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Youth Mobile Usage Around The World


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From texting to video to social networking, mobile phones are taking an ever-expanding role in our
daily lives. And young people around the world are more immersed in mobile technology than any
previous generation.

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Youth Mobile Usage Around The World

  1. 1. Mobile Youth Around the World December 2010
  2. 2. Overview From texting to video to social networking, mobile phones are taking an ever-expanding role in our daily lives. And young people around the world are more immersed in mobile technology than any previous generation. The Nielsen Company analyzes and tracks mobile usage in North America, Africa, Asia, Europe, Latin America, and the Middle East. In this report, we’ll highlight mobile youth data from Brazil, Russia, India, China, Vietnam, Germany, US, UK, Spain and Italy. Usage patterns vary greatly among youth throughout the world, demonstrating how culture, economy and age can all play a large part in mobile behavior. These factors affect device selection, payment and usage. Understanding whether behaviors are a function of age or other environmental factors can help marketers communicate more effectively with this key demographic through mobile services and devices. Italy has the highest smartphone penetration among youth 15-24;What kind of phones do smartphone users skew male everywhere but USyoung people use? Smartphone v. Feature Phone, 15-24 H1 2010Smartphone v. Feature PhoneOut of all the countries examined, Italy 53% 67% 64% 62%leads in smartphone penetration with 75% 71% 71% 90%47 percent of young people ages 15-24owning a smartphone, compared to 31 38% 47%percent of adults over 25. Smartphone 29% 29% 33% 36% 25% 10%penetration among European youth India Russia China Germany US UK Spain Italyaverages 28 percent in the countriessurveyed, while penetration among older Smartphone Feature Phoneadults in Europe is 27 percent. Gender of Smartphone Users, 15-24As of Q2 2010, 28 percent of US mobile H1 2010subscribers had smartphones. Youth inthe United States exceed the population 20% 34% 38% 39% 39% 43% 47%average smartphone penetration by 5 55%percent. 80%All countries tend to skew male in 66% 62% 61% 61% 57% 53% 45%smartphone adoption with one notableexception—the US, where 55 percent of India Germany Italy China Spain Russia UK USsmartphone users age 15-24 are female. Inthe overall US smartphone population, 55 Male Femalepercent were male. Source: H1 2010 Copyright © 2010 The Nielsen Company. 2
  3. 3. Multiple SIM Cards Italy is leading in multiple SIM usageOne distinguishing factor of the USversus other countries’ mobile behavior Multiple SIM usage, Age 15-24 H1 2010is multiple-SIM card usage. Outside theUnited States, it is not unusual for peopleto swap the SIM card in their phone inorder to take advantage of different tariffs 71%and lower cost in-network calling from 78% 79% 80% 84% 84% 85% 86%mobile carriers. Multiple SIM usage is evenmore common in Brazil, Russia, India andChina (BRIC) among youth, where adults25+ have a lower usage rate. In Europe, 29% 22% 21% 20%youths use multiple SIMs 9 percent less 16% 16% 15% 14%than the adult average. In terms of the Italy Brazil Russia Germany UK Spain India Chinamotivation behind having more than one Yes NoSIM, Italian youth claim their primaryreason is to take advantage of different Source: The Nielsen Companytariffs and free text messages. In China,young multiple SIM users are most likelyto do so because of the ability to have Young people choose their own mobile devicesdifferent numbers for different people.Some device manufacturers are taking 100% Person Responsible for Device Selectionadvantage of this trend by creating devices H1 2010that make it easy for consumers to insert 90%multiple SIMs into the same phone at the 80%same time. 70% 60%How did they choose 50%their device? 40%Person responsible for device 30%selection 20%An overwhelming majority of young 10%people throughout the world choosetheir own devices. Across the countries 0%surveyed, only 16 percent of young UK y ly n il ia a na US di an az ai ss Ita i Sp In Ch Br rm Rupeople’s parents chose their phone. Ge Self Parent(s) Employer Friend(s) Spouse/Partner/ Other Boyfriend/Girlfriend Source: The Nielsen CompanyCopyright © 2010 The Nielsen Company.3
