Mobile Opens Report
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1 Prepared by Mobile Opens Report 1st Half of % 40% 36% 30% 27% 20% 20% 13% 10% Q Q1/Q Q3/Q Q1/Q2 2012
2 Mobile Opens Report 1st Half Knotice, Ltd. All Rights Reserved Page 1 Mobile Opens Report 1st Half 2012 By Knotice September 2012 About This Report Knotice (pronounced notice ) provides advanced data management to support highly targeted marketing communications through today s primary direct digital channels of , mobile, online advertising and the Web. As a result of Knotice s native unified platform capabilities, the company is also able to offer an advanced level of actionable analytics, deriving key insights on timely and relevant topics in this case, the degree of open activity occurring on mobile devices for permission-based marketing campaigns. As with Knotice s previous Mobile Opens Reports, the mobile open rate is a measurement of opens occurring on mobile devices (including phones and tablets) compared to the opens occurring on desktop computers (including laptops). The mobile open rate is not a measurement of mobile opens compared to all s delivered. This Mobile Opens Report for the first half of 2012 (Q1/Q2) has been updated to document not only the rate of opens occurring on mobile devices in the U.S. (with differentiation between mobile phone and tablet activity), we also take a close look at open rates based on hours after the time of send. Also included are mobile click-rate metrics by device. Tracking the share of opens occurring on mobile devices is a specific metric not widely found in the marketing industry. Supplementing the open metrics with click data offers us a clearer picture of how mobile users are truly engaging with from the initial decision to open the , to the very important decision to take action on the message. The mobile click rate we are including in this report is a measurement of clicks occurring on mobile devices compared to the opens occurring on mobile devices. This equates to the click-to-open (CTO) rate with which marketers are well versed. As you review the data, it s important to note how an open is recorded as mobile, which is based on downloading images. Image download (i.e., show images ) is not always a default setting for every operating system (including some Android devices) or mobile client. This means the reported number of opens may be lower than the actual number of users viewing or reading the . Data collected over time allows for benchmarks for comparison. Overall mobile opens by device and operating system (OS) The following represents the percentage of all opens occurring by mobile operating system (OS) or mobile device, based on a composite cross sampling of approximately 807 million s sent across 11 industry segments in the first 6 months of In this report, mobile devices have been broken down into two distinct categories: phones and tablets. opens occurring on phones continue to outpace those occurring on tablets by roughly 3 to 1, with mobile phones representing 25.85% of all opens and tablets 10.16%. This first table includes percentages for phone, tablet and desktop opens in Q1 and Q The following rows reference similar percentages in Q3 and Q4 2011, the first half of 2011 as well as Q4 2010, for comparison. Phones Q1/Q Tablets Q1/Q Desktop iphone Android BlackBerry Palm Windows Other Total ipad Android Other Total Total 19.71% 5.88% 0.02% 0.04% 0.06% 0.14% 25.85% 9.63% 0.43% 0.10% 10.16% 63.99%
3 Mobile Opens Report 1st Half Knotice, Ltd. All Rights Reserved Page 2 Phones Q3/Q Tablets Q3/Q Desktop iphone Android BlackBerry Palm Windows Other Total ipad Android Other Total Total 15.69% 4.69% 0.02% 0.12% 0.02% 0.09% 20.63% 6.54% 0.17% 0.05% 6.76% 72.61% Mobile - Q1/Q Desktop - Q1/Q iphone ipad Android Windows BlackBerry Palm Total Windows Mac Linux Total 12.78% 3.92% 3.15% 0.05% 0.01% 0.22% 20.13% 65.72% 13.87% 0.17% 79.76% Mobile - Q Desktop - Q iphone ipad Android Windows BlackBerry Palm Total Windows Mac Linux Total 8.74% 2.00% 1.92% 0.31% 0.15% 0.25% 13.37% 70.27% 16.19% 0.18% 86.64% Mobile opens jump to 36% of all opens in early 2012 In the first half of 2012, steady growth in mobile open rates continued. During that time, 36.01% of all s were opened on a mobile device (phones and/or tablets), which is an increase of 32% from late 2011 numbers of 27.39%. This shows the steady, strong increase in mobile open rates continues, which lends further evidence to the accelerating rate of mobile adoption as previously forecast. Percentages of s Opened % on Mobile % on Desktop 1 st Half 2012 Opens 36.01% 63.99% 2 nd Half 2011 Opens 27.39% 72.61% 1 st Half 2011 Opens 20.24% 79.76% Mobile is a dynamic environment made up of different combinations of devices, OS, and browsers. Although the above chart is technically blending mobile devices (iphone and ipad) with operating systems (Android), we believe this is the most intuitive and useful way to look at the data for summary purposes. ios continues to dominate mobile opens Mobile devices using ios continue to dominate overall mobile activity. In the first half of 2012, the iphone and ipad represented 29.34% of all opens, compared with less than 5% of all opens occurring on Android phones or tablets. While the share of opens occurring on Android devices did increase, the overall open activity doesn t quite map to the operating system s high adoption rate and number-one market position. This can be attributed to the manner in which a mobile open is recorded based on images downloaded as mentioned earlier. Operating Systems Phone Tablets Total ios 19.71% 9.63% 29.34% Android 5.88% 0.43% 6.31% ios and Android, the two dominant mobile operating systems in the US, account for 99.19% of all mobile opens. The remaining tables included in this report will display only the ios and Android operating system data, unless otherwise noted.
