using mobile to reach the affluent consumer - odyssey mobile

Affluent Europeans & mobile/tablet

1. Affluent Europeans2. Europe’s affluent & mobile technology3. Media consumption on mobile4. Mobile site optimisation & ad

effectiveness5. Future developments / conclusion

Affluent Europeans

“The European Affluent” – the top 13% of income earners in Europe.

What characterises this group:

1. Affluent Europeans

Business decision makers

Frequent flyers

University educated

Big shoppers

Income of €100k+

Premium car owners

Digitally savvy

Busy lives (business & social)

• The European affluent lead busy lives, working hard (60% more than 40 hours per week) and playing hard

• The European affluent have a high personal wealth and are willing to spend it on worthwhile items: personal travel, premium cars, big ticket items e.g. clothing and jewellery

• The European affluent are digital savvy and are early adopters of new technology

• E-commerce is very popular among the affluent (convenience and a time saver) and the average value of their online purchasing (in the most recent 6 months) has increased by over 50% in the last 2 years to an average of €1,644

Source: IPSOS - EMS Digital Deep Dive 2013. Base: Total (1,074)

Europe’s affluent & mobile technology

Private & Confidential - Odyssey 2014

Italy

France

Germany

UK

30%

32%

30%

47%

48%

55%

63%

80%

Use smartphoneUse tablet

Age 55+

Aged 45-54

Below 45

25%

35%

41%

42%

63%

77%

Female

Male

32%

35%

56%

67%

Total34%

63%

• Almost two thirds of Europe’s affluent use a smartphone and more than a third use a tablet.

• Almost a half of the UK’s affluent use a tablet

• Usage of smartphones among the under 45’s affluent is more than three quarters

• Even among the over 55’s tablet usage is at 25%

• General population smartphone = 57%*

• General population tablet = 18%**

• The European affluent are more likely to use a smartphone and much more likely to use a tablet

Source: IPSOS - EMS Digital Deep Dive 2013. Base: Total (1,074). *Comscore EU5 March 2013. **eMarketer 2013

Users of smartphones & tablets

2. Europe’s affluent & mobile technology


Brand of smartphone used most often OS of the smartphone used most often

48%

6%5%

9%

11%

20%

48%

31%

11%

4%4%

• Among Europe’s affluent smartphone users Apple has almost a 50% share of usage as does it’s OS

• Android has almost a third share of OS, operating across handsets from Samsung, HTC and Sony. Blackberry has an 11% share of both handsets and OS.

• Apple is better represented when comparing to the general population of smartphone users

Source: IPSOS - EMS Digital Deep Dive 2013. Base: Smartphone users (677). *Comscore EU5 March 2013


* *


Brand of tablet used most often:

other

75%

5%9%

12%• The Apple iPad has a dominant

share of the tablet market accounting for three quarters of all usage

• Apple has a disproportionately high share compared to the general population where tablets running android are more popular

• The low cost appeal of nexus tablets (for example) is not as relevant among the affluent

• Affluents can afford high end smartphones and tablets

Source: IPSOS - EMS Digital Deep Dive 2013. Base: Tablet users (365)



0%

15%

30%

tablet

tablet

smartphone

average weekend dayaverage weekday

smartphone

0%

15%

30%


Devices used for consuming media by hour

6 am

9 am

noon

3 pm

6 pm

9 pm

mid

nig

ht

3 am

6 am

9 am

noon

3 pm

6 pm

9 pm

mid

nig

ht

3 am

• Smartphone usage peaks on weekday mornings and early evenings – the peak commuter hours

• Smartphone usage maintains high usage levels throughout the day on weekdays – it is a device used for business as much as for pleasure

• Tablet usage peaks at 8pm on weekdays and weekends – indication of the tablet being used for entertainment (not business) and also dual screening

• Tablets and smartphones play different roles for affluent Europeans – the smartphone is the go everywhere mobile device and the tablet is the go everywhere around the home device



