Technology Landscape in Japan

7/29/2019 Technology Landscape in Japan

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Google Confidential and Proprietary


Understanding the Mobile Consumer

May 2012

Our Mobile Planet:Japan


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Executive Summary

2

Smartphones have become an indispensable part of our daily lives. Smartphone penetrationhas risen to 20% of the population and these smartphone owners are becoming increasinglyreliant on their devices. 77% access the Internet every day on their smartphone and most never

leave home without it. Implication: Businesses that make mobile a central part of their strategywill benefit from the opportunity to engage the new constantly connected consumer.

Smartphones have transformed consumer behavior. Mobile search, video, app usage, andsocial networking are prolific. Smartphone users are multi-tasking their media with 80% usingtheir phone while doing other things such as watching TV (53%). Implication: Extendingadvertising strategies to include mobile and developing integrated cross-media campaigns canmore effectively reach todays consumers.

Smartphones help users navigate the world. Appearing on smartphones is critical for localbusinesses. 91% of smartphone users look for local information on their phone and 79% takeaction a result, such as making a purchase or contacting the business. Implication: Ensuring thatclickable phone numbers appear in local results and leveraging location based services on mobilemake it easy for consumers to connect directly with businesses.

Smartphones have changed the way consumers shop. Smartphones are critical shopping tools

with 100% having researched a product or service on their device. Smartphone research influencesbuyer decisions and purchases across channels. 39% of smartphone users have made a purchaseon their phone. Implication: Having a mobile optimized site is critical and a cross-channel strategyis needed to engage consumers across the multiple paths to purchase.

Smartphones help advertisers connect with consumers. Mobile ads are noticed by 90% ofsmartphone users. Smartphones are also a critical component of traditional advertising as 62%have performed a search on their smartphone after seeing an offline ad. Implication: Makingmobile ads a part of an integrated marketing strategy can drive greater consumer engagement.


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Understanding the Mobile Consumer

This survey is designedto gain insights into howconsumers use theInternet on their

smartphones

3

How are smartphonesused in daily life?

How do consumers multi-taskwith their smartphones?

Whatactivitiesare consumersconducting on their smartphones?

What role do smartphones play

in the shoppingprocess?

How do consumers respond

to ads, offline and on mobile?

DAY

In detail:

Facts and figures about smartphoneadoption and usage

Internet usage in general, search, video,social networking, mobile advertisingand m-commerce behavior viasmartphones

This country report is part of a globalsmartphone study conducted in multiplecountries. Visit OurMobilePlanet.com foraccess to additional tools and data


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Agenda

4

1 Smartphones are Indispensable to Daily Life

2 Smartphones Have Transformed Consumer Behavior

3 Smartphones Help Users Navigate the World

4 Smartphones Change the Way Consumers Shop

5 Smartphones Help Advertisers Connect with Customers


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5

SMARTPHONESCHANGE THE WAYCONSUMERS SHOP


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Google Confidential and Proprietary 6

Smartphone Penetration is on the Rise

Q1 2011

6%

20%Q1 2012

Base: National representative population 16+, n= 1.000Q1: Which if any of the following devices do you currently use?


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Smartphones are a Central Part ofOur Daily Lives

7

have used theirsmartphones every day inthe past 7 days77%

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000Q18: Thinking about the last seven days on how many days were you online with ...?


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Smartphones are Always On, Always with You

8

dont leave homewithout their device78%

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000Q52: To what extent do you agree to each of these statements?, Top2 Boxes; scale from 5 completely agree to 1 completely

disagree. I dont leave house without my smartphone


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Smartphones Are Used Everywhere

9

At home

99%

On the go

86%

In a store

75%

99%

86%

75%

66%

62%

60%

59%

44%

32%

30%

18%

Home

On-the-go

In a store

Work

Restaurant

Caf or coffee shop

Public Transport

At a social gathering

Doctor's office

Airport

School

Place of Use

Base: Private smartphone users who use the Internet in general, Smartphone n= 1.000Q16: Where do you use your smartphone? Please select first at which locations you ever use it - even if only seldom.


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Allowing Users to Stay Fully Connected

10

84%

66%

47%

19%

Emailing

Search Engines

Social Networking Sites

Video sharing Sites

access theInternet on theirsmartphones at leastonce a day

82%

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000Q9: Using the scale below, please indicate approximately how frequently you use the Internet in general and specific services and types

of websites through your browser or apps on your smartphone? Responses reflect at least once a day.


