Table of Contents Connected Device Trends 3-4 Tablet usage up 84% Mobile Shopping Behavior 5-6 Location Trends 7 Connected Device Adoption 8-9 Worldwide Location Highlights 10-11 Q4 2010 The Q3 Mobile Audience Insights Report examines connected device, location and mobile shopping trends, as well as connected device adoption. This quarter we examined two key emerging trends in the location and mobile markets. The first area reviews device consumption habits and the shift to smaller, more portable devices. The second key area looks at location-specific shopping behaviors attitudes around checking-in. Key highlights include: 25% of the on-the-go audience plan to purchase Smartphones or Tablets within the next 6 months. 18% of mobile consumers will purchase on their mobile devices and laptops when shopping in a store. Consumer attitudes are equally split regarding check-in solutions. Perceptions vary by age and gender. Source: JiWire, Q1 2011. 1
90 % 79 % JiWire Mobile Audience Insights Report Connected device trends: Device ownership Which of the following devices do you own? What do you plan to buy in the next 6 months? 58 % 62 % Q2 2011 25 % 32 % 37 % 16% 16 % 12 % 12 % 24 % Laptop Smartphone Tablet ereader Netbook Laptop Smartphone Tablet (i.e. ipad) E-Reader (i.e. Kindle, Nook) Netbook (i.e. Asus Eee PC) 16 % Key Insights Purchase intent is shifting from Laptops to Smartphones and Tablets Smartphone and Tablet ownership have increased by 4% and 5%, respectively, from Q2 2011 to. Laptop ownership, by comparison, has decreased by 11% over the past quarter. Usage shows similar trends for device types between Q2 2011 to : Smartphone and Tablets saw relative gains of 24% and 20%, respectively while Laptop usage reportedly decreased by 10%. In terms of purchase intent, consumers are 50% more likely to purchase a Smartphone or Tablet than a Laptop. Adults ages 24 and under are most likely to purchase a Smartphone and/or Laptop in the next 6 months. Adults ages 24 44 are most likely to purchase a Tablet. 2
Connected device trends: Tablet usage Percentage of Consumers who use Tablets to connect to Wi-Fi outside the home or office Percentage of Tablet Ad Requests Q3 Top Tablet Devices 19% 25% 29% 35% 3.7% 6.4% 8.5% 8.9% 1 Apple ipad 2 Galaxy Tab 3 Dell Streak 4 Blackberry Playbook 5 Galaxy S 6 Huawei Ideos S7 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY10 Q1 FY11 Q2 FY11 Q3 FY11 Key Insights 7 Motorola Xoom 8 Toshiba Folio 100 35% of the on-the-go audience uses Tablets to connect to Wi-Fi outside the home or office in Tablet consumers connecting to Wi-Fi have nearly doubled since 2010, increasing from 19% in Q4 2010 to 35% to, a relative increase of 84%. 95% of Tablets owners report using their Tablets to connect with Wi-Fi outside the home or office, spending more than 90 minutes on average every day.** More recently, Tablets have shown a 99% increase in ad requests between Q2 2011 to. The Apple ipad remains the category leader with 81.4% of total marketshare. The Galaxy tablet showed the most growth, increased by 13.1% from 2.2% (Q2 2011) to 15.8% (). ; JiWire Internal Network Data **MediaPost Tablet News Readers Significant, But Only a Harbinger... (November 8, 2011) 3
Mobile shopping behavior: Purchasing preferences Which categories do you tend to purchase frequently using your mobile device? 43 % 53 % 42 % 49% 39 % 43 % 32 % 38 % Smartphone Owners Tablet Owners 12 % 11 % 8 % 7 % Electronics Retail (non electronics) Entertainment Travel Local Deals Food/Beverage Key Insights Tablet owners purchase more frequently than smartphone owners 82% of the Tablet owners are willing to purchase directly on their mobile devices (smartphones or tablets) compared with 76% of Smartphone owners. 67% of Tablet owners are comfortable spending $50 or more, compared with 57% of Smartphone owners Electronics, Retail, Entertainment and Travel are the most frequently purchased categories. Tablet owners lead all of these categories in terms of purchase frequency. Purchase intent skews male - 73% of Men report purchasing on mobile devices compared with 61% of Women. 4
