comscore.com/mobile comscore, Inc. Proprietary. 1
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1 comscore.com/mobile comscore, Inc. Proprietary. 1
2 Introduction Ben Martin Director, Global Marketing Insights 1 st The concept of mobile first is no longer exclusive to technology-focused businesses and consumers, and is the default position for a growing number of internet users, who now spend the majority of their digital time on smartphones and tablets. Although dominant, the share of consumer audiences and time on mobile devices is unevenly distributed between categories, demographics and geographies. International markets follow paths of digital evolution based on combinations of global and local influences. In this report, we will review human necessities from Maslow s Hierarchy of Needs and align them with pockets of particularly intense mobile usage. Using data from 9 global regions, we will suggest that mobile users have a hierarchy of digital needs that drive their consumption on these platforms. comscore, Inc. Proprietary. 2
3 Mobile Evolution In 2017, mobile devices have an unquestionable role as consumers primary digital tool comscore, Inc. Proprietary. 3
4 Our primary tool Across the globe, mobile devices dominate total minutes spent online, passing 90% in Indonesia % mobile share of total digital minutes 71% USA Canada UK Spain Italy 67% 62% 64% 61% 91% 72% 75% 71% Brazil Mexico China Indonesia Source: comscore MMX Multi-Platform, January 2017 comscore, Inc. Proprietary. 4
5 Mobile has become a primal need A recent Boston Consulting Group survey demonstrates that consumers would be increasingly unwilling to surrender their mobile devices, even at the expense of some traditional needs More than three in 10 would stop seeing their friends in person Almost a third of Americans would rather give up sex for a year 45% said they would put off going on vacation 46% would be willing to give up a day off per week More than 55% would rather forgo dining out for 12 months Source: The Boston Consulting Group (BCG) comscore, Inc. Proprietary. 5
6 2016 was a year of mobile milestones The past year featured a number of milestones that indicate continued growth of smartphone and tablet consumption MARCH US mobile minutes exceed 1 billion for the first month ever JUNE Mobile apps surpass 50% of all digital time in the UK SEPTEMBER 7 out of 10 Brazilian internet users now access via mobile in a month APRIL US consumers spend 2x as many minutes on mobile as desktop for first month ever JULY Fastest growing app Pokémon Go achieves 55m US unique users in first month AUGUST 30% of Spanish internet users no longer access via desktop in a month DECEMBER UK records its most monthly mobile minutes of the year Source: comscore MMX Multi-Platform, January 2017 comscore, Inc. Proprietary. 6
7 We are now firmly in the app age As consumers have come to rely on mobile devices in more aspects of daily life, the customisable and refined experience of apps have led to their dominance within mobile consumption % mobile share of total digital minutes % app share of total mobile minutes USA Canada UK Spain Italy 87% 86% 82% 88% 87% 90% 89% Brazil Mexico 99% China Indonesia 91% Source: comscore MMX Multi-Platform, January 2017 comscore, Inc. Proprietary. 7
8 Apps readily fit into consumers daily lives The constant availability of mobile devices, coupled with ease of app usage are a perfect fit for consumers lives. Taking two major UK categories, we can see clear peaks in usage based on the need for these types of activity Share of UK app minutes by hour for social media / news categories Social News Social % of UK total mobile mins News LATE NIGHT 12am 7am EARLY MORNING 7am 10am DAYTIME 10am 5pm EARLY EVENING 5PM 8pm PRIME 8pm 12am Source: comscore Custom Solutions, Jan 2017, United Kingdom comscore, Inc. Proprietary. 8
9 Mobile is the go-to destination for most video viewers An analysis of YouTube s digital consumption in the UK reveals that mobile users now account for the majority of video minutes for users of all age and gender demographics % of YouTube video minutes (UK) Desktop Mobile 67% year olds year olds 80% 85% 69% year olds MALES FEMALES year olds 45+ year olds 45+ year olds 69% 60% Source: comscore Video Metrix Multi-Platform, United Kingdom, December 2016 comscore, Inc. Proprietary. 9
