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Mobile & SIM Buying (U.K.)

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Mobile & SIM Buying (U.K.) Impact of COVID-19 on Mobile and Sim buying As of April 11, 2020 HYPOTHESIS Lockdown and the current economic-pandemic situation means changes to the status quo – 1. Changes to consumer preferences and shopping behaviour 2. Changes to the need and availability 3. Changes to the competition landscape How has telecom (mobiles and sim) buying impacted and changed since the beginning of 2020? Slight spike in the recent weeks driven by recent launches and consumers engagement with service providers Volume indexed to W2 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 W14 W15 CY-19 CY-20 Clicks indexed to W2 Source: Microsoft Internal Data, All Device Consumers are engaging more with service providers and performing more generic searches looking for better deals Volume indexed to W2 2020 Generics OEM SP 100% W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 W14 W15 Top 10 Generic Queries mobile phone deals mobile phone mobile phones mobiles sim only deals best mobile phone deals mobile sim free mobile phones phones phone deals Source: Internal Microsoft Data,, All Device *SP: Service Provider OEM: Original Equipment Manufacturer Service Providers Remain visible & stay connected as consumers shift brands Service Provider brand searches YoY service provider brand searches (W12 – W15) W12-W15 compared to W2 – W5 2020 CY-20 CY-19 EE 27% 29% Smarty -17% O2 18% 16% Voxi Mobile -23% Tesco Mobile 17% Tesco Mobile 10% 15% Giff Gaff 11% O2 10% 10% Three 9% Giff Gaff 6% 9% Three Vodafone 6% 3% 5% EE -8% Virgin Mobile 5% 6% Vodafone 27% Sky Mobile 3% 4% Sky Mobile -26% ID Mobile 2% 2% Virgin Mobile -12% BT 1% 1% ID Mobile -3% Smarty 1% BT -24% 1% Voxi Mobile 1% 1% Source: Microsoft Internal Data, O&O Search Data, All Device W2 starting 5th Jan 2020, W12 starting15th Mar 2020 Changing competition landscape, highly influenced by the deals & rewards Top stable brands 160% Volume indexed to W2 2020 140% 120% 100% 80% 60% Vodafone EE Giff Gaff O2 Tesco Mobile Three 40% 20% W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 W14 W15 Brands experiencing drastic drop in volume 120% Volume indexed to W2 2020 100% 80% 60% 40% BT Smarty Virgin Mobile Voxi Mobile Sky Mobile 20% Source: Internal Data, O&O Search Data, All Device OEMs Pandemic has affected all brand- some brands more than others But popular brands have grown stronger in their share YoY OEM brand & model searches (W12 – W15) OEM brand and model searches CY-20 CY-19 W12-W15 compared to W2 – W5 2020 44% Apple 40% Apple -19% Samsung 32% Samsung -14% 29% 8% Huawei -4% Huawei 13% 4% Nokia -21% Nokia 4% Motorola -21% 3% Motorola 3% Google Phones -26% 2% Google… 2% Sony -35% 1% Sony 3% OnePlus -23% 1% OnePlus 2% Honor -33% Xiaomi 1% Xiaomi -11% 1% 1% HTC -8% Oppo 0% 1% Oppo -7% Honor 2% DORO -9% 1% HTC 1% LG -15% 1% DORO 0% Source: Internal Data, O&O Search Data, All Device W2 starting 5th Jan 2020, W12 starting15th Mar 2020 Overall lower phone (model + brand) searches across the brand spectrum But new phone launches continue to create intermittent peaks Volume indexed to W2 2020 Apple Huawei Samsung 85% 77% W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 W14 W15 Volume indexed to W2 2020 Others (Doro,HTC,LG) Google Phones Honor Motorola Nokia OnePlus Oppo Sony Xiaomi Source: Internal Data, O&O Search Data, All Device Grab greater engagement at cheaper cost on brand searches Avg. CPC & CTR Comparison (W12 – W15 over W2 – W5) Avg CTR : 6% Avg CTR : 5% Avg CTR : -2% Avg CPC : -27% Avg CPC : -9% Avg CPC : 2% SIMO-PAYG [Sim only – Pay as you go] SIMO-PAYG popularity has further raised since lockdown Volume indexed to W2 2020 91% 81% W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 W14 W15 CY-19 CY-20 Top 10 SIMO-PAYG Queries vodafone top up ee sim only deals sim only deals sim o2 top up giff gaff sim only ee top up best sim only deals tesco mobile top up sim only deals uk Source: Internal Data, O&O Search Data, All Device W2 starting 5th Jan 2020, W12 starting15th Mar 2020 “Top up” and “deals” are the key to SIMO-PAYG While some are looking for best deals shifting brands, others need more top -up Service Provider SIMO-PAYG brand searches W12-W15 compared to W2 – W5 2020 Generics Vs. Brand Split for SIMO-PAYG W2 - W5 W12 - W15 26% Vodafone 28% 23% 56% EE 60% 21% 19% O2 22% 14% Tesco Mobile 14% 45% 40% 6% Others (Voxi, Sky, Smarty, BT, Virgin) 3% W2 - W5 W12 - W15 5% Three 4% Generics Brand 4% Giff Gaff 5% 2% ID Mobile 2% Source: Internal Data, O&O Search Data, All Device Used Phones Used-Refurbished phones got special attention since the lockdown, mostly Apple-iPhone led Volume Indexed to W2 2020 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 W14 W15 New Phones Refurbished Top 10 Refurbished Queries Category Definition: refurbished iphone reconditioned iphone Refurbished category includes and queries containing apple refurbished refurbished iphone x used/refurbished/secondhand/old and other related terms refurbished iphones iphone x refurbished New Phone: any OEM (mobile specific query) and model refurbished iphone 7 used iphone related queries without any refurbished category query apple refurbished uk second hand iphone Source: Internal Data, O&O Search Data, All Device General Sub-Trends Post lockdown, simple & cheap phones for older people and freebies were popular Volume Indexed to W2 2020 100% 103% 99% Trending trends Phone for elders Cheap & Budget phones Cheap/ budget Business Compare Free sims Deals-sale-offers Elderly/ specially abled No upfront cost/ sim free/ unlocked Online Top-ups Rewiew Rewards Rewards & Perks W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 W14 W15 Volume Indexed to W2 2020 Free sim OnlineTop up 231% 145% 100% Source: Internal Data, O&O Search Data, All Device SIMO-PAYG popularity has further raised since lockdown Used-Refurbished phones have received special attention since the lockdown, mostly Apple-iPhone led .
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