Philippines mobile internet trends

38
THE PHILIPPINES MOBILE INTERNET CROWD YOUNG, AFFLUENT, AND GROWING FAST Photo: Sivesh Kumar

Transcript of Philippines mobile internet trends

Page 1: Philippines mobile internet trends

THE PHILIPPINES MOBILE INTERNET CROWD

YOUNG, AFFLUENT, AND GROWING FAST

Photo: Sivesh Kumar

Page 2: Philippines mobile internet trends

This Philippines mobile trends report combines data from a recent survey of over 900 mobile internet users (smartphone and feature phone), and other publicly available research. Mobile internet users is a small but fast growing group of people in a country where 18 million Filipinos live live on $1.25 a day or less. The survey was conducted by On Device Research in mid-June, 2014.

Source: Asian Development Bank 2013

Page 3: Philippines mobile internet trends

ON

Language preference of the mobile internet users

40% English

60% Filipino

OO ON

ON ON ON ON

ON ON

ON ON

ON Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines

Page 4: Philippines mobile internet trends

97  million!

101%!

70%!

39%!w!

O!

96%!

15%!

g

Smartphone penetration Mobile penetration

Internet penetration

Population Netizens under 29 years

Netizens on social media

Source: Nielsen, Tigercub Digital, US Census Bureau, World Bank

The Philippines 2014

Page 5: Philippines mobile internet trends

The Philippines has the lowest smartphone penetration in South-East Asia O

15%

expected to reach 50% in 2015

] ] ]

Indonesia 23%

Malaysia 80%

Thailand 49% Singapore 87%

Source: Tigercub Digital, Oxford Business Group

Page 6: Philippines mobile internet trends

>  

+!

Smartphone penetration is growing faster in the Philippines than Indonesia and Vietnam combined

Source: International Data Corp 2014

Page 7: Philippines mobile internet trends

] ] Android smartphones from the local “Big 3” are priced in

the $50-$250 range O ]

Lower priced local brands are expected to drive smartphone growth

Page 8: Philippines mobile internet trends

Samsung rules, for now Very competitive market, lots of different brands with low market share making up almost a third of the Android phones in use

3%

3%

3%

5%

7%

7%

29%

43%

MyPhone

Alcatel

LG

Lenovo

CherryMobile

Sony

Other

Samsung

Source: On Device Research, June 2014 n=900 Android users in the Philppines

Page 9: Philippines mobile internet trends

Huawei is aggressively targeting the smartphone market, aiming to gain 10% market share by 2015.

In June 2014 it launched Ascend G6 at half the price ($228) compared to the previous model P6.

Other Chinese brands like Oppo and Xiaomi are likewise eyeing the country for their Asian expansion.

Huawei has eyes on the Philippines

Source: Tech in Asia, Philippine Star

Page 10: Philippines mobile internet trends

28 million mobile phones sold in 2013

N O22.9 million feature phones  

5.1 million smartphones

82% 18%

Source: International Data Corp 2014

Page 11: Philippines mobile internet trends

FILIPINO MOBILE INTERNET USERS

Young, urban, affluent

NB! Survey data on following slides represents the average mobile internet user

78O

Page 12: Philippines mobile internet trends

f k 56% males 44% females

f Average for South-East Asia

63% males

37% females k

Source: The Mobile Marketing Association

More women go online with their phones compared to South-East Asia average

Page 13: Philippines mobile internet trends

16-24 53% 25-34

35%

35-44 9%

45+ 3%

  88% of the total mobile internet population is under the age of 34!

N] ] ]

Mobile market is young and will continue to grow – it’s vital for brands to target these young mobile-first consumers.

Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines

Page 14: Philippines mobile internet trends

Tablets more popular than laptops Smartwatches, fitness trackers, and e-readers owned by very few Q. What consumer electronics do you own?

2%

2%

3%

7%

23%

25%

30%

E-reader (e.g. Amazon Kindle)

Fitness tracker (e.g. Fitbit)

Smartwatch

Smart TV

Desktop computer

Laptop/netbook

Tablet computer (e.g. iPad)

38% of English speakers own a laptop or netbook, while only 16% of Filipino speakers do

Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines

Page 15: Philippines mobile internet trends

85% plan to purchase an electronic device in the next six months Q. Which of the following consumer electronics do you plan on purchasing in the next six months?

2%

4%

9%

10%

14%

15%

22%

24%

29%

E-reader

Fitness tracker (e.g. Fitbit)

Smartwatch (e.g. Samsung gear)

Feature phone

Desktop computer

Smart TV

Tablet computer (e.g. iPad)

Smartphone

Laptop/netbook

Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines

Page 16: Philippines mobile internet trends

Top mobile carriers in the Philippines ` ON

54% share 29% share 46 million subscribers 24.5 million subscribers

Other service providers include Sun Cellular, Talk’N Text, Touch Mobile, and ABS-CBN

Source: Zong

Page 17: Philippines mobile internet trends

15% 17%

12%

8%

11% 13%

2% 1%

Less than P99 P100-P299 P300-P499 P500-P799 P800-P999 P1,000-P1,799 P1,800-P2,499 More than P2,500

Note: 1 Philippine Peso equals 0.023 US Dollar

44% spend less than $12 a month on mobile plan Q. Approximately how much do you pay on average per month for your mobile plan?

