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Page 1 Confidential & Proprietary Copyright © 2008 The Nielsen Company Trends in Mobile Devices & Mobile Media Sandeep Pannu Telecom Practice The Nielsen Company January 9, 2009

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Presentation made at Consumer Electronics Show in Las Vegas in Jan 2009

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Page 1: Presentation at Consumer Electronics Show - Jan 2009

Page 1 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

Trends in Mobile Devices & Mobile Media

Sandeep PannuTelecom PracticeThe Nielsen Company

January 9, 2009

Page 2: Presentation at Consumer Electronics Show - Jan 2009

Page 2 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

The Nielsen Company

Countries: 110

Revenues: $4.5 B

Clients: 21,000

Employees: 41,000

Page 3: Presentation at Consumer Electronics Show - Jan 2009

Page 3 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

Demand Forecasting

Market Reception(Online Buzz)

Concept & PriceTesting

Nielsen’s Telecom Practice serves Operators and Mobile Device OEMs

• We provide a competitive understanding of, both, the consumer decision process, and device lifecycle.

Advertising Spend and Effectiveness

Attitudes & Behaviors

Retail Effectiveness

Purchase Decision(Market Share)

Usage(Voice & Media)

Page 4: Presentation at Consumer Electronics Show - Jan 2009

Page 4 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

Our Global Clients include…

Page 5: Presentation at Consumer Electronics Show - Jan 2009

Page 5 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

Trends in Mobile Devices

Page 6: Presentation at Consumer Electronics Show - Jan 2009

Page 6 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

2008 events shaped largely by North America players

• Apple certainly leads the industry with its vision of an integrated data experience – and has spurred other OEMs to rapidly replicate key elements of the Apple experience

• Google’s direct entry in Mobile OS is still to be judged by consumers (even as industry players are already lining up with it, or against it)

• Carriers have invested a lot of money in Q+T devices in expectations of higher usage fees; and the strategy is paying off

• We moved closer to all-IP mobile world that is starting to open up:

- open to applications (e.g. via open marketplaces)- open to content (e.g. via DRM free music)- open to networks (e.g. open to WiFi, VOIP networks like Skype)

Page 7: Presentation at Consumer Electronics Show - Jan 2009

Page 7 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

7

Although, Apple had only 2-3% market share in the US in each of the trailing 5 quarters…

Base: Q3 2006 (n=8,503), Q4 2006 (n=9,108), Q1 2007 (n=10,554), Q2 2007 (n=9,155), Q3 2007 (n=9,927), Q4 2007 (n=9,172), Q1 2008 (n=10,000), Q2 2008 (n=8,470), Q3 2008 (n=9,357)

Trended Recent Acquisition Market ShareAcquired Device in the Past 3 Months (n=9,357)

Q435. Who manufactures the wireless telephone/handset you currently use with your service?

34%

36% 36%

32%31%

29%

26%

23%

16% 15%

18% 19%

22%

11%

14%

20%

9% 9%

1% 2% 2% 2%3%

35%

17%

15%16% 17%

15%16%

18%

11%11%12%

9%

17%

11%

2%1% 2%

6%6%

1%

5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008

Motorola

LG

Samsung

Nokia

RIM BlackBerry

Apple

Note: Apple tracking began in Q3 2007.

Page 8: Presentation at Consumer Electronics Show - Jan 2009

Page 8 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

8

Manufacturer Recent Acquisition Market Share by Price Paid for DeviceAcquired and Selected Device in the Past 6 Months (n=13,964)

…23% of devices purchased in the last months for more than $200 were Apple

23%

13% 14%

22% 18%

8%

9%

4%

6%

14%

3%

6%

3%

1%

3%

10%

3%

23%

3%2%

1%

6%

5%Total

$201+

Motorola

LG

Samsung

Nokia

RIM BlackBerry

Palm

Sony Ericsson

HTC

Sanyo

Apple

Kyocera

UTStarcom/Audiovox

Other

Base: Free/Less than $1 (n=3,566), $1–$25 (n=1,330), $26–$60 (n=3,193), $61–$100 (n=1,935), $101–$200 (n=1,715), $201+ (n=992)

B485. How much did you actually pay for your current wireless telephone/handset after any trade-ins and/or rebates were subtracted from the list/retail price?

