ji wire

InsightsJiWire Mobile Audience Insights Report

Q1 2013

JiWire Mobile Audience Insights Report Q1 2013

Source: JiWire, Q1 2013

Key Insights

Multi-Device Adoption & Behaviors 2-4Travel Research & Purchase Behaviors 5-7Mobile Audience & Location Trends 8-10Connected Device Adoption 11-12Worldwide Location Highlights 13-14

Our Q1 report focuses on understanding how mobile is transforming consumer behaviors with respect to the travel and hospitality industry. We did so by examining consumers’ location & mobile adoption and behaviors, as well as connected device adoption and Wi-Fi usage trends.

Our research identified several important industry insights, a few of which uncover behaviors contrary to travel industry beliefs. The first is a significant increase in consumer cross-device behavior. The second area considers why and how active mobile consumers research and book travel-related reservations looking at mobile apps vs. mobile site and loyalty vs. promotions. The third highlights aggressive tablet adoption in general, and when it comes to public Wi-Fi usage.

Key findings include:

• Nearly 50% of active mobile consumers use their smartphone and tablet for travel research.

• 44% of consumers are comfortable spending over $500 when booking travel from a mobile device.

• Smartphone & tablet usage of public Wi-Fi increased to 60% of all public Wi-Fi connections.

• Travel aggregator & airline apps are 3x more important than branded hotel apps & mobile sites for consumer research & purchase.

52% of consumers used a mobile device to book travel in the last 90 days


1

52%



The percentage of people using smartphones & tablets to research travel-related services is almost equal to laptops • Almost 50% of active mobile consumers are using smartphones & tablets for travel research, showing a rapid adoption of mobile devices for travel services and indicating a shift away from laptops. • While laptops remain the preferred device for travel-related purchases, mobile devices are showing strong adoption with 27% already saying they use their smartphone to make travel-related purchases.

44% of consumers are willing to spend $500+ when booking a travel-related purchase from their mobile device • 30% spend $100-499, which could include restaurants, entertainment, hotel & flight deals. • Only 13% of consumers indicate they don’t make travel purchases with their mobile device.

How People Use Mobile Devices for Travel-Related Research and Purchasing

Which devices do you use to research and make travel purchases?

How much are you willing to spend on travel when making a purchase from your mobile device

(smartphone or tablet)?

Smartphone

Tablet

Laptop

Source: JiWire, Q1 2013 Source: JiWire, Q1 2013

Research Purchase Less than$100

$100-$499

$500-$999

$1,000-$1,499

$1,500-$1,999

$2,000+ None

48% 49%56%

27%39%

63%

13%

30%

23%

11%

5% 5%

13%

2



Cross-Device Research & Purchase Behaviors Vary by Device

48%

49%

56%

48% research on their smartphone

Of that 48%

Of that 49%

Of that 56%

Book on smartphone

Book on smartphone

Book on smartphone

Book on tablet

Book on tablet

Book on tablet

Book on laptop

Book on laptop

Book on laptop

49% research on their tablet

56% research on their laptop

40%

30%

31%

48%

54%

39%

71%

67%

75%

Source: JiWire, Q1 2013Source: JiWire, Q1 2013

3

A look at research and purchase behaviors revealed significant cross-device activity through the purchasefunnel for travel services

• Of those researching on a smartphone, almost half (48%) report booking on a tablet. • Of those researching on a laptop, 31% report booking on a smartphone.

Despite active multi-device usage, there is a strong correlation between the device consumers use toresearch & purchase

• The highest purchase percentage for smartphones came from those who also researched on smartphones. The same correlation applies for tablets and laptops.

Travel Research Behavior By Device Travel Purchase Behavior By Device



How Consumers Have Used Their Devices For Travel in the Last 90 Days

Which devices did you book travelon in the last 90 days?

23%

29% 52%

6%13%

34%

47%

48%

Smartphone Tablet Laptop


Percentage that used only one device to book travel in the last 90 days

4

52% of consumers used a mobile device when booking travel in the last 90 days • Usage is shifting toward mobile devices, with smartphones and tablets representing 23% and 29% respectively.

Within the last 90 days, the majority of consumers used multiple devices to make travel-related purchases • 47% of travel purchases were done across multiple devices, however 34% used laptops specifically.

• 19% used only a mobile device to book travel.

SmartphoneOnly

TabletOnly

LaptopOnly

MultipleDevices



Do you make reservations for a current trip while traveling?

Do you make reservations for a future trip while traveling?

If you do research or make a purchase whiletraveling, which devices do you use?

Source: JiWire, Q1 2013Source: JiWire, Q1 2013

Research Purchase

Yes

No

Yes

No

33%

44%

67%44%

29%

40%35%

52% 50%

56%

5

How Consumers Book Travel While Traveling

Consumers are making last-minute purchase decisions while traveling • 67% of travelers make reservations for their current trip while traveling.

• 56% make travel-related reservations for a future trip while traveling.

Consumers are using mobile to book travel while traveling • Nearly one third of travelers use their smartphone or tablet to purchase while traveling compared to 50% using a laptop.

• 44% use their smartphone & 40% use their tablet to research travel while traveling.

