Mobile Experience Study 2013


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Mobile Experience Study 2013 - Identifies four ‘native mobile experiences’ - building blocks for more successful mobile advertising strategies

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Mobile Experience Study 2013

  2. 2. Nokia 9000 1996 ‘Smart’ phone Nokia 7110 1999 WAP Nokia 8210 1999 Nokia 3210 1999 Internal antenna & vibrate function Nokia 5110 1998 Interchangeable faceplates Motorola 4500X 1988 Motorola DynaTAC 1983 First cellphone IBM Simon 1993 Phone & PDA combination Nokia 1011 1992 Mass-produced GSM phone Motorola MicroTAC 1989 Pocket sized 1234567 Nokia 7280 2004 The ‘lipstick’ phone Blackberry Quark 2003 Blackberry 5810 2002 Ericsson T68 2003 Motorola Razr 2003 Sleek looks Nokia 3330 2001 Sold 120 million handsets globally LG U8138 2004 Video mobile network launched HTC Kaiser 2007 HTC Dream 2008 Android OS iPhone 2007 iOS iPhone 4 2010 Blackberry Curve 2009 Samsung F210 2007
  3. 3. Why is the mobile experience so important? Mobile advertising. It’s one of the most elusive opportunities of our current age. Every single industry estimate, including our own, recognizes the ever- widening delta between explosive mobile usage and the current level of advertising. Estimates easily range in the billions. Why can’t we, as a marketing industry, figure this out? It’s a complex problem to solve, with many barriers created by the industry itself, such as the need for better KPIs for marketers to measure and justify ROI. So, in order to find out more about how consumers are using their mobiles, and how advertising fits into that experience, we undertook a complete rethink. In our latest study we have used our proprietary panel of consumers to study smartphone use in a range of countries in a bid to understand the most relevant and productive ways to reach people on their mobile. Samsung SGH M100 2000 MP3 Player Ericsson T39 2001 Bluetooth Sharp J-SH04 2000 Fully integrated camera and colour screen Nokia 8110 1996 Featured in ‘The Matrix’ Motorola StarTAC 1996 Clamshell Ericsson GF 768 1998 Samsung SGH-X460 2006 Nokia N95 2006 5 megapixel camera HTC HD7 2010 Windows 7 OS iPhone 5 2012 Samsung Galaxy S4 2013 4G
  4. 4. South Korea 68% Sweden 58% UK 55% Australia 54% US 50% Canada 49% France 46% Germany 46% China 26% Range of markets by smartphone penetration 2013 projected smartphone penetration, Strategy Analytics
  5. 5. Mapping a global experience The mobile experience worldwide is extremely diverse and complex. We needed to fully understand how the mobile experience was different and how it was common across a wide variety of markets – 13 in total – speaking to 1000 smartphone users in each. We chose the markets according to smartphone penetration. We had very high penetration markets like South Korea and Sweden, but we also had markets that were just emerging as enthusiastic smartphone users like India. However, in interpreting what we saw we also needed to take into account significant legislative, structural, and cultural considerations in each market, for example: 1. The proportion of early adopters (in India, nearly the entire sample) show enthusiastic participation across a wide range of activities, which will decline as penetration grows. 2. Brazil smartphone users, in spite of strong penetration and predisposition, have not become enthusiastic mobile shoppers due to the unreliability of the mobile network services. 3. Chinese mobile habits have definitely been shaped by popular home-grown web institutions, like Weibo, and the mobile payment system, Alipay. Italy 41% Russia 23% Brazil 23% India 5%
  6. 6. 51% 52% 60% 61% 63% 66% 67% Branded emails Short code texts TEXT‘VOTE’ TO6332 Branded texts Video ads Branded apps Mobile banner ads Mobile search ads Clickthroughs/Downloads/Interactions with touchpoints Initiative’s Mobile Experience Study, March 2013. All Markets.
