Game of Phones African Mobile Consumer Survey€¦ · Q. Thinking about a typical day, how often,...

Game of PhonesAfrican Mobile Consumer Survey2015/2016

Presented by Mark Casey and Arun Babu Technology, Media and Telecommunications

Game of Phones African Mobile Consumer Survey© 2016 Deloitte Touche Tohmatsu Limited 2

Over 5,000 people − young and old, urban and rural, male and female

African Mobile Consumer Survey 2015/16

South Africa1000

respondents

Zimbabwe 449

respondents

Kenya2712

respondents

Nigeria1000

respondents

Uganda500

respondents


Africa’s Mobile Device Landscape


Q. Which, if any, of the following devices do you own or have ready access to?

East Africa dominated by feature phones in contrast with Nigeria and SA. Tablets just haven’t taken off in Africa, with SA an exception

Source: Deloitte Global Mobile Consumer Survey, Kenya, South Africa, Nigeria, Uganda and ZimbabweBase: All respondents: 5661

53%

96%

90%

39%42%

45%

18%20%

61% 60%

17%

49%

27%

18% 17%

11%

52%

20%

14%

9%

4%

15%

6%3% 3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Zimbabwe South Africa Nigeria Kenya Uganda

Devic

e p

en

etr

ati

on

Smartphone Feature or basic phone Laptop Tablet Portable games player



Nigeria primed for major data consumption due to ubiquity of smartphones

86%92%

96%

27%

15% 12%

25%29% 28%

18%22% 21%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

16-24 25-34 35-44

Devic

e p

en

etr

ati

on

Smartphone Feature or basic phone Laptop Tablet

93%

82%

18%

27%30%

16%24%

7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Urban Rural

Devic

e p

en

etr

ati

on


Source: Deloitte Global Mobile Consumer Survey NigeriaBase: All respondents: 1000



SA is a multi-device market more consistent with developed markets

92%98% 98%

16% 19% 18%

48% 46%

55%52%48%

60%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

16-24 25-34 35-44

Devic

e p

en

etr

ati

on


99%

83%

17% 20%

51%

40%

54%

43%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Urban Rural

Devic

e p

en

etr

ati

on


Source: Deloitte Global Mobile Consumer Survey South AfricaBase: All respondents: 1000



Zimbabwe has grown as a connected economy, more aligned with SA

53% 53% 55%

46% 45% 45%

20%17%

6%

12% 12%

4%

0%

10%

20%

30%

40%

50%

60%

16-24 25-34 35-44

Devic

e p

en

etr

ati

on


56%

37%42%

64%

18%14%

11% 11%

0%

10%

20%

30%

40%

50%

60%

70%

Urban Rural

Devic

e p

en

etr

ati

on


Source: Deloitte Global Mobile Consumer Survey ZimbabweBase: All respondents: 449


The African Smartphone –A platform for life


Q. In which of the following situations, do you typically tend to also use your mobile phone?

South Africans multi-task in ways that create threats for advertisers and opportunities for eCommerce providers

12%

2%

7%

4%

22%

23%

22%

31%

24%

19%

26%

20%

39%

37%

5%

7%

10%

14%

26%

29%

29%

30%

31%

37%

42%

43%

44%

63%

0% 10% 20% 30% 40% 50% 60% 70%

None of these

When crossing the road

When in a business meeting

While driving

When eating at home with my family or friends

When meeting my friends on a night out

When eating in a restaurant with my family or friends

When spending time with my family or friends

When talking to family or friends

While walking

While at work

While out shopping

When using public transport

While watching TV / a film

South Africa Nigeria

Source: Deloitte Global Mobile Consumer Survey South AfricaBase: All who own/have access to smartphone: 860

Source: Deloitte Global Mobile Consumer Survey NigeriaBase: All who own/have access to smartphone: 845


Q. For which, if any, of the following do you typically use your phone for?

Faster access speeds, cheaper connectivity and device-centric content means an explosion of data consumption in SA and Nigeria

28%

54%

7%8%

14%

16%

37%

20%

Watch video news stories on newsapps

Read the news

Listen to online radio

Stream films and/or TV series

Watch TV programmes via catch-upservices

Watch live TV

Watch short videos

Stream music

25%

52%

9%9%

19%

14%

52%

23%

SA Nigeria

Source: Deloitte Global Mobile Consumer Survey South Africa and NigeriaBase: All who own/have access to smartphone: 860


