worldwide mobile content and commerce usage and trends - what you need to know to thrive in a global...

Worldwide Mobile Content And Commerce Usage And Trends - What You Need To Know To Thrive In A Global EconomyPresented by: Marjorie DeHey, JD/MBA – GM MEF

Marjorie DeHey, JD/MBA – GM MEF North America

• General Manager for MEF where she drives the North American strategy for the global organization of over 200 members.

• Has worked with top brands such as MGM, NBC/Universal, Turner Broadcasting, Coca-Cola, Sony, Sprint, AT&T, Verizon, Warner Brothers, MTV and Samsung.

• Previously ran the media/entertainment division of the Irish government.

• Named one of “The 25 Women to Watch in 2012” by Mobile Marketer Magazine and quoted as expert on digital media by MSNBC.

MEF is the global community for mobile content and commerce. It is the leading trade organization for companies wishing to monetize their goods, services and digital products via the mobile connected device. MEF provides competitive advantage to its diverse membership, shapes industry growth, connects thought leaders and spearheads groundbreaking initiatives which explore and promote monetization opportunities.

About MEF

Three cool things you may not know…

BACK TO CONTENTSUNDERSTANDING MOBILE CONTENT AND COMMERCE USAGE & TRENDS WORLDWIDE

{AGC (Apollo Guidance Computer) had 2kb memory, 32kb of read only memory (storage), CPU 1.024 MHz. Samsung Galaxy II S has 1 GB memory (1 048 576 kb), 32 GB storage (33 554 423 kb), CPU Dual-core 1.2 GHz (1200 MHz x 2)}

2000x raw speed

1. Faster than the computer that . .

According to a study by InMobi:

TV usage: 141 minutes a day

Phone media usage: 144 minutes

2. The “second screen is now the “first screen”

Inmobi, 2012

2.5) Both Bill Gates and Steven Jobs were college dropouts – tuition in 2030 is estimated to be $130,428 a year*

http://tech.fortune.cnn.com/2011/10/24/steve-jobs-walter-isaacson/; *CNBC, 2012

http://tech.fortune.cnn.com/2011/10/24/steve-jobs-walter-isaacson/

http://tech.fortune.cnn.com/2011/10/24/steve-jobs-walter-isaacson/

3) Monetization is truly here

MEF, 2012; 9500 Global Consumers

GLOBAL CONSUMER SURVEY 2012:Understanding Mobile Content and Commerce Usage & Trends Worldwide

MEF Global Consumer Survey 2012

UNDERSTANDING MOBILE CONTENT AND COMMERCE USAGE & TRENDS WORLDWIDE

MEF’s annual Global Consumer Survey surveys mobile media users worldwide to understand changing mobile content and commerce behaviors and trends.

• Purchase – digital or physical goods

• Research – using the phone to support product/purchase research

• Banking – transaction or accessing bank accounts

9,500 mobile media users across ten countries were surveyed, namely: US, UK, China, India, Qatar, South Africa, Mexico, Brazil, Indonesia and Saudi Arabia.

11

Sponsors & Partners

UK US China Saudi Arabia

Qatar Mexico Indonesia South Africa

India Brazil

Device Penetration of Mobile Media Users

Feature Phone BlackBerry SymbOS Windows Android iPhone


12

Device penetration for the Mobile Media Users differs greatly between markets

Date: Aug/Sep 2012 Base: Total respondents 9500


13

In 2012, globally 88% of Mobile Media Users have engaged in mobile content & commerce activity

South Africa China UK US India Saudi Arabia Qatar Indonesia Brazil Mexico

95%92% 91% 91% 90%

87% 86% 85% 83%78%

Mobile Content & Commerce Usage in 2012


Total South Africa India Qatar Indonesia UK

82%

89%

85%

73%

80%

91%

88%

95%

90%

86%85%

91%

Total Sample 2011 Total Sample 2012


14

Growth markets are a key driver behind the overall global increase in the number of mobile content and commerce users



15

Mobile as an engagement engine. Growth driven by Pre-Purchase Research and Banking

Research Banking Purchase

58% 57% 71%80% 64% 70%

Growth In Mobile Content & Commerce Behaviors 2011 to 2012




Physical & Perishable goods combined

Digital products (e.g. ringtone, app, games,

music)

Physical Goods (e.g. Books, CDs, clothing

etc.)

