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1 TABLE OF CONTENTS Executive Summary 2 Mobile Phone Users 3 Mobile Web Browsing 4 New Media Channels 5 Importance of Mobile 6 Advertising Spending 7 Location-Based Services 9 Location-Based Ads 10 Mobile Social Media 11 QR Codes (2D Barcode) 12 M-Commerce 13 Mobile Apps 14 About WSI 16 Source of all statistics:

2 Executive Summary Mobile Marketing is Changing the Face of Digital Media The world of digital media is shifting again, and the next big contender is mobile marketing. The concept of mobile marketing involves several techniques, such as mobile websites, social location marketing, SMS and MMS marketing, mobile advertising and mobile apps. As the use of smartphones and tablets continues to rise, more people are accessing online information on their handheld devices. This provides marketers with an exciting opportunity to expand the reach of their messages to the palm of their audience s hands. According to emarketer, worldwide companies are currently using mobile marketing to build customer engagement by creating applications (28%), increasing dialogue with customers (23%), implementing m- commerce (15%) and location-based marketing (11%). About half of all respondents said they are planning to execute the above mentioned strategies within Mobile technology is developing a strong presence in people s lives transforming the way companies communicate with their target audience. Gone are the days when advertising was a one-way messaging strategy. Today, digital media provides new channels of two-way communication, and this paradigm shift is evident in the way marketers are spending their advertising dollars. This Mobile Marketing Trends Report is a brief synopsis of current mobile trends as well as projections for the next few years. Specifically, the report covers mobile phone usage, mobile web browsing, mobile ad spending, location-based services, mobile social media, QR codes, m-commerce and mobile apps. For more information about WSI s mobile marketing services, please contact your local WSI Consultant. Copyright 2011 by Research and Management Page 2

3 Mobile Phone Users Mobile Phone Usage Continues to Increase By the end of this year, 3.82 billion people will become mobile phone users (consuming 55.2% of the world s entire population) In 2012, worldwide mobile phone users will increase to 4.11 billion (58.7% of the total population) The mobile population will increase again in 2013 and 2014 to 4.38 and 4.61 billion respectively By 2015, 67.4% of the world s population will have a mobile phone (4.85 billion people) Worldwide Mobile Phone Usage by Region Europe and North America dominate in terms of mobile user penetration in their individual regions (74.3% and 74.0% in 2011 respectively) Meanwhile, in Latin America 63.4% of the region s population are mobile phone users (2011) All regions will see an increase in mobile phone user penetration over the next few years Copyright 2011 by Research and Management Page 3

4 Mobile Web Browsing Mobile Web Browsing Will Rise in Popularity According to emarketer, 7% of Internet users consider their mobile phones as their favorite device for accessing the web By 2012, this number will increase by more than double to 18% Currently, 2% of Internet users consider their tablets as a favorite web accessing device, but in just one year, this number will increase to 19% Interesting, PCs/laptops will decrease in popularity as a web accessing device next year (from 79% to 42%) Mobile Internet Traffic Doubled In One Year In June 2010, 2.03% of total Internet traffic worldwide came from a mobile device In June 2011, mobile web browsing made up 5.02% of total Internet traffic worldwide Mobile web browsing has steadily increased each quarter over , a trend that indicates a continual increase into next year Copyright 2011 by Research and Management Page 4

5 New Media Channels Marketers Are Evaluating Several Mobile and Social Opportunities Marketing executives around the world are evaluating several new media channels, including social and mobile technologies 61% of respondents are considering social media and online communities, while 39% are evaluating Internet media channels as potential new tools Meanwhile, 39% of marketers are evaluating whether mobile relationship marketing could fit in their strategy Almost a quarter of all respondents (24%) are considering the opportunity of developing a mobile website The same number of respondents (24%) are evaluating the idea of mobile app development Location-based advertising is being considered by 18% of worldwide marketers as a possible strategy to implement Other strategies that are being evaluated include: point-of-sale messaging, online video segment syndication and affinity network group formation Copyright 2011 by Research and Management Page 5

