Wave 2 - Mobility | UM | Social Media Tracker

MOBILITY
Exploring the future potential
of mobile technology, devices,
content and marketing

THE CONDITIONS ARE RIGHT
FOR A SUBSTANTIAL GROWTH OF
PORTABLE TECHNOLOGY, MOBILE
ADVERTISING AND MARKETING
Music, films and games are the most valued content
Despite the huge amount being created, UGC is the least popular form
of content to consume.
Professional content producers are not about to be superseded on
future media platforms.
CD and peer-to-peer dwarf legal downloads
Ripping legal CDs to portable devices is the number one source of
content, 38% have done so. This is still ahead of peer-to-peer illegal
downloads, which stands at 36%.
Both exceed paid-for downloads, which is just 16% despite the fact
that music is the number one form of portable content that users
would pay for.
Users value branded and sponsored content
Branded content is the most popular of all advertising formats with
67% finding this acceptable or valuable.
The least popular finding is adverts in the middle of video or podcasts,
just 32% finding this acceptable / valuable.
Opportunity exists in this future media environment to provide
consumers with what they want and drive genuine consumer benefit
by creating, sponsoring or providing access to content.
Consumers in the connected world have access to a massive range
of portable devices regardless of local market economic, social and
cultural conditions. 66% have a portable music or media player, 45%
have a laptop at home or work and 28% have a portable gaming
machine. There is a massive appetite for content on these devices that
is not currently being satisfied. Clearly there is a role for marketers to
create, sponsor and provide access to content and services.
Mobile phones are evolving from voice to data devices
The leading markets are driven by messaging. In Japan just 24% of
mobile usage is phone calls, compared to 65% in the USA.
Mobile phone users are embracing future mobile technologies
Where the technology is available consumers are using it.
3G phones are the most in demand portable device worldwide
3G is the number one in demand portable technology – 43% want to
adopt. This is ahead of all other platforms, including media players,
portable gaming and laptops.
Portable technology is driving the rise of User-Generated
Content (UGC)
Digital cameras are the most popular portable device after mobiles –
81% of our connected sample have one.
Camera phones are nearly as popular, 76% have access
Phones are carried 100% of the time, compared to 17% for digital
cameras, meaning that camera phones are driving spontaneous
content creation and are key in the world of User-Generated Content.
MOBILITY

Today portable technology is an ingrained part of everyday living
around the world; the mobile phone is the world’s largest Internet,
computing and communications platform with 2.3bn users; Laptops
have overtaken desktops as the PC of choice; the iPod has sold
100m units and a whole wealth of mobile media technologies such as
portable video players are on the cusp of going mass market.
The emergence of these portable platforms has happened in tandem
with the massive growth in social media, creating a proliferation of
content such as video clips, digital photos, games, podcasts and
vodcasts that can be downloaded or transferred to portable devices
and consumed in an out-of-home environment.
This growth in portable technology and content has changed
the society and culture we live in. It has transformed our lives to
become increasingly informal, flexible and transient creating massive
dependency on this technology. However portable technology
marketing, advertising and content still remain in their infancy, always
promising “this year’s thing to watch” but never delivering. Investment
today is still focused firmly on text-to-win promotions and
SMS mobile promotions.
The promise remains tantalisingly on the cusp. The ability to access
2bn increasingly hard-to-reach consumers with personalised content,
location-orientated information and branded services in a format that
suits their lives is one that continues to prove utterly compelling.
To fully understand consumer demand and assess the real potential,
Universal McCann implemented the world’s largest survey into portable
technology and mobile media platforms as part of its ongoing global
digital research programme. The survey covered three key strands
of portable technology and mobile media; platforms, content and
advertising and marketing, investigating usage, growth potential,
attitudes and demand.
The research covered 21 markets from five continents and was
completed in July 2007, providing a truly unique global perspective.
THIS GROWTH IN TECHNOLOGY
AND CONTENT HAS FOREVER
CHANGED THE SOCIETY AND
CULTURE WE LIVE IN
PORTABLE
MEDIA
DEVICES
PORTABLE
CONTENT
ADVERTISING,
MARKETING
AND MEDIA
INTRODUCTION
4

China
Pakistan
Thailand
Malaysia
Singapore
Taiwan
Philippines
. Australia
France,
Germany,
Greece, Italy,
Spain, UK,
Russia
South Korea
USA
Mexico
Brazil
Japan
India
RESEARCH
The research was conducted via self completion online surveys by
9,500 16-54 “Connected World” individuals i.e Internet connected
mobile phone users. Although there are hundreds of millions of mobile
users without access to the Internet, it was felt that the dynamic
between mobile and online was essential to access the full range of
content and understand the dynamic between portable technology and
the Internet.
Up to 500 people were sampled in each of the following markets:
France, Germany, Italy, Spain, UK, Greece, Russia, USA, Mexico,
Brazil, India, China, South Korea, Japan, Pakistan, India, Thailand,
Malaysia, Singapore, Philippines, Taiwan and Australia.
This made the total sample just over 9,500. All the sample groups were
nationally representative to the mobile, internet-connected universe
(Figure 1). In many of the more emerging markets this defaults to an
urban sample, as this is where these consumers exist.
This selection of countries provided a universe of 690m, 30% of the
global mobile universe. The mix of saturated, maturing and emerging
markets allowed for in-depth and robust assessment of the current
and future global position.
Figure 1: Market universe: 690m
2 3.2 7 7.6
11.4 11.5 11.6 12.2 17 17.6 18.2
25.3 25.6
28.6 29.7 30.5 38
44.4
64.7
158.3
126
180
160
140
120
100
80
60
40
20
0
GREECE
PHILLIPINES
SINGAPORE
THAILAND
MALAYSIA
AUSTRALIA
PAKISTAN
TAIWAN
RUSSIA
FRANCE
SPAIN
MEXICO
ITALY
SOUTH KOREA
UK
BRAZIL
INDIA
GERMANY
CHINA
JAPAN
USA
Universe Size
Source: Internet World Stats, TGI Europa, Simmons & Local market surveys
MARKETS TARGETED IN RESEARCH
6