Virtual Goods (e.g. In application currency, goods, prizes etc.)

Perishable goods (e.g. food and drink)

24%

54%

21%

7%

31%

54%

27%23%

10%

Purchasing Via Mobile - Categories


Purchase behavior is maturing & diversifying with a significant increasein the purchase of physical & perishable goods since 2011


N/A

9


Research leads to revenue


17

57%

66% 67%69% 70%

72%74% 74%

76%78%Purchased Via Mobile


Global purchase behavior trends

ABOVE AVERAGEBELOW AVERAGEGLOBAL SCORE:

70%


ABOVE AVERAGEBELOW AVERAGE GLOBAL SCORE: 27%

PHYSICAL GOODS


Growth Markets are showing above global average penetration for mobile purchases.


Saudi Arabia

Qatar Mexico China UK Indonesia US Brazil India South Africa

45% 45% 45% 47%56% 57% 57% 58% 59%

67%

Brazil Mexico Indonesia Qatar South Africa Saudi Arabia

India US China UK

13% 15% 20% 20% 21% 22% 23%

39% 41%48%

DIGITAL GOODS


Growth marketsDRIVING MOBILECONTENT uptake

Smartphone marketsDRIVING PURCHASEof physical goods

Cards and operator payments are the major payments methods


Any Card Mobile Phone Payment (bill or airtime)

21%

39%

27%25%

Purchasing via Mobile – Payment Methods

Total 2011 Total 2012


Globally, 33% users now check their bank balance via their mobile, up from22% in 2011


21

Check bank balance

Send airtime to someone

else

Pay a bill Top up mobile wallet

Send money to someone

else

Apply for credit / loan

Make a loan repayment

22% 28% 12% 14% 8% 5% 2%33% 23% 22% 18% 14% 10% 6%

Mobile Banking Activities



Globally - convenience and entertainment are the key reasons globally consumers purchase via their mobile



35%

26%

22%

15% 14% 14% 14% 13%

Barriers to Purchase via Mobile

Consumer Trust and Lack of Need key barriers to further purchase via mobile devices


23Date: Aug/Sep 2012 Base: Total respondents 9500

USA COUNTRY REPORTGLOBAL CONSUMER SURVEY 2012

Mobile Content and Commerce Usage & Trends in the USA

BACK TO CONTENTSMOBILE CONTENT AND COMMERCE USAGE & TRENDS IN THE USA

Executive Summary

25

42% 42%

32%

21%

59%

52% 52% 50%

32% 32%

Pre-Purchase Research Through Mobile – 2012



US Consumers Prefer Payment Via Credit Cards

26


PAYMENT BY CARD

Indonesia India Mexico Brazil Saudi Arabia

South Africa

Qatar China UK US

10%19% 19% 20% 22% 24% 25%

35%46% 47%


Country: USA Date: Aug/Sep 2012 Base: per market circa (1000) Significantly higher/lower. Tested at 95% confidence interval.

95% of mobile media users in the USA use a smartphone to access the mobile web.

• Half of smartphone owners in the USA use an Android device to access mobile media.

• 31% use an iPhone.

27

• Mobile content and commerce activities have grown significantly since 2011.

• 91% now engage in some form of mobile commerce.

5%

95%

1%

50%

31%

11%2%

Feature Phone Smartphone Symb OS Android

iPhone Blackberry Windows

Any Mobile Commerce 2011 Any Mobile Commerce 2012

83%

91%

Mobile Commerce Growth 2011 to 2012



Product Research Banking Purchase

62% 50% 69%88% 68% 74%

Growth In M-Commerce Behaviors 2011 to 2012


28

• Purchases via mobile phones has grown to 74%

• Mobile media users are also researching and banking via mobile significantly more than in 2011

• The smartphone platform appears to encourage stronger levels of research, banking and purchase.

