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How mobile devices have redefined the way the consumers globally use media, and what this means for the industry
For further information please contact: www.inmobi.com
A new wave of mobile consumer behavior is creating dramatic changes in the mobile landscape across the globe
Mobile devices are changing the ways consumers interact, learn and shop. With the proliferation of smartphones, tablets, e-readers, handheld gaming systems, and the rapidly evolving digital media environment, people now consume content everywhere. Increased activity on mobile devices has been enabled by better networks and advanced devices; now consumers are always connected and not only consume but also produce content at a rapid pace. Mobile devices are becoming a more widely used conduit for digital content and services. The amount of time consumers spend with their mobile devices is growing rapidly and this increased mobile media consumption is also giving rise to a new category of services on mobile, including mobile shopping, mobile payments, mobile TV, and mobile advertising. This whitepaper examines trends in the mobile digital media landscape and its impact on media consumption, shopping, and consumer behavior.
What Questions Does This Whitepaper Answer?
How do people consume media? How do they engage and interact with mobile? How does mobile versus traditional media influence shopping? How do consumers respond to mobile advertising? Do they engage in M-Commerce? What does this mean to marketers, brands, and publishers?
To better understand changing media consumption usage and behaviors across the world, InMobi conducted a research study among over 20,000 mobile web users in 18 markets across all continents
On any given day, mobile web users around the world spend 27% of their media time on mobile, and 22% watching TV - mobile has pulled ahead as the preferred medium in terms of time spent Availability, ease of use, and privacy are the driving factors for mobile usage Social media, entertainment, and games are the top 3 mobile media activities among mobile web users. Growth in mobile use in the coming year will be primarily driven by social media, entertainment, and search activities
Mobile Advertising and Commerce Trends
Mobile, TV, and PC’s all have a significant impact on influencing purchase behavior around the world 66% of mobile web users are equally or more comfortable with mobile advertising compared to TV or online advertising Beyond media consumption, mobile advertising has gained traction as a viable shopping channel, with: - 42% of respondents indicating that mobile ads have introduced something new to them - 23% of respondents indicating that mobile ads have provided them with better options - 14% of respondents indicating that mobile ads have influenced them to buy via mobile 53% of mobile web users have made a transaction on mobile. Although digital goods have the highest purchase incidence, other types of goods and services are popular as well 76% of mobile web users plan to conduct mobile commerce in the next 12 months, a +23pt increase from where we are today
Consumers are spending more time on mobile. Mobile-optimized and mobile-centric content are key as mobile devices claim increasing amounts of media time per day. With consumer spending so focused on this channel, brands and marketers will need to actively plan for how they will address this large and fast growing market segment. These changing consumer media behaviors a nd needs inspire us to think differently about how brands can best add value in the mobile environment As the mobile browsing experience is converging with online and smartphones are spurring major shifts in shopping behavior, marketers should consider integrating M-Commerce into their mobility roadmap Mobile as a new media channel represents a significant opportunity for marketers to enhance their customer relationships by providing a seamless and convenient way to discover and transact regardless of their location Mobile represents a unique opportunity for marketers to engage and serve relevant ads, as consumers move through various phases of the purchase funnel. Marketers can implement various mobile related tactics like text messaging, mobile display ads, mobile video, mobile coupons, branded smartphone apps, rich media ads etc. to achieve the desired objective Mobile is increasingly becoming an integral part of the advertising mix for various brand advertisers and publishers, and provides an opportunity to engage consumers in a targeted and contextual manner Marketers should create mobile ads which are engaging, creative and contextual for mobile users to feel comfortable and engage fully
Clearly, Mobile is the future mobile helps to build brands and influence consumer purchase decisions, mobile advertising will become an become an indispensable element of the digital marketing mix
“Mobile is transforming itself as the next web”
Table of Contents
The Global Mobile Industry at a Glance Key Drivers of Growth Globally Mobile Media Consumption Mobile Media Activities Influential Media: Mobile vs. Traditional Media Mobile Advertising Mobile Ads and Purchase Influence M-Commerce and Shopping Activities 05 06 07 08 09 10 11 12
The Global Mobile Industry at a Glance: The Big Opportunity Lies here
The number of mobile web users across the world is projected to reach over also expected to fuel growth of mobile web services across the world.
