emarketer US Mobile Time and Activities StatPack

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1 July 2016 emarketer US Mobile Time and Activities StatPack Presented by

2 Overview The emarketer US Mobile Time and Activities StatPack contains charts, key stats, trends and forecasts that you can keep at your fingertips all year long. The StatPack is broken out into three sections: Time spent with mobile, by device, channel and activity Leading activities conducted on smartphones Leading activities conducted on tablets

3 Time spent with mobile is ticking upward while time with other media is dipping TV 4:16 4:12 Desktop/Laptop Smartphone (nonvoice) Tablet Radio Print 2:49 2:47 2:28 2:31 2:22 2:24 1:34 1:32 0:54 0:53 US consumers who use both smartphones and tablets will likely spend more time per day using their mobile devices than watching TV, listening to radio or reading print media Average Time Spent per Day by US Adult Users of Each Major Medium (hrs:mins)

4 Time spent with media defined Time Spent with Media: Time spent with each medium includes all time spent with that medium, regardless of multitasking. For example, one hour of using a laptop while watching TV is counted as both one hour of TV and one hour of desktop/laptop usage. Smartphone Tablet Desktop/Laptop Traditional Media

5 Mobile time is mostly app time 5:16 Apps 3:15 3:23 App Time: Entertainment and social sharing activities both immersive activities are frequently conducted via apps on both smartphones and tablets, which drives up time spent with apps. Mobile Web 0:51 0:52 0: Average Time Spent per Day with Mobile Apps vs. Mobile Web by US Adult Smartphone and Tablet Users (hrs:mins) Mobile Web Time: Mobile browser sessions are frequent but fleeting.

6 Smartphone users are more engaged with apps than tablet users Smartphone time 82% App 18% Web Tablet time 76% App 24% Web 0% 100% Share of Average Time Spent per Day Using Apps vs. Mobile Browser Among US Smartphone and Tablet Users, 2016 (% of daily mobile time total)

7 All this mobile time is spent conducting a handful of activities The most popular activities differ by device group

8 Apps, search and social are the most popular activities for US smartphone users App Users 95.0% App Installers 92.8% Searchers 85.4% Social Networkers 77.8% Video Viewers 72.9% Gamers Messaging App Users Music Listeners 54.0% 62.0% 72.8% 0.0% 50.0% 100.0% Activities Conducted by US Smartphone Users of All Ages, 2016 (% of total smartphone users)

9 Activities defined Mobile App Users: Mobile device users of any age who have used at least one mobile app on their mobile device at least once per month; includes smartphone and tablet app users. Mobile App Installers: Mobile device users of any age who have installed at least one mobile app on their mobile device during the calendar year; includes paid and free apps; includes smartphone and tablet users. Mobile Search Users: Mobile phone users of any age who search on mobile phones at least once per month via mobile browser or app. Mobile Social Networkers: Mobile device users of any age who have used at least one mobile app on their mobile device at least once per month; includes smartphone and tablet app users.

10 A majority of the US population will search the internet via a smartphone in % % In 2019, nearly two-thirds of the US population will regularly conduct searches on their smartphone US Smartphone Search Users (% of population) 64.9% 0% 0 US Smartphone Search Users (millions) The number of US mobile search users continues to rise. Increasingly, smartphone users are turning to specialized apps like Yelp or Amazon to find information or products.

11 Social networking is predominantly mobile 86.8% of US social networkers will use a smartphone to access social networks in 2016 Share of Social Networkers that Access Social Networks on a Smartphone, 2016 (% of social networkers)

12 Growth in the number of US smartphone social networkers will level off in % U.S. Population 10% 7.8% US Smartphone Social Networkers (millions) In 2019, 55% of the US population will regularly access social networks on a smartphone. 0% 2.9% YOY Growth in US Smartphone Social Network Users (YOY growth %) The number of US smartphone social network users will increase at single-digit rates each year, but slow considerably in 2019.

13 Instagram has the highest rate of mobile use among social networks in the US Instagram Twitter Facebook 100% 99% 99% 100% 93.4% 100% 90.7% 89.9% 85.6% 80% Instagram Smartphone User Share (% of total US Instagram users) 80% Twitter Smartphone User Share (% of total US Twitter users) 80% Facebook Smartphone User Share (% of total US Facebook users) Instagram and Twitter have smaller user bases, and mobile users comprise a larger share of total users. Another reason Twitter and Instagram are more mobile is that the design of both platforms is inherently mobile friendly. Facebook s user base is mostly mobile, but not as mobile as Instagram or Twitter.

