T H E S H I F T T O SMARTPHONE DOMINANCE

T H E S H I F T T O SMARTPHONE DOMINANCE

Background To understand mobile migration patterns and which factors will accelerate the shift to a mobile-first for consumers and advertisers W H A T S C O V E R E D Rapid Adoption: What are the drivers impacting the pace of smartphone ownership? Thinking Beyond Ownership: Now the majority of consumers own a smartphone, but so what? Factors expediting the shift: How should advertisers and publishers be building for a mobile majority first world? 2

Methodology: Quantitative + Analytics WHO 5,805 18-64 year old smartphone owners Data population and ownership US: 2,768 UK: 1,010 FR: 1,011 GR: 1,016 WHEN January 2015 WHAT 30-minute online survey FLURRY ANALYTICS Aggregated All Global Data from January 2015 3

What does a Smartphone Dominant consumer look like? Users MOBILE who FIRST. spend most of their times on their 67% smartphones, state that their smartphone and are replaces using their them PC, & is to replace the main their way they PC access the internet MOBILE LEAD. 75% of their digital time is a mobile device; +50% vs. an average smartphone owner MOBILE IMMERSED. +50% more activities done on a mobile devices vs. an average smartphone owner 4

Currently, 1/5 of users are Smartphone Dominant SMARTPHONE DOMINANT 18% TODAY 5

This 20% dominates the most sessions and time spent on mobile devices 49% 2% 3% 11% 19% DEVICE USAGE Light Medium Heavy: Smart Phone Dominant 30% 21% 87% 78% DEVICES SESSIONS TIME SPENT 6 Source: Flurry by Yahoo Analytics, mapped devices only, Jan 2015

Smartphone Dominant consumers are more likely to be younger Ownership HML Proportion Analysis Ownership Proportion Light User Medium User Heavy User AGE 13-17 10% 21% 28% 51% AGE 18-24 14% 22% 31% 47% AGE 25-34 13% 29% 36% 35% AGE 35-54 48% 25% 37% 38% AGE 55+ 15% 53% 30% 17% 7 Source: Flurry by Yahoo Analytics, mapped devices only, Jan 2015

Early Smartphone Dominants tend to be female Millennials and parents Proportion of subgroups that are Smartphone Dominant Age Groups 35-64 18-34 MALES 35-64 11% FEMALES 35-64 16% MALES 18-34 21% FEMALES 18-34 29% FEMALES W/ CHILDREN 18-34 37% 0% SMARTPHONE DOMINANT 50% 8

SMARTPHONE DOMINANT 18% TODAY 47% WITHIN 2-3 YEARS 57% 67% WITHIN AT SOME 5 YEARS POINT 33% NOT LIKELY TO BE 9

Factors that will expedite the shift to a Smartphone Dominant world Developing for larger screens Creating experience for cross-screen, not mobile only Adapting to trends in the app revolution 10

Factors that w ill expedite the shift t o a mobile lead world Developing for larger screens Creating experience for cross-screen, not mobile only Adapting to trends in the app revolution

As screen sizes grow, engagement will increase Average time spent per session Minutes FULL-SIZE TABLETS 9.74 MIN SMALL PHONES 3.8 MIN SMALL TABLETS 6.88 MIN MEDIUM PHONES 4.18 MIN The Industry responded with more Phablet choices 12 Source: Flurry by Yahoo Analytics, mapped devices only, Jan 2015

Phablets are the fastest growing device % Growth in usage (Jan 2014-2015) 148% AVERAGE 78% 38% 14% -16% -20% SMALL PHONES MEDIUM PHONES PHABLETS SMALL TABLETS FULL-SIZED TABLETS 13 Source: Flurry by Yahoo Analytics, mapped devices only, Jan 2014-2015

More efficient, better user experiences will accelerate the shift to Smartphone Dominance Factors that are holding back consumers from being Smartphone Dominant Among Future Smartphone Dominant Users 78% UX (easier to type, read, easier to browse/compare) It's more efficient to do 67% things on my computer than on my smartphone Data & Internet Improvements 54% Better Apps 44% 14

Factors that w ill expedite the shift t o a mobile lead world Developing for larger screens Creating experiences for cross-screen, not mobile only Adapting to trends in the app revolution

In fact, 2 in 5 smartphone owners go across devices daily to continue the same digital activity In the past day, I continued a digital experience across the following devices DEVICE TO DEVICE CURRENT SMARTPHONE DOMINATE USERS Smartphone to Computer 42% Computer to Smartphone Smartphone to Tablet Tablet to Computer Computer to Tablet 15% 16% 23% 28% 42% Will go across devices on at least one digital activity (Among total smartphone users) Tablet to Smartphone 14% 16

Communication, content & search related activities currently span across devices most Sequential Experience Activities For Any Device Mobile, Tablet & PC Among those who had a sequential activity OTHER MENTIONS Banking 29% EMAIL SOCIAL NETWORK CONTENT Shopping 29% 59% 44% 48% Playing games 28% Streaming music/radio 26% Using an IM or a texting app 26% ONLINE VIDEO PHOTOS SEARCH Work/school 20% 35% 29% 42% Finding directions/using GPS 20% 17

Despite high crossover, sequential experiences are not smooth, especially among the Smartphone Dominant % Smartphone Dominant Users Agree I wish the tasks that I started on one device could transfer 43% TOTAL more easily to another device 57% CURRENT SD 18 D4_12. How much do you agree or disagree with the following statements about devices? / Smartphone Dominant In Future (n=2913)

Factors that w ill expedite the shift t o a mobile lead world Developing for larger screens Recognizing that it s cross screen, not mobile only Adapting to trends in the app revolution

The majority of smartphone owners continue to download the same number of apps than past years Download 8 APPS a month App Downloads vs. A Year Ago 19% 58% Downloading fewer apps Downloading about the same Downloading more apps 23% 20

Task-based apps and replacing an existing app are top reasons users download new apps Motivations to download apps Among Total How did you hear about these apps Among Actively Downloading I need it for a specific task 53% Friend told me about it 41% Read about in an article 39% Replace an existing app 49% Saw an ad about it 39% 21

T H E S H I F T T O SMARTPHONE DOMINANCE