Page 9: Presentation at Consumer Electronics Show - Jan 2009

Page 9 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

57%

19%

12%8%6%5%

79%

65%

46%

30%

17%18%

86%85%

66%65%

39%35%

Text/SMSMobileInternet

SW/Appdownloads

Location/GPSFull TrackMusic

Video/MobileTV

All Subscribers

All Smartphone Users

All iPhone Users

As you know, Apple users consume more media than anyone else…significantly more

% Using Data ServicesQ3 2008

Page 10: Presentation at Consumer Electronics Show - Jan 2009

Page 10 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

…and spend upto $15 more per month on mobile data than the average user

($0.75)

$32.96$38.42

$6.09

$8.46$10.28

$27.42

$4.14

$1.88

($3.38)

$3.93

$5.01

$54.02

$80.43

All Subscribers iPhone Subscribers

Total other charges

Data extras

Voice extras

Total taxes & fees

Monthly voice plancharge (MRC)

Service credits

Average Billed Revenue Per Subscriber Component

All Lines, Q3 2008, National

Page 11: Presentation at Consumer Electronics Show - Jan 2009

Page 11 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

2008 events shaped largely by North America players

• Apple certainly leads the industry with its vision of an integrated data experience – and has spurred other OEMs to rapidly replicate key elements of the Apple experience

• Google’s direct entry in Mobile OS is still to be judged by consumers (even as industry players are already lining up with it, or against it)

• Carriers have invested a lot of money in Q+T devices in expectations of higher usage fees; and the strategy is paying off

• We moved closer to all-IP mobile world that is starting to open up:

- open to applications (e.g. via open marketplaces)- open to content (e.g. via DRM free music)- open to networks (e.g. open to WiFi, VOIP networks like Skype)

Page 12: Presentation at Consumer Electronics Show - Jan 2009

Page 12 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

US Mobile Advertising is ~ $1 billon every quarter…

Top 4 Carrier Ad Spend ($MM)

$8.7 $11.3 $21.1 $18.3 $14.2 $18.8

$37.8 $32.4$40.8

$29.5 $24.5 $29.9$5.4 $5.3

$8.4$7.3

$8.3$10.2

$21.4 $15.1

$23.2 $45.2$45.

$50.1

$260.1$252.1

$256.1$216.6 $236.7

$255.5

$333.3$316.2 $316.9

$328.6

$364.4$326.3

September, 2007 October, 2007 November, 2007 September, 2008 October, 2008 November, 2008

Mill

ion

s

TV

Internet

Radio

Newspaper

Magazine

Source Nielsen Mobile Advertising Insights

Note Top 4 Carriers include AT&T (formerly Cingular), Sprint, T-Mobile and Verizon

Note Carrier Spend – Direct, Wireless, National (TV, Print, Radio, Internet)

Page 13: Presentation at Consumer Electronics Show - Jan 2009

Page 13 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

90%

6%

81%70%

0%

71%

9%

94%

19%30% 29%

Verizon $293M

T-Mobile$105M

Sprint Nextel$135M

AT&T $294M

Total $828M

US Carrier Ad SpendTop 4 Carriers - All Classified Ads – National, Q3 2008

..and ~71% of this spend names or promotes specific branded devices

Source Nielsen Mobile Advertising Insights

Named or Promoted Device

No Device

Page 14: Presentation at Consumer Electronics Show - Jan 2009

Page 14 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

Let’s examine some of the US top print ads in Q3 2008..

Page 15: Presentation at Consumer Electronics Show - Jan 2009

Page 15 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

AT&T Total 1. Samsung SGH-A737 (Green) $36.2M2. Samsung SGH-A737 (Orange) $34.4M3. Samsung SGH-A737 (Red) $24.4M4. Samsung SGH-A737 (Blue) $13.5M

5. BlackBerry 8310 (Curve) $11.3MOther $104.3MTotal $224.1M

Verizon Total1. Samsung SCH-U940 (Glyde) $26.6M

2. Samsung SCH-U740 (Alias) $23.9M

3. LG VX10000 (Voyager) $21.2M

4. Motorola MOTORIZR Z6c $18.1M

5. BlackBerry 8130 (Pearl) Pink $18.1M

Other $163.6M

Total $271.5M

Sprint Nextel Total1. Motorola iDEN i570 $17.1M

2. Samsung SPH-M800 (Instinct) $7.3M 3. Palm Centro (Pink) $6.3M 4. Palm Centro (Red) $5.7M 5. Palm Centro (Black) $5.3MOther $2.8MTotal $44.5M

