The Tablet Revolution: A Report on Tablet Usage, Tablet Conversation Analysis & How Tablet Users Interact with Search Ads

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1 The Tablet Revolution: A Report on Tablet Usage, Tablet Conversation Analysis & How Tablet Users Interact with Search Ads RISE OF THE TABLET According to Gartner, tablets have sold faster than any other consumer technology device in history. By the end of 2011, 24 million U.S. consumers will own a tablet (emarketer). By 2012, global tablet sales will reach 81.3 million units close to 25% of PC units and 12.8% of the U.S. population will own a tablet (emarketer). Google found that 68% of tablet owners use their device at least one hour per day; 34% spend more time on their tablet than watching TV. The ipad has dominated the global tablet market, representing 89% of all tablet Web traffic (comscore). Apple has sold over 25 million ipads since launch. Apple is now driving more revenue through ipad sales than Mac sales. The ipad is particularly strong in the U.S. with a 97% share (comscore). But the ipad doesn t lack competition over 20 new Android-powered tablets will have launched in 2011 alone. TABLET CONVERSATION ANALYSIS What s the big deal with tablets? Performics utilized social listening data compiled from over 100 million consumer-generated media (CGM) sites through April and June 2011 to evaluate, measure and analyze social tablet conversations. Social conversations included users reviewing and comparing different tablets, as well as chatter on new tablet launches, tablet apps and tablet accessories. Our conversation analysis revealed who wants a tablet, why they want a tablet, what people think of various tablets and the key drivers in comparing tablet devices or features. All insights are based on Performics observed conversations: Who Wants a Tablet? According to emarketer, the typical tablet owner is male (61%), has a college degree or higher (56%) and is unmarried (71%). Performics conversation analysis revealed 4 dominant tablet personas: 1. Artists: uses include graphics and drawing (yet we observed a fair amount of conversations referring to graphic tablets, which are not the same type of tablet as the ipad) 2. Professionals: uses include taking notes, transporting reports, convenience for on-the-go 3. Students: uses include taking notes, converting handwriting to text, reading 4. General Users: includes reading, traveling, shopping, media, work Considerations When Purchasing a Tablet 1. Convenience: speed, portability, versatility (readers, drawing tablets, work stations), good for travel 2. Robust App Availability: itunes/music, movies, weather, Skype, etc. 3. Accessible and Portable Memory: SD cards in loading and transferring data 4. Availability of Accessories: Cases, stands, speakers, chargers, etc. 5. Customization Functionality: ability to tailor tablet to the user s unique style and needs 1

2 The Most Talked About Tablets The majority of conversations we analyzed included general tablet discussions on device specs, features, and accessories. And, of course, the ipad was a popular conversation piece. Although Windows 8 is a new OS not a tablet a great deal of conversations surrounded Windows 8 s compatibility with tablets. People are excited that Windows 8 can be installed on tablets, laptops and desktop and will have a touch keyboard similar to the ipads and Androids. Below, we broke out the tablet conversation volume based on device: 5% 5% 4% 3% 2% 2% 38% Tablet ipad 8% Windows 8 Tablet Android Tablet Thrive Tablet 11% Samsung Galaxy Tab Blackberry PlayBook Asus Eee Pad Transformer 22% Windows 8 Thrive tablet Tablet Conversation Peaks Nearly half of the conversations about tablets we analyzed included users providing a personal review and spec/ capability description on a specific tablet and then comparing tablet features. Despite the popularity of the ipad, people are also talking about new tablets, and they re anticipating new product launches. This proves that there s room for innovation in the tablet market and that the right new tablet could challenge the ipad. Generally, most conversations are not focused on a specific device or brand, but on which tablet fits the person s everyday needs (i.e. shopping, web browsing and media entertainment). Existing tablet users share opinions and information to help guide research and purchasing decisions. To the right, we broke out tablet conversation volume based on topic. Blogs and Twitter account for the largest amount of people who repetitively engage in tablet conversations. Twitter generates the highest engagement between people contributing to tablet conversations by linking to tech, gadget and bargain sites. Refers to product details and specs Refers to a new interest in the market, no brand loyalty (yet), or listeners waiting for the market to mature 2

3 Product reviews, product launches, device failures/issues, competitive pricing and user experience tend to drive when conversations initiate: Product Review & Description Product Launch Competition Experience Tablet vs. PC Unlike a PC, a tablet is portable and very versatile Reviews Tablets create new generation of interactive experiences Features & Specs Tablet make & model details Launch dates Expected tablet arrival dates and tablet news New Tablets New contenders in the tablet market Price Price is wrapped up in the announcement of new tablets and launch dates ipad competition Conversations ask, How will Tablet X compare/compete with the ipad? Price & Tablet Comparisons Tablet conversations on a price-comparison scale. Many conversations relate price to tablet specs Tweeting from tablet Just testing the new Acer tablet. So far very cool. Versatile Watch movies, work docs., use apps, read books, etc. Quality Tablet durability, battery life, and overall participant experience Our conversation analysis also revealed what people like (and don t like) about the ipad: ipad Props User-Friendly: The user experience is simple enough that even the most technophobic individual can figure out the ipad Battery Life: The real-world battery life of an ipad peaks at hours Apps: The ipad has more apps and accessories than any other tablet Price: Apple retains the same aggressive pricing structure even with new upgrades and features ipad Disses App Needs Improvement: The app doesn t integrate any of the features of popular clients, such as Microsoft Outlook and Gmail, and it doesn t handle attachments very well Videos: People complain about the inability to play Flash videos including everything on Hulu which leads to purchasing video strictly though itunes Apple Lock-In: Similar to most Apple products, the ipad is locked into the Apple ecosystem and doesn t adapt very well with outside products. All itunes-purchased content is wrapped in encryption software so that it can run only on Apple devices 3

