Mobile Internet Apr09

The Next Big Things: Mobile Internet & Applications - Gaining Momentum

THE GLOBAL SOURCE OF DIGITAL MARKET INTELLIGENCE ™

Agenda

� About Us

� Mobile Media Overview

� Mobile Internet

� Mobile Content & Apps

� Mobile Advertising

2© comScore, Inc. Proprietary and Confidential.

� Summary & Questions

What We Do….

� We provide a digital marketing intelligence platform that helps our customers make better-informed business decisions and implement more effective digital business strategies

■ Computer measurement:• 2MM opt-in panelists, 1MM in the US, who have given

permission to have their Internet usage tracked.• Our consumer panel is a representative cross-section of the

U.S. population and across ISPs as well as worldwide regions and individual countries

• We also have permission to survey panelists, match to third-party databases, and append offline data


party databases, and append offline data

■ Mobile Measurement (m:metrics):• Provides a comprehensive understanding of mobile phone

owner characteristics and behavior.• Connects mobile consumer behavior, content

merchandising, and device capabilities to provide the most comprehensive, trusted mobile market intelligence in the industry.

■ Our products and solutions provide our customers deep insights into consumer and competitor behavior, both online and offline

360°View of the Mobile Consumer w. MobiLens

• Online survey ties specific handset models to individual consumers.• Detailed demographic and behavioral data can be linked to technology and carrier programming.• Technical capabilities of every handset in market: >7,000• Monthly census of operator content portals: 2,000+ publishers, 15,000+ titles• Intelligent survey of 10,000+ US mobile phone owners every month.

Device DataWhat devices are out there and what can they do? Consumer Data


Collating multiple sourcesOEM specs, WURFL, UAProf

Consumer DataWho uses which devicesand what do they do withthem?

Intelligent online surveydriven by device ownershipand carrier offers

Content DataWhat content & services are offered by whom in what model?

Automated probing & scraping of carrier decks

comScore Mobile Clients Define the Mobile Ecosystem


2008 Q1

Agenda

� About Us


� Mobile Internet





What are consumers doing with their phones? A lot mo re then just making calls (finally)

Mobile

Mobile Phone Activity by Media Activity

� Mobile Media defined anyone who browses, downloads or uses an application


Mobile Media, 35.3%

SMS (and not mobile

media), 27.7%

Just Voice, 37.0%

Product: MobiLensData: Three month average ending Jan 09Country: USN= 35,629

Put Another Way ….

6 in 10 phone owners use non-voice services


Nearly 4 in 10 phone owners use mobile media (excludes those who use only text)


Mobile Browsers, Application Users and Downloader's (mobile media users) are steadily growing.

� Over 35% of mobile users are now using a media service that connects to the network (other than SMS, MMS or voice).

28.5%

35.3%

25.0%

30.0%

35.0%

40.0%

% Mobile Media Users



0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

200801 200802 200803 200804 200805 200806 200807 200808 200809 200810 200811 200812 200901

% P

enet

ratio

n

One of the major reasons for mobile media growth is the improvement in device technology.

� Nearly 50% of users who have a mobile device that is 6 months old or less now use mobile media (browsing, downloading or application usage).

� As devices improve a greater % of people use media services when they get a new handset.

48.2%50.0%

60.0%

% of users with 6 months old device or less who are mobile media users



38.0%

0.0%

10.0%

20.0%

30.0%

40.0%

200801 200802 200803 200804 200805 200806 200807 200808 200809 200810 200811 200812 200901

% P

enet

ratio

n

The internet took off when people moved from dial-u p to broadband. Mobile will be the same.

� When the network speed gets faster (3G) and cost come under control (data plans) people are more likely to use more mobile media services.

� 80.1% of unlimited data plan subscribers are mobile media users.

� 49.3% of 3G device owners are mobile media users (35.3% of total market are mobile media users).

30.0%

35.0%

Growth of market enablers



0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

200801 200802 200803 200804 200805 200806 200807 200808 200809 200810 200811 200812 200901

% P

enet

ratio

n

Unlimited Data Plan Subscribers 3G Device Owners

There are many services available on mobile devices . Understanding their ranking by popularity gives con text.