10 Mobile meets primary needs The degree to which categories are mobile first can be aligned with human need states from Maslow s Hierarchy of Needs comscore, Inc. Proprietary. 10
11 The uneven distribution of Mobile First The balance of audiences and consumption between desktop and mobile is dramatically different between categories, and can be loosely divided into four areas, shown here with data from Canada Category mobile users & minutes as a % of desktop total minutes 350% 300% 250% 200% 150% 100% 50% Massive mobile minutes, but there are still more of the audience on desktop Legacy desktop categories ENTERTAINMENT PORTALS SOCIAL NETWORKING NEWS / INFORMATION RETAIL BANKING CAREER SERVICES HEALTH APPAREL REAL ESTATE PERSONALS WEATHER Mobile-first categories in terms of both minutes and audiences RETAIL - FOOD Audiences have moved to mobile, but time spent has not yet followed 0% TRAVEL 0% 50% 100% 150% 200% 250% unique users Source: comscore MMX Multi-Platform, Canada, January 2017 comscore, Inc. Proprietary. 11
12 Maslow s hierarchy of needs (and how mobile meets it) This familiar theory from Abraham Maslow s 1943 paper "A Theory of Human Motivation is still considered an important framework in understanding behaviour. Many highly mobile-skewed digital behaviours fit these needs. Many key uses of mobile devices can be aligned with this set of needs SELF-ACTUALISATION Travel ESTEEM Newspapers, Social networking LOVE / BELONGING Personals SAFETY Banking, Weather, Career services PHYSIOLOGICAL Health, Apparel, Retail - food, Real estate comscore, Inc. Proprietary. 12
13 Physiological Physical requirements for human survival and health, which should be met first. These needs include air, water and food, as well as clothing and shelter for protection from the elements. comscore.com/mobile comscore, Inc. Proprietary. 13
14 Time spent on food retail grows faster than mobile overall Data from the UK shows how food purchasing (notably delivery services) has outpaced the growth of general mobile usage, as consumers still reach for their phones to order takeaways PHYSIOLOGICAL 2016 total mobile minutes (as a percentage of January 2015 total) Total Internet : Total Audience Retail - Food 140% 130% 120% 110% 100% 90% 80% January February March April May June July August September October November December Source: comscore MMX Multi-Platform, United Kingdom comscore, Inc. Proprietary. 14
15 Mobile provides largest top-of-funnel access to real estate In the majority of markets, real estate audiences are now larger on mobile than on desktop, but time still lags behind, suggesting mobile usage still largely occurs at the research stage of the purchase funnel PHYSIOLOGICAL Real estate category reach / mins (as a % of desktop reach / mins) 250% Mobile reach as % of desktop Mobiles mins as % of desktop Total desktop reach / mins 200% 150% 100% 50% 0% USA Canada UK Spain Italy Brazil Mexico Indonesia Source: comscore MMX Multi-Platform, January 2017 comscore, Inc. Proprietary. 15
16 Apparel shopping is a key driver of mobile retail Especially in North American and European markets, clothing is one of the top retail uses of mobile devices. Other top 5 top categories vary dramatically from market to market PHYSIOLOGICAL Reach / rank of apparel category among retail users Rank 50% 47% 40% 39% 37% 40% 1st 2nd 30% 28% 27% 3rd 20% 10% 20% 12% 11% 4th 5th 6th 0% USA Canada UK Spain Italy Brazil Mexico China Indonesia 7th Source: comscore MMX Multi-Platform, January 2017 comscore, Inc. Proprietary. 16
17 Smartphones enable daily healthy habits Formation of habits is a common theme for the health industry. The rise of activity trackers and health apps has seen associated increases in daily smartphone audiences for the health category PHYSIOLOGICAL Average daily smartphone users of the health category (% versus January 2016) January 2016 January % users +43% users +15% users USA Canada United Kingdom Source: comscore MMX Multi-Platform, January 2017 comscore, Inc. Proprietary. 17
18 Safety Mobile helps meet modern human needs for safety and security. This may mean physical security, such as safety from weather conditions, or financial and career security. comscore.com/mobile comscore, Inc. Proprietary. 18
