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2. Table of conTenTs
2 overview
4 smartphone living
18 smartphone Marketing
28 smartphone futures
32 conclusions
3. overvIew
In an increasingly mobile world, the smartphone has become a lifestyle-
changing device.
The smartphone is the first device to provide instant access to the internet and
online information resources wherever consumers go. Time-starved consumers
say that smartphones improve their quality of life by allowing them to multitask
on-the-move.
for marketers, this creates a new opportunity to maintain contact with consumers
throughout the day and influence purchase decisions in ways never before possible.
universal Mccann and aol partnered with Questus, a leading interactive marketing
and research firm, to conduct an extensive multi-phase research project examining
how smartphones are influencing american lifestyles and media consumption. This
research report analyzes the intersection between consumer media usage, lifestyle
and purchase preferences.
5. The sTudy: lIvIng • MarkeTIng • fuTures
270MM
US mobile subscribers
63MM web
access mobile
19MM web
access mobile
on weekly basis
5
Whom did We speak With?
approximately 1800 participants were selected for this study based upon their frequent use of
smartphone devices, with nearly all participants indicating they access the mobile web at least
several times per week. the study also included a sample of “lead users,” who were asked to keep
daily usage diaries.
6. 1 of every 7
MInuTes of MedIa
consuMpTIon 14%
Today Is Through a
MobIle
devIce
‘ MobileIt’s a social
is not
hype.
transformation.
,
12 6
it’s more than mobile
the smartphone is considered a great convenience for many americans, enabling them to
access internet content, applications and services anywhere and anytime and to have a constant
link with their social circles. it’s more than a medium of transmission; it’s the preeminent tool for
both social communication and daily life management.
7. of sMarTphone users
reporT saTIsfacTIon
usIng The InTerneT
on TheIr MobIle
devIces
7
the smartphone is the biggest technology shift since broadband, representing a truly
lifestyle-changing innovation. Consumers enjoy their smartphones and how they improve
their quality of life.
8. mobile is perCeived as
cuTTIng-edge MedIa
& assoCiated With being
acTIve, TIMely
& currenT
Cutting Edge Boring
Innovative
Newspaper
Mobile Old- fashioned
Cool Active
Timely Trustworthy Credible
Computer Browser
Current Important
Vital Informative
Fun Relevant Radio
Exciting for me Powerful
Influential
Magazine Passive
TV
Entertaining
Relaxing
8
hoW they feel
When study respondents were asked to associate certain attributes with various channels, mobile was
highly distinctive with a virtual monopoly of leading edge media concepts.
9. Users are constantly
CheCking in With
MobIle MedIa.
When Will they interaCt
wITh your brand?
95%
Other downtime
82% 81%
At work While shopping 80%
At home
65% to work
Commuting
9
Constant ContaCt
smartphones have enabled americans to consume media throughout their daily routines, with 82% using
mobile devices at work and 81% using mobile devices while shopping. the mobile web has also become a
ritual with commuters, who use the mobile web as part of their workday commute.
this creates an unprecedented opportunity for marketers to transition with consumers as they move from
activity to activity throughout the day.
10. BrIeF HIts oF 3%
connecTIon 7
& UtIlIty are cUrrently o ns
tHe Most PoPUlar ForMs oF e cti
Dir
consuMpTIon Ma
ps
&
5%
5
i ng
ork
Ne
tw
55%
c ial
So s
w
vie
/ Re
Lis
ti n gs
44%
ovie
/M
rants I nfo
s tau w s&
Re Ne
ati
on
al
34%
N
I nfo
ss
Bu
s ine
33%
o
l Inf
ve
Tra % use mobile to access
corresponding media
10
smartphones serve as a consumer’s devices to share experiences another, as well as a
Consumers rely on their mobile compass to get from one place towith their friends, guide
to restaurants, shopping purchases, news and entertainment. at the same time, they provide an
family and colleagues.
important social outlet.
over three out of every four smartphone users are sharing photos, articles and videos across
their social networks.
11. MoBIle oFFers
anoTher ouTleT 85% taken on
send photos
to connect & their Smartphones
share (Average: 16/mo.)
71% and
send articles
videos to others
(Average: 13/mo.)
