understanding the smartphone user in asia: identifying trends and opportunities. casual connect sg...

Understanding the Smartphone User in Asia: Identifying Trends and Opportunities

Adrian TanTelecom Industry Group Leader, SingaporeThe Nielsen Company

2

Copyright © 2012 The Nielsen Company. Confidential and proprietary.

Casual Connect Asia 2012

About Me

Created on www.wordle.net

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Nielsen: Leading global provider of Consumer Information and Insights

• Operates in ~100 countries, 35+ in APMEA region

• Unparalleled insights into what consumers watch, and what they buy

• Core industry focus in Telecoms/Tech, Retail, Media, Consumer Packaged Good

• Focused on Innovative solutions to drive client success

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Today’s Sharing & Objectives

•Smartphone Insights

•On-device Meter

Nielsen Global Smartphone Insights 2011/2012

6



Choice Drivers and Competitive

Analysis

Satisfaction and Loyalty

Smartphone Retailing

Category Growth and

Brand Performance

Mobile Data and

Applications Usage

Mobile Media and

Advertising

•Large scale survey

•Multi-country (>25)

•Focus on Smartphone Users

Nielsen Smartphone Insights

7



Smartphones have “Officially” Arrived

• In Q4 2010, smartphones surpass PC worldwide shipments …

8



Smartphones outnumber non Smartphones in many APAC markets

Base: All Mobile Phone Users (SG=566 MY=1,100 TH=2,000 ID=1,965 CN=1,210 IN=5,050 UK=718 EG=1,030)

Indonesia 14%

India 20%

Thailand 28%

Malaysia 73%

Singapore 73%

Egypt 37%

United Kingdom 45%

Smartphone Penetration (among Mobile users)

Source: Nielsen Smartphone Insights

9



And the Smartphone growth revolution continues

22% 18%25% 20% 18%

29%

59%

36%

31%28%

21% 25% 30%20%

22%

27%

47%54% 54% 55% 52% 51%

19%

36%

SG MY TH ID CN IN UK EG

Definitely/Probably willpurchaseNot sure

Definitely/Probably willNOT purchase

Source: Nielsen Global Online OmnibusBase: All respondents (SG=501 MY=500 TH=501 ID=500 CN=508 IN=511 UK=501 EG=503)

10



Multiple answers per respondentBase: All Smartphone Users (SG=848 MY=800 TH=1,011 ID=1,292 CN=1639 IN= UK=1,002 EG= 1,062)

Online Games(Connected)

Offline games (Pre-installed or

Downloaded)

IDTH CN INMYSG UK EG

Games rank high in usage, along with Social & Internet

70% 76%47%

22%

75%

15%

72%

17%

Social Networking

Web Surfing

65% 73%55%

40%62%

26%

66%

18%

67% 76%45% 43%

77%

21%

56%

18%

20% 31%8% 3%

41%

11% 11% 5%

Features used (past 30 days reach)


11



Base: All Smartphone Users who conducted Gaming Sessions on mobile phone in P30D (SG=319 TH=246 ID=258)

15.4

8.3

7.5

Mean hrs per week

Singapore has a high gaming reach. Indonesian gamers spends more than 15 hrs/wk on mobile games.

ID43%

SG72%

TH47%

Reach (% using Online/Preloaded Games in past 30 days)


8.6

18.3

11.9

Sessions per week

12



15.5 16

7.3

12.9

10.4

18.3

20.1

13.8

11.8

13.8

10.7

20.7

11.9

8.69.3

6.9

18.3

0

5

10

15

20

25

Mobile internet visits Social networking sessions Gaming sessions

Base: All Smartphone Users who have accessed Mobile Internet in past 30 days (SG=725 MY=462 TH=688 ID=875 CN=1,300 IN=435)

Base: All Smartphone Users who conducted Gaming Sessions on mobile phone in P30D (SG=319 MY=170 TH=246 ID=258 CN=393 IN=347)

NA

IDTH CN INMYSG

On average, 1-2 gaming sessions per day. Highest gaming usage among the Thais.

Average No. of Sessions in a week

Base: All Smartphone Users who conducted Social Networking Sessions on mobile phone in P30D (SG=266 MY=212 TH=378 ID=661 CN=466 IN=304)


13



Base: All Smartphone Users who conducted Gaming Sessions on mobile phone in P30D (SG=319 MY=170 TH=246 ID=258 CN=393 IN=347)

Each country displays different preferences in top game genres.

