State of Mobile EU5 Webinar June2010

EU5 Mobile Media Landscape and Trends

The State of Mobile

Alistair Hill, Sr. Analyst

June 10, 2010

2© comScore, Inc. Proprietary and Confidential.

Agenda

comScore Mobile Data

Mobile Media Trends

Shifting Mobile Media Landscape

Smartphones

Summing Up


Ad Metrix Mobile

Plan Metrix MobileMobile Ad Tracking

and Planning Tools

Mobile MetrixSmartphone Meter Panel

Network CensusCarrier Log Analysis

GSMA MMM

MobiLensMarket Tracking via

Intelligent Online Survey

Site + App CensusMobile Web, App

AdNet Tagging


Complexity and fragmentation of mobile market requires an array of data sources

and methodologies for a 360° view


MobiLens’ comprehensive suite of measures

Demographics

Age, Gender, Income, Education,

Employment, Household Composition, more

Subscription and Operator Information

Current and Previous Operator, Length of

Ownership, Length of Subscription, Monthly

Plan, Bill Size, Data Plan Status,

Satisfaction, more

Messaging

Chat, Personal Email, Work Email, Instant

Messaging, Photo Messaging, more

Games

Played Games, Type of Games Played,

Number Downloaded, Number Purchased,

Subgenres, Method of Discovery, Method of

Purchase, more

Personalization

Changed or Made Own Ringtones/Graphics,

Purchased Ringtones/Graphics, Quantity,

Ringback Subscriptions, more

Music & Video

Sideloaded Music, Downloaded Music from

Operator, Source of Downloaded Music,

Watched Broadcast TV, Watched On-

Demand Video

Social Media + UCG

Accessed Social Network, Sent Photos to

Phone, Sent Photos to Website, Captured

Video, Sent Video to Phone, more

Content Access Methods

Category, Sub-category and Brand Access

via Mobile Browser, Downloaded

Application, or SMS

MobiLens Database


Mobile Media Trends


0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2007 2008 2009 2010 2011 2012 2013 2014 2015

Desktop

Mobile

Mobile On Track to Eclipse the Desktop

Source: Morgan Stanley Research

Number of Global Users (Millions)


34% of Mobile Phone Owners Browse the Mobile Internet, Use

Applications or Download Content (Mobile Media Users)

The number of people who are just using voice has declined 15% year on year

Product: MobiLens

Data: Three month average ending March 2010

Country: EU5- N= 69,031

Mobile Media = Connected Media (except SMS only) in MobiLens

28%34%

55%53%

17% 14%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q1 2009 Q1 2010

% M

ark

et

Mobile Segments Q1 09 vs Q1 10

Mobile Media SMS (and not Mobile Media) Just Voice


Growth of the Key Market Enablers Continues

Two of the market enablers (smartphones and 3G devices) are now firmly entrenched in the market.

The most important enabler, unlimited data plans, still has limited penetration in EU5 (6%) however did

grow 71.8% year on year.

In comparison 24% of US mobile users subscribe to unlimited data plans.

Product: MobiLens



4%6%

34%

44%

18%

24%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10

% M

ark

et

Growth of Market Enablers

Unlimited Data Plan Subscribers 3G Device Owners Smartphone Owners


Browser

Used App

Mobile Media

Purchased Game

Purchased Ringtone

Made Own Ringtone

Unlimited Data Plan

Listened to Music

Played GamesRingback

Social Networking

Email

30

35

40

45

50

55

28.0 29.0 30.0 31.0 32.0 33.0 34.0 35.0

% F

em

ale

Median Age

Demographics of Mobile Media Activities

The Average Mobile Media User is 33 and 41% are Female

Younger demographics create their own ringtones, use social networking services and listen to music

(web 2.0 type services).

Mobile Internet services (browsing, apps and e-mail) skew 60-65% male.

Product: MobiLens



Higher on chart = more female

Further to right = older

Size of bubbles = # of users


Nokia Leads OEM Market for Device Owners and Mobile Media Users

By Some Distance

Although the iPhone gains a large amount of hype, it still only represents 4% of total mobile owners in

EU5 and 12% of all mobile media users. The number of iPhone owners grew 172% YoY.

* Total device owners market share in bold, mobile media market share numbers in red.

Product: MobiLens



37%

20%

13%

8%

6%4%

2% 2% 2%

32%

18%

12%

8%

3%

12%

4%

0% 0% 0%

5%

10%

15%

20%

25%

30%

35%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Nokia Samsung Sony Ericsson

LG Motorola Apple RIM Sagem Siemens

% M

ob

ile M

ed

ia U

sers

% M

ark

et

OEM Market Share for Total Market and Mobile Media Users

Total Market Mobile Media


Shifting Mobile Media Landscape


The Mobile Content Industry Flat / Declining Industry

Personalization sector showing

Mobile games audience is flat, but there’s much more to the story (we’ll get to that shortly).

