Adobe Mobile Trends Refresh -- Q2 2017

ADOBE DIGITAL INSIGHTS

MOBILE METRICS REFRESH | Q2 2017

TABLE OF CONTENTSOverview

03 Methodology

04 Key Findings

47 Glossary

48 Appendix

Highlights

05 Smartphones drive growth for large companies06 The smartphone is the only device with increasing visits07 Desktops still see the most visits08 Some industries outpace others in mobile transformation09 On smartphones, search and social drive consumers to websites10 Natural search drives more smartphone visits than paid11 Google AMP adoption is nearly universal by publishers12 Branded apps continue to struggle for consumer attention13 Branded apps are used via Wi-Fi the majority of the time

Industry Breakdowns15 Mobile Share of Visits Scoreboard

16 Mobile web traffic is above 50% in four of seven industries

17 Direct traffic from a smartphone increases with “loyalty-to-one” companies

18 Average large company visit growth by device

20 Paid search is critical for retailers

21 Apple iOS dominates website visits across industries

22 All industries see the majority of smartphone traffic arrive via Wi-Fi connections

26 Consumers haven’t changed the way they connect to the Internet

23-43 Industry trend breakdowns

Mobile Breakdowns45 Apple iOS and Android continue to grow


METHODOLOGYThe Mobile Metrics Refresh for Q2 2017 contains aggregated and anonymized consumer data from large company websites and apps across seven industries within the United States. It is based on 150+ billion visits to or launches of 400 sites or apps since January 2015. Branded app information is presented separately from browser-based visits to websites.

Industries profiled include:1. Retail & E-Commerce2. Travel & Hospitality3. Auto, Home & Life Insurance4. Automotive (excluding local dealers)5. Banking & Investment6. Media & Entertainment (excluding National News)7. National News


KEY FINDINGS1. Smartphones continue to drive growth as consumers rely on the devices more and

move away from tablets

2. Most industries see more than half of their traffic from mobile devices; industries where consumers are loyal to one brand, e.g. financial industries, benefit from apps driving down browsing from phones

3. Social networks and Google AMP play important roles in driving visits for content-driven industries

4. iOS continues to hold an edge over Android in terms of traffic and consumer value


Smartphones drive overall traffic growth for large companies

Overview:

• While overall web visits have been flat, larger companies are still seeing growth (8% YOY), suggesting consolidation in bigger companies

• Smartphone visit growth averages 2.5x total visit growth, indicating desktops and tablets are losing ground

• Industries with overall visit growth experienced strong growth in smartphone traffic to their sites compared to last year

• National News leads (see data table)

VISITS BY DEVICE | TOTAL VISIT GROWTH


The smartphone is the only device with increasing visits

Long Term Trend

• Smartphones are the only device showing continued growth, up 68% since January 2015

Year-over-Year Overview

• Smartphone visits to large company websites increased +25% YOY, while desktop and tablet website visits continued to erode (-3% and -6% YOY, respectively)

• The strong smartphone trend helped total visits to maintain positive growth for the large companies at +8% YOY



Desktops still see the most visits by a slim margin

SHARE OF VISITS BY DEVICE


Some industries outpaced others in mobile transformationSmartphone:

• Above Average Growth: National News (+52%) and Retail & E-Commerce (+31%)

• Below Average Growth: Media & Entertainment (+8%), Auto, Home & Life Insurance (+19%) and Banking & Investment (+20%)

Tablet:

• Positive Growth: Only National News (+15%)

• Below Average Performance: Media & Entertainment (-20%) and Auto, Home & Life Insurance (-13%)

Desktop:

• Positive Growth: Travel & Hospitality (+2%)

• Negative Growth: Media & Entertainment (-14%) and Automotive (-7%)

CHANGE IN VISITS BY DEVICE | INDUSTRY

Overview:• Google and Facebook account for a combined 3-of-4 (77%) visits from referred traffic; fewer than 1-of-4 (23%) come from any

other website


On smartphones, search and social drive consumers to websitesFacebook dominates referred traffic on smartphones in the

two industries where consumers follow stories: Media & Entertainment and National News

REFERRED TRAFFIC | REFERRED TRAFFIC BY DEVICE

Overview:• 3-of-4 visits (77%) from search efforts come from an organic approach which illustrates the strength of leading brands and companies

• Retail is the only industry where paid exceeds natural search, likely driven by its emphasis on promotion and products

• Information leaders rely on content strategies, as natural strongly outperforms paid


Natural search drives more smartphone traffic than paid search

Google Search accounts for more traffic on smartphones than desktops in 5 of 7 industries

PAID AND NATURAL SEARCH | REFERRED TRAFFIC BY DEVICE

Overview:• A possible contributor of mobile success and growth on a smartphone is Google’s Accelerated Mobile Pages (AMP)