Smartphone Tablet Laptop



Loyalty Reward

s

Company Polic

y

Deals or Pro

motio

ns

Brand Favora

bility

Co-branded C

redit C

ardLoyalty

RewardsCompany

PolicyDeals or

PromotionsBrand

FavorabilityCo-brandedCredit Card

What influences your decision-making when booking travel?


6

35.1%

31.6%34.5%

24.4%

32.7%

43.1%

31.3%28.2%

24.7% 26%

Key Influencers of Business & Leisure Travelers’ Purchase Decisions

Business Travelers and Leisure Travelers are influenced differently when making purchase decisions • For Business Travelers, loyalty rewards are the #1 influencer, followed by company policy.

• Deals or promotions influence both types of travelers, but are the #1 influencer for Leisure Travelers, over 10% higher compared to Business Travelers.

• Around one third of both travel groups book based on their loyalty rewards programs & 25%-26% because of their branded credit cards.

Business Traveler Leisure Traveler



Travel A

ggregato

r App

Branded Airli

ne App

Travel A

ggregato

r

Mobile Site

Branded Airli

ne

Mobile Site

Branded H

otel A

pp

Branded H

otel

Mobile Site

If you book travel on your smartphone or tablet, which of thefollowing is most important for research & booking?


7

Business Traveler Leisure Traveler

37%

32% 32% 33%

10% 9%10% 9% 7% 5%12%

4%

TravelAggregator

App

TravelAggregatorMobile Site

BrandedAirline

App

BrandedAirline

Mobile Site

BrandedHotelApp

BrandedHotel

Mobile Site

How Travelers Use Mobile Apps & Sites

Mobile apps dominate consumer preference when it comes to travel & hospitality • Travel aggregator & airline apps are 3x more important than branded hotel apps & mobile sites for consumer research & purchase.

• In each category (e.g. travel aggregator, branded airline, etc.) apps were deemed more important than the same service via a mobile site.



Brand Comparison of Audiences Using Location Data

Top Big Box: Home Depot

Top QSR: Subway

Top Restaurant: Applebee’s

Top Electronic Retailer: Radio Shack

Top Bank: Bank of America

1

2

3

4

5

Top Big Box: Costco

Top QSR: McDonald’s

Top Restaurant: Bubba Gump’s

Top Electronic Retailer: Radio Shack

Top Bank: Chase

1

2

3

4

5

Comparing two travel & hospitality brands, we identified significant differences in their audiences:

46% 56%

55% 90%

54% 44%

35% 21%

62% 49%

14% 9%

31% 45%

Male Male

Parents Parents

Female Female

CollegeStudents

CollegeStudents

Business Business

TechEnthusiasts

TechEnthusiasts

Leisure Leisure

Who are Best Western customers? Who are Holiday Inn customers?

Top Locations that Best Western Customers Frequent

Top Locations that Holiday Inn Customers Frequent

8



Brand Comparison of Audiences Using Location Data

Comparing two travel & hospitality brands, we identified significant differences in their audiences:(cont.)

9

Household Income in the $1,000’s Household Income in the $1,000’s

Frequency & Loyalty Frequency & Loyalty

1%

49% spend over 5 nights per 60 days at a Best Western

54% spend over 5 nights per 60 days at a Holiday Inn

6% of Best Western patrons go to at least 1 other hotel chain

60% of Holiday Inn patrons also go to at least 1 other hotel chain

49% 54%

6% 60%

$0 – $50

$50 – $100

$100 – $150

$150 – $250

$250K plus

$0 – $50

$50 – $100

$100 – $150

$150 – $250

$250K plus

44% 46%41% 42%12% 7%2% 1% 3%



33%

How are Consumers Connecting to Wi-Fi?


10

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013

TabletSmartphone Laptop

14% 17% 16% 19% 22%

31% 35% 40% 39% 38%

55% 48% 44% 42% 40%Growth in the ratio of mobile connections,

year over year

Decline in the ratio of laptop connections,

year over year

27%

Connected Device Trends: Public Wi-Fi Usage

Mobile devices grew from 45% to 60% of Wi-Fi connections year over year, a 33% lift • 60% of all public Wi-Fi usage was represented by mobile devices, with smartphones at 38% & tablets at 22%.

• Laptop usage decreased to 40% of usage, a relative decrease of 27% year over year.

For the second quarter in a row, tablet growth surpasses both smartphone & laptop growth • Smartphone & laptop connections declined from 39% to 38%, and 42% to 40% quarter over quarter respectively.



Hotel

Q1 2012 Q1 2013 Q1 2012 Q1 2013 Q1 2012 Q1 2013 Q1 2012 Q1 2013 Q1 2012 Q1 2013

Mall AirportsRestaurantsCafé

Percent of Wi-Fi Connections by Device & Location


11

Smartphone Tablet

28%

14%

35%

23%

53%

9%

57%

13%

50%

11%

56%

15%

73%

7%9%

81% 27%

22%

37%

28%

Connected Device Adoption: Public Wi-Fi Usage

Both smartphone & tablet connections continue to grow quarter over quarter, and year over year • While tablet usage is highest at airports (28%), the growth in tablet usage was highest at hotels (64%) and cafés (44%).