4 Mobile Opens Report 1st Half Knotice, Ltd. All Rights Reserved Page 3 Mobile opens by industry: Retail and consumer services see highest mobile engagement Among the industry categories tracked in this report, Consumer Services and Financial Services saw the highest mobile open rates overall. Opens Q1/Q2 Percent of All Opens: Phones Percent of All Opens: Tablets % Desktop BY INDUSTRY iphone Andoid Total ios Android Total Total Association 14.66% 2.37% 17.03% 6.62% 0.15% 6.77% 76.20% B2B 11.43% 2.33% 13.76% 2.43% 0.11% 2.54% 83.70% Cable & Telco 19.71% 6.00% 25.71% 9.71% 0.43% 10.14% 64.15% Consumer Products 17.90% 4.85% 22.75% 6.13% 0.29% 6.42% 69.83% Consumer Services 23.79% 10.20% 33.99% 7.77% 0.41% 8.18% 57.83% Education 19.92% 3.00% 22.92% 9.02% 0.22% 9.24% 67.84% Entertainment 18.86% 7.62% 26.48% 6.20% 0.62% 6.82% 66.07% Financial Services 25.82% 6.90% 32.72% 6.98% 0.43% 7.41% 59.87% Health Care 11.45% 2.15% 13.60% 2.38% 0.10% 2.48% 83.92% Hospitality 19.74% 4.04% 23.78% 9.68% 0.47% 10.15% 66.07% Retail 20.39% 4.04% 24.43% 10.65% 0.48% 11.13% 64.44% Breaking down the mobile opens data by industry segment provides some interesting insights. Categories such as Consumer Products (29.17%, up from 20.83%), Retail (35.56%, up from 28.42%), Cable & Telco (35.85%, up from 27.52%), Consumer Services (42.17%, up from 35.39%) and Entertainment (33.30%, up from 27.24%) saw significant increases in mobile open rates when compared to the second half of It s important to note how much customer behavior and the brand relationship influences the penetration of mobile by segment. Mobile click activity by industry The chart below displays the ratio of all clicks occurring across phone, tablet and desktop platforms, relative to the open rates for each. It also displays the comparative click-to-open (CTO) rates, which is the ratio of unique clicks as a percentage of unique opens. For those unfamiliar with the concepts of CTOs and click-thru rates (CTR), the CTO rate is expressed as a percentage of unique click-thrus on links within an to the total number of unique opens of that . This helps marketers measure the relative effectiveness of the content of an message in driving targeted traffic to the brand s website or landing page. The click-thru rate (CTR) is the ratio (or percentage) of unique clicks on links within an to the total number of messages delivered. CTO compares to number of opens while CTR compares to number of s sent. Much like mobile open rates, the click-thru rates for phones and tablets have increased dramatically over the last halfyear. However, it is clear the share of clicks occurring on phones and tablets (and the respective CTO rates) lag far behind the desktop platform. The clear majority of clicks are still occurring on desktop devices. Percentages in the table below reflect all devices and types.