• Nearly every leading National News (87%) or Media & Entertainment (84%) website sees traffic from accelerated pages

• Other industries see traffic or media flow through from publishers as well


Adoption of Google AMP by publishers is nearly universal

AMP has seen steady adoption by leaders in informational industries since it launched in 2016

GOOGLE AMP

Overview:• Despite overall smartphone visits to websites increasing ,

apps from large companies have seen a decrease in visits

• Technical advances at the device level, maturity of HTML5, mobile optimized pages (AMP), and dynamic content delivery all minimize the consumer ’s need to have ‘yet another application’

• Given the decline in overall tablet website traffic , it ’s not surprising to see app usage decrease as well (-49% since January 2016)

• Banking & Investment is the one bright spot with app launches on smartphones up 18% since January 2016


Apps continue to struggle for consumer attention

MOBILE APPS


Apps connect via Wi-Fi the majority of time on both devices

App Share of Visits by Connection Type

Q2 2017 Q2 2016

Wi-Fi Mobile Carrier Wi-Fi Mobile Carrier Wi-Fi Change YoY

Smartphone 57% 43% 57% 43% 0%

Tablet 92% 8% 94% 6% -2%Source: Adobe Ad Cloud + Adobe Analytics

SHARE OF VISITS BY CONNECTION | APPS


INDUSTRY BREAKDOWNSDATA INSIGHTS BY INDUSTRY

61% 58% 57%

46% 46% 46%42%39% 42% 43%

54% 54% 54%58%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Banking &Investment

Auto, Home & LifeInsurance

Travel Retail Automotive National News Media &Entertainment

Desktop Mobile


Mobile web traffic is above 50% in four of seven industries

MOBILE WEB TRAFFIC

Over 50% of web traffic is from mobile devices

Large retailers see over half of visits come from a mobile device

Information industries lead mobile transformation

Industries where large screens or apps help consumers are least mobile

in terms of web browsing


Direct traffic increases with “loyalty-to-one” brands in an industry

DIRECT VS. MARKETING CHANNELS


Industry View: Average large company visit growth by device

VISIT GROWTH BY DEVICE AND INDUSTRY


Paid search is critical for retailers

PAID AND NATURAL SEARCH


iOS dominates visits across industries

iPhone 6iPhone 7

Galaxy S7Galaxy S6

OPERATING SYSTEM BY INDUSTRY


Industries see majority of smartphone traffic arrive via Wi-Fi

iPhone 6iPhone 7

Galaxy S7Galaxy S6

CONNECTION TYPE BY INDUSTRY


Industry View: Large Auto, Home & Life Insurance

iPhone 6iPhone 7

Galaxy S7Galaxy S6

Year over Year Overview:

• Total visits have grown 10% in the past year.

• Smartphone visits have increased +84% since January 2015 and yield a Q2 2017 share of 38%

• Smartphone growth outpaced industry average, but share of mobile visits still lags behind (42% vs. 49%)




iPhone 6iPhone 7

Galaxy S6

Overview:

• iPhone share of visits is slightly below the industry average, 55% vs. 59%.

• Wi-Fi smartphone connections are roughly even with Mobile Carrier (52% to 48%) and just below industry average (58%)

OPERATING SYSTEM BY DEVICE



iPhone 6iPhone 7

Galaxy S6

Overview:

• Wi-Fi smartphone connections are roughly even with Mobile Carrier (52% to 48%) and just below industry average (58%)

CONNECTION TYPE


Industry View: Large Automotive

iPhone 6

Year over Year Overview:• Total visits have grown by +9% from Q2 2016 to Q2 2017

• Stronger than average smartphone growth coupled with typical desktop trends pushed mobile share over 50%




iPhone 6iPhone 7

Galaxy S6

Overview:

• iPhone share of visits match the industry average, 59% vs. 50%




iPhone 6iPhone 7

Galaxy S6

Overview:

• Wi-Fi smartphone connections are slightly more likely than mobile carrier (53% to 47%) and just below industry average (58%)

CONNECTION TYPE


Industry View: Large Banking & Investments

iPhone 6

Year over Year Overview:• Total visits have grown by +5% from Q2 2016 to Q2 2017

• Detailed finances, reviewing accounts, remains a desktop activity when browsing : 61% vs. 51% average



Industry View: Large Banking & Investment

iPhone 6iPhone 7

Galaxy S6

Overview:• iPhone share of visits on par with the industry average, 58% vs. 59%.