  7. 7. The rise of the ‘Native Mobile Experience’ As marketers we’re often guilty of applying tried and true methodologies and best practices from one medium to another. This is certainly true of mobile – the mobile banner being the classic case. Mobile, however, is so specific and so unique that we believe that ‘tried and true’ is being surpassed in effectiveness by ‘native mobile experiences’ – activities and touchpoints that can only happen on mobile. When we aggregate our engagement metrics for all 13 markets (clickthroughs/downloads/ interactions) across a wide variety of mobile touchpoints, we see that mobile banners fall far away from the most engaging. The top performers are, simply put, touchpoints that don’t occur anywhere else but mobile – QR codes, mobile websites, branded applications. Namely, native mobile experiences. But where and how should these native mobile experiences help marketers? 69% 71% 73% 74% Voucher codes QR codes Brand mobile websites Brand social media sites
  8. 8. What each mobile touchpoint is good at Initiative’s Mobile Experience Study, March 2013. All Markets. Ad on a website accessed via mobile Branded text/picture message Branded email received on mobile Advertising/informational video via mobile Brand’s mobile website Brand’s social media site via mobile Audio recognition service (eg: Shazam) QR code to access website Tapping your phone (NFC) to access website Ad on a microblog (eg: Twitter) Texting a word to a short number Voucher code/coupon accessed via mobile Ad on a search engine Ad within radio show/music service Branded downloads (eg: apps, games) Ad within a game on a mobile phone Ad seen pre/post a video on a mobile phone Fullscreen ad in an app Information/deals via augmented reality PurchaseSharingAdvocacy 9% 14% 19%
  9. 9. The funnel conundrum The other problem we have is that we are thinking of mobile in terms of another old model – the ‘funnel’. We asked consumers what each existing mobile touchpoint was best at – from awareness, to liking a brand, to helping them buy. Currently, mobile touchpoints are outperforming in awareness and purchase but dropping off significantly in the deeper emotional connections of delivering likeability and advocacy. Why should this worry us? Simply put, consumers are deeply attached to their mobile phones. We conducted qualitative research groups across four very different markets and discovered that people treasure and depend upon their smartphones in the same way for the same reason: it makes their lives easier. So why is mobile advertising so functional? Is the state of mobile advertising the result of a self-fulfilling prophecy, in that marketers have simply not delivered truly engaging mobile experiences? We believe that there are strategies that marketers can pursue to deliver these deeper emotional experiences – those experiences that deepen familiarity and advocacy for a brand. We have four key strategies: 1. Remember, it’s a phone. 2. Embrace the new mobile mindsets. 3. Help people live in the here and now. 4. Mobile browsing is the ‘missing link’. AwarenessInformationLikeability 24% 29%
  10. 10. High penetration smartphone markets lead social behavio Initiative’s Mobile Experience Study, March 2013. South Korea, Sweden, Italy, UK, Australia. % of time spent on each device by activity Initiative’s Mobile Experience Study, March 2013. All markets. Connecting Being entertained Gathering 58% 37% 5% 25% 68% 7% 19% 74% IM / Text Social networks Email 79% 18% 3% 41% 51% 8% 32% 62%
  11. 11. 1. Remember, it’s a phone The first and perhaps most obvious native mobile experience is centered on the fact that the mobile is, after all, a phone. We as marketers have tried to come up with various metaphors for what the smartphone represents for people: it’s a wrist watch, it’s a fourth screen, or it’s a personal assistant. It is, in fact, all of these – but we often forget that what drives the success of the smartphone is its ability to connect us with the people in our lives. What’s most striking about this is how people across all 13 surveyed markets are transferring their digital social behaviors – as well as live conversation – to the smartphone, away from laptops and emerging tablet behaviors. When consumers look to be entertained, they turn to their smartphone 25% of the time. However, when connecting with other people digitally, smartphone usage rises to 58%. Connecting and smartphones are made for each other. What is remarkable about this trend is how much the ability for the smartphone to deliver instant communications has really migrated social behavior. When we look at the top five smartphone penetration markets, we see how texting and instant messaging are leading the migration of other social behaviors, such as social networking and email. ors info Shopping % 7% 15% 80% 5% % 6%
  12. 12. 0% 10% 20% 30% 40% 50% 60% 70% 80% Just woken up While traveling to work/school During work/school (not a break or lunchtime) During lunchtime or a break While travelin from work/ Activity throughout the day Initiative’s Mobile Experience Study, March 2013. All markets.
  13. 13. It’s a frequency game The mass migration of online social behaviors to the smartphone is the sheer frequency with which it happens. When we look at the daily patterns of connecting on smartphone vs. entertainment, the next most popular activity, connecting happens constantly throughout the day, only giving way to entertaining during the evening when relaxing at home. It’s also a compulsion that crosses demographics. When we look at both age and gender, the compulsion to constantly check all day every day (via IM, email, status updates) crosses all ages. However, there are no huge surprises in the frequency with which the different age groups carry out these functions: 18-24 year olds are most active – particularly on IM (71% check several times a day) – 45-54 year olds the least so (though 62% still check their emails several times a day) with the 25-34 and 35-44 groups decreasing at a proportional rate between the oldest and youngest groups. ng home /school While relaxing at home Just before bedtime Being entertainedConnecting
  14. 14. Check out my new sh Applications Shopping Gaming 71% have a branded social application 25% 67% use it daily 49% check it several times a day Social applications are the ‘stickiest’ Initiative’s Mobile Experience Study, March 2013. All markets.
