IAB U.S./China Mobile Data Usage Study
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1 GfK Media & Entertainment GfK Consumer Experiences North America IAB / Mobile Data Usage Study August GfK GfK 2014 IAB Mobile Study August
2 Background & Objectives Background IAB, in partnership with IAB, commissioned GfK to conduct a primary research project examining the role that mobile phones and tablets play in consumers lives in as compared with the United States. Main Objectives of the Research Compare and contrast American and Chinese consumers experiences, attitudes, and behavior patterns across both smartphones and tablets, including What aspect of connectivity to the mobile internet do people value most? When in the course of a typical day are consumers most likely to use mobile data services? What places are consumers most likely to use mobile data services? For mobile video in particular, when and where are consumers most prone to using this media type? GfK 2014 IAB Mobile Study August
3 Study Overview Who? Persons in and United States were screened for age 18+ and weekly+ users of either a smartphone or a tablet and assigned to one of those device quotas Additionally, respondents were targeted in 11 major metro areas * Survey was conducted on a tablet or smartphone, depending on which quota assigned to Full surveys were completed with approximately 500 respondents per country: United States smartphone users; 250 tablet users smartphone users; 250 tablet users data was weighted on age/gender to smartphone and tablet owner benchmarks; no weighting for data When? July 23 rd August 4 th, 2014 How? Via a 6-minute online survey What? Ease of Taking Locations Mobile Demos Survey Use & HH Current Device Characteristics Device Ownership Network Use Device on Most Activities Done TV on Everywhere Device Awareness Reactions to Media Use on Ads on TV Device Authentication Device Everywhere Usage. * Beijing, Shanghai, Guangzhou, Nanjing, Shenyang, Chengdu, Xiamen, Shijiazhuang, Guiyang, Wenzhou, Weihai GfK 2014 IAB Mobile Study August
4 Key Takeaway #1: Mobile contributes to life success in WHAT? Six in ten Chinese smartphone users feel the device makes them more successful in their personal life twice that of American smartphone users; these proportions are also identical among tablet users in each country. Chinese smartphone users react more with ads on the device almost six in ten do so at least once a day triple that of American users. Almost half (43%) of tablet users in interact with ads daily, again higher than the (27%) SO WHAT? The strong role mobile devices play in Chinese consumers achieving personal success, combined with their frequent interaction with digital ads, creates an attractive scenario for marketers Highlight these facts when selling mobile ad placements in Chinese markets NOW WHAT? GfK 2014 IAB Mobile Study August
5 Key Takeaway #2: Mobile media consumption varies by country WHAT? mobile device users consume media on their device more when they get up in the morning than users in, while users do so more after work and right before bed. Chinese users also do media-related activities on their smartphone during their commute and at coffee breaks more than users. American tablet users are twice as likely as to use the device as a second screen while watching TV SO WHAT? Variances exist in when and where mobile device users consume media in both countries due to both lifestyle and transportation system differences. The classic broadcast TV/radio dayparts that seem most affected by mobile are early morning TV in the and drive time in. NOW WHAT? Advertisers should take heed of these nuances in targeting of ads in mobile media. Mobile use in can be paralleled with drive time radio in the Ads could be served in during the commute which would facilitate purchase with an easier diversion to a store or restaurant on the way. GfK 2014 IAB Mobile Study August
