• by Jack Loechner , Staff Writer @mp_research, July 13, 2011

According to a June 2011 report from ExactTarget, data from "Mobile Dependence Day" shows that the smartphone market has seen explosive growth in recent years, and, based on market trends, expected to continue. In February 2011, comScore reported that US smartphone usage had grown by 60% in the previous 12 months, as the total number of Americans using smartphones rose to 63.2 million in 4Q 2010.

And, the International Data Corporation says that the worldwide smartphone market is expected to grow by 49.2% in 2011. This is more than four times faster than the expected growth of the overall mobile phone market, suggesting that current feature phone owners are rapidly switching to smartphones, while non-cell phone owners are jumping directly to smartphones with their first cell phone purchase. According to the Exact Target May 2011 survey: 

• 89% of US online consumers age 15+ own a cell phone 
• 41% own a smartphone (with email capabilities, web access, and other advanced functionality) 
• 48% own a feature phone (typically limited to calling and text messaging) 
• Just 11% don't own a cell phone

Although Blackberry pioneered the development of smartphones, the industry landscape is changing rapidly. Although Android is a relative newcomer to the smartphone market, its popularity eclipses even the iPhone, likely due to its relative affordability, opines the report. Overall, one-third of US smartphone owners have an Android phone, followed by iPhone and Blackberry.

Smartphones Owned
Smartphone	% of Respondents
Android	33%
iPhone	25
Blackberry	19
Other	18
Windows	5
Source: ExactTarget, June 2011

The smartphone has become a modern day Swiss Army knife, says the report, putting marketers not only in a multi-channel environment, but a multi-purpose environment as well. usage is likely contributing to the arrival of Mobile Dependence Day in households nationwide.

According to a new survey from Prosper Mobile Insights, some 52.9% of smartphone owners say they use all the functions of their smartphone, saying that "It's my life." Another 30.4% say they use all the basic functions of their device, plus a few apps. And just 16.7% use their smartphones exclusively for calling, text messaging, and email. 

 People actually use their smartphones to make phone calls. In fact, calling is actually the most common smartphone use. 

• 31% of consumers say they use their smartphones to make calls "constantly throughout the day," while 69% are making several phone calls each day. In total, 87% report making at least one call per day 
• Women 18-24 are actually the least likely to use their smartphones for calling, only 56% say they make calls at least several times per day                       

Texting Texting seems to be something of an "all or nothing" proposition, people who text tend to do so quite frequently, says the report.

• 38% of consumers surveyed use their smartphone to text "constantly throughout the day," and 67% say they text at least several times per day. A total of 78% report texting at least once per day
• Only 6% report texting less than once a month

Email is the third most common among smartphone activities.

• More than half of consumers (53%) use their smartphone to check email at least several times per day. 29% report they check email "constantly throughout the day," and a total of 66% check email at least once per day.
• Although teens are the least likely to check email on their smartphones, a majority still do so regularly. 20% of smartphone-owning teens report checking email throughout the day, 41% check email at least several times per day, and 65% check email at least once per day.

Web browsing on-the-go is also a common activity among smartphone owners.

• 18% of smartphone owners use their smartphones to browse the Internet "constantly throughout the day," and 58% do so at least once per day.
• Interestingly, web surfing is more common among 18-24 year olds than among their younger counterparts. This is likely due to the limitations placed on teens during the school day-it's much easier to sneak a text or check an email than browse your favorite website.

Although ot as popular as the smartphone functions mentioned previously, Facebook is the only social media outlet used by a majority of smartphone owners on a daily basis.

• 17% of those surveyed use their smartphones to check Facebook "constantly throughout the day," and 35% check Facebook at least several times a day. In total, 50% check Facebook at least daily.
• Both men and women check Facebook frequently-approximately two thirds of smartphone-owning men and women age 34 and under use their smartphones to check Facebook at least once per day.

Smartphone Capability Frequency of Use
Capability	% of Use
	Constantly throughout the day	Several times a day	Once a day	Weekly	Monthly	Less
Telephone	31%	38%	18%	10%	1%	3%
Text	38	28	11	13	3	6
Email	29	24	13	11	5	17
Browse Internet	18	22	19	17	8	17
Facebook	17	18	15	11	4	35
Listen to music	12	12	12	16	8	40
Games	9	11	15	18	11	37
Watch Video	6	6	8	22	19	41
Maps	4	4	10	22	19	41
Twitter	5	5	5	4	2	78
Source: ExactTarget, June 2011

Smartphone capabilities are constantly expanding, with new features, functions, and applications introduced on a near-daily basis. And although not all of these are readily adopted by smartphone owners, the study shows a few front-runners that seem to be gaining popularity. Location-Based Services (LBS) "Checking in" using location-based services on a mobile phone is still not a mainstream activity, but adoption is definitely increasing

• 28% of smartphone owners have used their phone at least once to check in using location-based services like Foursquare, Gowalla, and Facebook Places. This represents 12% of the overall US online population.
• Women are more likely to use check-in services-37% of female smartphone owners have checked in, compared to 21% of males. • Within the 35-54 age group, 13% of men have ever checked in while 38% of women have done so. The difference is likely due to the fact that these women are also in the demographic most likely to consider themselves "Deal Seekers" (as described in SUBSCRIBERS, FANS, & FOLLOWERS report #3, THE SOCIAL PROFILE).
• This data suggests-contrary to early speculation that check-in services would be embraced mainly by young hipsters on the prowl-that deal-seekers are now eagerly gravitating to Foursquare and other LBS providers who offer savings based on proximity.

Quick Response (QR) Codes and Barcodes are just slightly less popular than check-ins. 24% of smartphone owners (10% of the overall online population) report having scanned a QR code or similar barcode to obtain more information about a product, business, or event.

Push notifications, an emerging capability, allows companies to send messages directly to their app users, even when the app is closed. Push notifications are especially useful for conveying timely information like breaking news, exclusive sales, and sports updates.

Overall, 16% of smartphone users say they've made a purchase as the result of a marketing message they received on their smartphone. Android users are the most likely to report making a purchase after receiving a message on their smartphones (21%), followed by Windows smartphone owners (19%), iPhone owners (17%), and Blackberry users (10%).

Email is the most effective mobile purchase trigger. Marketing messages delivered through email and read on a smartphone have driven more consumers to purchase than any other method. 55% of those who've made at least one purchase based on a mobile message report acting on an email. Text messaging (41%), Facebook (35%), and shopping apps (32%) also show a strong ability to drive purchasing behavior.

More than half of the 16% of consumers who've made a purchase after receiving a mobile message (about 9% of the total US online population) report that they've completed at least one purchase on their smartphone itself. (This includes purchases made through the smartphone's browser, directly through an app, or through the app store.) It illustrates how consumers' comfort level with mobile purchases is increasing, while also highlighting the fact that people who buy as a result of mobile messages are likely to complete these purchases through multiple channels. 

Source of Message Leading to Purchase
Source	% of Respondents
Email	56%
Text message	41
Facebook	35
Shopping App	32
Twitter	20
Telephone	18
Location based social network	15
Source: ExactTarget, June 2011 (Percentages are based on the 16% of consumers who have completed a purchase as a direct result of a marketing message received on their smartphone)

The report concludes by noting that mobile is not a channel, but a series of platforms that allow for on-the-go communications through Email, Facebook, Twitter, SMS, apps, etc., Each of these channels plays an important role when developing a mobile strategy

For more information, please follow the study by accessing the PDF file here.