comscore Mobile Advisor

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1 comscore Mobile Advisor Italy February 2013 comscore, Inc. Proprietary.

2 Agenda Smartphone Devices Overview Mobile Internet and Applications Connected Devices Mobile Advertising comscore, Inc. Proprietary. 2

3 The Italian Mobile Universe Overview Total Italian Mobile Universe: 48,000,000 Mobile subscribers age 13+ with primary handset Operator Share Other Operator 5,4% OEM Share Sony ; 2,4% BlackBerry; 2,3% HTC; 2,0% Motorola; 3,2% 3 9,2% Vodafone 27,0% LG ; 5,6% Other OEM ; 7,1% Nokia; 34,5% Wind 24,1% Apple; 9,0% TIM 34,3% Samsung; 34,0% 3

4 % Newly Acquired Devices % Total Market Italian Smartphone Ownership Continues to Rise 45,4% 45,5% Italy Smartphone Penetration 49,7% 51,9% 54,6% In February 2013, 26.2 million people in Italy aged 13 and older owned a Smartphone, representing 54.6% of the mobile population. The total Smartphone audience increased by 20% year-on-year. feb-12 mag-12 ago-12 nov-12 feb-13 Newly Acquired Devices by Type 43,9% 35,2% 34,4% 30,6% 30,3% 56,1% 64,8% 65,6% 69,4% 69,7% feb-12 mag-12 ago-12 nov-12 feb-13 Smartphone Non-Smartphone Smartphones even accounted for almost 70% of all newly acquired devices in February That s a 13.6 percentage points increase since February

5 % Smartphone Installed Base Android Continues to Extend Smartphone Share in Italy Google s Android platform share grew rapidly over the past year, driven mainly by the proliferation of Android devices manufactured by different OEMs (particularly Samsung) and the wide availability of such devices across operators. In the past year, Android increased its market share to 43.0%. 100% 90% 80% 70% Smartphone OS Share 22,5% 43,0% Google Symbian Symbian device share continues to decline. Only 26.2% of Smartphones were Symbian phones in February Apple s share stayed relatively unchanged. Microsoft device market share increased slightly to 8.3%. 60% 50% 40% 30% 20% 47,1% 26,2% 16,0% 16,5% Apple Microsoft BlackBerry Blackberry handsets accounted for 4.2% of all Smartphones and lost 1 percentage point. 10% 0% 7,4% 8,3% 5,2% 1,9% 4,2% 1,8% February 2012 February 2013 Other OS 5

6 Over Half of Newly Acquired Android Devices are Samsung Phones In February 2013, 69.7% of newly acquired phones were Smartphones. Of the acquired Smartphones, Apple s iphone accounted for 19.9%, while 54.4% were Android devices. Microsoft Windows phones accounted for around 15.1%, while Symbian devices made up 7.1% of newly acquired Smartphones. Looking at the OEM split of newly acquired Android phones, Samsung takes away a 68.2% share. Symbian; 7,1% Newly Acquired Devices by Platform BlackBerry; 2,5% Apple ; 19,9% Microsoft; 15,1% Google, 54.4% Samsung, 68.2% LG, 10.2% Sony, 6.4% HTC, 2.9% Other OEM, 12.4% 6

7 Italian Plan Types Prepaid vs. Postpaid 2,6% 11,3% 5,5% 19,1% 4,2% 15,6% Payment Plan Types 75,4% 80,2% 86,1% 19.1% of the Italian Smartphone audience had a postpaid plan in February 2013, above the average for total mobile audience (15.6%). Feature phone users showed a much higher propensity to have prepaid payment plans. Corporate account Postpaid Prepaid Responsible for Payment 80,0% 72,7% 76,0% 13,2% 6,2% 14,8% 11,8% 14,1% 9,3% Smartphone owners are more likely to have another family member pay for their phone bill than feature phone owners. 80% of Non- Smartphone owners pay their bill themselves. Self-pay Other family member responsible Employer pays (directly or re-imbursement) 7

