SMART
PH NE
SMART
MARKETING
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TABLE OF CONTENTS
Overview
Smartphone Living
Smartphone Marketing
Smartphone Futures
Conclusions
OVERVIEW
In an increasingly mobile world, the Smartphone has become a lifestyle-
changing device.
The Smartphone is the first device to provide instant access to the internet and
online information resources wherever consumers go. Time-starved consumers
say that Smartphones improve their quality of life by allowing them to multitask
on-the-move.
For marketers, this creates a new opportunity to maintain contact with consumers
throughout the day and influence purchase decisions in ways never before possible.
Universal McCann and AOL partnered with Questus, a leading interactive marketing
and research firm, to conduct an extensive multi-phase research project examining
how Smartphones are influencing American lifestyles and media consumption. This
research report analyzes the intersection between consumer media usage, lifestyle
and purchase preferences.
SMARTPHONE
LIVING
5
63MM
19MM
THE STUDY: LIVING • MARKETING • FUTURES
270MM
US mobile subscribers
access mobile web
access mobile web
on weekly basis
WHOM DID WE SPEAK WITH?
Approximately 1800 participants were selected for this study based upon their frequent use of
Smartphone devices, with nearly all participants indicating they access the mobile web at least
several times per week. The study also included a sample of “lead users,” who were asked to keep
daily usage diaries.
is not
,
12
6
hype.
1 OF EVERY 7
MINUTES OF MEDIA
CONSUMPTION
TODAY IS THROUGH A
MOBILE
DEVICE
14%
‘MobileIt’s a social
transformation.
IT’S MORE THAN MOBILE
The Smartphone is considered a great convenience for many Americans, enabling them to
access internet content, applications and services anywhere and anytime and to have a constant
link with their social circles. It’s more than a medium of transmission; it’s the preeminent tool for
both social communication and daily life management.
OF SMARTPHONE USERS
REPORT SATISFACTION
USING THE INTERNET
ON THEIR MOBILE
DEVICES
7
The Smartphone is the biggest technology shift since broadband, representing a truly
lifestyle-changing innovation. Consumers enjoy their Smartphones and how they improve
their quality of life.
8
MOBILE IS PERCEIVED AS
CUTTING-EDGE MEDIA
& ASSOCIATED WITH BEING
ACTIVE, TIMELY
& CURRENT
Cutting Edge
Innovative
Mobile
Boring
Newspaper
Old- fashioned
Cool
Active
Computer Browser
Timely
Trustworthy
Credible
Current
Important
Exciting for me
Vital
Fun
Powerful
Informative
Relevant Radio
Influential
Magazine
Passive
TV
Entertaining
Relaxing
HOW THEY FEEL
When study respondents were asked to associate certain attributes with various channels, mobile was
highly distinctive with a virtual monopoly of leading edge media concepts.
9
65%
USERS ARE CONSTANTLY
CHECKING IN WITH
MOBILE MEDIA.
WHEN WILL THEY INTERACT
WITH YOUR BRAND?
95%
Other downtime
82%
At work
81%
While shopping
80%
At home
Commuting to work
CONSTANT CONTACT
Smartphones have enabled Americans to consume media throughout their daily routines, with 82% using
mobile devices at work and 81% using mobile devices while shopping. The mobile web has also become a
ritual with commuters, who use the mobile web as part of their workday commute.
This creates an unprecedented opportunity for marketers to transition with consumers as they move from
activity to activity throughout the day.
o
ns
ecti
&
ing
tw
ial
c
/
ti
vie
o
w
al
ati
5
s
w
3
s
I
Consumers rely as atheir mobile devices get from one place towith their well as a
tofamily and shopping
BRIEF HITS OF
CONNECTION
& UTILITY ARE CURRENTLY
THE MOST POPULAR FORMS OF
CONSUMPTION
Ma
ps
Dir
55%
73%
Re
s
tau
ra
nts
So
/M
N
Ne
Lis
on
ork
ngs
Ne
Re
s&
vie
Info
5%
44%
4%
Bu
ine
ss
nfo
33%
Tra
ve
l
Inf
o
% use mobile to access
corresponding media
Smartphones serveon consumer’s compass to share experiences another, as friends, guide
restaurants,, news and entertainment. At the same time, they provide an
important social outlet.
Over three out of every four Smartphone users are sharing photos, articles and videos across
their social networks.
