gfk - lbs consumer market research

GfK Custom Research North America Metaplaces Conference September 23, 2009

© Copyright GfK Custom Research North America 2009. Proprietary and Confidential

Metaplaces ConferenceIdentifying Key Drivers and Measuring Consumer Preferences for LBS

2


Navigating the LBS market

Consumer Landscape

Challenges DriversBest Practices


3



Consumer Landscape


Connectivity


Attitudes

Behavior

4


Smartphone adoption rapidly increasing, moving beyond productivity apps

Consumers’ increasing connectivity is a good launch pad for LBS

(Projected)

Connectivity

Year-Over-Year Shipment Growth in USA*

-4.7%

-13.8%

+68.4%

2008

-14.8%

-20.3%

+7.9%

2009

6.1%

-1.2%

+28.4%

2010

Total Market

Traditional Mobile

Smartphone

-4.7%

-13.8%

+68.4%

2008

-14.8%

-20.3%

+7.9%

2009

6.1%

-1.2%

+28.4%

2010

Total Market

Traditional Mobile

Smartphone


MiFi Introductions hit the market in 2009

Netbooks and mobile broadband making significant inroads

*ABI research.com

*IDC.com

-4.7% -14.8% 6.1%Total Market -4.7% -14.8% 6.1%Total Market

2008 2013*

Netbook Shipments Worldwide*

2009

16.4M

32.7M

139M

(Projected)

5


4 consumer trends that LBS marketers can tap into

1

Accessibility

Practicality

2

Attitudes and

Behavior


3

Accessibility

Sharing/getting personal

2

4 Protecting the family

6


The practicality and accessibility of Technology

• Consumers are increasingly showing their practical side when it comes to technology, and wireless offers productivity “on the go.”

• Accessibility is a key need sought by the increasingly mobile consumer.

Attitudes and

Behavior


*GfK Roper Reports Worldwide 2009

48

25

52

34

To me it is important toalways be reachable

wherever I am

I buy technology productsthat help me do things I

need to do

2008

2009

% of American adults 15+ who agree with the following

statements related to technology*

7


Sharing and getting personal is another key underlying need

Consumers using their mobile phone or netbook to share content on social networking sites, online photo albums, blog sites, and community video sites:*

63Desktop PC 64 49

SocialNetworking Site

Online WebPhoto Albums Blog Sites

CommunityVideo Sites

Attitudes and

Behavior


63

45

9

17

5

Desktop PC

Laptop

Netbook

Mobile Phone

Portable Media

Player

64

35

10

9

5

49

41

16

14

15

63

36

10

10

8

*GfK Connected Life

8


Protecting the family is #1 value of 32 tested

... Top 16 attributes shown

Protecting the family 84%

Freedom 79%

Stable personal relationships 79%

Self reliance 71%

Friendship 70%

Equality 63%

Attitudes and

Behavior


*GfK Roper Reports US

Authenticity 78%

Working hard 74%

Enjoying life 72%

Learning 72%

Knowledge 71%

Helpfulness 62%

Open-mindedness 61%

Respecting ancestors 59%

Social tolerance 59%

Having fun 58%

9



Consumer Landscape


Connectivity Monetization


Attitudes

Behavior

Maximizing User Experience

Privacy

10


With the proliferation of free applications, requiring consumers to pay will be a challenge

*Key monetization challenges across LBS apps tested . . .

• Changing plans

• Paying for individual services

• Changing carriers

Monetization

“Compass isinfluenced by nearby

electronic devices to such a

“There are some nice features,

but I really expected more for

$10. I own less expensive

apps that I’ve found to be

much better.”**


electronic devices to such a degree that it is quite

inaccurate. Only .99 cents but I wish I had spent more on

something that was accurate.”**

“Just downloaded and installed this app today thinking I’d save a few bucks

versus Navigon, TomTom, etc You should absolutely save your money

and buy something – anything – else. This is worthless for the purpose of navigation. I will never use it again, and if I could get my money back, I

would...in an instant.”**

*GfK Tech Test**iTunes Apps Store Reviews

11


Mobile advertising has yet to reach wide acceptanceLBS can be a solution to increase relevance

Ads on mobile phones annoying

Find:

Ads on TV annoying

70

37

29

Ads on mobile phones acceptable

Find:5

Ads on social networking sites annoying

Monetization


Mobile ads are yet to deliver value to the consumer

Ads on mobile phones acceptable

Ads on TV acceptable

5

42

23Ads on social networking sites acceptable

Describe mobile device ads 9

14

as informative

as usefulDescribe mobile device ads

*GfK Roper Reports Worldwide 2009

12


Increase adoption by addressing key challenges

Learning Curve

If I am going to be able to use a

new technology product,

somebody has to show me how

to use it*

25

32

“Themes of recent CTIA and International CES trade shows has

been how new handhelds are often shipped with so many new

2008

2009

% Agree

Maximize User

Experience


Screen Size

“Phones are so small that easily reading maps on them

is hard to do.”~ GfK Tech Test

“You won’t be able to see the screen. It’s too

little.”~ GfK Tech Test

Security of Personal Information

*Roper Reports Worldwide 2009**www.macworld.com***www.eff.org

been how new handhelds are often shipped with so many new

features and functions that users hardly ever use 10% of all

features, or even learn how to use them.”**

In an effort to protect user privacy: “Google’s Latitude does not

keep a historic log of a user’s location; it overwrites data each

time the user reports a new location.”***

13


LBS benefits must outweigh privacy concerns

Possible Benefits Privacy Concerns

“I do not like the idea of the possibility that someone would

know your every movement during the time your phone was in use. Privacy is more important than having an exact pinpoint location

Safety

Convenience

Privacy


having an exact pinpoint location given to me by a tracking satellite.”

~ GfK Tech Test

“The concept of Big Brother watching me.”

~GfK Tech Test

Accessibility

Sharing

14



Consumer Landscape


Connectivity Monetization Problem Solving


Attitudes

Behavior


Privacy

Enhance Experiences

Relevance

15


Ability to solve a problem is the top driver of Appeal

DRIVERS*

Ability to solve a problem 59%A

Problem Solving


Overall

Appeal

Uniqueness 18%

Ease-of-set-up 14%

Believability 9%

B

C

D

*GfK Tech Test

16


Successful LBS applications mustEnhanceExperience

Fulfill an existing need Enhance current experienceOR

% who have accessed the GPS Smartphone Shipments Worldwide*

77M


% who have accessed the Internet in past 3 months for

maps/directions**

Opportunity to drive consumers to their mobile device

*electronicsnews.com**GfK Connected Life

2008 2009

57M

+34%

77M

%76

17


Keep it relevant

What Where

Top iPhone Apps Where Mobile Devices are used

• Bathroom/Rest Area finder

• Friend mapper (shows friends' current location)

• GPS

• Hotel finder (finds hotels with open rooms close to current location)

Relevance

At home 66%

In the car 50%

Outside 46%

At work 43%


to current location)

• Local restaurant locators

• Restaurant openings/reservations

• Local services and amenities (restaurants, bars, gas stations, tourist attractions)

• Parking lots and rates

• Post location on Facebook

• Registered offenders (brings up offender lists from current location)

• Speedometer

• Weather channel (local weather based on current location)

At work 43%

Somebody else’s home 39%

At café/restaurant 37%

While walking 37%

At airport/train station 33%

On public transport 29%

At client/customer offices 19%

At school/college/university 15%

*GfK Connected Life

18



Consumer Landscape


Connectivity Monetization Problem Solving Methodologies


Attitudes

Behavior


Privacy

Enhance Experiences

Relevance

Metrics to Evaluate

Activating Your LBS Strategy

19


Do I have a winner? Methodologies

Explore

Online Diary

Quantify

Survey questionnaire


• Uncover benefits and concerns

• Evaluate use cases

• Get ongoing feedback

• Benchmark against other apps

• Profile potential users

• Assess uniqueness of app and problem solving

20


Stand out and solve problems Metrics for Evaluation

30

35

Mobile Payment

Old Answer to Problem

New Answer to Problem

Mobile Maps

Mobile E-mail

% Solves A Problem

% Solves A Problem

Aim for upper right quadrant


10

15

20

25

10 15 20 25 30 35 40 45 50 55 60 65

Mobile Files

Mobile IM

Mobile Entertainment

Mobile TV

Mobile Photo Sharing

Time Shifted TV

Train/Flight Booking/Information

No Problem/No Answer

New Answerto Non-Problem

Mobile Maps

% Solves A Problem

% Solves A Problem

% Extremely/Very New and Different% Extremely/Very New and Different

Mobile Video

NormativeAverage

21


Activating your LBS strategy

Appeal to underlying consumer needs

• Practicality

• Accessibility

• Sharing/getting personal

Focus on delivering value in mobile ads


• Leverage LBS technology to enhance relevance

Address user experience barriers

Keep it relevant to where and how consumers Keep it relevant to where and how consumers want to use their mobile device

Explore and quantify

Leverage Convergence

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