8 Top 5 Prepaid and Postpaid Smartphones (Installed Base >100k ) Top 5 Smartphones Prepaid Top 5 Smartphones Postpaid Apple iphone 4 4.4% Reach among all Smartphone owners with prepaid payment plan 10.7% Reach among all Smartphone owners with postpaid payment plan Apple iphone 4 Samsung Galaxy S II % 8.0% Apple iphone 4S Samsung Galaxy S III i % 6.4% Samsung Galaxy S II 9100 Nokia 5800 XpressMusic 3.1% 5.9% Samsung Galaxy S III i9300 Apple iphone 4S 3.1% 3.4% Apple iphone 5 8

9 USAGE MONTHLY PAYMENT TIER HHI (PRE-TAX) AGE & GENDER Key Characteristics of iphone and Android OS Phone Owners The gender split for Android OS users is slightly more balanced than the split for iphone owners. iphone owners are 4% more likely to be male than Android OS phone owners. iphones are more prominent among the high household income segments. On average, iphone owners are more likely to have a higher monthly phone bill. SMS usage is similar, but usage of services like instant messaging, , music, social networking and video/tv is higher for iphone owners. INDEX (Apple to Android) MALE 56.8% 54.7% 104 FEMALE 43.2% 45.3% % 9.3% % 12.6% % 20.8% % 21.8% % 16.4% % 19.2% 86 UNDER 20K 24.7% 30.7% 81 20K - UNDER 40K 43.5% 44.3% 98 40K - UNDER 65K 20.2% 17.5% K - UNDER 85K 6.8% 4.7% K - UNDER 105K 2.5% 2.2% K+ 2.4% 0.6% OR LESS 25.7% 43.8% 59 BETWEEN 16 AND % 33.7% 100 BETWEEN 31 AND % 11.9% 183 BETWEEN 51 AND % 4.3% 149 BETWEEN 66 AND % 2.4% 188 BETWEEN 91 AND % 1.1% 250 MORE THAN % 1.3% 211 USED APPLICATION 87.2% 79.7% 109 USED BROWSER 86.0% 74.9% 115 SENT SMS 87.0% 87.0% 100 USED IM 71.7% 61.4% 117 USED (WORK OR PERSONAL) 72.9% 61.8% 118 LISTENED TO MUSIC 51.3% 43.6% 118 ACCESSED SOCIAL NETWORKING / BLOG 64.4% 54.7% 118 WATCHED TV AND/OR VIDEO 51.7% 39.1% 132 9

10 # Smartphones (000) Installed Base of NFC Enabled Smartphones on the Rise Installed Base of NFC- Capabale Phones +391% YoY NFC-Capable Devices by OEM BlackBerry 5,5% Other OEM 8,3% LG 5,2% Nokia 12,8% Sony 2,5% HTC 1,8% Samsung 64,0% Since February 2012, there has been a significant rise (391% year-on-year) in NFC enabled devices. More than 3.1 million (12.1%) Smartphones have NFC chips. Samsung takes the largest share of the Italian NFC market with 64.0%. Nokia devices accounted for 12.8% of all NFC enabled Smartphones, followed by BlackBerry with 5.5%. 10

11 Agenda Smartphone Devices Overview Mobile Internet and Applications Connected Devices Mobile Advertising comscore, Inc. Proprietary. 11

12 % Total Mobile Audience More Than Half of Italian Phone Owners Use Mobile Media Italy Mobile Market Segments 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 12,4% 9,8% 34,5% 44,1% 55,7% 43,5% February 2012 February 2013 Just Voice SMS (and not mobile media) Mobile Media 55.7% of the total Italian mobile audience now uses Mobile Media. The Mobile Media population has grown 28% year-on-year to more than 26.7 million people in February The user group of just voice declined by 21%, while SMS (and not mobile media) shrunk by 22% year-on-year. Mobile Media User = Used browser, application, native , stream or download music and broadcast or on-demand video (does not include SMS) 12