6 Importance of Mobile Half of Worldwide Companies Will Provide Mobile Customer Service 27.8% of companies around the world currently provide customer service via mobile devices Meanwhile, 12.8% of worldwide companies admit they will enable this capability within the first 6 months of 2011 Another 8.3% of respondents will enable mobile customer service capabilities beyond the first 6- month period of 2011 Mobile Technologies Becoming Important for 2011 and % of agencies and 77% of brand marketers agree that iphone apps will be an important marketing technology for 2011 and % of agencies and 42% of brand marketers said the same about location-based technology Android apps are considered important technologies to 70% and 52% of agencies and brand marketers respectively Copyright 2011 by Research and Management Page 6

7 Advertising Spending Mobile Ad Revenues Set to Rise Year Over Year This year, mobile ad revenues worldwide will reach $3.37 billion and is expected to rise to $4.01 billion in 2012 By 2016, an estimated $7.51 billion will be spent on mobile advertising worldwide Mobile Takes a Larger Share of Online Adspend As mobile advertising spending continues to increase, naturally mobile advertising will consume a larger share of the online adspend pie each year In 2011, 4.4% of total online advertising will be spent on mobile, and by 2016 this share will increase to 5.8% Mobile Adspend By Region Asia-Pacific and Japan are currently seeing the largest mobile adspend ($1.63 billion in 2011) In North America, $701.7 million will be spent on mobile advertising, while Europe will see mobile adspend reach $569.3 million by the end of this year Copyright 2011 by Research and Management Page 7

8 Advertising Spending Mobile Display and Search Adspend Will Rise In 2010, SMS consumed most of the world s total mobile ad revenues (34.8%), while display advertising made up 33.7% of total mobile adspend By 2015, mobile adspend will shift slightly in terms of format as display will consume 31.3% of total mobile adspend and mobile search takes a 25.7% share App store ad revenues will make up 12% of total mobile adspend, which is more than double the 5.5% it consumed in 2010 Reasons Advertisers Are Investing in Mobile Worldwide advertisers invest in mobile because more consumers have access to smartphones (according to 78% of respondents) The ability to target certain demographics based on devices is another reason advertisers use mobile (according to 61%) 42% of advertisers admit that the attractive ad formats is the reason they invest in mobile Copyright 2011 by Research and Management Page 8

9 Location-Based Services Mobile Internet Users Are On Their Devices While in Public Places or Traveling Recent studies show that 23% of mobile Internet users worldwide use their devices while traveling or roaming On the other hand, 27% of mobile web browsers use their phones in public places, while 17% use their devices at work Since more than half of all mobile Internet users are on their devices outside of their homes, marketers have an opportunity to leverage location-based services Popular Location-Based Social Networks Britekite is ranked as the most popular location-based social network with 5.9 million registered users as of 2010 With 4.0 million registered users, Loopt is considered the world s 2 nd most popular social location network Foursquare had 3.6 million users as of 2010, making it the 4 th most popular social location network Copyright 2011 by Research and Management Page 9

10 Location-Based Ads Location-Based Ad Revenues Are Expected to Soar by 2015 In 2008, only $86 million of total mobile ad revenues was allocated toward location-based advertising (10% share) Last year, location-based ad revenues increased to $588 million, consuming 18.5% of total mobile ad revenues By 2015, marketers are expected to spend $6.2 billion on locationbased advertising (35% share of total mobile ad revenues) A Third of Mobile Phone Users Show Interest in Location-Based Ads According to a study conducted by Oracle and released by emarketer, 33% of mobile phone users worldwide admit they would like to receive relevant content based on their location 23% of respondents are still unsure about how they feel regarding this capability Copyright 2011 by Research and Management Page 10