$12 per month

$41 per month

Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines

Page 18: Philippines mobile internet trends

The Philippines has one of the slowest LTE speeds worldwide

Smart Communications is the 5th slowest network among 38 surveyed with 4.43 Mbps

Globe Telecom is the 7th slowest network with 6.46 Mbps

* Australian networks have the fastest LTE with 24.5 Mbps

Source: Open Signal Photo: EricOuano

Page 19: Philippines mobile internet trends

w 2 out of 5 mobile internet users are happy with their data speed

41% 34% 25%

Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines

SATISFIED NEUTRAL UNSATISFIED

Page 20: Philippines mobile internet trends

^ 17%

7% 12%

3%

50%

11%

100MB 700MB 3GB 5GB Unlimited I don't have internet access

through my postpaid plan

Filipinos are drawn to unlimited internet packages Q. Select the level that is closest to your mobile internet package

Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines

Page 21: Philippines mobile internet trends

40% of smartphone owners in the Philippines spend over 5 hours a day

on their phone Source: Global Web Index

=

Page 22: Philippines mobile internet trends

94% of internet users in the Philippines use Facebook

Only 54% in the US do

F

F G

F

G

F G

F F G

F G F

G Source: Tech in Asia

Page 23: Philippines mobile internet trends

42% of total screen time in the Philippines is on social media

Filipino social media users are #1in the Asia Pacific

region spending 4 hours/day in all social channels

China: 1.5 hours/day Indonesia: 2.9 hours/day

Source: Tencenet, Facebook, CNNIC, Statistic Brain

Page 24: Philippines mobile internet trends

9%

8%

10%

15%

16%

17%

27%

27%

82%

Kakao Talk

WhatsApp

Line

WeChat

Twitter

Yahoo Messenger

Skype

Viber

Facebook Messenger

b

80% use Facebook Messenger Note that 2nd and 3rd most popular apps both offer free international calls Q. Which chat apps do you use regularly (at least once a week)?

Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines

Page 25: Philippines mobile internet trends

Apps are extremely popular

32% of Filipino smartphone owners download six or more apps per month

45% of these people have paid for app installs or in-app purchases each month

78% of mobile internet users downloaded an app or game in the last month

Source: Jana 2014, Vserv 2013

Page 26: Philippines mobile internet trends

b

2%

3%

4%

8%

10%

11%

19%

29%

Virtual gifts

Gift cards

Physical items

Calls worldwide

Stickers

Videos

Music

Games

52% have recently bought something on their phone Q. Which of the following have you purchased via a social messaging app within the past week?

Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines

Page 27: Philippines mobile internet trends

In November 2013 Typhoon Haiyan devastated the Philippines killing over 6,250 people and injuring another 28,650.

App developers and mobile operators stepped in to save lives change the way people are warned about natural disasters in the future.

Disaster warnings go mobile

Source: Wikipedia

Page 28: Philippines mobile internet trends

Apps like RaincheckPH and iTyphoon alert users of weather threats

However, only 16% of mobile internet users have used one of these typhoon warning apps. What about the rest?

Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines

Page 29: Philippines mobile internet trends

In June 2014 the Philippines passed a law ordering all mobile operators to send warnings to those in the path of typhoons and other natural disasters.

Mobile emergency alerts are now required by law

Source: Dailyjournal, June 2014

Page 30: Philippines mobile internet trends

Typhoon relief gave mobile cash usage a boost

Globe BanKO partnered with Mercy Corps to help people receive mobile cash transfers as only 27% of people have bank accounts.

Nearly 22,000 households were introduced to the service, receiving much needed financial support to recover from the disaster.

Source: GMA News, May 2014

Page 31: Philippines mobile internet trends

73% of the Filipino population does not have a bank account

Credit card penetration is only 3%

Alternative payment methods have cropped up to cater the cardless population.

Source: Tech in Asia, World Bank Photo: Kevin Servigon

The average population is quite different from the mobile internet users…

Page 32: Philippines mobile internet trends

9%

8%

8%

10%

11%

12%

Other payment services

BancNet

PayCash by Pesopay

Smart Money

PayPal

GCash

Over half have used online payment services in the last 3 months Q. Which payment services have you used in the last 3 months?

Other payment services include for example Dragon Pay, Apptivate and Bitcoin.

Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines

Page 33: Philippines mobile internet trends

Ewallets from leading mobile providers are the most popular O Ewallets like Smart Money and GCash allow users to pay bills, reload airtime, and transfer money to businesses and people

O Users load ewallets with cash via in store transactions

O 22% use either Smart Money from Smart Communications or GCash from Globe Telecom

Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines

Page 34: Philippines mobile internet trends

Online cash payment platforms

# •  Cash payment processing services that allows

merchants to sell online and get paid in cash. •  Merchants can accept cash payments at more

than 5,000 outlets nationwide. •  Usage of these services isn’t widespread yet –

only 8% have used PesoPay.

Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines

Page 35: Philippines mobile internet trends

Over half are streaming music Q. Which of the following music streaming services do you use regularly (at least once a week)?

8%

3%

6%

8%

10%

11%

13%

Other

Amplify

Radio Republic

Soundcloud

My Pinoy Radio

Spinnr

Spotify

Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines

Page 36: Philippines mobile internet trends

Globe Telecom offers its GoSURF mobile data plan subscribers free Spotify Premium access. 70% of people who said they use Spotify are on GoSURF data plan.

Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines

Spotify usage edged on by telco tie-in

Page 37: Philippines mobile internet trends

On Device Research uses the mobile internet to gain access to consumer opinions at any time, place or country.

Want Excel tables with the survey data? Contact [email protected]

Page 38: Philippines mobile internet trends

ondeviceresearch.com

Follow us:

Find out more:

Siim Teller [email protected] @teller +44 20 7278 6627