Insights JiWire Mobile Audience Insights Report Q4 2012

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2 Table of Contents Mobile Audience Trends 2-6 Connected Device Adoption & Trends 7-10 Worldwide Location Highlights Public Wi-Fi Trends % of mobile consumers are influenced by the availability of in-store Wi-Fi The Q4 Mobile Audience Insights Report examines leading consumer trends such as location and mobile shopping trends, connected device adoption, as well as our ongoing Wi-Fi usage habits. This quarter we uncovered several valuable insights about the connected shopper and how mobile is influencing their shopping behaviors specifically around why they connect while in-store, where they shop, and how this impacts retailers. In addition, the report examines mobile device proliferation and the impact rapid tablet adoption is having on consumer mobility and behavior, as well as public Wi-Fi data around consumer demand and global trends. Key highlights include: The top 4 activities shoppers use their mobile devices for while in a store are focused on enhancing their shopping experience. Women are using mobile in stores more than men to find the best deal with price comparison & store promotions being their top two activities. Mobile wallet usage has increased 38% in the last year with PayPal as the leader. 72.2% of tablet owners plan to buy another one. Mobile tablet & smartphone usage on public Wi-Fi increased 53% in the last 12 months. 1

3 Mobile Audience Trends: The Connected Shopper 37 % Have you used a mobile wallet? 38 % growth 51 % In the past 30 days, which of the following mobile wallets have you used to purchase in-store with your mobile phone? 23 % 32% 41 % 29 % Q % 49 % 14 % 20 % 9 % 10% 14 % 11 % 8 % 9% 1 % 4 % 5% Q Yes No Paypal Amazon Payments Google Wallet Isis Other Haven t used What s a Mobile Wallet? Haven t used but would Mobile wallet usage has grown 38% since Q % of consumers surveyed have used PayPal, 3x the amount that have used Google Wallet (10%). While mobile wallet usage has increased from Q1 to, 11% of mobile users surveyed don t know what a mobile wallet is. The inclusion of Amazon Payments indicates consumers may have a broad definition of mobile wallets, or consider it to be a mobile wallet because they use it for purchasing from Amazon while in-store. 2

4 Mobile Audience Trends: The Connected Shopper Where do you use your mobile device the most for shopping? 44.4 % 50.1% All Men 35.4 % 25.9 % 21.9 % 32.7 % Women 14.2 % 15.1 % 13.6 % 14.1 % 16.1 % 10.7 % 14.1 % 12.9 % 16.3 % Electronic Retailers Clothing Retailers Mall Big Box Retailers Restaurants Consumers are nearly 2x as likely to use their mobile device for shopping while in an electronic store (44.4%) than the other locations, with clothing retailers having the next highest usage at 25.9% Men use their mobile device more than women at electronic and big box retailers. Women lead men in location mobile usage at clothing retailers and restaurants. 3

5 Mobile Audience Trends: In-store Connectivity Impact on Shopping Would the availability of in-store Wi-Fi influence where you shop? 20.5 % 18.9 % 14.0 % 22.4 % 13.6 % 22.8 % 22.6 % 31.4 % 48.1 % 79.5 % 33.0 % 37.7 % 30.2 % 29.2 % 30.5 % 33.1 % Yes Somewhat No 48.1 % 48.2 % 47.3 % 57.2 % 46.7 % 44.4 % < Yes Somewhat No 79.5% of mobile consumers are influenced by the availability of in-store Wi-Fi when deciding where to shop Consumers age & are most influenced by the availability of in-store Wi-Fi at 86%. At least 44% of all age groups indicated that in-store Wi-Fi definitely influences where they shop. Even the least interested shoppers, age 45+, are over 77% influenced by in-store Wi-Fi availability. 4

6 Mobile Audience Trends: In-store Connectivity If you use in-store Wi-Fi, what do you use it for? 93.6 % 63.9 % 59.1 % 54.2 % 59.3 % 56.2 % 41.8 % 35.5 % 37.5% Female smartphone owners Male smartphone owners 30.6 % 28.5 % 33.8 % 24.5 % 23 % 17.1 % 19.6 % 15.2 % 22.2 % 15.4 % of smartphone owners report using their mobile device while in-store Price comparison Find product reviews Deals, offers, coupons to use in-store Browse the store's website Browse the web (unrelated to the store or products) Communicate with friends Find other colors/options Find item elsewehre Share posts via social media The top four mobile usage categories reveal that shoppers are primarily using in-store connectivity to enhance their shopping experience Contradicting many concerns that connectivity leads to showrooming, the fourth highest activity was traffic to the store s own website. Women outranked men in 7 of the 9 activities, indicating that they are more active in-store Women use in-store connectivity to price compare and find deals, while men research product reviews and browse the store s website. 5

