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The State of Mobile

EU5 Mobile Media Landscape and Trends

Alistair Hill, Sr. Analyst


June 10, 2010

Agenda
comScore Mobile Data Mobile Media Trends Shifting Mobile Media Landscape Smartphones Summing Up

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comScore Mobile Data

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comScore Mobile Data


Complexity and fragmentation of mobile market requires an array of data sources
and methodologies for a 360 view

MobiLens
Market Tracking via Intelligent Online Survey

Network Census
Carrier Log Analysis GSMA MMM

Site + App Census


Mobile Web, App AdNet Tagging

Mobile Metrix
Smartphone Meter Panel

Ad Metrix Mobile Plan Metrix Mobile


Mobile Ad Tracking and Planning Tools

comScore, Inc. Proprietary and Confidential.

MobiLens comprehensive suite of measures MobiLens Database


Demographics
Age, Gender, Income, Education, Employment, Household Composition, more

Personalization
Changed or Made Own Ringtones/Graphics, Purchased Ringtones/Graphics, Quantity, Ringback Subscriptions, more

Subscription and Operator Information


Current and Previous Operator, Length of Ownership, Length of Subscription, Monthly Plan, Bill Size, Data Plan Status, Satisfaction, more

Music & Video


Sideloaded Music, Downloaded Music from Operator, Source of Downloaded Music, Watched Broadcast TV, Watched OnDemand Video

Messaging
Chat, Personal Email, Work Email, Instant Messaging, Photo Messaging, more

Social Media + UCG


Accessed Social Network, Sent Photos to Phone, Sent Photos to Website, Captured Video, Sent Video to Phone, more

Games
Played Games, Type of Games Played, Number Downloaded, Number Purchased, Subgenres, Method of Discovery, Method of Purchase, more

Content Access Methods


Category, Sub-category and Brand Access via Mobile Browser, Downloaded Application, or SMS

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Mobile Media Trends

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Mobile On Track to Eclipse the Desktop

Number of Global Users (Millions) 2,000


1,800 1,600

1,400
1,200 1,000 800 600 400 200 0
2007 2008 2009 2010 2011 2012 2013 2014 2015

Desktop Mobile

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Source: Morgan Stanley Research

34% of Mobile Phone Owners Browse the Mobile Internet, Use Applications or Download Content (Mobile Media Users)
The number of people who are just using voice has declined 15% year on year

Mobile Segments Q1 09 vs Q1 10
100% 90% 80% 70% % Market 60%

17%

14%

55%
50% 40% 30% 20% 10% 0% Q1 2009 Mobile Media SMS (and not Mobile Media)
Product: MobiLens

53%

28%

34%

Q1 2010 Just Voice

Mobile Media = Connected Media (except SMS only) in MobiLens

Data: Three month average ending March 2010


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Country: EU5- N= 69,031

Growth of the Key Market Enablers Continues


Two of the market enablers (smartphones and 3G devices) are now firmly entrenched in the market. The most important enabler, unlimited data plans, still has limited penetration in EU5 (6%) however did
grow 71.8% year on year.

In comparison 24% of US mobile users subscribe to unlimited data plans.

50.0% 45.0% 40.0% 35.0% % Market 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Mar-09 Apr-09 May-09

Growth of Market Enablers


44% 34%

24% 18%

4%
Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10

6%
Mar-10

Unlimited Data Plan Subscribers

3G Device Owners
Product: MobiLens

Smartphone Owners

Data: Three month average ending March 2010


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Country: EU5- N= 69,031

The Average Mobile Media User is 33 and 41% are Female


Younger demographics create their own ringtones, use social networking services and listen to music
(web 2.0 type services).

Mobile Internet services (browsing, apps and e-mail) skew 60-65% male.