• Wi-Fi connections are under the industry average, 54% to 58%, suggesting checking in while “out and about” or using an app



Industry View: Large Banking & Investment

iPhone 6iPhone 7

Galaxy S6

CONNECTION TYPE

Overview:• Wi-Fi connections are under the industry average, 54% to 58%, suggesting checking in while “out and about” or using an app


Industry View: Large Media & Entertainment

iPhone 6

Year over Year Overview:• Total visits have decreased since Q2016; -5% YOY

• Smartphone growth is at 8% YOY, well below industry average; Slower growth reflects this industry has led the mobile transformation for quite some time (58% mobile share vs. 49% average)




iPhone 6iPhone 7

Galaxy S6

Overview:• iPhone share of visits on par with the industry average, 55% vs. 59%.




iPhone 6iPhone 7

CONNECTION TYPE

Overview:• Wi-Fi smartphone connections (61%) are above the industry average (58%)


Industry View: Large National News

iPhone 6

Year over Year Overview:• Total visits have increased +20% YOY due to consumer interest in current events; in addition, National News didn’t lose as much

traffic on desktop and tablets compared to the industry average

• Smartphone activity has increased 52% YOY resulting in 45% share of traffic; by comparison the YoY Q2 growth from 2015 was 22%




iPhone 6iPhone 7

Galaxy S6

Overview:• Share of smartphone visits from iPhones are in line with the industry average, 58% vs. 59%.




iPhone 6iPhone 7

Galaxy S6

CONNECTION TYPE

Overview:• Wi-Fi smartphone connections are well above the industry average (64% to 58%)


Industry View: Large Retail & E-Commerce

iPhone 6

Year over Year Overview:• Total traffic increased +12% from Q2 2016

• Smartphone traffic increased +31% YOY, contributing to an overall share of 45%; Tablet still accounts for 9% of traffic

• Retail is slightly more mobile-oriented than the typical industry (54% share vs. 49%)




iPhone 6iPhone 7

Galaxy S6

Overview:• 6-of-10 smartphone visits to retail sites are via iPhone, just over the industry average (62% vs. 59%)




iPhone 6iPhone 7

Galaxy S6

CONNECTION TYPE

Overview:• Wi-Fi smartphone connections (61%) are slightly above the industry average (58%)


Industry View: Large Travel & Hospitality

iPhone 6

Year over Year Overview:• Total visits for large Travel & Hospitality websites has increased +7% YOY

• Travel remains much more of a desktop destination than other industries (58% share of traffic vs. 51% average)

VISIT SHARE BY DEVICE AND INDUSTRY



iPhone 6iPhone 7

Galaxy S6

Overview:• Visitors to travel sites are more likely to use iPhones than Android-based smartphones 65% to 59%




iPhone 6iPhone 7

Galaxy S6

CONNECTION TYPE

Overview:• Wi-Fi smartphone connections are on par with the industry average (57% to 58%)


MOBILE BREAKDOWNSDATA INSIGHTS BY INDUSTRY


Apple iOS and Android continue to grow

Overview:

• Since Q1 2015, large companies saw a +26% increase in visits from Apple iOS compared to a +10% increase in Android visits

Trends:

• Apple iOS sees spikes in activity later in the year due to a combination of product announcements in September and the U.S. holiday season

• Android, as flagged by Samsung product announcements, also sees a lift in Q4 but it declines post-release news

iPhone 6iPhone 7

Galaxy S7Galaxy S6

OPERATING SYSTEM


GLOSSARY + APPENDIXDATA INSIGHTS BY INDUSTRY


GLOSSARYMetrics and Definitions

01 Devices: Desktop, Smartphone or Tablet02 Branded App: Enterprise level mobile phone application established by a company; does not contain social media, email or other native applications03 Mobile Device: Smartphone or tablet devices04 Website Visit: Visit to a website, regardless of device; does not include app visits05 Visit Growth: Trend in visits computed over two time periods06 Referred Traffic: Visits from an external website or source07 Marketing Channel: Visits sourced from a marketing channel (as opposed to direct traffic/entering the URL)08 Operating System: Underlying software running a mobile device09 Connection Type: The method by which a mobile device connects to the Internet; Either mobile network or Wi-Fi10 Large Company: Selection of Adobe’s biggest clients in each industry based on visits10 App Launches: Aggregate total of launches on Branded Apps

