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Mobile Trends & Innovations Hamutal Schieber | October, 2014

Mobile Trends & Innovations

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Page 1: Mobile Trends & Innovations

Mobile Trends & Innovations

Hamutal Schieber | October, 2014

Page 2: Mobile Trends & Innovations

Introduction

• Consumers are becoming increasingly dependent on mobile technology. Consumers not only own more

mobile devices, but they also use them more often for an increasing number of tasks.

• Marketers are searching for ways to grasp opportunities stemming from the extraordinary mobile

penetration and usage patterns. Mobile devices provide easier ways for marketers to provide added-

values to the consumer and shopper, making their lives easier.

• The following presentation discusses several trends and enablers, mainly:

Emerging Devices & Technologies

• Internet of Things

• Wearable Tech

• Mobile TV

Consumer added values from mobile

• health & wellness monitoring

• Convenience & location based services

• Money / time saving

• Entertainment and education

• personalization

Marketing Best Practices

• Browsers vs. apps

• Gaming

• Payments

• Content

• Advertising

• commerce

Page 3: Mobile Trends & Innovations

Market Trend Mapping

Market Trends

• Smartphone & Tablet

• Wearable Tech

• Internet of Things

• Channel convergence

Mobile Content

• Video

• Growth of Apps

• Gaming

• Social

Mobile Commerce

• Research, m-commerce

• Mobile wallet

• Self service

Strategies to Provide Added Value

• Consumer health & wellness monitoring

• Convenience & location based services

• Money / time saving

• Entertainment and education

• personalization

Page 4: Mobile Trends & Innovations

Market Trend Mapping

Market Trends

• Smartphone & Tablet

• Wearable Tech

• Internet of Things

• Channel convergence

Page 5: Mobile Trends & Innovations

Mobile Penetration

• According to GSMA, the mobile industry has scaled

dramatically over the last decade.

• By 2020, the majority of the world’s population (56%)

is expected to have their own mobile subscription.

2003: 1 billion unique subscribers (1 in 6 people)

2013: 3.4 billion unique subscribers (47% of population)

Page 6: Mobile Trends & Innovations

Mobile Penetration

• eMarketer predicts that by the end of 2014, 1.76

billion people will own and use smartphones

monthly, up more than 25% over 2013. Just

under a quarter of the world's total population

will use smartphones this year, and by 2017,

more than a third of all people around the globe

will be smartphone users.

• By 2015, eMarketer estimates that 15 countries

worldwide will have seen more than half their

populations adopt smartphones.

Page 7: Mobile Trends & Innovations

Mobile Penetration

• According to KPCB, between 2013 and 2014

there had been a huge growth in mobile usage

share of web usage.

Page 8: Mobile Trends & Innovations

Mobile Penetration | By Device

• According to Gartner, global PC, tablet, “ultramobile” and mobile phone shipments are set to break 2.4 billion units in 2014, and nearly 88 percent of that number will be attributable to mobile phones and tablets —specifically devices built on Google’s Android operating system, which on their own will account for nearly 1.2 billion devices.

• Within mobile phones, smartphones are very much becoming the norm rather than the rising trend. They will account for 66 percent of all mobile sales in 2014, and Gartner projects that number to be 88 percent in 2018.

Gartner predicts the tipping point in favor of tablets will happen in 2015, when there will be nearly 321 million tablets shipped, versus close to 317 million PCs.

Page 9: Mobile Trends & Innovations

Mobile Penetration | By Region

• According to GSMA, the global unique subscriber base has

been growing at a rate of 7.3% per annum. Growth is

forecast to continue, but at a slower rate of 3.5% out to

2020.

• Unique subscriber penetration rates vary significantly

across regions. Europe has the highest penetration rates,

followed by North America and then the CIS.

Source: GSMA

Page 10: Mobile Trends & Innovations

Mobile Penetration | By Region

• Consumers in the Asia-Pacific region will account for more than half of all global smartphone

users this year, totaling 951 million. Western Europe is the second largest region of global

smartphone users with 196.6 million this year, eMarketer estimates.

Page 11: Mobile Trends & Innovations

Mobile Penetration | US & UK

• eMarketer expects 65.0% of US mobile phone users, or 51.4% of the total population, to use a smartphone at least monthly in 2014. That compares with two-thirds of mobile phone users in the UK, or 53.7% of the total population.

