jiwire - insightsreport q4 2011

Q4 2011

Table of Contents

JiWire Mobile Audience Insights Report Q4 2011

Source: JiWire, Q4 2011 1

The Q4 Mobile Audience Insights Report examines location-based trends, mobile shopping trends, and connected device adoption. This quarter we examined three key emerging trends in the location and mobile

markets. The first area reviews response to location-based messaging. The second key area looks at location

specific shopping behaviors and the usages of emerging technologies. The third area evaluates the relationship

between smartphone and tablet buying preferences. Key highlights include:

•  75% of the on-the-go audience take action after seeing a location-based message

•  More%than%one%third%of%mobile%consumers%comparison%shop%on%while%in5store%•  In the United Kingdom, mobile devices make up 47% of Wi-Fi usage, surpassing laptops for the first time

Location-Based Trends 2-3

Mobile Shopping Behavior 4-5

Connected Device Adoption 6-9

Worldwide Location Highlights 10-11

Special Report: Automotive 12-14

On-the-go consumers comparison shop

while in-store


Location-based trends: Content preferences

80% of the on-the-go audience prefer locally relevant advertising •  In Q3 2011, on-the-go consumers indicated that they preferred Free Content with advertising (84%) as opposed to Paid

Content without advertising (16%). •  In Q4 2011, consumers indicate that they would also prefer to see advertising that is relevant to their location. •  Results, in both cases, are consistent across genders and age.

Key Insights

2 Source: JiWire, Q4 2011 and Q3 2011

Would you prefer ads that are locally relevant to you?

No Yes

Which would you prefer?

Free, ad-supported content

Pay for content without ads

Source: JiWire, Q4 2011 Source: JiWire, Q3 2011


Location-based trends: Response to location-based messaging

75% of mobile consumers take action after seeing a location specific message •  The top three actions overall include clicking on a location specific ad (31%), searching for the nearest location (21%) and/

or conducting additional research (21%). •  Smartphone owners, in general, show higher response than non-smartphone owners to locationized messaging. •  Behavior further varies by smartphone device type. In addition to clicking on an ad, iPhone users are most likely to conduct

additional research (22%), Android users search for the nearest location (25%), and Blackberry users immediately make a purchase (21%).

•  eMarketer research reveals a close relationship between research and purchase for the on-the-go smartphone audience*.

Key Insights

3 Source: JiWire, Q4 2011

eMarketer Local Commerce: How Consumers Find Nearby Retailers, Nov 2011

Source: JiWire, Q4 2011

Consumers who have taken action in response to a location specific message

Find%a%Store%

iPhone Android Blackberry Non-Smartphone

Clicked on an ad 34% 32% 32% 25%

Searched for the nearest location

17% 25% 17% 15%

Researched the product

22% 24% 20% 13%

Visited the website 20% 23% 19% 14%

Visited the store 18% 22% 18% 15%

Made a purchase 19% 19% 21% 18% Source: JiWire, Q4 2011

No

Yes

Behavior by Mobile Device Type

Source: JiWire, Q4 2011 *comScore “Handheld Shopping: How Mobile is Changing the Retail Environment,” Dec 7, 2011

JiWire Mobile Audience Insights Report Q4 2011 Mobile shopping behavior: In-store shopping behavior


Key Insights

Which have you done when shopping in-store with your mobile device?

34% of consumers comparison shop on their mobile devices while in the store •  Comparison shopping is consistently the lead in-store activity category across ages and genders. •  Consumers between the ages of 25-34 are the most likely to comparison shop in-store (39%) and purchase on their mobile

devices instead of in the store (13%), commonly referred to as the ‘showroom’ tendency. •  Shoppers are also four times more likely to search for reviews (27%) than to search for a friend’s recommendation (6%). •  21% of the on-the-go audience also searched for coupons while in-store. comScore estimates that 37% of all smartphone

owners have used location-based coupons, and an additional 42% would be interested in doing so*.