13 Usage of Instant Messaging Services Shows Strongest Growth of Italian Smartphone Usage by Category Usage of instant messaging services showed the strongest increase on Smartphones, with a 111% year-on-year growth and more than 7.2 million additional users. Social networking s with check-in services also increased in popularity among the Italian Smartphone audience: a 75.5% growth. More and more Italian Smartphone owners are getting into online retail. The audience accessing online retail sites or apps increased by 75% to more than 4.6 Million. Top 10 Smartphone Usage Categories for Growth INSTANT MESSAGING SOCIAL NETWORKING W. CHECK IN SERVICE ONLINE RETAIL SEARCH SHOPPING GUIDES GAMING INFORMATION ENTERTAINMENT NEWSTIPS WEATHER DIGITAL BOOKS / MAGAZINES ELECTRONIC PAYMENTS %YoY Growth % % % +65.2% % % % % % % # Smartphone Owners (000) 13

14 Classifieds Most Popular Usage Category of Financial Services and Retail / E-Commerce Genres Financial and retail / e-commerce related services belong to the most popular usage categories accessed by Italian Smartphone owners. 21% of Smartphone owners accessed classifieds sites and apps on mobile in February 2013, while 18% accessed online retail. Around 17% made use of mobile electronic payments, while 16.7% accessed their bank accounts. classifieds online retail deal-a-day shopping guides electronic payments bank accounts auction sites travel service credit cards automotive services insurance services stock trading Financial Services and Retail / E-Commerce 8,0% 6,9% 8,8% 14,5% 14,0% 14,0% 17,7% 17,7% 17,4% 17,4% 16,7% 20,9% 0,0% 5,0% 10,0% 15,0% 20,0% 25,0% % Smartphone Owners 14

15 % Accessed Mobile Banking with Smartphone 17% of Italian Smartphone Owners Are Mobile Bankers 45,0% 40,0% 35,0% 30,0% 25,0% 20,0% 15,0% 10,0% 5,0% 0,0% Frequency of Accessing Bank Accounts 22,7% 36,3% 41,0% Almost every day At least once each week Once to three times throughout the month 4.4 million Smartphone owners accessed their bank account on their mobile phone at least once in February This represents 16.7% of the total Italian Smartphone audience. 22.7% of people accessing mobile banking undertook this almost every day in February 2013, while 36.3% accessed their bank accounts at least once each week in the month. 15

16 U.S. Smartphone Owners Most Active Mobile Bankers (December 2012) 38.0% of Smartphone owners accessed mobile banking 28.3% 33.1% 21.6% 30.9% 16.8% 28.5% 15.9% Source: MobiLens, 3 mo. avg. ending December 2012* (*with the exception of Canada -1 month data comscore, Inc. Proprietary. December 2012), Country: US, N= 31,365, EU5, N= 67,716, JP, N=12,434, CA, N= 5,432 16

17 Retail Showrooming is Becoming Increasingly Standard Behavior for Smartphone Shoppers in Store 51.4% of all Italian Smartphone owners have performed at least one of the shopping activities analyzed while they were in a physical retail store. Taking a picture of a product is the most common activity while 5.5% have even purchased goods or services on-device while in a store. Activities Performed in Retail Store with Smartphone Took picture of a product Texted or called friends/family about a product Sent picture of product to family/friends Scanned a product barcode 16,5% 30,2% 25,8% 53,2% 51.4% of Italian Smartphone owners use their phone for shopping activities while in a retail store Compared product prices Found coupons or deals Found store location Researched product features Purchased goods or services (online) Checked product availability 15,8% 12,4% 12,3% 7,6% 5,5% 5,3% 0,0% 10,0% 20,0% 30,0% 40,0% 50,0% 60,0% % Performed Shopping Activity instore with Smartphone 17

18 % Made Purchase with Smartphone 15% Made On-Device Purchases with Smartphone in February % 50,0% 45,0% 40,0% 35,0% 30,0% 25,0% 20,0% 15,0% 10,0% 5,0% 0,0% Frequency of On-Device Purchase 19,3% 34,0% 46,7% Almost every day At least once each week Once to three times throughout the month For many Italian phone owners, their Smartphone has become an important shopping medium. In February 2013, more than 3.9 million (15.2%) made a purchase using their Smartphone. 19.3% of those mobile shoppers made an on-device purchase almost every day in February 2013, while 34.0% did so at least once each week in the month. 18

