Our Mobile Planet: New Zealand

Our Mobile Planet: New Zealand Understanding the Mobile Consumer May 2012

Google Confidential and Proprietary

Executive Summary Smartphones have become an indispensable part of our daily lives. Smartphone penetration is currently at 44% of the population and these smartphone owners are becoming increasingly reliant on their devices. 46% access the Internet every day on their smartphone and most never leave home without it. Implication: Businesses that make mobile a central part of their strategy will benefit from the opportunity to engage the new constantly connected consumer. Smartphones have transformed consumer behavior. Mobile search, video, app usage, and social networking are prolific. Smartphone users are multi-tasking their media with 80% using their phone while doing other things such as watching TV (54%). Implication: Extending advertising strategies to include mobile and developing integrated cross-media campaigns can more effectively reach today’s consumers. Smartphones help users navigate the world. Appearing on smartphones is critical for local businesses. 80% of smartphone users look for local information on their phone and 88% take action a result, such as making a purchase or contacting the business. Implication: Ensuring that clickable phone numbers appear in local results and leveraging location based services on mobile make it easy for consumers to connect directly with businesses. Smartphones have changed the way consumers shop. Smartphones are critical shopping tools with 66% having researched a product or service on their device. Smartphone research influences buyer decisions and purchases across channels. 27% of smartphone users have made a purchase on their phone. Implication: Having a mobile optimized site is critical and a cross-channel strategy is needed to engage consumers across the multiple paths to purchase. Smartphones help advertisers connect with consumers. Mobile ads are noticed by 86% of smartphone users. Smartphones are also a critical component of traditional advertising as 57% have performed a search on their smartphone after seeing an offline ad. Implication: Making mobile ads a part of an integrated marketing strategy can drive greater consumer engagement. Google Confidential and Proprietary

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Understanding the Mobile Consumer This survey is designed to gain insights into how consumers use the Internet on their smartphones In detail: •  Facts and figures about smartphone adoption and usage •  Internet usage in general, search, video, social networking, mobile advertising and m-commerce behavior via smartphones •  This country report is part of a global smartphone study conducted in multiple countries. Visit OurMobilePlanet.com for access to additional tools and data

DAY

How are smartphones used in daily life?

How do consumers multi-task with their smartphones?

What activities are consumers conducting on their smartphones?

What role do smartphones play in the shopping process?

How do consumers respond to ads, offline and on mobile?


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Agenda

1

Smartphones are Indispensable to Daily Life

2

Smartphones Have Transformed Consumer Behavior

3

Smartphones Help Users Navigate the World

4

Smartphones Change the Way Consumers Shop

5

Smartphones Help Advertisers Connect with Customers


4

SMARTPHONES ARE INDISPENSABLE TO DAILY LIFE


5

Smartphone Penetration in New Zealand

44%

adoption

Base: National representative population 16+, n= 1.000 Q1: Which if any of the following devices do you currently use?


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Smartphones are a Central Part of Our Daily Lives

46%

have used their smartphones every day in the past 7 days

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000 Q18: Thinking about the last seven days on how many days were you online with ...?


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Smartphones are Always On, Always with You

73%

don’t leave home without their device Base: Private smartphone users who use the internet in general, Smartphone n= 1.000 Q52: To what extent do you agree to each of these statements?, Top2 Boxes; scale from 5 – completely agree to 1 – completely disagree. “I don’t leave house without my smartphone”


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Smartphones Are Used Everywhere Place of Use

97%

Home

80%

On the go

97% At home

80%

On the go

64%

76%

Work In a store

64%

Café or coffee shop

64%

Restaurant

56%

At a social gathering

56%

Airport

55% 44%

Public Transport Doctor's office

35%

In a store

School

Base: Private smartphone users who use the Internet in general, Smartphone n= 1.000 Q16: Where do you use your smartphone? Please select first at which locations you ever use it - even if only seldom.

24%


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Allowing Users to Stay Fully Connected

Emailing

59%

access the Internet on their smartphones at least once a day

51%

45%

Social Networking Sites

Search Engines

Video sharing Sites

41%

24%

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000 Google Confidential and Proprietary Q9: Using the scale below, please indicate approximately how frequently you use the Internet in general and specific services and types of websites through your browser or apps on your smartphone? Responses reflect at least once a day.

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Smartphone Use is Expected to Increase

% 35

expect to use their smartphone more to access the Internet in the future

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000 Q21: Thinking about the next 12 months, what do you expect, how will you be using the internet with your…?


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Smartphones Have Become so Important to Consumers that …

24%

would rather give up TV than their smartphone

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000 Q52: To what extent do you agree to each of these statements?, Top2 Boxes; scale from 5 – completely agree to 1 – completely disagree. I would rather give up TV than my smartphone. “I would rather give up my TV / desktop PC than my smartphone”


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SMARTPHONES HAVE TRANSFORMED CONSUMER BEHAVIOR


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Smartphones are a Major Access Point for Search

38% search on their smartphones every day

Base: Private smartphone users who use the internet in general and who are searching via search engine, Smartphone n= 925 Q31: How often do you do searches (via Google, Yahoo!, Bing, etc.) on your ... ?


