adobe digital insights: mobile landscape a moving target

Table of Contents

ADOBE DIGITAL INSIGHTS | MOBILE WORLD CONGRESS 2017 2

U.S. Mobile Insights03 The U.S. is no longer bringing new users to the Internet

04 Industry apps morph into loyalty play

05 Google AMP catches on with U.S. consumers

06 The January Effect

13 Tablets failed to make a comeback in the U.S. and around the world

Appendix

15 Methodology

16 Glossary

17 Data Tables

Global Mobile Insights

07 App usage spikes around the globe each new year

08 Regardless of economy, January Effect occurs

09 Developing nations rapidly adopt smartphones

10 Smartphones drive global growth of 500M new users

11 China & Brazil will lead global smartphone charge

12Tablets historically see usage from affluent countries

TRENDS AT HOME

The U.S. no longer brings new users to the Internet

Website traffic in the United States stays flat -0.4% over the past 36 months

3 out of 4 people already access theInternet (Source: Internet Live Stats)

Smartphone visits continue to grow at the expense of other devices Smartphone visits have grown 69%

since 2014

Desktop and tablets both lost ground(down 23% and 19% since 2014,respectively)

The January Effect Surges in smartphone traffic (7%) and

app installs (8%) each new year providean opportunity for brands

ADOBE DIGITAL INSIGHTS | MOBILE WORLD CONGRESS 2017

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APPS AS A RETENTION STRATEGY

Industry Apps Morph Into Loyalty Play

5/10 apps are used more than ten times (ADI Mobile Benchmark Report 2016)

Yet apps are often deleted because they’renot useful, there are better apps, or neverused (ADI Mobile Survey 2016)

New and repeat use of apps proves difficult to capture

App installs have decreased -38% in thelast two years

App launches have decreased -28% in thepast two years

The United States sets model for the future

Given the US’s decline in app usage, othercountries will soon follow

Larger countries like the UK and Francehave reached a plateau with app usage andare poised to decline in the coming years


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FIRST LOOKS

Google AMP catching on with US consumers

Consumers have welcomed this technology as a quick and efficient way to access content on mobile devices

Top US publishers now see 7% of alltheir traffic (across devices) throughGoogle AMP

Since April 2016 when usage beganpicking up, Google AMP has seen 405%growth through Dec 2016

In November during the electionseason, traffic showed an 896% spike


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THE JANUARY EFFECT

Mobile Traffic Surges Each January

The New Year drives a mobile surge

Smartphone and tablet traffic increase 7%and 6% month-over-month, respectively(January 2017, US)

Excitement tapers, but the upside remains

Excitement levels off in February, as mobiletraffic decreased 9% month-over-month(February 2016, US)

Marketers can capitalize on the surge ofmobile and app traffic and create strategiesto retain the surge throughout the year


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THE JANUARY EFFECT

App Usage Spikes Around the Globe Each New Year

The January Effect is a global phenomenon

December 2015 to January 2016 saw an appinstall spike of 10%

Smart devices received at Christmasappear to be generating excitement forapps, but their usage decreases as the yearpasses


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THE JANUARY EFFECT

Regardless of Economics, January Brings Growth

No matter a country’s circumstances, January brings a boost to traffic

Tablets see more benefits in affluent countries and smartphones see bigger boosts in developing countries


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SMARTPHONE LEADERS

Developing Nations Rapidly Adopt Smartphones

Consumers in developing nations going straight to smartphones

34% higher smartphone share growth compared to affluent nations

Without the infrastructure needed for desktop web, many are mobile first when accessing the Internet

Brazil and Argentina are the fastest growers for smartphone share of traffic

Brazil: Smartphone share of traffic grew 44% YoY for a total of 36%

Argentina: Smartphone share of traffic grew by 43% YoY for a total of 33%


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THE INTERNET ABROAD

Smartphones Drive Global Growth with 500 Million New Internet Users

Booming smartphone growth in India, China and Brazil is the exclusive driver of new internet users

Every country measured saw smartphone traffic grow by at least 60% since 2014

India drove 269M users alone, as smartphone traffic increased by 290% (Desktop traffic is down 6% since 2014, tablet holds steady at 3% growth)

Desktop and tablet traffic fall across the globe

Global desktop down 10% since 2014, US down 23%

Global tablet down 8% since 2014, US down 19%ADOBE DIGITAL INSIGHTS | MOBILE WORLD CONGRESS 2017