7 Mobile Audience Trends: Retail Brand Audience Comparison Top Chains that Top Chains that Customers Frequent 1. Starbucks 6. Gymboree 2. Subway 7. Banana Republic 3. Sunglass Hut 8. Lids 4. American Eagle 9. McDonald s 5. Bank of America 10. The Children s Place Customers Frequent 1. Gap 6. Sunglass Hut 2. Radio Shack 7. Abercrombie & Fitch 3. Victoria s Secret 8. McDonald s 4. Express 9. AT&T 5. Ruby Tuesday 10. LensCrafters 35 % 65 % 60 % 40 % 20 % 3 % of Ann Taylor customers shop at Banana Republic of Banana Republic customers shop at Ann Taylor Female Male Female Male Ann Taylor customers are 7x more likely to shop at Banana Republic than Banana Republic customers are to shop at Ann Taylor 20% of Ann Taylor customers go to Banana Republic, while only 3% of Banana Republic customers go to Ann Taylor. 65% of Ann Taylor patrons are female, while 60% of Banana Republic patrons are male. 35% of Ann Taylor shoppers are men despite it being a women s retailer. While 44% of Banana Republic customers are parents compared to 25% of Ann Taylor customers, Ann Taylor shoppers top 10 retailers include children s stores like Gymboree and The Children s Place. 6

8 Connected device adoption: U.S. highlights Top 10 Wi-Fi Mobile Devices: Top Wi-Fi Mobile OS: Q4 Rank Mobile Device Top 10 % of Ad Requests Rank % Change in Market Share Q4 Rank Mobile Device OS % of Ad Requests Rank % Change in Market Share 1 Apple iphone 36.0% % 2 Apple ipad 28.5% % 3 Apple ipod Touch 6.4% % 4 Samsung Galaxy S III 4.6% % 5 Samsung Galaxy S II 2.6% % 6 Kindle Fire 2.3% % 7 Epic 4G 0.8% % 8 Blackberry Torch 0.8% % 9 EVO 4G 0.8% % 10 Droid Razr 4G 0.7% % 1 ios 68.4% % 2 Android OS 27.9% % 3 RIM OS 2.5% % 4 Windows OS 0.7% % 5 Symbian OS 0.2% % 6 Linux OS 0.1% % 7 WebOS 0.1% % In Apple devices remained consistent in market share while Samsung continues to see increases of over 300% for the second quarter in a row Apple devices remain in the top 3 spots, with iphone, and ipod Touch accounting for 70.9% of market share. The Kindle Fire continues to remain the strongest challenger to the ipad in the tablet market segment. ios and Android continue to dominate the market as the top Wi-Fi mobile operating systems. Windows Surface wasn t in the top 10 in but our research indicates quick market adoption based on purchase intent (see page 8). Furthermore, Android gained market share for the second quarter in a row. 7 Note: JiWire measurement includes all mobile device types in order to provide a complete view of how the on-the-go audience is connecting. * OS: Operating System.

9 Connected Device Trends: Tablet Adoption Yes No If you already own a tablet, do you plan to purchase another? 27.8 % 72.2 % If so, which type do you plan to buy? 74.6 % 11.9 % 8.8 % ipad Samsung Galaxy Windows Surface 77.3 % 65.4 % 8.5 % 6.9 % 3.8 % Kindle Fire Android Tablet Blackberry Playbook Men who plan to buy Women who plan to buy 8.1 % Other Device proliferation continues to grow with 72% of tablet owners planning to purchase an additional tablet ipad is the clear leader with 74.6% of respondents planning to purchase, with the Samsung Galaxy tablet coming in second with 11.9% planning to purchase. Although only in the market a short time, the Windows Surface Tablet ranks 3 rd in purchase consideration, ahead of the Kindle Fire. 8

10 Connected Device Trends: Public Wi-Fi Usage Wi-Fi Usage by Device Growth of Smartphone Connections by Venue 12 % 26 % 62 % 14 % 31 % 55 % 17 % 16 % 19 % 35 % 40 % 39 % 48 % 44 % 42 % Q Q Q Q Tablet Smartphone Laptop Airports Restaurant Mall Library Café Hotel % smartphone connections Q % smartphone connections % growth in smartphone connections 35 % 38 % +8.6 % 72 % 78 % +8.3 % 51 % 55 % +7.8 % 32 % 34 % +6.3 % 52 % 55 % +5.8 % 29 % 29 % 0 % Mobile device usage on public Wi-Fi increased 53% in the last 12 months Tablet and smartphone usage have increased by 58% and 50% year over year, respectively, while laptop usage has declined by 32%. Mobile devices continue to represent the majority of Wi-Fi usage for the third quarter in a row Smartphones and tablets now represent 58% of all public Wi-Fi usage, up from 38% in Q Laptop usage, by contrast, dropped to 42% of usage a relative decrease of 12.5% from 1H 2012 to 2H Smartphone Wi-Fi usage has increased by at least 5.8% in all locations except hotels, which remained the same. 9