Product: MobiLens



0%

1%

2%

3%

4%

5%

6%


% M

ark

et

Mobile Content Trends

Ringtone Purchasers Graphics Phurchasers Games Purchasers


A Quarter of EU5 Mobile Owners Browse the Mobile Internet

There are over 17 million extra mobile Internet users in March 2010 compared to March 2009, 43%

growth.

Social networking users are showing the highest gains with 98% YoY growth.

12% are using IM and users are growing 37% YoY.

Product: MobiLens



25%

12%

5%

10%

15%

20%

25%

30%


% M

ark

et

Mobile Internet Trends

Apps (except native games) Mobile Browsing IM Email Social Networking


Communicating & Sharing Drives Mobile Web

40% search, in comparison , 80-100% of PC Internet browsers use search, depending on the country.

The bars in yellow highlight the genres that relate to communicating and sharing with others, the dark

red bars indicate news and weather genres.

The mobile internet is as much about connecting with friends and family as it is about news and info.

Product: MobiLens



39.2%

35.2%

34.5%

30.7%

29.4%

27.2%

24.3%

22.6%

20.9%

19.0%

18.8%

18.3%

17.5%

16.5%

15.9%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0%

Search

Social Networking

Personal Email via Browser

News

Weather

Sports Information

IM via Browser

Entertainment News

Work Email via Browser

Maps

Tech News

Photo or Video Sharing Service

General Reference

Stock Quotes or Financial News

Movie Information

% Browsers

Top Genres for Mobile Browsing


Google the Most Popular Mobile Internet Site in the UK

comScore’s GSMA Mobile Media Metrics (MMM) service shows Google gaining the most mobile internet

users.

Vodafone is the leading operator portal.

Product: MMM

Data: February 2010

Country: UK

Total Unique Visitors % Reach Average Minutes per Visitor Average Pages per Visitor

Google Sites 5,793,816 32.7 27.9 106

FACEBOOK.COM 5,674,595 32.0 303.5 420

Vodafone Group 3,547,718 20.0 21.1 32

Telefonica Mobile Networks 3,271,221 18.4 12.7 17

Orange Sites 2,376,524 13.4 22.6 41

BBC Sites 2,146,536 12.1 23.3 40

Yahoo! Sites 2,141,238 12.1 21.1 35

Microsoft Sites 1,702,176 9.6 90.5 66

Deutsche Telekom 1,125,953 6.3 20.1 58

Nokia 1,062,416 6.0 14.2 26


Facebook Usage is Surprisingly Higher on Mobile Compared to PC

mobile users

spend 45 minutes

on facebook per

usage day;

average 43 visits

per month

PC users spend 32 minutes per

usage day; average 35 visits per

month

Product: GSMA MMM & comScore Media Metrix

Data: Feb 10.

Country: UK


Sports Usage Peaks Between 3-6pm at the Weekend

Sports usage is heavily influence by live events, especially football. The average Weekend day in

February saw a peak in users and minutes at the time when most Premiership matches are taking place.

Product: GSMA MMM

Data: Feb 10.

Country: UK

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

0

200

400

600

800

1000

1200

1400

6-9 am 9-12noon 12-3 pm 3-6 pm 6-9 pm 9-12 pm

To

tal M

ins

Un

iqu

e V

isit

ors

Weekend Mobile Internet Sports Usage by Day Part

Uniques Mins


Sports Usage in the UK Mirrors the Football Season

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

Un

iqu

e U

se

rs

Sports Usage - UK

Chelsea win

2006

Premier

League title

England

Reach the

world cup

quarter final

Premier

league

season

starts Manchester

United 2007

win Premier

League title

Manchester

United 2008 win

Premier League

title in exciting

finish to season

No summer football

tournament. Sports

users in June down

15% on average

month in 2007

Manchester

United 2009

win Premier

League title

Mobile Sport

Booms as

England

Reach the

???No summer

football

tournament

No summer football

tournament. Sports

users in June down

25% on average

month in 2007

England fail to

qualify for the

Euro 2008


Functionality of Content Determines the Access Method

The type of content determines the popularity of an access method.

For example news and information genres, such as news, are more popular via the browser, whereas

genres that are more involved or more functional, e.g. Games and maps are better suited to applications.

Product: MobiLens

Data: Three month average ending April 2010

Country: UK - N= 15,567

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

News Social Networking Maps Games

Un

iqu

e U

se

rs

Browser vs App by Content Genre

via App via Browser


Mobile Games Purchasers Flat

With so much hype around mobile applications it is a shock that mobile games purchasers are flat.

Product: MobiLens



2% 2%

0%

1%

1%

2%

2%

3%

3%


% M

ark

et

Mobile Content Trends

Games Purchasers


Free Business Model Gaining Traction at Expense of Paid

The number of people downloading has risen 40% year on year, however the number of people

purchasing games as risen just 11%.