10
%
send%
send%
MOBILE OFFERS
ANOTHER OUTLET
TO CONNECT &
SHARE
74
use mobile social
networking sites
and apps
50%
prefer sending text
messages to calling
85 photos taken on
their Smartphones
(Average: 16/mo.)
71 articles and
videos to others
(Average: 13/mo.)
11
Consumers rely heavily on their mobile devices to share experiences with their friends,
family and colleagues.
The majority of all surveyed Smartphone users share photos, articles and videos with their
social contacts using their mobile devices.
Smartphones also enable consumers to stay off the phone, with half of all users
preferring text messages to telephone conversations.
SHARING CONTENT
IS KEY TO THE
ATTRACTION
...when the kids come
I shared content
with my friend
over lunch, as we
were checking
the market.
home, my husband will
laugh at us because we’ll
be huddled together on the
couch, each with his or her
respective iPhone, sharing
apps,YouTubes, music, etc.
It bridges a social gap.
I view drug information
on my mobile in the
morning and discuss
it with my partner and
clinical professor at
nursing school.
12
12
%
been driven
follow brands
from
media mesh
MOBILE IS NOT A STANDALONE MEDIA SOURCE.
77
use TV and
mobile concurrently
56%
have been driven
to mobile via
other media
“MEDIA MESHING”
IS A POWERFUL
COMPONENT OF THE
EXPERIENCE
55% across multiple
media
42% have mobile to
other media
37% complimentarywith
content
13
BOUNDARYLESS MEDIA
Smartphones work powerfully with other media. For example, mobile drives consumers to other
media, which also drive consumers back to mobile – generating a circuit of juxtaposed mediation.
This effect is enhanced when users simultaneously consume multiple media in order to optimize
productivity or enrich the content experience.
14
MEDIA MESHING
FILLS THE TIME WAITING FOR
SLOW-LOADING CONTENT
WHILE FULFILLING
INSATIABLE USER HUNGER
FOR CONTENT
I can’t get
enough sports
information. Yesterday, I
was looking at
on my phone, reading
the sports section and
watching pro football
on TV at the
same time.
I have a slow
connection on the
phone, so I watch
TV while pages
download.
I will flip through
a magazine while
surfing on my
phone, using it to
pass the time while
the pages load.
12
Consumers rely on their mobile devices to share experiences with their friends,
family and colleagues.
Over three out of every four Smartphone users are sharing photos, articles and videos across
their social networks.
iPHONE USERS HAVE
HEAVIER CONSUMPTION
HABITS
Mobile Social Networking
55%
iPhone
37%
Others
% use once or more per day
M-Commerce
36%
iPhone
19%
Others
% have made a
purchase via mobile
Concurrent TV Usage
50%
iPhone
34%
Others
% use once or more per day
15
WHO’S USING THE MOBILE WEB?
Mobile trends are led by two groups: younger users and iPhone owners.
High usage among iPhone owners may be due to the fact that these consumers are often early
adopters and that the iPhone interface is among the most sophisticated in terms of offering a rich
and rewarding user experience.
AGE
YOUNGER DEMO HAS
HEAVIER CONSUMPTION
HABITS
Mobile Social Networking
M-Commerce
Concurrent TV Usage
13-17
18-24
25-34
35-44
45-64
29%
14%
45%
58%
67%
26%
30%
24%
21%
15%
28%
20%
55%
46%
42%
% use once or more per day
% have made a
purchase via mobile
% use once or more per day
Not surprisingly, users aged 13 to 24 – those raised on the web and mobile communications – are
among those with the heaviest consumption habits, using their Smartphones for social interaction
and often in front of the television.
16
SMARTPHONE
MARKETING
BRANDS HAVE A COMPELLING
OPPORTUNITY TO ENGAGE
WITH USERS IN THE
MOBILE ARENA
27%
Using mobile
web & apps
6%
Listening to radio
33%
Using web on
computer
% completely focused
13%
Watching television
17%
Reading a magazine
19%
Reading the newspaper
19
GETTING THEIR ATTENTION
While the broader media environment is typically full of noise and distraction, consumers report
being surprisingly focused when using the mobile internet.
This finding is significant to marketers seeking to compete with external distractions and engage
consumers in a meaningful way.
20
I feel grateful
when I’m using the
mobile web. Rather
than wasting time,
I can take care of
my family.
It’s pretty amazing
how focused I am
when I use my iPhone.
The screen is tiny but I
can completely ignore
the world around me
when I’m using my
favorite apps.