Q. How many times would you estimate you look at your phone in a day?

More than 33% of Africans check their phone every 5 minutes

0

5%

19%

32%

17%

7%

14%

7%

1%

7%

17%

27%

19%

8%

14%

7%

0% 5% 10% 15% 20% 25% 30% 35%

Never

Under 10 times

Between 11 and 25 times




Over 200 times

I don’t know

South African smartphone users

2015 2014

1%

8%

17%

21%

15%

5%

16%

18%

0

7%

17%

21%

15%

6%

15%

18%

0% 5% 10% 15% 20% 25%

Never

Under 10 times





Over 200 times

I don’t know

Nigerian smartphone users

2015 2014




Q. Thinking about a typical day, how often, if at all, do you tend to check your phone without being prompted by a notification?

Mobile advertising opportunities keenly balanced with adblocking developments and the need for innovative advertising technology

18%

22%

17%

32%

34% 34%

29%

25%26%

13%14%

13%

4%5%

7%

2%

01%

2%1% 1%

0%

5%

10%

15%

20%

25%

30%

35%

40%

16-24 25-34 35-44

South African smartphone users

Almost all the time Very often

Sometimes/occasionally Not very often

Hardly ever Never

Don't know

25%23%

30%

36%38%

41%

18%20%

18%

12%14%

8%

4%

1% 1%1% 1%0

3%2% 2%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

16-24 25-34 35-44

Nigerian smartphone users

Almost all the time Very often

Sometimes/occasionally Not very often

Hardly ever Never

Don't know




Q. Typically how long is the interval between you waking up and looking at your phone for the first time?

It’s at least an 18 hour day for >50% of all smartphones in South Africa

28%

33%

15%

10%

9%

1%

2%

0% 5% 10% 15% 20% 25% 30% 35%

Immediately

Within 5 minutes

Within 15 minutes

Within 30 minutes

Within an hour

Within two to three hours

Longer than three hours

26%

28%

15%

13%

10%

3%

2%

0% 5% 10% 15% 20% 25% 30%

Immediately

Within 5 minutes

Within 15 minutes

Within 30 minutes

Within an hour




Q. At the end of the day, typically how long is the interval between you looking at your phone for the last time and preparing to sleep?



Q. Typically how long is the interval between you waking up and looking at your phone for the first time?

And the ritual continues into Nigeria, as it does in all territories

27%

34%

14%

9%

7%

3%

2%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Immediately

Within 5 minutes

Within 15 minutes

Within 30 minutes

Within an hour



18%

29%

17%

14%

8%

4%

4%

0% 5% 10% 15% 20% 25% 30% 35%

Immediately

Within 5 minutes

Within 15 minutes

Within 30 minutes

Within an hour




Q. At the end of the day, typically how long is the interval between you looking at your phone for the last time and preparing to sleep?



Connection preferences and trends in Africa

15


Q. Which type of connectivity do you use most often on your phone?

Africa’s topography makes mobile networks the primary infrastructure for Internet access with 3G as the most prevalent network technology

85%

52%

85% 85%

73%

14%

46%

13% 10%

25%

2% 2% 2%5%

2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Kenya South Africa Nigeria Uganda Zimbabwe

Mobile network via 2G/3G/4G Wi-Fi I don't know

45%

22%

32%

52%

33%

44% 45%

59%

39% 40%

6%

22%

15%

11%

6%

0%

10%

20%

30%

40%

50%

60%

70%


Mobile network via 2G/GPRS/EDGE

Mobile network via 3G/HSDPA

Mobile network via 4G/LTE

Majority of Ugandans make use of 2G connectivity

Wi-Fi usage is the most prevalent in South Africa and Zimbabwe

Source: Deloitte Global Mobile Consumer Survey, Kenya, South Africa, Nigeria, Uganda and ZimbabweBase: All who connect their phone to the internet: 5575

Source: Deloitte Global Mobile Consumer Survey, Kenya, South Africa, Nigeria, Uganda and Zimbabwe Base: All respondents: 5661

Q. How do you connect your phone to the internet?


Q. Which type of connectivity do you use most often on your phone?

Wi-Fi connectivity works because it’s mainly free. Advertisers and service providers will need to raise their game to capture value from the user session

30%

60%

34%

22%

38%

12%

20%

7%

10%

7%6%

4%2%

3%1%

0%

10%

20%

30%

40%

50%

60%

70%


Wi-Fi at home, at work, or place of study Wi-Fi in a public space Wi-Fi while commuting

Source: Deloitte Global Mobile Consumer Survey, Kenya, South Africa, Nigeria, Uganda and ZimbabweBase: All respondents 5661


