mobile in numbers

FREDERIK DE BOSSCHEREStrategist, In The Pocket

#SoMITP

STATE OF MOBILE IN NUMBERS

“CURB YOUR ENTHUSIASM”—

“NUMBERS ARE COMING”—

#SoMITP

Methodology

• Representative set of apps by ITP.

(n = 1.2 mio. app users, 1.7 mio. app downloads, …)

• Field survey.

(n = 160, representative spread across gender / age groups)

• Other research materials.

(Flurry, comScore, …)

#SoMITP

Topics

• Mobile platforms

• Mobile usage

• Industries: retail, media, banking

• Tech: wearables

• In conclusion

STATE OF MOBILE PLATFORMS

In The Pocket

“PLATFORM WARS”—

#SoMITP

THE

STAT

E O

F M

OB

ILE

PLAT

FOR

MS

iOS users are more engaged with apps.

iOS users open an app 1.27 times more often than that same app on Android. But an app session on Android lasts 1.55 times longer.

Sources: Usage statistics of selection of In The Pocket apps for Q3 2015, representing over 1.3 mio users.U.S. Smartphone Subscriber Market Share, July 2015 , comScore

Share of engagement in popular apps (BE)

Compared to the international OS market share?

Android

iOS

Windows

Others

59% 41%

51,4% 44,2%

2,9%

1,4%

48

THE

STAT

E O

F M

OB

ILE

PLAT

FOR

MS

iOS users are more engaged with apps.

iOS users open an app 1.27 times more often than that same app on Android. But an app session on Android lasts 1.55 times longer.

Sources: Usage statistics of selection of In The Pocket apps for Q3 2015, representing over 1.3 mio users.U.S. Smartphone Subscriber Market Share, July 2015 , comScore

Share of engagement in popular apps (BE)

Compared to the international OS market share?

Android

iOS

Windows

Others

59% 41%

51,4% 44,2%

2,9%

1,4%

48

Internationally?

#SoMITP

New OS features or functionality can be leveraged more quickly on iOS.

Sources: Sampled from 92.874 - 226.674 users of HLN app, measured during one week, counting from 6 months after release date / Device statistics of selection of ITP apps for Q3 2015, representing over 200 devices and 1.2 mio smartphone users.

Adoption speed of new major iOS/Android releases.

Most popular smartphone families in Belgium.iPhone50.4%

Samsung Galaxy S12.12% Samsung Galaxy S Mini

4.39%

Sony Xperia1.92%

Nokia Lumia1.23%

OnePlus1.20%

Google Nexus0.96%

HTC One0.68%

Motorola Moto0.54%

Huawei Ascend2.23%

Feb 2014 Apr 2014 May 2014 Apr 2015 Jun 2015

Percentage of BE users that have updated 6 months after a major release.

20%

40%

60%

80%

100% iOS 786%

iOS 871%

ANDROID

4.323%

ANDROID

4.414%

ANDROID

5.018%

51

#SoMITP

Share of Android vs. iOS app downloads.In Belgium, Android has finally closed the gap with iOS.

20%

40%

60%

80%

Q3 ‘11 Q4 ‘11 Q1 ‘12 Q2 ‘12 Q3 ‘12 Q4 ‘12 Q1 ‘13 Q2 ‘14Q2 ‘13 Q3 ‘14Q3 ‘13 Q4 ‘14Q4 ‘13 Q1 ‘15Q1 ‘14 Q2 ‘15 Q3 ‘15

52%

IOS ANDROID

#SoMITP

And internationally?

Google Play download growth is mostly driven by smartphone ownership growth in emerging markets and success of budget Android devices.

App Downloads by Store App Revenue by Store

50

100

150

200

+85%

+70%

available on theiOS App Store

Get it onGoogle play

Get it onGoogle play

available on theiOS App Store

#SoMITP

New OS features or functionality can be leveraged more quickly on iOS.

Sources: Sampled from 92.874 - 226.674 users of HLN app, measured during one week, counting from 6 months after release date / Device statistics of selection of ITP apps for Q3 2015, representing over 200 devices and 1.2 mio smartphone users.

Adoption speed of new major iOS/Android releases.

