Mobile Messaging Apps Study : Indonesia

September 2014 Contents

1. Research Objectives & Methodology 2. Key Findings 3. Mobile Consumption Behavior 4. Message Apps Usage & Behaviors – Download Intent – App Awareness & Discovery – Messaging App Preferences – In-App Purchases 5. Recommendations

OBJECTIVES & METHODOLOGY Objective InMobi conducted this study to identify the demographic profile of messaging apps users in Indonesia, frequency of use, preferences, factors that influence download, in-app purchases and optimal price points. Research Methodology

On-device survey Sample of n= 240 Indonesian Respondents recruited via conducted over Kinesis mobile users InMobi mobile ad network in mobile platform Indonesia between May and June 2014 Survey Participants Demographics

2%

7% 8% 15-17 11% 18-24 22% 25-34 96% 35-44 22% 45-54 4% 55-64 65+ 80%|20% 28%

Gender OS Age Group KEY FINDINGS Key Findings

App Discovery Top Reasons Why Users Channels Download Messaging Apps 97% of mobile messaging users in Indonesia access their app multiple times daily Staying in touch with friends 61% 46% Staying in touch with 58% Browsing The family App Store Ability to share photos and videos 43%

Staying in touch with 42% co-workers 42% 37% of In-App Purchases are Word Of Mouth for Digital Goods Cost 32% Early adopters of messaging apps are under 35 20% Reasonable Price Point for Mobile Ads In-App Purchase IDR 18241 (US $1.6)

MOBILE CONTENT CONSUMPTION BEHAVIOR 4 in 5 Mobile Internet Users Send Daily

Several times a day 68%

A few times a day 11%

About once a day 7%

A few times a week 8%

A few times a month 2%

Once a month or less Tablet 4%

Q) How frequently do you read or send text messages (SMS/MMS) on your cell phone? (n = 240)

Indonesian Mobile Consumers Most Frequent Social Networking And News/ Weather Sites And Messaging Applications

Social Networking 59%

News/Weather 46%

Messaging/Chat apps (not including SMS/MMS) 41%

Games 29%

Sports 23%

Entertainment 22%

Shopping 14%

Q) What type of applications or web content do you access regularly on your mobile device? Select all that apply. (n = 240) MESSAGING APPS USAGE BEHAVIORS & PREFERENCES Messaging Apps Score Over Social Networks in Terms of Communication

Preferred channel of mobile communication 39%

SMS 20% 21% 18% Friends & Family 2%

. . .

SMS/MMS Voice Calls Messaging/Chat Apps Social Networking Email

Q4. Q)How Of do all you the typically ways youlearn can about communicate finance-related withproducts others and servicesthrough information? your mobile . device, which method do you prefer the most? (n = 240) Consumers Prefer Messaging Apps Because …

Mobile Messaging Apps

• Are easier to use • And more efficient compared to voice and text

• Save them money • By avoiding expensive operator data charges

• Promote creative expression • Videos, photos and custom

• Have increased functionality • Group chat, ability to communicate with friends, family & co-worker

• Are communities in themselves • Chat functionality, socialTablet networking, gaming & shopping

Messaging Apps Ownership……..

4.1 3.6 3.0 2.6 2.4 2.1

India Indonesia South Africa* Brazil* China* US*

Note: * Source for these countries are from On Device Research, November 2013 India & Indonesia data is from InMobi Research For marketers, messaging apps provide another opportunity to integrate into consumers’ daily mobile activities 97% of Users Access Their Messaging Apps Multiple Times Per Day

Frequency of accessing messaging/chat apps on mobile device

89% Several Times a 7% A Few Times a Day Day

1% About Once a Day 2% A Few Times a Week

0% A Few Times a Month 0% Once a Month or Less

Q) How frequently do you access messaging/chat apps on your mobile device? (n = 202) Young Adults Under 35 Lead Adoption Of Messaging Apps, But Older Audience Are Catching Up..

Demographic profile of mobile messaging apps users

57% Younger audience (Under 35) 82% Male 43% 17% Female Older audience (35+)

21% 48% Self Employed/ Middle Income (IDR Businessman 2,000,001 – 10,000,000 IDR)

30% Lives in Jakarta.

23% 21% Lives in Surabaya, Working Class / Bandung atau Medan Regular Job

Top Reasons For Using Messaging Apps

Ability to communicate with friends 69%

Ability to communicate with family 52%

Ability to share photos and videos 50%

Ability to communicate with co-workers 32%

Cost 24%

Group messaging capabilities 23%

Stickers and emoticons 16%

Ability to delete messages after they are sent 6%

Q) When using mobile messaging/chat apps, what is most important to you? Please select up to 3 options. (n = 94) DOWNLOAD INTENT 63% Of Users Expect To Download Messaging App In The Next 30 Days

Likelihood of downloading a mobile messenger/chat app in the next 30 days

Very Likely 40%

Somewhat Likely 23%

Neutral 31%

Somewhat Unlikely 4%

Very Unlikely 1%

Q) Mobile messenger/chat apps allow you to communicate with friends and family through text messages, emoticons, photos, video, and voice for no charge. How likely are you to download a mobile messenger/chat app in the next 30 days? (n=142) Staying in touch with friends & family and ability to share photos and Topvideos Reasons are the Thatbiggest In flfactorsuence that Messaging drive users Apps to download Downloads messaging apps