Ranking Activity # of Users % UsersYear on Year

Growth

Total Market 230,000,000 5.0%

1 Sent text message to another phone 131,850,414 57.3% 25.7%2 Took photos 102,637,691 44.6% 27.5%3 Mobile Media Users (browsers, downloader’s or apps users) 81,197,792 35.3% 30.1%4 Used network services for sending photos/videos 70,526,366 30.7% 46.8%5 Sent photo directly to another phone 64,836,829 28.2% 46.6%

� SMS, camera and messaging services popular.

� Mobile games top mobile content genre.

� Strong growth in all categories, notice connected services, e.g. browsing, e-mail and IM.


6 Changed to native ringtone 64,006,803 27.8% 23.4%7 SMS Ads: Number received in month 57,372,866 24.9% 36.4%8 Changed to native graphics 57,181,097 24.9% 33.0%9 Played games 56,325,549 24.5% 19.6%10 Set graphics with camera 55,347,818 24.1% 22.4%11 News/info via browser 45,909,797 20.0% 59.7%12 Transferred photo to PC 45,874,895 19.9% 48.0%13 Captured video 40,872,968 17.8% 54.5%14 Used email (work or personal) 40,710,038 17.7% 54.2%15 Sent photo via email 39,514,195 17.2% 55.1%16 News/info via SMS 32,383,204 14.1% 114.9%17 Used major instant messaging service 31,887,456 13.9% 85.8%18 Made own ringtone 28,916,467 12.6% 35.4%19 Sent video directly to another phone 25,939,241 11.3% 81.7%20 Listened to music on mobile phone 25,002,843 10.9% 71.0%


Different services are used by different demographi cs.Mobile media users older and more female than many think

� Younger demographics creating their own ringtones, using social networking and listening to music.

� Mobile internet services skew 60% male and average age 32 years old.

� Mobile content more even gender split .

� Unlimited data plan subscribers average age over 35.

Purchased a Ringtone

Made own ringtone

Played a game

Mobile Media Users

Unlimited Data Plan Subscriber

50.0%

55.0%


Mobile Media Users

Listened to music

Ringback Subscriber

Watched broadcast TV

Downloaded a Song OTA

Used email

Browsed for News and Info

Watched on-demand video

Used an applicationPurchased a game

Social Networking

25.0%

30.0%

35.0%

40.0%

45.0%

25.0 27.0 29.0 31.0 33.0 35.0

% F

emal

e

Median Age

Higher on chart = more femaleFurther to right = olderSize of bubbles = # of users


Top mobile media devices dominated by touch screens

� Top 6 devices = 9.3% of mobile media users,

� Top 20 devices = 21.4% of mobile media users

� Rim, Apple and LG most


LG most prominent OEMs

� Apple = 5.7% and Blackberry = 9.6% of mobile media users

� 2 RAZR’s still in the top devices


Agenda

� About Us


� Mobile Internet

� Mobile Apps




Mobile Internet Services Booming

� Device technology, data speeds (3G) and data plans enable the mobile internet to take off, content and services drive up-take.

� Steep rises in mobile internet being spearheaded by social networking, 196.7% year on year growth.

� Applications show second highest annual growth rate at 116.7%.

20.0%

25.0%

% P

enet

ratio

n



0.0%

5.0%

10.0%

15.0%

200801 200802 200803 200804 200805 200806 200807 200808 200809 200810 200811 200812 200901

% P

enet

ratio

n

News and Info via Browser News and Info via Application Social Networking E-mail (Work or Personal) IM

Information snacking genres dominate mobile browsin g with search being the entry point.

� Transactional mobile browsing starting to show, e.g. bank accounts, auction sites, electronic payments and online auctions.

� Local information also prominent, e.g. maps, movie listings, business directories, traffic , etc

� The combination of local services and transactions will bring about new business models.

� Strong web brands continue extend their dominance on mobile

Comics or humor

Electronic payments

Shopping guides

Top Mobile Browsing Genres (excluding social networ king)


0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000

Web search

News

Entertainment news

Movie information

Tech news

Business directories

Bank accounts

General reference

Gaming information

Dating service

Comics or humor

UsersProduct: MobiLensData: Three month average ending Jan 09Country: USN= 35,629

Traditional Media Assets Translating Well on Mobile

Male Female1. CNN 1. CNN2. ESPN 2. Yahoo!