4

Comparison Shopped

Searched for reviews

Searched for coupons

Watched videos,

demos, etc

Purchased on a mobile

phone instead of the store

Searched for a friend’s

recommendation

34%

27%

21%

14% 12%

6%


Age Breakdown

<24 25-34 35-44 45-54 55+

Comparison Shopped 28% 39% 38% 36% 28%

Searched for reviews 22% 31% 34% 28% 20%

Searched for a coupon 19% 26% 25% 19% 13%

Purchased on mobile phone

instead of store 15% 13% 14% 9% 9%

Searched for a friend’s

recommendation 9% 7% 6% 5% 4%



Mobile shopping behavior: Coupon and QR code redemption

Key Insights

Mobile commerce is making strong in-roads, evident by coupon and payment adoption •  34% of consumers have redeemed an Online coupon in the past 90 days, followed by newspaper coupon redemption (22%),

then mobile coupon redemption (18%). •  Mobile coupon redemption is nearing newspaper coupon redemption thresholds. Digital (online + mobile) couponing is

leading print couponing as a channel overall. •  18% of all consumers have scanned a Quick Response (QR) code, representing half of consumers who know they have QR

scanners. With a 33% of consumers not knowing if they have mobile QR scanners there is much room for growth in this area. •  11% of consumers have reported using a mobile payment system, such as Google Wallet.

5

Which of the following actions have you taken in the past 90 days?

Redeemed an online coupon

Redeemed a newspaper

coupon

Redeemed a mobile coupon

Scanned a Quick Response

code

Used a mobile payment system

None

34%

22%

18% 18%

11%

38%

Does your mobile device have a Quick Response (QR) scanner?

Yes No


I don’t know



Connected device adoption: Public Wi-Fi network usage by device

The public Wi-FI device mix continues to change in Q4 2011 •  In the U.S., laptops still represent the majority of Wi-Fi connections at 56%. The remaining 44% is made up by

smartphones and tablets. •  In the U.K., however, smartphones now account for 47.2% of connections., surpassing laptops at 44.4.%. •  Tablet connections represent similar proportions in both U.S. and the U.K. at 11.2% and 8.4%, respectively.

Key Insights

6 Source: JiWire internal network data, Q4 2011


Smartphone Laptop Tablet Smartphone Laptop Tablet

56.0%

32.8%

11.2%

44.4% 47.2%

8.4%

Connections by Device: U.K. Q4 2011 Connections by Device: U.S. Q4 2011

Q4 Rank Mobile Device OS

Q4 2011 % of Ad

Requests

Q3 Rank

% Change in Market Share

1 iOS 83.1% 1% + 3.2%

2 Android OS 12.9% 2% + 1.9%

3 RIM OS 2.2% 4% + 0.0%

4 Windows OS 0.8% 3% - 4.5%

5 WebOS 0.6% 7% + 0.2%

6 Symbian 0.3% 6% - 0.1%

7 Bada OS 0.0% 9% 0.0%

8 Linux 0.0% 12% 0.0%

Q4 Rank Mobile Device Top 10

Q4 2011 % of Ad Requests

Q3 Rank


1 Apple iPhone 41.1%% 1 - 0.8% 2 Apple iPad 30.9%% 2 + 7.1% 3 Apple iPod Touch 12.1%% 3 - 2.0% 4 HP TouchPad 0.9%% - + 0.9% 5 Kindle Fire 0.9%% - + 0.9% 6 BlackBerry Torch 0.7%% 5 0.0% 7 HTC Evo 0.6%% 37 + 0.5% 8 Samsung Galaxy Tab 0.5%% 16 + 0.3% 9 Samsung Galaxy S 0.4%% 12 + 0.1%

10 HTC Inspire 0.3%% - + 0.1%

Key Insights:

Note: JiWire measurement includes all mobile device types in order to provide a complete view of how the on-the-go audience is connecting. * OS: Operating System.

Connected device adoption: U.S. highlights Top 10 Wi-Fi Mobile Device: Q4 2011 Top Wi-Fi Mobile OS: Q4 2011




7

Many changes seen in Top 10 mobile devices in Q4 2011 •  Two new tablets enter the Top 10: the HP Touchpad (0.9%) and the Kindle Fire (0.9%) •  The Apple iPad shows the highest increase of all devices, growing by 7.1%.

iOS and Android increases in market share while Windows OS decreased •  iOS and Android OS increase by 3.2% and 1.9%, respectively, at the expense of Windows OS which drops by 4.5%.

Key Insights:

Note: JiWire measurement includes all mobile devices in order to provide a complete view of how the on-the-go audience is connecting. * OS: Operating System.