19 Banking audiences trust mobile and depart desktop Despite historic consumer concerns around security on mobile, banking audiences now largely exceed desktop. More than 50% of these users have abandoned desktop entirely for their banking needs. SAFETY Mobile banking category visitors (as a % of desktop) 350% Mobile + Desktop Mobile only Total desktop visitors 300% 250% 200% 150% 100% 50% 0% USA Canada UK Spain Brazil Mexico China Indonesia Source: comscore MMX Multi-Platform, January 2017 comscore, Inc. Proprietary. 19
20 Career advancement in the palm of users hands The majority of jobs / career development users are on mobile platforms, with large numbers abandoning desktop altogether, possibly enjoying the relative privacy afforded, even in working hours SAFETY % of total career services users by platform USA Canada UK Spain Desktop only Multi-platform Mobile only Italy Brazil Mexico China Indonesia Source: comscore MMX Multi-Platform, January 2017 comscore, Inc. Proprietary. 20
21 Mobile is the primary tool for weather-watchers When location is a consideration, mobile unsurprisingly grows share of time / audiences. Coupled with time of day needs, weather is one of the most mobile-skewed categories in all markets observed SAFETY % of weather category / all users who are mobile only Mobile only % Mobile only % of Total Digital Population 100% 80% 70% 60% 40% 20% 14% 0% USA 7% 7% 33% 24% 24% Canada UK Spain Italy Brazil Mexico China Indonesia 35% 20% Source: comscore MMX Multi-Platform, January 2017 comscore, Inc. Proprietary. 21
22 Love / Belonging From romance to family connections, mobile communication has created more avenues to create, maintain and develop human relationships. comscore.com/mobile comscore, Inc. Proprietary. 22
23 Mobile dating has come of age Mobile consumption typically skews towards under 35s, but the personals category is more even, with per-user minutes among over 35s equaling or eclipsing younger users in many regions LOVE / BELONGING Mobile minutes per user for the personals category USA Canada UK Spain Italy Brazil Mexico China Indonesia AGES AGES 35+ USA Canada UK Spain Italy Brazil Mexico China Indonesia Source: comscore MMX Multi-Platform, January 2017 comscore, Inc. Proprietary. 23
24 Mobile has (continued to) unlock communication The wealth of options for communicating have seen channels such as video calling and instant messaging appearing to replace the standard SMS function, demonstrated here by data from Spain LOVE / BELONGING % of mobile users performing messaging functions 80 Exchanged text messages Made video call Used instant messaging service 70 +8% % % Source: comscore MobiLens, Spain, 3 Month Average comscore, Inc. Proprietary. 24
25 Messaging apps have exploded outside USA / Canada / UK The share of total mobile minutes among 5 key messaging apps (Facebook Messenger, WhatsApp, Line, WeChat, QQ messenger) has exploded, particularly in continental Europe, Latin America and Asia LOVE / BELONGING % of mobile minutes for 5 major messaging apps USA 1.4% Canada UK 2.3% 3.2% Spain Italy Brazil Mexico China Indonesia 12.9% 13.2% 14.5% 14.6% 14.9% 15.8% 0% 6% 12% 18% Source: comscore MMX Multi-Platform, January 2017 comscore, Inc. Proprietary. 25
26 Market adoption of messaging apps is a local consideration Facebook Messenger takes the majority of minutes among key messaging apps in the US, while WhatsApp dominates Europe and Latin America. More local brands have established footholds in China and Indonesia LOVE / BELONGING % of mobile minutes for 5 major messaging apps Facebook Messenger WhatsApp Line QQ Messenger WeChat USA Canada UK Spain Italy Brazil Mexico China Indonesia 0% 6% 12% 18% Source: comscore MMX Multi-Platform, January 2017 comscore, Inc. Proprietary. 26
27 Esteem Esteem represents the human desire to be accepted and valued by others, which can manifest in social behaviour as well as hobbies and interests. comscore.com/mobile comscore, Inc. Proprietary. 27
28 Social media accounts for around a third of mobile minutes Social media has always been seen as a major mobile category, and global figures confirm this, with this category accounting from between 20-40% of all minutes spent on mobile devices ESTEEM Social media category % of total mobile minutes % Social Media % Other 100% 80% 60% 40% 20% 21.4% 25.5% 21.6% 25.6% 28.5% 32.8% 38.6% 32.5% 0% USA Canada UK Spain Italy Brazil Mexico Indonesia Source: comscore MMX Multi-Platform, January 2017 comscore, Inc. Proprietary. 28
