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All About Android

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Title of Presentation
Copyright 2010 The Nielsen Company. Confidential and proprietary. 2011

All About Android


September 15th, 2011
Presented by

Monica Bannan
VP of Mobile Media Nielsen

Don Kellogg
Director of Telecom Research & Insights Nielsen

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Title of Presentation
Copyright 2010 The Nielsen Company. Confidential and proprietary. 2011

Agenda The Rise of the Smartphone Why Android Matters Latest Android Usage Trends

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Smartphones have come a long way in the last five years

There was no iPhone, no Android devices Smartphone penetration was in the single digits (and they werent that smart) No Apps Phones were for phone calls

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The march of smartphone adoption continues


Smartphone Penetration
US Mobile Insights, National

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More consumers are engaging in media rich activities than ever before

Smartphone Subscribers Engaged in Rich Media Activities (Millions)


Last 30 Days, US Mobile Insights, National

Year-over-year growth

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All About Android


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Why Android Matters

In Q2 2011, Android and iOS devices accounted for ~80% of all smartphone purchases in the US
Operating System Share of Recent Smartphone Acquirers
US Mobile Insights, National

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All About Android


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Who are you reaching on each platform? While iOS and Android are similar, significant differences exist
Age by OperaHng System
5% 12% 17% 22% 27% 18% Android OS 6% 12% 15% 23% 27% 16% 5% 15% 20% 23% 24% 13% 6% 13% 17% 22% 26% 16% 18% 24% 20% 15% 13% 11% Ages 65+ Ages 55-64 Ages 45-54 Ages 35-44 Ages 25-34 Ages 18-24 Android OS Apple iPhone RIM All OS BlackBerry OS Smartphones Feature Phones 49% 51% 50% 50% 48% 51% 49% 50% 50% 52% Female Male

Gender by OperaHng System

Apple iPhone OS RIM BlackBerry All Smartphones Feature Phones OS

Income by OperaHng System


9% 27% 16% 20% 12% 13% 5% Android OS 16% 17% 9% 7% 3% 9% 39% 7% 36% 9% 32% 15% 19% 11% 11% 4% 11% 18% 14% 16% 19% 10% 10% 3% 20% 14% 16% 7% Decline to answer 100k + 75k-100k 50k-75k 35k-50k 15k-35k < 15k

EducaHon by OperaHng System


21% 30% 28% 25% 20%
Greater than BA/BS

36% 37% 29% 40%

37%

33%

Associate/BA/BS degree Some college HS graduate

23%

22%

26%

28% 16% 3% Feature Phones

Some HS or less

Apple iPhone OS RIM BlackBerry All Smartphones Feature Phones OS

11% 10% 8% 8% 3% 2% 1% 2% Android OS Apple iPhone RIM All OS BlackBerry OS Smartphones

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All About Android


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The Android ecosystem is complex


Q2 11 Manufacturer Operating System Share Postpaid Smartphone Owners <1% HTC 14% HTC 6% HP Nokia 2% 2%

Motorola 11% Samsung 8% Other 6%

Apple 28%

RIM BlackBerry 20%

Samsung 2% Other 1%

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All About Android


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Different consumers use different brands of smartphone


Android Operating System Share Postpaid Smartphone Owners Income Distribution by Handset Manufacturer- Android
< 15k 15k-35k 35k-50k 50k-75k 75k-100k 100k + Decline to answer

HTC 4% 12%

12%

20%

18%

25%

9%

Motorola 4% 9%

9%

17%

17%

34%

8%

Samsung 4% 14%

14%

21%

12%

25%

9%

Other

7%

19%

14%

21%

11%

19%

9%

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All About Android


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Apps are important to smartphone purchasers


Importance of Available Apps when making Smartphone Purchase

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All About Android


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The market is the main vehicle of Android discovery iOS users are more likely to search by featured or recommended
Method of ApplicaHon Discovery
Android Market Store Searching the ApplicaHon Store a Friend/Family Third Party Website Apps PromoHng other Apps Device homepage Newspaper/Magazine/Radio Other Television AdverHsement Carrier Homepage Email Tips from my Carrier Sync SoVware ( iTunes, etc) 19% 18% 12% 16% 11% 9% 9% 13% 7% 6% 7% 10% 6% 5% 4% 6% 3% 15% iOS App Store 53% 46% 50% 66% Category Most Popular Apps Specic App User RaHng Featured App App Recommended by App Store Other AlphabeHcally 8% 6% 4% 6% 7% 16% 15% 14% 21% 27% 26%

Search ApplicaHon Store By...