8

iPad makes significant market share gains in the fourth quarter of 2011: •  The iPad increases by 16.7% to secure its position as the No. 2 ranking device in the U.K. •  Blackberry also reports increases with the Torch and Bold reaching the Top 10 for the first time.

iOS makes large market share gains in the fourth quarter of 2011: •  iOS gains 12.1% market share in Q4 2011 ending a 2 quarter run of consecutive drops. RIM sees gains of 1.6%. •  Android and Windows OS show large decreases in market share of 4.7% and 7.8%, respectively.

Q4 Rank Mobile Device OS

Q4 2011 % of Ad

Requests

Q3 Rank


1 iOS 83.2% 1 + 12.1%

2 Android OS 11.9% 2 - 4.7%

3 RIM OS 3.1% 4 + 1.6%

4 Symbian OS 1.0% 6 0.0%

5 Windows OS 0.6% 3 - 7.8%

6 webOS 0.2% 9 + 0.1%

7 Bada OS 0.1% 8 - 0.1%

8 Linux OS 0.0% 10 0.0%

Q4 Rank Mobile Device Top 10

Q4 2011 % of Ad Requests

Q3 Rank


1 Apple iPhone 51.0% 1 + 0.4% 2 Apple iPad 27.1% 3 + 17.0% 3 Apple iPod Touch 5.0% 2 - 5.4% 4 HTC Desire 1.7% 5 - 0.1% 5 Samsung Galaxy S II 1.2% 9 + 0.2% 6 Samsung Galaxy Tab 1.0% 32 + 0.8% 7 Samsung Galaxy S 0.8% 8 - 0.6% 8 BlackBerry Torch 0.7% 16 + 0.4% 9 HTC Sensation 0.6% + 0.6%

10 BlackBerry Bold 0.5% 26 + 0.3%

Top Wi-Fi Mobile OS: Q4 2011 Top 10 Wi-Fi Mobile Device: Q4 2011

Connected device adoption: U.K. highlights


JiWire Mobile Audience Insights Report Q4 2011 Connected device adoption: Evolving OS ecosystems

iPhone and Android smartphone consumers show strong brand affinity to operating systems •  89.3% of on-the-go iPhone users either own or plan to purchase an iPad. Roughly 10% of consumers are considering

other devices including Android-based tablets (7.4%) or the Blackberry Playbook (0.4%) with 2.9% overall still undecided. •  The majority of Android owners also prefer the iPad (60.8%), though nearly a third of of consumers own or plan to buy an

Android-based device (27.4%); 11.8% of consumers are still undecided. •  By contrast, 3.7% of Blackberry users own or plan to purchase a Blackberry Playbook. The remaining 90.4% are

interested in other tablet models, with the iPad being the majority preference (77.9%), and 12.5% interested in Android-based tablets; 5.9% are still undecided.

•  Regardless, iPad dominates the Tablet ecosystem.

Key Insights

9

What kind of tablets are smartphone owners buying?


iPad

89.3%

iPhone owners

Undecided

2.9%

Android owners Blackberry owners

Blackberry Playbook

0.4%

Android Tablets

7.4%

iPad

60.8%

Undecided

11.8%

Blackberry Playbook

0.3%

Android Tablets

27.1%

iPad

77.9%

Undecided

5.9%

Blackberry Playbook

3.7%

Android Tablets

12.5%

Q1 2011 Q2 2011 Q3 2011 Q4 2011

Key Insights:

Worldwide public Wi-Fi locations continue to grow throughout 2011:

•  Quarterly growth of 5.4% from Q3 2011 to Q4 2011.

•  Annual growth of 64.8% from Q4 2010 to Q4 2011.

•  Total public Wi-Fi locations have more than doubled since 2009.

Worldwide location highlights: Public Wi-Fi locations

2007 2008 2009 2010 2011

219,681

289,476 237,507

Worldwide quarterly growth in public Wi-Fi locations

*Base starting at 230,000



546,783


577,250

10

647,788

414,356

682,929

682,929

Worldwide public Wi-Fi locations: 2007 – 2011

Q4 Rank Country Q4 2011

# of Locations Q3 2011

Rank % Change

(from Q3)

