clustering by mobile usage and behaviour – the many faces of smartphone users in south africa -...

November 5 & 6, 2014

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Upper Eastside, South Africa

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CLUSTERING BY MOBILE USAGE AND BEHAVIOUR – THE MANY FACES OF SMARTPHONE USERS IN SOUTH AFRICA Ryan Smit GfK Digital Market Intelligence

2 © GfK 2014 | GfK Digital Market Intelligence

GfK

With headquarters in Nuremburg, Germany, GfK is present in over 100 countries around the world. We have been trusted for over 80 years.

Our African footprint extends into 36 countries and some of the biggest economies in Africa.

We have experts in every major industry to answer our clients’ key market questions and the techniques to understand what is happening where and why

TRACKING CONSUMER MOBILE BEHAVIOUR, ANONYMOUSLY AND PASSIVELY

GfK has created a mobile application called FUNDI in sub-Sahara Africa to build a community of consumers who can benefit from free content related to education, business & entrepreneurship – something that we know is close to their hearts. This means access to the communities’ smartphone usage data (via GfK’s proprietary LEOtrace technology which users download as part of the app) linked to demographic information: Internet as well as app usage, location data and much more. Understanding sub-Sahara African customers via their mobile phone! This, of course gives you with the ability to see and analyze behavioral patterns.

The FUNDI Application

Business & entrepreneurial content is popular among South African of all backgrounds - according to AMPS, only 15% of the readers of Entrepreneur Magazine are self employed.

Even when comparing the consumptions patterns between consumers who are self-employed (entrepreneurs) and those who are not, there are no significant differences in mobile usage patterns.

It should also be noted that FUNDI is not targeted specifically at entrepreneurs, but any consumers who are interested in business, education and entrepreneurship.

Source AMPS 2013 (n=22k)

Self-employed

Use Cellphone for: Yes No

Banking 6% 4%

Chat 19% 18%

Dating 2% 3%

Directory 3% 3%

Apps 6% 7%

Podcast 2% 2%

Email 8% 8%

Gambling 1% 1%

Games 8% 10%

Instant Msg 20% 18%

Radio 4% 5%

Music 10% 12%

Search 12% 14%

Social Networking 14% 15%

Why choose business and entrepreneurship as the theme of the application?

No part of this document may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of GfK South Africa

What kind of data points do we measure for smartphone app users?

How? What? Who?

Structural Information • Socio-demographics from

community registration form (to include age and SEC)

Apps & Internet • Application Usage • Browser Search Queries • Browser URLs

Data Traffic • 3g vs Wi-Fi • Upload vs Download

Communication (Q4 2014)

• Calls • SMS

Network (Q4 2014)

• Network Provider • Connection Type • Signal Strength • Tower ID & Location

Device • Model • Manufacturer • Operating System Version

Potential Linked Data Points • Display Size • Processor • CPU Cores • RAM • 2G/3G/4G • Storage (GBs) • Memory (MBs)

Where and when?

Time • Local Time • UTC time

Location (Q4 2014)

• Longitude/Latitude • Accurancy and source


Period:

Data Collected & Analysed

May June July Sample Size:

Data Collected:

15 million records, 200 million data points!

1138 Users


FUNDI Data Weighting Process Overview

NETWORK PROVIDER

QUARTERLY REPORTS*

AMPS 2013 Data – Filtered by those who have a cell phone, and

report using data dependant activities (Apps, Browser etc.)

Extracted

# of

Smartphones in South Africa

Segmented by

UNIVERSE (# of

Smartphones, by Gender, Age, Race

and Province, Device Type)

Compared to…

FUNDI PANEL

Demographics by Gender, Age, Race

and Province, Device Type.

Panellist Weightings

TIME each panellist

has been in the

in panel during reporting

period

SMARTPHONE USAGE TRENDS


On average, consumers spend 117 minutes of every day on their smartphones.

Time spent on a smartphone increases throughout the day from around 3 minutes per hour in the mornings, and peaks during the evenings to almost 8 minutes per hour.

Total time spent on smartphone – by time of the day

Source: GfK SA Smartphone Usage Data – May-July 2014 – Sample Size: 1138 - Usage is defined as the total amount of time their device is active (not in stand-by mode) excluding

home screen usage.

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The average female consumer spends 122 min of her day on her smartphone, while males spend an average of 113 minutes on their devices.

The usage patterns throughout the day are fairly similar, however females spend an even greater amount of time on their devices between 20:00 and 22:00 as compared to males.

Total time spent on smartphone – by time of the day & gender

Source: GfK SA Smartphone Usage Data – May-July 2014 – Sample Size: 545 - Usage is defined as the total amount of time their device is active (not in stand-by mode).

