Jerry rocha

Confidential & Proprietary • Copyright © 2009 The Nielsen Company

Mobile, Media, Apps, Tablets and How your Pay for it!!

Jerry Rocha, VP Digital Solutions

Twitter: jerryrocha

[email protected]

Confidential & ProprietaryCopyright © 2009 The Nielsen Company

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Smartphone PenetrationAll Subscribers

Smartphones have seen steady adoption – this rate of adoption will only increase with better devices and cooler features

28%

22%21%16%

31%

19%17%

25%

75%79%

83%84%81% 78%

72%69%

Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010

Smartphone

Feature phone

Among recent acquirers

Smartphone penetration is at

45%


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Smartphone Penetration - ProjectionAll Subscribers – Q4 10

Without accounting for innovation and increased adoption to the marketplace Smartphones will be a majority by Q3/4 2011

34%

42%46%

51%56%

61%69%

66%

58%54%

49%44%

39%

38%

28%25%

21%17%16%

10%

22%

14%13%

19%

31%

62%

72%

81%84%

87%90%

86%

75%

83%79% 78% Smartphone

Feature phone


Smartphones continue to drive data usage with Apple and Android leading the way

36%

23%

18%

11%

10%

80%

62%

50%

29%

24%

79%

47%

37%

19%

15%

90%

82%

66%

38%

35%

90%

80%

66%

37%

27%

Mobile internet

Application (App)downloads

Location-based Services

Mobile video

Mobile commerce

All Mobile Users

Smartphone

RIM BlackBerry OS

Apple iPhone OS

Android OS

Media Activities Used by Operating SystemAll Subscribers – Q4 10

Source: Nielsen Mobile Media Survey, US, Q2 2009

Question used: T1910


Android jumped 36% from last quarter and has grown ~625% YoY

36%

30%

17%

20%21%

24%

27%28% 28% 28%

0%2% 2% 2%

4%

9%

19%21%

18%17%

14%12%

11%

8% 8%6%

26%

37%

34%

37%

34%35%

37%

28%

25%

14%

Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10

RIM BlackBerry OS

Apple iPhone OS

Android OS

WinMo

Share of Smartphone Market by Operating SystemSmartphone Owners


Apple is leveling off, showing moderate growth again in Q4

59%

21%

15% 14%12%

0% 0% 0% 0% 0% 1% 2%

23%21%

10% 10%8%

62%

50%

45%

41%

53%

60%57%

21% 20%17% 16%

4%

20%

13%15%

Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010

Apple iPhone OS

RIM BlackBerry OS

Android OS

Microsoft WindowsMobile

Media Activities Used by Operating System – AT&TSmartphone Users – Q4 10

58%42%

Smartphone


Smartphones have plenty of room to grow at Verizon, Android continues to take market share

44%

8%

22%18%

5%

65% 66%

58%55%

46%

40%

16%

3%

24%

37%

6% 5%

Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010

RIM BlackBerry OS

Microsoft WindowsMobile

Android OS

Media Activities Used by Operating System – VerizonSmartphone Users – Q4 10

76%

24%Smartphone


Smartphones continue to drive data usage with Apple and Android leading the way

56%

73%66%

54%

44%

27%34%

46%

Hispanic White African-American Asian/Pacific Islander

Smartphone

Feature phone

Smartphone Penetration by Race/EthnicityRecent Acquirers – Q4 10

Source: Nielsen Mobile Media Survey, US, Q2 2009

Question used: T1910


45%

31%27%

18% 16%

Facebook WeatherChannel

Google Map Pandora Twitter

32%27%

21%18% 17%

Facebook Youtube WeatherChannel

Google Map Pandora

46% 45%

33%

24% 22%

Google Map Facebook WeatherChannel

Pandora Youtube

50% 47%

36%32%

23%

Facebook WeatherChannel

GoogleMaps

iPod/iTunes Pandora

Most Popular Used Apps on the Android OSPast 30 Day App Downloaders (n=414)

Most Popular Used Apps on the BlackBerry OSPast 30 Day App Downloaders (n=715)

Most Popular Used Apps on the Windows Mobile OSPast 30 Day App Downloaders (n=449)

Most Popular Used Apps on the iPhone OSPast 30 Day App Downloaders (n=1,014)

