Mobile Trends | October 2013

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Mobile TrendsOctober 2013

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Contents/ A quick history

/ The numbers: where we are now

/ Who’s winning?

/ More sophisticated devices & demanding consumers

/ Where do I start?

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A quick history...

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2007Blackberry, Microsoft and Palm dominated the smartphone market in the U.S.

The U.S. significantly lagged Japan and EMEA (Europe + Middle East + Africa) in smartphone adoption.

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iPhoneThe original iPhone was released six years ago, on June 29, 2007.

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AndroidThe first Android phone, the Google G1 (HTC Dream) was released five years ago.

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SmartThese devices set the standard for smartphones: touch interface + fast connection + wifi + full browser + app stores.

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Image: 9to5HDWallpapers

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The Numbers:Now

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billion people in the world

7.1billion mobile phone subscriptions

6.8Source: Mobithinking

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47% Increase in sales of smartphones from 2012 to 2013

Source:(IDC Source: Gartner

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2013First year smartphones outsell feature phones worldwide

Source:(IDC Source: Gartner

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Feature phones are beingreplaced by smartphones

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2000 2002 2004 2008 2010 2012 20142006 2016

WE ARE HERE

0.5B

1B

1.5B

2B

2.5B

Personal Computers

Smartphones

Tablets

Global Internet Device Sales

So, if you think mobile is big now, just wait...

Source: Business Insider

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64%of all U.S.mobile phone users now have smartphones (Sept. 2013).

we are here

Source: Nielsen

Wide ReachSmartphones have reached critical mass among U.S. adults 25-54

Adults 25-54, M-Su 6A-Mid 85,000+ sample, 12 Month, Scarborough 2013Adults 25-54, MobiLens, comScore, August 2013

TV Cable Radio Internet Smartphone

70%

85.1%94.3%

82.5%85.1%

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notice mobile ads

90%have performed a search after seeing mobile ads

82%Source: Digital Marketing Arts

Smartphone users

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8%CHINA

28% UNITEDSTATES

9%

33%

26%

34%

13%

17%

24%

21%

Share of New iOS and Android Activations% of Global Total

Jan.2011

Mar. May Jul. Sep. Nov. Jan.2012

China outpaced U.S. smartphone adoption in 2012

http://blog.flurry.com/bid/88867/iOS-and-Android-Adoption-Explodes-Internationally

Source: Flurry

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70%

59%57%

25%22%

EgyptIndiaSouthAfrica

US

Percentage of Mobile-Only Internet Users

UK

Smartphones are often a person’s only Internet connection

Source: Mobithinking

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21%of all adult smartphone owners

60%of hispanic americans

50%of young adults (age 18-29)

Mobile First: Many in the U.S. go online primarily with their smartphone.

Source: Pew Internet

Always ConnectedA typical day is increasingly connected: mobile peaks at lunch, tablets in evening

24hr attached and engaged

everyday, all day

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Facebook: As time spent on mobile increases, revenue follows.

Source: International Business Times

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2.6U.S. average hours per day spent on mobile phones and tablets

Source: Flurry

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Apps: 80% of our time spent on Android and iOS devices is spent in apps, 20% is spent on the mobile web.

web20%

apps80%

Source: Flurry

Games, Entertainment, SocialAccount for a majority of our time on our smartphones (Android & iOS)

Source: Flurry

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U.S. Smartphone MarketshareJune 2013, by OS

Android iOS Blackberry Microsoft Other

0.5%3%4.3%

40.4%

51.8%

Source: Comscore

U.S. Smartphone MarketshareTrend: Google and Apple together own over 90% of the market

0%

25.0%

50.0%

75.0%

1-Feb-11 1-May-11 1-Jun-11 1-Oct-11 1-Jan-12 1-Mar-12 1-Jun-12 1-Nov-12 1-Feb-13 1-May-13 1-Jul-13

Android Apple Blackberry Microsoft OtherSource: Comscore

51.8 %

40.4 %

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Previous Leaders DisplacedApple iOS and Google Android Dominate

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So, who’s winning?

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or ?

Android leads marketshare...In the U.S. and even more worldwide

Other7.8%

iOS40.4%

Android51.8%

Other6.8%

iOS14.2%

Android79.0%

US Smartphone OS, July 2013 Worldwide Smartphone OS, July 2013Source: Comscore Gartner,

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iPhones are used more heavily...Although there are fewer iOS devices, they are used more

iOS62.0%

Android38.0%

iOS vs Android Mobile Browser Use, June 2013

Source: Chitika

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Smartphone Profits, WorldwideApple and Samsung own the profits, and Samsung’s share is growing

-20.0%

5.0%

30.0%

55.0%

80.0%

2007 2008 2009 2010 2011 2012

Apple Samsung Blackberry NokiaSource: Canaccord Genuity

69 %

34 %

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1,000,000+Google Play, July 2013

900,000+Apple iOS App store, June 2013

Both Google Play and iOS App store have a ridiculous number of apps.