• Smartphone owners offer a clear opportunity for brands and advertisers to engage with them, with their significantly higher usage of all forms of mobile content and commerce.

All aspects of mobile content and commerce are increasing in the US.

Product Research Banking Purchase

71%

57%63%

88%

69%75%

Mobile Commerce Activities by Device Type

Feature Phone Smartphone



42% 42%

32%

21%

59%

52% 52% 50%

32% 32%

Product Research Through Mobile – 2012


29

• 50% mobile media users now use their mobile to locate shops, significantly more than in 2011.

• Significantly more users now engage via mobile to research products and check pricing.

• Use of mobile coupons and vouchers has also increased significantly in the US, indicating that mobile as a purchase tool is on the rise.

Mobile has a key role to play as a purchase tool.



53% 26% 23% 9%57% 51% 39% 37% 12%

Purchasing Via Mobile - Categories


30

At 74%, the US places third in terms of goods purchased via mobile.

Mexico Qatar Brazil Saudi Arabia

Indonesia India China US UK South Africa

57%

66% 67% 69% 70% 72% 74% 74% 76% 78%Purchased Via Mobile


• Purchase of all types of goods has increased significantly.

• 51% mobile media users now purchase physical and perishable goods in the US

• A clear opportunity to develop the market in terms of both type of goods offered, and new revenue streams

USApurchase average:

74%



Brazil Mexico Indonesia Qatar South Africa

Saudi Arabia

India US China UK

13% 15%20% 20% 21% 22% 23%

39% 41%48%

PHYSICAL GOODS

31

• The US perhaps surprisingly places only in the top 4 for both digital and physical goods purchase.

The is above average for both digital and physical goods purchase.



Saudi Arabia

Qatar Mexico China UK Indonesia US Brazil India South Africa

45% 45% 45% 47%56% 57% 57% 58% 59% 67%

DIGITAL PRODUCTS



Mobile Phone Payment (bill or air-time)

Any Card Using an online payment service e.g., PayPay

38%32%

17%21%

47%

19%

Purchasing via Mobile – Payment Methods


32

• With purchase digital goods stronger than that of virtual goods.

• At 23%, the US has one of the strongest levels of purchasing both good types, level with the UK.

66% of US mobile media users have purchased either a digital or virtual good.

• 47% pay for purchases via their mobile phone using a card.

66%58%

37%

23%


Country: USA Date: Aug/Sep 2012 Base: per market circa (1000) Significantly higher/lower. Tested at 95% confidence interval. 33

• Whereas global ranking in terms of airtime payments reflects market maturity levels.

At 47% the US leads the world in card payments via mobile


PAYMENT BY AIRTIME


PAYMENT BY CARD

Indonesia India Mexico Brazil Saudi Arabia

South Africa

Qatar China UK US

10%19% 19% 20% 22% 24% 25%

35%46% 47%

Brazil China Saudi Arabia

India UK US Qatar Mexico Indonesia South Africa

1% 4% 4% 7% 7% 9% 10%18%

30%47%



High Spend Medium Spend Low Spend

15%

29%

57%

21%

33%

46%

Willingness to Spend on Mobile by Value


Significantly more mobile media users are now willing to spend high in relation to their income when purchasing goods on their mobile phone.

• It would appear that consumers have migrated up the value chain, with more now willing to spend at higher levels.

• This offers a clear opportunity to increase revenue within the market, especially given the US mobile media users appetite for physical goods and the overall increase in commerce activity.

34



Pay a bill Check bank balance Apply for credit / loan Send airtime to someone else

Send money to someone else

22%23%

9%

13%

8%

42% 41%

17%

12% 12%

Mobile Banking Activities


Consumers are using their mobile phone to manage their daily finances significantly more.

• 41% now use their mobile to check their bank balance. 42% now use their phone to pay bills.

• Applications for credit/loans has grown dramatically since 2011.

• The maturity of the US consumer means that a clear opportunity for financial and utilities brands exists.