Mobile shopping behavior: Purchasing preferences Do you prefer to shop in a physical store location or online? When buying a $50 item from a store you visit regularly, what is your likeliest method of purchase? At the store 82 % 9 % 9 % 1 mile from store 77 % 13 % 10 % 5 miles from store 66 % 15 % 19 % 10 miles from store 45 % 16 % 39 % 20 miles from store 28 % 14 % 58 % Online Physical Store Both In store On Mobile device On laptop Key Insights 85% of the mobile audience still shop in a physical store 63% of consumers prefer to shop both in store and online and 22% prefer to shop exclusively in-store. Only 15% prefer to shop exclusively online. 18% are using a connected device to actually make purchases even when physically in the store. In addition, 28% of respondents said they comparison shop on a mobile device when in store. The mode of purchase shifts greatly as consumers draw further away from a given location. Specifically, 72% of consumers report that they are more likely to shop on their laptops or mobile devices once 10 miles from a store. 5
Location trends: Check-in service attitudes Which statement best describes your thoughts about check-in services? Demographic Breakdown <24 25-44 45+ 8% 27% 30% 13% I love it! 22% I like it I don t care I don t like it Love 27% 15% 9% 16% 10% Like 19% 25% 20% 23% 20% Don t care 32% 30% 29% 30% 29% I don t understand it Don t like 5% 9% 8% 9% 8% Don t understand 17% 21% 34% 22% 33% Key Insights On-the-go consumers are still deliberating about Check-In services Perceptions are equally split among positive, negative and neutral feelings towards Check-in services, with roughly a third of audiences falling into each of those category. Attitudes vary across genders: 39% of men enjoy check-in services compared with 30% of women; 33% of women do not understand check-ins compared with 22% of men. 46% of Adults ages 24 and under like and love check-in services, followed by Ages 25-44 (40%) and then 45+ (29%). The most popular check-in categories include restaurants, hotels, pubs/bars and health clubs.. 6
Connected device adoption: U.S. highlights Top 10 Mobile Device: Top Mobile OS: Q3 Mobile Device Top 10 % of Ad Requests Q2 % Change in Market Share Q3 Mobile Device OS % of Ad Requests Q2 % Change in Market Share 1 Apple iphone 41.9% 1-1.8% 2 Apple ipad 23.8% 2 + 2.9% 3 Apple ipod Touch 14.1% 3-3.3% 4 Windows Mobile 7 4.9% 4 + 1.1% 5 BlackBerry Torch 0.7% 7 0.0% 6 HTC Desire S 0.6% 12 + 0.4% 7 Palm Pre 0.4% 28 + 0.3% 8 Blackberry Bold 0.4% 21 + 0.2% 9 HTC Desire 0.3% 5-0.8% 10 Samsung Galaxy S 0.3% 6-0.5% 1 ios 79.9% 1-2.0% 2 Android OS 11.0% 2 + 0.5% 3 Windows Phone 5.2% 3 + 1.2% 4 RIM 2.2% 4 + 0.4% 5 PSP 0.8% 5 0.0% 6 Symbian 0.4% 6-0.3% 7 WebOS 0.4% 8 + 0.3% 8 Windows Mobile 0.1% 7-0.3% Key Insights: The ipad continues to gain marketshare in The Apple ipad increased by 2.9% for the third consecutive quarter The Apple iphone remains in the No. 1 spot at 41.9%, after decreasing 1.8% in marketshare. ios drops in marketshare but still holds No. 1 ranking third consecutive quarter ios drops by only 2.0%, but remains in the No. 1 spot ahead of the No. 2 ranked Android operating system. Note: JiWire measurement includes all mobile devices in order to provide a complete view of how the on-the-go audience is connecting outside of the home and office. * OS: Operating System. 7
Connected device adoption: U.K. highlights Top 10 Mobile Device: Top Mobile OS: Q3 Mobile Device Top 10 % of Ad Requests Q2 % Change in Market Share Q3 Mobile Device OS % of Ad Requests Q2 % Change in Market Share 1 Apple iphone 50.6% 1-6.2% 2 Apple ipad 10.4% 3 + 2.2% 3 Apple ipod Touch 10.1% 2-2.5% 4 Windows Mobile 7 7.5% 6 + 5.4% 5 HTC Desire S 2.2% 17 + 1.9% 6 Wildfire 1.9% 10 + 1.5% 7 HTC Desire 1.8% 4-0.7% 8 Samsung Galaxy S 1.4% 5-0.8% 9 Samsung Galaxy S II 1.2% 22 + 0.9% 10 Sony Xperia X8 0.6% 11 0.0 Key Insights: 1 ios 71.1% 1-6.5% 2 Android OS 16.6% 2 + 1.5% 3 Windows Phone 8.1% 3 + 5.5% 4 RIM 1.5% 4 + 0.2% 5 PSP 1.1% 6-0.1% 6 Symbian 