0%

15%

30%

45%

60%

75%

TV

tablet

smartphone

Newspaper/magazine

PC / laptop

6 am

9 am

noon

3 pm

6 pm

9 pm

mid

nig

ht

3 am

• Smartphone usage is higher than that of newspapers/magazines or TV during the day

• Tablet usage is above newspapers and magazines during the evening suggesting is it increasingly performing the role of those traditional media

• Smartphone usage is relatively consistent between morning and evening prime, the only media not to have big peaks and troughs

• The tablet peak is at the same time as TV peak reinforcing the notion of dual screening

• Smartphone and tablets are now established media among the affluent, both challenging the previous dominance of traditional media and acting as a complimentary outlet


52% of tablet users use the device while watching TV on

a daily basis


Devices used for consuming media by hour

average day


52


• The European affluent are more likely to use a smartphone and much more likely to use a tablet

• The European affluent can afford high end smartphones and tablets (esp. Apple)

• Tablets and smartphones play different roles for affluent Europeans – the smartphone is the go everywhere mobile device and the tablet is the go everywhere around the home device

• Smartphone and tablets are now established media among the affluent, both challenging the previous dominance of traditional media and acting as a complimentary outlet


Media consumption on mobile

visiting websites using apps reading digital versions of print

pubs

watching video streams of live TV

0%

5%

10%

15%

20%

25%

30%

35%

40%

Smartphone Tablet

Daily device activity (total sample)


• Almost a third of the European affluent are visiting websites and apps on their smartphones every day

• App usage is higher on smartphones than website visits – the affluent are more likely to be app users than the general population, especially paid for apps. 1 in 7 of the affluent choose to read their newspapers/magazines via app or tablet

• The European affluent don’t just own smartphones and tablets, but are intensive users

3. Media consumption on mobile


Tablet Smartphone0

10

20

30

40

50

60

Total users

Daily device activity – minutes used on average weekday

(time spent reading newspapers & magazines, watching TV and using internet excluding e-mail)

Source: IPSOS - EMS Digital Deep Dive 2013. Base: Total (1,074). *IAB 2013.

• Affluent tablet users spend 50 minutes a day on their device consuming media and smartphone users 21 minutes

• 71% of time on the tablet is for internet (not TV or print) rising to 85% for the smartphone

• Affluent Europeans proportion of internet usage over mobile/tablet is 39% higher than the average European.

• Affluent Europeans spend longer using their devices per day than the average consumer

25% of daily internet usage is on mobile/tablet,

+39% greater than the average consumer*



According to a recent facebook study, the ‘European Business Elite’ are +15% more likely to use

Facebook on their smartphone and +26% more likely to use on their tablet than the average*


Source: IPSOS - EMS Digital Deep Dive 2013. Base: Total (1,074). *The WorldWIred & Weathly Study by Sparkler for Facebook

• The European Affluent are heavy social media users with almost half using Facebook each day for an average of 34 minutes

• The European Affluent are more likely to use a smartphone or tablet to access Facebook than the general population



Eurosport

CNN

FT

BBC

NYTimes

SkyNews

0% 5% 10% 15% 20% 25%

Monthly “exclusive” smartphone/tablet reach of select

international media websites*

• The European affluent continue to consume international media, but now across multiple platforms

• With some international media websites almost a quarter of their monthly reach is now coming exclusively from smartphone & tablet users

• The media tastes of the affluent Europeans have not changed drastically, but the way they consume their preferred titles is increasingly moving to smartphone/tablet

Source: IPSOS - EMS Digital Deep Dive 2013. Base: Total (1,074). *EMS 2013 full survey. Private & Confidential - Odyssey 2014

52


• The European affluent don’t just own smartphones and tablets, but are intensive users

• Affluent Europeans spend longer using their devices per day than the average consumer

• The European Affluent are more likely to use a smartphone or tablet to access Facebook than the general population

• The media tastes of the affluent Europeans have not changed drastically, but the way they consume their preferred titles is increasingly moving to smartphone/tablet


Mobile site optimisation

• The European affluent are heavy online shoppers and are more likely to buy a product or use a service if the mobile site is optimised.