It’s only a matter of time before more countries experience the move from GSM to Wi-Fi and the implications for data usage and customer ownership

18

43%

54%

26%29%

50%

56%

46%

73%68%

48%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Tablet users

Wi-Fi Mobile network via 2G/3G/4G

Q. Which type of connectivity do you use most often on your device?

Source: Deloitte Global Mobile Consumer Survey, Kenya, South Africa, Nigeria, Uganda and ZimbabweBase: All who connect their phone to the internet: 832


With most network operators in the initial stages of 4G network rollouts the number of 4G users is expected to grow within the next 12 months

94%

78%85%

89%94%

6%

22%15%

11%6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


mobile network via 3G and 2G Mobile network via 4G/LTE

71%

46%

65%

75% 76%

9%

18%

7%

6% 4%

13%

27%

21%

11%10%

7% 9% 7% 9%10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Yes No I don't know I don't know what 4G/LTE is

Q. How do you connect your phone to the internet?

Source: Deloitte Global Mobile Consumer Survey, Kenya, South Africa, Nigeria, Uganda and ZimbabweBase: All respondents: 5661

Source: Deloitte Global Mobile Consumer Survey, Kenya, South Africa, Nigeria, Uganda and ZimbabweBase: All who do not connect with 4G/LTE: 3449

Q. Are you likely to subscribe to 4G/LTE in the next 12 months?


Q. How would you rate the 4G service you subscribe to compared to the speeds you were previously getting when using your mobile network?

The explosion of rich media local content requiring high speed connections drives 4G adoption

67% 67%

60%

72%

67%

14%16%

21%

13%15%

12%

7%

12%

4%

11%

7%

11%

6%

11%

7%

0%

10%

20%

30%

40%

50%

60%

70%

80%


The speeds on my phone are faster There is no difference in the speed The speeds on my phone are slower I don't know

Source: Deloitte Global Mobile Consumer Survey, Kenya, South Africa, Nigeria, Uganda and ZimbabweBase: All who connect with 4G/LTE: 491


Media – The next growth vector for MNOs


Q. For which, if any, of the following do you typically use your phone for? And for which, if any, of the following do you typically use your phone for while out and about

The consumption of short-format (SF) video is a trend to watch for content producers, advertisers and MNOs

27%

51%

6%8%

13%16%

36%

18%17%

31%

3% 4% 5%8%

29%

8%

0%

10%

20%

30%

40%

50%

60%

Stream music Watch short videos Watch live TV Watch TVprogrammes viacatch-up services

Stream filmsand/or TV series

Listen to onlineradio

Read the news Watch video newsstories on news

apps

General use Out and about

Reading the news is the least data intensive activity thus there is not a significant decline when out and about

Source: Deloitte Global Mobile Consumer Survey South AfricaBase: All respondents: 1000, All who stream/watch/listen to media on phone: 782


South Africans are the most sensitive to data usage when “out and about” but music streaming is most resilient

0

10

20

30

40

50

60

SA Nigeria Kenya Uganda Zimbabwe

Watch SV

Watch SV (Out)

Read News

Read News (Out)

Stream Music

Stream Music (Out)

Source: Deloitte Global Mobile Consumer Survey


Q. For which, if any, of the following do you typically use your phone for

Africa follows a global trend for increased consumption of SF video. This extends beyond entertainment into education, news and healthcare.

51%

18%

13%

8%6%

0%

10%

20%

30%

40%

50%

60%

Watch short videos Watch video news stories onnews apps

Stream films and/or TV series Watch TV programmes viacatch-up services

Watch live tv

Short(up to 10 minutes)

Long(Over one hour)





For Nigerians, reading the news is the No1 media source in the mobile world, but watch for the growth in video news stories and music streaming as bandwidth prices continue to fall

22%

50%

8% 9%

17%15%

52%

22%

15%

34%

4% 4%

7%

10%

48%

10%

0%

10%

20%

30%

40%

50%

60%





apps


Source: Deloitte Global Mobile Consumer Survey NigeriaBase: All respondents 1000: All who stream/watch/listen to media on phone: 852



23%

45%

5% 5%

9%

20%

44%

25%

16%

33%

2% 2%3%

15%

38%

16%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%





apps



There is a significant drop in watching of SF videos while on the move by Kenyan subscribers due to cost

Source: Deloitte Global Mobile Consumer Survey KenyaBase: All respondents 1000: All who stream/watch/listen to media on phone: 852