14 Facebook has the largest number of US smartphone users Facebook Instagram Twitter Facebook US Smartphone Users (millions) Instagram US Smartphone Users (millions) Twitter US Smartphone Users (millions)

15 Activities defined Mobile Gamers: Mobile users of any age who play games on mobile phones or a tablet at least once per month; excludes preinstalled games on feature phones. Mobile Messaging App Users: Mobile phone users of any age who use an over-the-top (OTT) messaging app via mobile phone (browser or app) at least once per month. An OTT messaging app provides private one-to-one or one-tomany communication between registered users (via mobile phone number or user ID), where messages and calls (voice or video) are then transmitted via data connections and the mobile web. Mobile Video Viewers: Mobile users of any age who watch streaming or downloaded video content via mobile phone or tablet (browser or app) at least once per month. Mobile Music Listeners: Mobile users of any age who listen to music on mobile phones or tablet via direct download or live stream at least once per month; excludes sideloaded music, ringtones and ringback tones.

16 In 2016, US smartphone gamers will grow by double digits, then slow in % % Year-over-year growth rates will taper off going forward as the base of smartphone users expands % 5.3% 0 US Smartphone Gamers (millions) 0% US Smartphone Gamers (YOY growth %) Over the next four years, 34 million people will join the US smartphone gaming audience, which will total just under 185 million individuals by the end of 2019.

17 US mobile messaging app users will grow by double-digit percentages through % % % 9.6% Growth is being fueled by consumer interest in social sharing on a one-to-one or one-to-few basis, rather than broadcasting updates to a large network 0% Mobile Messaging App Users (YOY growth %) 0 Mobile Messaging App Users (millions) Adoption of messaging apps by the youngest demographic groups will continue to drive the expansion of the mobile messaging audience in the US.

18 The majority of US smartphone users will continue to use messaging apps 2016: 62.1% 2019: 74.7% Share of US Smartphone Users Who Use Messaging Apps, 2016 and 2019 (% of smartphone users)

19 Social sharing is driving up the number of US smartphone video viewers 14% US Smartphone Video Viewers (millions) The rising number of videos shared via social networks and mobile messaging apps is fueling growth of the US smartphone video-viewing audience. 7% 8.9% US Smartphone Video Viewers (YOY growth %) 3.6% 0% Growth rates will naturally decline as the US smartphone video-viewing audience expands.

20 Most US digital video viewers watch videos on a smartphone 70.8% of US digital video viewers will regularly watch videos on a smartphone in 2016 Share of US Digital Video Viewers Who Watch Videos on a Smartphone, 2016 (% of digital video viewers)

21 US smartphone music listeners continue to rise due to music streaming apps % 12.3% The smartphone music listening audience will grow steadily over the next three years. 7% 4.8% 0% US Smartphone Music Listeners (YOY Growth %) 0 US Smartphone Music Listeners (millions) This growth will be largely due to the growing popularity of music streaming apps like Pandora, Spotify and itunes.

22 The majority of US digital music listeners regularly tune in using their smartphone 62.1% of US digital music listeners will regularly listen to music on a smartphone in 2016 Share of US Digital Music Listeners Who Listen to Music on a Smartphone, 2016 (% of digital music listeners)

23 Activities defined Mobile Shoppers: Mobile device users ages 14+ who have used their mobile device to browse, research or compare products via web browser or mobile app during the calendar year, but have not necessarily made a purchase via mobile device; includes smartphone and tablet users. Mobile Buyers: Mobile device users ages 14+ who have used their mobile device to make at least one purchase via web browser or mobile app during the calendar year; includes smartphones and tablets. App Buyers: Mobile device users ages 14+ who have purchased at least one app via an app store for use on their mobile device during the calendar year; excludes virtual goods and subscriptions; includes smartphones and tablets. Proximity Mobile Payment Users: Proximity mobile payment users are mobile phone users who have made at least one proximity mobile payment transaction in the past six months. A proximity mobile payment is a point-of-sale (POS) transaction made by using a mobile device as a payment method. Includes scanning, tapping, swiping or checking in with a mobile device at the POS to complete transaction; excludes purchases of digital goods on mobile devices, purchases made remotely on mobile devices that are delivered later on and transactions made via tablets.