  4. 4. Price is top ranked purchase driver in all countries Brazil Russia India 40% 31% 19% 10% 21% 18% 12% 12% 10% Design/Style Price Phone Brand/ Price Design/Style Form/Shape Price Battery Life Design/Style Previous Experience China US 14% 14% 22% 14% 10% 12% Form/Shape Price Design/Style Price QWERTY Design/Style input Source: The Nielsen CompanyPurchase Drivers Prepaid/Postpaid among youth is comparable to general populationPrice was the most common considerationin selecting a mobile phone for youngpeople, though that is true among Prepaid/Postpaid, Age 15-24other age groups, too. Adults in these H1 2010countries rated price the most important 2% 3% 10%consideration, too. Youth aged 15 to 24 15% 42% 43%put price as the first purchase driver, with 59% 60% 76%the exception of Russian youth, 21 percent 98% 97% 90% 85%of whom placed design/style first. Around14 percent of Brazilian adults say design/ 58% 57% 41% 40%style is the most important consideration, 24%compared to 7 percent of US adults. ia a il a ly y UK n US di in an az ai ss Ita In Ch Sp Br m Ru erHow do they pay for G Prepaid Postpaidtheir phones? Prepaid/Postpaid, Age 25+Prepaid v. postpaid H1 2010Prepaid, also commonly referred to as 2% 7% 13%“pay as you go,” is a method of payment 23% 33% 48%where mobile credit is bought before 59% 78% 81%the service is activated. Unlike postpaid 98% 93% 87%services, which are often contract based, 77% 67%the minutes people can talk are paid for 52% 41%prior to use and require minimal credit 22% 19%history. Outside the United States, ia a a il ly UK y n USprepaying for service is a common di in an az ai ss Ita Sp In Ch Br m Ru ermethod, often due to a lack of the Grequired infrastructure and ecosphere to Prepaid Postpaidtrack credit history. At 24 percent, young Source: The Nielsen Companypeople in the US are much less likely to Copyright © 2010 The Nielsen Company. 4
  5. 5. prepay than the emerging markets, whichall have prepaid rates over 85 percent. Personal payment increases 30% on average once teens move into young adulthoodThis data is consistent with the globaladult population, except postpaid as Pay for own mobile service, Age 15-19a majority tends to slightly increase in H1 2010the 25+ bracket, which may be a moresuitable age for a contractual agreement. 56% 56% 52% 47% 35%Person responsible for mobile 27% 25% 21%chargesPersonal payment for mobile chargesincreases as teens move into young Germany Brazil UK Russia India US Spain Italyadulthood. Across the countries surveyed,personal payment increases on averagethirty percent once mobile users exit their Pay for own mobile service, Age 20-24teen years. Germany and Brazil are tied H1 2010for the highest percentage of teens who 88% 84% 82%say they pay their own bill, while Italy has 80%the lowest. The US has the lowest rate 66% 65%of personal payment among ages 20-24, 54%with only 45 percent of youth in that age 45%bracket paying for their own service.How do they use their Russia Germany Brazil UK Spain Italy India USphones? Source: The Nielsen CompanyAdvanced data usage Chinese youth lead the way in advanced data usageYouth in China and the US lead the way Advanced Data Users, Age 15-24among young mobile subscribers who use H1 2010 Chart Titleadvanced data. Eighty-four percent of 3%Chinese youth use their phones beyond 2% 6% 6% 7% 10% 11% 14% 14%voice and text compared to 47 percent of 12% 27% 35%Chinese adults. Eighty-three percent of 26% 31% 32%US youth use advanced data, 32 percent 38% 48%higher than US adults. 84% 83% 51% 71% 68% 62% 58% 47% 40% 13% China US Russia UK Italy Spain Germany Brazil India Advanced Data User SMS/Voice user Voice-only user Source: The Nielsen CompanyCopyright © 2010 The Nielsen Company.5
  6. 6. Types of Advanced Data Usage Chinese youth lead in mobile internet usage, US top mobile e-mail usersAt 70 percent, young Chinese advanceddata users have a significantly higher Features used in the last 30 days, 15-24 73%mobile internet usage rate than the rest H1 2010of the world. In the UK and US, femaleshave at least a 10 percent higher rate of 47% 45% 48%messaging use than males. 33%33% 39% 39%39% 29% 29% 24% 26%26% 26% 23%Among European youth, those in the UK 19% 14%are more likely to use mobile internet, 5% 5% 6% 5% 5% 7% 4% 7% 2% 4% 3% 4%with over 20 percent more usage thanother European countries. China US Russia Brazil India Mobile Internet Ringtone Downloads Instant MessagingText and Picture Messaging Screensaver Downloads Game Downloads EmailMessaging tends to skew female in the Source: The Nielsen Companymajority of markets, except for a fewoutliers. Indian males are twice as likely as UK has over 20% more mobile internet users than other European countriesIndian females to use mobile messaging. Features used in the last 30 days, 15-24China also skews slightly male in both 46% H1 2010types of messaging, but only by a 4 25%23% 24%percent margin. In the UK and US, females 22% 16% 20% 15% 15% 14% 15% 15% 21% 12% 13% 11% 13%have at least a 10 percent higher rate than 11% 9% 9% 10% 6% 8% 10% 10% 9% 9% 10%males who use messaging services. UK Germany Italy Spain Mobile internet App Downloads Email Instant messaging Game downloads Screensaver/Wallpaper Downloads Ringtone downloads Source: The Nielsen Company SMS and MMS messaging generally skews female, except for China and India Messaging, Age 15-24 H1 2010 SMS Text Messaging MMS Picture Messaging China 48% China 48% 52% 52% India 30% India 18% 70% 82% Russia 50% Russia 49% 50% 51% Brazil 53% Brazil 49% 47% 51% Female US 55% US 59% Male 45% 41% Spain 52% Spain 50% 48% 50% Italy 51% Italy 52% 49% 48% 49% 60% Germany 51% Germany 40% UK 58% UK 63% 42% 37% Source: The Nielsen Company Copyright © 2010 The Nielsen Company. 6