WHICH PORTABLE PLATFORMS
ARE THE MOST POPULAR? Figure 2: Device ownership global average
Portable devices have proliferated over the past few years - Figure 2
shows the global average for device penetration amongst our sample
of mobile and internet connected individuals. Due to the nature of
the sample, penetration levels are higher than average. The ranking
of devices is particularly relevant as it demonstrates the entry points
for User-Generated Content and the size of the platforms that exist for
content distribution.
The portable device that leads the way is the digital camera,
with 75% currently owning one. This high availability of cameras
underlines the extent to which photographs are the first point of
content creation bar none.
The other interesting point is the dominance of the MP3 player over
the iPod. At a global level this can be attributed to the success of
low-cost flash players in the Asian markets. It is also clear how
audio-only platforms lead video ones. This is a clear implication on
the distribution of portable content.
Laptops are now more likely to be wireless and at 31% are an
established platform for out-of-home and significantly lead portable
gaming devices.
At 31% 3G compares favourably to many other portable media
technologies amongst our mobility audience. Dedicated
mobile email devices such as the Blackberry have yet to make an
impact with just 6% claiming to use them, showing that they are still
firmly business devices.
Unsurprisingly multiple device ownership is the norm (Figure 3).
A massive 25% have five or more of these devices in their ownership.
90
80
70
60
50
40
30
20
10
% Ownership
PDA (personnel digital assistant)
Laptop with wireless
Other MP3 / digital audio play
3G enabled mobile phone
Figure 3: Multiple device ownership global average
PLATFORMS
THE PORTABLE DEVICE THAT LEADS THE
WAY IS THE DIGITAL CAMERA, WITH 75%
CURRENTLY OWNING ONE.
0
Portable email device (e.g Blackbe...
DS
Nintendo capability)
video Ipod (PSP (Playstation portable)
Ipod (audio only)
Laptop without wireless/wi-fi
Digital Camera
Other portable gaming device
Other portable media player
1 (Just a
mobile)
2
3
4
5+
9%
29%
18%
19% 25%
8 9

WHAT MARKETS
LEAD ADOPTION?
When looking at adoption by market (Figure 4) the main surprise
is the extent of ownership in supposedly ‘less developed’ markets.
This reflects the nature of the connected audience and shows how
involved and active this segment of Internet-connected mobile users
are, regardless of a low overall penetration within their country. If you
are connected you are connected, where ever you are in the world.
This underlines the divide that exists in emerging markets between
the online and the offline audience. The online audience is as
technologically involved as developed markets.
Looking at specific devices it is clear that the portable media player
(music, video and combined players) is the main portable technology
platform. The majority of these devices are music only and the high
levels of usage in emerging markets can be linked to the popularity
of low cost flash based players such as iRiver and Creativelabs.
Laptops are the second biggest platform, a real proof of its increasing
dominance over desktops in all markets. Portable gaming in
many cases is more popular among the connected audience in
the emerging markets than the connected audience in supposedly
‘developed markets’.
Figure 4: Device penetration by market
90
80
70
60
50
40
30
20
10
0
Greece
Malaysia
Russia
South Korea
Germany
France
Thailand
US
Philippines
Spain
Japan
Brazil
Taiwan
UK
Italy
Pakistan
India
Mexico
Australia
Singapore
China
Spain
% Ownership
Portable media player Laptop Portable Gaming Device
DEMAND FOR
CONVERGENT DEVICES
Convergence in portable technology is a theme that rises again and
again. The huge number of consumers with multiple devices (Figure 5)
shows that it is something that is yet to catch on. But despite this there
is a push to provide us with devices that deliver everything – mobile,
gaming, music, video and applications all in one. Apple’s launch of
the iPhone and the hype that followed epitomises this. Also the growth
of mobiles with music facilities as previously demonstrated shows the
creep of convergent devices. It is also particularly pertinent considering
the large number of portable devices that the mobility audience own.
Figure 5 shows the percentage that agree with the statement “I like
the idea of having one portable device to fulfil all my needs” and there
is a clear trend. The top markets driving the demand for convergence
are the emerging markets. Mexico leads with a massive 79% strongly
attracted to the concept of convergent devices. The next seven markets
are Malaysia, Brazil, India, and the Philippines. The markets where
the convergence is least popular are all affluent. The lowest figure is
Japan with 27%, Taiwan with 29% and the US with 31%. Convergence
is clearly driven less by aspiration and more by financial necessity.
There is no real need for a convergent product in the US, Germany
and Japan – multiple dedicated devices is affordable and aspirational.
Figure 5: Percentage Completely Agree with the statement “I like the idea of having one
portable device to fulfill all my needs”
0 20 40 60 80
Mexico
Malaysia
Brazil
India
Philippines
Spain
Greece
China
Pakistan
Russia
Italy
Singapore
Thailand
Australia
France
UK
South Korea
Germany
US
Taiwan
Japan
% All Agree
Convergence – “The concept of a technological device delivering
more than one application or purpose. For instance a mobile phone
may also play music or stream live TV. Devices have become
increasingly convergent as technology has miniaturised and
competition between devices manufacturers has increased.”
10 11