Genres of Games Played on Mobile (past 30 days)

Country 1st 2nd 3rd

Singapore Puzzle/Strategy Classic/Arcade Card/Casino51% 47% 25%

Malaysia Puzzle/Strategy Platform / Action games Sports/Racing33% 25% 20%

Thailand Memory Boosters Sports/Racing Classic/Arcade66% 31% 30%

Indonesia Sports/Racing Puzzle/Strategy Other Types of Game41% 29% 22%

China Puzzle/Strategy Card/Casino Board Games47% 35% 29%

India Sports/Racing Puzzle/Strategy Board Games41% 40% 34%


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ID

TH

Base: All Smartphone Users who conducted Gaming Sessions on mobile phone in P30D (SG=319 TH=246 ID=258)

At home At school/office

While in a lobby waiting for friends or colleagues

93% 21% 12%

At home At school/office

While commuting on the bus

82% 47% 18%

At home While commuting on the train/tube

At a bus stop/ train station

62% 42% 41%

SG

A lot of gaming takes place at home.Location of Mobile Gaming Activity (past 30 days)


15



Base: Total no. of downloads in P30D (SG=12,422 MY=21,212 TH=3,756 ID=13,766 CN=29,092 IN=5913)

Except for Indonesia, Games is the top app category.

Indonesia43%

Thailand47%

Singapore72% 20%

Games Entertainment

7%

Food & Drink

4%

China89%

Malaysia85%

Games

10%

SocialNetworking

8%

Music

8%

India26%

Music

19%

37%

Games Entertainment

11%

Music

29%

SocialNetworking

26% 17%

Games

Music

11% 13%

Games Entertainment

8%

Music

11% 11%

Games Entertainment

9%

Top App Categories Downloaded on Mobile% who downloaded an

app on smartphone(Past 30 days)

Among, app downloaders, which categories they downloaded (Past 30 days)


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Indonesia

Thailand

China

India

Malaysia

Singapore

Base: Those who have downloaded any application to mobile phone in P30D (SG=480 MY=554 TH=205 ID=214 CN=1103 IN=315) Base: Those who have paid for downloading an application (SG=56 MY=170 TH=18* ID=88 CN=173 IN=289 UK=69)

22.2

9.4

1.6

1.3

3.9

3.5

24.7

0 5 10 15 20 25 30

USD$

Mean Amount Spent on Mobile Games Downloaded in P30D

Across countries, number of apps downloaded is fairly consistent, but payment for games is not.

7.7

6.5

3.0

7.4

6.0

5.5

Avg Gaming Apps Downloaded in

Past 30 days

Data not availableUK

7.3

17.4

11.6

2.9

8.5

15.6

% Downloaded Gaming Apps in

Past 30 days

Data not available

Not paying much


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Indonesia22%

Thailand47%

Singapore70% 70%

Social Networking

News

57%

Search

55%

China75%

Malaysia76%

Social Networking

91%

Search

66%

Email

51%

India15%

Base: All Smartphone Users who accessed Mobile Internet in P30D (SG=725 MY=724 TH=688 ID=875 CN=1538 IN=622)

Much of Internet usage revolves around Social and Search. Top Website Categories Visited on Mobile

Social Networking

92%

Music

59%

Search

58%

Social

Networking90%

Music

56%

Search

40%

66%

Social Networking

Search

73%

General Portal53%

Search

58%

Retail/Shopping

78%

GeneralPortal76%

% who visited a website on smartphone(Past 30 days)

Among, website visitors, which categories they visited (Past 30 days)


Nielsen On-device Metering (ODM)

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Nielsen Informate Mobile Insights provides metered Smartphone usage

Insights from usage behaviour captured by innovative on-device meters

Does not rely on survey data

Pan-India panel of smartphones users (~5200, January 2012)

On-Device Meter Always On Accurate

OS covered:

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Currently the largest multi-platform ODM panel in India