Most popular smartphone families in Belgium.iPhone50.4%

Samsung Galaxy S12.12% Samsung Galaxy S Mini

4.39%

Sony Xperia1.92%

Nokia Lumia1.23%

OnePlus1.20%

Google Nexus0.96%

HTC One0.68%

Motorola Moto0.54%

Huawei Ascend2.23%

Feb 2014 Apr 2014 May 2014 Apr 2015 Jun 2015

Percentage of BE users that have updated 6 months after a major release.

20%

40%

60%

80%

100% iOS 786%

iOS 871%

ANDROID

4.323%

ANDROID

4.414%

ANDROID

5.018%

51

#SoMITP

Which versions to support?

Snapshot of OS versions 1 month after release of iOS9 and Android 6.

4

5.0.X

5.1.X

6

53%

1,5%

14%

27%

5%

7

8

9.0.X

9.1.X

18%

6%

26%

44%

6%

STATE OF MOBILE USAGE

#SoMITP

Mobile has surpassed desktop usage.

We spend 157% more time on digital devices as compared to 2010.

+394%SINCE 2010

+37%SINCE 2010

DESKTOP44%

SMARTPHONES42%

TABLETS14%

#SoMITP

People spend over 3.5 hours per day on mobile devices.

20%

158

162

Q1 ‘13

Q2 ‘14

Q2 ‘15

14%

10%

MOBILE BROWSER APPS

220

20%

3

4

5

14%

10%

-50%

2

+35%

220

Minutes per day on mobile:

#SoMITP

90% of mobile time is in apps.

Facebook has replaced your mobile browser as your window on the world.

42% of app time occurs in most used app. 75% of app usage occurs in top 4 apps.

1/3 of mobile time is spent in social/messaging apps. But 70% of time in social apps is spent consuming media (videos, articles, ...).

FACEBOOK 19%

CHROME 4%

SAFARI 6%

OTHERS 10%

NEWS 2%

PRODUCTIVITY 4%

MESSAGING/SOCIAL 12%

YOUTUBE 3%

ENTERTAINMENT 17%

GAMING 15%- 17%

+12%

+3%

UTILITIES 8%

APPS BROWSER

220minutes

Source: Flurry Analytics, June 2015 49

STATE OF RETAIL

#SoMITP

THE

STAT

E O

F R

ETA

IL

Consumers are very selective of retailer apps they download.

93% of consumers only have 3 shopping apps or less. 62% don’t have any.

Half of consumers aged between 16 and 34 use (one or more) shopping apps.

Source: In The Pocket State of Mobile field survey (n = 160; for each age group: n = 32 = 16 f + 16 m)

20%

40%

60%

80%

0 1-3 4 OR MORE

Amount of retailer apps installed on phone or tablet

All 16-24 25-34 35-44 45-54 55-64

14

Consumers are very selective of shopping apps they download.

93% of consumers only have 3 shopping apps or less.

62% don’t have any.

Half of consumers aged between 16 and 34 use (one or more) shopping apps.

#SoMITP

Shopping apps are infrequently used.

Consumers spend less than 5% of their mobile time in shopping apps.

More than half of these apps are used once

a month or less.

8%DAILY

2%MULTIPLE

TIMES PER DAY

1%DON’T KNOW

19%LESS THANMONTHLY

24%MONTHLY

33%WEEKLY

#SoMITP

Mobile commerce is surging, growing 53% year-over-year (Q1 2015 vs. Q1 2014). It outpaces e-commerce growth (9%).

M-commerce accounts for 15% of total e-commerce spending. Which is low, as nearly 60% of online retail browsing occurs on mobile.

What’s holding users back? Sense of security, ease of navigation and browsing, and effort to fulfill all checkout details.

M-commerce is growing rapidly, but there is a monetization gap.

Share of onine retail browsing vs spending by platform

41%

85%

59% 15%

44% monetization gap

20%

40%

60%

80%

% of time spent % of spending

Source: comScore “The M-Commerce Gap”, June 2015

DESKTOP MOBILE

17

Share of online retail browsing vs. spending, by platform:

Mobile commerce is surging, growing 53% year-over-year.

It outpaces e-commerce growth (9%).

But there is a monetization gap.