Source: Wikipedia

App Download & SalesAndroid leads in number of downloads, iOS brings in significantly more revenue

Other9.0%

iOS40.0%

Android51.0%

Other6.0%

iOS74.0%

Android20.0%

Percent of App Downloads, Q1 2013 Percent of App Revenue, Q1 2013Source: Time

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Both Face Similar ChallengesThe high-end of the market is becoming saturated, continued growth will come at scale

Source: New York Times

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Interbrand Best Global BrandsApple and Google are #1 and #2, Samsung moved up to #8

http://www.nytimes.com/2013/09/11/technology/apple-shows-off-2-new-iphones-one-a-lower-cost-model.html?pagewanted=all&_r=0

http://www.interbrand.com/en/best-global-brands/2013/Best-Global-Brands-2013-Brand-View.aspx

“Brands like Apple and Google and Samsung are changing our behavior: how we buy, how we communicate with each other, even whether we speak with each other,” Mr. Frampton said. “They have literally changed the way we live our lives.”

Source: Interbrand, New York Times

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So, again, who’s winning?

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It’s complicated.

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Hard to say who’s in first, but Apple, Google and Samsung are

winning big.

Everyone else is fighting for what’s left.

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More sophisticated devices & demanding consumers

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MotionThe Nintendo Wii and Microsoft Kinect introduced a wide new audience to motion control, preparing us for new and unique ways to interact with our digital devices.

Image Sources: Microsoft, Nintendo

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MagicAdvances in technology and software have exposed consumers and popular media to magical experiences that set increasingly high expectations.

Image Sources: space150, Red Bull

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iOS 7The biggest update to iOS since its launch in 2007. New visual design and experience, new features, built for the future and optimized for how we use mobile devices.

Image Source: Apple

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AndroidWith Android 4.0, Google focused on the experience and visuals with three guiding principles for app creators:

/ enchant me / simplify my life/ make me amazing

Image Source: Google

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WindowsA new design and interaction language across all devices: desktop, tablet, phone, and xbox.

Image Source: Microsoft

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Evolving Visual DesignSimpler and flatter visual design, less clutter and visual chrome

Source: Techland

iOS 6 User Interface Components iOS 7 User Interface Components

Image Sources: Apple, Bryon Clark, Taps + Apps

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Evolving Visual DesignWe’re moving beyond metaphors and skeuomorphism

Google G1 + Android 1.x2008

HTC One + Android 4.x + HTC Sense2013

Image Sources: Google, HTC

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TouchlessSamsung’s Galaxy S4 allows you to answer by waving your hand, pauses video when you look away, and tries to integrate with more of your home than ever before.

Image Source: Samsung

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Touch IDApple’s new iPhone 5S introduces biometric security to the masses, allowing you to unlock your phone and purchase items with a simple touch of your finger.

Image Source: Apple

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GlassGoogle is working to bring the power of mobile devices to the world in a new way, and asking for help from the community to unleash it’s potential.

Image Source: Google

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WearableSmart Devices like the Fuelband, Fitbit Flex, Jawbone UP are poised to grow rapidly and provide us with unprecedented types of information about ourselves.

Image Sources: Nike, Fitbit, Jawbone

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ConnectedThe “internet of things” is a new generation of devices that are built to be connected to the Internet and our devices, paving the way for new experiences and possibilities.

Image Sources: Dropcam, Tile, Nest

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Simplifying ComplexitySoftware and services analyze complex data and create simple, useful results

Google Now Mobile App Dark Sky Weather App

Image Sources: Google, Dark Sky

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Where do I start?

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FutureMobile is changing and growing quickly, build for the future.

MediaMobile media outperforms desktop, and is a deal.

StartIf you aren’t leveraging mobile yet, you need to.

Mobile is an increasingly important part of our lives. Three takeaways:

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Build for the Future

Image Source: Starbucks

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FutureThe mobile landscape is evolving quickly. Startups like Uber and existing brands like Starbucks have aggressively leveraged mobile and are seeing impressive results. Use what you’ve learned from the past, but don’t be weighed down by it.

Image Sources: Uber, Starbucks

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Use Mobile Media

Image Source: Apple

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AdsMobile ads are a great deal right now: Low demand, good inventory, strong targeting capabilities, and cost is comparable to desktop.

Image Sources: Google, Yahoo!

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Mobile beats desktop averages for click through, interaction, awareness and purchase intent.

When mobile specific features are used, these rates are even higher.

CTR (Click Through Rate)1 0.08% 0.35%Interaction Rate2 1.94% 15.6%Awareness Lift3 2.00% 5.0%

Purchase Intent Lift3 1.00% 4.0%

desktop mobile

1 Doubleclick, September 2013; “The State of Mobile Advertising,” Opera MediaWorks, July 20132 Doubleclick, September 2013; “Quarterly Benchmark Report,” Celtra, August 2013

3 Ad Effectiveness, Dynamic Logic, 2010-2012Additional Sources: Adweek,WebProNews

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Go

http://blogs.adobe.com/digitalmarketing/digital-marketing/mobile/should-you-build-a-mobile-site-a-mobile-app-or-a-hybrid-part-i/

Start Now

Image Source: Google

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Start Now76% of consumers won’t bother with a non-mobile optimized site, or will turn to a competitor instead. Start with the basics, learn, and grow.

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Image Sources: Visual Trends, Google

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Thank you.Marc Jensen, Managing Parter / CTO

[email protected]

http://www.space150.com

With help from our mobile, experience, engineering, media, creative and strategy teams.