Source: Nielsen Informate Mobile Insights, India panel

*iOS data will be available from 2nd half of 2012

21



India: Breakdown of time spent on activities

Communication Entertainment Browsing Phone Mgmt Application

43 mins27%

40 mins25%

43 mins27%

8 mins5%

24 mins15%

TOTAL ACTIVE TIME (Phone in use, both online &

offline) Minutes per day


157

Call 16mins10%

Chat 10mins6%

Connect-ivity

1mins1%

Email 2mins1%

Messag-ing

14mins9%

Games 7mins5%

Multi-media

33mins21%

Phone Navigation

6mins4%

Security 1mins1%

Office Packages

1mins1%

Phone Features

2mins1%

Utility 21mins13%

22



4643 42 43 44 44 44 45 43

18 20 20 21 21 23 24 26 27

32 32 3229 28 28 28 30 30

57 59 59 59 59 58 57 5457

Jul '11 Aug '11 Sep '11 Oct '11 Nov '11 Dec '11 Jan '12 Feb '12 March '12

Online - Browsing Online - Apps Calls & Messaging Offline

Applications usage is on the rise


Smartphone Usage by Category UsageTime spent per day (min); Jul 2011 – March 2012

23



Daily usage is highest among Android users, followed by BlackBerry users

2746 45

15 6

4345

1845

18

30

38

36 27

8

5723 59

27

65

Overall Android BlackBerry Symbian Windows Mobile

Online Browsing Online Apps Calls & Messaging Offline

Minutes

Total Time(mins) 157 193 122 145 59


Smartphone Usage by OSTime spent per day (min); March 2012

24



43 44 2954 52 43 39 36 32

27 25 4633 29

28 26 23 22

30 3039 31 36

32 27 28 27

57 4372 72

5651

44 47

59

Overall Male Female 15-17 18-24 25-30 31-35 36-40 41-90

Online Browsing Online Apps Calls & Messaging Offline

Minutes

Daily usage declines with age. Males spend more time browsing, and females on online apps.

Total Time 157 157 157 190 188 159 142 131 128


Smartphone Usage by Age/GenderTime spent per day (min); March 2012

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Time spent on gaming Android users, who spend most time on their phone, and have the highest gaming duration.

5%

8%

3%

5%

4%

7 157

14 193

4 145

6 122

2 59

Share of Time spent on games [%]

Time spent on Games

[ Mins per day ] Overall Time spent

[ Mins per day ]


Overall

Games UsageMarch 2012

26



Time spend on gaming has been showing an increasing trend since December.

% of time on Gaming

4.7%4.3%3.8%3.5%

4.0%4.1%

Oct 2011 Nov 2011 Dec 2011 Jan 2012 Feb 2012 Mar 2012

% of time on GameTotal Active Time

(min/day) 153 152 153 152 155 157

%


Gaming Usage (% time on Gaming)Jul 2011 – March 2012

27



Game usage by day partTime spent gaming keeps increasing as the day progresses


Proportion by Day Part

24%21%

17%17%

12%9%

0%

5%

10%

15%

20%

25%

30%

2000 - 07001900 - 20001600 - 19001300 - 1600 1000 - 13000700 - 1000

Gaming Usage by Dayparts (% time on gaming)March 2012

28



Overall, Angry Birds is the top on device game in India.

Overall Reach % Reach = accessed in Past 30 days

Jan ’12 Feb ’12 Mar ‘12

Angry Birds 9.5 9.5 11.0Raging Thunder 4.7 4.9 4.7

Chess 3.7 3.8 4.1Skater Boy - - 3.8

Brick Breaker 2.7 3.4 3.7Need for Speed Shift 2.7 3.1 3.7

Racing Moto 3.4 3.5 3.5Solitaire 2.7 2.2 3.0

Angry Birds Space - - 2.9Cricket T20 Fever 2.6 2.6 2.9


29



Top Mobile Games across Operating systems


Gaming Usage by OS + Top 5 Games ReachFeb 2012

30



100 90 83 79

505232

4534

223221 15

13 9

Angry Birds Adventure ofTed

Chess Asphalt RagingThunder

Usage % in Sept'11

Usage in Oct'11

Usage in Nov'11

Some games have more staying power than others


82 84 47 53 54No. of users who

installed the app in Sept’ 11

Usage % in Sept'11 Usage % in Oct'11 Usage % in Nov'11

Staying Power (Sept 11 to Nov 11) - % of games installed in Sept that were still played in Sep, Oct, Nov