Note 1: Highlighted + Bold = Top Model & New

Note 3: Bold only = New ModelNote 2: Highlighted only = Top Model

T-Mobile Total 1. BlackBerry 8120 (Pearl) $1.4M

2. BlackBerry 8320 (Curve) $1.2M

3. Nokia 3555 $1.1M

4. Samsung SGH-T729 (Blast) $0.9M

5. Samsung SGH-T639 $0.8M

Other $21.6M

Total $27.0M

Top Carrier Advertised ModelsTop 4 Carriers – All Ads with a Named Model – National, Q2 2008

Half of the top promoted devices by US Operators have Q or T or both

Source Nielson Mobile Advertising Insights

Page 16: Presentation at Consumer Electronics Show - Jan 2009

Page 16 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

As a result, 8 of the top 20 models sold in the US were Q or T or both

Top 20 Models purchased in Q2 2008

Motorola RAZR V3 series (V3, V3c, V3m, V3i, V3i DG, V3) 6.0%

RIM BlackBerry 8100 series (Pearl,8110, 8120, 8129) 2.7%

LG VX8350 2.6%

LG VX9100 (enV2)*** 2.5%

RIM BlackBerry 8300 series (Curve, 8310, 8320, 8330) 2.3%

Motorola MotoKRZR series (K1m, K1) 2.3%

LG VX8500 series (Chocolate, VX8500, VX8550) 1.9%

Apple iPhone 1.8%

Motorola W755*** 1.7%

Samsung SGH-A737/ SGH-A736 1.5%

Palm Centro 1.5%

Nokia 6555 1.4%

Motorola W385 1.4%

LG LX-260 (Rumor) 1.3%

Samsung SGH-i607 series (BlackJack) 1.2%

Samsung SCH-U340 series (Snap) 1.1%

Sony Ericsson W580 (W580, W580i Walkman) 1.1%

Motorola W370 1.1%

LG Voyager 1.0%

Nokia 6085 1.0%

Total 38%

Source Nielsen Mobile Device Insights

Page 17: Presentation at Consumer Electronics Show - Jan 2009

Page 17 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

17

The US penetration rate for Q/T devices has doubled over the past year

QWERTY/Touchscreen penetrationAll Subscribers, Q2 2007, Q2 2008, National

2% 3%

4%

8%

0%

1%

Q2 2007 Q2 2008

Touchscreen only

QWERTY only

Both QWERTY andTouchscreen

Source Nielsen Mobile Device Insights

6 %

12 %

Page 18: Presentation at Consumer Electronics Show - Jan 2009

Page 18 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

$37.10$46.37 $43.89 $46.00

$6.95

$5.36 $9.90 $6.78$9.98

$23.56 $23.46 $24.98

AllSubscribers

Both QWERTYand

Touchscreen

QWERTY only Touchscreenonly

Monthly ARPU Q2 2008, National

Source: Nielsen Customer Value Metrics (CVM), Q2 2008

Q/T phones give US operators an additional $20 in ARPU

Voice Charges

Other Charges

Data Charges

Page 19: Presentation at Consumer Electronics Show - Jan 2009

Page 19 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

Purchased Blue Tooth Handset in last year

22%

23%

24%

25%

27%

28%

29%

21%

22%

24%

Albuquerque, NM

Bakersfield, CA

Spokane, WA

San Diego, CA

Seattle, WA

Fresno, CA

Sacramento, CA

Los Angeles, CA

Stockton, CA

San Francisco, CA

Blue tooth penetration in top US markets is 1 in 4 users

Q3, 2008; N=56,000

Page 20: Presentation at Consumer Electronics Show - Jan 2009

Page 20 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

2008 events shaped largely by North America players

• Apple certainly leads the industry with its vision of an integrated data experience – and has spurred other OEMs to rapidly replicate key elements of the Apple experience

• Google’s direct entry in Mobile OS is still to be judged by consumers (even as industry players are already lining up with it, or against it)

