The skyrocketing number of smartphone users and amplified mobile marketing budgets tell us one thing: the scope of mobile is broadening more and more each day.
As we near 2012’s median, here are insights into the booming world of mobile:
- Mobile Web is predicted to reach 2 billion users by 2015.
- The largest age group of mobile Web users is ages 25-34, making up 25.6% of the user population.
- When looking at the entire population of mobile Web users, 51.3% are male and 48.7% female.
- An average mobile device user has their smartphone with them 23 hours per day.
- The most common mobile activity is text messaging (74.3%), with photos (60.3%) and email (40.8%) trailing close behind.
- 58% of all SMS opt-ins are done by the 25-34 age group.
- The average mobile marketing/advertising budget is between $75,000 and $100,000 per campaign.
- The mobile advertising market is expected to surpass $5 billion by 2015 (compared to the $1.24 billion in 2011).
- Mobile search makes up the largest investment of advertisers (49%), and following that are display advertising (33%), SMS/MMS marketing (12.2%) and mobile video (5.8%).
- 71% of smartphone users have used mobile search after seeing an ad.
- Nearly 1/3 of consumers say mobile is their go-to shopping method.
- 87% of consumers shop via websites on a laptop, 14% on a smartphone and 9% on a tablet.
- Men and women engage differently on mobile devices when it comes to shopping: women use smartphones to make their shopping experience more social, while men use it to find information about their potential purchases.
- Mobile coupons generate 10x the redemption rate as traditional coupons.
- 70% of smartphone users use their devices when shopping in-store, and 29% who do end up purchasing the item online–this is called the Showroom Effect.
- 53% of those mobile searchers have made a purchase after a smartphone search.
- 50% of smartphone owners have scanned QR codes, and 18% of them made a purchase after scanning.
- 48% of companies plan to invest in advertising with QR codes in 2012.
So, there you have the numbers and be you informed! Ignorance is no longer an excuse for marketers not tapping into mobile. It’s clear that advertisers certainly have a wide range of mobile options to choose from, with mobile Web, advertising, SMS, coupons and QR codes at their fingertips.
Hello generation mobile!
Check out the following sources to see where the numbers came from:
As a foreign correspondent in London 10 years ago, my job was to unearth innovative new startups for my business magazine’s readers. I traveled across the Continent, from Helsinki to Milan, meeting entrepreneurs, venture capitalists and big company researchers to write about the next big thing.
In the summer of 2002, I attended a launch party for a startup demonstrating their nascent service at a swanky Haymarket bar. Upon walking in, there were printed instructions to visit one of the tables playing music and then navigate through a maze of confusing WAP mobile phone menus. What resulted was my phone magically telling me the name of the song playing in the room. The event was Shazam’s coming out party. It took almost 10 years for the music recognition app to truly gain widespread recognition but, for me, it was the first time I saw firsthand what was only possible with a mobile phone.
Ten years later, publishers are still plotting the best ways to engage readers on mobile devices.
The stakes are high. As technology continuously improves, the percent of content consumed from mobile devices increases. On average, 20% of sites’ content is now being consumed in mobile browsers. But, evolving technology platforms and consumption patterns makes it far more difficult to succeed on mobile than it is on desktop.
And the challenge of building a great mobile experience isn’t solved by simply ensuring the content displays in the right way in the right environment. The bigger challenge is to figure out how best to match the content and mission of that publisher with the unique properties associated with varied operating systems, devices, browser and app environments.
Different technology translates into different consumption patterns. For example, users are consuming content in very different ways in apps than they are on the mobile Web. Gaming and social apps account for 80% of all app activity. By comparison, those activities account for just 40 percent of time spent on the desktop. Mobile Web consumption more closely mirrors what people do at a desktop with news, utilities, entertainment and topic-specific content accounting for the bulk of activity. Most publishers are responding to the rapidly evolving technology landscape with a wait-and-see approach.
A brave few are experimenting early, and with promising results.
Food52 has tailored its approach to the screen size. Its iPhone app is focused on its Hotline, a forum for user questions and answers. To take advantage of the bigger screen and encourage users to take their iPads into the kitchen, Food52’s Holiday app included a variety of entertaining tips, such as step-by-step instructional videos on how to prepare a dry-brined turkey or Tuscan onion confit.
The logical first step for publishers into mobile publishing is to create a mobile-optimized site. SAY makes that easier with technology used by Remodelista that automatically resizes the page based on the screen size the content is being accessed from.
Still others are pushing the envelope even further. Kinfolk Magazine’s luminous iPad app complements its quarterly books about small gatherings by encouraging readers to experience the content in a way unique to a tablet device. Whether swiping down for a peek at an intimate dinner by a freezing lake or rearranging the layout and size of photos of a salty dinner of buttered clams and beer in Maritime Canada, readers have never been able to personalize content like this before.