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MOBILE PREDICTIONS

China and Brazil will lead the global smartphone charge

Expected smartphone share of traffic by 2018

37%UP 6%

45%UP 9%

46%UP 6%

41%UP 6%

41%UP 5%

China Brazil India Malaysia New Zealand

Slower growth rate, but each % brings millions

Following in Chile’s

footsteps

No signs of growth slowing

Both have historically lagged behind APAC counterparts but

growth is ramping up


TABLETS FOR THE AFFLUENT

Tablets Historically See Usage From Affluent Countries

Tablets prove to be a commodity only the affluent could afford

Tablets have persisted in affluent countriessince 2014

All of the top 10 countries for tablet shareare above $30,000 GDP per capita

Asia and South America have droppedtablets for the much more convenient andcheaper smartphones

None of the countries analyzed have seen growth in tablet share of traffic

While no true gains have been made,tablets has established a foothold in thenorthern European countries and Canada


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THE TABLET TALE

Tablets failed to make comeback around the world

The 2016 holiday season saw steep discounts

• Black Friday: discounts 92% higher vs.2015, resulting in price decreases of 25%

Despite lower prices, tablet share of traffic in 2016 decreased or stayed flat in every country around the world

Tablet Share of Traffic

2014 2015 2016

US 10% 9% 8%

UK 16% 15% 13%

India 6% 5% 3%ADOBE DIGITAL INSIGHTS | MOBILE WORLD CONGRESS 2017

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Methodology

Adobe Analytics

Most comprehensive and accurate report of its kind in industry

Report based on analysis of over 1.7 trillion visits to over 16,000 websites from January 2014 to January 2017

Over 130 billion app launches from over 1000 apps from January 2014 to January 2017 Dozens of countries of analyzed, including the United States and countries within the European and

Asia-Pacific regions

Data from different Adobe Marketing Cloud solutions:

Based on analysis of aggregated and anonymous data

Adobe Marketing Cloud

Adobe Mobile Services


Glossary

1. Countries Analyzed: AR, AU, BE, BR, CA, CL, CN, CO, DK, FI, FR, DE, HK, IN, ID, IR, IT, JA,MX, NL, NZ, NO, PE, PH, PO, PT, RU, SG, ZA, KP, ES, SE, CH, TW, TH, TR, UA, GB, US, VE

2. Affluent Countries: Defined as any country with $30,000+ in GDP per capita3. Developing Countries: Defined as any country with $29,999 or less in GDP per capita4. App Launch: Any time an app is opened by a user on their smart device5. App Install: Any time an app is downloaded onto a users smart device6. App Analyses: Sample excludes social media and messaging apps


Data Tables

Tablet Traffic Growth (APAC, Jan 2014 – Dec 2016) Tablet Share of Traffic (APAC, 2014-2016)2014-01 2014-02 2014-03 2014-04 2014-05 2014-06 2014-07 2014-08 2014-09 2014-10 2014-11 2014-12

Australia 0% -9% 4% 0% 3% 4% 8% 13% 9% 8% 3% 4%

China 0% 2% 8% -2% 10% 3% 14% 14% 9% 2% -2% -2%

India 0% -9% 3% 7% 9% 8% 24% 22% 25% 41% 24% 26%

Japan 0% -7% 8% 1% 5% 5% 8% 11% 13% 16% 11% 13%New Zealand 0% -9% 4% -3% -2% -4% -1% 4% -3% 1% 1% 2%United States 0% -7% 2% -7% -7% -9% -4% -1% -1% -2% 1% 2%

2015-01 2015-02 2015-03 2015-04 2015-05 2015-06 2015-07 2015-08 2015-09 2015-10 2015-11 2015-12

Australia 17% 3% 12% 12% 15% 13% 15% 16% 10% 13% 11% 10%

China -2% -13% 12% -10% -11% -11% -13% -5% -11% -12% -19% -24%

India 35% 18% 31% 25% 29% 29% 40% 43% 40% 50% 28% 21%

Japan 23% 17% 27% 21% 26% 22% 25% 26% 28% 27% 22% 23%New Zealand 17% 6% 20% 15% 15% 9% 13% 13% 4% 7% 7% 1%United States 10% -1% 6% -4% -5% -7% -5% -5% -10% -10% -7% -8%

2016-01 2016-02 2016-03 2016-04 2016-05 2016-06 2016-07 2016-08 2016-09 2016-10 2016-11 2016-12