31%

48%

5% 4%

9%

18%

49%

21%

25%

39%

2% 2%

5%

13%

46%

14%

0%

10%

20%

30%

40%

50%

60%





apps


In Uganda, the usage of mobile devices to stream videos does not decline like other territories. Reading news remains fairly constant

Source: Deloitte Global Mobile Consumer Survey UgandaBase: All respondents 500: All who stream/watch/listen to media on phone: 444




26%

41%

4%6%

8%

17%

35%

24%

18%

28%

3% 3%2%

16%

31%

16%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%





apps


Zimbabwean subscribers are sensitive to data prices when on the move


Source: Deloitte Global Mobile Consumer Survey ZimbabweBase: All respondents 1000: All who stream/watch/listen to media on phone: 852



Whose App is it anyway?


4%

2% 2% 2%

32%

6%

2%

4%5%

6%

2%

4% 4%

2% 2% 2% 2%

5%4%

5% 5%5% 5%4%

6%

3%

5%4% 4%

48%

53%

48%

36%

33%

18%19%

21%

27%

22%

3%4%

6%

10%12%

0%

10%

20%

30%

40%

50%

60%

South Africa Nigeria Zimbabwe Kenya Uganda

1 2 3 4 5 6-10 More than 10 I don't know I have not downloaded an app in the last month I have never downloaded an app

App downloads in Uganda are sporadic

Q. How many apps do you download on your phone in a typical month?

People do not know how many apps they download in a typical month, but likely to normalise around 33 apps per device at any point with 3 apps dominating (80%) of usage

Source: Deloitte Global Mobile Consumer Survey, Kenya, South Africa, Nigeria, Uganda and ZimbabweBase: All respondents:5661

Kenyans that have never downloaded an app = 10%Ugandans that have never downloaded an app= 12%


Just how big is mobile banking?


57%

8% 10%4% 3%

10%

2%6%

0%

10%

20%

30%

40%

50%

60%

My bank Financialinstitutions

My mobileoperator provider

Money transferservice

App storeproviders

I do not have apreference

None of the above I don't know

56%

44%

Interest in In-store mobile payments

Yes No

49%

51%

Interest in mobile money transfers

Yes No

Q. If a solution whereby you would be able to pay in shops by using your mobile phone, similar to how you use cash or a debit or credit card, would become available, would you use it?

A notable increase in e-commerce in South Africa, but when it comes to financial transactions most prefer using banks. As with most territories, the opportunity for MNOs is enormous

Preferred institutions for

these transactions

74% of respondents have a bank account

Q. Would you like to able to use your phone to transfer money to friends/family?

Source: Deloitte Global Mobile Consumer Survey South AfricaBase: All who have not used phone to make a payment in-store: 903



71%

29%


Yes No

67%

33%


Yes No

Nigeria has a strong FSI infrastructure with most owning a bank account. > 71% of the mobile subscribers prefer financial transactions managed by banks

50%

20%

7%4% 2%

10%

2%6%

0%

10%

20%

30%

40%

50%

60%




App storeproviders



Source: Deloitte Global Mobile Consumer Survey NigeriaBase: All who have not used phone to make a payment in-store: 608

Source: Deloitte Global Mobile Consumer Survey Zimbabwe 2015-10-1Base: All respondents: 1000





these transactions


17%

6%

19%

47%

7%3% 1%

0%5%

10%15%20%25%30%35%40%45%50%

My bank Financial institutions My mobile operatorprovider




74%

26%


Yes No

49%

51%


Yes No

In contrast, Zimbabweans have a strong preference for money transfer services for financial transactions



Source: Deloitte Global Mobile Consumer Survey ZimbabweBase: All who have not used phone to make a payment in-store: 319

Source: Deloitte Global Mobile Consumer Survey Zimbabwe 2015-10-1Base: All respondents: 449



these transactions


50%

20%

7%4% 2%

10%

2%6%

0%

10%

20%

30%

40%

50%

60%




App storeproviders



79%

21%


Yes No

67%

33%


Yes No

Ugandan population holds bank accounts and therefore prefer to execute financial transactions in this way



Source: Deloitte Global Mobile Consumer Survey UgandaBase: All who have not used phone to make a payment in-store: 172

Source: Deloitte Global Mobile Consumer Survey Uganda 2015-10-1Base: All respondents: 500



these transactions


76%

24%


Yes No

66%

34%


Yes No

30%

10%

32%

8%5%

9%

3% 3%

0%

5%

10%

15%

20%

25%

30%

35%




App storeproviders



Kenya has more people with mobile phone numbers than with bank accounts and hence financial transactions are mainly routed via MNOs