• A recent Deloitte study found that 66% of UK consumers state that they have their mobile device with the all the time, and 34% state that their smartphone / tablet is the first device that they reach for when they want information on a product or service.

• The over 55s will experienced the fastest y-o-y rise in smartphone penetration. As a large percentage of the population will be over 55 in 2014 (for instance, 25% of adults in the UK), this is a lucrative market.

Page 12: Mobile Trends & Innovations

Mobile Penetration | Wearable Tech

• The mobile user experience is breaking out of the classic phone form factor.

• Juniper Research expects worldwide spending on wearable devices to jump from $1.4 billion this year to $19 billion by 2018.

• In another report, ABI Research claims that sales of wearable computing devices will exceed 485 million shipments worldwide by 2018.

• And, per Ericsson, once the physicality of mobile payments is altered through wearable tech, mobile wallets will be the idea providers of the necessary identity and value transfer infrastructure to make all this scale.

• Garmin is one of the most dominant competitors in the wearable tech sphere, with watches that track location, heart rate, speed and other measurements.

• Nike, with Nike+ Fuelband, and Fitbit, are other dominant competitors.

• Apple is now entering the field with iWatch.

Page 13: Mobile Trends & Innovations

Mobile Penetration | Internet of Things

• Internet of Things / IoT is a network of networks of uniquely identifiable

endpoints (“things”), that communicate without human interaction, using IP

connectivity. (IDC, 2014)

• IDC (2014) estimates that the IoT market revenue was $ 1,928 B in 2013,

expected to reach $ 7,065 B ($ 7 Trillion) by 2020.

Source: Gridley & Company, Jan. 2014

Page 14: Mobile Trends & Innovations

Mobile Penetration | Internet of Things

• LG’s tie-up with Line, the popular Asian messaging

service, allows customers to chat with LG’s

HomeChat suite of ovens, fridges and washing

machines. It even includes the ability to send

Line’s famous range of cartoon animal stickers to

home appliances.

• Alarm.com: The connected home platform

connects a wide range of supported devices

across the internet of things, through a cloud-

based services platform and a mobile app.

Page 15: Mobile Trends & Innovations

Market Trend Mapping

Mobile Content

• Video

• Growth of Apps

• Gaming

• Social

Page 16: Mobile Trends & Innovations

Mobile Content

• As a recent KPCB

report indicates,

smartphone and tablet

are becoming the

most significant

mediums for content

consumption.

Page 17: Mobile Trends & Innovations

Mobile Content | Video

• According to research from Digitalsmiths, just over 42% of internet users

in North America watched news video content on their smartphones, and

more than 36% watched previews for TV shows or movies.

• That compared with 30.9% of respondents who said they watched full-

length movies on their phones, and 27% who watched TV show reruns.

• eMarketer estimates that in the US alone, 72.1 million smartphone users

watched video on their devices at least monthly in 2013, a figure that will

rise to 86.8 million by the end of 2014.

• Mobile owners use devices in conjunction with tv

watching (multi-tasking)

Page 18: Mobile Trends & Innovations

Apps vs. Browsers

• Mobile app downloads are predicted to double

between 2013 and 2017 according to Juniper

Research.

• In Q4 2013, Nielsen found that US adult Android

and iPhone users were spending 65% more time

with mobile apps than they had just two years ago:

30 hours, 15 minutes in Q4 2013, vs. 18 hours, 18

minutes in Q4 2011. However, the average

number of apps owners used had barely risen over

the past two years, from 23.2 in Q4 2011 to 26.8 in

Q4 2013, indicating that users were spending more

time with the apps they had, as opposed to

downloading new ones.

Page 19: Mobile Trends & Innovations

Apps vs. Browsers | Motivations

• The main reasons for using apps, per April 2014 data from

comScore Mobile Metrix, are:

– Easy access

– Mobile optimization

Page 20: Mobile Trends & Innovations

Apps vs. Browsers | Leaders

• Data from app analytics provider Flurry

indicates that gaming still dominates

mobile usage with 32% of time spent on

iOS and Android devices, while Facebook

remained a strong second with 17% of

time spent on mobile.

• Facebook, combined with Twitter (1.5%)

and Social Messaging apps (9.5%) grew to

28% of time spent on mobile in 2014, up

from 24% last year, indicating the broader

shift from socializing on Facebook to

sharing within smaller, more private

messaging applications.