Android Market Store iOS App Store 41% 43% 37% 39%

13%

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All About Android


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Ratings and reviews are an important source of information for the majority of Android users
Importance of Ratings & Reviews
Past 30 Day Android App Downloaders

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All About Android


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Latest Android Usage Trends

Metered measurement allows unprecedented levels of accuracy and the ability to innovate based on observation

Sometimes, customers are so accustomed to conditions that they dont think to ask for a new solution.
Spark innovation through empathic design Harvard Business Review November December 1997

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All About Android


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iOS and Android smartphone meters live and reporting audiences since January 2011

iOs"

Android"

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All About Android


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Manufacturers leverage the Android platform in different ways and engagement differences emerge on core device functions
Device Function Usage by Manufacturer
Nielsen Smartphone Analytics, June 2011

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All About Android


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But what about media?

The connected consumer is evolving quickly!


Content is dynamic; trends form and diminish fast Activities on the phone vary by segment There are clear tiers of reach Dayparting varies by content type Apps are driving majority of time spent

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All About Android


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Despite hundreds of thousands of apps, the top fifty account for majority of time spent
Proportion of Time Spent on Web vs. Apps

Nielsen Smartphone AnalyHcs, June 2011


App Web

Distribution of Time Spent in Apps Nielsen Smartphone Analytics, June 2011

Web 33%

All other Apps 39%

Top 10 43%

App 67% 41 - 50 3% 31 - 40 21 - 30 3% 4%

11-20 8%

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All About Android


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However, there is a lot of movement in the top 50; one in 5 apps in the July top 50 were not in the June top 50
Change in App Ranking -Top 50 Android Apps
Smartphone AnalyHcs, June - July 2011
No rank change 12%

Moved up in top 50 40% New to top 50 22%

Moved down in top 50 26%

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All About Android


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Google services have strong penetration in Android


Active Reach of Popular Apps on Android OS
Android US Panel, June 2011 Active Reach is the percentage of the population that used the app within the last 30 days

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All About Android


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Consumers use texting apps more often, but spend more time on Facebook
Number of Visits by Popular Apps on Android OS
Android US Panel, June 2011

Time Spent on Popular Apps on Android OS


Android US Panel, June 2011

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All About Android


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Understanding usage means looking down to the application level


Reach by Gender Social Networking Apps
Android US Panel, July 2011
Male AcHve Reach Female AcHve Reach

Number of Visits by Gender Social Networking Apps


Android US Panel, July 2011
Male Female 110

81% 67% 68 56

35 25 16% 7% 13% 17% 21

Google+

Facebook

Twiber

Google+

Facebook

Twiber

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All About Android


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App vs. web usage varies by age and gender


App vs. Mobile Web - Gender Composition
Android US Panel, June 2011
Male 10% 13% 47% 43% 67% 30% 90% 87% 53% 57% 33% 6% 48% 42% 18% 29% 24% 25% 25% 37% 37% 43% 43% Female 7% 22% 52% 22%

App vs. Mobile Web Composition by Duration Age


Android US Panel, June 2011
18 - 24 4% 4% 25% 25 - 34 12% 11% 18% 35 - 44 6% 10% 45 - 54 55+ 3% 9% 21% 6% 6% 20%

35%

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All About Android


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Day in the Life: Smartphone in name only; time spent on calls is less than 3%
Time Spent Engaged with Handset
US, Android , July 18-24 2011

Average Daily Breakdown of Mobile Activity


US, Android, July 18-24 2011

1:25:14 per day avg

Breakdown of one Android user over a 1 week time period


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All About Android


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Phones are still social but methods have changed


Android Users Time Spent Engaged with Handset
US, Android, July 20, 2011

Total time spent: 1:24:32

Minutes

Breakdown of one Android user over a 24 hour time period


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All About Android


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Is there a prime time for your app?


Monthly Average Unique Audience by Daypart
Android Smartphone Analytics July 2011

Words With Friends The Weather Channel Twiber Youtube

Usage reaches its As users wake up Later on in lowest point and begin the the morning around 4AM morning audience commute, unique numbers audience begins stabilize to rise

Prime time for app usage starts at around noon and continues until late evening

Usage starts to dip around 10PM

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All About Android


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In Summary
Smartphones are exploding Android and iOS are leading the way Not just a phone Smartphones are media machines The app space is dynamic Newcomers every month Syndicated, accurate metered measurement has been missing -- until now Let the race begin
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All About Android


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A winning mobile strategy requires deep understanding of the ecosystem


The Content
Applications Mobile Web Advertising

The Measurement
Syndicated Metered Metrics Advertising Effectiveness Sales Conversion

The Platforms
Operating Systems Manufacturer and Device Networks and Connectivity

The Landscape
Consumer Insights Market Understanding Strategy and Forecasting

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All About Android


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Thank You!
For further inquiries, please contact your Nielsen representative Visit our blog at: http://blog.nielsen.com/nielsenwire/category/online_mobile/ Don Kellogg Don.kellogg@nielsen.com Monica Bannan Monica.bannan@nielsen.com

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All About Android


Copyright 2011 The Nielsen Company. Confidential and proprietary.