©2011 eMarketer Inc.

Presented by:

Noah Elkin

Principal Analyst

@noahelkin

F E B R U A R Y 2 4 2 0 1 1

Smart Devices: Phones, Tablets and More—Opportunities for Marketers

Sponsored by:

©2011 eMarketer Inc.

Agenda

Growth trends: smartphones and tablets

Rising competition: devices and operating systems

Evolving usage patterns

Marketing and advertising implications

Key takeaways

Q & A

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Growth Trends: Smartphones

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The number of US smartphone users will rise by nearly 50% from 2011 to 2015

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Asia-Pacific and Western Europe lead the world in total smartphone users

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US smartphone ownership is growing more quickly among recent phone buyers

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The trend toward purchasing smartphones is also evident outside the US

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Smartphone buyers want a device that is part of larger mobile media ecosystem

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Growth Trends: Tablets

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Apple’s iPad and onslaught of Android tablets will push global sales up five-fold by 2012

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The iPad owns the tablet market…for now

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US will account for the majority of near-term tablet demand

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Tablet awareness and purchase intent are healthy, particularly among younger consumers

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Death of the ereader appears to be premature

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Rising Competition in Devices and Operating Systems

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Apple’s iOS will remain the dominant US smartphone platform in 2011, but Android will pull ahead in 2012

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Android increasingly popular among recent smartphone purchasers

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Android is the most popular smartphone platform among younger adults

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On a global level, Android will also gain ground by 2014

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Can the Nokia-Microsoft strategic alliance disrupt the mobile ecosystem?

Nokia to forego Symbian and MeeGo in favor of Windows Phone 7 OS on smartphones

Nokia to adopt Microsoft advertising on mobile devices

Google reaction:

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Tablets constitute an additional front in the same OS platform battle

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Evolving Usage Patterns

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Smartphone owners represent 80% of all US mobile internet users

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Disparity between smartphone and feature phone users is growing

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Mobile social networking is more prevalent among US smartphone users

Source: comScore, “2010 Mobile Year in Review,” Feb 2011

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Smartphone users in emerging markets over-index for many key retail activities

Source: Accenture, “Retail Applications of Mobile,” Dec 2010

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Tablets have quickly become daily fixtures for many activities

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Opportunity for tablets in the enterprise is growing

Source: ChangeWave Research, Dec 2011

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Marketing and Advertising Implications

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Global executives see multiple platform usage as a key trend affecting their business

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Marketers see advertising opportunities on a range of smart devices

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From a user experience perspective, both bring something to the table. Apps are effective at providing mobile users with an encapsulated experience that filters out the variables of browsing the web. Browsers, on the other hand, are universal, and give marketers more latitude to experiment with different ad formats.

As the mobile browser experience more closely resembles that of the desktop, browsing the web from a mobile device may become more “app-like” in user experience. Co-existence will lead to convergence between the two.

Most research indicates that smartphone owners are equally active in using the web and apps. An October 2010 survey by Frank N. Magid Associates, for example, found web browsing and app usage to be neck-and-neck (80% and 77%, respectively). 

Contest of apps vs. browsers will not result in an either/or outcome

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Growth in free apps outpaced that of paid apps across every OS platform in 2010

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Paid app prices are decreasing…

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…while in-app purchases are emerging as a more important revenue stream for developers and brands

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To get noticed, brands should market their apps across multiple channels

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Smartphone users are more likely to recall seeing ads…

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…but variations in other brand metrics between smartphone and feature phone users are minimal

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Tablet owners are more receptive to a range of advertising formats

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Mobile platform competition remains fierce. The US mobile market looks like a two-horse race between Apple and Android, as BlackBerry’s lead slips away.

Android is the growth story everywhere. Android is the fastest-growing mobile platform, and its growth is coming largely at the expense of incumbents such as RIM/BlackBerry in the US and Nokia/Symbian elsewhere.

Tablets will extend OS competition into a new market segment. Not quite computers, not quite mobile devices, tablets could disrupt both segments. As new tablet introductions accelerate over the next 12 months, they will redouble competition between the primary OS platforms.

One size does not fit all. Smartphones and tablets serve different purposes. Focusing on the distinctions between platforms and form factors will lead to payoffs in user experience.

Key takeaways

© 2011 Adobe Systems Incorporated. All Rights Reserved.

Ray Pun | Senior Manager, Product MarketingMobile Solutions Overview

© 2011 Adobe Systems Incorporated. All Rights Reserved.

Mobile Value Proposition

Collect the right data Compelling ExperiencesData-driven Decisions

© 2011 Adobe Systems Incorporated. All Rights Reserved.

Benefits of Mobile Solutions

Mobile SitesMobile Apps

Video

Feature PhoneSmart Phone

Tablet

Online MarketingSuite

A (CONTROL)

B(ALTERNATE)

Mobile SitesMobile Apps

Video

© 2011 Adobe Systems Incorporated. All Rights Reserved.

MyNewPlace: Success Story

“With Adobe SiteCatalyst, we can track and

compare user behavior and lead generation

across our three platforms: web, mobile web,

and iPhone app.”CTO and VP of Engineering

MyNewPlace

Challenge: Accurately measure the usage of its

first iPhone app to validate continued investment

Continuous optimization of the iPhone app, web, and mobile web experience that is being offered to customers

Results: iPhone app shown to convert at

nearly 2 times the rate of the website

26% increase in conversion on mobile optimized website

Ability to measure “click to call” phone leads initiated by iPhone app

Achieved ROI ahead of schedule

© 2011 Adobe Systems Incorporated. All Rights Reserved.

©2011 eMarketer Inc.

Smart Devices: Phones, Tablets and More— Opportunities for Marketers

Questions & AnswersRegistrants will receive an email tomorrow that includes a link to view the deck and webinar recording.

For more discussion, please join us after the webinar on LinkedIn. Search for the eMarketer Group and click on Discussions.

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Presented by:Noah ElkinPrincipal Analyst, eMarketer, Inc.@noahelkin

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