• Carriers have invested a lot of money in Q+T devices in expectations of higher usage fees; and the strategy is paying off

• We moved closer to all-IP mobile world that is starting to open up:

- open to applications (e.g. open marketplaces)- open to content (e.g. DRM free music)- open to networks (e.g. open to WiFi, VOIP networks like Skype)

Page 21: Presentation at Consumer Electronics Show - Jan 2009

Page 21 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

New “marketplaces” launched and more coming. They are not fully open but significantly more open than previously

Apple App store catalogue reached 10,000 titles within 6 months of launch

Android Market launched with 50 titles and is growing fast

RIM plans to open their own application market in March 2009

Page 22: Presentation at Consumer Electronics Show - Jan 2009

Page 22 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

Quarter/Year of device purchase by Device Purchase Drivers

5%10%

3%

29%28%

22%

17%14%

19%

25%

14%

7%

10%14%

6%

7% 12%

11%20% 16%

11%

Q1 2008 Q2 2008 Q3 2008

Other

Brand/PreviousExperience

Ease of Use

Design/Style

Touchscreencapability

Mobile WiFicapability

Large, Easy-to-Read Display

Source: iphone reason purchased

Unweighted Sample Size = 463

Respondents Included = 1%, Filter Applied

Illustrative is number of folks who bought Apple because of open network access to WiFi

Page 23: Presentation at Consumer Electronics Show - Jan 2009

Page 23 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

Trends & Opportunities in Mobile Media

Sandeep PannuTelecom PracticeThe Nielsen Company

Page 24: Presentation at Consumer Electronics Show - Jan 2009

Page 24 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

$1,931, 36% $2,134, 37%

$1,374, 25%

$1,394 25% $923, 17%

$906, 16%

$936, 17%

$1,034, 18%

$241, 4%

$308, 5%

Q3 2007 Q3 2008

Video

Mulitimediamessaging

Downloads

Internet

Text messaging

US Mobile Content Revenues, US$ millionsQ3 2007–Q3 2008, National

$5,407

$7,429

As you know, mobile media revenues continues to grow..

Page 25: Presentation at Consumer Electronics Show - Jan 2009

Page 25 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

...and starting to reach big numbers in the US

• 141M mobile media consumers

• 123M using text messaging

• 60M downloading content

• 11M watching mobile video

• 44M using mobile internet

Page 26: Presentation at Consumer Electronics Show - Jan 2009

Page 26 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

26

30.0

19.8 19.6

15.613.2 13.0 12.3

9.5 8.8 8.0 7.8 7.6 7.2 6.6 6.2 5.74.4

2.5 2.2 2.2

42.0

Por

tals

E-M

ail

Wea

ther

New

s &

Cur

rent

Eve

nts

Sea

rch

Ent

erta

inm

ent

Spo

rts

City

Gui

des/

Map

s

Mus

ic

Gam

es

Soc

ial N

etw

orki

ng

Tec

hnol

ogy/

Sci

ence

Bus

ines

s/F

inan

ceN

ews

Vid

eos/

Mov

ies

Foo

d/D

inin

g

Ban

king

/Onl

ine

Tra

ding

Sho

ppin

g/A

uctio

ns

Tra

vel/V

acat

ion

Aut

omot

ive

Hea

lth/F

itnes

s

Edu

catio

n/E

mpl

oym

ent

Mobile Internet Users (in millions) by Service TypeNov 2008, National

In 2008, it is worth noting that 8M people participated in social networking…that is a sizable number!