6 Key Takeaway #3: Mobile ads inspire video viewing/coupon downloading WHAT? Ads related to something being shopped for are most likely to garner a response from both tablet and smartphone users in both countries, followed by fun ads and ads for their favorite brands. Mobile users in are more likely than users to react to mobile ads overall, as well as for ads related to their daily routines. Common actions in both countries taken as a result of a mobile ad is viewing a video, receiving a coupon or investigating a product/service, especially the latter two in Consumers appear willing to interact with marketing messages, resulting in a number of outcomes... SO WHAT? NOW WHAT? but the key is getting them interested in interacting at the outset. Chinese mobile users are more open to ad interaction and taking action as a result than those from the, but in either case the message must be compelling; it s no surprise that a product or service already being considered for purchase are most likely to elicit a response. GfK 2014 IAB Mobile Study August
7 Key Takeaway #4: Chinese mobile use fills computer gap WHAT? When at home, mobile users in both countries most commonly use the device for communication and web browsing. Shopping is more likely to be done in on both devices than, as are TV related and family activities on smartphones. Americans are more likely to post to social media on a tablet than the Chinese. SO WHAT? Though capable of so many functions in consumers lives, communication and information seeking remain the core functions of mobile device use. Slightly lower levels of PC usage (74% in the US vs 65% in, per Google 1 ) means Chinese consumers need to fill this Internet gap with their mobile devices NOW WHAT? With mobile s substitution for personal computers, the connection to personal success, and their receptivity to ads, Chinese mobile users are excellent targets for mobile digital marketers GfK 2014 IAB Mobile Study August
8 Detailed Findings GfK 2014 IAB Mobile Study August
9 Locations The portability of smartphones results in use both at and away from home. As would be expected, public transportation use is much higher in than in the U.S; and use at work is also higher in Tablet use tends to be more home-centric in both countries, however, cases of out of home use of the device in are higher than in the Locations Used Device in Past 3 Months Device Users Smartphone Tablet At home Home Only 10% Home Only 6% 95% 81% Home Only 41% Home Only 30% 88% 96% While out shopping (at a store, mall, etc.) While in the car 64% 66% 64% 49% 17% 30% 19% 30% At work in a location outside the home 54% 75% 19% 46% While on public transportation (e.g., train, subway, bus, etc.) In other locations out of the home None of the above 1% 0% 26% 34% 76% 59% 11% 14% 6% 0% 37% 35% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% Q2. In the past three months, where have you used your [smartphone] [tablet] to access mobile data services? Base: Device Users (US/) - Smartphone (n=255/252); Tablet (n=250/250). GfK 2014 IAB Mobile Study August 2014 Arrows indicate difference between countries 95% confidence level. 9
10 Attitudes/Behaviors - Smartphone Two times as many Chinese as users feel their device makes them personally and professionally more successful perhaps attributable to more reliance on mobile in due to lower PC penetration More users in feel their smartphone is for entertainment than in the Roughly three quarters of smartphone users in each country never leave home without the device Smartphone Statements That Apply to You Smartphone Users I never leave home without my smartphone 70% 76% My smartphone is an entertainment device 61% 73% My smartphone makes me more efficient My smartphone is the first thing I reach for when I wake up in the morning My smartphone helps me to be more successful in my personal life My smartphone helps me to be more successful at work I feel like my smartphone controls me more than I control it I only use my smartphone when I really have to 6% 14% 10% 8% 13% 31% 30% 45% 50% 50% 58% 62% I only use my smartphone for work 2% 3% My smartphone is disruptive 2% 16% 0% 10% 20% 30% 40% 50% 60% 70% 80% Q11. Which, if any, of the following statements apply to you? Base: Device Users (US/) - Smartphone (n=255/252). GfK 2014 IAB Mobile Study August 2014 Arrows indicate difference between countries 95% confidence level. 10