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TOP GAMES INSTALLED

% OF INSTALLSMar’12

Skater Boy 19

Angry Birds Space 12

Angry Birds 8

Mission Impossible FREE 7

Ninja Chicken 7

Play Contra 6

Need for Speed 5

DLF IPL T20 Fever 5

Tilt Racing 4

Agneepath 4

BASE: ANDROID USERS WHO INSTALLED ANY GAME - 1372

TOP GAMES INSTALLED


Angry Birds 10

Need for Speed Shift 8

Aladdin 8

Ball Balance Time 5

Assassins Creed 2 4

Racing rustle 4

Cricket 2011 4

Raging Thunder 3

Block Breaker Deluxe 3

Zulux 3

TOP GAMES INSTALLED


Rotate and Roll Free 11

Moorhuhn Jump and Run 9

Chopper 7

Caro 7

Forces of War 7

Revolver 7

Brain Cube Reloaded 7

Bomberman vs Zombies 7

Crazy Diving 7

Chess 6

BASE: SYMBIAN USERS WHO INSTALLED ANY GAME - 1162

BASE: BLACKBERRY USERS WHO INSTALLED ANY GAME - 107

Top New Installs – March 2012


32



Time spent and reach of Mobile Gaming:Arcade games have the highest reach and playing sessions compared to other game genres.


Gaming Usage (among users of Top 10 Genres) Feb 2012

What about Mobile Advertising?

34



Is mobile advertising still relevant today?

Mobile ads most prevalent in China, Korea, Hong Kong and Singapore, and least so in Indonesia, Australia, Thailand.

77% 74%66% 66% 64%

59%

47%40%

36%

20%

China

Malays

iaKore

a

Singap

ore HKTaiw

anJa

pan

Austra

lia

Indon

esia

Thaila

nd

Incidence of coming across a mobile ad in last 30 days amongst mobile users

Proportion of mobile ad viewers who are exposed to ads at least daily

74% 74%

65% 64% 62%54%

49% 47%42% 43%

Japa

nKore

a HK

China

Singap

oreAus

tralia

Thaila

ndTaiw

anMala

ysia

Indon

esia


35



Types of Mobile Ads Received on Smartphone

38%

47%

30%

33%

35%

45%

25%

40%

32%

25%

18%

36%

30%

18%

9%

21%

28%

27%

15%

52%

27%

14%

8%

23%

19%

17%

7%

19%

China

Korea

Australia

Malaysia

Applications (Apps)

Mobile Internet

Online games

WatchingVideo/Mobile TV

Text messages/SMS

Streaming onlinemusic/Radio

Location-based services/ GPS

In more developed markets, the highest mobile ads exposure is through apps and the mobile Internet


36



29%

46% 49%

78%

57%64%

32%

81%

62%53%

24%

38%50%

69%57% 56%

42%

90%

53% 57%

China HK

Taiwan

Japa

nKore

a

Austra

lia

Malays

ia

Indoe

nsia

Thaila

nd

Singap

ore

Smartphone Users Non-Smartphone Users

Incidence of mobile ads rejection (“Never click on mobile ads”) amongst those exposed

Base - see notes 8 and 9

Resistance to mobile ads remains high

Need to understand factors that will improve acceptance level.e.g. Design and Contextual Ads can play a difference.


37



Free content and Location-based integration can help improve acceptance to mobile ads

9%

7%

6%

18%

13%

10%

17%

15%

13%

38%

24%

33%

29%

27%

26%

49%

33%

25%

28%

21%

14%

43%

33%

38%

I am more likely to click on ads that aresimple text ads

I am more likely to click on ads thatincorporate multimedia elements

I am OK with providing personalinformation in order to receive customadvertisement which match my interest

I am OK with advertising if it means that Ican access content for free

I am okay with ads which containgeographically relevant information based

on where I am at a given time

I am more likey to click on an ad that doesnot take me outside of the application to

another website

Singapore (n=848)

Indonesia (n=1,292)

Australia (n=1063)

Japan (n= 1,089)

Attitudes Towards Mobile Advertising (“Strongly / Mostly Agree”)


38



Smartphone EvolutionNew Features: Augmented Reality, Sensors, NFC, GPS

Thoughts and Implications for Casual Games Strategy in Asia

Thoughts and Implications

1. Smartphones: Still showing healthy growth

2. Gaming behavior varies across countries, demographics, OS – use this to your advantage

3. Consumers are gaming, not all are paying -New ways to monetize through advertising

4. Convergence of tech and social with games

Game On!

22nd May 2012

Adrian TanEmail: [email protected]: AdrianTanKL

Let’s continue the conversation!

Adrian TanAssociate DirectorTelecom Industry Group Leader (Singapore)email: [email protected]