Australia 22% 7% 15% 13% 13% 11% 12% 11% 4% 7% 1% 0%

China -19% -34% -28% -38% -39% -34% -40% -44% -32% -35% -37% -12%

India 29% 15% 23% 18% 16% 16% 20% 15% 8% 25% -5% 3%

Japan 30% 25% 35% 27% 32% 28% 32% 27% 24% 21% 18% 20%New Zealand 14% 6% 11% 5% 5% 3% 5% 0% -6% -4% -4% -9%United States -1% -11% -8% -14% -15% -19% -18% -16% -19% -20% -19% -19%

2014 2015 2016

Australia 11% 10% 9%

China 6% 4% 3%

India 6% 5% 3%

Japan 6% 6% 6%New Zealand 11% 10% 9%

South Korea 3% 3% 3%United States 10% 9% 8%


Data TablesSmartphone Traffic Growth (APAC, Jan 2014 – Dec 2016) Smartphone Share of Traffic (APAC, 2014-2016)

2014-01 2014-02 2014-03 2014-04 2014-05 2014-06 2014-07 2014-08 2014-09 2014-10 2014-11 2014-12

Australia 0% -8% 9% 3% 11% 11% 14% 20% 22% 31% 29% 32%

China 0% 6% 20% 17% 30% 19% 39% 56% 59% 58% 69% 73%

India 0% -5% 14% 14% 21% 31% 46% 56% 56% 65% 67% 70%

Japan 0% -6% 11% 5% 11% 8% 13% 13% 14% 19% 16% 20%New Zealand 0% -9% 2% 2% -2% 13% 22% 31% 27% 34% 37% 51%South Korea 0% 13% 22% 20% 18% 13% 25% 24% 33% 28% 34% 46%United States 0% -6% 4% 1% 3% 3% 9% 12% 14% 19% 21% 25%

2015-01 2015-02 2015-03 2015-04 2015-05 2015-06 2015-07 2015-08 2015-09 2015-10 2015-11 2015-12

Australia 47% 34% 54% 53% 61% 60% 67% 68% 65% 70% 77% 77%

China 83% 86% 152% 136% 142% 144% 159% 168% 194% 181% 152% 162%

India 82% 76% 120% 129% 138% 140% 148% 154% 152% 166% 152% 154%

Japan 30% 24% 39% 34% 36% 36% 41% 40% 42% 43% 42% 45%New Zealand 65% 55% 98% 84% 83% 92% 113% 115% 107% 109% 107% 127%South Korea 53% 52% 62% 53% 56% 58% 76% 72% 70% 87% 85% 102%United States 35% 26% 42% 34% 37% 39% 46% 45% 41% 45% 48% 49%

2016-01 2016-02 2016-03 2016-04 2016-05 2016-06 2016-07 2016-08 2016-09 2016-10 2016-11 2016-12

Australia 94% 76% 92% 92% 98% 94% 106% 109% 104% 112% 109% 105%

China 173% 162% 185% 166% 166% 202% 175% 161% 188% 184% 194% 222%

India 178% 157% 174% 170% 193% 202% 236% 244% 252% 259% 261% 293%

Japan 52% 47% 62% 51% 55% 55% 60% 55% 66% 63% 58% 65%

New Zealand 145% 139% 171% 169% 161% 162% 180% 171% 159% 151% 147% 157%

South Korea 101% 109% 130% 138% 128% 126% 149% 111% 114% 113% 116% 120%

United States 56% 48% 60% 58% 62% 62% 70% 73% 67% 65% 65% 69%

2014 2015 2016

Australia 27% 33% 39%

China 18% 24% 31%

India 20% 31% 40%

Japan 35% 42% 47%New Zealand 17% 27% 36%

South Korea 30% 35% 43%United States 25% 31% 37%


Data Tables

Smartphone Traffic Growth (Europe, Jan 2014 – Dec 2016) Smartphone Share of Traffic (Europe, 2014-2016)2014-01 2014-02 2014-03 2014-04 2014-05 2014-06 2014-07 2014-08 2014-09 2014-10 2014-11 2014-12

France 0% -5% 4% 4% 15% 13% 23% 26% 28% 38% 44% 53%

Germany 0% -10% 5% 5% 17% 10% 13% 17% 28% 39% 42% 56%

Norway 0% -7% 6% -2% 8% 17% 17% 39% 31% 44% 56% 64%

Sweden 0% -11% -8% -15% -9% -11% 0% 2% 1% 12% 9% 15%

United Kingdom 0% -8% 1% -1% 6% 2% 7% 13% 16% 24% 24% 24%

United States 0% -6% 4% 1% 3% 3% 9% 12% 14% 19% 21% 25%

2014 2015 2016

France 14% 21% 26%

Germany 15% 22% 29%

Norway 20% 28% 34%

Sweden 25% 32% 39%

United Kingdom 24% 32% 37%

United States 25% 31% 37%

2016-01 2016-02 2016-03 2016-04 2016-05 2016-06 2016-07 2016-08 2016-09 2016-10 2016-11 2016-12

