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10 CONSUMER USE OF SMARTPHONES & MOBILE DEVICES

10.1 Overview According to the Communications Industry Forecast 2011-2015, by Veronis Suhler Stevenson (VSS, www.vss.com), adults spent 77 hours per person, on average, using mobile media in 2010, an increase of 49.7% from 2009. Based on the rapid adoption of computer tablets by consumers and businesses, VSS forecasts a 35.3% increase in time spent with wireless media in 2011, reaching 104 hours per person. A 19.8% compound average annual growth rate is forecast through 2015, with consumer purchases of e-books, music, mobile applications, and streaming video driving the increase. _________________________________________________________________

Our obsession with mobile shouldnt be about technology or tactics; rather its the ability to change the way we work, plan, communicate, and buy.
Advertising Age, 10/13/11 _________________________________________________________________

10.2 Mobile Internet Access eMarketer (www.emarketer.com) assesses the number of U.S. mobile Internet users and penetration as follows:
No. of M obile Internet Users Pct. of M obile Phone Users Pct. of Population

2010: 2011: 2012: 2013: 2014:

85.5 million 101.1 million 115.2 million 129.7 million 142.1 million

34.7% 40.3% 45.2% 50.1% 53.9%

27.6% 32.3% 36.4% 40.6% 44.1%

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The Mobile Internet Report, by Morgan Stanley (www.morganstanley.com), predicts that by 2013, more consumers will connect to the Internet via a mobile device than on desktop computers.

10.3 Cellphones According to a September 2011 report by the Pew Internet & American Life Project (www.pewinternet.org), 83% of adults own a cellphone. Ninety percent (90%) of those with an annual income of $30,000 to $50,000 own a cellphone; among adults with an income of $75,000 or more, ownership rises to 95%. In 2011, cellphone owners made or received an average of 12.3 voice calls per day, with the median cell user engaging in five voice calls both of these figures are unchanged from a year prior. By gender and age the average and median number of calls were as follows: Gender Average Median Female: 10.8 5 Male: 13.8 6 Age 18-to-29: 30-to-49: 50-to-64: 65 and older:

17.1 14.5 8.8 3.8

7 6 5 2

10.4 Smartphones The Pew Internet & American Life Project estimates that 85% of adults, or 42% of cellphone owners, owned a smartphone as of August 2011. According to The Nielsen Company (www.nielsen.com), while 43% of all mobile subscribers in the U.S. had a smartphone as of August 2011, 56% of those who got a new device in the prior 3 months chose a smartphone over a feature phone. The gender and age distribution of smartphone owners in August 2011 was as follows (source: The Nielsen Company): Gender Female: 50% Male: 50% Age 13-to-17: 18-to-24: 24-to-34: 35-to-55: 45-to-54: 55 and older:

2% 16% 26% 19% 20% 18%

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According to an August 2011 survey by Nielsen, 43% of smartphone owners have an Android device. Among those who got a new smartphone in the prior three months, 56% picked an Android device. Apple iOS remains popular in second place with 28% of all smartphone users, and the same percentage among those who recently got a new device. _________________________________________________________________

Those figures could change quickly in the months to come. Every time Apple launches a new iPhone or makes it available on a new wireless carrier, there is an increase in their sales.
Don Kellogg, Director of Telecom Research The Nielsen Company, 9/26/11 _________________________________________________________________

Eighteen percent (18%) of smartphone owners use the BlackBerry operating system.