4 HOW TABLET USERS INTERACT WITH ADS According to Chief Marketer s 2011 Mobile Marketing Survey, 56.6% of U.S. marketers use mobile display ads, and 35.4% use mobile cost-per-click (CPC) ads. Our conversation analysis revealed that your customers own, or will soon own, tablets. Are your customers likely to interact with display and CPC ads on those tablets? To answer this question, Performics aggregated paid search and Google Display Network data from our client base. As of June 1st, Google AdWords began breaking out Tablets with full browsers as a distinct device within AdWords reporting. Previously, tablets were grouped under Mobile Devices with Full Browsers. Based on Performics mobile paid search data, impressions were immediately high for the new tablet reporting category, making it clear that tablets have been materially contributing to Google mobile paid search share in the past few months. Tablet impressions are largely coming from the Display Network. Tablet clicks similar to both computers and mobile devices are largely coming from Google Search, rather than the Display Network or syndicated search partners: June Impressions June Clicks 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Computers Mobile devices with full browsers Tablets with full browsers Search partners Google search Display Network 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Computers Mobile devices with full browsers Tablets with full browsers Search partners Google search Display Network Time of Day Tablet Searcher Behavior (Content and Search Partners Excluded) Initial tablet searcher behavior by time of day not surprisingly resembles existing mobile habits. Tablet search usage peaks during off-work hours. While PC searches peak between the hours of 9 AM and 5 PM while people are at work both mobile and tablet usage peaks between the hours of 5 PM and 10 PM. However, while mobile devices also see moderately strong search usage between the hours of 11 AM and 5 PM, tablet devices are almost exclusively dedicated to the evening period. This shows that tablet users restrict their browsing to specific times of day (at night). Tablet users are more likely to multitask between their tablets, mobile devices and TVs at night: Impressions (Time of Day) Mobile Tablets 4

5 Tablet Paid Search Metrics (Content and Search Partners Excluded) In June 2011, Performics clients drove 12.1% of total paid search impressions (desktop + mobile) through mobile. In June AdWords first month of separate tablet tracking and reporting tablets contributed to 14.3% of all mobile paid search impressions. Based on these numbers, tablets composed about 2% of all paid search impressions in June (desktop + mobile): Impressions 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Mobile Tablets % Impressions from Mobile % Impressions from M + T In June, mobile click share rose to 11.9% of total paid search clicks (desktop + mobile). Tablets contributed 13.3% of all mobile clicks: Clicks 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Mobile Tablets % Clicks from Mobile % Clicks from M + T 5

6 Mobile and tablet cost-per-clicks (CPCs) also track significantly below PCs. Even with the rise in both mobile and tablet usage, initial expectations of mobile and tablet CPC inflation have not yet occurred. CPC Mobile + Tablet Computers TABLET IMPLICATIONS FOR ADVERTISERS 12.8% of the U.S. population will own a tablet by Our conversation analysis revealed that users are highly engaged with their ipads but open to innovation in features and functionality from ipad competitors. Thus, brands must assume that a significant number of their customers either already own a tablet or will soon own a tablet when they find the right one. Performics data also show that your customers are using their tablets to search for your brand especially during the evening hours. Google now allows for mobile devices and tablets to be targeted separately. Performics advocates that advertisers separate tablet campaigns from mobile campaigns. Brands must think of tablets as a third (or hybrid) device. Tablet usage patterns do look similar to established mobile usage patterns, with people searching in the evening from home. However, tablets are unlike mobile devices because they re bigger and feature advanced user scrolling and scaling functionality. For example, initial data suggests that tablet users are far more likely than PC and mobile users to click on search results lower down the page (in positions 2-10). Tablet users can scroll down with a gesture, meaning that they re more likely to peruse search results, as well as landing pages. Once tablets are targeted in distinct search campaigns, brands can employ tablet-specific copy and sitelinks like buy X accessory for your ipad or buy now from your tablet. It would also be wise for marketers to create a tablet strategy based on the leading personas of their brand. This will ensure that brands are meeting the needs of their specific audiences (i.e. artist, professional, student, etc). Additionally, traffic should be driven to desktop not mobile landing pages as tablets have bigger screens. Over time, marketers should redesign the tablet landing page experience to accomodate differences in tablet and desktop browsing. The tablet revolution is just beginning. Brands that embrace this trend and tailor advertising campaigns towards it will realize a first-mover advantage. The more tablet searcher data that brands can collect, the better (and faster) they can optimize advertising campaigns to tablet users. 6

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