  15. 15. A wider social circle This compulsion to connect via the smartphone has become so crucial to marketers because the effect of social networks, enhanced by the smartphone, has been to materially increase the size of the average circle of friends. In our 2012 study, The Age of Social Influence, we proved that consumers have contact with a wide variety of people – some of whom they have never met. Our updated statistics here show that in fact smartphone users across our markets have an average social circle of 52 people whom they talk to on a regular basis, either face-to-face or online, including 13 whom they have never met. Simply put, everything is more successful when seen through a social lens, thanks to the huge benefit of word-of-mouth. Social applications are by far the most popular of all branded smartphone apps, and the ‘stickiest’, with nearly everyone who has one on their phone checking it daily and half of those doing so several times a day. The rise of social gaming has increased dramatically with the aid of the smartphone while social shopping is reaching significant penetration rates: one quarter of consumers regularly post what they are buying and the same number take pictures to share with their friends. Key learning Everything we do must allow people to connect with their friends and family as frequently as possible, via as many touchpoints as possible. hoes! SHARE 44% play games at least once a day (both solo and social) % regularly post updates or comments on what they are buying 26% will regularly take a picture to share with their friends 36% are played with someone else (social gaming)
  16. 16. Viewing and sharing video while passing the time Initiative’s Mobile Experience Study, March 2013. All markets. 34% 39% 30% 28% 28% 24% Global Uploaded or shared video while passing the time Watched video while passing the time North America EMEA 82%view to share conversion globally
  17. 17. 2. Embrace the new mobile mindsets The second native mobile experience is the emergence of two new mindsets that produce the highest relevance and openness to advertising that we’ve seen through the smartphone. First, there’s boredom The first one – and we’ve all been there – is boredom. What’s the first thing we do when we’re bored and need to pass the time? Across all 13 of our markets, almost uniformly, we connect with other people, through social networking, gaming or texting. On average, 40% of global respondents turn to social networks, gaming or text/IM when bored. However, what’s truly wonderful is what happens next. It’s during this mindset that people are most likely to download or view content and, most importantly, when they are most likely to download or view video. So – people are bored, they use their smartphone to socialize, see some great content…and then what happens? It’s also during this mindset that people share the most content – again the most significant sharing happens for video. People are most likely to upload and share video when they are bored or need to pass the time. In fact this behavior has nearly doubled since the last time we looked at it in 2010. Boredom leads to people telling your brand story for you, across their social circle. 25% 40% 19% 34% LATAM APAC
  18. 18. 22% 54% 85%of all viewers talk about TV shows of all viewers talk about TV shows online of all viewers talk about TV shows online more than once a week Multitasking with mobile is a benefit to brands Initiative’s The New Power of TV, November, 2012. All markets.
  19. 19. Second, there’s multitasking As an industry, we’ve often thought multitasking detracts people’s full attention from ads. Smartphones are now the main facilitator of multitasking, and we think that’s a good thing. We asked people from all 13 countries surveyed what they are doing when they turn to their smartphone as a multitasking tool. The three most prevalent activities were watching TV (56%), commuting (54%) and listening to radio (53%): not, coincidentally, all paid media. But here’s the good news: multitasking is a great opportunity to connect the sociability of mobile with brand advertising. In Initiative’s The New Power of Television: How Social is Revitalizing the Future of TV, we talked about a new breed of young consumers, identified as the TV Talker, who use social media to discuss traditional mediums, such as TV shows and ads. Far from detracting from television viewing, social media has actually enhanced TV, as people take to the internet (usually via their phones) to talk about TV shows (54%) with 22% doing so more than once a week. Of those people 58% discuss brand ads online – music to the ears of marketers. That’s how brand stories get told. And it starts with having your phone on all the time. Key learning The two mindsets that we’ve always thought of as negatives – boredom and multitasking – are actually incredible opportunities for marketers. Targeting these mindsets will directly amplify the already social nature of the smartphone. 58% of TV Talkers will talk about brand ads TV Talkers
  20. 20. At least once a day, I use my smartphone to... Initiative’s Mobile Experience Study, March 2013. All markets. 76% 69% 21% 19% IM / Text Update Status Post Video Post Photos
  21. 21. 3. Living in the here and now One of the most anticipated areas of improvement that smartphones can bring to consumers’ lives is the increase in productivity and the ability to truly live mobile. We have certainly seen that happen, with the mobile’s impact on journalism, for example. However, we believe that the power of the here and now has the potential to be a rich native mobile experience for marketers. There is an app for that, but is it ‘sticky’? The first and most obvious area of study would be applications. Many of us have over 40 applications on our smartphone, but use 15 or less on a weekly basis. Our study showed, not surprisingly, that the most popular and ‘sticky’ applications are social. That’s followed in popularity by banking and shopping. The ever-increasing use of social apps is giving way to living in the here and now and the emergence of ‘live reporting’. Smartphones are increasingly allowing people to report, in the moment, what’s going on in their lives. Whether it’s texting – by far the largest activity – or complex actions like posting video or photos, we are being the ‘live reporter’ at least once a day. Where we think this has tremendous potential for marketers is in building on the previous two strategies – be as connected as possible, during the mindsets of boredom and multitasking. 15% Check-in
  22. 22. Before watching the show 31% During the commercial break 36% During the show 43% wa When people post online about a TV show Initiative’s The New Power of TV, November, 2012. All markets.
