An overview of the mobile market and data on smartphone and tablet ownership in the UK, January 2013

1. UK mobile
devices
usage and
demographic
roundup
An overview of recent research
and data on smartphone and
tablet ownership in the UK,
compiled January 2013.
1

2. Introduction
Smartphone and tablet usage We Are Apps have collated the The and data roaming.
is on the rise and brands and most recent data and research We also take a look at how
sections included
enterprises need to make sure in a single digest. It is intended smartphones are making
they are up-to-date with the to give you a quick, top-line
are: life easier by exploring the
changes in consumer behaviour view of the information you statistics for mobile usage
Who uses smartphones,
that the devices bring. need to make informed during shopping.
which aims to explain who in
decisions when planning an
the UK is using smartphones
As ownership explodes, app, mobile campaign or any Finally, as many decision
and tablets, how old they are
research data has often digital communications that makers are considering
and what devices they use.
lagged behind. Thankfully this could be accessed by whether to create an
position is now being rectified mobile devices. application or whether
How they are using them,
as research organisations and it’s better to optimise
which aims to explain
even government For more in-depth statistics, their website for mobile,
what people do with their
departments help to shape we encourage you to consult we have also included
smartphones and tablets
our understanding of who is the various organisations that a comparison of mobile
and especially how addicted
using intelligent mobile have supplied the original data. websites to mobile apps.
UK smartphone users are
devices and how they are Each is attributed at the end of
to their devices.
using them. this document, along with a Ian Malone
link to the original report. Managing Director, We Are
Where are they using them,
This data provides a critical Apps, London, January 2013
which aims to show that
insight for any marketing
people are using their phones
departments, entrepreneurs
wherever they go, and takes a
and creative agencies that
closer look at the use of Wi-Fi
need to invest in mobile.
2

3. We Are Apps
We Are Apps is an award-winning, We are always looking for new
London-based full service mobile, opportunities to work with
app and social media agency. clients to create the apps they
We have developed apps for want, so if you are interested
leading brands such as Avon call us on 020 7100 9318 or mail
Cosmetics, Cadbury, Ford and us at enquiries@weareapps.com
News International.
One of our apps has recently Contact:
been honoured as one of Apple’s
‘Best of the App Store 2012’. Tel:
Other accolades include, ‘One of 020 7100 9318
the greatest 100 apps, ever’ by Email:
Apps Magazine and an app of enquiries@weareapps.com
ours has been featured in Apple’s Website:
TV advertising for the iPad. http://www.weareapps.com
Address:
With years of experience in digital 2
nd Floor, Magdalen House
marketing and advertising we 136-148 Tooley Street
help brands and creative agencies London, SE1 2TU
plan, produce and promote the
most effective mobile execution.
3

4. Table of contents
Introduction ...................................................... 2 Where are they using them?........................... 12
The impact of Wi-Fi ................................. 13
We Are Apps ..................................................... 3 Smartphone data use............................... 15
Who uses smartphones and tablets?................. 5 Apps vs. Mobile optimised websites ............... 16
Ownership of smartphones ....................... 5 When apps?............................................. 17
Smartphone take-up by demographic ....... 6 When a mobile website?.......................... 19
Devices being used .................................... 7 To conclude.............................................. 20
How are they using them?................................. 9 Sources ........................................................... 21
Smartphone addiction .............................. 9
Smartphone as a shopping tool ............... 10
4

5. Who uses smartphones and tablets?
Generally speaking, there is a constant rise Ownership of smartphones
in smartphone ownership across all age
ranges with only the over 60’s showing any Blackberry vs. iPhone vs. Android ownership
clear signs of reluctance. Use by the various
socioeconomic groups is fairly even too,
with only a slight dip from the DE category
among males 15-24 but it’s also fair to say
that in the older age segments, the lower
the social category, the sharper the dip
in take-up.
There is very strong take-up of smartphones
in the AB socioeconomic group, especially
among women in the 25-34 age range,
where take-up is a staggering 95%.
Tablets are a little way behind smartphones
in take-up and the general age profile and Source: Ipsos MediaCT. From: Tech tracker Q4 2012
SEG is older and more upmarket than the
general smartphone ownership, something Having reached 50% ownership in 2012, next year will finally see smartphones overtake
that we have seen also with the apps released feature phone ownership in the UK. The iPhone still leads the way but 2013 will be the
for clients in the last 12 months. year when more people own Android powered smartphones. Don’t write off Blackberry
just yet. The new BB10 operating system launches early this year, bringing with it a series
of new smartphones that have definitely caught up with the leading players in terms of
style, power and functionality.
5