19 % Smartphone OS iphone - The Mobile Shoppers Best Friend iphone owners over-index not only for on-device purchases within the month, they are also making purchases with their phone more frequently than all other Smartphone platforms. 25.5% of all iphone owners made a purchase on their phone compared to 16.5% of Android phone owners. 4.5% of iphone owners purchased almost every day throughout the month of February ,0% 20,0% 15,0% 10,0% 5,0% 0,0% On-Device Purchase by Smartphone OS 4,5% 3,2% 3,0% 1,8% Almost every day 9,2% 6,8% 5,3% At least once each week 11,8% 8,2% 7,5% 2,5% 2,9% Once to three times throughout the month 25,5% 17,6% 16,5% 7,2% Ever in month Apple Microsoft Google Symbian Smartphone Average 19

20 % Smartphone Owner Over a Third of Italian Smartphone Owners Use Their Phone to Watch Videos or TV 40,0% 35,0% 30,0% 25,0% 20,0% 15,0% 10,0% 5,0% 0,0% Video and/or TV Usage on Smartphones 34,3% 32,6% 16,1% 10,9% Total TV and/or Video Web-based Videos TV (live and/or on-demand) Paid TV In February 2013, 34% of Italian Smartphone Owners watched videos or TV on their device. 32.6% watched web-based videos on sites like Facebook, Daily Motion or YouTube. 16.1% watched live or on-demand TV from broadcast and cable TV channels, while 10.9% watched paid TV services. 20

21 HHI (pre-tax) AGE GENDER Demographic Profile of Paid Video Service Users Comparing the average Smartphone video/tv user with the paid video service user, some interesting differences emerge: Phone owners who watch paid for videos are 16% more likely to be male. Paid video service users are overindexing on the age group and are less likely to belong to the young or more senior audience. Paid video service users are more likely to belong to the higher household income group. Average Video User Paid Video User Index (paid video user to average video user) Male 56.7% 65.7% 116 Female 43.3% 34.3% % 9.4% % 17.5% % 29.6% % 23.2% % 13.8% % 6.4% 57 Under 20k 28.4% 22.9% 81 20k - Under 40k 44.2% 42.1% 95 40k - Under 65k 18.8% 24.2% k - Under 85k 5.3% 6.6% k+ 3.2% 4.2%

22 Agenda Smartphone Devices Overview Mobile Internet and Applications Connected Devices Mobile Advertising comscore, Inc. Proprietary. 22

23 Multi-Device Ownership: 23% of the Italian Smartphone Audience Own Other Connected Devices 6.3% also own ereaders 17.3% also own tablets 2.2% also own other handhelds like portable gaming devices In February 2013, 22.9% of Smartphone users also owned other connected devices like tablets, ereaders, or other handhelds. Tablets, which were owned by 17% of the Italian Smartphone audience, have spurred the rise of the Digital Omnivore Connected devices are changing how and where consumers seek information, communicate, and engage online. comscore, Inc. Proprietary. Source: MobiLens, 1 month snapshot February 2013, Italy, N=4,144 23

24 # Devices (000) Tablet Ownership Almost Doubles in One Year Tablet Usage Among Italian Smartphone Audience +91% YoY 0 feb-12 mar-12 apr-12 mag-12 giu-12 lug-12 ago-12 set-12 ott-12 nov-12 dic-12 gen-13 feb-13 In February 2012, 11% of Italian Smartphone owners also owned tablets devices. A year later in February 2013, that figure increased to 17% of Smartphone users. Tablet ownership among the Smartphone audience increased by 91% year-on-year. comscore, Inc. Proprietary. Source: MobiLens, 1 month snapshot February 2013, Italy, N=4,144 24

25 Demographic Split of Smartphone & Tablet Users Tablet Usage by Gender (among Smartphone audience) Tablet Usage by Age (among Smartphone audience) Google OS 51,7% 48,3% 16,3% 18,7% 26,7% 29,8% 12,8% 18,5% Apple OS 61,6% 38,4% 23,6% 21,7% Male Female 9,5% 13,0% 5,2% 4,2% Apple OS Google OS Android tablets are showing a relatively even gender split, compared to Apple s ipad, which is used by over 60% male users. Android tablets have a higher percentage of more senior users than ipad tablets, while the young age groups show a fairly neutral distribution. comscore, Inc. Proprietary. Source: MobiLens, 1 month snapshot February 2013, Italy, N=4,144 25

