Don Kellogg

Director of Research & Insights, Telecom

Nielsen
Mobile Industry Trends
2
Copyright 2012 The Nielsen Company. Confidential and proprietary.
Android and iOS have both benefited from Blackberrys
drop in share
43%
46%
49%
51%
52%
17%
15%
11%
8%
7%
28%
30%
32%
34%
35%
1.3% 1.3%
1.7% 1.4% 1.6%
12%
9%
8%
7%
6%
Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012
Operating System Share
US Mobile Subscribers, Q3 '11 -Q3 '12
Android Blackberry iOS Windows Phone 7 Other
3
Copyright 2012 The Nielsen Company. Confidential and proprietary.
Looking forward: iOS barely leads Android in next desired
OS, Android is underwater relative to market share
35%
32%
33%
34%
37%
34%
36%
37%
38%
40%
7%
5%
4%
4%
5%
6%
6%
18% 18%
17%
14%
12%
0%
10%
20%
30%
40%
50%
60%
Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012
Next Desired Operating System Likely Upgraders
US Mobile Subscribers, Q3 '11 -Q3 '12
Android iOS Blackberry Windows Phone 7 Not Sure
4
Copyright 2012 The Nielsen Company. Confidential and proprietary.
NUMBER OF
ANDROID & iOS
USERS
PERCENTAGE OF
APP DOWNLOADERS
WITH ANDROID AND iOS PHONES
53M 92M
80% 92%
APP APP June 2011
June 2012
Q3 2011
Q3 2012
Good news for developers and advertisers: US Mobile audience
on Android and iOS doubled between Q3 11 and Q3 12
United States; Q3 11 Q3 12
5
Copyright 2012 The Nielsen Company. Confidential and proprietary.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
M
i
d
n
i
g
h
t
5
A
M
1
0
A
M
3
P
M
8
P
M
1
A
M
6
A
M
1
1
A
M
4
P
M
9
P
M
2
A
M
7
A
M
N
o
o
n
5
P
M
1
0
P
M
3
A
M
8
A
M
1
P
M
6
P
M
1
1
P
M
4
A
M
9
A
M
2
P
M
7
P
M
M
i
d
n
i
g
h
t
5
A
M
1
0
A
M
3
P
M
8
P
M
1
A
M
6
A
M
1
1
A
M
4
P
M
9
P
M
Sun Mon Tue Wed Thu Fri Sat
P
r
o
p
o
r
t
i
o
n

o
f

T
i
m
e

Proportion of Non-Voice Usage by Category and Time of Day
June 2012, All Android Panelists
Address Book
IM
Camera
Music
Maps/Location
Video
Dialer
Browser
Games
Text Messaging
Social Networking
Home \ UI
Device interface, social networking, text messaging and gaming
account for of all device usage on Android; iOS is similar
Note: Excludes voice calls
6
Copyright 2012 The Nielsen Company. Confidential and proprietary.
Most mobile usage on iOS and Android is still clustered
around the top apps
8%
7%
14%
5%
9%
12%
45%
45%
57%
66%
71%
85%
92%
100%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Top 10 Top 25 Top 50 Top 100 Top 500 Top 1000 Everyone
Else
Distribution of Time Spent by App Tiers
US - Android & iOS, July 2012

Continued pressure for developers to get a breakout hit
App discovery evolving but more important than ever

Implications:
In July 2011, 70% of all time was
spent with top 50 apps
7
Copyright 2012 The Nielsen Company. Confidential and proprietary.
90%
78%
62%
56% 56%
28% 28%
25%
20%
17%
G
o
o
g
l
e
M
a
p
s
F
a
c
e
b
o
o
k
Y
o
u
T
u
b
e
S
t
o
c
k
s
W
e
a
t
h
e
r
T
h
e
W
e
a
t
h
e
r

P
a
n
d
o
r
a
R
a
d
i
o
T
w
i
t
t
e
r
I
n
s
t
a
g
r
a
m
S
h
a
z
a
m
Reach - Top 10 Apps on iPhone
iPhone US Panel, June 1st June 30th 2012
96%
84%
79%
76%
75%
59%
56%
21%
20% 20% 19%
G
o
o
g
l
e
P
l
a
y
G
o
o
g
l
e
S
e
a
r
c
h
G
m
a
i
l
F
a
c
e
b
o
o
k
G
o
o
g
l
e
M
a
p
s
A
n
d
r
o
i
d
G
a
l
l
e
r
y
Y
o
u
T
u
b
e
P
a
n
d
o
r
a
R
a
d
i
o
A
m
a
z
o
n
A
p
p
S
t
o
r
e
W
o
r
d
s
W
i
t
h

Q
u
i
c
k
o
f
f
i
c
e
Reach of Top 10 Apps on Android OS
Android US Panel, June 1st June 30th 2012
New to Top 10 from Jan 2012
Although the available number of Apps is growing, the Top
10 Apps remain relatively unchanged
8
Copyright 2012 The Nielsen Company. Confidential and proprietary.
Sep
2011
Oct
2011
Nov
2011
Dec
2011
Jan
2012
Feb
2012
Mar
2012
Apr
2012
May
2012
Jun
2012
Jul
2012
Aug
2012
Online Home & Work Minutes Mobile Android and iOS Minutes
62B
32B
48B
57B
-8%
+46%
Total Minutes Spent on Social Networking
Online vs. Mobile (in Billions)
If current trends continue, mobile social networking could eclipse
PC in the next 12 months
9
Copyright 2012 The Nielsen Company. Confidential and proprietary.
Social networking and gaming dominate Smartphone activity but peak
times move inversely from each other
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
Distribution of App Starts by Time of Day - Gaming vs. Social Networking
June, 2012 Android
All Events Social Networking Games
Social Networking Gaming Gaming
Social networking feeds on a critical mass of users posting new content, peaking
during the most active times of the day
Much of gaming is solitary and takes place during non-social time

10
Copyright 2012 The Nielsen Company. Confidential and proprietary.
A useful framework for thinking about apps
Social
Solitary
Entertainment Utility
WhatsApp
Yelp
LinkedIn
Square
Google Maps
Seamless
Angry Birds
Triple Town
Pulse News
Facebook
Words with Friends
Zynga Poker
Solitary Utility
Most branded/
shopping/rewards apps
Focused on efficiency or
optimization of a task
Highly situational
Social Utility
High frequency / low time
spent per session
Information gathering or
exchange focused
Social Entertainment
Deep engagement
Require others to play
Can be faddish
Frequent short sessions
Solitary Entertainment
Long sessions
Peaks during off hours
Very little user loyalty

Getting things done Killing time

11
Copyright 2012 The Nielsen Company. Confidential and proprietary.
Thank You
For more information, go to:
http://blog.nielsen.com/nielsenwire/category/online_mobile/