A Mobile Future

Job: 47313November 2013

What We Did And Why We Did It…

⁄ IAB commissioned RED C to assess current customer attitudes towards and usage of mobile and tablets in Ireland, while also developing an understanding of expected usage in the future.

⁄ The context for this study was to enable advertisers to better understand the mobile advertising opportunity in the Irish Market.

⁄ In order to do this, a two phase approach was taken:

1. Online survey with smartphone users – capturing customer behaviour on a micro level.

2. Expert interviews with industry experts – collecting an in-depth evaluation of current and future usage on a macro level.

⁄ All quantitative fieldwork was conducted between 15th – 23rd

October, while qualitative research took place between 1st –6th November.

Who We Spoke To

⁄ 15 minute online surveycompleted by 400 smartphoneowners aged 16+

⁄ The margin or error for this sample at a 95% confidence level is +/- 4.9%

⁄ All respondents were recruited using our RED C Live Panel of over 24,000 members.

⁄ Quotas were set in terms of gender, age, social class and region to ensure a nationally representative sample.

+Draws on research carried out at the start of year across the globe by WIN Gallup International for the GSMA.

⁄ 6 in-depth interviews with industry experts:

‒ Justin Cullen MD, Radical

‒ Kevin FoleyCommercial Director, Adforce

‒ Fintan LonerganMD, O2 Media

‒ Shenda LoughnaneHead of Digital, Aegis Media

‒ Garret O’BeirneHead of Digital, OMD

‒ Michelle O’KeeffeMD, Electric Media

How is mobile ownership and usage growing?

The Rise of Mobile Technology Ownership in Ireland

32

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Apr-12 Jun-13 Jun 14?

Smartphone Ownership

9

3042

Apr-12 Jun-13 Jun 14?

Tablet Ownership

Smartphone Ownership in Ireland Ahead of Other Major European Countries including Spain, Belgium, Portugal and Italy

80

6865

63 62 61 61 6158 57

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Smartphone Ownership Across the WorldIreland

Western Europe

%

Source: WIN GIA GSMA Survey Jan 2013

We Love Our Smartphones

62%Cannot live without their phone

68%Reach for their

phone when bored

54%Love to find

new apps/ ways of using

the phone

“It’s the early days of smartphones.

Everything is exciting and people like to show

off new apps and functions to friends.”

“The smartphone is seen as my channel to the real

world.”

Mobile Now More About Online

41%of smartphone owners use their

mobile more for online than calls/text

26%of tablet users feel that it has replaced their PC

“The smartphone allows customers to have information at their

fingertips. This is a game changer.”

“Mobiles are becoming less and less about communication and more

about life.”

Time Spent Online is Growing

2hours

2.5hours

3hours

Hours Online per day for personal reasons

2009 2011 2013

Driven by a Rise in Time Spent Online through Mobile Devices

10.5

131

3 0 5

45

100

154 10

0

20

40

60

80

100

120

140

Smartphone Desktop/laptop Tablet Smart TV Gaming

Chart Title

2011 2013

Minutes Online per Day by Product Type

26% of tablet owners state

that it has replaced their PC

“Consumers go online in the morning when turning off their alarms. Then when commuting to work. Then in

lunch break. Again, late evening.”

Frequency of Online Interaction by Device is High

• (Base: All Who Use Device To Go Online)

(Q.13)

78 86

4224 13

1512

42

3833

Smartphone Laptop/desktop Tablet Smart TV Gaming

Monthly

Daily

What are the opportunities in changing usage?

Dual Screen Activities Provide Opportunities

66%

23% 89%34%

46%

80%WeeklyWeekly

Less Often

Less Often

NeverNever

Browse Smartphone/tablet while watching TV

Browse info on Smartphone/tablet relevant to what you’re watching

“This opens up new ways of talking to

consumers, for example Shazam for exclusive content and offers.”

“Dual screening puts an emphasis on live TV. People want to be part of the social media conversation.”

Mobile Relationship With In-Store Purchases

• (Base: All Who Use Device To Go Online)

(Q.13)

207

Find products/service info on

phone while in a store

%

Purchaseproduct online

having viewed in store

%

6880Ever

Weekly

“Some retailers in the UK have showrooms

where you can see the product but you have to

buy online.”

“This is a big challenge for retailers. Consumers can check competitor prices while in your store and

even buy online.”

Direct Purchasing Online Through Mobile

• (Base: All Who Use Device To Go Online)

(Q.13)

9 9

Purchase online using

a tablet%

Purchase online using Smartphone

%

7460

Ever

Weekly

“While mobile has a high share of online

consumption, it continues to struggle in terms of spend. PCs are still preferred for

bigger purchases.”

“With time, purchasing will move towards smaller

screens. We are currently conditioned to use PCs for

bigger purchases; it offers a sense of comfort and

security.”

So what is the best way to reach consumers through mobile?

The Use of and Application of Apps

6

13

19

74

Smart TV

Desktop/laptop

Tablet

Smartphone

Column113%of all time spent online is via apps, this translates to

26 minutes per

day

Use of apps via Smartphone accounts for a much higher proportion of

time spent online

“There is a disconnect between app download and usage. Usability is

dependent on the downloader having a relationship with the app.”

12 Month Future Projection for Apps(Base: All Going Online Through Device)

(Q.14)

52%

44%

47%

Expect to Increase App Usage by

Device

54%

Love to check out new apps/find

new ways to use their smartphone

“With more mobile optimised websites, apps could diminish in

importance.”

Mobile Optimised Websites

• (Base: All Who Use Smartphone To Go Online; n=400)

(Q.18/19a/b)

87%are interested in mobile

optimised websites

“The entire journey need to be mobile optimised…a final click to a badly optimised landing page destroys a campaign”

“Companies need to prioritise the mobile: Mobile first, PC last. Mobile

sites need to be transactional”

What are the future consumer desires for mobile?