#SoMITP

People are getting familiar with mobile commerce.

More than half of Belgian consumers have completed an e-commerce transaction

entirely on mobile.

85% of those who have, have done so more than once.

THE

STAT

E O

F R

ETA

IL

People are getting familiar with mobile commerce.

More than half of Belgian consumers have completed an e-commerce transaction entirely on mobile. 85% of those who have, have done so more than once.

Half of consumers between 16 and 44 regularly buy (and pay for) things on their tablets and smartphones.

Source: In The Pocket State of Mobile field survey

All

16-24

25-34

35-44

45-54

55-64

20% 40% 60% 80%

NEVER ONCE MULTIPLE TIMES

16

Find out more—About the future of retail and m-commerce, in our interview with Jan Huysmans, director Belgium for bol.com.

STATE OF MEDIA

#SoMITP

“People don’t want to pay for digital content.”

#SoMITP

Most people really don’t. But: many do.

Unwillingness to pay for digital content is a generational thing: 60% for millennials, 67% for 35-44,

and as high as 73% for those older than 45.

#SoMITP

NEWSPAPERS & ARTICLES 32%Willingness to pay for digital newspapers isn’t tied to age.

Only the group of ‘45-54’ stands out, with 41% willingness to pay.

58%

18%

24%

MUSIC 42%Half of ‘16-34’ would pay for digital music, compared to 1 in 3 of ‘45-64’.

Belgians between ‘35-44’ represent the highest number of people that are very willing to pay for music: over 1 in 3.

68%

12%

20%

NOT OR HARDLY SOMEWHAT VERY

75

#SoMITP

THE

STAT

E O

F M

EDIA

Are people willing to pay for digital access to content?

APPS & IN-APP PURCHASES 24%

Only 1 in 4 of Belgians is willing to pay for apps (or in-app purchases).

It’s a generational thing: 1 in 3 of those aged below 35 buys app, less

than 1 in 5 of those aged above.

“People don’t want to pay for digital content.” Turns out most people really don’t. But many do.

Unwillingness to pay for digital content is a generational thing: 60% for millenials, 67% for 35-44, and as high as 73% for those older than 45.

SERIES, FILMS & TV 34%35% of ‘16-44’ is very willing to pay for digital access to series, films, TV, …

80% of ‘45-64’ is not at all (or hardly) willing to pay.

66%

10% 24%

76%

9%15%

Digital set-top TV & VOD (Telenet, Proximus, etc.) not included.

Source: In The Pocket State of Mobile field survey74



58%

18%

24%



68%

12%

20%


75

#SoMITP



58%

18%

24%



68%

12%

20%


75



58%

18%

24%



68%

12%

20%


75

#SoMITP



58%

18%

24%



68%

12%

20%


75

THE

STAT

E O

F M

EDIA

Are people willing to pay for digital access to content?

APPS & IN-APP PURCHASES 24%

Only 1 in 4 of Belgians is willing to pay for apps (or in-app purchases).

It’s a generational thing: 1 in 3 of those aged below 35 buys app, less

than 1 in 5 of those aged above.

“People don’t want to pay for digital content.” Turns out most people really don’t. But many do.

Unwillingness to pay for digital content is a generational thing: 60% for millenials, 67% for 35-44, and as high as 73% for those older than 45.

SERIES, FILMS & TV 34%35% of ‘16-44’ is very willing to pay for digital access to series, films, TV, …

80% of ‘45-64’ is not at all (or hardly) willing to pay.

66%

10% 24%

76%

9%15%

Digital set-top TV & VOD (Telenet, Proximus, etc.) not included.

Source: In The Pocket State of Mobile field survey74

In The Pocket

Find out more—About the future of media and the impact of mobile, in our interview with with Christian Van Thillo, CEO of De Persgroep.

STATE OF BANKING

#SoMITP

54% of people use mobile apps for banking.

80% of mobile banking app users aged 25 - 44 age those apps weekly or more frequently.

THE

STAT

E O

F B

AN

KIN

G5%

10%

15%

20%

25%

30%

35%

40%

45%

16-24 25-34 35-44 45-54 55-64

DAILY WEEKLY MONTHLY

How many people of different ages use banking apps and how often do they use them?