55

Demographics of Mobile Media Activities


Higher on chart = more female Further to right = older Size of bubbles = # of users Made Own Ringtone Played Games

50

45

Ringback

% Female

Listened to Music Social Networking

40 Purchased Game 35

Purchased Ringtone Browser

Mobile Media

Email

Used App Unlimited Data Plan

30 28.0 29.0 30.0 31.0 32.0 33.0 34.0 35.0

Median Age
Product: MobiLens Data: Three month average ending March 2010
comScore, Inc. Proprietary and Confidential. 10

Country: EU5- N= 69,031

Nokia Leads OEM Market for Device Owners and Mobile Media Users By Some Distance
Although the iPhone gains a large amount of hype, it still only represents 4% of total mobile owners in
EU5 and 12% of all mobile media users. The number of iPhone owners grew 172% YoY. * Total device owners market share in bold, mobile media market share numbers in red.

OEM Market Share for Total Market and Mobile Media Users
40% 35% 30% 37% 32% 30% 25% 20% 20% 15% 10% 5% 3% 0% Nokia Samsung Sony Ericsson LG Motorola Apple RIM 18% 13% 12% 8% 8% 6% 4% 2% 12% 10% 4% 5% 2% 0% Sagem 2% 0% Siemens 0% 15% 20% 35%

% Market

25%

Total Market

Mobile Media
Product: MobiLens Data: Three month average ending March 2010

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Country: EU5- N= 69,031

% Mobile Media Users

Shifting Mobile Media Landscape

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The Mobile Content Industry Flat / Declining Industry


Personalization sector showing Mobile games audience is flat, but theres much more to the story (well get to that shortly).

Mobile Content Trends


6%

5%

4%

% Market

3%

2%

1%

0% Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10

Ringtone Purchasers

Graphics Phurchasers
Product: MobiLens

Games Purchasers

Data: Three month average ending March 2010


comScore, Inc. Proprietary and Confidential. 13

Country: EU5- N= 69,031

A Quarter of EU5 Mobile Owners Browse the Mobile Internet


There are over 17 million extra mobile Internet users in March 2010 compared to March 2009, 43%
growth.

Social networking users are showing the highest gains with 98% YoY growth. 12% are using IM and users are growing 37% YoY.

Mobile Internet Trends


30% 25%

25%

% Market

20%

15%

12%
10%

5% Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10

Apps (except native games)

Mobile Browsing

IM
Product: MobiLens

Email

Social Networking

Data: Three month average ending March 2010


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Country: EU5- N= 69,031

Communicating & Sharing Drives Mobile Web


40% search, in comparison , 80-100% of PC Internet browsers use search, depending on the country. The bars in yellow highlight the genres that relate to communicating and sharing with others, the dark
red bars indicate news and weather genres.

The mobile internet is as much about connecting with friends and family as it is about news and info.

Top Genres for Mobile Browsing


Movie Information Stock Quotes or Financial News General Reference Photo or Video Sharing Service Tech News Maps Work Email via Browser Entertainment News IM via Browser Sports Information Weather News Personal Email via Browser Social Networking Search 0.0% 5.0% 10.0% 15.0% 15.9% 16.5% 17.5% 18.3% 18.8% 19.0% 20.9% 22.6% 24.3% 27.2% 29.4% 30.7% 34.5% 35.2% 39.2% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0%

% Browsers
Product: MobiLens Data: Three month average ending March 2010
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Country: EU5- N= 69,031

Google the Most Popular Mobile Internet Site in the UK


comScores GSMA Mobile Media Metrics (MMM) service shows Google gaining the most mobile internet
users.

Vodafone is the leading operator portal.


Total Unique Visitors % Reach Average Minutes per Visitor Average Pages per Visitor

Google Sites FACEBOOK.COM Vodafone Group Telefonica Mobile Networks Orange Sites BBC Sites Yahoo! Sites Microsoft Sites Deutsche Telekom Nokia

5,793,816 5,674,595 3,547,718 3,271,221 2,376,524 2,146,536 2,141,238 1,702,176 1,125,953 1,062,416

32.7 32.0 20.0 18.4 13.4 12.1 12.1 9.6 6.3 6.0
Product: MMM Data: February 2010

27.9 303.5 21.1 12.7 22.6 23.3 21.1 90.5 20.1 14.2

106 420 32 17 41 40 35 66 58 26

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Country: UK

Facebook Usage is Surprisingly Higher on Mobile Compared to PC

mobile users spend 45 minutes on facebook per usage day; average 43 visits per month
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PC users spend 32 minutes per usage day; average 35 visits per month
Product: GSMA MMM & comScore Media Metrix Data: Feb 10.
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Country: UK

Sports Usage Peaks Between 3-6pm at the Weekend


Sports usage is heavily influence by live events, especially football. The average Weekend day in
February saw a peak in users and minutes at the time when most Premiership matches are taking place.

