Facing the future: Charting mobile & tablet’s near future

What we set out to do

Why are we doing this research? We want to help you create future-proof mobile strategies by understanding how the masses will use mobile technology in the near future (2-3 years)

Source: IAB Facing the Future Study 2012

Undertook 3 consumer mobile surveys

1513 representative Smartphone users

United Kingdom



United states South Korea

4 x in-home interviews1 x discussion group


We spoke to a collection of experts

Kieran AlgerWeb editor www.t3.com

Adrian GansHead of strategy at Razorfish

Nik RoopeCreative Director at Poke

Matt TaylorHead of Futures at O2

Dave CoplinDirector of Search at Microsoft UK

Stefan BardegaManaging Partner at Mediacom

Oliver NewtonHead of Emerging Platforms at

Starcom MediaVest


How are UK consumers engaging with mobile currently?

Smartphone penetration hits 61%

Smartphone adoption lifecycle

Source: comScore mobilens Sept 2012

“In the future everyone will have a smartphone”

- Dave Coplin

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Mobile will only get more useful

“Every function needs an interface and mobile is very good at dealing with a lot of different functions and interactions. Consumers are used to using their mobiles in this multi functional way - it seems a natural progression” – Nik Roope


37%26%

33%

I use my phone for going online

more than for calls/texts

62%34%

59%

UK consumers have the greatest emotional connection to their mobiles

I can't imagine life

without my mobile phone

51%26%

43%

My mobile phone fits my needs

as it is

UK consumers are more likely to use their mobiles most for going online, and are more satisfied their mobile needs are being met

Base: UK 1513, USA 900, SK 806Source: IAB Facing the Future Study 2012

51%

45%

26%

53%

43%

46%

SK use mobile the most, but are the least satisfied

My mobile fits my needs as it is

I wish my mobile phone was even more advanced

Mobile first behaviour

Use their mobiles before other devices to go online

87%Go online daily using their mobile phones

82%

38% 41%

31%77%


Can we expect the UK to follow SK’s path?

•69% of the UK expect their usage of mobile to increase in the next couple of years

•Will expectations of mobile technology heighten as they have in South Korea?


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How are UK consumers engaging with tablets currently?

Tablet penetration hits 14%

Tablet adoption lifecycle

Innovators

Early Majority

Late Majority

Laggards

2.5% 13.5% 34% 34% 16%

= 14%

2010 2012

Early Adopters

Source: comScore mobilens Sept 2012

Interestingly, UK are more engaged in tablets than South Korea

15% Going online daily

on tablets

35% Going online daily on

tablets

32%

21%

21%

I am using my tablet more than my laptop for online

browsing and shopping these days

Based on Tablet owners

Based on smartphone owners31%


Price & social barriers to tablet adoption are decreasing

“Price points will change in the next year, making tablets more accessible to consumers. Schools

will be full of slate devices… the device will

feel natural, second nature” - Dave Coplin

“We’re now over the ‘fear factor’ of using tablets in public” - Oli Newton


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What do consumers think about the future?

3 future concepts stand out

Mobile as the remote control for the household

Ad funded mobile & tablet content

Video streaming on mobile

Scanning products in store

Mobile as a shopping partner

The cloud

Mobile/tablet optimised websites

Mobile wallet

14%

14%

15%

16%

18%

52%

69%

74%

Base: UK 1513Source: IAB Facing the Future Study 2012

Assuming all of the following scenarios were possible, we'd like you to rank them from which you find most appealing to which you find least appealing.)

