NinthDecimal Mobile Audience Q1 2012 Insights Report

NinthDecimal Mobile Audience Insights Report Q1 2012

Source: NinthDecimal, Q1 2012NinthDecimal.com

Table of Contents

Connected Device Trends 2-3

Mobile Shopping Behavior 4-5

Location Trends 6-7

Connected Device Adoption 8-9

Worldwide Location Highlights 10-11

The Q1 Mobile Audience Insights Report examines location and mobile shopping trends as well as connected device adoption. This quarter we tracked three key emerging trends in the location and mobile markets. The first area reviews Wi-Fi usage on smartphones and tablets. The second key area looks at proximity-specific shopping behaviors and mobile wallet usage. The third trend evaluates how business travelers are leveraging location when on-the-go. Key highlights include:

• Wi-Fi usage on mobile devices has grown year-over-year. Comparatively, laptop usage has declined. • 37% of on-the-go consumers have used a mobile wallet within the past 3 months. • Two-thirds of C-level executives and small business owners are using location-based apps on a weekly basis or more frequently.

On-the-go Consumers

Have used a Mobile Walletin the past 90 days

Source: NinthDecimal, Q1 2012

37%



Mobile devices represented 45% of Q1 public Wi-Fi connections in 2012

• Almost half of all Public Wi-Fi ad requests were served to smartphones (31%) and tablets (14%) in the first quarter of 2012. • By contrast, laptop traffic represents 55% of public Wi-Fi traffic, decreasing from 70% of Wi-Fi traffic the year prior. • Nine of out ten consumers report advantages for accessing public Wi-Fi from their smartphones instead of using 3G/4G, with the top reasons being a faster connection speed (55%) and avoidance of data plan charges (37%).

Connected device adoption: Public Wi-Fi trends

70%

55%

21%31%

9%14%

55% 37% 17% 7%

10% 3%

Public Wi-Fi connections by device

What are the biggest advantages to using public Wi-Fi from your smartphone?

Laptop Smartphone TabletSource: NinthDecimal, Q1 2012


Q1 2011

Q1 2012

Fasterconnection

To avoid data charges

I only use3G/4G

Streamingcontent

I like to use abroadband card

instead

To teather tomy laptop



Connected device adoption: Tablet ownership

Nearly one in every two smartphone owners also own tablets

• 47% of smartphone owners now own tablets, up from 32% in Q4 2011. • Tablet ownership, in general, will continue to growth throughout the year. Gartner estimates that 118.9 million units will be sold worldwide in 2012 - a 98% increase in tablet sales from 2011.* • Furthermore, latest research forecasts that 90% of tablets use Wi-Fi only, and thus tablets will continue to grow as a percent of the Wi-Fi network.** • In terms of audience behaviors, tablet owners are more likely to exhibit ‘showrooming’ tendencies: 10% of tablet owners comparison shop and purchase on their mobile devices instead, compared with 5% of those who do not own tablets.

Do you plan to purchase a tablet? Tablet owners are

more likely to comparison shop in-store and purchase mobile on

device instead

2x47% 27% 26%

Own a tablet Plan to purchase No plans topurchase



*Source: Gartner, April 10, 2012**Source: MediaPost, 2012



Mobile shopping behaviors: In-store shopping behavior

Consumers are price driven when comparison shopping in-store with their mobile devices

• 49% compare prices with other stores, 15% price compare with the store’s own website, and 13% sought to use a mobile coupon. • Other reasons to comparison shop included finding colors and options (10%) or because the item was out of stock (10%). Furthermore, 5% never planned to purchase. • Consumers between 25 – 44 are the most active comparison shoppers, both with another retailer (54%) or the store’s own site (19%). Consumers under 24 are the most likely to seek alternative product options (15%). • Comparison shopping also skews male: 53% of men comparison shop with another retailer and 17% compare with the store’s own website, compared with 43% and 12% of women, respectively.

Price com

pare w

ith

another r

etaaile

r

Price com

pare on

store

’s own website

Use a mobile

coupon

Find colors or

other o

ptions

Item

was out

of sto

ck

Never planned to

purchase in

the sto

re

When comparison shopping in-store, what is the primary reason?

Source: NinthDecimal, Q1 2012 Source: NinthDecimal, Q1 2012

49%

15% 13%

10% 10%

5%

To price compare with another retailer

To price compare with the store’s own site

To use an online or mobile coupon

To find other colors or options

Item in store was out of stock

Never planned to purchase in-

store. Just went to see the product

42% 54% 50% 53% 43%

14% 19% 14% 17% 12%

16% 16% 11% 12% 15%

15% 10% 9% 9% 11%

12% 11% 8% 10% 10%

6% 4% 7% 5% 5%

<24 25-44 45+

Demographic Breakdown



Mobile shopping behaviors: Mobile wallet adoption

More than one-third of the on-the-go audience have recently used a Mobile wallet

• 37% of on-the-go consumers have used a mobile wallet in the past 90 days. • Of the 63% who have not, 8% indicate that they would like to, and 14% do not know what a mobile wallet is. • PayPal is the leading mobile wallet solution: 46% of mobile wallet consumers have used PayPal, 29% have used Amazon, 18% have used Google Wallet and 8% of consumers have used other options.