Weekend Mobile Internet Sports Usage by Day Part


1400 1200 1000 Unique Visitors 12000 800 600 400 4000 200 0 6-9 am 9-12noon 12-3 pm Uniques 3-6 pm Mins
Product: GSMA MMM Data: Feb 10.
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18000 16000 14000

10000 8000 6000

2000 0 6-9 pm 9-12 pm

Country: UK

Total Mins

Sports Usage in the UK Mirrors the Football Season


Sports Usage - UK
7,000,000 Chelsea win 2006 Premier League title Premier league season starts Manchester United 2008 win Premier League title in exciting finish to season Manchester United 2009 win Premier League title

6,000,000

Manchester United 2007 win Premier League title

5,000,000 Unique Users Mobile Sport Booms as England Reach the ???

4,000,000 No summer football tournament

3,000,000 England Reach the world cup quarter final England fail to qualify for the Euro 2008 No summer football tournament. Sports users in June down 25% on average month in 2007

2,000,000

1,000,000

No summer football tournament. Sports users in June down 15% on average month in 2007

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Functionality of Content Determines the Access Method


The type of content determines the popularity of an access method. For example news and information genres, such as news, are more popular via the browser, whereas
genres that are more involved or more functional, e.g. Games and maps are better suited to applications.

Browser vs App by Content Genre


8,000 7,000 6,000 Unique Users 5,000 4,000 3,000 2,000 1,000 0 News Social Networking via App via Browser
Product: MobiLens Data: Three month average ending April 2010
comScore, Inc. Proprietary and Confidential. 20

Maps

Games

Country: UK - N= 15,567

Mobile Games Purchasers Flat


With so much hype around mobile applications it is a shock that mobile games purchasers are flat.

Mobile Content Trends


3%

3%

2%

% Market

2% 2%

2%

1%

1%

0% Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10

Games Purchasers
Product: MobiLens Data: Three month average ending March 2010
comScore, Inc. Proprietary and Confidential. 21

Country: EU5- N= 69,031

Free Business Model Gaining Traction at Expense of Paid


The number of people downloading has risen 40% year on year, however the number of people
purchasing games as risen just 11%.

The vast majority of the growth in games downloads is coming from free games downloads which are
growing 68%.

Mobile Games Trends


5% 5% 4% 4% % Market 3% 3% 2% 2% 1% 1% 0% Mar-2009 Apr-2009 May-2009 Jun-2009 Jul-2009 Aug-2009 Sep-2009 Oct-2009 Nov-2009 Dec-2009 Jan-2010 Feb-2010 Mar-2010 Downloaded a Game Purchased a Game Downloaded a Game for Free

Product: MobiLens Data: Three month average ending March 2010


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Country: EU5- N= 69,031

Steady Growth Continues for Mobile Banner Advertising

Mobile Browsers vs Products Advertised


700 650 600 550 Products 500 450 400 350 300 250 200 8,000,000 10,000,000 11,000,000 13,000,000 Unique News and Info Browsers 14,000,000

12,000,000

9,000,000

Products Advertised

Mobile News + Info Browsers

Linear (Products Advertised)

Product: Ad Metrix Mobile Data: March 2010


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Country: UK

Steady Growth Continues for Mobile Banner Advertising


The number of products advertised is not growing as fast as the number of mobile browsers

Mobile Browsers vs Products Advertised


700 650 600 550 Products 500 450 400 350 300 250 200 8,000,000 10,000,000 11,000,000 13,000,000 Unique News and Info Browsers 14,000,000

12,000,000

9,000,000

Products Advertised

Mobile News + Info Browsers

Linear (Products Advertised)

Product: Ad Metrix Mobile + MobiLens Data: March 2010


comScore, Inc. Proprietary and Confidential. 24

Country: UK

Ad Spend is Not Following the Consumers Digital Behaviour


The average PC Internet browser generated over 90 per year of advertising revenue for the industry.
The average mobile Internet user generated 2.90 per year

In 2009 the average number of mobile browsers was 33% of the number of PC Internet browsers. In December 2009 total mobile Internet minutes were between 6%-10% of total PC Internet minutes. 2009 Mobile ad spend is 1% of PC Internet spend.