• If users can't find what they're looking for on a mobile site, they'll sooner seek out a competitor's mobile-friendly site instead of switching to a PC to revisit the first one

• A bad mobile experience can create bad feelings about a company. Nearly half of participants in the survey said they feel frustrated and annoyed when they happen across a site that's not mobile-friendly, and that it makes them feel like a company doesn't care about their business.

• The European affluent are cash rich, but time poor and are discerning customers – a poor mobile experience can not only lose their business but damage brand perception

4. Mobile site optimisation & ad effectiveness

Source: Google Research carried out by Sterling Research and Smith Geiger in July 2012

“What users want from Mobile Sites Today” (Google Study)

Why is an optimised mobile site important:


Do smartphone users notice ads on their device?

Source: The Mobile Movement Study, GoogleIpsos OTX MediaCT, 2011. Smartphone Users (5,013)

• 4 in 5 smartphone users say they notice ads on their smartphone, a high recognition level.

• Display ads are the most noticed format with almost half of smartphone users saying they notice banner ads

• Advertising on smartphones is a good way to reach the European affluent with a brand message.



I made a purchase directly through my connected device based on an ad I saw

I searched for more information about a business that I saw advertised through my connected device

I clicked on an ad to view the full advertisement or product offering

I made a purchase on the internet via PC

13%

26%

28%

32%

10%

23%

23%

32%

10%

20%

23%

27%

12%

27%

24%

27%

8%

20%

19%

34%

7%

14%

17%

28%

UK

Germany

Italy

Tablet owners Smartphone owners

Impact of Mobile Advertising After Seeing a Mobile Ad on Their Device

• Mobile advertising plays a crucial role in the purchase process – raising awareness and knowledge of a product/service then driving to the PC for purchase (approx. a third) and even resulting in an ‘on device’ purchase (approx. 10%).

• The European affluent spend significant amounts of time on their smartphones/tablets each day so are more likely to have the time to ‘follow-up’ on ads they’ve seen, plus they are used to online purchasing

Source: Nielsen 2012



Rich MediaNon-Rich MediaControl

27%

21%

3%

41%

29%20%

8%2%

Imagine you wanted to buy a product from John Lewis on your mobile - but the site wasn’t working so you couldn’t. Out of the below possibilities, which would be your most likely reaction?

+30%

What is the first high street retailer or shop that comes into your mind?

Importance of a working siteIncrease brand awareness – different formats

• Use mobile to increase brand awareness - mobile advertising increased unprompted awareness amongst those exposed to the advertising by 822%

• Invest in rich media to increase your cut through – those exposed to the expandable banner were 25% more likely to remember the advertising than those who saw the static banners

• Have a mobile optimised destination site to avoid a loss of potential revenue- 30% of consumers admitted they would take their business elsewhere if the mobile site experience was poor.

John Lewis Mobile Case Study

Source: IAB Rich Media Brand Effectiveness Study July 2011. Base:1295



52


• The European affluent are cash rich, but time poor and are discerning customers – a poor mobile experience can not only lose their business but damage brand perception

• Advertising on smartphones is a good way to reach the European affluent with a brand message

• The European affluent spend significant amounts of time on their smartphones/tablets each day so are more likely to have the time to ‘follow-up’ on ads they’ve seen, plus they are used to online purchasing


Future developments / conclusion

5. Future developments / conclusion

Mobile advertising (by which we mean all internet ads delivered to smartphones and tablets, whether display, classified or search) has now truly taken off and is growing seven times faster than desktop internet. We forecast mobile advertising to grow by an average of 50% a year between 2013 and 2016, driven by the rapid adoption of smartphones and tablets. By contrast we forecast desktop internet advertising to grow at an average of 7% a year.

We estimate global expenditure on mobile advertising at US$13.5bn in 2013, representing 13.1% of internet expenditure and 2.7% of advertising across all media. By 2016 we forecast this total to rise to US$45.4bn, which will be 29.0% of internet expenditure and 7.7% of all expenditure. This means mobile will leapfrog radio, magazines and outdoor to become the world’s fourth-largest medium by the end of our forecast period.