11 Mobile Social Media Smartphone Users Are Visiting Mobile Social Media Sites Daily 56% of Apple users access social media sites on their mobile devices on a daily basis Meanwhile 52% of Android phone users visit social media sites on their mobile phones daily Popular Social Media Activities Conducted on a Mobile Device 63% of mobile social media users worldwide send messages to their friends using their devices 62% check their friends social media statuses, while 57% update their own statuses using a device Looking at photos or videos is a popular mobile social media activity according to 40% of users Checking in their location was deemed popular to 9% of users Interestingly, 17% admitted location check-ins is something they would like to do, providing an opportunity for businesses to leverage location-based services Copyright 2011 by Research and Management Page 11

12 QR Codes (2D Barcodes) Worldwide Mobile Barcode Scanning Grows More worldwide mobile phone users are scanning QR codes (also known as 2D barcodes) in 2011 compared to last year In Q2 2010, mobile barcode scanning around the world reached an index of 194 This number increased significantly in just one year to 1,143 index by Q Demographic Profile of a Mobile Phone User Who Scans Barcodes When it comes to the profile of those who scan QR codes, 40% are female while 60% are male 33% of barcode scanners are between the ages of 25-34, and 30% are between QR code scanners within the age bracket make up 18% of all phone users who scan barcodes In terms of income, 41% of QR code scanners make under $50K a year, while 34% make anywhere between $50K-$100K Copyright 2011 by Research and Management Page 12

13 M-Commerce More People Worldwide Are Making Payments on Their Mobile Devices In 2011, 104 million people worldwide made a mobile payment on their device In 2016, mobile payment users is expected to increase to 750 million people Mobile Payment Transactions Will Increase This year, $150 billion will be transmitted through mobile payment transactions worldwide Experts predict that by 2016, mobile payment transactions will increase to $556 billion Mobile Payment Values Worldwide by Region Europe, Middle East and Africa take a 40% share of total mobile payment transaction values worldwide ($99 billion in 2011) Mobile payments in Asia-Pacific will reach $84 billion this year, while North American mobile payments will reach $59 billion Copyright 2011 by Research and Management Page 13

14 Mobile Apps More Mobile Apps Will Be Downloaded by 2015 Last year, mobile app downloads worldwide reached 10.7 billion, but this number is projected to increase as smartphone apps grow in popularity By 2015, mobile app downloads are expected to reach approximately billion How Mobile App Users Learn About New Apps 53.0% of mobile app users worldwide said they discover apps by searching online 21.6% said they learn about new apps in the app stores, while 8.8% discover apps through recommendations made by their friends 7.3% of respondents learn about apps through mobile advertising, and 5.8% discover new apps via social media Other ways that mobile app users worldwide discover apps include newsletters and TV (2.0% and 1.6% respectively) Copyright 2011 by Research and Management Page 14

15 Mobile Apps Types of Apps That People Find Most Useful 65.7% of worldwide app users find that games are most useful for them to download, while 64.3% said the same for social networking apps Apps that provide entertainment were deemed most useful to 55.3% of worldwide app users Meanwhile, instant messaging/sms apps are considered useful to 49% of users worldwide Other useful apps mentioned in the study include: music, security, news, weather, travel and shopping apps How Often People Use Apps From Brands 6.6% of app users worldwide said they use apps provided to them by brands very often On the other hand, 22.4% said they use brand-provided apps often 27.2% of app users said they use apps from brands at a frequency that is no difference from other apps they have downloaded Copyright 2011 by Research and Management Page 15

16 ABOUT WSI WSI leads the global Internet industry offering best of breed digital marketing solutions to suit the needs of multiple industries. The company has the world s largest Internet Consultants network across 80 countries with its head office in Toronto, Canada. WSI Consultants have helped thousands of businesses realize their online marketing potential. By using innovative Internet technologies and advanced digital marketing strategies, businesses can have a WSI Digital Marketing Plan tailored to their individual needs to elevate their Internet presence and profitability to new levels. With the support and cooperation of its customers, franchise network, employees, suppliers and charitable organizations, WSI aims to help make child poverty history through its global outreach program ( For more information about WSI s offerings and business opportunities, please visit our website at The information herein is the property of Research and Management Corporate (RAM). Each WSI franchise office is an independently owned and operated business RAM. All rights reserved.

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