THE ROLE OF PORTABLE
TECHNOLOGIES
To build a deep understanding of what devices suit what needstates
and occasions, the respondents were asked to state what device they
typically used in certain occasions. Figures 7 - 10 show the top usage
occasions for portable devices.
Mobile Phones usage is clearly defined by travelling, four of the top
six are forms of transport, trains, underground, bus, walking and the
top quite surprisingly is in a car. The two out-of-home occasions when
mobiles are most used is at work and while shopping. The combination
of these needstates shows how crucial the mobile is to our out-of-home
lives. It is also interesting that the commonly held stigma that people
do not want to use mobile phones on public transport does not apply.
These figures reflect the huge growth of data and messaging.
BOND WITH PORTABLE
TECHNOLOGY
To understand the relationship respondents have with their portable
technologies we asked them to declare which ones were always taken
out-of-home and which ones were occasional used. The results (figure
6) are very clear; the mobile phone is the key device and has the
strongest relationship with the user. Virtually 100% of our universe take
the phone everywhere they go. The next most important out-of-home
technology is the portable music and video player, with more than 40%
of owners always taking out-of-home.
The relatively low scores for portable gaming and laptops underline
their importance as in-home devices, while the low score for digital
cameras shows that for the vast majority usage is still a pre-planned
and special occasion use. These findings raise the prospect that
camera phones will fill the void of immediacy and impulse for
content creation.
The laptop in contrast, is all about in-home usage. Unsurprisingly it
is driven by working and studying but the extent to which users are
combining laptop usage with in-home media consumption shows
how big dual media consumption is for online and TV and online and
radio. This is confirmation of the much talked about concept of ‘media
meshing’ i.e consuming more than one media at the same time.
Portable media players and portable gaming share the same
needstates – it is all about travel, with a mix of short commuting and
long-haul travel. It is also very interesting to see that these two devices
have also crossed over with in-home media consumption – again
driving the idea of media meshing but in more of an unexpected way.
It is clear from all platforms that portable technology also has a key role
to play in the home.
Mobile Phone
58 60 62 64 66 68 70 72
In a car (passenger)
Walking
Shopping
At work
On a bus
On train / underground
% use
Laptop
Figure 8: Where do you use your laptop? Global Average
Laptop
0 5 10 15 20 25 30 35
At home while watching TV
At home while listening to the radio
At work
At home while on the Internet
On a plane
% use
Portable Media / Music Players
0 5 10 15 20 25 30 35 40 45
Walking
On a bus
While exercising
On a plane
% use
Portable Gaming Device
0 1 2 3 4 5 6 7 8 9 10
On a plane
In a car
On a bus
At home while listening to the radio
% use
Figure 7: Where do you use your mobile phone? Global Average
Figure 9: Where do you use your portable media / music player? Global Average Figure 10: Where do you use your portable gaming device? Global Average
Figure 6: Which devices do you take out of home? Global average
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
video player
Portable gaming
Portable music /
Device
Digital camera
Laptop
Mobile phone
% Take Out Of Home
Sometimes Take
Always Take
12 13

MOBILE PHONE USAGE
The mobile phone is the worlds biggest computing and portable
media platform. It is forecasted that 3.3bn will be connected by 2011*
– growth driven by Asia, Africa and Latin America. The developed
markets have reached or are reaching 100% penetration; extraordinary
growth for a relatively young technology.
Figure 12 shows the extent to which users have integrated phones into
their lives. On average 41% of our global sample makes more than five
calls a day, while 35% send more than five texts a day; a huge volume
of communication.
Internet and MMS frequencies are much lower, but not insignificant.
30% use mobile internet more than once a week and 34% send
an MMS more than once a week – encouraging opportunities for
multimedia content.
FUTURE GROWTH
Good news for the mobile phone manufacturers and the networks,
43% of the global sample intend to obtain a 3G phone in the future,
promising huge potential (Figure 11). This is followed by video iPods;
not only good for Apple but an indication that out-of-home video is
set to be a major global platform. Wireless laptops come in third,
confirming the ever growing demand for portable computing.
The technologies that lag are varying. The Nintendo DS lags its rival
Sony PSP, indicating that dedicated gaming devices are not as popular
as multiple content devices. Non-wireless laptops follow, confirming the
shift in demand to flexible out of home computing. Next come portable
email devices which show that consumer demand for dedicated email
is still relatively low thanks to its association with business.
There are however big variations by markets, even among the numbers
of phone calls and SMS messages sent. Figure 13 shows the share of
mobile usage occasions by country. The immediate observation is the
overall share of SMS, which has extensively eaten into voice usage, but
yet to be impacted by MMS.
The other striking fact is the extent to which Japanese usage is driven
by data, with 23% of usage made up by Internet usage – by far the
highest in the world. Only three markets have phone calls above 60%
of usage occasions: USA, Thailand and Taiwan and this will surely
decline over time.
IMPLICATIONS
The extent of portable device ownership is staggering, both in terms
of penetration across markets and the number of devices that users
have. There is clearly a massive demand across the connected world
for these products and the lifestyle they enable. At present the
key platforms for marketers and advertisers are centred around
audio, with the mp3 player and the audio only iPod being found
everywhere. In theory this should be reflected in the content that is
produced today.
However the short-term future is multi-media. 3G phones are the
number one most in-demand portable product, while the video iPod
is number two. Two key platforms for the distribution of video.
It is also clear how important portable technology is becoming a
source of User-Generated Content, as well as a media platform. The
digital camera is the number one portable technology device in
its own right and a key link between the mobile world and social
media platforms.
Nonetheless the key portable device is to be the mobile phone.
Firstly it i s ubiquitous, secondly there is massive demand for 3G
guaranteeing its role as future multi-media device and thirdly its
carried out-of-home on 100% of occasions.
Figure 11: Which devices are you interested in purchasing in the future? Global Average
Global Average
0 10 20 30 40 50
3G enabled mobile phone
Ipod (video capability)
Laptop with wireless (e.g Centrino)
Mobile Phone
Digital Camera
Other portable media player
PDA (personnel digital assistant)
Other MP3 / digital audio player
Ipod (audio only)
PSP (Playstation portable)
Portable email device (e.g Blackberry)
Laptop without wireless/wifi
Nintendo DS
% plan to purchase
Figure 13: Percentage share of total usage occasions by method of
communication - global average
0% 20% 40% 60% 80% 100%
USA
UK
Thailand
Taiwan
Spain
South Korea
Singapore
Russia
Philippines
Pakistan
Mexico
Malaysia
Japan
Italy
India
Greece
Germany
France
China
Brazil
Australia
Global Average
Phone Calls Text (SMS) Text (MMS) (Internet)
Figure 12: Frequency of using your phone by method of communication - global average
0% 50% 100%
Used the Internet
Send a picture (MMS)
message
Send a text (SMS)
message
Make a phone call
% frequency of communication
5+ times a day
2 – 4 times a day
Once a day
2 – 3 times a week
Once a Week
Less often
Have used once
Never
*MIC (Market Intelligence Center)
14 15