Since the launch of the first iPhone in 2007, the production and mainstream usage of smartphones has exploded. The device opened a world of innovation in mobile technology, which was soon followed by a similar boom from apps.
Today, we rely on apps to do just about everything, from keeping us organized to pure entertainment. Millions of downloads later, the app economy is as strong as ever.
App development has created 466,000 jobs across all available platforms, according to a survey performed by TechNet. This includes local baristas, since many developers rely on coffee shops to get work done.
Our friends at Frugal Dad have created this infographic about the economy and how it’s been affected by smartphones and apps.
A prediction for the future of smartphone growth makes some bold projections: By the end of this year, there could be more smartphones on the planet than humans, and by 2016 there could be 10 billion smartphones. That’s 1.4 mobile devices per capita.
In its global mobile data traffic forecast, Cisco predicts that a solid chunk of growth will come from the Middle East and Africa, with a compound annual growth rate of 104%, followed by Asia Pacific with 84% growth.
What will people be doing with their smartphones in the coming years? Cisco predicts that by 2016 two-thirds of the world’s mobile data traffic will be from videos, increasing 25-fold between now and then. Mobile network connection speeds will increase as well, according to the company.
Check out the video above to learn about what changes in smartphone data traffic we might expect in the coming years.
According to new data out from comScore, the total number of Americans who own mobile devices now tops 234M, with 90M of which being smartphones. The study covers the three-month average period ending October 2011, and includes a survey of more than 30,000 US mobile subscribers.
In terms of mobile OEM data, Samsung remains the top handset manufacturer overall with 25.5% total market share, followed by LG with 20.6% marketshare and Motorola with 13.6%. In terms of mobile operating systems, Android holds on to the number one spot — now sitting at 46.3% total market share. Apple comes in at second place with 28.1% of the market — up only one percentage point over the proceeding three-month period. RIM rounded out the top three with 17.2% share, followed by Microsoft in fourth place with 5.4% and Symbian in fifth place with just 1.6%.
Looking at mobile content, 71.8% of U.S. mobile subscribers used text messaging on their mobile device in October — up 1.8 percentage points over the last reporting period. Mobile Web browsers were used by 44% of subscribers — up 2.9% – while downloaded applications were used by 43.8% — up 3.2%. Use of social networking sites and blogs increased 2.2% to 32.3% total, while mobile gaming came in at 29.2% — up 1.4% from the previous period.
Open rates for email on mobile devices increased significantly in the first half of 2011 compared to the last quarter of 2010, therefore experts say it is a necessity for marketers to make sure their emails are optimized for mobile, according to a new report from Knotice.
Most consumers with smartphones use their devices to check e-mail to some degree. Digital marketing firm Knotice makes the case, and it’s one that cannot be ignored by retailers that want to get the most from their e-mail marketing campaigns.
In the first half of 2011, 20.07% of retail marketing e-mails were opened on a smartphone or tablet, Knotice finds in a study of 6.5 million retail marketing e-mails. This compares with 13.36% in the fourth quarter of 2010. What’s more, in the first half of 2011, consumers clicked on links in 11.00% of all retail marketing e-mails.
What this means is that if an e-mail is sent in its PC format, it will appear small and crunched on the smaller screen of a smartphone, making it less intriguing to consumers. Optimizing an e-mail for viewing on a mobile device—whether done through tweaks to the width of a PC e-mail or designing separate e-mails that perfectly fit the smaller screens—can lead to greater consumer engagement in a campaign.
But when optimizing e-mail and web content for mobile users, it’s important to optimize the entire experience, not simply how the e-mail message itself looks on a phone’s screen, Knotice says.
“Marketers need to be thoughtful about how the message is rendered, but more importantly, how the user can take action in the most convenient way possible,” the firm says. “Whether that means clicking through to a mobile-optimized site, tapping on a phone number to call a customer service agent, or even users providing their e-mail address to have a shopping cart, wish list, product information or follow-up reminder sent to them so they can complete the action when more convenient. Focus needs to be on optimizing the e-mail as well as the post-click experience in tandem for an overall satisfying user experience.”
Knotice studied more than 150 million marketing e-mails in 11 industries. 20.24% of all marketing e-mails are opened on a mobile device, according to the study. Knotice breaks down mobile opens by device. 12.78% were opened on an iPhone, 3.92% on an iPad, 3.15% on an Android device, 0.22% on the now-defunct HP webOS (formerly Palm), 0.05% on a device running one of the Windows mobile operating systems, 0.01% on a BlackBerry and 0.11% on other devices.