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Smartphones Inform Our Daily Life

35%

Restaurants, Pubs & Bars

27% Travel

53% Product Info

20%

Job Offers

17%

Apartments, Housing info

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000 Q23: Which of the following activities do you do with your smartphone? Please indicate whether you ever do this at all.


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Smartphones are a Multi-Activity Portal

80%

Communication

55%

Stay Informed

71%

Emailed (sent or read) Accessed a social network (e.g. updated a status message checked messages or friends' pages)

Read news on newspaper or magazine portals Reviewed websites blogs or message boards

63%

46% 36%

68%

Browsed the Internet

86% Entertainment

61%

Listened to music Played games Watched videos on a video sharing website (e.g. YouTube.com)

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000 Q23: Which of the following activities do you do with your smartphone? Please indicate whether you ever do this at all.

59% 47%


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App Usage is Ubiquitous

25 Base: Q24: Base: Q25: Q26:

9 6

apps installed on average

apps used in the last 30 days

paid apps installed on average

Private smartphone users who use the internet in general, Smartphone n= 1.000 How many apps do you currently have on your smartphone? Google Confidential and Proprietary Private smartphone users who use the internet in general and who have at minimum one app on their smartphone, n= 967 And of the apps you currently have installed on your smartphone, how many have you used actively in the last 30 days? And of the apps you currently have installed on your smartphone, how many have you purchased for a certain amount in an app store?

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Smartphones Users are Avid Video Watchers

62% watch video

13% use video at least once a day

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000 Q35: How often do you watch videos via websites or apps (e.g. short video clips, videos of TV shows, TV movies online, etc.) on your ... ?


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Smartphone Users are Frequent Social Networkers

77% visit social networks

39% visit at least once a day

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000 . Q38: How often do you visit a social network (via websites or apps) on your ... ?


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Smartphones Are Used While Multi-tasking with Other Media Listen to music

50%

Read a book

11%

% 80 Use smartphone while…

Watch movies

31%

Play video games

12%

Watch TV

54%

Use Internet

36%

Read magazines/ newspapers

22%

Base: Private smartphone users who use the Internet in general and who were online yesterday with their smartphone, Smartphone n= 688 Q22: When you use the Internet on your smartphone, which if any of the following – do you do at the same time?


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SMARTPHONES HELP USERS

NAVIGATE THE WORLD AROUND THEM


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80%

of smartphone users have looked for local information

88%

have taken action as a result

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000 Q33: How often do you look for information about local businesses or services on your smartphone? (Ever) Base: Private smartphone users who use the internet in general and who look at least less than once a month for information on their smartphone, Smartphone n= 802 Q34 Which of the following actions have you taken after having looked up this type of information (business or services close to your location)?


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Looking for Local Information is a Frequent Smartphone Activity

39%

Look for local information at least once a week

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000 Q33: How often do you look for information about local businesses or services on your smartphone? (Ever)

13%

Look for local information daily


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Local Information Seekers Take Action

67%

connected with the business

67%

visited the business

17%

told others about it

39%

made a purchase

Base: for Q34: or

50%

Called the business or service Looked the business up on a map or got directions to the business or service

47%

Visited the website of the business or service

52%

Visited a business (e.g. store or restaurant)

50%

Read or wrote a review about a business or service

11%

Recommended a business or service to someone else

10%

Made a purchase from a business instore Made a purchase from a business online

Private smartphone users who use the internet in general and who look at least less than once a month information on their smartphone, Smartphone n= 802 Which of the following actions have you taken after having looked up this type of information (business services close to your location)?

30% 23%


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SMARTPHONES CHANGE THE WAY CONSUMERS SHOP


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Smartphones Allow Users to Research Products Anytime, Anywhere Place of Search 41%

Home

41%

25%

On the go

At home

21%

Work

25%

In a store

14%

Café or coffee shop

14%

On the go

14%

Public transport

9%

Airport

9%

In a store

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000 Q51a: And where were you when you researched for products or services with your smartphone?


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66%

have researched a product or service on their phone

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000 Q51a: And where were you when you researched for products or services with your smartphone?


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Smartphones are Our Primary Shopping Companions I intentionally have my smartphone with me

to compare prices and inform myself about products. I have changed my mind about purchasing a product or service in store as of a result of information

21%

18%

I gathered using my smartphone.

I have changed my mind about purchasing a product or service online as of a result of information I

16%

gathered using my smartphone.

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000 Q52: To what extent do you agree to each of these statements? Please answer on a scale from 1 to 5. A "1" means that you completely disagree with the statement a "5" means that you completely agree with the statement.


