Mobile In Canada: A Summary Of Current Facts + Trends

Mobile In Canada: A Summary Of Current Facts + Trends

Executive Summary
In 2010, Canadian Mobile Ad Placement revenue grew at a rate of 105% year-over-year, driven primarily by Search and Mobile Display/Sponsorship. Almost 85% of Canadians are cell phone subscribers and 45% of the latter have Smartphones. Half (50%) of Canadas Mobile subscribers are monthly Internet users, dominated by the 18-44 age group. Four top, monthly Internet activities are using downloaded apps (85% of Smartphone subscribers), browsing (76%), emailing and accessing Social Networks/Blogs. The most accessed Mobile Internet Content on a weekly basis is weather (18% of Mobile Internet users), followed by maps, news, sports and entertainment news. RIM is the leading Mobile operating system in Canada (33% of Smartphone subscribers), followed very closely by Apple (31%) and then by Google (28%). Tablet penetration rose to 10% among adults by Fall 2011 and is highest among males (12%) and the 35-49 age group (14%). Canadian Mobile marketers believe that rapid Smartphone adoption is stimulating more Advertising Agencies to actively consider Mobile in their media plans. 2012 revenue growth will likely be driven by Mobile Search, Rich Media, Video and quality in-App inventory. In 2012, IAB Canadas Mobile Council will conduct continued/expanded activities on a broad front, including awareness-building events, education, revenue measurement, advertising standards and new Cross-Media Mobile Research.

Mobile Ad Placement Revenue in Canada

Mobile Ad Placement/Spend grew by 105% in 2010 to $46.6 Million ($Can), driven primarily by Mobile Search with $17.1 million (up 154%) and Mobile Display/Sponsorship with $15.6 million (up 206%). Mobile Messaging, the third largest Ad Placement component, grew by 17% to $12.5 million.

Note: Conversion Factor, $1.00 CAN = $0.971 USD (Source: Bank of Canada, 2010)

Source: IAB Canada Mobile Advertising Revenue Surveys, 2009, 2010; Note: All revenues shown exclude production revenue and advertising agency commission.

Mobile Subscriber and Smartphone Penetration in Canada

With 25.9 million Mobile subscribers as of Q4 2011, almost 85% of Canadians are cellphone subscribers, up from 81% in 2010 (Note: Children under-ten excluded from this calculation). As of December 2011, 45% of Mobile subscribers in Canada now have Smartphones.
Canadian Mobile Subscribers: % Smartphone

Source: comScore Inc., MobiLens Canada, Mobile Subscribers, Persons 13+, December 2011; Contact - Bryan Segal, bsegal@comscore.com

Canadas Mobile Internet Audience

Half (50%) of Canadas Mobile subscribers are monthly Internet users, defined by comScore as using connected media except SMS. The gender split of Mobile Internet users in Canada is 55% male / 45% female, with the 18-44 age group accounting for almost two-thirds (63%) of users.

Canadian Subscribers: % Use Mobile Internet/Month

Note: Mobile Internet User = Used connected media except SMS

Source: comScore Inc., MobiLens Canada, Persons 13+, December 2011; Contact - Bryan Segal, bsegal@comscore.com

Source: comScore Inc., MobiLens Canada, Persons 13+, December 2011; Contact - Bryan Segal, bsegal@comscore.com

Source: comScore Inc., MobiLens Canada, Persons 13+, rounded percentages; December 2011; Contact - Bryan Segal, bsegal@comscore.com

Canadian Mobile Internet Activities and Content

Four dominant monthly Mobile Internet activities among Canadian Mobile subscribers, and the Smartphone subscribers among them, include using downloaded apps (46%/85%) and browsing (41%/76%), followed by emailing and accessing Social Networks/Blogs. The top Mobile Internet Content accessed weekly is weather, followed by maps, news, sports and entertainment news.