6. Smartphone take-up by demographic Take up of tablet computers by age,
Smartphone ownership by gender and SEG, 2012 gender and SEG, 2012
Source: Ipsos MediaCT. From: Tech tracker Q4 2012 Source: Ofcom technology tracker 2012. From: Ofcom communications market report 2012
Smartphone ownership is broadly above 50% in most age groups up Pre-Christmas 2012, tablet ownership was much lower than smartphone
to 45 for woman and 55 for men, with a distinct drop in ownership in ownership although still impressive with 1-in-10 households owning a tablet
the over 65’s. Older men are far more likely to own a smartphone device. General expectation is that the gap will narrow following significant
compared to their female counterparts, but in the younger age gifting of tablets at Christmas. Like smartphones, tablet ownership is broadly
groups of 15-34 more women own a smartphone. similar across age ranges, with the only significant differences coming in older
age groups. Again, as with smartphones, the over 65’s are slower to take up
the new digital devices. Although not reflected in these statistics, anecdotal
evidence and the sheer number of apps for children indicate that tablet
devices are heavily used by the very young.
6

7. Devices being used % Ownership per operating system
Top 10 devices in the UK
Source: Netbiscuits Mobile web metrics, October 2012 Source: Netbiscuits Mobile web metrics, October 2012
From: Netbiscuits Mobile Web Metrics Report From: Netbiscuits Mobile Web Metrics Report
Though this graph shows that the iPhone is the most popular device, When looking at the operating systems, you can see that the gap between the
iOS devices and Android and RIM (blackberry) devices is smaller than it looks at
the Android market is on the rise. Though that might not be clear
first glance when comparing individual devices. This can be better seen when
from a top 10 devices list, Androids strength lies in it having more comparing the percentage of installed base’s from 2011 to 2012.
variety in models than the iOS phones.
7

8. UK consumer smartphone installed base Smartphone platform Tablets sold by brand
market share of sales
Although ownership is a useful criteria, it’s also worth looking at which by country
devices are actually being used, for which it’s a good idea to look at visits to
websites by devices, which gives a more accurate picture of which operating
systems are being used on a real-time, daily basis.
Source: Kantar Worldpanel ComTech, Source: Ofcom research. From: Ofcom
from the Guardian, Android is most- communications market report 2012
used Smartphone OS in UK, overtaking
Apple, data shows
The same can be seen when Pre-Christmas 2012, Apple’s
Source: Kantar Worldpanel ComTech, from the Guardian, Android is most-used
Smartphone OS in UK, overtaking Apple, data shows looking at the market share of iPad is the clear king of the
each operating system, you can tablets. What will be interesting
When looking at the installed base Android has overtaken iOS in 2012. Where the see that Android overtakes the iOS is to see what impact the
iPhone wins in amount of devices sold, Android is clearly the most used operating in every country except the US. much-lower priced new devices
system, being available on more devices. Nokia’s Symbion is in sharp decline and Though within the UK they are taking like Amazon’s Kindle Fire will
Blackberry’s RIM has only decreased a small bit. The take-out is that iPhone and iPad these sales away from RIM and have in the short term.
users are staying loyal to the brand but the same can’t be said of Symbion users, who Symbion, as iOS has also increased
are migrating to Android and, to a lesser extent, Windows Mobile powered devices. in sales compared to last year.
8

9. How are they using them?
Brands and businesses investing in mobile Smartphone addiction
need to understand how the devices are
being used. Unfortunately, the research Activities conducted on a smartphone by GB adults
companies have too broad a remit to dig
down into how devices are used in brand-
centric terms, beyond the too-simplistic
‘downloading apps’. For example, where
does the Nike+ fitness app or an insurance
company’s claims helper app fall into the
categories below?
As there’s little ready-available data on how
the devices are being used beyond generalist
categories below, we’ve taken a look at the
impact smartphones are having on day-to-day
lives – how important the always-on device
is in people’s lives and how they are using
the devices to replace other media.
Smartphones are also starting to take over Source: Ofcom omnibus research, March 2012. From: Ofcom communications market report 2012
the role of other media devices as more
and more people are browsing the web The standout category here is ‘Social networking,’ something we’ve seen from our own
or watching videos on their smartphones. app activities. Brands can use social media tools within their apps and mobile websites
to engage users and give them quick ways to share their interactions with a wider audience.
9

