Post on 16-May-2015
The Elephant, the Sophisticat, and the
Secret of the Digital Native
By Arthur GoldstuckNetprophet, Cape Town, 13 May 2010
World Wide Worx
Conducts primary research into IT and telecoms, Internet, mobile technologies, technology in business strategy, and SME success factors
Key projectsInternet Access in SA; ICT in NGOsOnline media, retail and banking in SAMobility – consumers, corporates, SMEsSME Survey: largest annual survey of its kindWebagility - benchmarking web sites“The Mobile Office” – easy guide to new tech
Days of yore, when mobile Internet was REALLY big
The Declaration of November 2008 The War of Netprophet 2009 The negotiations The peace treaty The definitions
The Mobile Internet defined
Tier 1: The WAP Internet Tier 2: The Mobile Application Internet Tier 3: Mobile Web Browsing
- Arthur Goldstuck and Rick Joubert, 2009
The Mobile Internet counted
The WAP Internet – 14m plusThe Mobile Application Internet – 10m plusMobile Web Browsing – 4m
But who counts most?
Hunting elephantsMobility 2009/10 study set out to establish a usable and practical segmentation of the mobile market based on spend and usage.
The holy grail for mobile networks, marketers and content and application creators is identifying who spends more.
Consumer study was conducted among a random sample of urban cellular users, representing a user base of 16-m people.
Segmentation Overview
3 key dimensions in this market:
Age
Spend on cellphones
Sophistication
The interaction of these dimensions explains how the market works among different groups
Segmentation Overview
Sophisticats and Elephants
Together account for about 20% of users, but more than 40% of spend
Big hitters but divided by know-how These groups are where most contracts lie
Sophisticats are after ease of use, stay with what they know, use Nokia – and want Nokia and Blackberry as their next phone
Sophisticats and Elephants
Elephants want max performance from their phone / network / life
Widest range of phones, big on Nokia But use fewer features than any other group
BEWARE OF THE TARGET: Big on buying features, but second lowest non-voice spend (after Ostriches)
Sophisticats (9%)
0%
20%
40%
60%
80%
100%
Market Segment
Vodacom
Virgin Mobile
MTN
Cell C
Mobile Banking: 46% in this segment (20% in the total market) Access internet on phone: 65% (21%) Access to internet at home: 27% (14%) Internet Banking: 39% (12%) Personal Bank account; 100% (72%) Debit card: 92% (61%) Credit card: 41% (14%)
0 20 40 60
Nokia
Samsung
Motorola
LG
Sony-Ericsson
Other
HTC
Blackberry
iPhone (Apple)
Market
Segment
Network Handset brand
Sophisticats (9%)
56
39
38
29
28
22
21
19
11
10
5
5
3
1
0 10 20 30 40 50 60 70 80 90 100
Camera
Diary/organiser
MMS (picture/video messaging)
FM radio
Instant messaging/chat
Music player (MP3 Player)
Internet browser
Ability to download applications
Internet apps: Facebook, YouTube, etc.
Network internet portals
GPS
Word/excel/powerpoint
Mobile TV
Use
Have, but don't use
Phone features: Which features does your phone have? Which features do you use?
92
66
77
62
63
66
65
52
41
46
20
25
18
8
0 10 20 30 40 50 60 70 80 90 100
Market Segment
Avg features have: 10.1Avg features used: 7.0Have to use %: 70%
Elephants (10%)
0%
20%
40%
60%
80%
100%
Market Segment
Vodacom
Virgin Mobile
MTN
Cell C
Mobile Banking: 19% (20% in total market) Access Internet on phone: 12% (21%) Access to Internet at home: 18% (14%) Internet Banking: 27% (12%) Personal Bank acc; 84% (72%) Debit card: 76% (61%) Credit card: 37% (14%)
0 20 40 60 80
Nokia
Samsung
Motorola
LG
Sony-Ericsson
Other
HTC
Blackberry
iPhone (Apple)
Market
Segment
Network Handset brand
Elephants (10%)
56
39
38
29
28
22
21
19
11
10
5
5
3
1
0 10 20 30 40 50 60 70 80 90 100
Camera
Diary/organiser
MMS (picture/video messaging)
FM radio
Instant messaging/chat
Music player (MP3 Player)
Internet browser
Ability to download applications
Internet apps: Facebook, YouTube, etc.
Network internet portals
GPS
Word/excel/powerpoint
Mobile TV
Use
Have, but don't use
Phone features: Which features does your phone have? Which features do you use?
