vol1 mobile-managing the hype

8/9/2019 Vol1 Mobile-Managing the Hype

1/16

Insights for your business

April 2010

Issue

Managing the Hype:

The reality of mobilein Canada


2/16

Introduction.......................................................... 3 - 4

Smartphone ownership..............................................5

GPS awareness and usage.................................... 6 - 8

Mobile applications.............................................. 9 - 10

Mobile cameras .................................................11 - 12

Mobile games ...........................................................13

Summary............................................................14 - 15

Data methodology.....................................................16

Delvinia DIG is a quarterly report

prepared by Delvinia Interactive.

The report is a compilation of the

perspectives of Delvinias interactive

experts based on data generated by

our proprietary online consumer

research panel, AskingCanadians

and its French counterpart Quen

pensez vous MC.

in this issue


3/16

From 99% of the Net Generation (NGen) of users 18 to 34 to 87% of Canadians 65+, the number of

Canadians who own mobile devices has never been higher. However, Delvinias 2009-2010 study of

Canadian mobile behaviours conducted through AskingCanadians, revealed that most mobile owners

dont appear to be using the more advanced features that mobile providers tout and marketers dream of

fully leveraging. In fact, Canadian mobile device users seem to be most comfortable with the basic features

that have existed on phones for years such as sending and receiving text messages, using the clock/alarm

feature, and taking photos.


3

Use of mobile device features (Total Canada)

89%

56%

52%

52%

40%

28%

19%

18%

Phone calls

Clock/alarm

Text messaging

Camera

Calendar/agenda/organizer

Email

Emergencies Only

Instant messaging/Blackberry messenger

MP3s /music/ videos

Picture/ video messaging

Web browsing

GPS or mapping services

Downloading (games, ringtones, etc)

Search

Facebook mobile

Contests/promotions

Subscriptions/alerts

Twitter mobile

18%

18%

15%

14%

14%

13%

11%

5%4%

3%

introduction

2009


4/16

92%

77%

76%

67%

55%

37%

30%

29%

Phone calls

Clock/alarm

Text messaging

Camera

Calendar / agenda / organizer

Email

MP3s/music/videos

Picture/video messaging

Instant messaging / Blackberry messenger

Web browsing

Downloading (games, ringtones, etc)

Facebook mobile

GPS or mapping services

Search

Emergencies OnlyContests/promotions

Subscriptions/alerts

Twitter mobile

26%

25%

24%

22%

21%

20%

13%8%

7%

6% 2009

Use of mobile device features (NGen)

Even high-tech NGen, despite being the most mobile savvy group, primarily use more basic

aspects of their mobile phones.


4


5/16

But what about those Canadians who own more

feature-loaded mobile devices like Blackberries,

iPhones and other smartphones? Its important to

realize that although smartphone ownership in Canada

is significant and growing, the majority of Canadians do

not yet own smartphones.

And while those Canadians who dont own smartphones

are only ever exposed to a limited number of mobile

features, Delvinias follow up survey and subsequent

analysis revealed that even those Canadians who DO

own smartphones keep it relatively simple when it comes

to the features and functionality they currently use.

A closer look at certain smartphone features and how

Canadians use them creates a more precise snapshot ofthe current smartphone landscape. In this report, well

focus on four specific mobile features and functionality:

GPS, applications, cameras and games.

Canadas slow adoption of

smartphones and their advanced

functionality may be tied to the

long-term contracts that owners are

forced into by the major mobile

providers. Three-year contracts are

commonplace, with significant

buy-out fees imposed for early

contract cancellation: customers may

make do with their phone for longer

than theyd like to, rather than pay the

fee to cancel. There may also be

confusion over different rate

packages for smartphones. Talk

only packages may be relatively easy

to understand, but rates for SMS and

data can be more complex.

Smartphone owners may be reluctant

to use more advanced features for

fear of high data charges.

Randy Matheson

Director, Emerging Media Platforms


5

Total smartphone ownership

NGen GenX Boomers 65+

38%

33%

26%

15%

smartphone ownership


6/16

GPS awareness and usage on smartphones is still

relatively low among Canadians, particularly among

Boomers and the 65+ crowd. While it would be too

easy and short-sighted to assume that delay in

adoption follows generational lines, limited awareness

appears in younger demographics as well. Some 38%

of NGen dont know or arent sure whether their

smartphones are GPS-equipped.

Based on these results, it isnt surprising that few

Canadians use their mobile GPS on a weekly basis,

and over 50% of most generations do not use this

feature at all (with the exception of NGen, 41% ofwhom do not use this feature).