11 Attitudes/Behaviors - Tablet Similar country differences emerge with tablets twice as many Chinese users feel it aids personal success than American users. Also, more Chinese users feel their table is for entertainment. tablet users are more likely to grab their device when they first wake up, and Chinese more likely to take it with them on the go Tablet Statements That Apply to You Tablet Users I never leave home without my tablet 18% 30% My tablet is an entertainment device My tablet makes me more efficient 41% 45% 73% 84% My tablet is the first thing I reach for when I wake up in the morning My tablet helps me to be more successful in my personal life My tablet helps me to be more successful at work I feel like my tablet controls me more than I control it I only use my tablet when I really have to 6% 12% 5% 22% 15% 10% 16% 32% 34% 60% I only use my tablet for work My tablet is disruptive 2% 3% 5% 18% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Q11. Which, if any, of the following statements apply to you? Base: Device Users (US/) - Tablet (n=250/250). GfK 2014 IAB Mobile Study August 2014 Arrows indicate difference between countries 95% confidence level. 11
12 Activities At Home When at home, smartphone and tablet users in both countries most commonly use the device for communication and web browsing Shopping is more likely to be done in on both devices than, as are TV related and family activities on smartphones. Americans are more likely to post to social media on a tablet than the Chinese Activities Used Device For At Home in Past Month Device Users Smartphone Tablet Send/receive texts/ s Browse the Internet, read news, look up info, etc. Play a game Read social media (e.g. blogs, online forums, ratings and reviews, social networks like, etc.) Do local search/find local info (e.g. local business/service info, check weather, traffic, etc.) Post to social media/network Shopping activity (e.g. compare products, make purchases, etc.) Family/household activity (e.g. meal planning, pay bills, etc.) Activity related to TV and TV watching Do work Other 93% 85% 84% 89% 76% 73% 70% 84% 69% 75% 62% 61% 56% 77% 36% 46% 30% 47% 20% 33% 9% 10% 0% 20% 40% 60% 80% 100% 76% 75% 92% 93% 74% 73% 74% 79% 70% 68% 63% 42% 63% 79% 37% 37% 43% 54% 28% 22% 13% 6% 0% 20% 40% 60% 80% 100% Q3. Which of the following have you done on your [smartphone] [tablet] while at home in the last month? Base: Device Users (US/) - Smartphone (n=255/252); Tablet (n=250/250). GfK 2014 IAB Mobile Study August 2014 Arrows indicate difference between countries 95% confidence level. 12
13 Mobile Advertising GfK 2014 IAB Mobile Study August
14 Ad Interaction Frequency Chinese smartphone users react more with ads on the device almost six in ten do so at least once a day triple that of American users (22%) Tablet users in also tend to interact more with ads, though the differential over users is narrower Frequency of Interaction w/ads on Device in Past Month Device Users Smartphone Tablet Ever Respond (Net) 71% 95% 81% 92% At Least Monthly (Net) 62% 91% 70% 88% At Least Weekly (Net) 52% 86% 64% 80% Once a day or more frequently 22% 59% 27% 43% Never 5% 29% 19% 8% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% Q4. In the past month, how often would you say you typically interact with, tap, view, get more information or respond to an advertisement you see on your [smartphone] [tablet]? Base: Device Users (US/) - Smartphone (n=255/252); Tablet (n=250/250). GfK 2014 IAB Mobile Study August 2014 Arrows indicate difference between countries 95% confidence level. 14
15 Ads Likely to React to - Smartphone Ads related to something being shopped for are most likely to elicit a response from smartphone users in both countries, followed by fun ads and ads for their favorite brands Smartphone users in are more receptive than users to mobile ads overall - especially the aforementioned types - as well as for ads related to daily routines Smartphone Ads Most Likely to Respond to On Smartphone Smartphone Users Ads related to something you are shopping for Ads for coupons related to something you are shopping for Ads that you think are fun Ads related to your favorite brands Ads related to sites you've visited online or an app you use Ads related to recent online purchases Ads related to your age/gender, if you have kids or other demographic information Ads related to your location Ads related to your daily routine Ads related to recent radio/tv viewing Ads based on information you have given about yourself through answering questions or posting on social media None of these 27% 2% Q5. What kinds of ads are you most likely to respond to on your [smartphone] [tablet]? Base: Device Users (US/) - Smartphone (n=255/252) 0% 20% 40% 60% 80% GfK 2014 IAB Mobile Study August 2014 Arrows indicate difference between countries 95% confidence level. 15