USAGE OF NEXT GENERATION
MOBILE SERVICES
The real test of impact is not feature penetration but users’ willingness
to adopt and use such technology. Figure 17 shows that the ubiquitous
text message remains the most popular mobile application. However it
is closely followed by multimedia content creation and sharing. Taking
photos, MMS, taking videos and sending photos are the next four. This
level of penetration shows the extent to which the mobile phone has
evolved from just being a communications device, while indicating its
value in User-Generated Content.
There is also a creep of Internet services; using mobile web portals,
mobile search, downloading content and sending emails have gained
significant levels of usage. However unsurprisingly some more cutting
edge technologies have yet to approach critical mass, with emerging
concepts such as Live TV, electronic payment and video calls still
niche.
Figure 18 looks at usage in relationship to access and it is clear that
the points of access to create content lead active usage. Nearly 100%
of those with a camera or video camera have used it. Since these are
so easy to use, this is not a surprise. What is a surprise is the extent to
which very emerging applications such as electronic payment, video
calling and watching Live TV have such high levels of take up. This
is very encouraging for mobile operators as they continue to expand
their access to new technologies although it is very unlikely that most
of these users will go beyond experimentation to become the regular
users that operators seek.
However Internet browsing and email lag despite integration on all new
user interfaces and heavy promotions from the handset manufacturers
and the operators.
MOBILE PHONE FEATURES
Multi-media handsets are now the norm amongst our connected
universe. Figure 14 shows feature penetration across the sample. The
enablers of content creation and media are now all mainstream; e.g.
colour screens, cameras, web browsing and MMS are all around the
80% penetration mark. However convergence features have had
mixed performance. Music players have reached 50% penetration,
but more emerging technologies such as Live TV, video calling and
payment technologies have yet to make significant penetration, all
falling below 20%.
There are however significant differences when you look at the market
splits. Figures 15 and 16 show the claimed penetration of camera
phones and music players – two key technologies for creating content
and enabling media on a mobile device. The markets leading the
charge are a mix of developed Asian markets and European; South
Korea, Greece, Japan, Singapore and the UK make up the top five.
Only two markets fail to reach the 60% penetration threshold, which is
interestingly India and the US - two markets at the opposite ends of the
economic development scale.
Comparing this to the penetration of music players, a slightly different
picture emerges. There are a larger number of developed mobile
markets further down the table. The relatively strong performance of
developing markets reflects the financial necessity of convergence –
the idea of multiple portable devices is more of a luxury. Not a problem
in markets such as Japan, the US and France where dedicated
business and multiple handsets are more likely to exist.
Colour Screen
Picture messages (MMS)
Camera
Internet browsing (WAP / GPRS)
Emails
Video Camera
Bluetooth
Music Player
FM Radio
Video Calling
Facility to watch live TV
0 20 40 60 80 100
Colour Screen
Camera
Emails
Video Camera
Bluetooth
Music Player
FM Radio
Video Calling
Electronic payment system
% penetration
Global Average
fig 14
fig 15
South Korea
Greece
Japan
UK
Italy
Mexico
China
Spain
Global Average
France
South Korea
Greece
Japan
UK
Italy
Mexico
China
Spain
Australia
Germany
Russia
Brazil
India
Global Average
fig 16 Music Player
Camera
Figure 14: Mobile phone feature penetration - global average
0 20 40 60 80 100
% penetration
Global Average
fig 14
fig 15
0 10 20 30 40 50 60 70 80 90 100
US
% penetration
Camera
0 20 40 60 80
China
Greece
South Korea
UK
Italy
Global Average
Spain
Mexico
Brazil
Germany
Russia
India
Australia
France
Japan
US
% penetration
Figure 15: Penetration of cameras on
mobile phones
Figure 16: Penetration of music
players on mobile phones
Figure 17: Usage of mobile features (last 6 months) – global average
0 20 40 60 80 100
Send a text (SMS) message
Taken a photo
Send a picture (MMS) message
Sent a photo to someone I know
Recorded a video
Send a text (SMS) message
Send a file to another phone via Bluetooth
Taken a photo
Use the internet pages provided by mobile company
Send a picture (MMS) message
Download a game
Sent a photo to someone I know
Sent an email
Recorded a video
Sent a photo to a website
Send a file to another phone via Bluetooth
Downloaded a video clip
Use the internet pages provided by mobile company
Search for directions
Download a game
Made a video call
Sent an email
Electronically paid for goods/ services
Sent a photo to a website
Used office software e.g Word Processor etc.
Downloaded a video clip
Watch Live TV
% Ever Use (last 6 months)
Fig17
Fig18
0 20 40 60 80 100
Figure 18: Conversion – the numbers with access who have used – global average
0% 20% 40% 60% 80% 100%
Search for directions
Made a video call
Electronically paid for goods/ services
Used office software e.g Word Processor etc.
Camera
Video Camera
Camera
Video Camera
Video Calling
Emails
Video Calling
% of those with access who use (Conversion)
Watch Live TV
% Ever Use (last 6 months)
Fig17
Fig18
0% 20% 40% 60% 80% 100%
Emails
% of those with access who use (Conversion)
16