26 Agenda Smartphone Devices Overview Mobile Internet and Applications Connected Devices Mobile Advertising comscore, Inc. Proprietary. 26

27 18-24 Year Olds Have Best Recall of Mobile Web or App Advertisement Recall of Web/App Advertisements Aged ,9% Aged ,7% Aged ,0% Aged ,2% Aged ,8% Aged Smartphone Average 25,9% 25,7% 0,0% 5,0% 10,0% 15,0% 20,0% 25,0% 30,0% 35,0% 40,0% % Group 25.7% of Italian Smartphone owners recall seeing advertisements while browsing the mobile web or using applications on their phone in February Of all year old Smartphone owners, 36.8% remembered seeing ads. This age group could therefore be an ideal target group for mobile advertising. 27

28 18-24 Year Old Smartphone Owners in Focus 4.3 Million year olds 50.0% 50.0% 68.2% 31.8% Of all 4.3million year olds, 68.2% own a Smartphone. The gender balance is even. Gender Balance Device Type Split Received coupon/offer/deal (SN*) Clicked on advertisement (SN*) Read posts from organizations/brands/events (SN*) Saw in-game ads Scanned QR/bar code year old Smartphone Owners % Group 10,9% 17,8% 18,7% 16,9% 16,7% 27,2% 25,6% 28,3% 31,6% % age group ,3% % Smartphone Average year old Smartphone owners are also more likely to take part in other marketing and advertising related activities than the average Smartphone owner. *SN = social networking, relates to an activity while using social networks 28

29 Average Purchase Consideration Factor Brand and Cost of Data Plan More Important Considerations for the Over 55s Than Year Olds When Choosing a Phone 9,00 Smartphone Purchase Consideration 8,50 8,00 7,50 7,00 6,50 6,00 Phone operating system Selection of apps available for my phone model Music and Video Capabilities Social Networking Features Network Quality of Mobile Service Provider Price of the phone (after any rebates and other incentives) Cost of the data plan specifically Overall cost of the monthly service Recommen ded by Family/Frien d Brand name of the phone ,04 7,77 7,62 7,57 7,50 7,35 6,94 6,83 6,82 6, ,13 7,98 7,63 7,49 7,79 7,52 7,46 7,08 6,51 7, year old Smartphone owners as well as the over 55 year olds consider the phone operating system to be the most important determinant when deciding what device to buy. Recommendations of friends are less important for the over 55s, while year olds are less concerned with the cost of data plans and the brand name of the phone. 29

30 Thank you! For more information, please contact your comscore Account Manager or send an to comscore, Inc. Proprietary.

31 Appendix comscore MobiLens comscore MobiLens provides market-wide insight into mobile digital media consumption, brand-level audience metrics, and details of device ownership and technology penetration. Using proprietary data collection methods, we survey nationally representative samples of mobile subscribers age 13+ in the U.S., UK, France, Germany, Spain, Italy, Canada, and Japan. The MobiLens sample is substantial enough to provide projected data for sub-segments as small as 1 percent of mobile subscribers. The MobiLens sampling and survey methods undergo extensive analysis and market validation including comparisons to known network operator market shares, leading handset model shares, downloading activity, and other usage metrics. For more information, please visit: MMX Multi-Platform (beta) MMX Multi-Platform offers comprehensive reporting on more than 300,000 digital media entities, including their un-duplicated audience size, demographic composition, engagement, performance within key user segments, and behavioral trends. All of these metrics can be compared across digital media platforms and be used to understand incremental activity coming from each platform. MMX Multi-Platform leverages comscore s existing digital media planning currency and expands its benefits to provide important multi-platform insights that better reflect the state of digital consumer behavior today. For more information, please visit comscore, Inc. Proprietary. 31

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