  23. 23. Initiative’s The New Power of Television: How Social is Revitalizing the Future of TV, also shows how smartphones are helping TV become more social. That study showed how TV Talkers have transformed the TV broadcast, and in this project we have tracked when and how they approach the program as an event. There is plenty of posting before and after the show, but crucially online conversation peaks during the show, driving a return to live viewing. And how do TV Talkers prefer to chat? Social networks through the computer still rule (64% say they post this way about a TV show) but are quickly being overtaken by – you guessed it – posting through smartphones (34% text, 23% use IM and 33% hold mobile phone conversations). In fact, this group is starting to prefer using their mobile phones as it allows them to maintain several conversations at once, and to share different kinds of content with different people. Key Learning Use the smartphone’s ‘live reporting’ strengths to create in-the-moment social surges – starting with TV, when people are multitasking across their social circles. Directly after atching the show 39% Sometime later after watching the show 37%
  24. 24. 91% 66% 91% 65% 88% 63% Highest mobile shopping categories Highest mobile browsing categories Clothing Groceries Home electronics Mobile phones Highest and lowest mobile browsing/shopping countries % likely to browse and/or shop. Initiative’s Mobile Experience Study, March 2013. All Markets. Mobile browsing/shopping categories Initiative’s Mobile Experience Study, March 2013. All Markets.
  25. 25. 4. Mobile browsing is the ‘missing link’ The fourth and final native mobile experience that we found is what we call the ‘missing link’ — the role of the smartphone in shopping behavior. We call it the missing link because the mobile phone is the only touchpoint that connects what happens before people go in store to the moment of purchase. We measured the effect of mobile shopping behavior in 23 different categories across 13 markets. Naturally there is much variation across all those categories and markets, but we undertook extensive analysis to really understand in aggregate what was happening. We found that as mobile browsing accelerated as a behavior, the ability of the smartphone to act as the closer for the final sale also increased. In other words, the more you browse on mobile, the more you shop on mobile. This is highly variable across our 13 markets: Asia leads the world in mobile browsing and shopping, while consumers in European countries are slower to adopt these trends, so are typically less active in mobile shopping. Likewise, particular categories are far more likely to be high for mobile browsing – generally in those sectors where applications are the most popular – but the categories can vary considerably by market, with a high percentage of early adopters skewing current behavior. High mobile browsing and shopping conversion is driven by countries and groups that use the mobile web heavily, use branded mobile sites, are more likely to use branded shopping applications and, of course, are more advertising responsive. 67% 29% 64% 29% Applications Books Music Clothing
  26. 26. Relaxing at home 52%shop on their smartphone while relaxing at home 50%watch videos while they are relaxing at home 47%share videos while they are relaxing at home Smartphone shopping Watching paid media Make the most of the ‘Relaxing at home’ context Initiative’s Mobile Experience Study, March 2013. All Markets.