The word I
use to describe
my state of mind
when using the
mobile web is
CURIOUS.
USERS ARE IN A PRIMED
EMOTIONAL STATE.
SIMPLY USING THEIR DEVICE
CREATES FEELINGS
OF APPRECIATION &
CURIOSITY.
Consumers rely on their mobile devices to share experiences with their friends,
family and colleagues.
Over three out of every four Smartphone users are sharing photos, articles and videos across
their social networks.
MORE THAN A THIRD (38%)
OF CONSUMERS HAVE
TAKEN ACTION FROM A
MOBILE AD
Of those who have taken action...
53%
Click on the ad
35%
Opt-in for email
with more info/
coupons
34%
Make purchases
via computer or
in-store
32%
Opt-in for text
message with more
info/coupons
24%
Made purchases
via mobile
7%
Other
21
ADS AND ACTION
Mobile offers brands the opportunity to reach consumers in new places and new ways, and mobile
users report acceptance and even appreciation of mobile advertising. In fact, over one-third of
Smartphone consumers report having taken action from a mobile ad.
Smartphone users are clicking on advertisements (53%), requesting more information or a coupon (35%),
and making purchases via their Smartphones (24%).
MOBILE ADVERTISING IS
BEGINNING TO
DRIVE CONSUMER
BEHAVIOR
More than 1 in 5 have had a mobile ad...
29%
Lead them to share info
22%
Influence a purchase
21%
Create product awareness
Mobile advertising provides multiple routes to brand building, both viral and direct.
Smartphones serve as both the engine and the vehicle for sharing product information.
Users also report that mobile advertising is capable of influencing their purchase behavior
and brand awareness.
22
WHILE MOST USERS
PURCHASE ITEMS
FOR THEIR DEVICE,
COMFORT
IS GROWING FOR OTHER
PURCHASES
44%
Purchases for my
mobile (., apps)
24%
Other purchases
% have done via mobile...
23
Significantly, nearly one of every four Smartphone users has made a purchase of non device-
related products or services from their phones – indicating growing comfort with the medium
as a shopping tool.
%
%
Use their
Use their
MOBILE MEDIA LETS YOU
INFLUENCE CONSUMERS
AS THEY SHOP
I LOVE being able to
look up recipes while
grocery shopping.
81 phones to
research products
they are considering
As an avid shopper,
having the ability
to compare prices of
products while out
shopping is awesome.
81 phones
while shopping
Smartphones offer marketers unique opportunities to influence consumers at the very
moment they are considering purchase decisions and comparing prices.
24
OPPORTUNITY
TO INCENTIVIZE
AND REWARD
A BRAND’S USER BASE
Unlike traditional coupons,
males and younger users have
the highest degree of interest.
71%
73 %
74 %
76 %
75 %
62%
75 %
79 %
% of sample who would consider redeeming coupons via mobile
25
MOBILE MOTIVATION
Mobile also provides a new and perhaps the ideal platform for distributing online coupons, a
notion that appeals to nearly 3/4 of all Smartphone users.
Surprisingly, the study showed that males are the most open to this mode of couponing. Also
unexpected was the high percentage of young consumers open to this activity – with 25 to 34
year-olds representing the age group most interested in mobile coupons.
USERS KNOW A
SEISMIC SHIFT
IN ADVERTISING
IS COMING &
THEY ARE EXCITED
ABOUT IT
I have a Bank of
America app. Every time
I use my phone, I see the
icon. When I need account
information, it’s just a click
away. I don’t know if that is
advertising, per se, but it
makes me feel better
about my bank.
It’s not just about
screaming a message
at me anymore. It’s about
providing value and that, to
me, is so much better than
trying to influence me
by interrupting my
favorite TV shows.