10. Activities conducted less on other devices since Smartphone as
getting a smartphone a shopping tool
Retailers are taking notice of
smartphones as the devices
drive a distinct change in
behaviour from consumers,
with 1-in-2 UK shoppers using
their smartphone during the
purchase process.
Source: Ofcom omnibus research, March 2012
From: Ofcom communications market report 2012
Possibly more relevant than ‘smartphone addiction’ is the subject of device
migration. Clearly, the hugely rich features of the smartphone and tablet are
giving users quicker and easier access to functions delivered by other devices.
Though this doesn’t mean that people are completely moving away from
those devices, the Smartphone is slowly filling up some of the roles these
devices play.
10

11. Activities conducted on a smartphone while Mcommerce activities performed by UK
out shopping smartphone users, July 2012
Source: Ofcom omnibus research, March 2012 Source: ComScore mobilens, “the UK mobile retail landscape”
From: Ofcom communications market report 2012 From: Emarketer, who is the UK mobile shopper?
57% of Smartphone users use their phones for various purposes during It’s obvious that users will be using the mapping features of their
shopping. People want to make their shopping experience easier, smartphones to find their way to relevant stores. What is more
compare products, look up info of the products and even show their surprising is the relatively high percentage of users who are using
friends the products for approval. small-screen devices to purchase items through apps and websites.
This could be driven by lack of access to desktop devices at key times
like lunchtimes, the greater privacy offered by the smaller screens,
the speedier access to shopping baskets when out-and-about or a
combination of all three.
11

12. Where are they using them?
There are no limitations as to where Where we use our smartphones
smartphones are being used. When they
aren’t in a Wi-Fi zone they can use their 3G Source: Ipsos MediaCT,
or now 4G connection to get online virtually “Our mobile planet: UK”
anywhere. This, of course depends on getting
a decent signal and while OFCOM may claim If the 16% using
95% coverage of the UK population, practical smartphones at school
experience demonstrates the missing 5% is a surprise, you may be
covers most of the countryside and many shocked by other research
a football stadium and wine section of that has shown 5% of
the supermarket… primary school children
have their own iPhone.
According to research done by Ofcom, 81%
of the Smartphone users have their phone
switched on all the time, even when they
sleep. 51% of adults use their phones when
they are socialising with others and 23%
during mealtimes, even 22% of adults admit
using their phones in the bathroom.
Source: Ofcom, “A nation addicted
to Smartphones”
12

13. The impact Location of Wi-Fi use on a smartphone
of Wi-Fi
Source: CNet UK, Crave,
“Tube Wi-Fi to cost £15 per
month unless you’re on Virgin,
Vodafone or EE”
Wi-Fi is important for
smartphone users as data
plans can be expensive, a fact
being picked up on by an
increasing number of retailers,
restaurants and entertainment
venues. For the Olympics,
London Transport opened up
free Wi-Fi in several London
Underground stations and
because of the success they
Source: YouGov SMIX
have upgraded to more From: Ofcom communications market report 2012
stations. So far 800,000 people
have signed up for the free We’re not sure of the distinction between ‘public places’ and ‘out and about,’ but the clear inference is when
Wi-Fi service. That’s one in Wi-Fi is made available, users jump on to take advantage of the quicker speeds and more reliable internet
every ten Londoners. connection. Providing Wi-Fi could be an important part of building brand loyalty or even help to tip the user
towards purchase by giving ready access to the brand’s online services.
13

14. How wider access to free Wi-Fi in public locations Importance of smartphones for internet access
changes smartphone use
Source: Ofcom omnibus research, March 2012
Source: KineticWW From: Ofcom communications market report 2012
From: ”Smart devices increasingly influence out of home behaviour as ownership
sees Christmas surge.”
The amount of people that find internet access on their phone more
important than internet access on other devices has also risen since
2011. As browsing the internet on the phone is winning ground over
browsing on our PC’s and laptops.
14

15. Smartphone data use
Percentage of respondents using each range of allowance
Source: YouGov SMIX
From: Ofcom communications market
report 2012
The amount of people with a Data cap bigger
than 500MB is over 50% showing that it’s still
important for people to have plenty of access
to the Internet while not in a Wi-Fi zone.
15

16. Apps vs. Mobile optimised websites
If you want to take your company There are pros and cons to both. The stats that follow can only offer
to the mobile web you will probably Native apps are more expensive in insights into how the time to act is
consider whether you should the short term but offer a better now. You may find the final slide of
develop an app or a mobile website. user experience. Web apps and most interest as it gives an insight
Both have their advantages and mobile websites are initially more into which channel users prefer
disadvantages over each other cost effective at reaching more when carrying out specific tasks.
that should be considered when users on multiple operating systems
deciding which one fits your goal but don’t have as much access to
the best. the richer functionality offered by
devices. The question of which
Surprisingly, you may think, for a route to go down - or rather when
company with the word apps in to go down each route - can’t be
its name, we are agnostic when it answered here; that requires a
comes to choosing between apps planning exercise where user
or mobile websites. Actually, we behaviour, brand KPI’s and
believe that most brands will realise outcomes and other marketing
they can take advantage of both objectives need to be considered.
opportunities to give users relevant
experiences that integrate into busy
lifestyles and the increasing urge
for entertainment.
16

