The Mobile Telephone The Mobile Telephone User MarketUser Market

Presentation to the CDC eMarketing DivisionPresentation to the CDC eMarketing Division18 December 200818 December 2008

R. Craig Lefebvre, PhDR. Craig Lefebvre, PhDResearch Professor, George Washington UniversityResearch Professor, George Washington University

School of Public Health and Health ServicesSchool of Public Health and Health Services

The CDC OpportunityThe CDC Opportunity

The pervasiveness of mobile telephones creates The pervasiveness of mobile telephones creates new ways to reach people before and during new ways to reach people before and during pandemics.pandemics.

Three critical questions are:Three critical questions are:Who should be priority audiences for these mobile Who should be priority audiences for these mobile communications activities?communications activities?

What are the target behaviors to initiate, increase, What are the target behaviors to initiate, increase, decrease or avoid? decrease or avoid?

What type of messages, services and/or applications What type of messages, services and/or applications should CDC offer through this media?should CDC offer through this media?

Mobile: The 7Mobile: The 7thth Media Media

The 7The 7thth Mass Media Mass Media ChannelChannel

1 - first personal mass media1 - first personal mass media

2 - permanently carried 2 - permanently carried mediamedia

3 - always-on mass media3 - always-on mass media

4 - built-in payment 4 - built-in payment mechanismmechanism

5 - at the point of creative 5 - at the point of creative inspirationinspiration

6 - accurate audience6 - accurate audience

measurementmeasurement

7 - captures the social context 7 - captures the social context of media consumptionof media consumption

Tomi T Ahomen. CommunitiesDominate Brands blog, 2 May 2008.

Mobile Phones in Mobile Phones in December 2008December 2008

Worldwide there are about 800 million Worldwide there are about 800 million cable/satellite TV subscribers.cable/satellite TV subscribers.

850 million registered automobiles.850 million registered automobiles.

950 million people use PCs.950 million people use PCs.

1.2 billion fixed landline phones. 1.2 billion fixed landline phones.

1.3 billion access the internet.1.3 billion access the internet.

There are about 1.4 billion TV sets in use.There are about 1.4 billion TV sets in use.

1.5 billion people carry at least one credit card.1.5 billion people carry at least one credit card.

The total worldwide mobile subscriber base is The total worldwide mobile subscriber base is 3.95 billion (46% of world population has a 3.95 billion (46% of world population has a mobile phone).mobile phone).

Eighty percent of the world’s population now lives within range of a cellular network – Sara Corbett, NYT Magazine7 Apr 2008

Who Uses It in the US?Who Uses It in the US?

Estimated 270 million cell phone subscribersEstimated 270 million cell phone subscribers

40% use SMS (75 billion txt msgs sent monthly)40% use SMS (75 billion txt msgs sent monthly)

44% of people use their mobile as their main 44% of people use their mobile as their main cameracamera

34.6 million use mobile Internet services34.6 million use mobile Internet services

By 2009, every US mobile subscriber will have a By 2009, every US mobile subscriber will have a SMS-enabled phone; 98% will be web-enabledSMS-enabled phone; 98% will be web-enabled

Mobile Penetration of US Mobile Penetration of US HouseholdsHouseholds

(Source: CTIA, 2008)(Source: CTIA, 2008)

Mobile Data and Mobile Data and Communication Activities: Communication Activities:

AgeAge

Source: Pew Internet & American Life Project Survey, December 2007, n=1,704 for those with cell phones or PDAs. Margin of error is +/- 3 points. Survey conducted in English

Mobile Phones and TweensMobile Phones and Tweens(ages 8-12; N=20 million)(ages 8-12; N=20 million)

46% have them46% have them

Safety is the primary Safety is the primary reason parents givereason parents give

Average age when Average age when they get them is they get them is between 10 and 11between 10 and 11

55 percent of them 55 percent of them send text messagessend text messages

Source: Nielsen's Mobile Kids Insights survey (September, 2008)

“They’d send me a text saying, ‘Have papa come pick me up,’ and I couldn’t open it,” she said of her granddaughters. “They finally told me I had to learn.”

For English-speaking Hispanics, the cell phone is an oft-used and multifaceted device – more so than is the case for white or black Americans.

Mobile Data and Mobile Data and Communication Activities: Communication Activities:

Race & EthnicityRace & Ethnicity

Source: Pew Internet & American Life Project Survey, December 2007, n=1,704 for those with cell phones or PDAs. Margin of error is +/- 3 points. Survey conducted in English.

What features do you want What features do you want in a new mobile phone?in a new mobile phone?

text messaging (73%)text messaging (73%)

accessing the Internet accessing the Internet (61%)(61%)

email capabilities (63%)email capabilities (63%)

camera (67%)camera (67%)

music (34%)music (34%)

video capability (33%)video capability (33%)

Source: ACCESS Systems, 2 July 2008.

The Rush to the Mobile The Rush to the Mobile WebWeb

In the first 12 days In the first 12 days following launch, sales of following launch, sales of the iPhone 3G were the iPhone 3G were nearly double levels nearly double levels achieved in AT&T's 2007 achieved in AT&T's 2007 iPhone launch.iPhone launch.

AT&T wireless revenue AT&T wireless revenue growth of nearly 15% to growth of nearly 15% to $11 billion in Q2 2008 $11 billion in Q2 2008 was driven by solid was driven by solid subscriber gains and a subscriber gains and a greater number of greater number of customers choosing customers choosing more advanced more advanced smartphones and smartphones and integrated devices, integrated devices, spurring increased usage spurring increased usage of data services. of data services.

Mobile Phone SegmentsMobile Phone Segments

Michael Mace. The shape of the smartphone and mobile data markets. MobileOpportunity

blog, January 2007.

Mace: Mobile Phone Mace: Mobile Phone MarketsMarkets

SAMSUNG Mobile SegmentsSAMSUNG Mobile SegmentsStyle, Multimedia, Infotainment, Business, Style, Multimedia, Infotainment, Business,

Connected and EssentialConnected and Essential

World’s Leading Mobile World’s Leading Mobile Content CategoriesContent Categories

Music downloads - Music downloads - $12B$12B

Gaming - $10BGaming - $10B

TV and video - $10BTV and video - $10B

Social networking - Social networking - $9B$9B

Mobile ConvergenceMobile Convergence

A Language of Consumer A Language of Consumer CentricityCentricity

SearchSearch

ProximityProximity

RecommendationRecommendation

LinksLinks

DiscoveryDiscovery

Currency of Currency of informationinformation

A Moore. The glittering allure of the mobile society. November 2008.

The Mobile SocietyThe Mobile Society

RolesRoles

Life EnablersLife Enablers

Life SimplifiersLife Simplifiers

Life NavigatorsLife Navigators

Tools forTools for

CollaborationCollaboration

CommerceCommerce

DiscoveryDiscovery

EntertainmentEntertainment

EducationEducation

Information exchangeInformation exchange

NetworkingNetworking

Social identitySocial identity

Primary source: A. Moore, The glittering allure of the mobile society. November 2008.

Focus on the relationships thatsocial media tools facilitate, not the tools themselves. ."