerce users by device
20,000,000
18,000,000
72%
of m-commerce users
16,000,000 on smartphones in
3Q2012
14,000,000
12,000,000 Non-smartphone
10,000,000 Other smartphones
Android
8,000,000
iPhone
6,000,000
4,000,000
2,000,000
16.3 million
Users of m-commerce in 4Q2011
-
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
10.2 million
Users of m-commerce in 3Q2012

26. Male vs. female adoption FEMALE
CONSUMER ADOPTION
MALE
MOBILE INTERNET
Service adoption delay
MOBILE COMMERCE
4Q2011
TIME

27. Central, 4Q11
Mobile internet – 3.69 mil.
1200000
1000000
800000
600000
400000
200000
0
iPhone Android Other
App users – 3.11 mil. M-commerce – 2.5 mil.
1200000 700000
1000000 600000
500000
800000
400000
600000 300000
400000 200000
200000 100000
0
0
iPhone Android Other
iPhone Android Other

28. Central, 4Q11
Mobile internet – 3.69 mil.
50.1% female / 49.9% male
18-24 – 282,016
35-44 - 416,573
55-64 – 346,530
App users – 3.11 mil.
M-commerce – 2.5 mil.
51% female / 49% male
Male – 1,323,051
25-34 – 659,529 total Female – 1,063,647
25-34 – 330,424 female
25-34 – 329,105 male 18-24 – 500,493

29. Conclusion
Internet and apps comparable in mobile usage
Males more receptive to mobile advertising
Android on a march, but
Greater interaction/engagement on iPhone
Smartphones to overtake featurephones in 2012
Growth will only accelerate
Nick Lane
Chief strategy analyst
mobileSQUARED
nick@mobilesquared.co.uk
+44 118 977 6902
Source: Mobile Consumer Trends, in association with