26
SMARTPHONE
FUTURES
IS ANTICIPATED TO
N
du
pate rs
tici ea
E
BIL
%
%
e
%
%
DIO
RA
-2
ES
ZIN
GA
-3
S
PA
S
N
EW E
ABO
ES
DIGITAL AND
IN PARTICULAR
MOBILE
CONTINUE GROWING
{
et an in 2 y
MO
sag
}
33
60
C
OM
P
UT
ER
TV -4
-5
PER
0%
MA 0%
UT TH
SAM
E
MU
CH
M
ORE
OFT
EN
MU
C
HL
SO
FTE
N
29
CONTINUAL GROWTH
Six of every 10 Smartphone users surveyed expect their mobile internet usage to increase significantly over
the next two years and to become an even more integral part of their lifestyles. This growing reliance on
mobile internet is a signal to smart marketers that they need to have a presence on mobile touchpoints.
re
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73
ee
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ey
Pa n
% mo
r
Tra
to
5
as
h
5 urc
ll/p
%
re
• Banking
ei
ns
MOBILE TRANSACTIONS
WILL CONTINUE TO
BECOME COMMON
PRACTICE AS
SECURITY CONCERNS ARE
ADDRESSED
so
ad
arc vie t
% mo ura wh
95 % Chec res odu
% ric flig
93 mpare a plane
%
86 ec
82 oup
em on
Re rva n
74 rav cou
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67 n
ills betw
58 nsfe ck
% es
Se
41
to
• Utilitarian tasks
% have done or would consider doing via mobile
As usage expands, so will consumer confidence in the security of the mobile web for privacy-sensitive
tasks such as banking.
This is clearly an area where merchants have an opportunity to reassure and woo customers with
appropriate messaging and protective features.
30
PERFORMANCE
SPEED AND COMPATIBILTY
ARE THE RICHEST
AREAS FOR RAPID
IMPROVEMENT
Timeliness
Organization of sites
Quality of video
Ease of use
Quality of content
Appearance of sites
Speed of downloading text
Quality of brands
Amount of video
Cost of access
Number of ads
Speed of video
Size of ads
Speed of downloading images
Number of mobile formated sites
DERIVED IMPORTANCE
31
Smartphone users are reaching for their devices to help answer unmet needs and will increasingly
do so as speed and compatibility issues are resolved. Services that don’t have dedicated mobile
formats are going to miss out on this significant shift in consumption.
CONCOMITANT MARKETING:
The Smartphone represents the first marketing
channel for marketers to move with and message
consumers everywhere they go. Mobile is less
about “wireless online” and increasingly a highly
personal and customized medium.
INFLUENCER VEHICLE:
Mobile is perceived as cool, active
and timely – the attributes of a vibrant
brand that is positioned for growth and viral
adoption. Mobile advertising provides an opportunity
to reach trendsetters and make a lasting impression
on the influencers who are a key audience to any
brand’s success.
MESHING:
Smartphones are the
ultimate media meshing
tool, with consumers
simultaneously consuming
media on multiple screens
and utilizing their Smart-
phones to enhance their
TV viewing experience.
ACCEPTANCE:
The Smartphone is improving
consumers’ quality of life.
They appreciate marketers who
sponsor their mobile experiences. They
want advertising that is appropriate for their
frame of mind and passions. They understand
the role that advertising plays in providing free
content and prefer advertising that delivers
more relevant messages to them.
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INITIATIVE COMMISSIONED BY
AOL AND UNIVERSAL McCANN
ABOUT UM
UM is a global media communications agency that represents the world’s leading marketers and strategic thinkers including
Coca-Cola, ExxonMobil, Johnson & Johnson, MasterCard, Microsoft, Sony, Bacardi, L’Oreal and UPS. Part of the Interpublic Group
of Companies (IPG), UM has roughly 169 offices in 130 countries and more than 3,600 employees with headquarters in New York.
UM provides a full spectrum of media services including media and communications planning, digital strategy consultation,
analytics and economic modeling, research and consumer insight. The company’s mission is to deliver Curious Minds for
Surprising Results.
ABOUT AOL
AOL is a global Web services company that operates some of the most popular Web destinations, offers a comprehensive suite
of free software and services, runs one of the largest internet access businesses in the ., and provides a full set of advertising
solutions. A majority-owned subsidiary of Time Warner Inc., AOL LLC and its subsidiaries have operations in the ., Europe,
Canada and Asia. Learn more at .
THE TEAM
Graeme Hutton, Karen Ring, Maggie Fosdick and Ali Ponce De Leon, Universal McCann
Stu Rodnick and Maria Pousa, AOL
Special thanks to the 360 Creative Team at AOL for
producing this booklet, Agatha Chang from Universal McCann
and Scott Kelliher & Stacey Comito from AOL for their
mobile marketing expertise.
RESEARCH INQUIRIES CAN BE DIRECTED TO:
Graeme Hutton
Director of Consumer Insights, UM
Tel:
Email: @
Stu Rodnick
Senior Director Strategic Insights, AOL
Tel:
Email: @