74 % 50%
prefer sending text
use mobile social
messages to calling
networking sites
and apps
11
Consumers rely heavily on their mobile devices to share experiences with their friends,
family and colleagues.
the majority of all surveyed smartphone users share photos, articles and videos with their
social contacts using their mobile devices.
smartphones also enable consumers to stay off the phone, with half of all users
preferring text messages to telephone conversations.
12. sHarIng content
is key to the
aTTracTIon
...when the kids come
home, my husband will
I shared content
laugh at us because we’ll
with my friend
be huddled together on the
over lunch, as we
couch, each with his or her
were checking
respective iPhone, sharing
the market.
apps,YouTubes, music, etc.
It bridges a social gap.
I view drug information
on my mobile in the
morning and discuss
it with my partner and
clinical professor at
nursing school.
12 12
13. MobIle Is noT a sTandalone MedIa source.
77 % 55% follow brands
across multiple
use TV and media
mobile concurrently
42% have mobile to
from
been driven
other media
56%
have been driven
to mobile via
other media
“MedIa MesHIng”
Is a powerful 37% media mesh with
complimentary
coMPonent oF tHe content
experIence
13
boundaryless media
smartphones work powerfully with other media. for example, mobile drives consumers to other
media, which also drive consumers back to mobile – generating a circuit of juxtaposed mediation.
this effect is enhanced when users simultaneously consume multiple media in order to optimize
productivity or enrich the content experience.
14. MedIa MesHIng
fills the time Waiting for
slow-loadIng conTenT
whIle fulfIllIng
InsaTIable user hunger I can’t get
for conTenT enough sports
information. Yesterday, I
was looking at espn.com
on my phone, reading
the sports section and
watching pro football
on TV at the
same time.
I will flip through
a magazine while
surfing on my
phone, using it to
pass the time while
the pages load.
I have a slow
connection on the
phone, so I watch
TV while pages
download.
12 14
Consumers rely on their mobile devices to share experiences with their friends,
family and colleagues.
over three out of every four smartphone users are sharing photos, articles and videos across
their social networks.
15. iPHone Users HaVe
HeaVIer consUMPtIon
habITs
Mobile Social Networking
Concurrent TV Usage
55%
iPhone 50%
M-Commerce iPhone
37% 36%
Others iPhone 34%
Others
19%
Others
% use once or more per day % have made a % use once or more per day
purchase via mobile
15
Who’s using the mobile Web?
mobile trends are led by two groups: younger users and iphone owners.
high usage among iphone owners may be due to the fact that these consumers are often early
adopters and that the iphone interface is among the most sophisticated in terms of offering a rich
and rewarding user experience.
16. yoUnger deMo Has
HeaVIer consUMPtIon
habITs
Mobile Social Networking M-Commerce Concurrent TV Usage
13-17
67% 26% 55%
18-24
58% 30% 46%
AGE
25-34 45% 24% 42%
35-44 29% 21% 28%
45-64
14% 15% 20%
% use once or more per day % have made a % use once or more per day
purchase via mobile
16
not surprisingly, users aged 13 to 24 – those raised on the web and mobile communications – are
among those with the heaviest consumption habits, using their smartphones for social interaction
and often in front of the television.
18. Brands HaVe a coMPellIng
oPPortUnIty to engage 6%
Listening to radio
WItH Users In tHe
MobIle arena
27%
Using mobile
web & apps
17%
13% Reading a magazine
Watching television
33% 19%
Using web on Reading the newspaper
computer
% completely focused
19
getting their attention
While the broader media environment is typically full of noise and distraction, consumers report
being surprisingly focused when using the mobile internet.
this finding is significant to marketers seeking to compete with external distractions and engage
consumers in a meaningful way.
19. It’s pretty amazing
I feel grateful how focused I am
when I’m using the when I use my iPhone.
mobile web. Rather The screen is tiny but I
than wasting time, can completely ignore
I can take care of the world around me
my family. when I’m using my The word I
favorite apps. use to describe
my state of mind
when using the
mobile web is
CURIOUS.
Users are In a PrIMed
eMoTIonal sTaTe.
sIMPly UsIng tHeIr deVIce
creaTes feelIngs
oF aPPrecIatIon &
curIosITy.