PC Internet vs Mobile Ad Spend 2009


45,000,000 120.0 100.0 90.7 80.0 12,832,917 60.0 40.0 20.0 2.9 Internet Users Unique Browsers Mobile Internet Users Advertising Revenue Per Browser
Source: comScore + IAB UK Data: 2009
comScore, Inc. Proprietary and Confidential. 25

35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 -

0.0

Country: UK

Ad Revenue Per Browser

40,000,000 Average Unique Users

38,597,072

140.0

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Smartphones

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1 in 4 Mobile Phone Owners in EU5 Now Have a Smartphone


Driving this increase are phones that provide a strong foundation for media consumption The graph shows the dominance of the Symbian operating system, Apple and RIMs increasing influence
and the recent emergence of Google Android.

Growth of Smartphones as a % of Total Market


30% 25% 20% % Market 15% 10% 5% 0% Mar-2009 Apr-2009 May-2009 Jun-2009 Jul-2009 Aug-2009 Sep-2009 Oct-2009 Nov-2009 Dec-2009 Jan-2010 Feb-2010 Mar-2010 Symbian Apple Microsoft RIM Google Palm

Product: MobiLens Data: Three month average ending March 2010


comScore, Inc. Proprietary and Confidential. 28

Country: EU5- N= 139,995

Although the Total Number of Symbian Owners are Growing they are Losing Share
Apple and RIM gaining share. Android starting to emerge.

Smartphone Marketshare Q1 09 vs Q1 10
100% 90% 16% 80% % Smartphone Owners 70% 60% 50% 40% 69% 30% 20% 10% 0% Q1 2009 Symbian Apple Microsoft RIM Google Palm Q1 2010 59% 8% 17% 3% 6% 8% 14%

Product: MobiLens Data: Three month average ending March 2010


comScore, Inc. Proprietary and Confidential. 29

Country: EU5- N= 139,995

The Tail of Two Touch Screen Smartphones


There are more people with a Nokia 5800 than there are with an iPhone 3G S

iPhone 3G S vs Nokia 5800


6,000,000

5,000,000

4,000,000 Unique Users

3,000,000

2,000,000

1,000,000

Nokia 5800

iPhone 3G S
Product: MobiLens Data: Three month average ending March 2010

comScore, Inc. Proprietary and Confidential.

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Country: EU5- N= 139,995

Smartphone Owners are Over 328% More Likely to Use Mobile Media than Non-Smartphone Users
The Apple iPhone has revolutionized the market for mobile media, however Googles Android and RIMs
Blackberry devices are providing competition in terms of usage behaviour.

Symbian device owners are less likely to use mobile media but are by far the most popular smartphone
OS.

Mobile Media Consumption by Operating System


100% 90% 80% 70% % Penetration 60% 50% 40% 30% 20% 10% 0% Apple 1,404 Android 9,419 7,597 4,422 RIM Microsoft Symbian Smartphone Used Browser Non-Smartphone Device Owners 15% 5,000 15,000 10,000 68% 63% 50% 25,000 20,000 Device Owners (000s) 93% 35,000 89% 80% 33,026 30,000

Mobile Media (Connected Media)

Used Application (except native games)


Product: MobiLens

Data: Three month average ending March 2010


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Country: EU5- N= 139,995

Summing Up

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Summing Up: The Big Picture


Mobile Media Market has fully arrived
1/3 of phone owners using mobile media Critical mass for publishers with room for sustained growth

Technology enablers continue to grow


Even faster networks / devices arriving

Growth of key consumer enablerunlimited data plansstill limited in EU


US market becoming more advanced due to increased data plan adoption

Classic mobile content businesspersonalizationin decline / flat Still work to be done to accelerate the large mobile advertising opportunity The iPhone is not the only smartphone on the market.
Symbian shows high penetration Android users show similar usage penetration

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Thank You.

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