16 Ads Likely to React to - Tablet The most effective types of ads on tablets largely mirror that of smartphones in both countries shopping item-related, fun and favorite brands and with the same large differential for over Ads targeting by demographic criteria are reported to be especially ineffective by tablet users Tablet Ads Most Likely to Respond to On Tablet Tablet Users Ads related to something you are shopping for Ads for coupons related to something you are shopping for Ads that you think are fun Ads related to your favorite brands Ads related to sites you've visited online or an app you use Ads related to recent online purchases Ads related to your age/gender, if you have kids or other demographic information Ads related to your location Ads related to your daily routine Ads related to recent radio/tv viewing Ads based on information you have given about yourself through answering questions or posting on social media None of these 15% 3% 0% 20% 40% 60% 80% Q5. What kinds of ads are you most likely to respond to on your [smartphone] [tablet]? Base: Device Users (US/) - Tablet (n=250/250). GfK 2014 IAB Mobile Study August 2014 Arrows indicate difference between countries 95% confidence level. 16
17 Ad reactions smartphone users have most frequently viewed a video or gotten a coupon as a result of clicking on an ad on their device. In, smartphone users are much more likely than in to have received a coupon or investigated a product/service via an ad, and it also drives purchasing more than in the Viewing a video and investigating a product/service are the most common reactions to clicking an ad in the, and both are notably higher among Chinese tablet users, who are also more likely to make a purchase Action Taken After Viewing/Clicking an Ad on Device Device Users Smartphone Tablet Viewed a video Received a coupon Downloaded or purchased digital content Signed up for an newsletter Investigated a product or service Signed up to receive text alerts Made a purchase Shared ad via social media/network Visited a local business Called a number in the ad None of the above 44% 38% 37% 62% 31% 24% 31% 20% 28% 55% 28% 20% 24% 37% 21% 37% 20% 37% 13% 11% 30% 5% 0% 20% 40% 60% 80% 100% 41% 41% 32% 56% 23% 16% 33% 15% 40% 56% 13% 18% 31% 43% 19% 22% 23% 34% 10% 8% 21% 6% 0% 20% 40% 60% 80% 100% Q6. Which, if any, of the following have you done as a result of viewing or clicking on an ad on your [smartphone] [tablet]? Base: Device Users (US/) - Smartphone (n=255/252); Tablet (n=250/250) GfK 2014 IAB Mobile Study August 2014 Arrows indicate difference between countries 95% confidence level. 17
18 Mobile Social Media Behavior GfK 2014 IAB Mobile Study August
19 Social Media Use - Smartphone American smartphone users engage with social media on their device when they first get up, while Chinese do so more before they go to bed Social media use on the device is more prominent while watching TV in, and Chinese are more likely to check in during a coffee break or while commuting 100% When Use Social Media on Smartphone Smartphone Users Smartphone 80% 60% 40% 20% 0% First get up in AM During a meal At work Shopping While waiting 3 26 Commuting 8 30 During a coffee break After work While relaxing While watching TV Just before Some bed other time/place Never use social media on smartphone 11% 0% Q7. When, if at all, do you most use social media (e.g. blogs, online forums, ratings and reviews, social networks like [IF Facebook, Twitter ; IF CHINA: Weibo, Wechat ] on your [smartphone] [tablet]? Base: Device Users (US/) - Smartphone (n=255/252) GfK 2014 IAB Mobile Study August 2014 Arrows indicate difference between countries 95% confidence level. 19