17. When apps? UK app users, 2010-2012
Apps allow for more
Source: Mobile Squared
interactivity, you can make From: “Mobile market trends”
apps interact with almost all
the features that the phone
offers like accelerometer,
the camera and GPS.
Apps also aren’t limited
by a browser.
73% of users also expect apps
to be easier to use than a
mobile website.
Source: Harmony, “Mobile site UK mobile app users by usage
or mobile app?”
If you want regular activity Source: Mobile Squared
and interactivity then apps From: “Mobile market trends”
are also the better choice,
apps also offer the possibility When looking further into the
of offline use. usage though, you can see that
there is a significant increase in
Source: HSWsolutions, app usage as apps become more
“Mobile website vs.
Mobile app: which is the popular and a part of people’s
best for your organization”. daily life.
17

18. UK mobile app revenues
Source: Mobile Squared
From: “Mobile market trends”
App revenues have increased by more than 1/3 since 2010 as more and
more apps are being released into the app stores. The interesting point is
that the dominance of games is reduced as more productivity and lifestyle
apps (think recipe apps) are released.
18

19. When a UK mobile internet users by usage
mobile website?
More companies are optimising
their websites for smartphones
as their analytics show them that
their customers are using the
devices in greater numbers.
The advantage mobile websites
have over apps, is that once
produced they can be used on all
platforms, rather than being
limited to only one like most apps.
Source: Harmony, “Mobile site
or mobile app?”
If you already have a current
website it is relatively inexpensive
to convert it to a mobile website,
and requires considerably less
effort than creating an app. Source: Mobile Squared
From: “Mobile market trends”
Plus users don’t have to download
your website to use it and can
Mobile internet usage is on the rise, people are using their smartphones to go online and
access it immediately.
having a good mobile optimised website will increase the chances of people using your
Source: Marketingland, “Taking your website on their phones, compared to not having an optimised website.
business mobile, mobile web or app”
19

20. To conclude Preference of Mobile browser or Mobile app
If you are looking for something relatively cheap to produce then a mobile
website is probably for you, but If you want something that the user can
really interact with and represents your brand at its best, then you are
arguably much better off with an app.
Obviously, not every brand can afford to produce a native app for every
operating system and also ensure mobile web visitors are getting the
optimal online experience. Inevitably there will be compromises at the
stage of available budgets, but increasingly sales and marketing
departments will be given the appropriate amount of financial support
as businesses realise the significant change in consumer behaviour
and the opportunity servicing mobile users brings.
So our final slide may help product and brand managers decide where
to allocate precious budgets as it demonstrates exactly how users
themselves choose between the two channels.
Source: MDG infograph, “Should you build a mobile app or mobile website”
From: Marketingland, “Taking your business mobile, mobile web or app”
20