45
36
29
17
22
11
12
10
1
4
0
0
0
0
0 10 20 30 40 50 60 70 80 90 100
Market Segment
Avg features have: 7.4Avg features used: 1.9Have to use %: 25%
Argue as much as you like about the size and definition of the Mobile Internet
The Sophisticat is your real market for digital content and data-intensive apps
What does this have to do withthe Digital Native?
‘21st century children are
different.’
‘They are digital born.’
(cue New Age music)
‘They arrive digital ready.’
(cue Radiohead)
Are they Sophisticats
before they’ve earned a buck?
The elephant hunters set out to cross the digital chasm…
… and discovered the digital gap
The research
Self-funded study with assistance of 8 private schools and the Tomorrow Trust for learners from disadvantaged communities
1400 learners in private schools in Gauteng; Online questionnaires filled in at school.
300 learners from township schools; Printed questionnaires, filled in at holiday school.
Are 21st century children
different?
‘Digital Natives’?
We asked them to rate their skills levels. 1 can be a lie, 100 is a trend
20% of township kids advanced in general PC use. Private schools:
85%
42% of township kids advanced in
general Windows.
Private schools: 85%
It’s about the support
structure
Not ready for world of work
Private schools 85% advanced in Windows
05
1015202530354045
Microsoft Windows
Outlook (e-mail)
Outlook Express (e-
mail)
Outlook Calendars
Create Outlook Contacts
Mail Merge Contacts
with Word
42
18 13 2114
9
How well do you know different types of software?
And no support structure
0
5
10
15
20
25
30
35
40
Microsoft Windows
Outlook (e-mail)
Outlook Express (e-
mail)
Outlook Calendars
Create Outlook Contacts
Mail Merge Contacts
with Word
39
18 1719
1311
How well do your parents know different types of software?
Private school teachers who think kids are
advanced: 53%
The canary in the coalmine
Private schools (township schools: 13%)
30% of township kids advanced in general Internet.Private schools:
82%
51% of private school teachers
advanced in general Internet
(and think kids are at same level)
Oh c’mon, these are digital divide
clichés, man
The Internet is the doorway
Private schools 93% advanced in Google
0
5
10
15
20
25
30
35
40
45
Google Wolfram Alpha LiveSearch Ask Jeeves
44
10
22
8
How well do you know online search?
Not yet such private lives
Private schools 70% advanced in Hotmail
0
5
10
15
20
25
Hotmail Yahoo Mail Gmail Webmail
9
22
16
13
How well do you know online mail?
The new doorway
Private schools 84% advanced
0510152025303540
Facebook Privacy settings Applications
36
2829
How well do you know Facebook?
Playing with the future
(Private schools twice as advanced)
0
5
10
15
20
25
30
35
40
45
Downloading music
Downloading games
Downloading videos
Editing music Editing videos Playing online games
45 45 45
32 32
38
How good are you with multimedia?
Enter the cellphone
010203040506070
General usage
Browsing the Internet
Using e-mail
Using SMS Using MXIT
52 4938
69 67
How well do you know your way around cellphones?
Beware of the app
Private schools 90% and 87% advanced
67
67.5
68
68.5
69
69.5
70
Using camera built into phone
Using other applications on the phone
68
70
Smile for the camera
Mxit: the great leveller
0102030405060708090
Browsing the Internet
Using e-mail Using SMS Using MXIT
76
58
90
64
Private: How well do you know your way around cellphones?
Look again
010203040506070
General usage
Browsing the Internet
Using e-mail
Using SMS Using MXIT
52 4938
69 67
How well do you know your way around cellphones?
The big secret:
Digital Peer Group Learning
Research reveals youth buy into
digital when their peers buy into it
Kids are digital bought,
not born
Facebook reveals same about adults
It’s not about your age, it’s
about your Digital Peer Group
What are you going to do
about it?
All communities of interest can learn
from the kids
Remember what Steve Jobs said to John Sculley, then
CEO of Pepsi?
‘Do you want to sell sugar water all of your life or do
you want to change the world?’
Well, do you want to sell apps all
your life or do you want to change the
world?
Build Digital Peer Group Learning
into your business model
Build it into your development
model
Build it into your marketing model
You, too, can change
the world
Thank youArthur Goldstuck (011) 7827003
arthur@worldwideworx.com
www.worldwideworx.com
Twitter: art2gee