2 billion by 2015.
Strong adoption of smartphones and improvements in mobile operator network capabilities are
The number of smartphone owners worldwide is expected to reach over up from
1 billion by 2015,
572 million in 2011 - a penetration rate of 65% by 2015. Source:eMarketer
$240 billion in 2012 to about $670 billion in 2015. Digital goods will account for only 40% of the market, with 2.5 billion consumers
Worldwide mobile payments will increase from making purchases; the rest will be comprised of physical goods and services, NFC, and money transfers.
Source:eMarketer, Juniper Research
$3 billion will be spent on mobile ads globally in 2012; according to Gartner, almost $21 billion by 2015.
half of this spend will be focused on Asia. According to eMarketer estimates, global mobile ad spending will skyrocket to about
Increasing mobile web penetration and faster network speeds around the world are catalyzing a shift in media consumption. Connected devices, including smartphones, tablets, portable gaming devices, and connected TV’s are changing the way consumer’s access and use media. Mobile connected devices allow consumers constant access to entertainment, news, and social networking, impacting where, when, and how they consume media, and changing the ways they access TV, PC’s, print media and radio.
Key Drivers of Growth
Faster networks with higher bandwidth and affordable flat rate plans with lower mobile data cost Strong sales and adoption of smartphones Growth of mobile apps, mobile games and location based campaigns Consumer adoption and usage of mobile ads Focus on rich media, interactive advertising and user engagement Growth in mobile payments and M-Commerce
Mobile Media Consumption
The use of mobile media is changing the way consumers lead their daily lives. According to InMobi’s research, mobile web users now spend more time on mobile devices each day than they do with TV: 32% of media time spent is on PC, followed by 27% on mobile, and 22% on TV.
In the past day, approximately how much time did you spend on various media?
Mobile web users consume an average of 7 hours of media daily of which almost 2 hours are spent on mobile
Using Mobile ( Excluding SMS / Calls )
Watching TV Online via Desktop / Laptop Listening to Radio
Reading Newspapers / Magazines
Mobile Media Activities
According to the study
Mobile is primarily a social and entertainment device; these activities make up over 40% of time spent on mobile. Growth in mobile use in the coming year is likely to come from social media, entertainment, and search.
In the past day, approximately how much time did you spend on your mobile doing the following?
In the next 12 months, for which two mobile activities would you expect your usage to increase the most?
Search for general information
Influential Media: Mobile vs. Traditional
Mobile, PC, and TV all have a significant impact on purchase behavior around the world
Which two forms of media most impact your decisions to buy goods or services?
Online ( Desktop / Laptop )
Magazines or Newspapers
20 40 60 80 100
Mobile devices provide an anytime, anywhere channel for advertisers to reach their audiences. The portability of mobile devices allows consumers to carry them along when shopping in-store, or to shop via their device while on the go. This behavior opens up opportunities for advertisers and publishers to provide compelling mobile sites and apps to aid in that process. Consumers are already used to mobile ads and use them actively.
According to the study:
66% of mobile web users around the world are equally or more comfortable with mobile advertising, compared to TV or online advertising. Over one third of respondents found mobile ads useful; a significant percentage of mobile web users are actively using mobile ads.
Compared to other forms of advertising like TV or online, how comfortable are you with mobile web and mobile app advertisements (not SMS)?
More comfortable, I find them to be very useful
Equally comfortable, I'm getting used to seeing them
Less comfortable, I find them intrusive
No opinion, I don't think much about ads on my phone
40 60 80 100
Mobile Ads and Their Influence on Purchases
Today, mobile ads have become an important shopping tool and are used from initial research up to the point of purchase. Mobile ads are a useful method for engaging audiences at every stage of the purchase funnel. InMobi’s research shows that mobile web users around the world are highly receptive to and actively use mobile ads to help them find new information and assist them throughout their shopping process.