The vast majority of the growth in games downloads is coming from free games downloads which are

growing 68%.

Product: MobiLens



0%

1%

1%

2%

2%

3%

3%

4%

4%

5%

5%


% M

ark

et

Mobile Games Trends

Downloaded a Game Purchased a Game Downloaded a Game for Free


Steady Growth Continues for Mobile Banner Advertising

Product: Ad Metrix Mobile

Data: March 2010

Country: UK

8,000,000

9,000,000

10,000,000

11,000,000

12,000,000

13,000,000

14,000,000

200

250

300

350

400

450

500

550

600

650

700

Un

iqu

e N

ew

s a

nd

In

fo B

row

sers

Pro

du

cts

Mobile Browsers vs Products Advertised

Products Advertised Mobile News + Info Browsers Linear (Products Advertised)


Steady Growth Continues for Mobile Banner Advertising

The number of products advertised is not growing as fast as the number of mobile browsers

Product: Ad Metrix Mobile + MobiLens

Data: March 2010

Country: UK

8,000,000

9,000,000

10,000,000

11,000,000

12,000,000

13,000,000

14,000,000

200

250

300

350

400

450

500

550

600

650

700

Un

iqu

e N

ew

s a

nd

In

fo B

row

sers

Pro

du

cts

Mobile Browsers vs Products Advertised

Products Advertised Mobile News + Info Browsers Linear (Products Advertised)


Ad Spend is Not Following the Consumers Digital Behaviour

The average PC Internet browser generated over £90 per year of advertising revenue for the industry.

The average mobile Internet user generated £2.90 per year

In 2009 the average number of mobile browsers was 33% of the number of PC Internet browsers.

In December 2009 total mobile Internet minutes were between 6%-10% of total PC Internet minutes.

2009 Mobile ad spend is 1% of PC Internet spend.

Source: comScore + IAB UK

Data: 2009

Country: UK

38,597,072

12,832,917

90.7

2.9 0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

Internet Users Mobile Internet Users

Ad

Re

ve

nu

e P

er

Bro

ws

er

Ave

rag

e U

niq

ue

Us

ers

PC Internet vs Mobile Ad Spend 2009

Unique Browsers Advertising Revenue Per Browser


Smartphones


1 in 4 Mobile Phone Owners in EU5 Now Have a Smartphone

Driving this increase are phones that provide a strong foundation for media consumption

The graph shows the dominance of the Symbian operating system, Apple and RIM’s increasing influence

and the recent emergence of Google Android.

Product: MobiLens



0%

5%

10%

15%

20%

25%

30%


% M

ark

et

Growth of Smartphones as a % of Total Market

Symbian Apple Microsoft RIM Google Palm


Although the Total Number of Symbian Owners are Growing they are

Losing Share

Apple and RIM gaining share.

Android starting to emerge.

Product: MobiLens



69%59%

8%

17%

16%14%

6%8%

3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q1 2009 Q1 2010

% S

ma

rtp

ho

ne

Ow

ne

rs

Smartphone Marketshare Q1 09 vs Q1 10

Symbian Apple Microsoft RIM Google Palm


The Tail of Two Touch Screen Smartphones

There are more people with a Nokia 5800 than there are with an iPhone 3G S

Product: MobiLens



0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Un

iqu

e U

se

rs

iPhone 3G S vs Nokia 5800

Nokia 5800 iPhone 3G S


Smartphone Owners are Over 328% More Likely to Use Mobile Media

than Non-Smartphone Users

The Apple iPhone has revolutionized the market for mobile media, however Google’s Android and RIM’s

Blackberry devices are providing competition in terms of usage behaviour.

Symbian device owners are less likely to use mobile media but are by far the most popular smartphone

OS.

Product: MobiLens



93%89%

80%

68%

50%

63%

15%9,419

1,404

4,422

7,597

33,026

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Apple Android RIM Microsoft Symbian Smartphone Non-Smartphone

De

vic

e O

wn

ers

(0

00

s)

% P

en

etr

ati

on

Mobile Media Consumption by Operating System

Mobile Media (Connected Media) Used Application (except native games) Used Browser Device Owners


Summing Up


Summing Up: The Big Picture

Mobile Media Market has fully arrived

– 1/3 of phone owners using mobile media

– Critical mass for publishers with room for sustained growth

Technology enablers continue to grow

– Even faster networks / devices arriving

Growth of key consumer enabler—unlimited data plans—still limited in EU

– US market becoming more advanced due to increased data plan adoption

“Classic” mobile content business—personalization—in decline / flat

Still work to be done to accelerate the large mobile advertising opportunity

The iPhone is not the only smartphone on the market.

– Symbian shows high penetration

– Android users show similar usage penetration

Thank You.

For more information, please contact

comScore Mobile [email protected]

THE GLOBAL SOURCE OF DIGITAL MARKET INTELLIGENCE™

State of Mobile EU5 Webinar June2010

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