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2 Table of Contents Location-Based Trends 2-3 Mobile Shopping Behavior 4-5 Connected Device Adoption 6-9 Worldwide Location Highlights Special Report: Automotive On-the-go consumers comparison shop while in-store The Q4 Mobile Audience Insights Report examines location-based trends, mobile shopping trends, and connected device adoption. This quarter we examined three key emerging trends in the location and mobile markets. The first area reviews response to location-based messaging. The second key area looks at location specific shopping behaviors and the usages of emerging technologies. The third area evaluates the relationship between smartphone and tablet buying preferences. Key highlights include: 75% of the on-the-go audience take action after seeing a location-based message More%than%one%third%of%mobile%consumers%comparison%shop%on%while%in5store% In the United Kingdom, mobile devices make up 47% of Wi-Fi usage, surpassing laptops for the first time Source: JiWire, 1
3 Location-based trends: Content preferences Which would you prefer? Would you prefer ads that are locally relevant to you? Pay for content without ads Free, ad-supported content Source: JiWire, Q Yes No Source: JiWire, Key Insights 80% of the on-the-go audience prefer locally relevant advertising In Q3 2011, on-the-go consumers indicated that they preferred Free Content with advertising (84%) as opposed to Paid Content without advertising (16%). In, consumers indicate that they would also prefer to see advertising that is relevant to their location. Results, in both cases, are consistent across genders and age. Source: JiWire, and Q
4 Location-based trends: Response to location-based messaging Consumers who have taken action in response to a location specific message Behavior by Mobile Device Type iphone Android Blackberry Non- Smartphone Clicked on an ad 34% 32% 32% 25% Yes No Searched for the nearest location Researched the product 17% 25% 17% 15% Find%a% Store% 22% 24% 20% 13% Visited the website 20% 23% 19% 14% Visited the store 18% 22% 18% 15% Made a purchase 19% 19% 21% 18% Source: JiWire, Source: JiWire, Key Insights 75% of mobile consumers take action after seeing a location specific message The top three actions overall include clicking on a location specific ad (31%), searching for the nearest location (21%) and/ or conducting additional research (21%). Smartphone owners, in general, show higher response than non-smartphone owners to locationized messaging. Behavior further varies by smartphone device type. In addition to clicking on an ad, iphone users are most likely to conduct additional research (22%), Android users search for the nearest location (25%), and Blackberry users immediately make a purchase (21%). emarketer research reveals a close relationship between research and purchase for the on-the-go smartphone audience*. Source: JiWire, emarketer Local Commerce: How Consumers Find Nearby Retailers, Nov
5 Mobile shopping behavior: In-store shopping behavior 34% Which have you done when shopping in-store with your mobile device? Age Breakdown < % 21% 14% 12% 6% Comparison Shopped Searched for reviews Searched for a coupon 28% 39% 38% 36% 28% 22% 31% 34% 28% 20% 19% 26% 25% 19% 13% Comparison Shopped Searched for reviews Searched for coupons Watched videos, demos, etc Purchased Searched for on a mobile a friend s phone instead recommendation of the store Source: JiWire, Purchased on mobile phone instead of store Searched for a friend s recommendation 15% 13% 14% 9% 9% 9% 7% 6% 5% 4% Source: JiWire, Key Insights 34% of consumers comparison shop on their mobile devices while in the store Comparison shopping is consistently the lead in-store activity category across ages and genders. Consumers between the ages of are the most likely to comparison shop in-store (39%) and purchase on their mobile devices instead of in the store (13%), commonly referred to as the showroom tendency. Shoppers are also four times more likely to search for reviews (27%) than to search for a friend s recommendation (6%). 21% of the on-the-go audience also searched for coupons while in-store. comscore estimates that 37% of all smartphone owners have used location-based coupons, and an additional 42% would be interested in doing so*. Source: JiWire, *comscore Handheld Shopping: How Mobile is Changing the Retail Environment, Dec 7,