Future Technology Preference and Interest

• (Base: All Who Use Smartphone To Go Online; n=400)

(Q.18/19a/b)

2

15

6

7

7

20

17

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3

12

7

8

14

13

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17Universal remote control

Cloud

4G

Product scanner

Location based information

Location based offers

Mobile wallet

Shopping partner

1st Preference%

2nd Preference%

Very interested%

55

52

50

46

42

38

36

23

20%

13%50%

The Speed of 4G is Key Interest - Increased Streaming!

Very Interested

1st Preference%

2nd Preference%

4G“The concerns of high bills are

gone with flat fees for data usage”

“The need for speed appears to be unlimited – consumers want to watch movies, download music, play games

on their phone from everywhere without any delay.”

17%

13%52%

Cloud Demand to Enable On-the-Go Content

Very Interested

1st Preference%

2nd Preference%

Cloud “Immediate access to your photos, music, files from everywhere. You don’t need to worry about what

device to bring”

“One of the key worries about phones is loss of information – the cloud

technology solves this”

17%

17%55%

Taking Control Through Smartphones

Very Interested

1st Preference%

2nd Preference%

Universal Remote Control

“It’s difficult to predict whether this will happen. It is exiting but does it offer any real consumer

benefits?”

“Your fridge will tell your phone that you are out of milk and you can press

a button to order”

15%

12%

36%

Taking Control Through Smartphones

Very Interested

1st Preference%

2nd Preference%

Mobile Wallet“Mobile wallet and payments will be big. But consumers need to feel safe

with having everything on their phone.”

49%limit their smartphone usage due to security

concerns

“Life is being continuously outsourced to our smartphones.”

How do we ensure mobile advertising is well received?

Mobile Advertising – Friend or Foe?

Only 19% claim to be specifically

interested in advertising funded

content

19%

“Mobile advertising is a value exchange, make it relevant and people are prepared to accept

advertising.”

“Advertising must be personalised; less noise, more

relevance.”

Mobile Advertising – Friend or Foe?

BUT

35%

61%

think its fine for companies to advertise in return for great Apps, Games etc.

believe ads on their mobile are valuable

“If given a choice, most would prefer ads over

paying to watch movies or videos online.”

“We still need to work out how ads on mobile can become as effective

as ads on PC.”

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More People in Ireland, than in Any Other Country in Western Europe, Believe Ads on their Mobile are Valuable

Ireland

Western Europe

Whether Ads on Mobile are Valuable

Ads On My Mobile Are Most Valuable When They Are…

33%

14%

21%

28%

4%

11%7%

21%

56%

5%

19%

6%

36%34%

4%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Relevant to myinterests

Relevant to mycurrent location

Save me money Not valuable to me Not sure

Global N=54,121 Western Europe N=12,918 Ireland N=1,000

…Irish people are much more likely to see mobile ads as valuable, particularly if they save the owner money!

Second only to Portugal across the world!

The Challenges with Mobile in your Plan

Key Challenges to Successful Implementation

Mobile

Putting Mobile at the heart of your

ad plan

Keeping up with

Consumers & Technology

Being Relevant

and Contextual

Providing Value & Enabling

Easy Redemption

Putting Mobile at the heart of your plan…

⁄ “Companies need to prioritise the mobile: Mobile first, PC last. Mobile sites need to be transactional”

What do we need to do:

Put mobile at the start of your campaign, and work out from that

New advertising model – internet advertising model unlikely to be fit for mobile “Creativity is key, there is a need to redefine advertising”

Ensure every aspect of the campaign and our online offering across the board is optimised for mobile

Ensure your campaign can be utilised cross platform, whatever device is used

“The entire journey need to be mobile optimised…a final click to a badly optimised landing page destroys a campaign”

Keeping up…

⁄ “Early days” – lots of trial & error

⁄ Functions/apps liked for fun/novelty but this will change as market mature – need for relevance and context

⁄ Lots of development are consumer driven - demand for 4G, Cloud and Taking Control

What do we need:

Convergence of platforms – “Technical issues are the biggest barrier to growth”

Keep abreast of ever changing consumer needs and usage

Introduce technologies/apps that cover real needs in the market place, utilise the mobile phone technologies and are contextual – “Avoid too many fads”

“Too many companies try something in blind,

we need a more planned approach to

optimise this platform.”

“Customers are there; the market

needs to catch up.”

Being Relevant and Contextual…

⁄ Consumers are open to advertising content – more so in Ireland than other countries

⁄ Managing frequency is important – you don’t mind if the message or offer is relevant.

What do we need:

Be relevant/contexual

Utilise phone functionalities, e.g. GPS, contacts, etc.

Utilise new technologies, e.g. near field or Shazam

“Think about mobile as a connection point throughout the day, and make campaigns

that build on this.”

1. Run media platforms to provide rich content rather than run straight to an app,

2. Use technology built in to the phone to engage,

3. Optimise final landing page

“Smartphone advertising allows for deeper, richer levels of

engagement with consumers.”

Providing Value & Enabling Easy Redemption…

⁄ Mobile gaining importance for entertainment & search but remains behind PC in terms of spend

⁄ “Consumers set aside time for complex transactions. They log onto their computer and complete transactions there”

⁄ Lack of transactional functionalities on mobile is the key barrier for growth – non-optimised sites, small screen, lack of keyboard – concerns about security is much less of an issue.

What do we need:

Mobile/tablet optimised sites for transactions

Reward (e.g. vouchers/discounts) for purchasing through these channels – to prompt further use

“Often mobile sites provide rich product information but then link to PC website for

buying.”

“Smartphone’s are the dominant internet

connection and the market needs to realise that: Mobile first, PC last.”