6

62% 27%11%

49% 40%10%

49% 39% 12%

26% 58% 16%

NGen

GenX

Boomers

65+

Yes No Dont know/ not sure

Mobile GPS awareness by generation

Every day Several times a week Several times a month

Several times

a year or lessUsed it but not anymore Never used it

NGen

GenX

Boomers

65+

5% 10% 28% 16% 41%

6% 9% 12% 21% 52%

3%3% 15% 15%2% 61%

100%

Have you enabled the GPS feature on your mobile

and used it to locate your position on a map?

gps awareness & usage


7/16

Why this lack of awareness and relatively low usage rates of GPS across all generations?

Perhaps its the fact that most customers were first introduced to this capability in their cars

with the introduction of in-car GPS systems in the 1990s. When consumers think GPS, they

automatically think of in-car systems not their mobile devices.

Additionally, handling your mobile GPS while in transit is unsafe; the in-car systems all offer

real-time voice navigation and onscreen directions, which mobile GPS is only beginning to

offer now in Beta or to business subscribers. According to many survey respondents, they

do not see a need for it because they already have a separate GPS that is clearer and more

user-friendly.

Moreover, most Canadian consumers think that setting up GPS on their mobile phones is

complex and time-consuming, stating its too small and I havent had time to investigate

how to set it up or I dont know how it works. Marketers and product developers take

note: as with any other feature, customers want ease of use. They dont want to have to

learn how to set it up or use it they just want something intuitive. This is an opportunity for

product developers and marketers to keep it simple in terms of design and communication.


7

I dont need it, nor do Iwant to pay for it.

- NGen


8/16

Another opportunity for marketers lies in better communicating a carriers data plan.

Canadians cited the cost of GPS (primarily the data exchange) as another reason why they

did not use their mobile GPS feature. Many were either not certain of the cost or didnt

want to pay for the service. Cost is always going to be a factor but in our current economic

climate, consumers are smart spenders and on the lookout for value. If they already own an

in-car device, many will not pay again to add it to their mobile, nor will they be willing to risk

paying for it if they arent sure about coverage under their data plan.

Another implied factor which could affect the relatively low usage is consumer habits.

Respondents indicated that they didnt need mobile GPS as they determined a route for

their destinations in advance. In the case of an impromptu need for directions, many

Canadians fell back onto existing behaviours such as calling their destination directly,

looking it up online before leaving home, or even using paper-based maps.

Grace Marquez

Creative Director


8

No turn by turndirections!

- GenX


9/16

While the majority of smartphone owners claim to

prefer downloading applications to visiting a website in

order to access information via their mobile devices,

open-ended responses indicated a great deal of

confusion over what in fact a mobile application is.


9

mobile applications

Mobile applications vs. websites optimized for mobile by smartphone type

I prefer a permanent application thataccessed information right on my device

I prefer to access a website optimizedfor my mobile's internet rowser

53%

67%

58%

47%

33%

42%

Blackberry iPhone Other smartphone

I am happy usinga browser and Google to search

for the information I need.I guess Google is a website

instead of an app.

If I want the info,I want all of it, not

just a partial like someapps show.

- Boomer

- GenX


10/16

Meanwhile, 50% of those surveyed had never

downloaded an application at all. Even among the

highest app users NGen and GenX over 30% have

never downloaded a mobile application.


1

Never downloaded a mobile application(Total Canada)

NGen GenX Boomers 65+ Total

32% 36%

64%

95%

50%

Types of mobile applications downloaded

(Total Canada)

32%

22%

21%

21%

15%

10%

9%

7%

6%

5%

4%

Games

Social networking/

Instant messaging

Music

Entertainment

News

Productivity &reference (e.g

calendar)

Health & fitness/lifestyle

Work related

Travelling

Finance & moneymanagement

Student-related

For those who are engaging with

mobile applications and leveraging

this aspect of their smartphone

functionality, they prefer experiences

that are fun and relatively basic. The

top application types are gaming,

social networking, music, and

entertainment. More practical,

information-based applications are

far less popular.

So while fun mobile apps may appeal

to a certain audience, marketers must

recognize that creating a

downloadable mobile application may

not always be the way to meet their

objectives through the mobile

channel. And when an application is

the right tactic, making it entertaining

and keeping it simple is important.

Jim Morrison

Director, Technology


11/16

The mobile camera is one of the more popular mobile

features, well-used by all Canadians. Its a

straightforward, easy-to-use feature that requires no

set-up exactly the kind of feature that mobile owners

use most often.