20
Consumers rely on their mobile devices to share experiences with their friends,
family and colleagues.
over three out of every four smartphone users are sharing photos, articles and videos across
their social networks.
20. More tHan a tHIrd (38%)
oF consUMers HaVe
taKen actIon FroM a
MobIle ad
Of those who have taken action...
53%
Click on the ad
35%
Opt-in for email
with more info/ 34% 32%
coupons Make purchases Opt-in for text
via computer or
in-store
message with more
info/coupons 24%
Made purchases
via mobile
7%
Other
21
ads and aCtion
mobile offers brands the opportunity to reach consumers in new places and new ways, and mobile
users report acceptance and even appreciation of mobile advertising. in fact, over one-third of
smartphone consumers report having taken action from a mobile ad.
smartphone users are clicking on advertisements (53%), requesting more information or a coupon (35%),
and making purchases via their smartphones (24%).
21. MoBIle adVertIsIng Is
BegInnIng to
drIVe consUMer
behavIor
More than 1 in 5 have had a mobile ad...
29% 22% 21%
Lead them to share info Influence a purchase Create product awareness
22
mobile advertising provides multiple routes to brand building, both viral and direct.
smartphones serve as both the engine and the vehicle for sharing product information.
users also report that mobile advertising is capable of influencing their purchase behavior
and brand awareness.
22. WHIle Most Users
PUrcHase IteMs 44%
For tHeIr deVIce, Purchases for my
coMforT
mobile (e.g., apps)
Is groWIng For otHer
purchases
24%
Other purchases
% have done via mobile...
23
significantly, nearly one of every four smartphone users has made a purchase of non device-
related products or services from their phones – indicating growing comfort with the medium
as a shopping tool.
23. MoBIle MedIa lets yoU
Influence consuMers
as They shop
I LOVE being able to
look up recipes while
grocery shopping.
As an avid shopper,
having the ability
to compare prices of
products while out
81 %
Use their phones to
shopping is awesome.
research products
they are considering
81 %
Use their phones
while shopping
24
smartphones offer marketers unique opportunities to influence consumers at the very
moment they are considering purchase decisions and comparing prices.
24. opporTunITy Unlike traditional coupons,
males and younger users have
to inCentivize the highest degree of interest.
and reward
a brand’s user base
74 %
71 %
76 %
73 %
75 %
62% 75 %
79 %
% of sample who would consider redeeming coupons via mobile
25
mobile motivation
mobile also provides a new and perhaps the ideal platform for distributing online coupons, a
notion that appeals to nearly 3/4 of all smartphone users.
surprisingly, the study showed that males are the most open to this mode of couponing. also
unexpected was the high percentage of young consumers open to this activity – with 25 to 34
year-olds representing the age group most interested in mobile coupons.
25. Users KnoW a
seIsMIc sHIFt
In adVertIsIng
Is coMIng &
tHey are eXcIted
aBoUt It It’s not just about
screaming a message
at me anymore. It’s about
I have a Bank of providing value and that, to
America app. Every time me, is so much better than
I use my phone, I see the trying to influence me
icon. When I need account by interrupting my
information, it’s just a click favorite TV shows.
away. I don’t know if that is
advertising, per se, but it
makes me feel better
about my bank.
26
27. dIgItal and 60
%
In PartIcUlar
}
MobIle
Is antIcIPated to
p
du
ate rs
tici ea
t an in 2 y
sag
e
{ N e
%
conTInue growIng
E
33
BIL
MO
ER
P UT
COM
%
TV
-4
%
DIO
-5 ORE
OFT
EN
0%
M
RA CH
-2
MU
ES
zIN
MA
gA
S -30%
PER
S PA E
NEW E SAM
U T TH
ABO
N
FTE
ESSO
C HL
MU
29
Continual groWth
six of every 10 smartphone users surveyed expect their mobile internet usage to increase significantly over
the next two years and to become an even more integral part of their lifestyles. this growing reliance on
mobile internet is a signal to smart marketers that they need to have a presence on mobile touchpoints.