5 Mobile Opens Report 1st Half Knotice, Ltd. All Rights Reserved Page 4 Q1/Q Click Activity on Phones * Click Activity on Tablets * Click Activity on Desktop BY INDUSTRY % Opens % Clicks CTO% % Opens % Clicks CTO% % Opens % Clicks CTO% Association 17.14% 7.34% 8.64% 6.83% 3.87% 11.44% 76.02% 88.79% 23.57% B2B 13.86% 4.55% 4.12% 2.56% 1.03% 5.06% 83.57% 94.42% 14.18% Cable & Telco 26.03% 16.50% 5.51% 10.25% 7.20% 6.11% 63.73% 76.30% 10.42% Consumer Products 23.10% 15.15% 12.28% 6.50% 4.83% 13.90% 70.41% 80.03% 21.28% Consumer Services 34.45% 23.88% 5.71% 8.36% 4.72% 4.66% 57.19% 71.40% 10.29% Education 23.40% 9.38% 2.17% 9.34% 7.69% 4.46% 67.26% 82.93% 6.68% Entertainment 27.06% 15.70% 6.73% 7.01% 4.78% 7.91% 65.93% 79.52% 14.00% Financial Services 32.97% 20.21% 15.01% 7.54% 6.71% 21.80% 59.50% 73.08% 30.07% Health Care 13.68% 4.87% 9.47% 2.50% 1.07% 11.39% 83.82% 94.06% 29.86% Hospitality 24.12% 14.76% 10.34% 10.24% 6.78% 11.19% 65.65% 78.47% 20.21% Retail 24.70% 13.83% 7.77% 11.22% 6.67% 8.26% 64.08% 79.50% 17.23% * Percentages based on all device types measured, not exclusively Android and ios. It is interesting to note that the CTO rates are relatively consistent between phone and tablet platforms, at least in comparison to the CTO rates for desktop, which are often twice as high. We can still attribute the lag in mobile and tablet click rates to the fact that most marketers are not yet optimizing content for mobile users. Optimization for mobile devices should include everything from how the renders for mobile devices to streamlining text, making calls-to-action and buttons extremely clear, and more. When more marketers begin employing tactics such as these in their mobile optimization efforts, we can expect to see click rates on mobile devices begin to climb. A look at the trends and it s obvious that is rapidly approaching the point when mobile opens exceed those opened on desktop. It s worth noting that 36% of s from retailers are opened exclusively on mobile, so it s obvious that mobile optimization remains a priority. We anticipate that percentage of mobile opens to increase as device adoption rates continue to climb. Approaching the mobile tipping point With the overall share of opens occurring on mobile now at 36% across all industries (increasing from 27% six months ago), it is our projection that the share of mobile opens will exceed 50% for most marketers within the next 6 to 12 months. Considering most brands included in this study are not actively optimizing their programs or designing s with mobile users in mind, overall program and campaign performance may be negatively impacted more and more with each passing month. It is imperative that and mobile marketers begin planning with urgency for that point in time when mobile users will be the majority audience. Case in point: Retail fashion apparel brand Several brands within our study have already passed the mobile tipping point. For one apparel retailer joining the study in 2012, they quickly discovered that over 60% of all their opens are on mobile devices. In fact, the total number of opens from iphone and ipod devices (38.5%) is greater than the number of opens from desktop computers (37.5%), while another 16% of opens are from Android phones. This retailer has just learned that their traditional desktopminded approach to design is upside-down, based on strategies defined around what is now a minority audience.
6 Mobile Opens Report 1st Half Knotice, Ltd. All Rights Reserved Page 5 When are mobile opens occurring? Share of mobile opens by time of day As illustrated in previous versions of this report, there is a clear and continuing trend as to the hours of the day when mobile open activity is higher. The share of opens occurring on mobile devices spikes during evening, late night and early morning hours. Simply put, users shut down their computers during the evening and are picking up their tablets or reading on their phones in the after-dinner hours. Once the workday begins, computers are back in greater use. The trend has not changed noticeably during the early half of Familiar spikes in tablet open activity during primetime hours and phone open activity later at night and in the early morning are seen here. However, the spikes in mobile open activity do not necessarily correspond with the times when overall open volume (including desktop) is at its highest, indicated by the thin light-blue line in the chart below. It also indicates that there are three clear periods of the day where open activity is highest: start of workday, following lunch, and after dinner/primetime. Only in the last case do those spikes in overall open volume coincide with increases in mobile open activity. Mobile opens by time after delivery Instead of looking at mobile open activity in an absolute sense by time of day, we also looked at the share of opens occurring on mobile devices based on the hours immediately after the was sent. It should come as little surprise that the share of opens occurring on phones is higher in the few hours immediately following delivery. Looking at this from a slightly different angle, we can also see that the distribution of opens occurring on phones is more heavily concentrated within the first 3 hours following delivery, falling off quickly before falling in line with the distribution trend of desktop and tablet opens. The first chart below shows the percentage of opens by device type within the hours after a send. Knotice data reveals engagement by phone is significantly higher in the first 90 minutes, with negligible differences between phone, tablet and desktop engagement after approximately 5 hours. The second chart below shows that for 100% of the opens taking place, what percentage of those open occur on each device as the clock ticks, post send. In today s crowded inbox, timing can be significant. Marketers need to use their data to establish the best hour for their sends, which can be unique to each audience or segment.