29 Content sharing on social media grows faster than personal updates Data from Spain shows that users are posting fewer personal statuses, and increasingly using social platforms to instead share content that reflects their views ESTEEM % of users sharing on social media (versus January 2016) Posted status update Posted link to website 20% 15% 10% 5% 0% -5% -10% -15% Jan-2016 Dec-2016 Source: comscore MobiLens, Spain, 2016 comscore, Inc. Proprietary. 29
30 Content consumption on social media grows in importance Spanish data also highlights that users have increased consumption of branded or public content on social media, while the amount of personal content has remained more or less flat ESTEEM % of users reading on social media (versus January 2016) 20% Read posts from people known personally Followed posted link to website Read posts from public figures / celebrities Read posts from organisations / brands / events 15% 10% 5% 0% -5% -10% -15% Jan-2016 Dec-2016 Source: comscore MobiLens, Spain, 2016 comscore, Inc. Proprietary. 30
31 Mobile social users more engaged with news content One impact of increased content sharing is that mobile social media users are more engaged with news. A larger share of these users visit the newspapers category than mobile users as a whole ESTEEM % of users accessing the newspapers category % of mobile users % of mobile social networking users USA Canada UK Brazil +3.5 Source: comscore MMX Multi-Platform, January 2017 comscore, Inc. Proprietary. 31
32 Self-actualisation The realisation of a person s potential. This can involve artistic pursuits, or achievement of aspirational desires such as travel. comscore.com/mobile comscore, Inc. Proprietary. 32
33 Apps & comfort with mobile transactions boost Travel Despite being high-value purchases, travel minutes are shifting in the direction of mobile. The refined user experience of apps is growing their share at an even faster rate, shown here in UK data SELF-ACTUALISATION % of all digital travel category minutes (2016) % Mobile % App 50% 47% 40% 42% 30% 20% 14% 10% 33% of mobile time 50% of mobile time 24% 0% January February March April May June July August September October November December Source: comscore MMX Multi-Platform, United Kingdom, January 2017 comscore, Inc. Proprietary. 33
34 Creative apps are flourishing on mobile around the world The combination of always-present, increasingly sophisticated cameras and streaming music services have made mobile devices a hotspot for consumers creative pursuits SELF-ACTUALISATION Total unique visitors for selected apps in selected countries Snapchat (USA) Spotify (UK) Instagram (Brazil) Source: comscore MMX Multi-Platform, January 2017 comscore, Inc. Proprietary. 34
35 Global and local variance Digital markets have often been seen as following relatively set path of development, led by the US, but mobile markets have evolved based on increasingly local needs and circumstances. comscore, Inc. Proprietary. 35
36 Audience composition The audience landscape varies dramatically between regions, with some markets such as Indonesia having almost skipped the desktop phase followed by others, resulting in huge mobile only populations % of unique users by platform Desktop Only Multi-Platform Mobile Only UK Canada USA China Italy Brazil Spain Mexico Indonesia 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: comscore MMX Multi-Platform, January 2017 comscore, Inc. Proprietary. 36
37 Who are the mobile only audience? Mobile only audiences (those who no longer use desktop in a month) skew younger in Latin America and Asia, while in North America and Europe they are comparatively evenly comprised of users from across age demographics % of unique users on mobile by age demographic % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% USA Canada UK Spain Italy Brazil Mexico China Indonesia Source: comscore MMX Multi-Platform, January 2017 comscore, Inc. Proprietary. 37
38 Time spent on mobile correlates inversely with age Younger users spend more time per user on mobile devices. Desktop time, while more evenly distributed, is also generally led by 18 24s (although the story can vary for overall minutes based on the size of each audience) Average mins per user (Jan 2017) 7000 Canada Desktop Mobile 7000 Brazil Source: comscore MMX Multi-Platform, January 2017 comscore, Inc. Proprietary. 38