11 Connected Device Trends: Overall Device Usage by Location Percentage of Public Wi-Fi Smartphone and Tablet Connections by Venue 13 % 21 % 32 % Smartphone 9 % 13 % 34 % 38 % 13 % 11 % 24 % 56 % 50 % Tablet Laptop 10 % 20 % 78 % 66 % 55 % 55 % 38 % 34 % 30 % Restaurants Hospital Mall Café Airport Library Hotel There is a direct correlation between where people connect to public Wi-Fi and the device they use, influenced by portability, dwell time, and usage Tablet usage is highest in travel-oriented locations like airports (24%) and hotels (20%). Smartphone usage on public Wi-Fi is highest at places like restaurants (78%), hospitals (66%), malls (55%) & cafés (55%), where they are more on-the-go, and unlikely to carry larger, heavier devices. Locations where people have more dwell time reflect higher laptop usage, such as libraries (56%) and hotels (50%). 10

12 Worldwide Location Highlights: Public Wi-Fi Locations Worldwide public Wi-Fi locations: Worldwide quarterly growth in public Wi-Fi locations: 820, , , , , , , , , Q Q Q *Base starting at 230,000 Worldwide public Wi-Fi locations continue to grow in the fourth quarter of 2012 Quarterly growth of 0.78% from Q to, but 5.3% since Q Annual growth of 20.1% from Q to, and 18.5% growth in

13 Worldwide location highlights: Public Wi-Fi locations Public Wi-Fi business models: Worldwide Q4 Rank Country Number of Locations Q Rank % Change 21.7 % 1 South Korea 186, % 2 United Kingdom 182, % 78.3 % Paid Free 3 United States 134, % 4 China 104, % 5 France 35, % 6 Taiwan 24, % 7 Russian Fed. 16, % Public Wi-Fi business models: U.S % 8 Japan 15, % 9 Germany 15, % 10 Sweden 9, % 78.9 % Paid Free 78.9% of the U.S. public Wi-Fi market is free or ad supported The U.S. has shown significant growth in free Wi-Fi hotspots over the course of 1 year, growing by 20% since Q4 2011, while free locations Worldwide have remained between 19 25%. South Korea remained in the #1 spot for the second quarter in a row with the United Kingdom as a close second 12

14 Public Wi-fi Trends: Free vs. Paid Connectivity When connecting to the internet, which would you prefer? What sort of sponsor engagement would you be willing to do for free Wi-Fi? 8.4 % 7.4 % 64.8 % 84.2 % 41.4 % 30 % 20.2 % 14.8 % Free, adsupported Wi-Fi Paid Wi-Fi Pay for higher speed Watch a 30 second video Complete a survey View an ad about a retailer Share on social media Download an app 84.2% of mobile consumers prefer complimentary, ad-supported Wi-Fi over paid Wi-Fi Of those who prefer free Wi-Fi, the majority (64.8%) prefer watching a 30 second video, followed by completing a survey (41.4%) and seeing a brand promotion (30%). 8.4% of consumers would rather pay for Wi-Fi and 7.4% are willing to pay for a faster connection. 13

15 The Q4 Insights Report highlights recent mobile market audience usage trends offering advertisers insights they can apply to their mobile strategies and campaigns. JiWire is the leading location-powered mobile advertising and data platform, leveraging proprietary historical and present data enabling advertisers to effectively engage their desired audience across all mobile devices at scale. JiWire has been an innovative leader in evolving mobile advertising and delivering mobile audiences since As of the release of this report our data platform creates audience profiles from over 585 million devices and more than 7 billion data points, engaging more than 55 million unique users monthly across smartphones, tablets and laptops. For questions, interview requests, additional info or to make recommendations for future reports, please contact us at Insights@jiwire.com. Methodology: JiWire s Mobile Audience Insights Report is based on data compiled from three sources; a survey of more than 1,400 randomly selected customers across JiWire s 315,000 public Wi-Fi network, as well as the billions of advertising impressions from our combined Wi-Fi and mobile advertising platform. The report is based on data collected from Nov 12 through Dec 12. Quarterly public Wi-Fi location rankings and business model distributions are based on the final day of the quarter.

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