7 Mobile Opens Report 1st Half Knotice, Ltd. All Rights Reserved Page 6
8 Mobile Opens Report 1st Half Knotice, Ltd. All Rights Reserved Page 7 The Myth of Multiple Opens In past reports, we ve consistently debunked a historically common assertion that people would use their mobile inbox as a filter of sorts and save s to revisit on their desktop later. Consumers today see a subject line. If they open it, they want to act on whatever call to action is presented to them. If they don t act in that moment, our data shows only about 2% will reopen that on another device whether on their desktop device, smartphone, or tablet. For this analysis we isolated the Retail industry segment. This data shows that nearly 98% of the cases the open is occurring on only one type of device (up from nearly 95% just six months ago). RETAIL: Individual Opens Percent of Overall Opens Desktop Only Opens 76.51% Phone Only Opens 14.47% Tablet Only Opens 6.56% Same Desktop + Phone + Tablet 0.09% Same Desktop + Tablet 0.53% Same Phone + Tablet 0.40% Same Desktop + Phone 1.44% This means that even if you created a compelling subject line and delivered the right offer, if it renders poorly on the device or if there isn t a seamless optimization of the post-click experience, you have missed your window with a mobile opener. The impact of immediacy in this case is that they will immediately become revenue lost. Suggestions for ways to address this only-one-chance situation: Use optimized templates or use adaptive design for the device that recipient used the most often; Having a device-optimized, focused click-through experience with dynamic content specific to what you already know from your direct interaction with that person. (In other words, don t just redirect to your mobile home page, or worse, your.com flash-based splash page); Offer easy-to-consume content, messaging, offer redemption and buying; Preload forms with as much as you can support. Includes: buying, shipping, and even payment method used.
9 Mobile Opens Report 1st Half Knotice, Ltd. All Rights Reserved Page 8 Top Phones for Reading Not surprisingly the iphone far and away leads the pack representing nearly 77% of all opens occurring on a phone. Perhaps more surprising is that after the iphone, the ipod Touch* outpaces any other single device. However, the bulk of the other top 24 phones represented are Android devices, which added together represent 20% or more of all opens on phones. Manufacturer Phone Model (Device Type) Percent of Opens CTO Percentage Apple iphone 70.81% 4.07% Apple ipod Touch 5.67% 3.72% HTC PC % 0.71% Motorola DroidX 1.07% 11.40% Samsung SPH-D % 6.73% HTC Incredible HD 0.96% 7.41% Samsung SGH-T % 6.14% Samsung SPH-D700/Epic 4G 0.82% 7.80% Motorola DROID RAZR 0.73% 13.09% HTC Desire HD 0.67% 0.49% Samsung SGH-I997 Infuse 4G 0.56% 7.57% HTC EVO 3D 0.55% 9.28% Motorola Droid Bionic 0.49% 12.61% Samsung SGH-I % 5.05% HTC Droid Incredible 0.45% 6.88% HTC Glacier 0.45% 0.46% Samsung SCH-I % 37.51% Samsung SGH-T959V 0.43% 8.90% HTC PG % 0.43% Samsung SGH-I % 4.75% HTC ADR6350/Droid Incredible % 0.41% Motorola Droid2 0.37% 11.02% Motorola Droid X2 0.30% 13.82% Motorola Droid 0.24% 10.81% * Clearly, the ipod Touch is not a phone; however, we group this device in the phone category because the overall user traits are very similar to the iphone and other smartphones, minus the functionality of telephoning.