MOBILE ADOPTION
Figure 22 looks at the average levels of adoption by market for all of
these technologies and is very revealing in terms of the extent to which
mobile phones have woven themselves into the fabric of that society.
The countries that lead are Japan, Greece, Italy, China, South Korea
and the UK – markets that have all enthusiastically embraced the
phone beyond its capacity to make calls.
The position of Japan at the top of the index confirms all the
preconceptions and anecdotal evidence that states Japan’s
pre-eminence in mobile.
It is interesting that the US ranks last, again substantiating perceptions
that the US has been slower than other markets to embrace mobile
phones in a sophisticated manner.
WHICH MARKETS LEAD EMERGING
TECHNOLOGIES?
Mobile search
Mobile search has long been touted as the application which will finally
drive substantial take up of mobile Internet and also provide the link
between online and the real world. However usage is still limited in
all markets except Japan (Figure 19), where 49% have used mobile
search. Only four other markets fall above the average; Greece, China
and the UK.
Electronic payment for goods and services
Electronic payment by mobile could revolutionise commerce. There are
a number of ways that electronic payment can be activated by mobile;
either wirelessly with a dedicated point of sale device, by text code or
over a secure mobile internet portal. But only Japan shows significant
adoption, with a stunning 81% claiming to use it. The next market is
South Korea with just 19%.
Sending photos to websites
The integration of mobile phones and the Internet promises to unleash
the tidal wave of User-Generated Content. The growth of camera and
video phones means that there is a constant opportunity for citizen
reporters. The increasing usage of mobile phone pictures and videos
in TV news reporting is proof of this. However outside of Asia its impact
has been limited. Figure 21 shows how dominant the Asian markets
are, in particularly Japan, China and South Korea which are all at the
forefront of social media usage. European markets, normally at the
forefront, lag in this connection of mobile and online.
Figure 19: Ever used mobile search Figure 20: Ever paid using mobile electronic payment systems Figure 21: Ever sent a photo to a website
Japan
South Korea
China
Brazil
Greece
Russia
Spain
India
US
Electronically paid for
goods/ services
0 60 0 20 40 60 80 100
0 20 40 60
Japan
Greece
China
UK
France
Italy
South Korea
Spain
Mexico
India
% Ever Done (last 6 months
UK
% Ever Done (last 6 months)
Japan
China
South Korea
Mexico
Greece
India
Italy
France
Brazil
US
Sent a photo to
a website
100 0 20 40 60 80 100
IMPLICATIONS
There are clear global patterns in mobile usage and development. The
most sophisticated market is clearly Japan. Not only did they top the
mobile usage index, they are the largest users of mobile Internet and
also top in the real emerging technologies such as electronic payments
and search. On a broader scale Northern Asia, Mediterranean Europe
and the UK are leading consumer adoption of mobile and driving its
future, while in contrast France, Germany and in particularly the US
lag. These are useful differences for marketers, mobile operators and
content providers to prioritise which markets are worth investing in.
From a global perspective the extent to which mobile owners use
their mobiles is quite extraordinary and the shift away from voice to
messaging and more slowly to mobile internet is clear. The leading
mobile markets are the most data and messaging orientated and the
others will surely follow. Overall though mobile internet is still the least
adopted technology where available. Just 54% of those with access
to Internet on their phone have used it and there clearly is still much
to do to encourage usage and should be taken into consideration for
those developing mobile internet services.
The mobile phone is the most important tool for creating User-
Generated Content. There is higher access to camera phones than
digital cameras and usage where available is virtually 100%. But the
important point is that the mobile is available all of the time. Where the
impulsive need to create content via photos or videos is relevant the
phone will fill that gap. Mobile pictures, videos and MMS can clearly
be worked into all marketing communications where relevant.
The mobile also has a multi-media and divergent future. The real
emerging technologies that have low overall reach due to technology
constraints such as electronic payment, video calling and Live TV
have been adopted with huge enthusiasm by those who can. A very
encouraging fact for mobile operators, mobile phone manufacturers
and marketers the world over.
Figure 22: Mobile usage index (average usage across all applications and services tested)
20 25 30 35 40 45 50
Japan
Greece
Italy
China
South Korea
UK
Singapore
Philippines
Pakistan
Mexico
Spain
Malaysia
Global Average
India
Thailand
Australia
Russia
France
Brazil
Germany
Taiwan
US
18 19

WHAT CONTENT DO USERS WANT
ON THEIR DEVICES?
To understand what types of content platforms fit with portable
devices (Figure 23) we asked respondents to state which types of
entertainment or information would interest them on what platform.
There is a clear pattern by type of content. Music holds most interest
on video and music players, with the mobile phone very close behind.
This is a visual demonstration of the mobile phone companies success
at driving convergence through music. Laptops also figure highly
thanks to people streaming or playing music files while they work or
surf the Internet.
The most popular platform for TV clips and films is the laptop
suggesting that most video content is not shifted between PC and
portable player. What is interesting again is the mobile is up there with
the portable media player. Also interesting is the similarities between
Figure 23: Content platform demands by device
TV Clips, Films and Live TV in terms of interest regardless of platform.
The concept of Live TV over PC or phone seems to have resonated with
consumers the world over.
The surprise with gaming is that portable gaming machines were not
the main platform for gaming, with laptops and mobiles leading the
way. This is indicative of most peoples casual demands for gaming
– which the mobile and the laptop via the Internet do so well.
The Internet is unsurprisingly most popular on a laptop, but the mobile
phone is also key and holds interest for 46% of our global respondents.
This backs up early figures on mobile Internet which shows that the
consumer demand is there. 0
80
70
60
50
40
30
20
10
Digital video & music player Portable gaming device Laptop Mobile Phone
Music TV Clips Films Live TV Games Internet
20
CONTENT