39 Engagement does not always correlate with reach among top apps Messaging apps are in much greater evidence outside the US, and Indonesia features BBM at #4, despite its absence elsewhere. Overall minutes vary heavily from reach even among these most popular apps Reach % Total Mins USA UK Brazil Indonesia Facebook Facebook Messenger YouTube Google Search Google Maps Google Play Gmail Instagram Pandora Radio Snapchat 0 0 Facebook Facebook Messenger YouTube WhatsApp Messenger Google Search Google Play Google Maps Gmail Amazon Mobile ebay 0 0 WhatsApp Messenger Google Play YouTube Google Search Facebook Facebook Messenger Gmail Google Calendar Google Maps Instagram 0 0 Google Play WhatsApp Messenger YouTube BBM Google Search Gmail Line Instagram Facebook Google Maps 0 Source: comscore MMX Multi-Platform, January 2017 comscore, Inc. Proprietary. 39
40 Clearing the path ahead Mobile growth has been rapid, but in order to ensure continued expansion and enable businesses and consumers to get maximum value from these platforms, there is work to be done in several areas. comscore, Inc. Proprietary. 40
41 The m-commerce gap (and what s causing it) Mobile retailers have not fully capitalised on mobile share of consumer time, with a gap between share of minutes and dollar spend. Four of the top five reasons cited by consumers involve basic usability difficulties Desktop Mobile 69% 31% 20% 80% 49% gap Reasons for not converting 20.2% 19.6% 19.3% 19.6% 18.6% Security concerns Cannot see product detail Navigating is difficult Can t browse multiple screens / compare Too difficult to input details Source: comscore MMX Multi-Platform and e-commerce & m-commerce Measurement, Q comscore, Inc. Proprietary. 41
42 Summary comscore, Inc. Proprietary. 42
43 What this means for ADVERTISERS & AGENCIES An audience increasingly present within app environments presents new considerations for traditional display campaigns, but the scale of app audiences unlocks new opportunities for partnerships and creative solutions. The share of demographics and time on mobile devices needs to be understood in both a holistic and granular fashion in order to plan for, and leverage, the time spent on smartphone and tablet devices in combination with other media. Finally, brands may also begin to consider the growth of mobile only audiences and contemplate how they fit / can be reached within cross-platform reach and frequency objectives. Stay tuned In the coming months, comscore will introduce advanced mobile measurement in India, Malaysia, France, Germany and Argentina as we continue to expand our mobile measurement footprint across the globe. Stay tuned for more insights into how mobile devices are changing the way audiences consume content and connect. Join our list to receive our latest reports and news: munication-preference-center comscore, Inc. Proprietary. 43
44 What this means for PUBLISHERS Social sharing on mobile is key to content distribution beyond owned channels (which are increasingly led by applications with a high barrier to download). App monetisation is therefore important to revenue models, as advertising money inevitably follows user time. Balancing native and non-native formats within these environments will be an ongoing consideration for publishers. Content publishers can also benefit from the increased share of video minutes consumed on mobile devices, but must understand the types and durations of content that perform well on smaller screens among consumers who may be on the move or snacking on content. Stay tuned In the coming months, comscore will introduce advanced mobile measurement in India, Malaysia, France, Germany and Argentina as we continue to expand our mobile measurement footprint across the globe. Stay tuned for more insights into how mobile devices are changing the way audiences consume content and connect. Join our list to receive our latest reports and news: munication-preference-center comscore, Inc. Proprietary. 44
