Study: Mobile - It's Not Just For Out-Of-Home Anymore

Initiative mobile chart

The so-called third screen is increasingly finding itself at home alongside the TV and computer screens, according to a new study. The report, by media agency Initiative, found that 60% of mobile Web usage is now taking place at home, bringing smartphones closer to the promise of being "always on" devices.

Nearly a third (30%) of smartphone users start their day with the mobile Internet and 45% end their day with it, with the peak time for use while relaxing at home in the evening (64%). The only time Web use falls off dramatically is when people are actively engaged in other activities like sports or at live events.

"This clearly demonstrates how mobile Internet use has caused a significant shift in consumer need to have constant connection with the outside world," stated the report, which based its findings on a survey of 8000 active smartphone users across Italy, Sweden, the U.K., U.S., Australia, China, India and South Korea.

What's more, people are accessing the mobile Web at home while consuming other media. Half of smartphone users said they browse the mobile Web while watching TV, listening to the radio, and while traveling. Thirty-nine percent do so while using the PC-based Internet, and 34% while reading newspapers and magazines. From these findings, Initiative concluded that marketers can use mobile to amplify messaging in other media.

"Through mobile, marketers can provide consumers with a way of immediately engaging with the brand, whether prompted by an advert, or a thought or conversation they've just had," states the report. That effort should include tagging ads in various media with a way for people to respond to offers or participate in promotions via mobile device.

The Initiative study also underscores the role of applications in expanding mobile media use. More than 80% of smartphone users have downloaded at least one app, with that figure hitting 100% in China. People may sample a variety of titles, but on average regularly use only eight apps at any given time.

The vast majority of apps are free, with 70% of consumers having more free than paid apps, and 25% never having paid for an app. But people are not necessarily unwilling to pay for apps. Sixty percent of smartphone users in the U.S. have spent more than $5 on an app, with 35% spending over $15. Italians are the biggest spenders, with 65% spending more than €5 ($6) and 44% more than €15 ($18).

Still, most users said they would prefer to get apps for free in return for accepting advertising rather than pay.

How do people find out about apps? Recommendations from friends and family are the most common way, followed by general Internet search through an app store and online reviews. Traditional advertising comes in between seventh and tenth place as sources for discovering apps.

With growing use of the mobile Internet and applications, Initiative expects the smartphone to increasingly become a mobile wallet as well. The agency estimates that 32% of our U.S. consumers already use 'pay-by-mobile' technology, with about one-third of that group willing to spend between $50 and $100.

A separate study released by Gartner Monday offered less bullish figures. It projected that mobile payment users will reach 108.6 million worldwide in 2010 -- a 54.5% increase from 2009. But only 3.5 million of that total will come from North America, and only 7.1 million from Western Europe. Both regions lag well behind Asia/ Pacific, which will account for 63 million of the expected 108.6 million mobile payment users this year.

 

4 comments about "Study: Mobile - It's Not Just For Out-Of-Home Anymore".
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  1. Deborah Manthei from W3i, June 22, 2010 at 10:55 a.m.

    If you love iPhone apps, W3i is launching a new service where consumers will get real cash for downloading cool, useful apps. Check out apperang.com on June 28th.

  2. _ Jr from A2aMEDIA, June 23, 2010 at 6:02 p.m.

    This is an interesting article on use of the mobile medium in-home—but we wanted to note that while mobile use is increasing among consumers in-home, the technology is also continuing to thrive in the out-of-home sector among a range of mediums that you might not expect. Digital signage, for example, is beginning to see a large number of operators link their displays to consumers’ mobile devices to provide personalized messages and displays. They’ve found that mobile, combined with digital signage, is one great way to get consumers to really engage with the brand. Overall, we’re likely to see an increased use of mobile tech both in-home and out in the future. We frequently discuss emerging mediums, advertising and digital signage on our Twitter handle. Follow us @A2aMEDIA.

  3. Alan Edwards from RealVu, June 23, 2010 at 10:07 p.m.

    The fact that most users would prefer to get apps for free in return for accepting advertising just reinforces the fact that as mobile device use goes up, advertising should follow.

    As a developer of both advertising creative and advertising measurement technologies (RealVu.net), I think continuity of advertising and measurement technologies across all apps and all media will be increasingly more important as the mediums continue to change and evolve.

    Flash has been universally used by advertising creative shops and measurement standards are essential for the success of publications as they move online.
    If standard advertising creative and measurement technologies work universally across all devices and with all apps, ultimately everyone will benefit.

  4. Kristina Allen from ion interactive, inc., June 28, 2010 at 4:40 p.m.

    Great article on the major move that mobile is making. If you are marketing online and you're leaving out mobile, you're also leaving out a potentially big revenue source. Marketers should begin looking at which campaigns are the most popular on smartphones, and focusing in on those. Start small with one or two mobile campaigns, test alternatives and optimize. If anyone is interested in learning more about mobile, check out these 10 tips for optimizing mobile ads and landing pages: http://mobile.ioninteractive.com.

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