  27. 27. How can marketers drive more mobile browsing and shopping? Mobile shopping isn’t that mobile – in fact, much of it is done at home. While a lot of shopping is done via mobile, more than half is actually done while people are relaxing at home, usually in the evening. What’s excellent news for marketers is how this extremely valuable time allows them to connect the mobile browsing and shopping experience to the other three native mobile experiences outlined in this study. This is the perfect environment for brands to promote content, benefit from social influence and tap into real shopping behaviors. At home a brand can link experiences to really build a relationship with the consumer and express its brand personality. This is critical because when it comes to in- store the game changes entirely. Smartphones are used at that point to validate and to close the deal. The brand communications are entirely focused on rational short term decision- making. Use of QR codes, accessible only via smartphones, is now heavily involved in smartphone shopping (39%), while comparison sites and coupon/voucher sites are used in 30% of cases. Price comparison sites are used the same amount, with 29% of people using their smartphone to read about the product online, and 27% to read a product review. 42%check product reviews 40%use price comparisons 40%check product specifications 50%use social networks while they are relaxing at home 51%text while they are relaxing at home Mobile browsing Constantly connecting
  28. 28. Research and comparison is important for all categories Mobile activity index. Initiative’s Mobile Experience Study, March 2013. All Markets. 136 149 136 118 150 129 167 167 121 77 31 40 29 67 72 69 88 72 80 79 62 82 88 88 93 114 128 128 Research productActivity Compare prices Take a photo to send Take a photo for self Call/text for opinion Refer to list Use coupon Automotive Each category has unique areas where mobile is used in the shopping process
  29. 29. While our research shows that home is the most popular place to shop and research, in-store research and price comparison is also a big market. In fact, almost half of all research and price comparison happens in-store. Whilst research and price comparison are popular for all categories, mobile has particular strengths for individual categories, which marketers should play to. For example, ‘taking a photo to send’ indexes particularly highly for automotive versus the other categories and ‘recommend’ is strong for non-alcoholic beverages. Mobile browsing at home continues to be a vital way to build brand preference, but marketers should also bolster and monitor price comparison sites, product reviews and resources for product specifications closely to ensure the sale happens. Key Learning Make the most of the at-home browsing and shopping experience to drive brand preference, before the fight to close the deal. 149 84 96 98 51 46 48 59 96 103 123 108 114 159 151 157 Purchase item online Purchase item with phone (NFC) Post or share on social Recommend Music Non-alcoholic beverages Household cleaners
  30. 30. Help people connect as often as possible through as many ways as possible The four native mobile experiences we consider to be the building blocks for more successful mobile strategies: Embrace the new mobile mindsets and give them the right components of the brand story
  31. 31. 1. Social has to be an endemic strategy – but importantly, to get the most from it, marketers should embrace two distinct tactics. First, don’t just use one social outlet - use every means possible for people to spread the word, from texts to Facebook to check-ins. Second, social through mobile is a frequency game – make sure you constantly provide a constant stream of reasons for people to pass on your brand story. 2. Boredom and multitasking provide the moments of deepest receptivity – and the natural means to engage them through social (of course), video and gaming. Once you’ve got their engagement, give them two key ways to access your brand. First, make sure your content – video, games, promotions, are short form and easy to pass on. Then give them ways to access more information about your brand so they can tell the full brand story for you. 3. There are moments in every marketing plan when you can take full advantage of the ‘live reporting’ native mobile experience. Whether it’s an investment in a buzz- worthy TV integration or a live PR event, pre and post event are important, but if you do nothing else focus on mobile as the means to spike conversation live and create a brand event. 4. All three native mobile experiences culminate in one key moment that drives brand preference – using social, mobile dayparts and live reporting to drive mobile browsing at home. We seriously underestimate the power of mobile as a lean-back device that connects all of these elements that drive brand likeability – with a proven link to driving brand sales. Keep the mobile tactics that drive the final deal – price comparisons, reviews, product features – for closing the deal at shelf. Live in the now as a brand Mobile browsing is your ultimate goal
  32. 32. Methodology The Mobile Experience Study is part of Initiative’s Consumer Connections global research program which now spans in excess of 50 countries. To understand how consumers are using their mobile and the role it plays in their lives we first ran a series of in-depth discussions amongst 160 individuals covering UK, Brazil, China and India. These interviews then informed our quantitative study which covered a total of 13,000 smartphone users aged 18-54 in US, Canada, Brazil, UK, Sweden, France, Germany, Italy, Russia, India, China, South Korea and Australia. These countries were selected to represent markets at different stages of development in terms of mobile activity to provide a truly global view. About Initiative Initiative is a global communications network within IPG Mediabrands (NYSE: IPG) one of the world’s pre-eminent media services entities. We believe in four basic principles when solving our clients’ business challenges: fast, brave, decisive and simple. Fast and responsive to the changing world of business. Brave in tackling serious issues. Decisive with our insights, opinions and recommendations and committed to making marketing complexity simple. This approach is conveyed by our talented team, industry leading tools, processes and conduct. Initiative employs more than 2,500 creative and dynamic colleagues in 94 offices in 73 countries managing approximately $14 billion in billings annually. Our comprehensive range of communications services include: insight and strategy, analytics, media planning and buying, digital communications, branded content creation, evaluation and accountability services, social media strategy and community management. © Initiative 2013