24 8 out of 10 US smartphone users shop on their phone, but less than half buy something Shoppers 100% 84.0% 86.0% Buyers App Buyers Proximity Mobile Payment Users 44.5% 46.2% 35.5% 35.3% 19.0% 27.0% 0% Less than one half of US smartphone users will buy products or apps through their phone. Roughly a quarter will use their phone to pay for a product or service in a store (a proximity mobile payment). Activities Conducted by US Smartphone Users (% of smartphone users)

25 Smartphone shoppers are on the rise as consumers comfort with mobile grows 14% The million US smartphone shoppers in 2016 will represent 78.5% of all US digital shoppers % 7% US Shoppers on Smartphones (YOY growth %) 4.5% 0% 0 US Shoppers on Smartphones (millions) Double-digit growth in 2016 will be the result of consumers becoming more comfortable with mobile shopping. Growth will slow as the audience size expands.

26 US smartphone buyers will increase by double-digit rates in % 12.2% 7% 4.9% 0% US Buyers on Smartphones (YOY growth %) Growth Drivers: Smartphones with large screens are making it easier for consumers to shop and to buy. Android Pay and Apple Pay are facilitating in-app purchasing. Buy buttons are popping up on many major social media platforms US Buyers on Smartphones (millions) Soon, more than 100 million US consumers will regularly buy products using a smartphone.

27 Activities defined Mobile Coupon Users: Mobile device users ages 18+ who used their device to redeem coupon/code obtained from app, mobile internet, QR code/other mobile barcode or SMS for online or offline shopping at least once during the calendar year; includes group-buying coupons purchased via mobile device. Includes smartphones and tablets. QR and Barcode Users: Mobile phone users ages 18+ who use their phone to scan a barcode at least once during the calendar year.

28 A majority of US smartphone users will use mobile coupons; fewer will scan barcodes Mobile Coupon Users 53.8% QR and Barcode Users 30.0% 0% 100% Share of Mobile Coupon and QR/Barcode Users Among US Adult Smartphone Users, 2016 (% of adult smartphone users)

29 Activities defined Mobile Travel Researchers: Mobile device users ages 18+ who researched travel information prior to a trip via mobile device at least once during the calendar year but did not necessarily book; includes tablets and smartphones. Mobile Travel Bookers: Mobile device users ages 18+ who booked travel via mobile device at least once during the calendar year; includes smartphones and tablets. Mobile Banking Users: Mobile users ages 18+ who access their bank, credit union, credit card or brokerage account via mobile browser, app or SMS using a mobile device at least once per month; excludes virtual wallet services (e.g., PayPal, Google Wallet); includes smartphones and tablets.

30 More US smartphone users are also turning to their phone to research and book travel 140 Smartphone Travel Researchers Now In 2016, one-half of US smartphone users will use their phone to make travel plans, and one-quarter will book a trip on their phone Smartphone Travel Bookers 68.4 Soon Roughly one-third of US smartphone users will book travel using a smartphone in US Smartphone Travel Researchers and Travel Buyers (millions)

31 The number of US mobile payment users will skyrocket in 2016 (albeit from a small base) % 61.8% % % 18.6% 0 US Proximity Mobile Payment Users (millions) Just under one-fifth of US smartphone users will use their phone to pay for goods at the point of sale in In 2019, nearly one-third of US smartphone users will do so. 0% US Proximity Mobile Payment Users (YOY growth %) Rapid adoption is expected in 2016, and double-digit growth is projected through 2019.

32 Banking by smartphone has become a habit for over 100 million US consumers 75% % 60.5% % 75 25% Expect more than half of US adult smartphone users to bank via smartphone at least once per month in Smartphone Bankers (millions) 0% Smartphone Bankers (% of US adult smartphone users) 2016 will be a milestone year for mobile banking, as the number of US users will top 100 million.

33 Smartphone activities are varied, but tablet activities center around shopping and entertainment

34 Shopping and buying are the most popular activities among US tablet users 100% Tablet Shoppers 90.5% 91.4% Nearly all US tablet users shop with those devices. Tablet Buyers Tablet App Buyers 50% 70.0% 71.0% 43.6% 43.3% More than two-thirds of all US tablet users will regularly make a retail purchase on their device. Almost half of US tablet users will buy apps for their device. 0% Activities Conducted by US Tablet Users Ages 14+ (% of tablet users )

35 Tablet users are more likely than other mobile shoppers to hit the buy button 77.3% of those who shop on a tablet will make a purchase on a tablet US Mobile Buyers on Tablets, 2016 (% of US mobile shoppers on tablets)