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Research that Starts on Smartphones Leads to Purchases Across Channels Research

on smartphone

30% 28%

then purchased then purchased

via computer

then purchased

it offline

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000 Google Confidential and Proprietary Q48: Listed below are various products or services. For each of these products or services please indicate which statement applies to you.

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Smartphones Are an Emerging Point of Purchase

27%

of smartphone users have purchased a product or service on their smartphone

55%

of these smartphone shoppers have made a purchase in the past month Base: Q44: buy Q45:

Private smartphone users who use the internet in general, Smartphone n= 1.000 Have you ever purchased a product or service over the internet on your smartphone? With product or service we mean everything you can excluding apps. Base: Private smartphone users who use the internet in general and who purchased via internet on their smartphone n= 269 Have you made a purchase by using your smartphone in the past month?


30

Smartphones Shoppers are Frequent Buyers

52%

make mobile purchases at least once a month

Base: Private smartphone users who use the internet in general and who purchased via internet on their smartphone, Smartphone n= 269 Q47: How frequently do you purchase products or services with your smartphone?


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Mobile Commerce will Continue to Grow

29%

expect to make more mobile purchases in the future

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000 Q51: Do you expect making purchases on your smartphone more often in the next 12 months?


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Barriers to Mobile Commerce Still Exist

Would prefer to use a PC/laptop for these services

73%

Doesn't feel secure

27%

Too complicated Too expensive Payment is too complex

14% 8% 6%

Payment features were not available (no credit card)

4%

Never heard of these services

4%

Other

Base: Private smartphone users who use the internet in general and who NOT purchased via internet on their smartphone n= 731 Q46: Why have you not made a purchase using your smartphone?

9%


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Smartphones

Help Advertisers Connect With Their Customers


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Offline Ad Exposure Leads to Mobile Search Ad location

57% have performed a mobile search after seeing an ad

TV

50%

Magazines

39%

Shop /Business

48%

Posters / Billboards

35%

Base: Private smartphone users who use the internet in general and who at least rarely notice advertising, n= 857 Google Confidential and Proprietary Q43a: How often do you use your smartphone to do a search in response to an ad you have seen in a magazine, on a poster, on TV or in a shop/business?

35

The First Page of Mobile Search Results is Key

64%

only look at the first page of results when conducting a search on their smartphone

1

2

3

4

5

6

7

8

Next

Base: Private smartphone users who use the internet in general and who are searching via search engine, Smartphone n= 925 Q32: How many search result pages do you look at, when conducting a search with your ... ?


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86% of smartphone users notice mobile ads

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000 Q41: How often do you notice advertising when you are using the browser or an app on your smartphone? (Ever)


37

Mobile Ads Make an Impression

43% While in app

42% While on a website

While using a search engine

White watching a video

While in an app

43%

While on a website

42%

While using a search engine

33% 20%

Where Mobile Ads Are Noticed

While watching a video While on a retailer website While on a video website

Base: Private smartphone users who use the internet in general and who at least rarely notice advertising n= 857 Q42: Where have you noticed advertising when using your smartphone?

33%

20%

18%

16%


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Background


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Research Methodology •  In partnership with Ipsos MediaCT, we interviewed a total of 1,000 New Zealand online adults (18-64 years of age) who identified themselves as using a smartphone to access the Internet •  The distribution is according to a national representative CATI Study •  A smartphone is defined as “a mobile phone offering advanced capabilities, often with PC-like functionality or ability to download apps” •  Respondents were asked a variety of questions around device usage, mobile search, video, social, web and commerce behavior and mobile advertising •  Interviews were conducted in Q1 2012


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Demographics

Gender

46%

Female

54%

Male

20%

18-24 Years

25%

25-34 Years

Age

27%

35-44 Years

17%

45-54 Years

10%

55+ Years

Area

Urban

45%

Suburban

44% 11%

Rural

31%

Single

Marital Status

18%

Living with partner

43%

Married Widowed Divorced / Separated

1% 6%

Base: Private smartphone users who use the Internet in general n= 1.000 S2. Please indicate your gender. / S1. What is your age? / D3. In what area do you live? D2. What is your marital status?


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Demographics No formal qualification

4% 23%

Secondary School qualification

Education

34%

Diploma/Certificate

24%

Undergraduate Degree

14%

Post-graduate Degree

76%

Employed (full-time/part-time)

Employment Status

12%

Unemployed / homemaker

11%

Student Retired

Under 25.000 NZD

1% 6% 14%

25.001 to 50.000 NZD

18%

50.001 to 75.000 NZD

21%

75.001 to 100.000 NZD

Income

17%

100.001 to 150.000 NZD 150.001 to 200.000 NZD Over 200.000 NZD Don't know/ no answer

Base: Private smartphone users who use the Internet in general n= 1.000 D4. What is the highest level of education you have completed? D5. Which of the following best describes your employment status? D8. Which of these ranges comes closest to the total (annual) income of your household before anything is deducted for tax National Insurance (Social security) pension schemes etc.?

6% 4% 14%


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