20 Social Media Use - Tablet Social Media tablet use differs between the countries in much the same way more use when they first get up and as a second screen, and Chinese more on a coffee break and before bed When Use Social Media on Tablet Tablet Users Tablet 100% 80% 60% 40% 20% 0% 40 First get up in AM During a meal At work Shopping While waiting 0 9 Commuting 6 22 During a coffee break After work While relaxing While watching TV Just before Some bed other time/place Never use social media on tablet 9% 2% Q7. When, if at all, do you most use social media (e.g. blogs, online forums, ratings and reviews, social networks like [IF Facebook, Twitter ; IF CHINA: Weibo, Wechat ] on your [smartphone] [tablet]? Base: Device Users (US/) - Tablet (n=250/250). GfK 2014 IAB Mobile Study August 2014 Arrows indicate difference between countries 95% confidence level. 20
21 Mobile Media Consumption GfK 2014 IAB Mobile Study August
22 Media-related Activities - Smartphone smartphone users consume media on their device more when they get up in the morning than users in, while users do these activities more after work and right before bed Chinese users also do media-related activities on their smartphone during their commute and at coffee breaks more than users 100% When Do Media-Related Activities on Smartphone Smartphone Users Smartphone 80% 65 60% 40% 20% 0% 26 7 First get up in AM 9 13 During a meal At work Shopping While waiting Commuting During a coffee break After work 44 While relaxing While watching TV Just before Some bed other time/place Never do media activities on smartphone 11% 0% Q8. When are you most likely to do media-related activities on your [smartphone] [tablet]? By this, we mean activities such as reading a digital magazine or newspaper, watching an online video, watching TV online, etc. Base: Device Users (US/) - Smartphone (n=255/252) GfK 2014 IAB Mobile Study August 2014 Arrows indicate difference between countries 95% confidence level. 22
23 Media-related Activities - Tablet Similar to smartphone users, tablet users tend to consume media on the device early in the day, while Chinese users do so more after work and before bed tablet users are twice as likely as to use the device as a second screen while watching TV (36% vs. 17%) When Do Media-Related Activities on Tablet Tablet Users 100% Tablet 80% 60% % 20% 0% 32 4 First get up in AM 12 9 During a meal At work Shopping While waiting 2 9 Commuting During a coffee break After work While relaxing While watching TV Just before Some bed other time/place Never do media activities on tablet 7% 0% Q8. When are you most likely to do media-related activities on your [smartphone] [tablet]? By this, we mean activities such as reading a digital magazine or newspaper, watching an online video, watching TV online, etc. Base: Device Users (US/) - Tablet (n=250/250) GfK 2014 IAB Mobile Study August 2014 Arrows indicate difference between countries 95% confidence level. 23
24 Full-length TV episodes Viewing full-length TV shows on a smartphone is much more prominent in than in three quarters of Chinese device users do so on a weekly basis compared to only a quarter in The same country frequency pattern holds for tablet viewing, and is possibly a result of more public commuting versus driving to work Frequency of Watching Full-Length TV Episodes on Device Device Users Smartphone Tablet Ever Watch (Net) 50% 91% 63% 94% At Least Monthly (Net) 37% 82% 42% 87% At Least Weekly (Net) 28% 71% 36% 78% Once a day or more frequently 9% 27% 5% 23% Never 9% 50% 6% 37% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% Q9. How often do you watch full-length TV episodes on your [smartphone] [tablet]? Base: Device Users (US/) - Smartphone (n=255/252); Tablet (n=250/250) GfK 2014 IAB Mobile Study August 2014 Arrows indicate difference between countries 95% confidence level. 24
25 Short video clips Viewing of short clips on smartphones is also done by more Chinese device users on a weekly basis than users, though the differential is not as stark as with full-length episodes Clips are viewed on tablets with almost the same frequency as they are on smartphones in each country Frequency of Watching Short Video Clips on Device Device Users Smartphone Tablet Ever Watch (Net) At Least Monthly (Net) At Least Weekly (Net) 89% 96% 77% 92% 69% 81% 92% 96% 82% 90% 68% 80% Once a day or more frequently 26% 31% 25% 20% Never 11% 4% 8% 4% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% Q.10 How often do you watch short video clips (e.g., [INSERT IF : YouTube INSERT IF CHINA: iqiyi.com) ], music videos, how-to videos or other clips under 10 minutes) on your [smartphone] [tablet]? Base: Device Users (US/) - Smartphone (n=255/252); Tablet (n=250/250) GfK 2014 IAB Mobile Study August 2014 Arrows indicate difference between countries 95% confidence level. 25