Page 21: Mobile Trends & Innovations

Apps vs. Browsers | Browser Success

• For some, however, browsers

actually claimed an overwhelming

chunk of time.

– Wikimedia Foundation sites –

88% of time spent done on a

browser

– Glam Media - 84% of time

spent done on a browser

• What makes these and other content

hubs a Browser success, are:

– Responsive design – a must

– Easy, quick access, and a great

User Experience

Page 22: Mobile Trends & Innovations

Apps vs. Browsers | Browser Strategies

• According to a Google Think study, if the mobile experience isn’t properly designed, then the

customer might leave or switch to a competitor’s site.

• The experience is reliant upon 6 major factors:

– Speed

– Usability

– Content

– Consistency

– Path to Purchase

– M-Commerce

• The main strategies to achieve these goals, per Google, are: responsive web design, dynamic

serving and separate sites.

• Google claims these lead to better search visibility, more effective campaigns and greater

brand value.

Page 23: Mobile Trends & Innovations

Apps vs. Browsers | Browser StrategiesType Responsive Web Design Dynamic serving Separate sites

Description Same URL, Same HTML: Optimises

experiences across different screen sizes

without creating multiple websites. Responds

to screen size and orientation to adjust

images, layout and content visibility. Uses

touch-screen acts e.g. dragging, swiping.

Easier for people to share links that work well.

Same URL, Different HTML: Server

detects device type and presents

custom page on same URL. Pages

designed for any kind of device. Some

code maintenance on a per device

basis.

Different URL, Different HTML: Mobile site

independent of desktop site. Browser detects

if visitor is on a mobile device and redirects

them to the mobile site. Mobile sites tailored to

needs of mobile user.

Pros Single URL for a piece of content: Easier to

share/link to content and build URL equity

(SEO).

Content parity: Same content regardless of

device being used, providing streamlined user

experience.

No redirection: This will reduce load time.

Breakpoints can easily be added for new

screen sizes.

Fully customized device experience:

Content and layout created for a specific

user

segment.

Easier to make changes: Changes can

be limited to specific customer

segments.

Faster load times: Opportunity to

streamline and optimize content for

optimal load times.

Single URL: Builds brand equity across

devices and makes sharing easy

Fully customized to mobile users: Content and

overall experience created for a specific user

segment.

Easier to make changes: Changes can be

limited to the mobile version of a website,

other devices do not have to be considered.

Faster load times: Opportunity to streamline

and optimize content for optimal load times.

Cons Limited flexibility: Challenge to develop a fully

customized device-specific experience, and

fully address user’s context.

Content forking: Several sets of content

which can make management more

complex (unless CMS is used).

Multiple URLs: Sharing a web page requires

flawless redirecting integration.

Content forking: Two different sets of content

which can make management more complex.

Source: Google Think

Page 24: Mobile Trends & Innovations

Apps vs. Browsers | Responsive Web Design

• Athletic apparel retailer Champs Sports has seen its mobile commerce

sales increase 183% in two months, since implementing Responsive Web

design.

• Content is at the heart of Champs’ mobile efforts: the retailer has been

partnering with lifestyle publisher Complex Media to boost the content on

its own site and to drive traffic to its ecommerce platforms.

Page 25: Mobile Trends & Innovations

Apps vs. Browsers | Responsive Web Design

• According to Google Think, Plusnet

saw a rise in visits from

smartphones and tablets and

implemented a multi-screen

strategy, using responsive web

design (RWD) to build a new site

that works across devices and

screen sizes.

• The new site has resulted in online

sales via smartphone and tablet

devices growing tenfold year over

year, and "time to convert" has

decreased 40%.

Source: Google Think

Page 26: Mobile Trends & Innovations

Apps vs. Browsers | Separate Site

• According to Google Think, Since

moving to a separate site,

AutoTrader receives more than

30% of all traffic from users on

mobile devices.

Source: Google Think

Page 27: Mobile Trends & Innovations

Mobile Gaming

• A study by Smashing Ideas found that the number one reason for

Smartphone Gaming in the US, is stress relief.

• In addition, nearly one in five US females said they played

smartphone games to interact with friends and family, compared with

just 14% of male respondents. Males' No. 1 reason for playing with

pals, on the other hand, was fueled by competition, with 16% of men

saying they played because they liked to outrank their friends.

• More than eight in 10 respondents said they played games on a

smartphone or tablet at home.