Source: Deloitte Global Mobile Consumer Survey KenyaBase: All who have not used phone to make a payment in-store: 433

Source: Deloitte Global Mobile Consumer Survey Kenya 2015-10-1Base: All respondents: 1000



these transactions


Mobile commerce –A fact or a fantasy


Africans are still more browsers than buyers and across a range of devices. Buying habits focus on bricks/mortar shops and the continent-wide challenges of logistics/delivery methods will remain

0

5

10

15

20

25

30

35

40

45

50

SA Nigeria Kenya Uganda Zimbabwe

Online Purchase Once

Online Purchase Weekly

In-store Mobile Payment Once

In-store mobile payment weekly

Browse shopping websites once

Browse shopping websites weekly

Source: Deloitte Global Mobile Consumer Survey


Q. Have you ever used your mobile phone for any of the following? And which one of the following do you do at least once a week?

Consumers in South Africa and Nigeria prefer to browse and search for products and discounts on their mobile devices however most purchases are done offline

25%

10%

42%

6%

3%

17%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Make an onlinepurchase

Make a payment in-store

Browse shoppingwebsites/apps

Phone usage for shopping

South Africa

One time usage Frequency of usage (once a week)

28%

14%

43%

7%

3%

18%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%





Nigeria



Source: Deloitte Global Mobile Consumer Survey South Africa 2015-10-1Base: All respondents: 1000

South African and Nigerian shoppers are primarily using shopping websites for browsing purposes and executing purchases in brick-and-mortar stores


Q. Have you ever used your mobile phone for any of the following?

Tablets are the commonly used device for shopping related activities by South African and Nigerian shoppers

27%25%

32%

11%

14%13%

44%

38%

49%

0%

10%

20%

30%

40%

50%

60%

Smartphone Featurephone Tablet

Device usage for shopping

South Africa

Make an online purchase


Browse shopping websites/apps

31%

24%

53%

15% 14%

25%

46%

41%

67%

0%

10%

20%

30%

40%

50%

60%

70%

80%


Device usage for shopping

Nigeria





Source: Deloitte Global Mobile Consumer Survey Nigeria 2015-10-1Base: All respondents: 1000



Almost 1 in 3 Zimbabwean shoppers has made a one time in-store payments using their mobile devices making it the most popular shopping related activity followed by browsing shopping websites/apps

8%

29%

24%

2%

10%9%

0%

5%

10%

15%

20%

25%

30%

35%

Make an online purchase Make a payment in-store Browse shopping websites/apps


Zimbabwe





As in other territories, most of the shopping related activities by Zimbabweans are carried out on tablets

11%

5%

14%

34%

20%

43%

30%

16%

35%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%


Device usage for shopping related activities-Zimbabwe

Make an online purchase Make a payment in-store Browse shopping websites/apps




Kenyan shoppers prefer making in-store payments compared to Ugandan shoppers who prefer browsing shopping websites/apps

10%

37%

30%

3%

16%

12%

0%

5%

10%

15%

20%

25%

30%

35%

40%





Kenya


6%

12%

20%

1%

4%

8%

0%

5%

10%

15%

20%

25%





Uganda


Source: Deloitte Global Mobile Consumer Survey KenyaBase: All respondents: 1000

Source: Deloitte Global Mobile Consumer Survey South Africa 2015-10-1Base: All respondents: 500

The majority of Kenyan and Ugandan shoppers still prefer purchasing brick-and-mortar stores



Tablets and smartphones are used by a majority of Kenyans for their shopping related activities, while in Uganda consumers favour the tablet

17%

6%

25%

44%

35%

40%41%

25%

38%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%


Device usage for shopping related activities-

Kenya




9%

3%

16%16%

11%

23%

28%

16%

35%

0%

5%

10%

15%

20%

25%

30%

35%

40%


Device usage for shopping related activities

Uganda




Source: Deloitte Global Mobile Consumer Survey KenyaBase: All respondents: 1000

Source: Deloitte Global Mobile Consumer Survey Uganda 2015-10-1Base: All respondents: 500


Contact us

Mark Casey

Global Media & Entertainment Leader

Tel: +27 (0) 11 806 5000

Email: [email protected]

Arun Babu

Africa Telecommunications Leader

Tel: +27 (0) 11 806 5400

Email: [email protected]

We invite you to connect with us to discuss the opportunities and implications of the findings of this report on your business in more detail

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