1 United Kingdom 181,697 1 0.1%

2 United States 110,332 2 5.8%

3 China 103,770 3 1.5%

4 South Korea 83,638 4 20.2%

5 France 35,912 5 3.8%

6 Taiwan 19,311 9 34.9%

7 Russian Fed. 16,677 6 0.1%

8 Japan 15,662 8 6.7%

9 Germany 14,879 7 1.0%

10 Sweden 9,052 10 16.6%

77.1%

Public Wi-Fi business models: Worldwide Q4 2011

77.6%

Public Wi-Fi business models: U.S. Q4 2011

22.3%

76.2% Paid

Free

22.9%

0.9%

0.1%

77.7%

Worldwide location highlights: Public Wi-Fi locations




South Korea, Taiwan and Sweden have highest growth rates in Q4 2011 •  South Korea keeps the No. 4 position while Taiwan increases to No. 6, with growth rates of 20.2% and 34.9% respectively. •  Sweden produces a 16.6% increase in market share but remains in the No. 10 spot. Free locations continue to see growth in the U.S. but remain consistent worldwide •  Free locations in the U.S. have increased by 0.9%, from 76.2% in Q3 2011 to 77.1% in Q4 2011, while total free locations

Worldwide show a decrease of 0.1%.

11

Increase in Free

Paid

Free

Increase in Paid

Special Report: Automotive


12

JiWire Mobile Audience Insights Report Q4 2011 Automotive trends: Purchasing intent and behavior

25% of the on-the-go audience plans to purchase a car in the next 12 months •  80% of consumers report responding to an advertising message: 30% have visited the website, 23% have clicked

on an ad, 13% have scheduled an appointment, and 12% have gone directly to the dealer. •  While overall results rank similarly by gender, women were fifty percent more likely to schedule an appointment

than men – 17% compared with 11%, respectively.

Key Insights

Visited the website

Scheduled an appointment

Gone directly to the dealer


After seeing an ad, which of the following actions have you taken?

30%

13% 12%

23%

Clicked on the ad

None of the above

20%

Do you plan to purchase a car in the next 12 months?


YES


JiWire Mobile Audience Insights Report Q4 2011 Automotive trends: Locationbased behavior

Key Insights

46% of On-the-Go consumers are seeking location-specific information •  In-market shoppers view the ‘find a dealer’ and ‘check availability’ as the most important location-based mobile

services, garnering 23% of respondents, respectively. •  Women are also the most likely to use location-based tools: 26% believed ‘finding a dealer’ was the most important,

followed closely by ‘checking availability of a make or model’ at 25%. Men, by contrast, were more interested in ‘reviewing product specs’.

•  ‘Price comparison’ and ‘financing tools’ were listed as other important features consumers would like to have.

Which mobile services would help the most with your auto-buying decision?


82%

77%

66%

45%

28%

9%

13% 10%

15% 19%

16% 39%

14% 58%

9%

27%

23% 23%

13%

See Product Specs

Find a Dealer

Watch product videos

Interactive Tools

Check Availability of Make or Model

Other

3% 11%

Demographic Breakdown

<24 25-44 45+

See Product Specs

24% 29% 26% 29% 22%

Find a Dealer 32% 19% 18% 20% 26%

Check Availability

19% 23% 24% 21% 25%

Watch Product Videos

13% 15% 10% 12% 15%

Use Interactive Tools

7% 11% 15% 13% 9%

Other 1% 3% 6% 4% 3%



Methodology:

JiWire’s Mobile Audience Insights Report is based on data from approximately 315,000 public Wi-Fi locations, as well as surveying more than 5,000 customers randomly selected across JiWire’s Wi-Fi Media Channel in October– December 2011. JiWire serves advertisements to over 30,000 public Wi-Fi locations in North America and we record data from every ad request. This report is based on the ad request data we collected from October – December 2011. Quarterly public Wi-Fi location rankings and business model distributions are based on the final day of the quarter.

JiWire is the leading mobile audience media company, combining location and audience data to deliver targeted advertising across premium locations and wireless devices.

This Insights report provides a snapshot of usage trends and audience data over public Wi-Fi

for the fourth quarter of 2011. This report is intended to highlight market trends for advertisers.

JiWire’s Location-Based Media Channel is comprised of more than 30,000 public Wi-Fi locations through partnerships with

more than 30 leading wireless broadband telecommunications providers, with venues such as airports, hotels and cafés that serve more than 50 million unique users monthly. JiWire connects with the on-the-go audience across

multiple devices from laptops, to smartphones, to tablets. JiWire’s registry of public Wi-Fi locations includes more than 450,000 public Wi-Fi locations in 144 countries.

JiWire has been reaching on-the-go audiences since 2003.

For questions about this report, or for recommendations for future reports,

please contact us at [email protected].

jiwire - insightsreport q4 2011

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