21. Sources
All copyrights for statistics and Ensuring you get the most out of report 2012,http://stakeholders. CNet is a tech media website that
the Netbiscuits Platform, we provide ofcom.org.uk/binaries/research/ publishes news, articles, blogs, and
their graphic representations are
a wide range of professional services cmr/cmr12/CMR_UK_2012.pdf podcasts on technology and
acknowledged to be owned by including technical consulting, consumer electronics.
the following organisations: development and customization, •
Source: ComScore mobilens,
managed hosting and training. “the UK mobile retail landscape”, •
Source: Ipsos MediaCT, “Our mobile
•
Source: Ipsos MediaCT, from: Emarketer, who is the planet: UK”, http://www.thinkwith
from: Tech tracker Q4 2012, •
Source: Kantar Worldpanel ComTech, UK mobile shopper?, google.com/insights/emea/library
http://www.ipsos-mori.com/ from the Guardian, Android is http://www.emarketer.com/ /studies/our-mobile-planet-
researchspecialisms/ipsosmediact/ most-used Smartphone OS in UK, (S(ixljszjhzqs4zc35cnwcfnjb)) United-Kingdom/
customresearch/technology/ overtaking Apple, data show, /Article.aspx?R=1009388
techtracker.aspx Ipsos is an http://www.Guardian.co.uk/ Ipsos is an innovative,
innovative, entrepreneurial, technology/2012/feb/21/ comScore gives top agencies the entrepreneurial, client-focused
client-focused organisation, android-smartphones-os-uk-apple analytics advantage to adapt, organisation, providing research
providing research services optimize and engage at the services to clients on a global basis
to clients on a global basis Kantar Worldpanel is the world forefront of digital.
leader in consumer knowledge •
Source: KineticWW, from: ”Smart
•
Source: Ofcom* technology and insights based on continuous •
source: Ofcom*, “A nation addicted devices increasingly influence out
tracker 2012, from: Ofcom* consumer panels. to Smartphones”, http://media. of home behaviour as ownership
communications market report 2012, ofcom.org.uk/2011/08/04/a- sees Christmas surge.”,
http://stakeholders.ofcom.org.uk/ •
Source: Ofcom* research, from: nation-addicted-to-smartphones/ http://www.kineticww.com/
binaries/research/cmr/cmr12/ Ofcom communications market en-GB/home/our-current-thinking
CMR_UK_2012.pdf report 2012, http://stakeholders. /NewsRoom/2012/01/19/
•
Source: CNet UK, Crave, “Tube Wi-Fi
ofcom.org.uk/binaries/research/ to cost £15 per month unless you’re Smart_devices_increasingly _
•
Source: Netbiscuits Mobile web cmr/cmr12/CMR_UK_2012.pdf on Virgin, Vodafone or EE”, http:// influence_out_of _home_behaviour
metrics, October 2012. from: crave.cnet.co.uk/mobiles/tube-wi-fi- _as_ownership_sees_Christmas
Netbiscuits Mobile Web Metrics •
Source: Ofcom* media literacy to-cost-15-per-month-unless-youre- _surge.aspx
Report, http://www.netbiscuits.com/ research, fieldwork carried out on-virgin-vodafone-or-ee-50009951/
mobile-web-metrics-report-2012 by Saville Ross, iter-base, from:
Ofcom communications market
* Ofcom is the communications regulator. We regulate the TV and radio sectors, fixed line telecoms, mobiles, postal services, plus the airwaves over which wireless devices
21

22. Kinetic Worldwide is the world’s Billmonitor is an independent and Human Service Solutions specializes
largest planner and buyer of impartial service that helps mobile in website development and Internet
Out of Home media and the global phone users save money with its marketing strategies that empower
leader in understanding how brands unique bill analysis and mobile price organizations of all types to connect
can connect with people’s lifestyles comparison calculato with target audiences, reach
and the environments they strategic goals, and solidify
engage with. •
Source: YouGov SMIX, from: Ofcom* a professional identity.
communications market report 201,
•
Source: Mobile Squared, http://stakeholders.ofcom.org.uk/ •
Source: Marketingland, “Taking your
from: “Mobile market trends”, binaries/research/cmr/cmr12/ business mobile, mobile web or app”,
http://www.mobilesquared.co.uk/ CMR_UK_2012.pdf http://marketingland.com/taking-
pdfs/mobile_market_trends_uk.pdf your-business-mobile-mobile-
YouGov is an international, website-or-app-23306
mobileSQUARED provides specialist full service online market
research which enables brands, research agency offering custom Marketing Land is a news and
agencies, the public sector and research, omnibus, field and tab information site covering internet
mobile industry to access, and services, qualitative research, marketing, marketing issues and the
engage with, the mobile consumer. syndicated products and market online marketing industry.
intelligence reports.
•
Source: Ofcom* omnibus research, •
Source: MDG infograph, “Should you
March 2012, from: Ofcom* •
Source: Harmony, “Mobile site or build a mobile app or mobile website”
communications market report 2012, mobile app?”, http://www.harmony. from: Marketingland, “Taking your
http://stakeholders.ofcom.org.uk/ co.uk/articles/mobile-website-or- business mobile, mobile web or app”,
binaries/research/cmr/cmr12/ mobile-app/ http://marketingland.com/taking-
CMR_UK_2012.pdf your-business-mobile-mobile-
Harmony does Augmented Reality website-or-app-23306
•
Source: Billmonitor, from: Ofcom* Development and Digital Design
communications market report 201, and Marketing Marketing Land is a news and
http://stakeholders.ofcom.org.uk/ information site covering internet
binaries/research/cmr/cmr12/ •
Source: HSWsolutions, “Mobile marketing, marketing issues and
CMR_UK_2012.pdf website vs. Mobile app: which the online marketing industry.
is the best for your organization”.,
http://www.hswsolutions.com/
services/mobile-web-development
/mobile-website-vs-apps/
* Ofcom is the communications regulator. We regulate the TV and radio sectors, fixed line telecoms, mobiles, postal services, plus the airwaves over which wireless devices
22