35



Games

Mus

ic

Social

Net

workin

g

Photo

& V

ideo

Wea

ther

News

and

ente

rtainm

ent

Naviga

tion

and

trave

l

Sports

66%

51%44% 40% 38% 33%

25% 23%

Top App Genres

Despite the US market maturity, games are still by far the most favored app genre.

• Music and social networking the next most favored genre of app

36

• Same usage pattern evident across device types

• News, navigation weather and sports apps are used more by feature phone owners.

Games Music Social Networking

Photo & Video

Weather News Navigation and travel

Sports

69%

39% 37%43%

51%

39%33% 31%

66%

51%45%

40% 37%32%

25% 22%

Feature Phone Smartphone



• Catalogues, health and lifestyle apps are most appealing to women.

• Business, navigation and utilities favored by males.

Different genres of applications are used by different profiles of users.

45% 50% 55% 60% 65% 70%

40%

45%

50%

55%

60%

65%

70%

Books and reference

Business and finance

Catalogues

Education

Games

Music

Health & Fitness

Lifestyle/MedicalNavigation and travel

News and entertainment

Photo & Video

Social Networking

Utilities

Weather

% Female

% O

ve

r 3

5



Convenience and Entertainment are key drivers of purchases via mobile phones.

Multi-tasking over Multiscreens

Native digital folk switch screens 27 times per hour

Second Screen: Distraction or Interaction?

Nielsen, 2011; 8,000 users between the ages of 13-64



Lack of need is a barrier to purchase, concerns about trust and safety of information.

41

34%

21%20%

13% 12% 12%10% 10%

Barriers to Purchase via Mobile



Series1

33% 32%34%

32%34%

31%33%

Single Biggest Barriers to Purchase via Mobile

Total Male Female Under 35 Over 35 Feature phone Smartphone

At 33%, trust is a key barrier to overcome to encourage greater purchase of goods via mobile.

43

TRUST Combined(I don’t trust the security/I don't trust the service provider/Payment systems are not secure)

1) The phone is a data collector: - Personalization by design bundled with camera, microphone, gyroscope, compass, wallets and location features.

2) The phone is a data publisher:- Social by design makes sharing information seem natural and easy.

How valuable: People report a lost phone within 24 minutes, lost keys within 24 hours

Why the concerns:


Summary of Findings

45

• 91% of mobile media users have conducted mobile content and commerce in the US significantly more than in 2011.

• At 74%, the US has the 3rd strongest levels of purchase via mobile, half of consumers now purchase physical and perishable goods via their mobile.

• Convenience is the key motivator behind purchasing via mobile, with entertainment and best deals also playing a role.

• Lack of need and trust are the key barriers to overcome in order to encourage more purchase via the mobile platform

entertainmentbanking

convenience74% purchase

m-commerce


Opportunities in Mobile Content & Commerce

46

• Smartphone owners offer a clear opportunity to drive revenue, they conduct all forms of mobile content and commerce significantly more than feature phone owners.

• Mobile has a clear role to play as a purchase tool - in both driving footfall to bricks and mortar, and as a stand alone purchase tool.

• Mobile banking is a key growth opportunity for financial institutions and utilities brands.

• The proportion of consumers who are willing to spend high in comparison to their income on mobile purchases has increased significantly.

• BlackBerry 10 – merging work/play

• By 2014, there will be more than 70 billion mobile app downloads from app stores every year.

• Samsung F8000 – truly interactive TV

What are three cool things you should know:

Questions

conveniencegrowth markets

product research

entertainment

consumer trustbanking

Marjorie DeHey – MEF GM, North America – [email protected]

Thank you to Gary Schwartz, CEO of Impulse Mobile and Author of The Impulse Economy and Fast Shopper, Slow Store for his contribution

Follow Us on Twitter: @MEF

For more information on MEF please contact:

Thank You

Download the Executive Summary www.mefmobile.org

mailto:[email protected]

http://www.mefmobile.org/

worldwide mobile content and commerce usage and trends - what you need to know to thrive in a global...

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