Top 10 Mobile Web News Brands, by Gender, UScomScore MobiLens, October 2008


18

3. Yahoo! 3. The Weather Channel4. The Weather Channel 4. Google5. FOX 5. FOX6. Google 6. ABC News7. CBS 7. AOL8. MSNBC 8. MSNBC9. ABC News 9. CBS

10. NFL.com 10. ESPN

DIRECTORIES % mobile users accessing % PC users accessing Site visitation lift

Mobile Web Data coupled with comScore’s PC Web DataYellowpages.com expands its reach by 6% with its mo bile website

Cross-Platform Website Reach


DIRECTORIES WEB SITE USAGE

% mobile users accessing content via PC

% PC users accessing content via mobile device

Site visitation lift (increase in Internet site visitor base due to mobile visitation)

64% 2% 1%

28% 1% 4%

43% 4% 6%

Business Directories

Category64% 5% 3%

Product: Cross Media PanelData: Feb 09Country: US

Multimedia Uptake Drives Viral Interactions,Connection to PC…..

Take Photos in a Month (91mm) Listen to Music in a Month (21mm)


Sources of Music on Mobile HandsetsCaptured Videos (41mm)

Product: MobiLensData: Three month average ending Dec 09Country: USN= 35,629

Agenda

� About Us


� Mobile Internet

� Mobile Apps




App Stores: Everyone’s Doin’ It!

� First 8 months of Apple App Store . . .

> 25,000 applications

800,000,000 downloads

� Coming Soon . . .

Android Marketplace (Google) . . . Available now


SkyMarket (Microsoft Windows Mobile)

Blackberry App World (RIM)

Ovi Store (Nokia)

Others??

� What will it take to match Apple’s success?

Top 25 Apps by Penetration of iTunes App Users Feb 2009

Top 25 Apps by Penetration of iTunes App UsersFebruary 2009Total – Home/Work/University LocationsSource: comScore iTunes App Report

ApplicationPenetration of

Installs Category DeveloperTap Tap Revenge 32% Games Tapulous, Inc.Backgrounds 27% Entertainment Stylem MediaTouch Hockey: FS5 26% Games FlipSide5, Inc.Facebook 26% Social Networking Facebook, Inc.Pac-Man 24% Games NamcoiBowl 24% Games SGNMySpace Mobile 23% Social Networking MySpace.comGoogle Earth 22% Travel Google Inc.


Google Earth 22% Travel Google Inc.Labyrinth 22% Games Codify ABPandora 21% Music Pandora Media, Inc.Flashlight 19% Utilities John HaneyVirtual Zippo Lighter 18% Lifestyle Moderati Inc. and Zippo Manufacturing Co.Movies 18% News FlixsterHangman 18% Games JamsoftBubblewrap 18% Entertainment Orsome Software Ltd.Lightsaber Unleashed 17% Entertainment Lucasfilm LtdShazam 17% Music Shazam Entertainment Ltd.Mazefinger 16% Games ngmocoCube Runner 16% Games Andy QuaSol Solitaire 15% Games Smallware LLCCrazy Penguin Catapult 15% Games Digital Chocolate Inc.Topple 15% Games ngmocoSudoku 14% Games Mighty Mighty Good GamesRemote 13% Entertainment Apple

comScore tracks application portion of

1.0MM panelists in U.S.Person downloads or

purchases appApps are tracked/managed in Application portion of iTunes

comScore’s iTunes App Store User Report


comScore’s iTunes App Store User report is the only app report to:• Profile consumers showing interest in particular apps and/or categories of apps

• Household demographics• Online profiling

• Track cumulative iTunes app penetration by title, publisher, and category • Provide a holistic view of the market, not just a portion of the market using a particular

analysis tool• Use a transparent methodology

iTunes App Store Users Profiling Feb 2009

� 35% had a household income of more than $100,000 per year, 32% more likely than the average online user

� More than half (54%) of app users come from households making at least $75,000 per year

� At least 3X likelier than the average online user to visit gaming sites:

Gaming Sites Social/communication/entertainment sites:


Gaming Sites• Ultimate-guitar.com• IGN Entertainment• GamStop• Addicting Games• Xbox.com• Blizzard Entertainment• SourceForge• EA.com

Social/communication/entertainment sites:• AOL Instant Messenger• Hulu• Twitter.com• Digg.com• iMeem• MTV.com

Facebook app install base are >5X more likely to be found on collegeboard.com when browsing on their computer

5 Times More Likely to Visit:


Facebook iTunes App install baseCompared to the Average Internet User (Feb 2009)





Agenda

� About Us


� Mobile Internet





Mobile related industries dominate mobile banner ad vertising.