Canadians cite a variety of reasons for using the

camera on their smartphones, like snapping social

outings and live events, and capturing information to

help describe something or for future reference, but

70% of smartphone owners dont consider it their

primary camera. Nevertheless, the camera feature on

mobile devices has become a mainstay for the majority

of Canadians, and like most features this is especially

true for NGen and GenX.

But while the majority of smartphone owners are

taking pictures with their mobile devices, most are not

using another arguably more complicated functionality

for the purpose of sharing the pictures they take. For

example, MMS, Facebook and Twitter are only

leveraged by 18%, 15% and 1% of Canadians

respectively. Instead, almost 60% show their mobile

pictures to others in person, while over 30% dont share

the images they take with their mobile devices at all.


1

mobile cameras

5 Sounds like me a lot 4 2 1 Sounds nothing like me3 Neutral

19% 21% 21% 10% 29%

19% 20% 19% 14% 28%

15% 23% 22% 10% 30%

17% 15% 25% 12% 31%

14% 13% 19% 12% 42%

10% 6% 14% 14% 56%

To what extent do each of the following statements

about mobile cameras sound like you? (Total Canada)

I take pictures with my mobile when I'm outwith friends in social situations (like parties,

restaurants, and bars).

I take pictures with my mobile to capture informationthat I want to refer back to at a later time or date

(like the features or the price of a product).

I take pictures on my mobile phone and use them todescribe or explain a thing or situation to someone.

I take pictures with my m obile to take pictures oflive events, like concerts and sporting events.

I take pictures with my mobile when I'm shoppingto get feedback on a potential purchase from

someone who isn't mobile device with me.

My mobile camera is my primary camera -I use it more than any other camera.


12/16


Canadian mobile camera behavior reinforces the idea that mobile owners gravitate

towards the easier-to-use features and functionality associated with mobile devices and

shy away from more complicated functionality. But understanding the extent to which

mobile cameras have been adopted by the Canadian masses and recognizing the

marketing potential of this feature could be a powerful tool nonetheless. Imagine dynamic

campaigns designed to leverage this already inherent behavior, while gradually and

effectively educating consumers on how to take mobile camera functionality a step further

to truly interact with brands. It doesnt have to be leading edge it has to be effective!

Julianne Smola

Vice President, Insight

In which of the following ways, if any,

do you share the pictures you take using your

mobile device with other people (Total Canada)

59%

31%

24%

18%

15%

5%

1%

Show pictures on my mobile

to others in person

Dont share pictures takenwith my mobile

Send pictures from mobile

via email

Send pictures from mobile

via MMS

Post pictures from my

mobile to Facebook

Post pictures from mymobile elsewhere online

Post pictures from my

mobile to Twitter

The mobile camera allowedme to document a faultyitem when it came to making

an immediate in storerefund claim.

I sawa coolproduct in

the store. It was hardto describe it but when

I took a picturemy friends knew whatI was talking about.

- GenX

- GenX

1


13/16

Mobile gaming is a feature that has been adopted

primarily by younger Canadians. The NGen and GenX

groups who grew up with video games are beginning

to move their gaming experiences to mobile, while

Boomers and the 65+ group are engaging in mobile

gaming in a more limited manner.


mobile games

Ways in which games are played on mobile devices (by Generation)

Play games by myself Let others (e.g. my child) play games Play networked games with others

65%

54%

34%

5% 6%

16%

9%5% 2% 1% 1% 0%

Ngen GenX Boomers 65+

With the launch of Apples iPad and their embrace of gaming for the iPhone as well as the

growth of multiple smartphone platforms, the outlets for delivering mobile games are

continuing to expand. But meanwhile, the most popular use of mobile games on smartphones

currently comes in the form of basic pre-installed or downloaded game applications (think

BrickBreaker). Marketers must remain aware that experiential and console-like gaming on

a mobile device is still a new and unfamiliar concept to most users.

Jim Morrison

Director, Technology

Although future marketing opportunities may include

the new wave of augmented-reality and location-based

games, users are still limited in their adoption. After all,

only 2% of NGen and 1% of overall users are engaging

in networked or social gaming on their mobile devices.

1


14/16


summary

If youve ever left your mobile phone at home, youll

understand how heavily Canadians have come to rely

on mobile technology. Without it theres an emptiness

your landline, email and social media outlets cant fill.

Were social by nature and 3G mobile devices provide

us with every method of communication we require:

Personal communication (talk, text and email); group

communication (email, blogging and social media); and

event management (social media, calendar and

browser). Its accessible from anywhere you are. And if

youre somewhere you cant talk, you can type.