26 Mobile Device Networks/OS GfK 2014 IAB Mobile Study August
27 Network Satisfaction Smartphone users in claim Wifi is the data network they use the most 4G is used almost as much as Wifi in the, and 3G is much more prominent than 4G in Wifi satisfaction is slightly higher in compared to 4G satisfaction in is better than 3G is in Network Used Most Often/Satisfaction Smartphone Wifi 4G 3G Wifi 4G 3G 2G Network Used Most Often - Device Users - 41% 35% 17% 54% 4% 36% 6% Satisfaction - Use Most Often - Extremely Very Somewhat 38% 35% 26% 49% 73% 81% 33% 16% 6% 40% 40% 46% * 37% 51% 11% 20% 88% 72% 52% 17% Q12. What kind of data network do you use most often for your [smartphone] [tablet]? Base: Device Users (US/) - Smartphone (n=255/252) Q13. How satisfied are you with the [2G / 3G / 4G / WiFi] network connection speed for your [smartphone] [tablet]? Base: Data Network Used Most Often (US/) - Smartphone Wifi (n=108/135); 4G (N=81/9**); 3G (N=49*/90); 2G (N=16**) Caution: * Small Base Size, ** Very Small Base Size (Satisfaction not shown due to base) GfK 2014 IAB Mobile Study August 2014 Arrows indicate difference between countries 95% confidence level. 27
28 Network Satisfaction Wifi is the dominant data connection for tablet users in both countries Network satisfaction is high in both but a little better in Network Used Most Often/Satisfaction Tablet Wifi 4G 3G Wifi 3G Network Used Most Often - Device Users - 83% 90% 6% 4% 9% Satisfaction - Use Most Often - Extremely Very 34% 41% 76% 35% 52% 86% Somewhat 23% 13% Q12. What kind of data network do you use most often for your [smartphone] [tablet]? Base: Device Users (US/) - Tablet (n=250/250) Q13. How satisfied are you with the [2G / 3G / 4G / WiFi] network connection speed for your [smartphone] [tablet]? Base: Data Network Used Most Often (US/) - Tablet Wifi (n=202/225); 4G (N=11**/2**); 3G (N=14**/22**); 2G (N=2**/1**) ** Caution: Very Small Base Size (Satisfaction not shown due to base) GfK 2014 IAB Mobile Study August 2014 Arrows indicate difference between countries 95% confidence level. 28
29 Operating Systems Android smartphones are much more prominent than Apple in, while the Android lead over ios in the is minimal The reverse is true in for tablets ios dominates. Android also leads ios on tablets in OS of Device Taking Survey On Device Users Smartphone Tablet 23% Android (Google) 50% 75% 53% ios (Apple) 44% 38% 75% Windows (Microsoft) Not sure Blackberry (RIM) 1% 21% 2% 4% 2% 4% 7% 2% Q1. What is the operating system of the [smartphone] [tablet] on which you are completing this survey? Base: Device Users (US/) - Smartphone (n=255/252); Tablet (n=250/250) GfK 2014 IAB Mobile Study August 2014 Arrows indicate difference between countries 95% confidence level. 29
30 Ease of Taking Survey The vast majority in both countries feel the survey was easy to take on their device More tablet users in the than felt it was very easy to take Ease/Difficulty of Taking Survey on Device Device Users Smartphone Tablet Somewhat difficult 7% Somewhat easy 24% Very easy 69% Somewhat difficult 1% Somewhat easy 29% Very easy 69% Somewhat easy 16% Very easy 82% Somewhat difficult 1% Somewhat easy 36% Very easy 63% Q14. And finally, how easy or difficult is it to take a survey like this using your [smartphone] [tablet]? Base: Device Users (US/) - Smartphone (n=255/252); Tablet (n=250/250) GfK 2014 IAB Mobile Study August 2014 Arrows indicate difference between countries 95% confidence level. 30
31 GFK AND IAB CONTACTS David Tice Senior Vice President, Brands and Consumer Experience GfK Mike Picco Senior Research Manager, Brands and Consumer Experience GfK Sherrill Mane Senior Vice President, Research, Analytics, and Measurement IAB Joe Laszlo Senior Director, Mobile Marketing Center of Excellence IAB GfK 2014 IAB Mobile Study August
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