While the mobile gaming market may

be expanding, time spent with the

activity is limited. Among US

smartphone and tablet gamers, the top

amount of time spent playing

smartphone or tablet games daily was

just 0 to 30 minutes, according to

Smashing Ideas.

Page 28: Mobile Trends & Innovations

Mobile Gaming

• Games are an important source of

revenue in mobile commerce.

• In the US, game in-app purchases

are estimated to reach $1.5 billion in

2014, while game downloads

generate $1.1 billion this year.

Page 29: Mobile Trends & Innovations

Mobile Gaming | Strategies

• Mobile gaming is far from being restricted to

classic game applications. In fact, many

companies now offer gaming features in their

apps, in order to increase consumer

engagement.

Keeping scores at the Aviva insurance app

Page 30: Mobile Trends & Innovations

Market Trend Mapping

Mobile Commerce

• Research, m-commerce

• Mobile wallet

• Self service

Page 31: Mobile Trends & Innovations

Mobile Commerce

• Data from eMarketer indicates that U.S. m-commerce sales on tablets

are soaring while the influence of smartphones on purchases grows:

U.S. retail mobile commerce sales (on smartphones and tablets,

including sales of digital goods but excluding sales of travel services

and event and movie tickets) will soar from $42.13 billion in 2013

(16.0% of total web sales of $263.31 billion) to $132.69 billion in 2018

(27.0% of $491.44 billion).

• In 2014, eMarketer expects $38.02 billion in sales on tablets

compared to $18.49 billion on smartphones; this already exceeds a 2-

to-1 ratio. By 2018, 72.6% of m-commerce will take place on tablets,

totaling $96.31 billion.

• Tablet sales are growing considerably faster than smartphone sales

in the UK, even though smartphone usage is far more common than

tablet usage, and is expected to account for two-thirds of total UK m-

commerce sales in 2014.

• eMarketer expects tablet-based retail m-commerce sales to more

than double from £9.28bn this year to £20.96bn by 2018.

Forrester, 2014

Page 32: Mobile Trends & Innovations

Mobile Commerce

• In the US, m-commerce constitutes a small share of

e-commerce sales.

• Goldman Sachs estimates that worldwide, mobile

commerce sales will account for almost half of total

web sales by 2018. That’s in large part because,

compared with the U.S., a much higher percentage of

Internet users in developing countries with huge

populations access the Internet via mobile devices.

• In any case, the importance of mobile is not only

for sales via mobile devices, but also stems from

the use of mobile in-store and its influence on

purchase made online.

Page 33: Mobile Trends & Innovations

Mobile Commerce | By Age Group

• The most active group for mobile commerce in the UK is 25 to 34 year olds, according to a

recent Deloitte survey. 50% of respondents reported browsing retailer websites from their

phone in the last week, and 21% reported buying goods from the phone.

Page 34: Mobile Trends & Innovations

Mobile Payments• According to eMarketer, the significant jump in total and per-

user spending, will be driven by consumers adopting mobile

payments for a wider array of products and services

constituting an equally broad gamut of price points.

• Another important factor is the fact that payment enabling

devices are becoming more widespread, and they include

the mobile payment integration in the new iPhone by Apple.

Competing technologies include PAYM, NFC, BLE, MPOS,

QR Codes, MasterPass, Paywave, Pingit, Zapp and others.

• Electronics online retailer Newegg reported that

adding Google Wallet Instant Buy to its mobile

site, caused shoppers to convert 100% more often

compared to other payment options

• The PayPal app enables to make payments and

money transfers anytime, anywhere.

Page 35: Mobile Trends & Innovations

Mobile Payments | USA

• According to eMarketer, mobile proximity payments (i.e., as

transactions for goods or services made by scanning, tapping,

swiping or checking in with a mobile phone at the point of sale), will

top $1 billion in the US this year, before expanding rapidly to reach

an estimated $58 billion by 2017.

• Driven by consumers buying items like daily coffee via closed-loop

payment systems, as well as an increase in in bigger-ticket

purchases made via smartphones, mobile

• payment transactions more than tripled from 2011 to 2012 in the US,

eMarketer estimates, reaching $539 million last year.

• Still, the market is growing slower than previously expected, as

evidenced by eMarketer’s scaled-back estimates of user adoption

and transaction value from initial projections in October 2012. Delays

and adoption issues facing numerous mobile wallet initiatives, as well

as a congested landscape of competing technologies, materially

affect eMarketer’s outlook on mobile payment transaction values,

which will not top $20 billion until 2016. The previous forecast

predicted mobile payments would top $20 billion by 2015.