1.0% 5-0.3% 7 Windows Mobile 0.3% 7-0.2% 8 Bada 0.2% 8-0.1% ipad and Windows Mobile make significant marketshare gains in the third quarter of 2011: 7 out of the top 10 devices are the same within the U.S. and U.K. Comparatively, the Samsung Galaxy S, SII, and Wildfire devices are more popular in the U.K. Android OS, Windows OS make large marketshare gains again the in third quarter of 2011: ios loses marketshare again in but remains the majority leader at 71.1% The Windows OS, Android and RIM saw gains of 5.5%, 1.5% and 0.2%, respectively, while all other operating systems showed declines Note: JiWire measurement includes all mobile devices in order to provide a complete view of how the on-the-go audience is connecting outside of the home and office. * OS: Operating System. 8
Worldwide location highlights: Public Wi-Fi locations Worldwide public Wi-Fi locations: 2006 Q2 2011 289,476 237,507 219,681 414,356 647,788 Worldwide quarterly growth in public Wi-Fi locations 414,356 546,783 577,250 647,788 2007 2008 2009 2010 Q4 2010 Q1 2011 Q2 2011 *Base starting at 230,000 Key Insights: Worldwide public Wi-Fi locations continue to grow through the second quarter of 2011: Quarterly growth of 12.2% from Q2 2011 to YTD growth of 56.3% from Q4 2010 to Annual growth of 91.8% from Q3 2010 to. Total public Wi-Fi locations have nearly doubled in since 2010. 9
Worldwide location highlights: Public Wi-Fi locations Q3 Country # of Locations Q2 2011 % Change (from Q2) 1 United Kingdom 181,474 1 26.4% 2 United States 104,277 3 8.3% 3 China 102,285 2 0.1% 4 South Korea 69,569 4 26.1% 5 France 34,600 5 12.2% Public Wi-Fi business models: Worldwide 22.4 % 20.2 % 77.6 % 2.2 % Public Wi-Fi business models: U.S. Paid Free Increase in Free 6 Russian Fed. 16,659 7 4.7% 7 Germany 14,733 6-0.2% 8 Japan 14,685 9 17.2% 9 Taiwan 14,315 8 0.2% 10 Sweden 7,765 10 2.1% 76.2 % 58.0 % 23.8% 18.2 % Paid Free Increase in Free United Kingdom, South Korea and Japan have highest growth rates in : UK and South Korea stay consistent in the No. 1 and No. 4 spots, with a growth rates of 26.4% and 26.1% respectively. Japan increased from the to the No. 8 spot, from No. 9 in Q2 2011, with a 17.5% increase in marketshare Free locations continue to see growth in the U.S. and remain consistent worldwide Free locations in the US has increased by 18.2%, from 58% in Q2 2011 to 76.2% in, while total free locations Worldwide have remained between 19% to 25% 10
JiWire is the leading mobile audience media company, combining location and audience data to deliver targeted advertising across premium locations and wireless devices. This Insights report provides a snapshot of usage trends and audience data over public Wi-Fi for the third quarter of 2011. This report is intended to highlight market trends for advertisers. JiWire s Location-Based Media Channel is comprised of more than 30,000 public Wi-Fi locations through partnerships with more than 30 leading wireless broadband telecommunications providers, with venues such as airports, hotels and cafés that serve more than 40 million unique users monthly. JiWire connects with the on-the-go audience across multiple devices from laptops, to smartphones, to tablets. JiWire s registry of public Wi-Fi locations includes more than 450,000 public Wi-Fi locations in 144 countries. JiWire has been reaching on-the-go audiences since 2003. For questions about this report, or for recommendations for future reports, please contact us at Insights@jiwire.com. Methodology: JiWire s Mobile Audience Insights Report is based on data from approximately 315,000 public Wi-Fi locations, as well as surveying more than 2,000 customers randomly selected across JiWire s Wi-Fi Media Channel in July 11 September 11. JiWire serves advertisements to over 30,000 public Wi-Fi locations in North America and we record data from every ad request. This report is based on the ad request data we collected from July September 2011. Quarterly public Wi-Fi location rankings and business model distributions are based on the final day of the quarter.