We forecast mobile to contribute 36% of all the extra ad spend between 2013 and 2016.

ZenithOptimedia Ad Spend forecast (December 2013):

• Mobile advertising is recognised as THE advertising medium of the moment and growing rapidly, it represents a huge opportunity to reach the European affluent that has not previously been realised.

Future Trends: rising mobile ad spend

Source: ZenithOptimedia Dec 2013 Private & Confidential - Odyssey 2014


Future Trends: increasing device penetration

Global smartphone penetration forecasts

Source: GSMA Mobile Economy Report 2013

• Smartphone penetration is increasing in all regions across the world. Western Europe leads the way and it is forecast that penetration will hit 79% by 2017. Tablet penetration is also increasing rapidly.

• Smartphone and tablet penetration among the European affluent will be ahead of that of the general population, meaning that over the next few years almost all affluent consumers will have (and be regularly using) smartphones



• …are high earners, time poor and always on the move - mobile/tablets are their facilitators for business, entertainment & shopping

• …can afford these high end personal electronics (especially the more expensive apple products) and are more likely to own and use them than the average

• …are intensive users of these products (esp. for internet browsing), overtaking some traditional media in terms of time spent – the tablet is also often used at the same time as the TV

• …still consume traditional international media titles, but consumption is now fragmented across multiple platforms including mobile & tablets

• …are busy and discerning customers, a mobile optimised site is crucial to maintain their attention whilst browsing and to reflect well on the brand itself

• …are heavy online shoppers and can be led to brand research/purchase by mobile ads, whether taken on to laptop or via the mobile/tablet itself

• …are ready and open to mobile advertising, device penetration will reach close to 100% in the coming few years and the sector is maturing into a major commercial vehicle

The European affluent…..


APPENDIX

Data in sections 1-3 is primarily taken from the “EMS Digital Deep Dive Study 2013”.

EMS is the foremost industry syndicated survey focusing on affluent Europeans, it looks at the top 13% of income earners in Europe and their lifestyle, media preferences and purchasing habits.

The Digital Deep Dive Study is a booster study that goes into deeper analysis of affluent Europeans consumption of media on digital platforms.

The Deep Dive study is an online re-contact study carried out in March 2013 in the UK, Germany, Italy and France. Total sample was more than 1,000 split evenly across the 4 markets.

EMS and the Deep Dive Study are carried out by ‘Ipsos’, one of the worlds largest market research companies.

EMS Digital Deep Dive Study 2013 executive summary:

Note on methodology

• New devices are rapidly entering the households of the affluent .

• The group of consumers using multiple media devices (PCs/laptops and tablets and smartphones) is growing by the day. The so called 3 screen users are not consuming less traditional media, but more additional media on tablets and smartphones.

• Consumption of the traditional media of print, TV and radio is there to stay: the consumption patterns remain stable.

• Next to the traditional media, a lot of time is spent on the internet.

• Tablets & smartphones provide the means of additional media usage through the day, on different times of the day and on different places.

• The consumption of media is fragmented over devices and platforms (publication, TV/video streams, websites and apps)

• Social media has gained a significant position in the media landscape.

• The British & Irish are ahead in adoption of mobile devices and more frequent usage of digital media. The rest of Europe follows closely behind.

• The group of connected TV users is still relatively small. They do not use the main TV screen as an internet device. They do use their smart TVs to watch more TV. Private & Confidential - Odyssey 2014

Europe’s affluent and social media

• Almost three quarters of the European affluent are social media users

• Half are users of Facebook

• More than a quarter use LinkedIn

• Almost a quarter spend more than an hour on social media

Usage of social media

71% of Europe’s Affluent are social media users

(used any social networking site in last 30 days)

21% are heavy (1+ hour a day)

social media users – av. of 2 hrs. 8 mins a day on social

media

Source: IPSOS - EMS Digital Deep Dive 2013. Base: Total (1,074) Private & Confidential - Odyssey 2014

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