6 22% 18% 18% Mobile shopping behavior: Coupon and QR code redemption Which of the following actions have you taken in the past 90 days? Does your mobile device have a Quick Response (QR) scanner? 34% 38% 11% Redeemed an online coupon Redeemed a newspaper coupon Redeemed a mobile coupon Scanned a Quick Response code Used a mobile payment system None Source: JiWire, Yes No I don t know Source: JiWire, Key Insights Mobile commerce is making strong in-roads, evident by coupon and payment adoption 34% of consumers have redeemed an Online coupon in the past 90 days, followed by newspaper coupon redemption (22%), then mobile coupon redemption (18%). Mobile coupon redemption is nearing newspaper coupon redemption thresholds. Digital (online + mobile) couponing is leading print couponing as a channel overall. 18% of all consumers have scanned a Quick Response (QR) code, representing half of consumers who know they have QR scanners. With a 33% of consumers not knowing if they have mobile QR scanners there is much room for growth in this area. 11% of consumers have reported using a mobile payment system, such as Google Wallet. Source: JiWire, 5
7 Connected device adoption: Public Wi-Fi network usage by device Connections by Device: U.S. Connections by Device: U.K. 56.0% 32.8% 11.2% 44.4% 47.2% 8.4% Tablet Laptop Smartphone Tablet Laptop Smartphone Source: JiWire, Source: JiWire, Key Insights The public Wi-FI device mix continues to change in In the U.S., laptops still represent the majority of Wi-Fi connections at 56%. The remaining 44% is made up by smartphones and tablets. In the U.K., however, smartphones now account for 47.2% of connections., surpassing laptops at 44.4.%. Tablet connections represent similar proportions in both U.S. and the U.K. at 11.2% and 8.4%, respectively. Source: JiWire internal network data, 6
8 Connected device adoption: U.S. highlights Top 10 Wi-Fi Mobile Device: Top Wi-Fi Mobile OS: Q4 Mobile Device Top 10 % of Ad Requests Q3 % Change in Market Share Q4 Mobile Device OS % of Ad Requests Q3 % Change in Market Share 1 Apple iphone 41.1%% 1-0.8% 2 Apple ipad 30.9%% % 3 Apple ipod Touch 12.1%% 3-2.0% 4 HP TouchPad 0.9%% % 5 Kindle Fire 0.9%% % 6 BlackBerry Torch 0.7%% 5 0.0% 7 HTC Evo 0.6%% % 8 Samsung Galaxy Tab 0.5%% % 9 Samsung Galaxy S 0.4%% % 10 HTC Inspire 0.3%% % 1 ios 83.1% 1% + 3.2% 2 Android OS 12.9% 2% + 1.9% 3 RIM OS 2.2% 4% + 0.0% 4 Windows OS 0.8% 3% - 4.5% 5 WebOS 0.6% 7% + 0.2% 6 Symbian 0.3% 6% - 0.1% 7 Bada OS 0.0% 9% 0.0% 8 Linux 0.0% 12% 0.0% Source: JiWire, Source: JiWire, Key Insights: Many changes seen in Top 10 mobile devices in Two new tablets enter the Top 10: the HP Touchpad (0.9%) and the Kindle Fire (0.9%) The Apple ipad shows the highest increase of all devices, growing by 7.1%. ios and Android increases in market share while Windows OS decreased ios and Android OS increase by 3.2% and 1.9%, respectively, at the expense of Windows OS which drops by 4.5%. 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. Source: JiWire, 7
9 Connected device adoption: U.K. highlights Top 10 Wi-Fi Mobile Device: Top Wi-Fi Mobile OS: Q4 Mobile Device Top 10 % of Ad Requests Q3 % Change in Market Share Q4 Mobile Device OS % of Ad Requests Q3 % Change in Market Share 1 Apple iphone 51.0% % 1 ios 83.2% % 2 Apple ipad 27.1% % 3 Apple ipod Touch 5.0% 2-5.4% 2 Android OS 11.9% 2-4.7% 4 HTC Desire 1.7% 5-0.1% 3 RIM OS 3.1% % 5 Samsung Galaxy S II 1.2% % 4 Symbian OS 1.0% 6 0.0% 6 Samsung Galaxy Tab 1.0% % 5 Windows OS 0.6% 3-7.8% 7 Samsung Galaxy S 0.8% 8-0.6% 8 BlackBerry Torch 0.7% % 6 webos 0.2% % 9 HTC Sensation 0.6% + 0.6% 7 Bada OS 0.1% 8-0.1% 10 BlackBerry Bold 0.5% % 8 Linux OS 0.0% % Source: JiWire, Source: JiWire, Key Insights: ipad makes significant market share gains in the fourth quarter of 2011: The ipad increases by 16.7% to secure its position as the No. 2 ranking device in the U.K. Blackberry also reports increases with the Torch and Bold reaching the Top 10 for the first time. ios makes large market share gains in the fourth quarter of 2011: ios gains 12.1% market share in ending a 2 quarter run of consecutive drops. RIM sees gains of 1.6%. Android and Windows OS show large decreases in market share of 4.7% and 7.8%, respectively. Note: JiWire measurement includes all mobile devices in order to provide a complete view of how the on-the-go audience is connecting. * OS: Operating System. Source: JiWire, 8