Source: In The Pocket State of Mobile field survey

54%65%80%

of people use mobile apps for banking

of clients between 25 and 54 use mobile apps for banking

of mobile banking users between 25 and 54 use those apps weekly or more frequently

TOTAL44%

TOTAL75%

TOTAL53%

TOTAL66%

TOTAL34%

38

#SoMITPWhich channel do clients use more frequently?

For daily banking, apps have surpassed desktop.

Consumers aged 25 to 34 already use their banking app(s) more frequently than laptop/desktop.

How regularly do people use banking apps and banking websites?

20%

20%

40%

40%

60%

60%

80%

80%

Apps

Desktop

DAILY WEEKLY LESS OFTEN

MOBILE > DESKTOP EQUALLY FREQUENT DESKTOP > MOBILE

ALL

16-24

25-34

35-44

45-54

55-64

Sources: In The Pocket State of Mobile field survey 39

#SoMITP

Which channel do clients use more frequently?

For daily banking, apps have surpassed desktop.


How regularly do people use banking apps and banking websites?

20%

20%

40%

40%

60%

60%

80%

80%

Apps

Desktop

DAILY WEEKLY LESS OFTEN

MOBILE > DESKTOP EQUALLY FREQUENT DESKTOP > MOBILE

ALL

16-24

25-34

35-44

45-54

55-64

Sources: In The Pocket State of Mobile field survey 39


STATE OF WEARABLES

“MUCH ADO ABOUT WEARABLES”—

#SoMITP

How many people do fitness & health tracking?

NO, DON’T SEE WHY

54%

NO, BUT I MIGHT

13%SMARTPHONE

24% FITNESS-BAND

8%

1%

SMARTWATCH

1 in 3 does fitness & health tracking. 1 in 10 has a wearable.

#SoMITP

The wearables market is growing explosively.million

units sold

Q2 ‘2014 Q2 ‘2015

24,3%19,9%17,1%

3,9%3,3%

Fitbit

Apple

Xiaomi

Garmin

Samsung

1

2

3

4

5

5

10

15

20

+223%

5.6M

18.1M

#SoMITP

Percentage of top 100 apps (per category) that have Watch apps

Which apps should we expect?

PRODUCTIVITYWEATHER TRAVEL

FINANCELIFESTYLE

NEWSSPORTS

NAVIGATION

HEALTH & FITNESS

29,3%

20,3% 19,7% 19,3%17,7%

16,7%15%

14%12,7%

IN CONCLUSION

“BUT WHAT DOES IT ALL MEAN?”—

#SoMITP

You can’t beat them. Join them.

• People spend over 3 hours/day on their smartphones, mostly in

apps. Most of that app time won’t be for your app though …

• Usual suspects: Facebook & other social/messaging apps,

entertainment & games.

• So if it’s about getting your brand content out there, or striking up

a conversation with your customers: see if you can leverage the

already popular apps with a meaningful presence.

#SoMITP

So why still build apps?

• The mobile browser becomes side-lined. It’s an ephemeral, ad-hoc

tool. A starting point. Apps are key to build a primary relationship

with your user.

• Our smartphone is our life companion. Think how you can re-

imagine your products or services on mobile devices. What’s your

place in this modern Swiss Army knife?

#SoMITP

So why still build apps?

• Leverage better UX or technical possibilities of apps to smoothen

the user or customer journey.

Mobile payments, heightening security, granular messaging,

location-based servicing, …

#SoMITP

Sticking to smartphones won’t suffice.

• Wearables (fitness bands and smartwatches) show every sign of an

exploding market. A lot of people will have them, soon.

People might laugh. But people laughed at smartphones too. Even

cellular phones were mocked.

• Smartwatches offer more touch points with your users, but you’ll

have to re-think your value proposition. It’s a different device, with

different use-cases.

#SoMITP

Devices mean data.

• Wearables and health tracking will offer a lot of interesting data

about users. Learn to leverage these new data-sets through

HealthKit, Google Fit, etc. Give meaning to this data.

• Beacons will do the same, but for user location. Geo-CRM, you’re

welcome.

#SoMITP

Thank you. Let’s have drinks.