©2011 eMarketer Inc.

Presented by:

Jennifer MooreManager, Strategic Accounts

jmoore@emarketer.com

M A Y 4, 2 0 1 1

Portability:

Phones, Tablets and More—Opportunities for Marketers

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Mobile devices and platforms have experienced dramatic evolution

2007 20101987

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Examples of Portability:

Chase Bank: ATM from your iPad

Betty Crocker: Recipe app showcase step-by-step cooking process

CBS Sports: March Madness App, check your stats from anywhere

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Growth Trends: Smartphones

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The number of US smartphone users will rise by nearly 50% from 2011 to 2015

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Asia-Pacific and Western Europe lead the world in total smartphone users

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US smartphone ownership is growing more quickly among recent phone buyers

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Smartphone buyers want a device that is part of larger mobile media ecosystem

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Growth Trends: Tablets

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Apple’s iPad and onslaught of Android tablets will push global sales up five-fold by 2012

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The iPad owns the tablet market…for now

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Tablet awareness and purchase intent are healthy, particularly among younger consumers

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Death of the ereader appears to be premature

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Rising Competition in Devices and Operating Systems

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Apple’s iOS will remain the dominant US smartphone platform in 2011, but Android will pull ahead in 2012

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Android increasingly popular among recent smartphone purchasers

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Android is the most popular smartphone platform among younger adults

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Can the Nokia-Microsoft strategic alliance disrupt the mobile ecosystem?

Nokia to forego Symbian and MeeGo in favor of Windows Phone 7 OS on smartphones

Nokia to adopt Microsoft advertising on mobile devices

Google reaction:

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Tablets constitute an additional front in the same OS platform battle

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Evolving Usage Patterns

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Smartphone owners represent 80% of all US mobile internet users

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Disparity between smartphone and feature phone users is growing

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Mobile social networking is more prevalent among US smartphone users

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Source: comScore, “2010 Mobile Year in Review,” Feb 2011

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Smartphone users in emerging markets over-index for many key retail activities

Source: Accenture, “Retail Applications of Mobile,” Dec 2010

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Tablets have quickly become daily fixtures for many activities

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Opportunity for tablets in the enterprise is growing

Source: ChangeWave Research, Dec 2011

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Ideas on Portability:

Explore your destination!

Apps offer a more virtual experience for brand and consumer engagement.

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Tablet use is a more rich experience rather than phone use.

Tablet use equals leisure where phone use is more urgent.

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Marketing and Advertising Implications

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Global executives see multiple platform usage as a key trend affecting their business

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Marketers see advertising opportunities on a range of smart devices

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From a user experience perspective, both bring something to the table. Apps are effective at providing mobile users with an encapsulated experience that filters out the variables of browsing the web. Browsers, on the other hand, are universal, and give marketers more latitude to experiment with different ad formats.

As the mobile browser experience more closely resembles that of the desktop, browsing the web from a mobile device may become more “app-like” in user experience. Co-existence will lead to convergence between the two.

Most research indicates that smartphone owners are equally active in using the web and apps. An October 2010 survey by Frank N. Magid Associates, for example, found web browsing and app usage to be neck-and-neck (80% and 77%, respectively). 

Contest of apps vs. browsers will not result in an either/or outcome

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Growth in free apps outpaced that of paid apps across every OS platform in 2010

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Paid app prices are decreasing…

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…while in-app purchases are emerging as a more important revenue stream for developers and brands

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To get noticed, brands should market their apps across multiple channels

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Smartphone users are more likely to recall seeing ads…

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…but variations in other brand metrics between smartphone and feature phone users are minimal

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Tablet owners are more receptive to a range of advertising formats

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Mobile platform competition remains fierce. The US mobile market looks like a two-horse race between Apple and Android, as BlackBerry’s lead slips away.

Android is the growth story everywhere. Android is the fastest-growing mobile platform, and its growth is coming largely at the expense of incumbents such as RIM/BlackBerry in the US and Nokia/Symbian elsewhere.

Tablets will extend OS competition into a new market segment. Not quite computers, not quite mobile devices, tablets could disrupt both segments. As new tablet introductions accelerate over the next 12 months, they will redouble competition between the primary OS platforms.

One size does not fit all. Smartphones and tablets serve different purposes. Focusing on the distinctions between platforms and form factors will lead to payoffs in user experience.

GET OUT THERE!

Key takeaways