Early App leaders similar across OS platforms; Web carryovers out to early lead

Source: Q2 2010 Nielsen App Playbook

Brands Application Track 9


91%

86%84%

82%

77% 76%

Game Apps Entertainment Apps Map/Navigation/Search

Productivity Apps Food Apps News Apps

% of Smartphone App Downloaders that would Pay for an App within a Category

Most App users willing to pay for content

Source: Q2 2010 Nielsen App Playbook

Brands Application Track 10


Source: August 2010 Nielsen App Playbook

13%

19%

23%

23%

29%

47%

Other

Shared it withfamily/friends

Purchased goods/servicesor requested a quote

Joined a social community

Used it to locatestores/outlets

Joined rewards program

Action Taken after Branded App DownloadBase: Downloaded a Branded App (n=484)

Nearly half of branded app downloaders have joined a rewards program following the download

Questions used: CQBA8 Which of the following actions have you taken after downloading a branded app?Brands Application Track 11


4%6%8%

16%21%

25%

Tablet ComputerseBook readersNetbooksPortable mediaplayers

Portable gameplayers

Smartphones*

Penetration of Connected Devices

Source: September 2010 Nielsen Connected Devices Playbook

Questions used: Q6 Which of the following categories of connected devices do you or any one in your household currently own?

* Smartphone penetration is derived from Nielsen’s Q2 2010 Mobile Insights study.

Tablets are still a nascent market favored by early adopters

48%

35%

26%

35%37%

30%

Tablet ComputerseBook readersNetbooksPortable mediaplayers

Portable gameplayers

Smartphones

Percentage of Owners Who Identify as “Early Adopters”

General Population Sample N=9590, Netbook Owners (n=1,293), Tablet owners (n=749), e-readers (n=1,089), Portable Media Players (2,118), Portable game Player (1,678), Smartphones (2,336)


The iPad skews younger and male

N= 195, 569, 452, 864, 879, 510

Netbook eReader Tablet Smartphone Media Player

Gaming Netbook eReaderTablet Smartphone Media

Player Gaming


The iPad spends most of the time at home..

Sedentary MobilePrimary Usage:

Q29: Think of your [connected device] usage, what percentage of the time were you…N=510, 195, 569, 879, 452, 864

GamingGaming NetbookNetbook eReadereReader Media PlayerMedia Player TabletTablet SmartphoneSmartphone


Print and video benefit from the iPad’s larger screen size

Q38: Which of the following media content do you regularly access through your connected device?N= 452, 864

Publishers are rushing to iPad

and Tablets, going to save

industry?


And less personal than a smartphone

Q9: Who in your household uses each of these device categories that you own?N= 1,793; 1,560; 562; 1,293; 1,041; 2,242


Nielsen Ad Effectiveness Framework

• Did the ad break through?

BreakthroughBreakthroughAttitudes

& IntentionsAttitudes

& Intentions Behavior & Sales Behavior & Sales

• What was the impact of ad exposure on consumer attitudes?

• What was the impact of ad exposure on sales behavior?

OTS-based Recall surveyOTS-based Recall survey

Control/Exposed surveyControl/Exposed survey

Met

rics

Use

dM

etri

csU

sed

Qu

esti

on

Qu

esti

on

Met

ho

dM

eth

od

Control/ExposedobservationControl/Exposedobservation

– Brand Awareness– Brand Favorability– Purchase Intent

– Search– Site visits– Sales (CPG Vertical)

– General Recall– Brand Recall– Message Recall– Ad Favorability– Purchase Intent Increase


iAd, IAG TV and Internet Ad Measurement Process

TV Ad

TV and Internet Campaigns

iAd Campaign On-device survey about iAds among exposed and control iPhone/iPod Touch users administered by Apple

IAG Panel respondents identify TV programs viewed in previous 36 hours; online surveys about shows and TV/Web ads administered by Nielsen

Raw respondent level iAd survey data transferred to Nielsen for processing

TV survey data input into Nielsen data warehouse

Web Ad


The Banner iAds on average achieved more than twice the Brand Recall of the average Food & Beverage Internet Display ad

Web Ad Source: Nielsen IAG, Food & Beverages Category (40 measured brands), 1.1.09 to 12.09.10, A18+

Campbell’s iAd Data: Among Respondents who were exposed to the Campbell’s iAd banners, A18+, Sample size (N=174)


Favorability and Purchase Intent increased significantly among consumers who were exposed to the Campbell’s iAd Banners

Campbell’s iAd Data:,: 11.01.10 – 12.09.10; A18+ Top box (“Very Favorable” , “Very Likely”) among brand aware.


Compared to what Campbell’s is achieving with its TV campaigns, the expanded iAd has generated significantly stronger impact

TV Standard Ad Source: Nielsen IAG, Broadcast + Cable Primetime; 11.01.10 to 12.09.10, A18+

Campbell’s iAd Data: Among Respondents who were exposed to and tapped on the Campbell’s iAd, A18+, Sample size (N=51)

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