Source: Mobile Media Measurement – Mobile Internet Report

Page 27: Presentation at Consumer Electronics Show - Jan 2009

Page 27 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

95% 93% 91%

79% 79%72% 71%

67% 66% 64% 64%

52% 51% 51% 50% 49% 46% 46%42%

33% 32%

20%

144%

So

cia

l Ne

two

rkin

g

Ne

ws

& C

urr

en

t Eve

nts

En

tert

ain

me

nt

Bu

sin

ess

/Fin

an

ceN

ew

s

Ba

nki

ng

/On

line

Tra

din

g

Sh

op

pin

g/A

uct

ion

s

Mu

sic

Ga

me

s

Fo

od

/Din

ing

Se

arc

h

We

ath

er

Ed

uca

tion

/Em

plo

yme

nt

He

alth

/Fitn

ess

Tra

vel/V

aca

tion

Te

chn

olo

gy/

Sci

en

ce

E-M

ail

Au

tom

otiv

e

Sp

ort

s

Po

rta

ls

City

Gu

ide

s/M

ap

s

Re

al E

sta

te

Ad

ult

Vid

eo

s/M

ovi

es

… making social networking the pack leader in y-o-y audience growth

Source: Mobile Internet Report

Mobile Internet Audience Growth by Service TypeNov 2007 - Nov 2008, National

Mobile Social Networking audience up from 3.3M in

Q3-07 to 8M in Q3-08

Page 28: Presentation at Consumer Electronics Show - Jan 2009

Page 28 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

As expected, Facebook and MySpace.com were the leading sites

4,480

897

820

723

457

402

347

266

1,220

1,934

407

202

560

376

291

409

5,107Facebook

MySpace.com

Flickr

Photobucket

LinkedIn

Digg

Classmates Online

MSN/Windows Live Spaces*

Friendster*Nov-08

Nov-07

Social Networking Mobile Internet AudienceMobile Internet Users Nov 2008, National

Page 29: Presentation at Consumer Electronics Show - Jan 2009

Page 29 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

iPhone was the most popular device among social networkers

5%

4%

4%

2%

2%

2%

1%

1%

1%

13%

6%

7%

4%

4%

2%

2%

1%

1%

2%

1%

13%

13%Apple iPhone

Motorola RAZR V3 series

RIM BlackBerry 8300 series Curve

RIM BlackBerry 8100 series Pearl

Motorola Q Series Moto Q

Samsung SGH-i607 series (BlackJack)

Palm Centro

LG VX8500 series Chocolate

RIM BlackBerry 8800 series

LG Voyager

Other

Online Social Networkers

All Subscribers

Top Devices Among Internet Social NetworkersData Users Q3 2008, National

Page 30: Presentation at Consumer Electronics Show - Jan 2009

Page 30 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

47%

61%

42%

66%

Subscription Mobile internet

Q3 2007

Q3 2008

How Viewers Accessed Mobile VideoQ3 2008 US Mobile Video Viewers (n=2,672)

4M of 10M mobile video users in Q3 2008 were watching

subscription video

“I paid a subscription fee to access Mobile

TV or video clips”

“I accessed and viewed Mobile TV or video clips directly from the internet on

my cell phone”*

“I downloaded and stored video clips

from a computer or from other sources

onto my cell phone”*

“I viewed video clips using an application

(for example: MyWaves, VSnax)”*

Access to Video is happening via subscription model and via Mobile Internet, with the latter growing lead

Page 31: Presentation at Consumer Electronics Show - Jan 2009

Page 31 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

Driven largely by iPhone usage behaviour

4%

3%

2%2%

4%

12%

3%

4%

2%

1%

Apple iPhone Motorola Razr V3 Series Samsung Instinct Motorola Q Series LG Voyager series

Subscription Viewing Non-Subscription Viewing

Subscription Vs. Non-Subscription ViewingQ3 2008 US Mobile Video Viewers (n=2,672)

Page 32: Presentation at Consumer Electronics Show - Jan 2009

Page 32 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

This opens up video beyond TV networks

1. NBC (29%)

2. ESPN (23%)

3. VH1 (22%)

4. The Weather Channel (22%)

5. MTV (21%)

6. FOX (17%)

7. ABC News (17%)

8. CBS (17%)

9. Comedy Central (16%)

10. ABC (16%)

1. The Weather Channel (32.4%)

2. FOX (31.7%)

3. MTV (31.5%)

4. Comedy Central (28.9%)

5. YouTube (28.8%)

6. ABC (27.5%)

7. CBS (27.1%)

8. NBC (26.6%)

9. ESPN (26.5%)

10. E! Entertainment (23.2%)

Top 10 Mobile Video Channel: Subscription Users

Q2 2008 US Mobile Video Viewers (n=719)

Top 10 Mobile Video Channels: All Users

Q3 2008 US Mobile Video Viewers (n=2,672)