Page 36: Mobile Trends & Innovations

Market Trend Mapping

Strategies to Provide Added Value

• Consumer health & wellness monitoring

• Convenience & location based services

• Money / time saving

• Entertainment and education

• Personalization

Page 37: Mobile Trends & Innovations

Best Practice | Mobile Service

• Akbank Direkt is one of Turkey’s top mobile

banking application and an award winning

app, allowing to perform all money

transactions on the go.

• Hotels use mobile technology to create a

personalized self-service experience: smart

phone as a key, self-service check-in and

booking available 24/7.

Page 38: Mobile Trends & Innovations

Best Practice | Mobile Service

• Customers of German health insurer DKV can submit their invoices over iPhone, iPodTouch or iPad by simply

scanning the square QR code printed on the document into their device. The scanned data is encoded and sent to

DKV. The only requirement is that the correct barcode is printed on the doctor’s invoice.

Page 39: Mobile Trends & Innovations

Best Practice | Mobile Commerce

• JUST EAT revealed that its iOS and Android apps have reached the milestone of 1.3 million total downloads. During

2013, download numbers have increased by 500%.

• Users of the app are now able to save their card details, filter search results by cuisine and customer rating, write

their own reviews, and find nearby takeaways with new geolocation features.

• The result is an environment that empowers both restaurant and consumer. JUST EAT customers are able to use the

app to find the highest rated takeaway restaurants in their area and make informed decisions on where to place their

order. Meanwhile, small local restaurants have the opportunity to expand their customer base, enter the growing

online marketplace and compete with national takeaway chains.

Page 40: Mobile Trends & Innovations

Best Practice | Mobile Commerce

• US retail giant Target is pursuing an aggressive omnichannel agenda, and it views mobile as the bridge between the

online and physical worlds. In 2013, Target has been named 2013 Mobile Retailer of the Year. Target worked to

understand how its customers shopped and met them there, blurring the lines between channels.

Page 41: Mobile Trends & Innovations

Best Practice | Mobile Commerce

• Starbucks is seeing big results via mobile, with the

beverage giant generating more than three million

United States mobile payment transactions per

week.

• Starbucks reported that new mobile users are

embracing its mobile payments app because it lets

them track their loyalty status in an interactive way.

In October 2013, Starbucks’ mobile app surpassed

70M mobile payments transactions.

• The company recently announced its plans to

launch a mobile-based delivery service, tying the

app’s loyalty and payment plans.

Page 42: Mobile Trends & Innovations

Best Practice | Mobile Commerce

• Glasses.com offers a virtual try-on feature

Page 43: Mobile Trends & Innovations

Best Practice | Mobile Commerce

• Asos.com offers to sell unwanted clothes via the mobile app.

• eBay RedLaser – Barcode Scanner, Shopping assistant & QR

Code Reader.

Page 44: Mobile Trends & Innovations

Best Practice | Mobile Commerce

• On June, 2014, Amazon launched Fire, the first smartphone designed by

Amazon.

• It features two unique technologies - Dynamic Perspective and Firefly. The

Dynamic Perspective uses a new sensor system to respond to the way you

hold, view, and move Fire.

• The phone has two dedicated shopping/consumption functions, designed to

funnel more mobile commerce through Amazon.

• The Firefly button, Amazon's real-world shopping recognition technology:

Customers can use the phone's cameras to scan physical objects in the real

world, like a store, and Firefly will identify them, and then provide a channel

through which users may be able to buy the objects more cheaply.

Page 45: Mobile Trends & Innovations

Best Practice | Mobile Personal Assistant

• Organize your travel plans in one place with TripIt from

Concur: forward your travel confirmation emails to

[email protected] and TripIt automagically creates a detailed

daily itinerary for every trip.

• Everything.me: creates a personalized phone, based on the user’s preferences, time of day etc.

Page 46: Mobile Trends & Innovations

Best Practice | Mobile Socializing

• Glympse is a fast way to share your location safely using GPS tracking in real time with friends and family

Page 47: Mobile Trends & Innovations

Thank You

The research was conducted by:

Hamutal Schieber

Schieber Research | Market Research & Competitive Intelligence

www.researchci.com | [email protected]

Executive Summary. For the full research - please contact

Carmelon Digital Marketing

http://www.carmelon-digital.com