28. MoBIle transactIons
WIll contInUe to fs
to re
BecoMe coMMon so
es
dr
pracTIce as arc
hf
or
ad
ie
tim
es
ei
ns
tore
secUrIty concerns are Se v n t il
mo ura wh
addressed
%
95 Chec cts
k ta
res du
% for pr
o
94 a rch for
Se es ht
% p ric flig
93 mpare a plane
%
Co for
n
86 ec
k-i
Ch
% s
82 cou
p on
s
e m
ti on
de rva ce
Re se ala
n
l re
%
74
b
e nt
rav co
u
et c
Ma
k
c ka nts
he u
% co
67
C
% ac
73 ls etw
ee
n
il b
yb ey
Pa n
% mo
58
r
n sfe ck
%
Tra es
to
55 h as
/p
urc • Utilitarian tasks
%
Se
ll • Banking
41
% have done or would consider doing via mobile
30
as usage expands, so will consumer confidence in the security of the mobile web for privacy-sensitive
tasks such as banking.
this is clearly an area where merchants have an opportunity to reassure and woo customers with
appropriate messaging and protective features.
29. sPeed and coMPatIBIlty
are The rIchesT
areas for rapId
IMproveMenT
Timeliness Ease of use
Quality of content
Organization of sites
Appearance of sites
Speed of downloading text
Quality of video
PERFORMANCE
Quality of brands
Amount of video
Cost of access
Speed of video Speed of downloading images
Number of ads
Number of mobile formated sites
Size of ads
DERIVED IMPORTANCE
31
smartphone users are reaching for their devices to help answer unmet needs and will increasingly
do so as speed and compatibility issues are resolved. services that don’t have dedicated mobile
formats are going to miss out on this significant shift in consumption.
30. concoMITanT MarkeTIng: MeshIng:
The Smartphone represents the first marketing Smartphones are the
channel for marketers to move with and message ultimate media meshing
consumers everywhere they go. Mobile is less tool, with consumers
about “wireless online” and increasingly a highly simultaneously consuming
personal and customized medium. media on multiple screens
and utilizing their Smart-
phones to enhance their
TV viewing experience.
accepTance:
The Smartphone is improving
Influencer vehIcle: consumers’ quality of life.
Mobile is perceived as cool, active They appreciate marketers who
and timely – the attributes of a vibrant sponsor their mobile experiences. They
brand that is positioned for growth and viral want advertising that is appropriate for their
adoption. Mobile advertising provides an opportunity frame of mind and passions. They understand
to reach trendsetters and make a lasting impression the role that advertising plays in providing free
on the influencers who are a key audience to any content and prefer advertising that delivers
brand’s success. more relevant messages to them.
32
31. InITIaTIve coMMIssIoned by
aol and unIversal Mccann
abouT uM
um is a global media communications agency that represents the world’s leading marketers and strategic thinkers including
Coca-Cola, exxonmobil, Johnson & Johnson, masterCard, microsoft, sony, bacardi, l’oreal and ups. part of the interpublic group
of Companies (ipg), um has roughly 169 offices in 130 countries and more than 3,600 employees with headquarters in new york.
um provides a full spectrum of media services including media and communications planning, digital strategy consultation,
analytics and economic modeling, research and consumer insight. the company’s mission is to deliver Curious minds for
surprising results.
abouT aol
aol is a global Web services company that operates some of the most popular Web destinations, offers a comprehensive suite
of free software and services, runs one of the largest internet access businesses in the u.s., and provides a full set of advertising
solutions. a majority-owned subsidiary of time Warner inc., aol llC and its subsidiaries have operations in the u.s., europe,
Canada and asia. learn more at aol.com.
32. The TeaM
graeme hutton, karen ring, maggie fosdick and ali ponce de leon, universal mcCann
stu rodnick and maria pousa, aol
special thanks to the 360 Creative team at aol for
producing this booklet, agatha Chang from universal mcCann
and scott kelliher & stacey Comito from aol for their
mobile marketing expertise.
33. researCh inquiries Can be direCted to:
graeme hutton
director of Consumer insights, um
tel: 646.865.3437
email: graeme.hutton@umww.com
stu rodnick
senior director strategic insights, aol
tel: 917.534.5069
email: stu.rodnick@corp.aol.com