This report by VisionMobile takes a look at today’s mobile marketplace, revealing global smartphone penetration and adoption trends.
With all the talk of iPhone vs. Android these days, it’s easy to forget how the majority of the world’s mobile users still make calls and access data: via feature phones. A recently released report (download) from mobile strategy firm VisionMobile takes a look at today’s mobile marketplace finding that, despite the sharp rise in smartphone shipments over 2010 and 2011, global smartphone penetration (by OS) is at just 27%.
Smartphone adoption varies wildly by region, the report finds. Not surprisingly, those markets where 3G coverage is extensive and subscription plans are “post-paid” (as opposed to pre-paid) see the highest smartphone adoption rates. Meanwhile, in markets dominated by pre-paid subscriptions, the real battle is price. Here, Nokia’s mid-tier Symbian platforms and BlackBerry consumer-targeted models are still holding onto significant market share. However, both platforms are now facing threats from low-cost Android phones, thanks to the latter’s pricing versatility. Android devices today sell for anywhere from $100 to $750 (USD), allowing the phones to compete both on the high-end and the low-end of the pricing spectrum.
In the North American and European markets, smartphone penetration is the highest, with 63% and 51% market share, respectively. In the Asia-Pacific region (19%), Africa/Middle East region (18%) and Latin America (17%), it’s much lower.
As for today’s smartphone leaders, it really is an iPhone vs. Android world out there, since former mobile leader Nokia was slow to react to the iPhone’s coming, and steadily lost ground in the high-end smartphone market. Nokia’s decision to move from Symbian to Windows Phone allowed other Android players an edge, including Samsung, HTC, Motorola, LG, Sony-Ericsson as well as newcomers like Huawei, ZTE, Acer, Dell and Asus.
Despite the numerous differences between the two leading smartphone platforms, iOS and Android, there are some notable similarities. Both originate from non-telecom players. Both are monetized indirectly. (Instead of software license sales, they either profit from high-margin device sales or, in Google’s case, enhancing its online ad business). And both are driven by companies able to sustain investments of billions of dollars in order to develop an OS and create the accompanying developer and app ecosystems.
And yet, even though it’s “Android vs. iPhone” in terms of consumer choice, VisionMobile says there won’t be a single winner in the smartphone race. Both platforms have reached critical mass with hundreds of millions of users, making it almost impossible to displace them. As for RIM and Windows Phone, the jury’s still out on whether or not there’s even room for a third player and whether Microsoft, with Nokia’s help, can move into position number three.
Although the report doesn’t dive into speculation about what happens next, when the rest of the non-smartphone world upgrades their handsets, it does examine the network effects belonging to today’s dominant players. Not only are these platforms winning because of their technological sophistication, but also because of their application ecosystems. With 500,000+ iOS apps and 300,000 on Android, both platforms have reached critical mass. When that occurs, the platform begins to grow exponentially. However, app counts alone aren’t the ultimate measure of long-term health – the sustainability of the developer ecosystem is.
What’s interesting is to see the network effects in terms of mobile apps plotted out for all the top smartphone players. Below, the graphs show the number of apps available on a particular platform at a particular point in time, and the number of devices shipped for that platform in the quarter just preceding it. The resulting charts show just how popular Android and iOS are, and how difficult a battle it will be for a third major smartphone player to emerge.
You can also see the challenge that Apple faces as it attempts entry into emerging markets to take its share of the feature phone upgraders. As the report notes, Apple has high margin device sales, which means it doesn’t have as much flexibility in terms of hardware discounts as Android does with its $100 phones. But Apple did something else recently – when it brought out the iPhone 4S, it greatly discounted the prices of older model iPhones. The iPhone 3GS became free and the iPhone 4 was just $99, both with 2-year commitments. However, while that’s a viable strategy in attracting price-sensitive consumers in post-paid markets, it’s not necessarily going to be enough to attract pre-paid consumers to switch subscription plans. It’s the data bill that’s the killer, not the initial cost of the phone.
Apple knows that it needs compete in the pre-paid market, though. On its Q3 2011 earnings call, COO, now CEO, Tim Cook said, Apple is not avoiding that market. ”We don’t want to avoid that market. We know that we need to play there in order to have the kind of volumes that we’d like to have.”
And yet, when it came to its pre-paid strategy, Cook only mentioned getting customers to switch plans. ”In some cases, we convince someone to start a post-paid plan because in the long-term, I think, that’s better for the customer, the carrier and us.”
If that’s Apple’s pre-paid strategy, it looks like the iOS vs. Android battle in emerging markets may just now be heating up. And given how much of the world is still yet to upgrade, it’s a long fight ahead.