Page 33: Presentation at Consumer Electronics Show - Jan 2009

Page 33 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

1. News

2. Weather

3. Sports

4. Music

5. Comedy

6. User-generated video content

7. Drama

8. Cinema-released movies

9. Content made for Mobile TV

10. Educational

1. Comedy

2. Weather

3. Music

4. Sports

5. News and Finance

6. Movie Trailers

7. Entertainment News

8. User-generated video content

9. Reality TV

10. Animated

Top 10 Content Categories for Mobile Video: Subscription Users

Q2 2008 US Mobile Video Viewers (n=1,141)

Top 10 Content Categories for Mobile Video: All Users

Q3 2008 US Mobile Video Viewers (n=2,672)

And shifts video from information-centric to entertainment

Page 34: Presentation at Consumer Electronics Show - Jan 2009

Page 34 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

As you know – mobile skews younger demographic

8% 11%

9%12%

18%

23%

38%

39%

28%14%

All Subscribers Advanced Data Users

Ages 55+

Ages 35-54

Ages 25-34

Ages 18-24

Ages 13-17

Demographics – AgeQ3 2008

Page 35: Presentation at Consumer Electronics Show - Jan 2009

Page 35 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

Mobile WebsiteTeen Audience

Size (000's)

% of website audience that

are teensI ndex

All Mobile Websites 6,588 15% 100Yahoo! Mail 2,244 15% 101MSN Hotmail 1,406 19% 130iTunes 1,401 31% 217Google Search 1,205 11% 79Gmail 947 10% 68ESPN 935 12% 84AOL Email 928 16% 107Facebook 844 17% 116YouTube 834 33% 224MTV Networks Music 755 43% 298NEOPETS 697 75% 517Weather Channel 673 8% 53MySpace.com 671 14% 98Google Maps 618 9% 62Adult Swim 605 56% 387Yahoo! Sports 605 20% 137Movies.com 538 48% 329Dictionary.com 534 41% 286Yahoo! Games 526 17% 117GameTap 520 47% 324

Teens makeup a large % of social networking users

Page 36: Presentation at Consumer Electronics Show - Jan 2009

Page 36 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

Let’s look at the Teens mobile data usage behavior. It’s insane!

788

340247

12543

3,099

593

286 233118

1,956

473 548

283

Age 0-12 Age 13-17 Age 18-24 Age 25-34 Age 35-44 Age 45-54 Age 55-64

All Subscribers

iPhone Owners

Average Number of Text Messages by Age Q3 2008, National

Page 37: Presentation at Consumer Electronics Show - Jan 2009

Page 37 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

Well, Mobile keep getting younger!

Tween Mobile Penetration by Age US Tween Mobile Users, Q2 2008 (n=709)

21% 20%

12%

45%

Age 8-10 Age 11-12

Mobile tween

Mobile borrower

Average age kids start using a

borrowed cell phone= 8.6

33%

65%

Page 38: Presentation at Consumer Electronics Show - Jan 2009

Page 38 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

46%

37%

16%

9%

5%

5%

4%

3%

3%

2-way text messages

Pre-installed games

Ringtone downloads

Game downloads

Full-track musicdownloads

Full-track musicdownloads

Wireless internet

Uploads

Video / mobile TV

Tween Data Application UsageQ2 2008

Teens drive mobile media – Tweens will be no different, only better when they grow up

78%

48%

40%

29%

25%

24%

19%

14%

2-way textmessages

Pre-installedgames

Ringtonedownloads

Wirelessinternet

Gamedownloads

Uploads

Full-track musicdownloads

Video / mobileTV

Teen Data Application UsageQ2 2008

Page 39: Presentation at Consumer Electronics Show - Jan 2009

Page 39 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

Finally, what about the impact of economy on mobile…

Page 40: Presentation at Consumer Electronics Show - Jan 2009

Page 40 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

• It is hard to be insightful when so much has been said about this by a lot of smart people

My 2 cents -

• A poor economy generally does not change the long-term outcomes or trends, merely the timing – the trends we talked about today are worth betting on, but plan your timing carefully

• A poor economy also tends to accelerate the separation between winners and losers – and we are seeing that already

Page 41: Presentation at Consumer Electronics Show - Jan 2009

Page 41 Confidential & ProprietaryCopyright © 2008 The Nielsen Company

Trends in Mobile Devices & Mobile Media

Sandeep PannuTelecom PracticeThe Nielsen Company

January 9, 2009