SOURCING AND
TRANSFERRING CONTENT
The journey consumers take to source content for portable devices
splits into two; the sourcing of content and the transferring of content.
By accessing the absolute number who had done this across various
platforms, it allowed us to track demand for paid-for content versus
free content while also assessing the possibilities for media owners
and advertisers.
As demonstrated in Figure 25 traditional fixed media formats still rule
when sourcing content which is great news for the music industry.
However while file sharing sites are catching fast, underlining the fact
that paid for downloads has some way to go before they dislodge the
CD and illegal methods. It also shows that consumers favour flexible
non-Digital Rights Media (DRM) media regardless of paying for it
or not.
Films however are led by illegal file sharing and then DVDs – this
reflects two facts, one that Peer-to-Peer (P-2-P) gives users films when
they want them and also the complexities of uploading DVD content
CONTENT BY USAGE OCCASION
It was also interesting to see what mobile platform content fits
what usage occasion (Figure 24). This is key to understanding how
traditional media can link in with new platforms and also to understand
what type of content to produce for what occasion. Respondents
were asked to state when they would be most likely to consume that
particular type of content on a portable device.
It is clear that music dominates all usage occasions and is consumed
everywhere on a portable device, from travel, to work and even
shopping.
The next most popular type of content is the Internet. What is
surprising is that there is demand across the board in-home, out-of-home
and at work.
versus music. Films are also more popular than TV Shows on P-2-P,
because TV Shows in the main do not have the same global appeal
and do not have such staggered and controlled distribution.
In the main, paying for digital media is still relatively unpopular – music
is most popular, but TV and Films have yet to make an impact. Paying
à-la-carte is more sought-after than subscription payment methods.
Transferring of content is very prominent it (Figure 26), shows that there
is a large level of interaction between the PC, Internet and portable
technology and also that much of what people move to portable
devices is user-generated. More than 60% are moving pictures from
their digital camera to their PC, but surprisingly mobile phones are
closely behind. Transferring videos from the same platforms to a PC is
also very popular – facts that underline how important these devices
are in the world of UGC. The most popular movement from PC to
portable player is music, followed by photos and then video, which
considering the complexities, an amazing 36% have done so.
Looking at richer more involved forms of media, such as video, films,
Live TV and gaming the demand is lower, but is higher while travelling
in a car or bus versus other forms of transport, which is clearly a
privacy issue.
Another interesting point on gaming – is that there is consumer
demand to have it at home while working / studying but not in the
office. The relative scores for consuming portable content while at
home watching TV demonstrates that portable media is not just for
out-of-home. Also it underlines how important duel media consumption
and media meshing is. The relationship between traditional media
consumption and portable content is an important dynamic.
Figure 24: Content platform used by usage occasion - global average
Music TV Clips Films Live TV Games Internet
0 10 20 30 40 50 60 70 80
At work
While exercising
Shopping
Walking
On a plane
On a bus
Underground
Working/studying at home
% content platforms used by usage occasion
Figure 25: Sources of content for portable devices - global average Figure 26: Transferring content to portable devices - global average
0 5 10 15 20 25 30 35 40
Buy an official CD and upload
the music to your PC
Download music from a peer to
peer file sharing site
Borrow an official CD and
upload the music to your PC
Download films from p2p file
sharing site
Buy a DVD and upload it to your PC
Buy a copied CD and upload
the music to your PC
Borrow an official DVD from a
friend and upload it to your PC
Pay for music downloads
Download TV shows from a p2p
file sharing site
Pay a monthly subscription to
download / stream music
Pay for film downloads
Pay for TV show downloads
0 10 20 30 40 50 60 70
Transfer photos from a digital
camera to a PC
Transfer music from your PC to
a portable player
Transfer photos from a mobile
phone to a PC
Transfer photos from your PC
to a portable player
Transfer videos from a digital
camera to a PC
Transfer videos from a mobile
phone to a PC
Transfer videos / TV / films from
your PC to a portable player
22 23

TOPICS OF CONTENT
The topics of content that our sample demand are driven by
informational and news needs (Figure 30). Travel, general news
and entertainment lead the way. Services such as cinema listings,
weather, route planning and shopping have lower levels of demand.
Somewhat surprisingly user-generated clips fall bottom, which seems
to fit contrary to most mobile operators’ attempts to drive mobile portal
usage through UGC mechanics such as Orange Mobile “Hot or not”
and the popularity of UGC podcasts on services such as iTunes.
Looking at the top three topics for mobile devices by market (Figure
29) it is clear that there are broad similarities. Entertainment, News,
Technology and Weather all figure strongly. But there are two distinct
groups. Firstly there are the markets that are driven by functional
services e.g. travel, news, cinema, weather and route planning – these
markets include China, Germany, France, India, Russia, South
Korea, Taiwan and the US. Then there are the rest which are more
entertainment driven.
LEGAL V ILLEGAL SOURCES
Figure 27: Purchased digital music online Figure 28: Used a Peer-to-Peer service to download music
0 20 40 60 80
South Korea
Thailand
UK
China
Australia
Russia
Japan
India
Global Average
Phillipines
US
France
Greece
Taiwan
Mexico
Singapore
Italy
Pakistan
Malaysia
Brazil
Spain
Germany
0 20 40 60 80
China
Mexico
Spain
Russia
Malaysia
Brazil
South Korea
Greece
Italy
Global Average
Australia
India
UK
France
Phillipines
Pakistan
Singapore
Taiwan
US
Japan
Thailand
Germany
0 0.5 1 1.5 2
Travel
News
Entertainment
Holidays
Technology
Cinema
Weather
Music news / reviews
Route Planning
Sports
Business
Shopping
Celebrities
Video Clips created
by other users
Scale of 1 to 5 where 5 equals very interested and 1
equals not at all interested
Figure 30: Top 3 topics of content interested in by market
Figure 29: Topics of content interested in – global average
1 2 3
Australia Entertainment News Weather
Brazil Entertainment News Technology
China Travel Cinema News
France News Route Planning Cinema
Germany News Route Planning Entertainment
Greece Entertainment Technology Holidays
Philippines Entertainment Technology Travel
India Route Planning News Technology
Italy Travel Holidays News
Japan Entertainment Technology News
Malaysia Technology Entertainment News
Mexico Entertainment Technology News
Pakistan Entertainment Technology News
Russia Weather News Entertainment
Singapore Entertainment Holidays Travel
South Korea
korea Cinema News Weather
except South Korea the use of P2P sites to obtain music is higher
than the percentage who had paid for music downloads – a point that
demonstrates the global nature of content piracy. Interestingly the
markets leading piracy are China, Mexico, Spain, Russia, Malaysia
and Brazil. Even more revealing is to see the markets that top the P2P
chart but are bottom of the paid-for chart – namely Malaysia, Brazil
and Spain, indicating demand for content but little willingness to pay.
A couple of markets rank lowly on both sides, Germany and Pakistan
showing little demand for digitised content.
File sharing and the illegal copying of content, in particular music
but increasingly TV and films has been a very hot topic. The RIAA
(Recording Industry Association of America) has been suing anyone
they can find but has been unable to stop the growth of peer-to-peer
file sharing, which now makes up a huge percentage of Internet traffic.
Although several reports indicate that the legal downloads market is
increasing it is still dwarfed by the volume of illegal downloading.
Our research backs this up with 18% paying for music (Figure 27)
but 36% having downloaded via P2P (Figure 28). In all markets
24
Spain Entertainment News Travel
Taiwan Travel Holidays Cinema
Thailand Entertainment Travel News
UK Entertainment News Music news / reviews
US Weather News Entertainment

