THE STATE OF THE MEDIA Q3 2011 2 Source: Nielsen MOBILE CONSUMERS KEY FINDINGS: are social, always connected, and rely on their phones more than ever before. • The majority of 25–34 and 18–24 year olds now own smartphones According to Nielsen’s monthly survey of 25,000 mobile consumers (which (64% and 53% respectively) and they have led in smartphone penetration translates to 300,000 each year), 44 percent of U.S. mobile subscribers compared to other age groups since 2009. now own a smartphone device, compared to 18 percent just two years ago, • Apple is the top smartphone manufacturer in the U.S. with 28.6 percent of and these advanced devices are changing the way consumers interact with the smartphone market, and Android is the most favored operating system their phones. by manufacturers, with the largest share of the smartphone market at 44 percent. • The number of smartphone subscribers using the mobile Internet has • 83 percent of all smartphone application downloaders use Android grown 45 percent since 2010 or Apple iOS smartphone devices and they mostly discover apps by • This quarter, 26.3 million mobile consumers viewed mobile video searching the top app stores and relying on recommendations. • The majority of smartphone owners (62%) have downloaded apps on • Application usage varies by age on the Android platform—older their devices and games are the top application category used in the past generations like games, such as Angry Birds, and rely on their mobile 30 days devices for productivity (e.g. Google properties). Younger folks will use entertainment apps with social dimensions (e.g. Pandora, YouTube, • Currently, 87 percent of app downloaders have used deal-of-the day Words with Friends) more than older segments. websites, like Groupon or Living Social, and 54 percent of smartphone • Younger groups send the most messages, but older segments present the owners claim to use their mobile handsets frequently while shopping greatest growth opportunities: In Q3 2011, teens 13-17 sent and received Nielsen’s “State of the Media: The Mobile Media Report” provides a the most messages (an average of 3417 each month), but the number snapshot of the current mobile media landscape and audiences in the U.S., of messages sent by those 55+ has more than doubled compared and highlights the potential power of mobile commerce in the near future. to 2009. • Marketers can now reach consumers while they shop: 49 percent of mobile consumers say they frequently use their smartphones while shopping. • Social networking is increasingly popular on mobile devices: Android smartphones and iPhone users spend more time engaging with the Facebook application on their phones than any other mobile application. 2 Source: Nielsen Source: Nielsen 3 SMARTPHONE OWNERSHIP HAS MORE THAN DOUBLED IN TWO YEARS Two years ago, only 18 percent of mobile subscribers had smartphones and Today, nearly half of mobile subscribers in the U.S. own a smartphone these smartphone audiences were more likely to be male. device and 51 percent of them are female. Smartphone penetration 2009 Smartphone penetration 2011 Q3 2009, U.S. Mobile Insights, National Aug - Oct, 2011, U.S. Mobile Insights, National FEATURE PHONE SMARTPHONE FEMALES MALES 56 82 44 18 45 55 2009 2011 51 49 #1 Device= Motorola Razr V3 #1 Device = Apple iPhone4 PENETRATION BY AGE PENETRATION BY AGE 16% 13-17 40% 13-17 Those 25-34 and 18-24 have always 53% 18-24 23% been the leading age 18-24 groups in 25-34 28% smartphonesmartphone 25-34 64% penetration 35-54 19% 35-54 47% 55+ 10% 55+ 25% 4 Source: Nielsen Source: Nielsen 5 SMARTPHONE DEVICES INVITE USERS TO The number of smartphone users engaged in rich media activities has increased substantially. Nearly twice as many smartphone subscribers are ENGAGE IN RICH MEDIA ACTIVITIES downloading (up 83%) and playing games (up 95%) compared to last year. Streaming online music or radio is the third fastest growing activity among The growing popularity of smartphones has also led to a dramatic rise in smartphone users. U.S. mobile video viewers (in millions) mobile video. While 23 million mobile subscribers viewed video on their Q3 2011, U.S. Mobile Video Survey phones in 2010, 31 million use mobile video today—a 35% increase. Smartphone subscribers engaged in rich media MOBILE VIDEO FEATURE PHONE MOBILE VIDEO SMARTPHONE activities other than mobile video (in millions) MOBILE VIDEO VIEWER PENETRATION U.S. mobile video viewers (in millions) Q3 2011, Last 30 Days, U.S. Mobile Insights, National Q3 2011, U.S. Mobile Video Survey Q3 2010 Q3 2011 Year-over-Year Growth Smartphone subscribers engaged in rich media MOBILE VIDEO FEATURE PHONE MOBILE VIDEO SMARTPHONE activities other than