Select Mobile Internet Activities/Month in Canada

(%) Mobile Subscribers 85% 76% (%) Smartphone Subscribers

69% 59%

46%

41%

36%

31%

Used Downloaded Application

Used Browser

Used Email

Accessed Social Network/Blog

comScore MobiLens, Total Canada Mobile / Smartphone Subscribers, Ages 13+, December 2011; Contact - Bryan Segal, bsegal@comscore.com

Top 5 Mobile Internet Content Categories in Canada

based upon frequency of at least once per week 17% 14% 12% 10% % Mobile Internet Users 18%

Weather

Maps

News

Sports Info

Entertainment News

comScore MobiLens, Total Canada Mobile Internet Users (Used connected media except SMS); Ages 13+, December 2011; Contact - Bryan Segal, bsegal@comscore.com

Mobile Advertising Exposure and M-commerce in Canada

More than one in four (28%) of monthly Canadian Mobile Internet users recall seeing ads on their handsets, almost one in six (16%) scanned a QR/bar code, while the same proportion also accessed electronic payments.

Mobile Advertising Exposure and M-commerce

Base: Canadian Mobile Internet Users, ever in month

Recall seeing ads Scanned a QR/bar code Accessed Electronic Payments 16% 16%

28%

Source: comScore Inc., MobiLens Canada, Persons 13+, December 2011; Mobile Internet User = Used connected media except SMS; Contact - Bryan Segal, bsegal@comscore.com

Market Share of Top-3 Canadian Mobile Network Providers

By the fourth quarter of 2011, the three leading Canadian Mobile operators and their affiliates accounted for 93% share of total Mobile subscribers in Canada.

1. Canadian Wireless Telecommunications Association (CWTA) 2. Sources: Rogers; Bell; TELUS (LTE launch early 2012)

Share of Canadian Smartphone Subscribers/ Mobile App users by Operating System

RIM is the leading Mobile operating system in Canada, with 33% of Smartphone subscribers, followed very closely by Apple (31%) and then by Google (28%). Based on share of native app users, Apple (34%) leads RIM by one percentage point.

comScore MobiLens, Total Canada, Smartphone Subscribers Ages 13+, December 2011; Contact - Bryan Segal, bsegal@comscore.com

Penetration of Tablet Computers in Canada

The first Tablet device (the iPad) was launched in Canada during Spring 2010. As of Fall 2011, Tablet penetration sits at 10% among all adults. Penetration is highest among males (12%) and the 35-49 age group (14%).

Source: Media Technology Monitor (MTM), a product of CBC/Radio-Canada Research & Strategic Analysis - Fall 2010, Spring 2011 and Fall 2011 Surveys

Source: Media Technology Monitor (MTM), a product of CBC/Radio-Canada Research & Strategic Analysis - Fall 2011

Source: Media Technology Monitor (MTM), a product of CBC/Radio-Canada Research & Strategic Analysis - Fall 2011 Survey

