Trends and Analysis

Smartphones and Application Trends and Opportunities

Gabe Ingalls

Contents

Search Traffic KPIs

Traffic• Smartphone terms have received 61% more

traffic in 2010 than during the same period in 2009

Consumers• Even though smartphones are not the

majority of the phones used, this number is continually growing as the technology becomes more accessible

KPIs• While CPCs have increased over time CTRs

have decreased slightly indicating that there is increased competition in this market

1. Microsoft Advertising Intelligence Tool2. Microsoft AdCenter

Product Traffic Growth

Smartphone Year on Year Growth Trends (January – December 2010):•Generic Smartphone 144%•Android 258%•Blackberry 78%•iPhone 35%•WP7 801%

While many of the traditional mobile phone devices are stagnating in search traffic growth, the smartphone market continues from strength to strength

1. Microsoft Advertising Intelligence Tool

Smartphone Demographics and Daily Trends:

1. Microsoft Advertising Intelligence Tool

Network and O&O Trends

Network Demographics

•While the majority of the impressions occur in the age groups below 44, this proportion is shifted slightly when looking at clicks•Conversions, like impressions, peak in the 18-24 group and are more prominent with female in younger age groups and males in the older segments•59% of conversion occur between the 18-34 age brackets•Telecoms conversions include things like contract phone applications

Source: Microsoft Media Network : JUL - DEC10

Network: Day of the Week

• The majority of the impressions & clicks occur during the week with a low point on Saturdays. There is a gradual decline from Monday to Saturday

• When looking at the conversion information: Friday and Saturday are key days in the conversion cycle.

Source: Microsoft Media Network : Oct 09 : Aug10 Source: Microsoft Media Network : JUL - DEC10

Network: Time of Day

• While telco impressions are a steady build until the evening, this increases towards the end of the working day until 22.00; actions remain fairly even from late afternoon until that time

• There are 3 impression peaks during the day: start and finish of working day as well as at the end of the evening between 20 and 22 hours

Source: Microsoft Media Network : JUL - DEC10

Media ActivitiesPhone Brands and Mobile Applicaitons

Level of attention paid to various mediaRespondents’ score for the level of attention paid to each medium based on a scale of 1 to 5, by whether the respondents used the medium simultaneously or on its own

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Source: Ofcom/nVisionBase: 7,966 respondents aged 16+, UK, 2010

The Smartphone sensation

Source: nVision ResearchBase: 2,000 online respondents aged 16+, GB, 2009

Industry Climate

In the US, there is a continual struggle to be the top smartphone provider. eMarketer has released the chart to the left indicating that they believe that Android will overtake Apple for the top spot in the coming years

App users% of Smartphone owners who use the following kinds of apps at least once a month

“Which of the following kinds of apps do you use at least once a month?”“

0% 10% 20% 30% 40% 50% 60% 70%

Social networking (e.g. Facebook, Twitter, Linkedin)

Mapping apps (e.g. Google Maps)

Games

Weather apps

News apps (e.g. newspaper apps, RSS readers)

Banking and finance apps (e.g. Natwest, Barclays)

Information apps (e.g. film reviews, local leisure info)

Music apps (e.g. Spotify, last.fm)

Travel apps (e.g. taxi booking, train timetables etc)

Shopping apps (e.g. Ocado, Shopsavvy)

Productivity apps (e.g. to-do lists, diary apps)

Personal health tracking apps (e.g. calorie counters)

Recipe apps (e.g. Recipeczar, Epicurious)

Book reader appsLocation-based social networks (e.g. Foursquare,

Gowalla)Augmented reality apps (e.g. Layar, RealityBrowser)

Nearly 40% of smartphone owners have paid for an app.

Source: nVision ResearchBase: 1,561 online respondents aged 16+ whose mobile phone allows them to download apps, GB, 2010

The mobile web

Source: nVision ResearchBase: 1,200 respondents aged 16+, GB, 2009

Mobile phone usage: data services% of total time spent on mobile phones that is not spent making voice calls, by age

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20%

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Total 16-24 25-44 45-54 55+

Other internetphone use

InstantMessaging

Downloadedaudio / music

Email

Socialnetworking

Text / videomessaging

Source: Ofcom/nVisionBase: 7,966 respondents aged 16+, UK, 2010

Telecommunication Opportunities

SmartPhone and Data Offerings

With increasing availability of new, cheaper technology there will be increased proliferation of the smartphone market

Gender/Age Specific Advertising

Demographics are strong differentiators in telecommunication consumer choices and these should be considered in marketing choices

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