10 Mobile Opens Report 1st Half Knotice, Ltd. All Rights Reserved Page 9 Top 10 Tablets for Reading While it remains true that for the US consumer audience ipad = tablet. The Kindle Fire appears to be on fire with 1.94% of all tablet opens, up from 0.31% just six months prior. Nearly 95% of all opens occurring on a tablet device were on the ipad, slipping slightly from 97% in Q3/Q When adapting digital tactics for tablets it is important to understand the distinctions between larger 10 screen devices, and smaller 7 screen devices. Manufacturer Tablet Model (Device Type) Percent of Opens CTO Percentage Apple ipad 94.67% 6.03% Amazon Kindle Fire 1.94% 0.54% HP TouchPad 0.69% 5.53% Samsung SCH-I % 10.37% Samsung GT-P7510 Galaxy Tab % 14.33% Asus Eee Pad Transformer 0.23% 22.83% Motorola MZ601/Xoom 0.22% 23.63% RIM BlackBerry PlayBook 0.19% 13.76% Toshiba AT % 29.65% Samsung GT-P1000 Galaxy Tab 0.16% 8.63% Key Report Takeaways for and Mobile Marketers: How to Prepare for the Mobile Tipping Point As noted earlier in this report, for many marketers the mobile tipping point is close (when engagement from mobile users will outpace that from traditional desktop/pc user), and will likely occur in six to 12 months. For many brands, this point has already occurred. Are you prepared? Some key takeaway based on the findings of this report: Your brand should be ramping up to a mobile first mindset. If your brand has not yet reached the tipping point in mobile engagement, it will soon. How your subscribers view and consume content has fundamentally changed within the past few years. Every marketer will have to embrace the mobile-majority audience or risk continued declines in click and conversion metrics. What does a mobile-first mindset look like? Some examples: o Altering fundamental design principles to accommodate the unique traits and preferences of mobile users. This can include shorter copy, larger fonts, and clearer calls-to-action as a design priority, as well as large buttons and spacing between text links (to accommodate chubby fingertips). It also may mean embracing alternate offline response options, like calling an agent or finding a retail store, to name just a few. o Auditing all post-click sites and pages for mobile friendliness and performance. This means applying a similar eye for design and functionality specific to mobile users, with special consideration for locationawareness to help users respond and react based on their location. o Create moments of ultimate convenience. For example, if your is highlighting a specific product or promotion, design your experience around the customer one that allows the user to buy that product with as few clicks as possible. Don t drop the user on to the home page of a mobile commerce site and expect them to find the product themselves. Instead, tee up the sale by allowing customers to select that item and go to checkout in just one click.
11 Mobile Opens Report 1st Half Knotice, Ltd. All Rights Reserved Page 10 Know your mobile audience. If you do not know your mobile engagement stats, your brand is developing engagement and design strategies in the dark. Partner with a technology provider who can provide realtime hard data on how many users are engaging with your s, and on what devices. Know what the people in your audience are doing with that . Even better, partner with a technology provider who can help you append mobile-use data and indicators to your subscriber database profiles, allowing you to segment and target consistent mobile users with unique content designed around them. Knotice has found that past mobile activity such as the last four consecutive opens occurring on a smartphone is a very accurate predictor that the next open will also be on the smartphone. With this information you can begin designing and testing new types of content and engagement for a known mobile audience and focus on the art and science of viewed via mobile. marketers become mobile marketers. When the mobile audience is the majority audience, your marketing team should be spending the majority of their time working and testing on mobile devices. Gaining a mobile-first mindset will be difficult if the strategy, planning and execution teams spend most of their time behind laptop computers. Instead, understand how mobile users manage a full inbox, the different ways they view and evaluate s and post-click experiences, and the functional limitations they may encounter. Get Your Mobile Opens If you are a marketer and would like to participate in the report, send an to info@knotice.com with the subject mobile analysis and we ll provide you a snippet to include in your upcoming campaigns. We will report on your data in aggregate for the purposes of this report, and we ll also provide your results back to you. As you ll discover in this report, having your individual results is critical. Although we look at mobile opens overall, by industry, timeof-day, and geography, nothing has more influence on the mobile activity occurring in your campaigns than the characteristics of your own prospects and customers. About Knotice Knotice (pronounced "notice") is a leading provider of data management, actionable analytics, and digital messaging solutions, headquartered in Akron, Ohio, with offices in Seattle. Our on-demand marketing software and agency services help marketers maximize the ROI of their addressable digital marketing digital communications that are addressable to an individual. With our proprietary platform, we pioneered the ability to seamlessly unite customer data, analytics and message delivery all from a single profile-based platform. In addition to technology, Knotice provides a comprehensive offering of marketing services, including strategy and planning, agency-style creative services, custom development, analytics, advanced reporting, and business intelligence. For more information, visit:
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