10 Connected device adoption: Evolving OS ecosystems What kind of tablets are smartphone owners buying? iphone owners Android owners Blackberry owners ipad 89.3 % Blackberry Playbook 0.4 % ipad 60.8 % Blackberry Playbook 0.3 % ipad 77.9 % Blackberry Playbook 3.7 % Android Tablets 7.4 % Undecided 2.9 % Android Tablets 27.1 % Undecided 11.8 % Android Tablets 12.5 % Undecided 5.9 % Source: JiWire, Key Insights iphone and Android smartphone consumers show strong brand affinity to operating systems 89.3% of on-the-go iphone users either own or plan to purchase an ipad. Roughly 10% of consumers are considering other devices including Android-based tablets (7.4%) or the Blackberry Playbook (0.4%) with 2.9% overall still undecided. The majority of Android owners also prefer the ipad (60.8%), though nearly a third of of consumers own or plan to buy an Android-based device (27.4%); 11.8% of consumers are still undecided. By contrast, 3.7% of Blackberry users own or plan to purchase a Blackberry Playbook. The remaining 90.4% are interested in other tablet models, with the ipad being the majority preference (77.9%), and 12.5% interested in Androidbased tablets; 5.9% are still undecided. Regardless, ipad dominates the Tablet ecosystem. Source: JiWire, 9
11 Worldwide location highlights: Public Wi-Fi locations Worldwide public Wi-Fi locations: ,929 Worldwide quarterly growth in public Wi-Fi locations 414, , , , , , , , Q Q Q Source: JiWire, *Base starting at 230,000 Source: JiWire, Key Insights: Worldwide public Wi-Fi locations continue to grow throughout 2011: Quarterly growth of 5.4% from Q to. Annual growth of 64.8% from Q to. Total public Wi-Fi locations have more than doubled since Source: JiWire, 10
12 Worldwide location highlights: Public Wi-Fi locations Q4 Country # of Locations Q % Change (from Q3) 1 United Kingdom 181, % 2 United States 110, % 3 China 103, % 4 South Korea 83, % 5 France 35, % Public Wi-Fi business models: Worldwide 77.7 % 77.6 % 22.3 % 0.1 % Paid Free Public Wi-Fi business models: U.S. Increase in Paid 6 Taiwan 19, % 7 Russian Fed. 16, % 8 Japan 15, % 9 Germany 14, % 10 Sweden 9, % 77.1 % 76.2 % 22.9% 0.9 % Paid Free Increase in Free Source: JiWire, Source: JiWire, South Korea, Taiwan and Sweden have highest growth rates in South Korea keeps the No. 4 position while Taiwan increases to No. 6, with growth rates of 20.2% and 34.9% respectively. Sweden produces a 16.6% increase in market share but remains in the No. 10 spot. Free locations continue to see growth in the U.S. but remain consistent worldwide Free locations in the U.S. have increased by 0.9%, from 76.2% in Q to 77.1% in, while total free locations Worldwide show a decrease of 0.1%. Source: JiWire, 11
13 Special Report: Automotive 12
14 Automotive trends: Purchasing intent and behavior Do you plan to purchase a car in the next 12 months? After seeing an ad, which of the following actions have you taken? 30% 23% 20% 13% 12% YES Visited the website Clicked on the ad Scheduled an appointment Gone directly to the dealer None of the above Source: JiWire, Source: JiWire, Key Insights 25% of the on-the-go audience plans to purchase a car in the next 12 months 80% of consumers report responding to an advertising message: 30% have visited the website, 23% have clicked on an ad, 13% have scheduled an appointment, and 12% have gone directly to the dealer. While overall results rank similarly by gender, women were fifty percent more likely to schedule an appointment than men 17% compared with 11%, respectively. Source: JiWire, 13
15 Automotive trends: Locationbased behavior Which mobile services would help the most with your auto-buying decision? Demographic Breakdown < % 13% 23% 3% 45 % 27% 66 % 23% 82 % 16 % 39 % 9 % 9 % 77 % 13 % 10 % 15 % 19 % See Product Specs Find a Dealer Check Availability of Make or Model Watch product videos Interactive Tools See Product Specs 24% 29% 26% 29% 22% Find a Dealer 32% 19% 18% 20% 26% Check Availability Watch Product Videos 19% 23% 24% 21% 25% 13% 15% 10% 12% 15% 28 % 14 % 58 % Other Use Interactive Tools 7% 11% 15% 13% 9% Source: JiWire, Other 1% 3% 6% 4% 3% Key Insights 46% of On-the-Go consumers are seeking location-specific information In-market shoppers view the find a dealer and check availability as the most important location-based mobile services, garnering 23% of respondents, respectively. Women are also the most likely to use location-based tools: 26% believed finding a dealer was the most important, followed closely by checking availability of a make or model at 25%. Men, by contrast, were more interested in reviewing product specs. Price comparison and financing tools were listed as other important features consumers would like to have. Source: JiWire, 14
16 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 fourth quarter of 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 50 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 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 5,000 customers randomly selected across JiWire s Wi-Fi Media Channel in October December 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 October December Quarterly public Wi-Fi location rankings and business model distributions are based on the final day of the quarter.
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