France 132% 111% 124% 114% 123% 136% 148% 145% 140% 158% 160% 180%

Germany 129% 111% 125% 118% 124% 122% 134% 132% 141% 160% 162% 185%

Norway 106% 91% 101% 95% 103% 115% 111% 131% 120% 135% 155% 158%

Sweden 59% 57% 63% 53% 53% 55% 68% 70% 66% 72% 78% 83%

United Kingdom 69% 60% 70% 66% 68% 69% 76% 77% 81% 91% 85% 83%

United States 56% 48% 60% 58% 62% 62% 70% 73% 67% 65% 65% 69%

2015-01 2015-02 2015-03 2015-04 2015-05 2015-06 2015-07 2015-08 2015-09 2015-10 2015-11 2015-12

France 69% 46% 61% 60% 72% 74% 89% 92% 92% 100% 101% 117%

Germany 63% 46% 61% 53% 63% 64% 71% 71% 79% 94% 99% 117%

Norway 77% 57% 72% 58% 73% 80% 73% 90% 97% 99% 108% 115%

Sweden 23% 15% 25% 22% 22% 24% 40% 33% 37% 42% 46% 51%

United Kingdom 36% 23% 38% 33% 42% 39% 45% 47% 46% 56% 59% 57%

United States 35% 26% 42% 34% 37% 39% 46% 45% 41% 45% 48% 49%


Data Tables

Tablet Traffic Growth (Europe, Jan 2014 – Dec 2016) Tablet Share of Traffic (Europe, 2014-2016)2014-01 2014-02 2014-03 2014-04 2014-05 2014-06 2014-07 2014-08 2014-09 2014-10 2014-11 2014-12

France 0% -10% -2% -3% 5% 6% 8% 2% 8% 11% 16% 17%

Germany 0% -11% -1% -6% 1% -3% -1% 3% 8% 14% 13% 22%

Norway 0% -13% -8% -18% -13% -5% -18% -5% -9% -1% 2% 10%

Sweden 0% -12% -3% -12% -6% -8% -10% -2% -2% 1% -1% -5%

United Kingdom 0% -12% -6% -7% -5% -9% -7% 0% -3% 2% 2% 1%

United States 0% -7% 2% -7% -7% -9% -4% -1% -1% -2% 1% 2%

2014 2015 2016

France 12% 11% 10%

Germany 10% 11% 10%

Norway 14% 13% 12%

Sweden 11% 11% 10%

United Kingdom 16% 15% 13%

United States 10% 9% 8%

2016-01 2016-02 2016-03 2016-04 2016-05 2016-06 2016-07 2016-08 2016-09 2016-10 2016-11 2016-12

France 31% 14% 19% 12% 14% 15% 11% 7% 5% 10% 11% 12%

Germany 35% 20% 23% 17% 16% 9% 11% 10% 8% 21% 17% 21%

Norway -4% -14% -18% -18% -20% -21% -25% -18% -23% -17% -11% -16%

Sweden 14% 7% 8% -2% -7% -11% -4% -1% -10% -1% 0% 4%

United Kingdom 11% 0% 2% -2% -3% -7% -6% -6% -8% -3% -6% -7%

United States -1% -11% -8% -14% -15% -19% -18% -16% -19% -20% -19% -19%

2015-01 2015-02 2015-03 2015-04 2015-05 2015-06 2015-07 2015-08 2015-09 2015-10 2015-11 2015-12

France 28% 9% 17% 10% 16% 13% 17% 14% 16% 19% 17% 20%

Germany 31% 12% 18% 8% 13% 9% 11% 10% 13% 19% 20% 24%

Norway 20% -4% 1% -9% -1% -3% -10% -9% -10% -8% -5% -5%

Sweden 9% -3% 4% 0% 2% -5% -4% -2% 2% 3% 6% 4%

United Kingdom 15% -1% 6% -1% 5% -2% 2% 4% -1% 4% 4% 0%

United States 10% -1% 6% -4% -5% -7% -5% -5% -10% -10% -7% -8%