• Smartphone Wi-Fi usage is highest at restaurants (81%).

• The highest growth in smartphone usage was at airports (37%) & hotels (25%).




Top 10 Wi-Fi Mobile Devices: Q1 2013 Top Wi-Fi Mobile OS: Q1 2013

1 Apple iPhone 32.4% 1 - 10.0%

2 Apple iPad 31.1% 2 + 9.1%

3 Apple iPod Touch 5.7% 3 - 10.5%

4 Samsung Galaxy S III 5.7% 4 + 23.0%

5 Kindle Fire 2.6% 6 + 14.0%

6 Samsung Galaxy S II 2.5% 5 - 2.9%

7 Samsung Galaxy Tab II 1.3% 146 + 18.1%

8 Samsung Galaxy Note II 1.0% 72 + 25.5%

9 Droid Razr 4G 0.8% 10 + 8.1%

10 Nexus 7 0.6% 123 + 7.1%

1 iOS 69.0% 1 + 0.9%

2 Android OS 28.5% 2 + 2.2%

3 RIM OS 1.6% 3 - 36.2%

4 Windows OS 0.6% 4 - 16.9%

5 Symbian OS 0.1% 5 - 50.0%

6 Linux OS 0.1% 6 - 34.4%

7 WebOS 0.1% 7 - 0.5%

Q1Rank

Q1Rank

Mobile Device Top 10 Mobile Device OSQ1 2013% of Ad

Requests

Q1 2013% of Ad

Requests

Q4 2012Rank

Q4 2012Rank

% Change in Market Share

% Change in Market Share

Note: JiWire measurement includes all mobile device types in order to providea complete view of how the on-the-go audience is connecting. * OS: Operating System.12

Connected Device Adoption: U.S. Highlights

Samsung devices claim 4 of the top 10 spots for mobile devices connecting to public Wi-Fi

• Apple devices remain in the top 3 spots, with iPhone, and iPod Touch accounting for 69.2% of market share.

The Kindle Fire continues to remain the strongest challenger to the iPad in the tablet market segment iOS and Android continue to dominate the market as the top Wi-Fi mobile operating systems

• Furthermore, Android is consistently increasing market share for the third quarter in a row.



Worldwide public Wi-Fi locations declined in Q1 2013 due to database updating of Wi-Fi providers

• Quarterly growth of 0.78% from Q3 2012 to Q4 2012.

• Annual growth of 20.1% from Q4 2011 to Q4 2012.


Worldwide public Wi-Fi locations: 2009 – 2013

Worldwide quarterly growth in public Wi-Fi locations:

776,556

813,953

820,262 817,793

289,476

414,356

682,929

820,262 817,793

2009 Q2 20122010 Q3 20122011 Q4 20122012 Q1 2013 YTD2013 YTD

13

Worldwide Location Highlights: Public Wi-Fi Locations



Public Wi-Fi business models: Worldwide Q1 2013

Public Wi-Fi business models: U.S. Q1 2013

1 South Korea 186,759 1 + 0.16%

2 United Kingdom 182,640 2 0.0%

3 United States 130,616 3 - 2.60%

4 China 104,106 4 0.0%

5 France 35,433 5 0.0%

6 Taiwan 24,148 6 0.0%

7 Russian Fed. 16,829 7 0.0%

8 Japan 15,735 8 - 0.01%

9 Germany 15,105 9 0.0%

10 Sweden 9,546 10 0.0%

Q1Rank

Country Q1 2013Number of Locations

Q1 2013Rank

% Change

Paid

Free

Paid

Free

21.9%

18.3%

78.1%

81.7%Source: JiWire, Q1 2013


14

Worldwide Location Highlights: Public Wi-Fi Locations

Free locations continues to see growth in the U.S., up 2.8% from 78.9% in Q4 2012 • Free locations in the U.S. continue to increase, while free locations Worldwide have remained between 19 – 25%.

South Korea remained in the #1 spot for the second quarter in a row

InsightsJiWire Mobile Audience Insights Report Q1 2013

The Q1 Insights Report highlights recent mobile market audience usage trends offering advertisers insights they can apply to their mobile strategies and campaigns. This quarter focused on the travel & hospitality market.

JiWire is the pioneer of and leading location-powered mobile advertising and data platform, leveraging proprietary historical and present data enabling advertisers to effectively engage their desired audience across all mobile devices at scale. JiWire has been an innovative leader in evolving mobile advertising and delivering mobile audiences since 2003. Our data platform creates unique audience profiles from 12.3 billion location tags across 700 million devices including smartphones, tablets and laptops.

For questions, interview requests, additional info or to make recommendations for future reports, please contact us at [email protected].

Methodology:

JiWire’s Mobile Audience Insights Report is based on data compiled from multiple proprietary sources; a survey of more than 1,300 randomly selected customers from across JiWire’s combined Wi-Fi and mobile advertising platform. The report is based on data collected in March ‘13. Quarterly public Wi-Fi location rankings and business model distributions are based on the final day of the quarter.

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