Survey Highlights: Has mobile advertising ever:
Introduced you to something new? (42%) Helped you find something nearby? (26%) Influenced your in-store purchase? (11%)
Influenced you to buy via your mobile? (14%) Caused you to reconsider a product? (13%) Provided you with better options? (23%)
M-Commerce and Shopping Activities
Mobile commerce is gaining quite a bit of momentum. The increasing popularity of the mobile devices and developments in mobile technology have heralded a new era in mass communication and commerce. Over half of mobile web users have already use M-Commerce. Mobile web users are purchasing both digital and physical goods and services via mobile.
According to the study:
53% mobile web users have made a transaction on mobile In the next 12 months, over three quarters of mobile web users will be using M-Commerce
Used any M-Commerce Features
Future in the next 12 months:
According to our survey:
67% bought digital goods 35% bought physical goods
Which of the following activities have you spent money on via your mobile?
% of Total Respondents Buying digital goods, including games, music, apps, etc. Buying physical goods, including electronics, clothes, etc Bill Payments, including peer-to-peer payments, etc. Buying services, including purchasing movie tickets, travel, etc. 67% 35% 25% 25%
Adoption of connected devices and increased mobile Internet access around the world are igniting consumer mobile media activities. Consumers are spending an increasing amount of time consuming media on their devices, which are now on par with TV in terms of impact on purchase decision. It has become their primary always-on method to access digital content and communicate. Therefore this channel represents an integral part of a brand’s strategy to market to consumers. With the increasing reach of the mobile Internet, this form of marketing is poised to achieve significant reach.
Objectives & Methodology
Provide a robust view on the changing media consumption and usage behaviors of mobile web users in a representative set of high growth markets. Continue tracking these changes over time and provide insight on trends in mobile media. Research will be aimed at addressing the following points, specifically with regard to: 1. 2. 3. 4. 5. How do mobile web users consume media? How do they engage with their mobile? Mobile ads and their influence on purchase decision M-Commerce Build a detailed picture of consumer trends to aid targeting and development
Recruited via InMobi global mobile ad network between September and November 2011 Used Decision Fuel mobile web platform to collect a representative sample, including a full range of smart phones & feature phones Weighted according to available mobile web demographics Four quality control mechanisms applied with approximately 10% of completes removed from sample
20,000 respondents across 18 key markets in Asia, Africa, Europe, North and Latin America
Findings on other markets from the Mobile Media Consumption Research conducted by InMobi, Decision Fuel, and On Device Research are available here: www.inmobi.com/research
InMobi is the largest independent mobile advertising network. With offices on five continents InMobi provides advertisers, publishers and developers with a uniquely global solution for advertising. The network is growing and now delivers the unprecedented ability to reach 485 Million consumers, in over 165 countries, through more than 93.4 Billion mobile ad impressions monthly. The recent acquisition of Sprout, a leading HTML5 authoring platform for mobile rich media, helps expand the InMobi offering to creative agencies and brands. InMobi is venture-backed by investors including: SoftBank, Kleiner Perkins Caufield & Byers and Sherpalo Ventures. The company has offices in Bangalore, Johannesburg, London, Nairobi, New York, Paris, San Francisco, Seoul, Singapore and Tokyo. To learn more, please visit www.inmobi.com/research, follow us on Twitter @InMobi, or read our blog at www.inmobi.com/inmobiblog/
About Decision Fuel
At Decision Fuel, we take a fresh approach to consumer insights. We help our clients reach informed decisions through quality research that's simple to use, lightning-fast and surprisingly cost-effective. We use a custom-built technology platform to design and deliver short, tailored consumer surveys over mobile devices. Research can be set up in minutes, deployed instantly and tracked in real time. Full analytics and insight are delivered with unprecedented speed and clarity. Decision Fuel combines all the features research buyers need and strips away anything that gets in the way of better, faster, more informed decisions. We can help your company unlock consumer thinking in the world's most challenging, dynamic and high-growth markets.
Consumer insights, Mobile technology
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