45 What this means for DIGITAL BUSINESSES Mobile consumers embrace functionality, particularly via apps, and are willing to engage with even high-value categories such as banking and travel on smaller screens. The challenge remains bridging the gap between time spent on mobile devices, and a willingness to complete transactions on them. Building trust and a seamless user experience, with easy access to relevant information can lower this hurdle. The growing trend for users to communicate via non-standard channels such as instant messaging and video chat could unlock new opportunities for customer service and care. Stay tuned In the coming months, comscore will introduce advanced mobile measurement in India, Malaysia, France, Germany and Argentina as we continue to expand our mobile measurement footprint across the globe. Stay tuned for more insights into how mobile devices are changing the way audiences consume content and connect. Join our list to receive our latest reports and news: munication-preference-center comscore, Inc. Proprietary. 45
46 Where the data comes from MMX MULTI-PLATFORM MOBILE METRIX VIDEO METRIX MULTI-PLATFORM MOBILENS CUSTOM SOLUTIONS Complete, unduplicated view of how digital audiences consume content across devices Total mobile audience behaviour on browsers and apps across mobile devices Unduplicated, digital video measurement of video consumption across devices Market insights into consumer behaviours, purchase intent and interests on mobile devices Tailored mobile and desktop insights to address unique business needs comscore, Inc. Proprietary. 46
47 Why comscore MASSIVE SCALE Our scale through the comscore census network, mobile and desktop panels enables measurement of real consumer behaviour. MULTI-PLATFORM AUDIENCES First to measure unduplicated audiences across desktops, smartphones and tablets. TRUSTED EXPERIENCE Over 17 years measuring audiences around the world. comscore, Inc. Proprietary. 47
48 About comscore, Inc. is a leading cross-platform measurement company that precisely measures audiences, brands and consumer behaviour everywhere. comscore completed its merger with Rentrak Corporation in January 2016, to create the new model for a dynamic, crossplatform world. Built on precision and innovation, our unmatched data footprint combines proprietary digital, TV and movie intelligence with vast demographic details to quantify consumers multiscreen behaviour at massive scale. This approach helps media companies monetise their complete audiences and allows marketers to reach these audiences more effectively. With more than 3,200 clients and global footprint in more than 75 countries, comscore is delivering the future of measurement. Shares of comscore stock are currently traded on the OTC Market (OTC:SCOR). For more information on comscore, please visit comscore.com. comscore is the appointed online measurement standard in six markets across the globe, including the UK, Spain, Finland, Indonesia, Malaysia and, recently Norway via the acquisition of the Kantar TNS internet audience measurement systems. Cautionary Note Regarding Forward-Looking Statements This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, but not limited to, expectations regarding the impact and benefits to comscore from Mobile Metrix and the broader MMX family of products, financial or otherwise. These statements involve risks and uncertainties that could cause our actual results to differ materially, including, but not limited to: the features and characteristics of the products, the rate of development of the digital marketing intelligence, Internet advertising and e-commerce markets; the growth of the Internet as a medium for commerce, content, advertising and communications; and the acceptance of new products and methodologies by the industry, including existing and prospective clients. For additional discussion of risk factors, please refer to comscore s respective Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K and from time to time other filings with the Securities and Exchange Commission (the SEC ), which are available on the SEC s website ( Stockholders of comscore are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date such statements are made. comscore does not undertake any obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after the date of this press release, or to reflect the occurrence of unanticipated events. comscore, Inc. Proprietary. 48
49 comscore.com/mobile To learn more contact us at comscore, Inc. Proprietary. 49
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