WHAT WOULD CONSUMERS PAY FOR?
Monetising portable content is obviously the ultimate goal for mobile
networks, the portable platform content providers and existing non-mobile
media owners is clearly to monetise portable content. The size of the user
base suggests that there is much revenue to make, however it is clear
that overall demand is still on the low side. The research asked users to
score from 1 – 5 how willing they are to pay for content and just three
category types passed the average (Figure 35). All three were rich and
permanent (i.e. not intended for single use) types of media; Music, Films
and Games.
The next two categories that people would be likely to pay
for are location services and directions, a surprisingly high
ranking for one off service, but one that demonstrates
there is value in mobile services. Live TV, Radio and video
clips all fall in the lower half, a long way behind their rich
media counterparts of music and film. This suggests their
association with free to access traditional media harms their
ability to drive paid-for revenue on mobile platforms.
A big surprise is the very low ranking of sports highlights
and news and results considering that sports is something
TOPICS OF CONTENT BY SEGMENT
Figures 31 to 34 show the top five types of content that are of most
interest by key demographic segments. The major consistencies are
that the content remains informational and largely functional regardless
of segment with news, travel and entertainment information figuring
highly. There is no place for celebrities, route planning or User-
Generated Content in any of the segments.
There are also some subtle differences that pull the segments apart –
albeit along fairly stereotypical lines. Men are interested in technology
that has traditionally driven media revenues on most platforms. It has
also been the focus for mobile companies within their portals. This
suggests that if untargeted it may not be the best content to monetise.
As with interest in types of content – user-generated video comes bottom
of the list. This clearly indicates that quality and professionalism of
production is one of the main drivers to monetisation. A reassuring fact
for professional media everywhere.
and sports, while women have ranked entertainment top. The
differences by age groups are less pronounced although the younger
segments are more entertainment-orientated. Older segments are more
tasked based with weather and holiday information figuring in the top
five, while news is number one.
Figure 35: Content willing to pay for – global average
0 0.5 1 1.5 2 2.5 3
Music downloads
Films
Game
Travel directions / times
Local search for products and services (e.g nearest restaurant)
Music videos
News articles
Price comparison services of products you find in the high street
Live TV on a mobile
Video clips / TV shows
Radio / audio shows
Consumer reviews of products and services
Sports Highlights
Sports news articles / results
Video clips created by other users / consumers
Scale of 1 to 5 where 5 equals very
interested and 1 equals not at all interested
Figure 31: Content very interested in – male sample Figure 32: Content very interested in – female sample
40 45 50 55 60 65 70
News
Technology
Entertainment
Cinema
Sports
% Very Interested
Male
Female
40 45 50 55 60 65 70
Entertainment
Travel
News
Cinema
Holiday
% Very Interested
40 45 50 55 60 65 70
Entertainment
News
Cinema
Technology
Travel
% Very Interested
-34
40 45 50 55 60 65 70
News
Weather
Travel
Entertainment
Holidays
% Very Interested
35+
IMPLICATIONS
These results underline the fact that demand for content is massive, but
what is being provided is not fulfilling demand. The number one source
of content is still to rip a CD followed up peer to peer sources. This shows
that consumers do not want tightly controlled DRM heavy digital media.
They want to be able to use it as they want regardless of paying for it, both
a challenge for rights owners to open up their content on digital platforms
and also an opportunity for advertisers to provide free top use content
to consumers. There is a challenge in wider multi-media monetisation.
The topics content that most users want on a regular basis are largely
functional and informational, but the content they are willing to pay for
is rich entertainment. These results also show important the mobile
phone is as a cross media platform, being more popular for gaming than
games machines and the second most popular for Internet, music and
TV and video formats. It may become the device in emerging markets
where finances demand one, however low demand for convergence in
developed markets, mean it will always be a supplementary device, be it
one that is always present.
Figure 33: Content very interested in – under 34s Figure 34: Content very interested in – over 34s
26 27

ADVERTISING AND MARKETING
Portable device and in particular mobile marketing and advertising has
long been hyped as the next big thing. Every year is touted as the year
it will happen. But marketing on these devices remains limited. Mobile
phones are dominated by SMS promotions, while display, location
based, bluetooth and rich media advertising still remains very much in
the nascent stage. Frequently held back by technology issues, lack of
advertiser interest and concerns over consumer receptiveness. Other
platforms such as video players and portable gaming machines have
opened up new possibilities for new kinds advertising, sponsorship and
branded content in a plethora of new media formats such as podcasts,
videocasts, video clips, web services and gaming. However, as with
mobile, it is still much at the experimental stage.
Figure 36, which looks at mobile phone formats confirms what many
have thought. Consumers are least receptive to the display advertising
that many are keen to develop. TV advertising on a mobile is seen as the
most irritating, followed by display adverts on mobile internet pages.
The highest levels of value and acceptability were for the formats that
create clear consumer benefit and ones that are based on “opt in” for
example outdoor bluetooth formats both on transport and
outdoor adverts.
Figure 37, which looks at portable media player formats, demonstrates
that the rules of advertising on traditional media still apply. The most
interruptive and invasive formats that appear in the middle of clips or
come in the form of paid for recommendations are the least acceptable
to consumers. As the format becomes less interruptive for example
sponsorship and branded content the more acceptable it is.
This distinction from consumers highlights the opportunity for
advertisers and marketers in this space. There is far more flexibility
and opportunity than found in traditional media, so the opportunity
to leverage paid for communications in formats that create consumer
benefit and drive engagement, should be embraced.
Figure 36: Opinion on mobile phone advertising formats Figure 37: Opinion on portable device advertising formats
Irritating Acceptable Valuable to me Irritating Acceptable Valuable to me
0% 20% 40% 60% 80% 100%
Ads on public transport that
send info to mobile if opt
Outdoor adverts/ posters that
send info to mobile if opt to
Sponsored search results on a
mobile phone search
Adverts on mobile internet pages
TV adverts on a mobile phone
% Agree
0% 20% 40% 60% 80% 100%
Radio/audio shows (Podcasts) sponsored
by advertisers
Video clips/shows that are sponsored
by advertisers
Radio/audio shows (Podcasts) created
by advertisers
Video clips/shows that are created
by advertisers
Adverts that appear at the beginning of
video clips / shows
Brand recommendations from the presenters
of podcasts
Adverts that appear in the middle of
video clips / shows
% Agree
ADVERTISING
& MARKETING
28 29