This sense of personal connection through our phone is

compounded through companion features, including:

entertainment (music, gaming), organization (alarm,

calendar, tasks), and convenience (camera). Your mobile

device helps kill the time, manage your life and keep you

informed of, well, everything. With the emergence of

mobile dating and banking, is there any aspect of our

lives our phones arent getting personal with?

As marketers, we see unlimited potential in connecting

to consumers through their mobile devices. But,

Canadians are far behind other countries in mobile

feature use adoption. They are eagerly using features

that have a low to moderate learning curve like mobile

gaming and camera functionality, but have yet to

embrace the deeper features like their European and

Asian counterparts.

So, what can a Canadian marketer do to connect with

our customer on a meaningful level?

We need to build mobile programs that have high-value

to the consumer. Obvious value inspires a willingness

to adopt change. And adopting change requires

education (on value, usage and set-up). First

adopters will influence usage with peers and in time,

we can instigate a shift in consumer behaviour.

Case in point: not long ago, getting from point A to point

B required a map. Something you kept in your glovebox. Now, we pre-plan our routes online

(Bing/Google/Mapquest) or rely on an in-car GPS

system. As mobile mapping and GPS usage increases

we may see a new shift in mapping behaviour, where

we begin to rely on real-time mapping as opposed to

pre-planning. More likely, we will see cross-platform

usage, such as send map to phone online or in-car GPS

for driving and mobile GPS for walking/public

transportation.

In the meantime, its important to keep your strategy

simple. Mobile is one touch point in your marketing mix.

Ask yourself, what value will mobile have for my

customer? There are a few other things you should

consider when developing a mobile program:

1


15/16


1.UNDERSTAND THE CUSTOMER EXPERIENCE

Take advantage of the portability of the device but

think about the interaction from the consumers

perspective. Subway advertising may reach engaged

commuters, but without a mobile connection, your

call-to-action is lost. The interaction needs to be simple

and convenient. And it needs to work.

Also, be sensitive to the personal nature of a mobile

device. When you communicate through mobile, its like

reaching into their pocket to deliver your message

and that notification could come at a very inconvenient

time.

2.PROVIDE VALUE

We need to rely on deeper insights into consumer

wants and needs in order to deliver value. The more

value you bring to the consumer, the more willing they

are to engage. The value needs to be clear, aligned with

your brand and relevant to your offering.

The best mobile strategies leverage the portability of

the device, location-based services and pull marketing

tactics. Give customers control of how and when they

interact with your brand.

3.EDUCATE CONSUMERS

Dont expect your customers to understand the

technology to the extent that you do. Explain the steps

clearly. Build trust. Show value. And when theyve done

it once, they will be more likely to do it again. As

consumers begin to understand the value and potential

of their mobile device, their behaviour and usage will

shift.

Theres a big opportunity for marketers who are first to

the mobile market. However, dont enter the market

because mobile is the next big thing. It works for

some but not for all. Understand that there is a

difference between being first and being good.

No matter what your objective, if mobile is going to bepart of your marketing mix, its good to test what works

now and build from there. Creating a mobile friendly

newsletter or website may be the first step in

understanding your audiences acceptance and usage

of mobile. Tracking and metrics can also tell you what

mobile devices your consumers are using. Continually

test, measure and optimize your campaigns.

Our role as marketers is continually evolving. Its no

longer about traditional and digital. Its about Customer

Experience with integrated traditional and digital touch

points. And as new digital platforms emerge, we need

to distinguish between opportunity and hype. There is a

lot of hype around mobile marketing being the next big

thing. If we manage the hype, it will turn into endless

opportunity.

1


16/16

DATA METHODOLOGY

AskingCanadians and its French counterpart Quen

pensez vous MC is Delvinias proprietary online research

panel of Canadian consumers who have opted in to

participate in ongoing market research studies.

In October/November 2009, Delvinia conducted its

annual re-profiling initiative with all of its

AskingCanadians panelists. From the entire pool of

responses, Delvinia extracted a statistically

representative subset of 5,680 responses (50/50

gender split, age and province breakdowns as per

Stats Can) and discovered high mobile phone

ownership in Canada, but relatively basic mobile phone

feature use.

Delvinia then conducted a follow-up survey in January

2010 with 1,000 statistically representative

AskingCanadians smartphone owners to uncover

further insights. Results of this survey were obtained

within a week.

All analysis and reporting was carried out using SAS

analytics platform.

vol1 mobile-managing the hype

Documents