Have you used a mobile wallet in the past 90 days?

In the past 90 days, which of the following mobile wallets have you used to purchase in-store?


Yes No What is it? I’d like to

8%14%

37%

46% use

29% use

18% use

8% use

41%

Of this 37%



Location-based trends: Mobile application usage

The majority of business travelers use location-based apps on a weekly basis or more frequently

• 73% of small business owners use location-based apps on a daily (57%) or weekly (16%) basis. Similarly, 64% of C-level executives also report using location-based apps daily (52%) or weekly (12%). • More than half of business people use apps on a daily basis regardless of position or company size. • When traveling for business, the top three most-used app categories are travel, weather, and social networking.

How often do you use location-based applications? Most used app categories for business travel

Small Business Owners C-Level Executives

Daily Weekly Monthly

57%16%

27%

12%

36%

52%

1. Travel

2. Weather

3. Social Networking

4. News or Reference

5. Music/Entertainment

6. Games

7. Sports

8. Business/Finance

9. Lifestyle/Retail

10. Utility

Source: NinthDecimal, Q1 2012 Source: NinthDecimal, Q1 2012Source: NinthDecimal, Q1 2012



Location-based trends: Usage of location-based services

Business travelers highly value local services when conducting business on-the-go

• More than half of small, mid and enterprise level business travelers believe that booking reservations is the most important service while on-the-go, followed by finding nearby business services. • Finding entertainment and connecting to their social network are of nearly equal importance to all travelers. • Other important services include finding resources such as food, lodging, or online services for checking email.

Which local services are important when conducting business while on-the-go?


Small business travelers

Mid-size business travelers

Enterprise business travelers

54%

68%

64%

46%

43%42%

34%

29% 30% 30% 31% 31%

5%

2% 4%

Bookingreservations

Finding nearbybusiness services

Connecting to mysocial network

Finding entertainment

Other

RESERVATION RESERVATIONRESERVATIONRESERVATIONRESERVATION



Connected device adoption: U.S. highlights

Apple iPad loses market share to the iPhone in the first quarter 2012:

• Apple devices remain in the top 3 positions, however only the iPhone sees gains in Q1 2012 with a 2.3% increase in market share. • The Kindle and Ascend II also see gains within the top 10 devices, by 0.7% and 0.5%, respectively. All other devices experience a decline in market share.

Android makes large gains in market share in the first quarter of 2012 :

• Android OS is the only operating system to see gains between Q4 2011 and Q1 2012, increasing by 3.2%.


Top 10 Wi-Fi Mobile Device: Q1 2012 Top Wi-Fi Mobile OS: Q1 2012

1 Apple iPhone 43.4% 1 + 2.3%

2 Apple iPad 27.0% 2 - 3.9%

3 Apple iPod Touch 10.4% 3 - 1.7%

4 Kindle Fire 1.59% 5 + 0.7%

5 EVO 4G 0.53% 4 - 0.1%

6 Ascend II 0.47% 6 + 0.5%

7 Torch 0.44% 7 - 0.3%

8 Samsung Galaxy Tab 0.34% 8 - 0.2%

9 Samsung Galaxy S 0.33% 9 - 0.6%

10 Sensation 0.31% 10 - 0.1%

1 iOS 81.2% 1 - 1.9%

2 Android OS 16.1% 2 + 3.2%

3 RIM OS 1.9% 3 - 0.3%

4 Windows OS 0.4% 5 - 0.4%

5 Web OS 0.3% 4 - 0.3%

6 Symbian OS 0.2% 6 - 0.1%

7 Bada OS 0.0% 7 - 0.0%

Q1Rank

Q1Rank

Mobile Device Top 10 Mobile Device OSQ1 2012% of Ad

Requests

Q1 2012% of Ad

Requests

Q4 2011Rank

Q4 2011Rank

% Change in Market Share




Connected device adoption: U.K. highlights

Top 10 devices consists primarily of three manufacturers in the first quarter of 2012 - Apple, Samsung and HTC:

• The Apple iPhone and iPad decrease in market share by 1.5% and 1.7% respectively, while the iPod saw a 0.5% increase. • Nearly all other Top 10 android-based devices saw increases in marketshare.

Similar to the US, Android OS makes large gains in market share in the first quarter of 2012:

• Android OS increases by 4.7% from Q4 2011 to Q1 2012, primarily at the expense of iOS and RIM OS which decrease by 2.5% and 1.3%, respectively.