Canadian Challenges + Opportunities for Mobile in 2012

Source: IAB Canada 2010 Mobile Advertising Revenue Survey

Canadian Mobile media players believe that rapid Smartphone adoption by consumers during 2010 and 2011 is raising the profile of Mobile as an advertising medium, stimulating more Advertisers to actively consider Mobile in their media plans. A key challenge is the need to grow Mobiles credibility as a proven advertising medium, requiring concerted action on the following key fronts: Access to better Mobile reporting of both currency and campaign metrics, as well as analytics; Resolving the lack of local market audience data, for better campaign targeting; and Demonstrating Mobiles effectiveness and value to Advertisers/media buyers, by conducting more campaign return-on-investment studies. More resources must also be dedicated towards educating Advertisers on Mobile planning and buying basics and campaign best practices. The rapid evolution of Mobile, coupled with growing competition from significant new Mobile entrants has ratcheted-up pressure on existing Online and offline media owners to build and improve Mobile platforms, source and develop Mobile Website content and Applications and Social Media integration, while investing in the internal capabilities needed to engage Mobile Advertisers. Canadian Mobile media players see opportunities for revenue growth for 2012 in Mobile Search, Rich Media, Video and quality in-App inventory. Whats Next For IAB Canadas Mobile Council in 2012? Continued and expanded delivery of our leading-edge Mobile Marketing Course to both English and French markets in Canada Continued and expanded delivery of our Mobile Ad Revenue Survey, including Tablet ad revenue Coordinating Rich Media + Other Standards with the US and other Global Partners Partnering with IAB Canada Members to do NEW! Cross-Media Mobile Research Driving awareness of Mobile capabilities with Mobile-Central Events
Prepared By Steve Rosenblum, Director of Research, IAB Canada Prior to joining IAB Canada in 2007, Steve Rosenblum held senior Toronto-based, Agency media posts at MacLaren Advertising (now M2Universal), VP Media Director at Young & Rubicam (now MEC) and latterly at PHD, where Steve led the research consulting division. Steve is a member of the Emerging Technologies Committee of Canadas MRIA (Marketing Research and Intelligence Association). He has served on the Board of the Canadian Media Directors Council and the Executive or Research/ Technical Committees of the PMB (Print Measurement Bureau), NADbank (Newspaper Audience Databank), COMB (Canadian Outdoor Measurement Bureau) and BBM Television/Radio (Bureau of Broadcast Measurement).

About IAB Canada

Who We Are: IAB Canada (www.iabcanada.com), is the national voice and de facto thought leader of the Canadian Digital marketing and advertising industry, and is a not-for-profit association representing Canadas most well-known and respected Advertisers, Agencies, Media Companies, Mobile and VideoGame Marketers + Developers, Measurement Companies, Service Providers, Educational Institutions and Government Associations operating within the space. What We Do: As the only organization fully-dedicated to the development and promotion of Digital/ Interactive advertising in Canada, IAB Canada works with its Members to: Conduct Original, Canadian Digital/Interactive Research; Establish and Promote Digital/Interactive Advertising Standards + Best Practices; Develop Job Fairs, Educational Courses, Certification Programs and other initiatives that assist the industry in Attracting, Training and Motivating Human Resources; Act as an Advocate for the Canadian Digital/Interactive Advertising Industry to the Canadian Government; and, Organize Networking Events that enhance communication between Members.

Data Contributors/Sources IAB Canada (sourced for: Canadian Mobile Advertising Revenues) - First commissioned by IAB Canada in 2007, the Canadian Mobile Advertising Revenue Report is considered the most accurate measurement of Canadian Mobile advertising revenues. The Survey utilizes data received directly from Canadas leading Mobile Carriers, Mobile Aggregators, Mobile Marketing companies, Online Publishers offering Mobile advertising solutions (including Mobile Search advertising), Mobile Application Developers and Mobile Advertising Networks. IAB Canada retains Ernst & Young to jointly establish, maintain and continuously update comprehensive Survey standards for measuring the growth of Online and Mobile advertising revenues in Canada. Results of individual respondent submissions are held in strict confidence by Ernst & Young and are released in aggregate form only. Contact: Steve Rosenblum comScore Canada (sourced for: Smartphone users, Mobile Internet usage, Ad Exposure, M-commerce) - comScore MobiLens provides an unparalleled view of the Canadian Mobile media landscape, connecting data on mobile consumer behaviour and device capabilities to help you reach and engage consumers. Contact: Bryan Segal CWTA (sourced for: wireless subscriber count by service provider) - The Canadian Wireless Telecommunications Association (CWTA) is the authority on wireless issues, developments and trends in Canada. It represents cellular, PCS, messaging, mobile radio, fixed wireless and mobile satellite carriers as well as companies that develop and produce products and services for the industry www.cwta.ca MTM (sourced for: tablet user data) - The Media Technology Monitor is among Canadas highest-quality media surveys. It employs large sample sizes and achieves response rates far exceeding industry standards. The MTM is a product of CBC/Radio-Canada Research and Strategic Analysis. The MTM measures Canadians media technology adoption and use at two points in time, in the fall and the spring. Contact: Mark Allen