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In terms of share of usage, the most time, by far, is spent on communication activities (44%) followed by Social Activities (15%), Gaming (15%), Browsing (8%) and Media & Video (5%)

These combined account for 87% of total time spent on a smartphone, with the other 13% split among the remaining categories.

Share of time spent on smartphone by application category

Source: GfK SA Smartphone Usage Data – May-July 2014 – Sample Size: 1138 – Share of time is measured as the total time spent using those applications during the reporting period.

Categories are based on Android Play Store categorization. Categories excluded: Tools, Personalization, Libraries & Demo, Live Wallpapers

44%

15%

15%

8%

5%

2% 2%

1%

1% 1%

1%

1%

1% 1% 1% 1%

Communication

Social

Games

Browsing

Media & Video

Music & Audio

Photography

News & Magazines

Books & Reference

Travel & Local

Productivity

Sports

Entertainment

Finance

Lifestyle

Other

13 © GfK 2012 | GfK Digital Market Intelligence | 14. February 2012

WHAT CAN MOBILE BASED CLUSTERS TELL US ABOUT CONSUMERS?


Cluster Analysis Methodology

Cluster analysis seeks to identify natural clusters in a population by maximising the similarities within clusters, and maximising the difference between clusters.

In order to identify behavioural differences, our data was clustered using a combination of the 5 most used application categories…


Input variables, and examples per application category

Communications

•WhatsApp

•BBM

•Phone •Messaging

•Email

•etc.

Social

•Facebook

•Instagram

•Twitter •Google+

•Pinterest

•etc.

Games

•Candy Crush Saga

•Farm Heroes Saga

•Clash of Clans •Hay Day

•My Talking Tom

•etc.

Browsing

•Internet Browser

•Chrome Browser

•Opera Mini •Firefox Browser

•UC Browser

•etc

Media & Video

•Gallery

•YouTube

•VLC for Android Beta •Movies

•MX Player

•etc.


So what clusters emerged?

7 segments emerged from the data, each with specific characteristics which differentiate them from other segments of smartphone users.

So what are the segments, and what can they tell us about smartphone users in South Africa?

Surfers

(7%) Heavy

Gamers (15%)

Heavyweights

(19%)

Video Gamers

(7%)

Lightweights

(29%) Chatters

(14%)

Socialites

(9%)


R15k-R40k R40k+

38% 14%


R15k-R40k R40k+

40% 8%

24.3%


R15k-R40k R40k+

37% 5%


R15k-R40k R40k+

11% 5%


R15k-R40k R40k+

37% 9%


R15k-R40k R40k+

30% 4%


R15k-R40k R40k+

17% 2%

LINKING CLUSTERS TO APPLICATION USE: COMPARING USAGE PATTERNS OF THE TOP SOCIAL MEDIA PLATFORMS


Usage of Social Networking by Cluster

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Usage of Top 5 mobile social networks across clusters

Facebook Instagram Twitter GooglePlus LinkedIn

As would be explained previously, Socialites are most active on Social Networking, and this applies across all social networks.

Heavyweights are also extreme users of social networking, including both Instagram and Twitter, the 2nd and 3rd most used social networks on smartphones.

Source: GfK SA Smartphone Usage Data – May-July 2014 – Sample Size: 1138


Socialites – Usage of social networking over a day

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Usage of top 5 social networks over the course of a day

Facebook GooglePlus Instagram Twitter LinkedIn

Socialites spend most of their time on Facebook throughout the day, but over time they increase their usage of both Instagram and Twitter to peak in the evening between 18:00 and 22:00.

There is another small peak of Facebook usage in the morning, as users check their News Stream just after waking up.

Source: GfK SA Smartphone Usage Data – May-July 2014 – Sample Size: 1138


FUTURE EVOLUTION OF CLUSTERS


Future evolution of the smartphone clusters……

Activity Based

• Communication

• Social Networking

• Wikipedia

• Games & Media

• Tinder

Needs Based

• Interaction

• Community

• Information

• Leisure

• Love and Intimacy


THANK YOU

#MRMW

Title Sponsor Silver Sponsors Bag Sponsor

Association & Media Partners

November 5 & 6, 2014

DoubleTree by Hilton Hotel Cape Town

Upper Eastside, South Africa

#MRMW

Organized by

clustering by mobile usage and behaviour – the many faces of smartphone users in south africa -...

Business

gfk sa smartphone usage

location data

total time

smartphone usage trends

app usage

mobile usage patterns

kind of data points

smartphone app users