36 Most US tablet users hunt for coupons on their tablets 51.2% of US tablet users will regularly use mobile coupons to make purchases Mobile Coupon Users on Tablets, 2019 (% of US adult tablet users)

37 A majority of US tablet users will research travel on their device; fewer will book trips 100 Researching 87.6 Now Just over half of US tablet users (68.4 million) will investigate travel options on a tablet in % of US tablet users (36.6 million) will book a trip via a tablet this year Booking Soon Roughly one-third of US tablet users (51.1. million) will book travel using a smartphone in US Tablet Travel Researchers and Bookers (millions)

38 Tablets are entertainment centers and apps are users main gateways to content App Users 88.5% App Installers 86.1% Gamers 72.5% Social Networkers 69.0% Video Viewers 64.3% Music Listeners 49.2% 0.0% 50.0% 100.0% Activities Conducted by US Tablet Users of All Ages, 2016 (% of total tablet users )

39 More than 40% of the US population will be tablet gamers by % % 41.0% 85 0% US Tablet Gamers (% of population) 0 US Tablet Gamers (millions) More than one-third of the US population will regularly play games on a tablet device annually through 2019.

40 Nearly two-thirds US social networkers connect with friends via tablets % 62.0% 63.5% 0 Tablet Social Networkers (millions) 0% Tablet Social Networkers (% of US social networkers) 115 million tablet users (35.5% of the US population) will regularly access social networks on their tablets in 2016.

41 Just over half of US digital video viewers will watch videos on a tablet % 50.3% 52.7% 0 Tablet Video Viewers (millions) 0% Tablet Video Viewers (% of US digital video viewers) New viewers in the youngest and oldest age groups, as well as expanding content options, will boost the US tablet video-viewing audience.

42 A minority of US digital music listeners will download and stream music on their tablets % % 46.9% 0 Tablet Music Listeners (millions) 0% Tablet Music Listeners (% of US digital music listeners) Popular streaming services such as Pandora and Spotify are driving US growth in music listening on tablets.

43 There remains significant room for growth for tablet banking in the US 100% % 48.8% 0% Tablet Banking Users (% of US adult tablet users) Just under half of US adult tablet users will regularly conduct banking activities on their tablets through US Tablet Banking Users (millions) The number of US tablet bankers will grow steadily but not exceed 75 million before 2020.

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45 Wait there s more! This US Mobile Time and Activities StatPack is one of four sections making up the emarketer US Mobile StatPack available to emarketer PRO customers. The full US Mobile StatPack provides a visual overview of roughly 100 emarketer mobile estimates, including current year and forward-looking estimates for the following: Mobile device usage mobile phones, smartphone, tablets and wearable devices Daily time spent with smartphones and tablets The leading activities conducted on smartphones and tablets emarketer s outlook on mobile spending, including mcommerce, mobile payment transactions and mobile advertising Schedule a personalized demonstration or request a quote today. Go to emarketer.com, call , or

46 Definitions and Methodology Definitions Mobile phone users are individuals of any age who own at least one mobile phone and use the phone(s) at least once per month. Smartphones are any voice handset with an advanced operating system (e.g., Android, BlackBerry, ios, Windows Phone, etc.) and features/capabilities that resemble a PC. Smartphone users are individuals of any age who own at least one smartphone and use the smartphone(s) at least once per month. Tablets are touchscreen devices with a color display ranging from 5 inches to 14 inches, a Wi-Fi connection or mobile data plan and an advanced operating system such as Android, BlackBerry, ios or Windows. Though some have detachable keyboards, touch is the primary interface. Excludes devices with a cellular voice connection. Examples include Amazon Kindle Fire, Apple ipad, Google Nexus 7 or 10, Microsoft Surface and Samsung Galaxy Tab. Tablet users are individuals of any age who use a tablet at least once per month. Methodology Estimates are based on the analysis of survey and traffic data from research firms and regulatory agencies; historical trends; internet and mobile adoption trends; and country-specific demographic and socioeconomic factors. emarketer s forecasts and estimates are based on an analysis of quantitative and qualitative data from research firms, government agencies, media firms and public companies, plus interviews with top executives at publishers, ad buyers and agencies. Data is weighted based on methodology and soundness. Each emarketer forecast fits within the larger matrix of all its forecasts, with the same assumptions and general framework used to project figures in a wide variety of areas. Regular reevaluation of available data means the forecasts reflect the latest business developments, technology trends and economic changes.

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