mobile video (in millions) 14% Mobile internet 39 57 45% 12% 13% Q3 2011, Last 30 Days, U.S. Mobile Insights, National MOBILE VIDEO VIEWER PENETRATION 5 11% 6 10% 7 Q3 2010 Q3 2011 Year-over-Year Growth 7 7 26 24 14% Application (App) downloads 32 49 53% Mobile internet 39 57 45% 12% 13% 22 5 18 11% 6 16 10% 7 7 7 26 Game downloads 19 35 83% 24 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Application (App) downloads 32 49 53% 22 18 16 Streaming online music 18 29 66% or mobile radio Game downloads 19 35 83% Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Full track music downloads 11 18 65% Streaming online music 18 29 66% or mobile radio Online game playing 8 16 95% Full track music downloads 11 18 65% Online game playing 8 16 95% 6 Source: Nielsen Source: Nielsen 7 SMARTPHONE BATTLE FOR MARKET Apple, the only company manufacturing smartphones with the iOS operating system, is clearly the top smartphone manufacturer in the SHARE ENSUES IN THE MOBILE United States with 28.6 percent of the smartphone market. ECOSYSTEM Other leading smartphone manufacturers include HTC, whose Android phones represent 15.8 percent of the smartphone market and whose In 2009, RIM’s Blackberry smartphone was the most popular mobile Windows Mobile/WP7 devices account for 4.2 percent of the market; device. Today, the fight for operating system market share is between and Motorola, whose Android devices are owned by 10.7 percent of Android OS and Apple iOS smartphones. Android—the operating system smartphone consumers. favored by several different manufacturers—has the largest share of the smartphone market (44.2%). Manufacturer operating system share-smartphones Aug-Oct 2011, U.S. Mobile Insights, postpaid mobile subscribers HTC HTC HTC <1% 15.8% 4.2% Nokia Samsung Samsung 1.6% <1% 10.4% Apple RIM Blackberry HP 28.6% 17.0% 1.9% Samsung Motorola <1% 10.7% Other Other <1% <1% Other Motorola 7.3% <1% Other <1% Android OS 44.2% Symbian OS 1.6% RIM Blackberry 17.0% Windows Phone 7 1.3% Apple iPhone OS 28.6% Windows Mobile 5.3% Palm / HP WebOS 2.0% 8 Source: Nielsen Source: Nielsen 9 Source: Nielsen SMARTPHONE OPERATING SYSTEM CHOICE VARIES BY AGE GROUP Android OS and Apple iOS smartphones are popular across all age groups. Although penetration of Android OS and Apple iOS smartphones tend to be slightly higher among those 18–24 and 25–34, older audiences are beginning to own devices previously dominated by younger groups. Smartphone OS penetration by age group Aug- Oct 2011, U.S. Mobile Insights, National ANDROID APPLE iOS RIM BLACKBERRY WINDOWS MOBILE WINDOWS 7 OTHER 18-24 47 29 12 6 2 4 25-34 47 29 14 5 1 3 35-44 ANDROID 44 29 18 5 2 3 LEADS IN EACH 45-54 40 26 24 5 1 4 AGE GROUP 55-64 43 27 19 6 1 4 65+ 39 32 16 7 1 5 10 Source: Nielsen Source: Nielsen 11 SEARCH ENGINES AND SOCIAL Google and Facebook lead in mobile reach on both Android and Apple iOS. In order to rank mobile websites by active reach, that is, NETWORKING WEBSITES ARE by the percentage of Android or iOS smartphones owners who used the mobile website within the past 30 days, Nielsen analyzed usage POPULAR AMONG ANDROID data from its proprietary device meters on the smartphones of the SMARTPHONE AND iPHONE OWNERS thousands of consumer panelists who agreed to be a part of Nielsen’s ongoing Smartphone Analytics research. Top 10 mobile websites by active reach September 2011, Nielsen Smartphone Analytics, Device Metering Data APPLE iOS ANDROID 92% 86% 63% 54% 44% 44% 41% 37% 27% 25% AOL YouTube MSN/ PayPal Twitter.com Yahoo! Amazon Wikipedia Google Facebook Media WindowsLive/ Network Bing 92% 66% 37% 26% 24% 18% 17% 16% 15% 13% Wikipedia YouTube Amazon Sprint ESPN MSN/ eBay Yahoo! Digital WindowsLive/ Google Facebook Network Bing 12 Source: Nielsen Source: Nielsen 13 SMARTPHONE APPLICATION DOWNLOADS Percentage of smartphone owners who have ARE DOMINATED BY ANDROID AND iOS downloaded an app in the last 30 days SMARTPHONES DEVICES Q3 2011, Nielsen Mobile Applications Playbook Smartphone app downloaders report having an average of 33 apps on their mobile phone, up 22 percent since 2010. Apple iPhone app 2011 Q3 2011,downloaders Nielsen Mobile have Applications an average Playbook of 44 apps on their phones, while those with Android OS smartphones report having an average of 32. Percentage of smartphone owners who have downloaded an app in the last 30 days These insights were gatheredof all U.S. from smartphone survey respondents consumers age 13+ use years who have Q3 2011, Nielsen Mobile Applications Playbook ANDROID downloaded an applicationapp-and-media to their device friendly in the pastiPhones 30 days. 4% 49% 71% or Android-based smartphones 2011 Q3 2011, Nielsen Mobile Applications Playbook of all U.S.