Industries

01 Retail & E-Commerce: Sale of consumer products to consumers online

02 National News: Organizations focused on covering news stories

03 Auto, Home & Life Insurance: Company and quote sites for all non-health insurance types

04 Automotive: Manufacturer and car search & review sites

05 Travel & Hospitality: Transportation (airlines, cruises, etc.) and destinations (hotel)

06 Banking & Investment: Consumer banking and wealth management companies

07 Media & Entertainment: Companies providing content and entertainment that is exclusive of National News


Appendix: Paid Search and Natural Search Q2 2016

PAID AND NATURAL SEARCH


Appendix: Smartphone Share of Visits by Operating System Q2 2016

iPhone 6iPhone 7

Galaxy S7Galaxy S6

OPERATING SYSTEM BY INDUSTRY


Appendix: Smartphone Share of Visits by Connection Type Q2 2016

iPhone 6iPhone 7

Galaxy S7Galaxy S6

CONNECTION TYPE BY INDUSTRY


Smartphones drive overall traffic growth for large companies

Large Company YoY Visit Growth Breakdown Q2 2017

Smartphone Visit Growth Total Visit Growth

National News 52% 20%Retail 31% 12%Travel 25% 7%

Automotive 24% 9%Banking & Investment 20% 5%

Auto, Home & Life Insurance 19% 10%Media & Entertainment 8% -5%

Source: Adobe Ad Cloud + Adobe Analytics

Methodology: Aggregated and anonymous visits to company web sitesVisit growth: Year-over-year trend in visits computed between Q2 2016 and Q2 2017



Some industries outpaced others in mobile transformation

Year-Over-Year Change in Visits by Device (US, Q2 2017)

Smartphone Tablet Desktop

National News 52% 15% 0%Retail 31% -1% -2%Travel 25% -7% 2%

Automotive 24% -8% -7%Banking & Investment 20% -6% 0%

Auto, Home & Life Insurance 19% -13% 0%Media & Entertainment 8% -20% -14%


CHANGE IN VISITS BY DEVICE | INDUSTRY

Methodology: Aggregated and anonymous visits to company web sites broken down by seven key industriesVisit growth: Year-over-year trend in visits computed between Q2 2016 and Q2 2017


Direct traffic has decreased in most industries since last year

Smartphone Share of Visits by Marketing Channel

Q2 2017 Q2 2016

Direct Marketing Channel Direct Marketing

ChannelDirect Change

YoYAutomotive 23% 77% 27% 73% -15%

National News 28% 72% 33% 67% -15%Media & Entertainment 28% 72% 33% 67% -15%

Retail 32% 68% 29% 71% 10%Travel 46% 54% 48% 52% -4%

Auto, Home & Life Insurance 61% 39% 77% 23% -21%

Banking & Investment 79% 21% 72% 28% 10%Source: Adobe Ad Cloud + Adobe Analytics

DIRECT VS. MARKETING CHANNEL


Apple iOS held steady lead across most industries

Smartphone Share of Visits by Operating System

Q2 2017 Q2 2016

Apple iOS Google Android Apple iOS Google Android Apple iOSChange YoY

Travel 65% 35% 63% 37% 3%Retail 62% 38% 61% 39% 2%

Automotive 60% 40% 57% 43% 5%National News 58% 42% 59% 41% -2%

Banking & Investment 58% 42% 57% 43% 2%Auto, Home & Life

Insurance 55% 45% 53% 47% 4%

Media & Entertainment 55% 45% 53% 47% 4%Source: Adobe Ad Cloud + Adobe Analytics

SHARE OF VISITS BY OPERATING SYSTEM | INDUSTRY


Consumers haven’t changed the way they connect to the internet

Smartphone Share of Visits by Connection Type

Q2 2017 Q2 2016

Wi-Fi Mobile Carrier Wi-Fi Mobile Carrier Wi-Fi Change YoY

National News 64% 36% 63% 37% 2%Media & Entertainment 61% 39% 62% 38% -2%

Retail 61% 41% 61% 39% 0%Travel 57% 43% 56% 41% 2%

Banking & Investment 54% 46% 54% 46% 0%Automotive 53% 47% 53% 47% 0%

Auto, Home & Life Insurance 52% 48% 53% 47% -2%


SHARE OF VISITS BY CONNECTION TYPE | INDUSTRY



Large Auto, Home & Life Insurance

Visit Growth Share of Visits

Long Term: Jan 2015 to Jun 2017

YoY: Q2 2016 to Q2 2017 Q2 2016 Q2 2017 YoY Change

Desktop -12% 0% 59% 58% -2%Smartphone 84% 19% 36% 38% 6%

Tablet -27% -13% 5% 4% -20%Source: Adobe Ad Cloud + Adobe Analytics

Methodology: aggregated and anonymous visit data to company websites in specified industryShare of visits defined as visits from listed device divided by total visits in the time periodVisit growth based is percent change from one period to the base period






Large Automotive




Desktop -19% -7% 57% 46% -19%Smartphone 98% 24% 33% 45% 36%



Industry View: Large Banking & Investment visits by device



Large Banking & Investment










Large Media & Entertainment










Large National News





Tablet -17% 15% 10% 9% -10%Source: Adobe Ad Cloud + Adobe Analytics





Large Retail & E-Commerce










Large Travel & Hospitality




Desktop 0% 2% 60% 58% -3%Smartphone 99% 25% 29% 32% 10%


Adobe Mobile Trends Refresh -- Q2 2017

Mobile

Transcript of Adobe Mobile Trends Refresh -- Q2 2017