� In the long tail however there are many non mobile sectors using mobile banner advertising. Of the 509 mobile banner advertisers tracked 118 were from non-mobile related sectors.

Wireless Telecommunication ServicesLeisure Facilities

Application SoftwareInternet Software & Services

Automotive RetailFood Retail

Communications Equipment

Top 20 industry sectors using mobile banner adverti sing(Blue bars indicate mobile industry; Red bars non-mobile industries)


0 20 40 60 80 100 120

Mobile PublishingBroadcasting & Cable TV

Mobile GamesMobile Personalization

Movies & EntertainmentMobile Social Media

Automobile ManufacturersMobile Music & Video

Specialized Consumer ServicesEducation Services

Hotels, Resorts & Cruise LinesLeisure Products

Consumer FinanceWireless Telecommunication Services

Product: Ad Metrix MobileData: Jan 09Country: US

Advertisers Proctor & Gamble are taking notice

� Over 300 different creatives

� Product Advertised: Covergirl Wetslicks, Always Infinity, Dayquil, and Nyquil

� English and Spanish language campaigns

� Ads ran on over 70 of the 400 mobile websites MMetrics monitors


Product: Ad Metrix MobileData: Dec 08Country: US

SMS Ads – Consumer Interaction is Substantial

30,000,000

40,000,000

50,000,000

60,000,000

SMS Campaign Interaction


Nov-07 Dec-07 Jan-08 Feb-08 Mar-08Apr-08 May-08

Jun-08 Jul-08Aug-08

Sep-08Oct-08

Nov-08

S1

S2

Number of Mobile Subscribers who received at least 1 SMS

advertisement

Number of respondents

0

10,000,000

20,000,000

For November 2008, 16% of mobile subscribers who re ceivedan SMS advertisement responded to at least one ad

UK: Mobile Media Audience Receptive to Advertising

“I’m tempted to buy products I’ve seen advertised”

30

35

% o

f med

ia c

onsu

mer

s w

ho a

gree


25

Mob

ile m

edia

Mag

azines

Cinem

a

Inte

rnet

Newsp

aper

s

Radio TV

Outdo

or

% o

f med

ia c

onsu

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Source: TGI M:Metrics 2008 – Base: All GB adults (aged 15+)

Interacting with the Flash ad significantly increas es purchase intent

% who would consider purchasing Axe

59% 61%

74%

Total

52%

59%

By Gender

∆Lift +15% Lift: +25%


Control Exposed - No Interaction

Exposed - Interacted

52%48% 48%

Male Female Male Female

Q4. Which of these men’s shower brands, if any, wou ld you consider purchasing? % selecting Axe Base: Test N=2447. Control N=943. Exposed – No in teraction N=2321. Exposed – Interacted N=126

Indicates significant difference at 95% confidence

The campaign was most successful at increasing purchase intent among males

Contro l Test

∆Lift +2% Lift: +3%

∆Lift +13% Lift: +21%

Agenda

� About Us


� Mobile Internet





So In Summary

�Newer phones, faster networks, and more unlimited data plans continue to enable growth in mobile content and applications

�Current economic conditions slow growth, but won’t stop it

�Mobile extends reach of online and doesn’t necessarily cannibalize


�Mobile apps are all the rage and provide significant opportunity

�Challenging to break out of the pack�Opportunity for branding

�Progressive advertisers are at least testing, and in some cases requiring, mobile in their media mix…because mobile works!

Thank You.

For more information, please contactcomScore Mobile [email protected]

THE GLOBAL SOURCE OF DIGITAL MARKET INTELLIGENCE ™

Documents

Mobile Internet Apr09