  7. 7. Mobile Youth in Youth ages 15 to 24 make up 20% of population. Half subscribe to mobile services. Vietnam Populations Twenty percent of the Vietnamese population is between the ages of 15 Youth Market and 24, and half of these young people already use mobile services. 54% 48% Like their counterparts in other Current users >24 years old countries, young people in Vietnam use 20% more data than average. Nine percent 15-24 years old -24 of them access the mobile internet on a 35% Prospective users regular basis compared to 3 percent of 26% all Vietnamese mobile users. Eighteen 17% Non-users <15 years old percent use multimedia services, too, compared to 7 percent of Vietnamese Source: The Nielsen Company mobile users of all ages. But when it comes to understanding Vietnamese youth use more advanced data than other age segments the purchase behaviors of mobile youth Young Generation Avg. Other Ages —particularly with regard to service choices—it is important to distinguish 2009 2010 2009 2010 between teens and young adults. Teenagers’ decisions are still guided by Multimedia Services 10% 18% 06% 07% their parents, who tend to control the purse strings. Young adults increasingly Mobile Internet 01% 09% 00% 03% make their own choices, are more subject to peer influence and have more control over their own pocket money. Source: Mobile Insights 2010, 2009 These distinctions are particularly to affect the top-up behavior Promotions become more important when apparent when we look at how young of teens or better that of their youth have to pay for mobile services people choose their mobile service. Like parents who actually pay for it. themselves. most emerging countries, Vietnam is primarily a prepaid market. That is, unlike But promotions are very Teens Young Adults the United States where mobile users important to young adults ages Who Pays Parents Self: Pocket Money enter into a long-term contract with a 18-24. They will actually wait for the right promotion to top Amount 100,000vnd/ 50,000vnd is more particular wireless operator and pay on a each time preferred monthly basis, Vietnamese mobile users up, or top up even if they don’t need the minutes just to take Frequency 1-2 times a 2-3 times a month pay in advance for their mobile service advantage of a promotion. Their month and then “top up” their minutes when these run out. increased price-sensitivity is Promotions Top up on Wait for because they are now paying for need basis promotions, top up The parents of Vietnamese teenagers their own mobile service. They even if not needed tend to be responsible for paying for their tend to spend half as much as in promo period kids’ mobile services. They tend to spend the parents of teenagers (50,000 vnd) each time, but top up more Source: The Nielsen Company 100,000 vnd once or twice a month and pay to top up their kids’ phones frequently, perhaps two or three as needed. Promotions do not seem times a month.Copyright © 2010 The Nielsen Company.7
  8. 8. US Teen Texting Text usage by ageIf it seems like American teens are Q2 2009 - Q2 2010, Customer Value Metrics, Nationaltexting all the time, it’s probablybecause on average they’re sending 4000or receiving 3,339 texts a month. 3500That’s more than six per hour they’re 3000awake—an 8 percent jump from last 2500year. Using recent data from monthly 2000 1500cell phone bills of more than 60,000 1000mobile subscribers as well as survey data 500from over 3,000 teens, Nielsen analyzed 0mobile usage data among teens in the 13-17 18-24 25-34 35-44 45-54 55-64 65+United States for the second quarterof 2010 (April 2010 – June 2010). No QTR 2, ’09 QTR 2, ’10one texts more than teens (age 13-17), Source: The Nielsen Companyespecially teen females, who send andreceive an average of 4,050 texts per Top reasons for mobile adoption vs. previous yearmonth. Teen males also outpace othermale age groups, sending and receiving Teens’ Top Reasons for Mobile Adoption Teen Subscribers (n=3,250/3,128)an average of 2,539 texts. Young adults(age 18-24) come in a distant second,exchanging 1,630 texts per month Text messaging 43% 42%(a comparatively meager three texts Safety 35%per hour). 