ADVERTISER FUNDED CONTENT
Portable technologies and mobile open up a huge range of
possibilities for advertisers and marketers to produce and
distribute content. Recent examples have included Coca-
Cola with iTunes and BMW with videocasts, this in the past
has been complicated and expensive due to the tightly
controlled distribution channels of broadcast radio and TV
and the difficulties of operating in multiple markets. Ad
funded content also clearly offers away to offer consumers
real benefits, moving away from the interruptive model of
advertising and drive engagement.
Figure 39 looks at which forms of content most appeal
when offered by advertisers for free and the results almost
mirror the content that users are willing to pay for – clearly
people want to receive the content they attach most value
too (as shown previously in Figure 35). These are music,
films, live TV and access to events. Again UGC video clips
hold no appeal and surprisingly nor do sports.
RECEPTIVENESS OF
DIFFERENT MARKETS
Although opinions between different formats were very uniform
between markets, there are significant differences between the
overall levels of receptivity. Figure 38 represents an index based on
the average level of value across all formats, both mobile and wider
portable technology platforms that allow you to compare markets and
see where the real opportunities and challenges are.
The clearest observation is the significantly lower levels of acceptability
in developed markets. This is particularly the case in the US, where
clearly a legacy of heavy weight advertising and marketing has had
an impact. The next set of countries are also developed, but with
significantly higher levels of acceptability than the US.
The top seven countries are all emerging markets including
Mexico, China, Thailand, Philippines, Malaysia, Brazil and India,
demonstrating less cynicism towards paid for communications, but
something that will surely emerge as advertising on digital platforms
and the commercial application of them becomes more prevalent.
IMPLICATIONS
Figure 39: Content that consumers would most like to receive free of charge from advertisers
Global Average
0 0.5 1 1.5 2 2.5 3 3.5
Music downloads
SMS (txt msg) that entitle free entry to an event
Films
SMS (text msg) that entitles you to prod discount
Music videos
Live TV on a mobile
News articles
Game
Travel directions/times
Local search for products and services
Video clips/TV shows
Radio/ audio shows
Price comparison service of prods find in high st
Consumer reviews of products and services
Sports Highlights
Sports news articles/ results
Video clips created by other users/ consumers
Scale of 1 to 5 where 5 equals very interested and
1 equals not at all interested
Consumer receptivity to advertising and marketing activity is extremely
clear; the most invasive formats such as advertising in the middle of
podcasts, pre-roll advertisements and TV ads on mobile phones are
the least liked and significantly less acceptable than more progressive
formats such as branded content and sponsorship.
The emergence of portable technology and their use as a media platform
is a massive opportunity for advertisers to create a more positive
relationship with consumers. Portable platforms are open access, cheap
to distribute across, global in nature and consumed on users terms.
Traditional media, with its high entry costs, limited geographic reach
and strict regulations, has never provided advertisers and brands
opportunity before. Brands should be creating appropriate branded
content, providing access to rich media content such as music, film
and TV shows or even creating mobile services, reaching consumers
on their terms in a way that’s more engaging than traditional
interruptive formats.
It is also clear that certain markets are more receptive than others, with
the developed markets that have a legacy of heavier advertising being
least receptive. The emerging markets are currently open to newer
formats but this may change as users become exposed.
Figure 38: Advertising Acceptiveness Index – scores by market
Advertising Accepiveness Index
5 5.5 6 6.5 7 7.5 8
Mexico
China
Thailand
Philippines
Malaysia
Brazil
India
Spain
Singapore
Germany
Russia
Italy
Taiwan
Pakistan
Australia
Greece
Japan
South Korea
UK
France
US
Average acceptability score by market across all mobile phone and portable technology
advertising formats
30 31

THE OPPORTUNITY FOR BRANDS
Define a more positive relationship with consumers
• Portable technology as with social media allows brands to create or
provide access to content, applications and services that
consumers want
• There is too much choice to maintain interruptive formats to exist on
portable technology media, consumers will go elsewhere
Leverage the network
• Portable platforms like social media have created new avenues to
distribute content on a global scale without the high entry costs of global
• A global brand and communications positioning must be maintained,
content is accessed along language lines not market lines
Integrate with social media
• Increasingly the connected people are sourcing content from social
media platforms
• Portable devices should be part of any social media strategy and users
should be encouraged to move that content from desktop to devices
• This means living by the rules of social media – creativity,
participations and interaction
Integrate mobile into the mix properly
• The mobile is the worlds number one technology platform and
should be core in all future communications, this can be as simple as
providing SMS shortcodes on adverts
• Avoid interruptive formats and always have “opt-in”
Harness media meshing
• A surprising amount of portable media consumption happens at
home while watching TV, listening to the radio or even while using
the Internet
• It is important to link portable content and services to traditional
media content
Drive User-Generated Content
• Portable technologies are driving User-Generated Content on social
media platforms. This is both due to low-cost digital cameras and
the rise of camera phones
• Increasingly consumers are uploading this content to social media
platforms creating an opportunity for brands to either develop
applications that leverage this or place User-Generated Content as a
mechanic in campaigns
Champion simplicity
• A very key point in portable technology and mobile. If it is simple
and the technology works without much effort then it will be adopted
• Simplicity is the reason podcasts took off once they were integrated
into the itunes store, it became a one click process
34
FUTURE INITIATIVES
PORTABLE TECHNOLOGY ALLOWS
ADVERTISERS TO CREATE A
MORE POSITIVE RELATIONSHIP
WITH CONSUMERS.

Contact
For further information and any questions
please contact:
Tom.Smith@universalmccann.com

Wave 2 - Mobility | UM | Social Media Tracker

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