Mobile wallet

#1 Your mobile phone will be your identity – it will act as your house keys, car keys and will basically replace your wallet


Retailers need to react to consumer demand for a mobile presence- both in store & online

“Retailers have to think carefully about where mobile fits in the whole purchase process, from in-store, how they make the experience more engaging, and giving people more information”- Stefan Bardega

“I’d like mobile shopping to be easier” - UK consumer

“I want to be able to do more shopping from my mobile” - UK consumer


“this [mobile wallet] will become an increasingly contested space over the next 2-3 years... the challenge is to demonstrate the benefit and not the technology” - Matt Taylor

NFC could be the breakthrough for retailers on mobile

The potential to transform mobile commerce and retailHarnessing location-specific information to capture relevant consumer data and target appropriately

“When it becomes an ID card it is your gateway… at some point it just becomes part of your body”- Adrian Gans


However, privacy concerns still need to be addressed

“Mobiles will become your identity, your wallet. We need to start thinking about how data is being used and how we can protect that very personal space” – Adrian Gans

“None of the mobile future concepts are really appealing due to privacy concerns” – UK consumer


Mobile/tablet optimised websites

#2 Websites on your mobile phone and or tablet will be more advanced, and as easy to use as they are on your laptop/PC


Consumer appetite outgrown current level of content available on mobile

“I find myself checking the same sites and apps on my

mobile again and again during the day…but nothing

ever changes. It’s disappointing” Susan, 52


Could we make mobile content better?

“Rather than the linear ‘purchasing a magazine and sitting down on my own’

“We can build immersive experiences that don’t replace reading, but augment it and support it to provide a different experience” – Dave Coplin

there will be a more connected and sharing way of consuming content” - Kieran Alger


“It’s not useful to think about single platform experiences anymore - they're not little bubbles. We're given more and more tools all the time through applications and devices, and people adopt and use them holistically.Brand experiences should be a partnership on whatever device consumers have to hand”

Cross device content is a must have

- Nik Roope

“It’s disappointing when mobile sites

don’t work properly. I don’t tend to visit them

again” - Liam, 34


The cloud

#3 All your files, music and films will be stored virtually, and you'll be able to access them from your mobile and or tablet wherever you are


The cloud gives a seamless cross device experience

“Cloud is a massive part of the solution… I should be able to pick up my phone and everything is available. That’s the opportunity the cloud provides” – Dave Coplin


4G will kickstart the cloud & multimedia access

“What the intro of 4G will do is really accelerate the richness of experience that can be had both from a consumer and entertainment perspective but also from an advertisement perspective” – Stefan Bardega

Text based content

Multimedia-based content

Easy to load on 3G networks and the quickest way of getting

information on the go


However, data limits and battery life are still factors that withhold adoption

“Ahh… something new to drain my battery” – Joy,44.

“Any data caps will be totally prohibitive to mobile activity” - Oli Newton


What does the future hold for advertising on mobile?

Advertising has to keep up with the improving mobile experience

“From a publisher perspective, getting smarter about how we integrate the advertising into the mobile experience is something that absolutely has to happen”- Stefan Bardega


“I don’t know how you would make [an ad] on that small a screen anything but irritating”- Susan, 52

Advertising that works is tailored to the consumer

“A brand can now be seen and used in places it normally doesn’t go… The challenge is to take the consumer from being viewer to being a central character in the narrative”

- Oli Newton


“I make a point of clicking on ads that I see are relevant to me, just to let them know they did good job” – Ed, 33

Multi screening can provide exciting opportunities for brand communication

“We're watching something on a big screen and we have a device with us that has a bunch of content related to what we're watching on the big screen but it's not the same. It's a really immersive and pervasive experience” - Dave Coplin


Summary

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Summary

•Consumers in UK currently have the most personal relationship with their mobile •SK users are the most advanced, and have the highest expectations from mobile tech•The UK leads in tablet usage, and decreased barriers to adoption will mean a “Tablet Tastic Christmas”


Consumers & experts agree on 3 key themes for the next 2-3 years

• Will NFC kick start retailers into responding to consumer needs for mobile to be a part of the shopping process?

Mobile Wallet


Optimised websites


The Cloud

NFC could provide the technology for retailers to answer consumer demands for mobile shopping to be easier, making the mobile wallet a reality.

Consumers are demanding ever superior mobile experiences. Brands and publishers need to be better optimising content for mobile and tablet.

Mainstream 4G access will make the seamless cross device experience a reality. Multimedia access could be the winner from these developments.


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Facing the future: Charting mobile & tablet’s near future

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