34%Number One Reason for Getting Keeping in touch 34% with friends 36%a Phone? It’s Not Safety Anymore Keeping in touch 26%Texting is currently the centerpiece with family 25%of mobile teen behavior. Forty-three Always be available 22% 22%percent claim it is their primary reason Convenience 20%for getting a cell phone or mobile device, 20%which explains why QWERTY input Q2 2010 Friends have cell phone 17%is the first thing they look for when 18% Q2 2009choosing their devices. Safety, which Avoid having to borrow 15%was the main reason for getting a phone a cell phone 15%in 2008, is now less important—it is now Avoid having to use 11% family home phone 11%in a virtual tie with the general desire to 10%stay in touch with friends. Privacy 11%Texting is Easier and Faster than Source: The Nielsen CompanyVoice Calls text messaging, considering it easier (22 and peaks at age 24, only adults overAll of this texting activity has come at percent) and faster (20 percent) than voice 55 talk less than teens. Teen females,the expense of voice. Last year, teens calls (though still fun). Voice activity has who are more social with their phones,texted instead of calling because it was decreased 14 percent among teens, who average about 753 minutes per month,fun. Now, 78 percent of teens recognize average 646 minutes talking on the phone while males use around 525 minutes.the functionality and convenience of per month. While voice consumption rises Copyright © 2010 The Nielsen Company. 8
  9. 9. Data and Apps are Rising Stars Voice usage by age Ninety-four percent of teen subscribers Q2 2009 - Q2 2010, Customer Value Metrics, National self-identify as advanced data users, 1,200 turning to their cell phones for messaging, internet, multimedia, gaming 1,000 and other activities like downloads. 800 While teen usage does not reach levels 600 of activity seen by young adults, it has 400 increased substantially versus Q2 last 200 year, from 14 MB to 62 MB. This four- 0 fold increase is the largest jump among 13-17 18-24 25-34 35-44 45-54 55-64 65+ all age groups. Much of this boost is led by males, who are more gadget-savvy QTR 2, ’09 QTR 2, ’10 and consume 75 MB of data, versus 17 Source: The Nielsen Company MB in Q2 last year. Teen females use about 53 MB of data, compared to 11 MB a year ago. National data usage among teens Q2 2009 vs. Q2 2010 Teens are not only using more data, but they are also downloading a wider range Reported Application Usage (Use in Last 30 Days) of applications. Software downloads among teen subscribers who use apps Picture Messaging/MMS 55% enjoyed a solid 12 percent increase 62% in activity versus last year, from 26 40% to 38 percent. This includes popular Mobile internet 49% apps such as Facebook, Pandora and 38% 26% YouTube. Usage of the mobile web has Software downloads 38% also surpassed activity on pre-installed 38% games, ringtone downloads and instant 30% Email 38% messaging, too. Other mobile activities like mail and text alerts have also seen 30% significant growth. Text Alerts 38% 0 10 20 30 40 50 60 70 Customer Value Metrics Teen vs. Young Adult Usage - MB QTR 2, ’09 180 QTR 2, ’10 160 140 120 100 80 60 40 20 0 40% 13-17 18-24 49% Source: The Nielsen CompanyCopyright © 2010 The Nielsen Company.9
  10. 10. Mobile Insights CoverageIn 2010, The Nielsen Company surveyedmobile consumers in 19 countries,including the countries listed below. Thesample sizes indicated in the chart reflectall respondents, not just youth. Global Coverage Methodology Sample (per wave) Cadence Regional Coverage US Online 75,000 Quarterly National Germany Online 5,000 Q1 National Spain Online 8,500 Quarterly National Italy Online 5,000 Quarterly National UK Online 5,000 Q1 National Brazil Face to Face 5,000 Q2 10 urban cities Russia Face to Face 5,000 Q1 9 urban cities China Face to Face 5,000 Q1 Tier 1, 2, and 3 cities India Face to Face 5,000 Q2 22 telecom circlesAbout The Nielsen CompanyThe Nielsen Company is a globalinformation and media company withleading market positions in marketingand consumer information, televisionand other media measurement, onlineintelligence, mobile measurement,trade shows and business publications.The privately held company is activein approximately 100 countries, withheadquarters in New York, USA. Formore information, please Copyright © 2010 The Nielsen Company. All rights reserved. Printed in the USA. Nielsen and the Nielsen logo are trademarks or registered trademarks of CZT/ACN Trademarks, L.L.C. Other product and service names are trademarks or registered trademarks of their respective companies. 10/2510 10