Top 10 Wi-Fi Mobile Device: Q1 2012 Top Wi-Fi Mobile OS: Q1 2012

1 Apple iPhone 49.5% 1 - 1.5%

2 Apple iPad 25.4% 2 - 1.7%

3 Apple iPod Touch 5.5% 3 + 0.5%

4 Samsung Galaxy S II 2.7% 5 + 1.3%

5 Samsung Galaxy S 1.0% 7 + 0.2%

6 Samsung Galaxy Ace 0.8% 19 + 0.8%

7 HTC Desire 0.8% 4 - 0.9%

8 HTC Sensation 0.8% 9 + 0.2%

9 HTC Desire HD 0.6% 36 + 0.6%

10 HTC Wildfire S 0.5% 21 + 0.5%

Q1Rank

Mobile Device Top 10 Q1 2012% of Ad

Requests

Q4 2011Rank


1 iOS 80.7% 1 - 2.5%

2 Android OS 16.6% 2 + 4.7%

3 RIM OS 1.8% 3 - 1.3%

4 Windows OS 0.3% 5 - 0.3%

5 Symbian OS 0.3% 4 - 0.7%

6 Web OS 0.1% 6 - 0.1%

7 Bada OS 0.1% 7 - 0.0%

Q1Rank

Mobile Device OS Q1 2012% of Ad

Requests

Q4 2011Rank




Worldwide location highlights: Public Wi-Fi locations

Worldwide public Wi-Fi locations continue to grow from 2011 into the first quarter of 2012:

• Quarterly growth of 1.3% from Q4 2011 to Q1 2012. • Annual growth of 26.6% from Q1 2011 to Q1 2012.

Source: NinthDecimal, Q1 2012 NinthDecimal, Q1 2012

*Base starting at 230,000

Worldwide public Wi-Fi locations: 2008 – 2012

Worldwide quarterly growth in public Wi-Fi locations

237,507577,250

647,788

682,929692,115

289,476

414,356

682,929 692,112

2008 Q1 20112009 Q3 20112010 Q4 20112011 Q1 20122012



Worldwide location highlights: Public Wi-Fi locations

United Kingdom, United States and China remain in the top three spots:

• Public Wi-Fi counts remained stable in each of the Top 10 countries between Q4 2011 and Q1 2012.

No change in public Wi-Fi locations seen both in the U.S. and domestically:

• Free vs. Paid distribution saw only slight variations throughout 2011, and has plateaued in Q1 2012.



Public Wi-Fi business models: Worldwide Q1 2012

Public Wi-Fi business models: U.S. Q1 2012

1 United Kingdom 181,684 1 0.0%

2 United States 111,205 2 0.0%

3 China 104,112 3 0.0%

4 South Korea 83,650 4 0.0%

5 France 35,390 5 0.0%

6 Taiwan 24,110 6 0.2%

7 Russian Fed. 16,832 7 0.0%

8 Japan 15,722 8 0.0%

9 Germany 14,959 9 0.0%

10 Sweden 9,303 10 0.0%

Q1Rank

Country Q1 2012Number of Locations

Q4 2011Rank

% Change Paid

Free

Paid

Free

22.3%

22.9%

77.7%

77.1%

InsightsNinthDecimal Mobile Audience Insights Report Q1 2012

NinthDecimal is the leading mobile audience media company, combining location and audience data to deliver targeted advertising across premium locations and wireless devices.

This Insights report provides a snapshot of usage trends and audience data over public Wi-Fi for the first quarter of 2012. This report is intended to highlight market trends for advertisers.

NinthDecimal’s Location-Based Media Channel is comprised of more than 30,000 public Wi-Fi locations through partnerships with more than 30 leading wireless broadband telecommunications providers, with venues such as airports, hotels and cafés that serve more than 40 million unique users monthly. NinthDecimal connects with the on-the-go audience across multiple devices from laptops, to smartphones, to tablets. NinthDecimal’s registry of public Wi-Fi locations includes more than 450,000 public Wi-Fi locations in 144 countries. NinthDecimal has been reaching on-the-go audiences since 2003.

For questions about this report, or for recommendations for future reports, please contact us at [email protected]

Methodology:

NinthDecimal’s Mobile Audience Insights Report is based on data from approximately 315,000 public Wi-Fi locations, as well as

surveying more than 5,000 customers randomly selected across NinthDecimal’s Wi-Fi Media Channel in January ’12 – March ‘12.

NinthDecimal serves advertisements to over 30,000 public Wi-Fi locations in North America and we record data from every ad

request. This report is based on the ad request data we collected from January – March 2012. Quarterly public Wi-Fi location

rankings and business model distributions are based on the final day of the quarter.

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