Ability to communicate with friends 61%

Ability to communicate with family 58%

Ability to share photos and videos 43%

Ability to communicate with co-workers 42%

Cost 32%

Group messaging capabilities 35%

Stickers and emoticons 24%

Ability to play games within messaging/chat app 23%

Celebrities/official accounts 8%

Q) When deciding whether to use mobile messaging/chat apps, what is most important to you? Please select all that apply. (n=142)

APP AWARENESS & DISCOVERY

In Terms Of Usage, BBM Is The Most Used Messaging Service In Indonesia With 84% Usage Rate, Followed By WhatsApp Messenger

Mobile messaging apps most used

BlackBerry Messenger (BBM) 84%

WhatsApp Messenger 72%

LINE 46%

Facebook Messenger 40%

WeChat 28%

Yahoo! Messenger 24%

Skype 20%

KakaoTalk 19%

Google Hangout 19%

Snapchat 4%

Kik 3%

Q) Which mobile messaging/chat apps do you use? Please select all that apply (n=142)

Mobile Users Discovers Messaging Apps Through Various Media Channels

Mobile messaging app discovery channels

Browsing the app store 46%

Word of Mouth 42%

Ads on mobile device 20%

Ads on TV 14%

Outdoor ads 5%

Other/Don't Recall 12%

Q) How did you find out about mobile messaging/chat apps to download? (n=98) MESSAGING APP PREFERENCES Satisfied Users Are Very Likely To Spread Positive Word Of Mouth

Satisfaction level with Likelihood of recommending the most used apps messaging app to others

Very Likely 41% Very Satisfied 35%

Somewhat 28% Somewhat Likely 48% Satisfied Neutral 29% Neutral 13% Somewhat 2% Unlikely

Q) Now think about the mobile messaging/chat app you use the most. How satisfied are you with this app? (n= 93) Q) And how likely are you to recommend this app to others? (n=93)

Mobile Users Leverage Messaging Apps For Multiple Purposes

Mobile messaging apps usage by activity

Q) Now think about the different mobile messaging/chat apps you use. Which activities do you use each app for? (n=80)

Three-quarters of respondents view BlackBerry Messenger (BBM) for Android and iOS favorably

Opinion of BlackBerry Messenger (BBM) for Android and iOS

Very favorable 31%

Somewhat favorable 44%

Neutral 20%

Somewhat unfavorable 3%

Very unfavorable 1%

I haven’t heard of this app before 1%

Q) What is your opinion of BlackBerry Messenger (BBM) for Android and iOS? (n=239) In-App Purchase (IAP) Nearly 30% Of Mobile Users Have Made An In-App Purchase When Using A Messaging App

In-App purchases made when using a mobile messaging/chat app

Yes, I purchase these types of items once in a while 4%

Yes, I purchase these types of items often 14% 14% of users have never made an In-App purchase but would consider it

Yes, I have purchased these types of items once or 11% twice

No, I have never purchased any items in an app but I 14% would consider it

No, I have never purchased any items from an app 56%

Q) When using a mobile messaging/chat app, have you made any in-app purchases? (n=98) About One Third of App Users Would Make an In-App Purchase to Upgrade the Messaging App with Extra Features

Types of In-App purchases made when using mobile messaging apps

Digital goods purchases* 37%

Upgraded app with extra features 36%

Upgraded app without ads 20%

Physical goods purchases 15%

Others 12%

*Digital goods purchases includes Games, stickers & emoticons, virtual currency

Q) What types of in-app purchases have you made or would you consider making? (n=98) Price Preferences For In-App Purchase

55%

Expensive Price Point : IDR 31207 (US $ 2.7) Reasonable Price Point : IDR 18241 (US $1.6)

28% 24% 21% 17% 17%

10% 10% 7% 7% 3% 0%

IDR 9500 and above IDR 19000 and above IDR 29000 and above IDR 39000 and above IDR 49000 and above IDR 59000 and above

Reasonable Expensive

Q) At what price would an in-app purchase be so expensive that you would not consider buying it? Q) At what price would an in-app purchase be reasonable to purchase? (n=29) RECOMMENDATIONS 86% of respondents send or receive multiple mobile messages per day. Leverage the mobile messaging/ chat app opportunity to fill this need to communicate with other via mobile messages. 1

Understand who your target consumers are and what factors consumers find most important in messaging/ chat applications. 97% of respondents already use mobile messaging/ chat apps, and nearly two-thirds of them are 2 planning to download a messaging/ chat app in the next 30 days.

Mobile consumers discover messaging/ chat apps through multiple channels. Acquire new users utilizing mobile ads. Design dynamic and engaging mobile experiences that introduce consumers to messaging/ chat applications, showcase app features, and enable them to seamlessly 3 download the app. Indonesian mobile consumers most frequent social networking and messaging and news/ weather mobile sites/applications. Generate brand awareness by targeting ads to these mobile properties and other sites they 4 frequent.

Nearly one-third of mobile users make in-app purchases. Digital goods purchases and upgrading apps with additional features are the most popular types of in-app purchases. Understand what types of in-app purchases 5 users are making and offer those that make the most sense for your app.

Identify the optimal price for your in-app purchases. According to mobile users who have made an in-app purchase, the ideal price for an in-app purchase is IDR 6 18241 and IDR 31207.

Earn additional revenue by hosting ads in your app. Consider utilizing native ads that seamlessly blend into 7 your app content. For more information: Thank You! www.inmobi.com/insights [email protected]

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