10.5 Tablet Computers According to the Pew Internet & American Life Project, 8% of adults reported owning a tablet computer such as an iPad, Samsung Galaxy, or Motorola Xoom in May 2011. This is a 3 percentage-point increase in ownership since November 2010. Overall, the highest rates of tablet ownership are among Hispanic adults, and those with household incomes of at least $75,000 annually. The gender and age distribution of tablet owners in August 2011 was as follows (source: The Nielsen Company): Gender Female: 43% Male: 57% Age 13-to-17: 18-to-24: 24-to-34: 35-to-55: 45-to-54: 55 and older:

11% 13% 22% 17% 18% 19%

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_________________________________________________________________

In the U.S., as recently as Summer 2010, tablet owners tended to be male and on the younger side ... this is no longer the case. Back in Q3 2010, for example, 62% of tablet owners were under the age of 34 and only 10% were over the age of 55. By Q2 2011, only 46% of tablet owners were under the age of 34 and the percentage of those over 55 had increased to 19%.
Nielsen Wire, 8/25/11 _________________________________________________________________

An April 2011 survey by AdMob (www.admob.com) investigated use among tablet owners. Approximately 70% reported spending at least one hour per day using the device; 38% spent over 2 hours on it. While just 28% consider it their primary computer, 77% said they are spending less time on desktop or laptop PCs since they got a tablet. More than 40% of tablet owners spend more time each day with that device than with a traditional computer or with a smartphone; a third use tablets more than they watch TV.

10.6 E-Book Readers According to the Pew Internet & American Life Project, the percentage of U.S. adults with an e-book reader doubled from 6% to 12% between November 2010 and May 2011. Hispanic adults, adults younger than age 65, college graduates, and those living in households with incomes of at least $75,000 are most likely to own e-book readers. Parents are also more likely than non-parents to own these devices. The gender and age distribution of e-book reader owners in August 2011 was as follows (source: The Nielsen Company): Gender Female: 61% Male: 39%

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Age 13-to-17: 18-to-24: 24-to-34: 35-to-55: 45-to-54: 55 and older:

7% 10% 18% 14% 21% 30%

_________________________________________________________________

Looking at the data by gender underlines key changes in the e-reader category. Sixty-one percent (61%) of all e-reader owners are now female, compared to a mere 46% in Q3 2010.
Nielsen Wire, 8/25/11 _________________________________________________________________

10.7 Situational Use A May 2011 study by The Nielsen Company asked consumers where they use smartphones, tablets, and e-readers, and how much time they spend with their devices in each situation. Responses were as follows: Smartphone Use Distribution of Tim e Watching TV: 68% 20% Lying in bed: 51% 11% With friends/family: 58% 12% Waiting for something: 59% 12% In the bathroom: 28% 10% Attending a meeting/class: 23% 3% Shopping/running errands: 59% 10% Commuting: 47% 3% Other: 50% 19% Tablet Watching TV: Lying in bed: With friends/family: Waiting for something: In the bathroom: Attending a meeting/class:

70% 57% 44% 42% 25% 24%

30% 21% 10% 9% 4% 5%

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Shopping/running errands: Commuting: Other:

21% 20% 35%

4% 4% 13%

E-reader Watching TV: Lying in bed: With friends/family: Waiting for something: In the bathroom: Attending a meeting/class: Shopping/running errands: Commuting: Other:

35% 61% 17% 32% 17% 10% 9% 11% 39%

15% 37% 5% 9% 1% 2% 4% 3% 23%

10.8 Mobile Activities According to the Pew Internet & American Life Project, the following are percentages of adult and teenage cellphone users who did each of the following on their phone in 2010: Adults (age 18 and older) Took a picture: 76% Sent or received text messages: 72% Accessed the Internet: 38% Played a game: 34% Sent or received email: 34% Recorded a video: 34% Played music: 33% Sent or received instant messages: 30% Used an app: 29% Used social networking site: 23% Watched a video: 20% Posted a photo or video online: 15% Purchased a product: 11% Used a status update service: 10% Teens (ages 12-to-17) Took pictures: Shared pictures with others: Played music: Played games: Exchanged videos: Exchanged instant messages:

83% 64% 60% 46% 32% 31%

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Went online for general purposes: Accessed social network sites: Sent or received email: Purchased a product:

27% 23% 21% 11%

The following are demographics of adults who engage in various activities using their cellphone (source: Pew): Age Text M essage Go Online W atch Video 18-to-29: 95% 65% 40% 30-to-49: 82% 43% 20% 50-to-64: 57% 18% 6% 65 and older: 19% 10% 4% According to Mobile Year In Review 2010, a February 2011 report by comScore, mobile activities by U.S. mobile users in the fourth quarter of 2010 were as follows (percent of mobile subscribers engaging in activity): Exchange text message: 68% Take pictures: 52% Used connected media: 47% Accessed news and information: 40% Used browser: 36% Used app: 34% Used email: 30% Accessed weather: 25% Accessed social networking site: 24% Played games: 23% Accessed search: 21% Captured video: 20% Accessed maps: 18% Used instant messaging: 17% Accessed sports information: 16% Listened to music: 15% Accessed bank account: 11% Accessed financial news: 10% Accessed restaurant information: 10% Accessed traffic reports: 8% Accessed classifieds: 7% Accessed online retail: 7% Watched TV or video: 6% Accessed travel service: 4% According to an April 2011 survey by AdMob, tablet owners use their devices for the following activities (percentage of respondents):

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Playing games: Searching for information: Email: Reading news: Social networking: Entertainment (music, videos): Reading ebooks: Shopping online:

84% 78% 74% 61% 56% 51% 46% 42%

10.9 Texting According to a September 2011 survey by the Pew Internet & American Life Project, among the 83% of cellphone-owning adults, 73% send and receive text messages. Twenty-seven percent (27%) of cellphone owners do not use text messaging, even on occasion. Text messaging users send or receive an average of 41.5 messages per day, with the median user sending or receiving 10 texts daily. Two years prior these figures were 29.7 and 5, respectively. When those who text were asked how they prefer to be contacted, 31% said they preferred texts to talking on the phone, 53% said they preferred a voice call to a text message, and 14% said the contact method they prefer depends on the situation. Young adults are the most avid texters by a wide margin. Cellphone owners ages 18-to-24 exchange an average of 109.5 messages daily, or more than 3,200 texts per month. The typical or median cellphone owner in this age group sends or receives 50 messages per day, or 1500 messages per month.

10.10 Mobile Email According to comScore (www.comscore.com), 70.1 million people used mobile email in November 2010, a 36% increase from a year prior. Among mobile subscribers, 43.5 million used mobile email almost every day, a 40% increase from November 2009. The index* by gender and age for mobile email use was as follows (source: comScore): Gender Female: 87 Male: 114 Age 12-to-17: 18-to-24: 25-to-34: 35-to-44: 45-to-54:

106 146 160 124 88

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55-to-64: 65 and older:

50 25

* Index = percentage mobile mail users percent mobile users

_________________________________________________________________

Email usage via mobile devices has experienced significant growth over the past year, driven largely by increased smartphone adoption. Younger age groups showed a higher probability of accessing email from their mobile devices compared to older segments. Persons age 25-to34 were 60% more likely to access email than an average mobile user, with those between the ages of 18-to-24 being 46% more likely to do so, representing the two age segments with the highest propensity. Overall, males were 14% more likely to be users of mobile email.
Center for Media Research, 2/1/11 _________________________________________________________________

10.11 Mobile Video Mobile video is assessed in section 16.6 of this handbook.

10.12 Mobile Marketing Mobile marketing is assessed in Chapter 22 of this handbook.

10.13 Market Resources comScore, 11950 Democracy Drive, Suite 600, Reston, VA 20190. (703) 438-2000. (www.comscore.com) CTIA - The Wireless Association, 1400 16th Street NW, Suite 600, Washington, DC 20036. (202) 736-3200. (www.ctia.org) eMarketer, 75 Broad Street, 32nd Floor, New York, NY 10004. (212) 763-6010. (www.emarketer.com)

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Pew Internet & American Life Project, 1615 L Street NW, Suite 700, Washington, DC 20036. (202) 419-4500. (www.pewinternet.org) The Nielsen Company, 770 Broadway, New York, NY 10003. (212) 708-7500. (www.nielsen.com)

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