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Smartphone Use is Expected to Increase

11

expectto use their

smartphone more toaccess the Internetin the future

46%

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000Q21: Thinking about the next 12 months, what do you expect, how will you be using the internet with your?


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Smartphones Have Become so Important toConsumers that

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000Q52: To what extent do you agree to each of these statements?, Top2 Boxes; scale from 5 completely agree to 1 completely

disagree. I would rather give up TV than my smartphone. I would rather give up my TV / desktop PC than my smartphone

would rather give upTV than their smartphone36%


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SMARTPHONESHAVE TRANSFORMEDCONSUMER BEHAVIOR

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Smartphones are aMajor Access Pointfor Search

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68%search on theirsmartphonesevery day

Base: Private smartphone users who use the internet in general and who are searching via search engine, Smartphone n= 981Q31: How often do you do searches (via Google, Yahoo!, Bing, etc.) on your ... ?


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Smartphones Inform Our Daily Life

15

Apartments, Housing info

13%Job Offers

12%

Product Info51%

Travel54%

Restaurants, Pubs & Bars39%

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000Q23: Which of the following activities do you do with your smartphone? Please indicate whether you ever do this at all.


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Smartphones are a Multi-Activity Portal

16

Entertainment

87%

83%

50%

50%

42%

73%

55%

51%

50%

Emailed (sent or read)

Accessed a social network (e.g.

updated a status message checked

messages or friends' pages)

Reviewed websites blogs or

message boards

Read news on newspaper or

magazine portals

Browsed the Internet

Watched videos on a video sharingwebsite (e.g. YouTube.com)

Played games

Listened to music

Stay Informed63%

Communication

88%

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000Q23: Which of the following activities do you do with your smartphone? Please indicate whether you ever do this at all.


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App Usage is Ubiquitous

17

408

6Base: Private smartphone users who use the internet in general, Smartphone n= 1.000

Q24: How many apps do you currently have on your smartphone?Base: Private smartphone users who use the internet in general and who have at minimum one app on their smartphone, n= 989Q25: And of the apps you currently have installed on your smartphone, how many have you used actively in the last 30 days?Q26: And of the apps you currently have installed on your smartphone, how many have you purchased for a certain amount in an app store?

apps installedon average

paid apps installedon average

apps used in thelast 30 days


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76%watch video

16%use video at leastonce a day

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000Q35: How often do you watch videos via websites or apps (e.g. short video clips, videos

of TV shows, TV movies online, etc.) on your ... ?

Smartphones Users are Avid Video Watchers


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Smartphone Users are FrequentSocial Networkers

19Base: Private smartphone users who use the internet ingeneral, Smartphone n= 1.000 . Q38: How often do you visit asocial network (via websites or apps) on your ... ?

41%visit at leastonce a day

63%visit socialnetworks


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Smartphones Are Used While Multi-taskingwith Other Media

20Base: Private smartphone users who use the Internet in general and who were online yesterday with their smartphone,Smartphone n= 898 Q22: When you use the Internet on your smartphone, which if any of the following do you do at the same time?

80%Use

smartphonewhile

Play video games

7%

Read a book

7%

Watch movies

10%

Watch TV

53%

Listen to music

26%

Use Internet

30%

Read magazines/newspapers

11%


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SMARTPHONESHELP USERSNAVIGATE THE WORLDAROUND THEM

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Base: Private smartphone users who use the internet in general, Smartphone n= 1.000Q33: How often do you look for information about local businesses or services on your smartphone? (Ever)Base: Private smartphone users who use the internet in general and who look at least less than once a month forinformation on their smartphone, Smartphone n= 935 Q34 Which of the following actions have you taken after havinglooked up this type of information (business or services close to your location)?

of smartphone usershave looked for localinformation

91%

have taken action as

a result

79%


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Look for localinformation daily

Look for local information atleast once a week52% 24%

Looking for Local Information is a FrequentSmartphone Activity

23Base: Private smartphone users who use the internet in general, Smartphone n= 1.000Q33: How often do you look for information about local businesses or services on your smartphone? (Ever)


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Local Information Seekers Take Action

24Base: Private smartphone users who use the internet in general and who look at least less than once a monthfor information on their smartphone, Smartphone n= 912Q34: Which of the following actions have you taken after having looked up this type of information (businessor services close to your location)?

told othersabout it

26%

44%

17%

42%

38%

24%

6%

21%

12%

Looked the business up on a map orgot directions to the business or

service

Called the business or service

Visited a business (e.g. store or

restaurant)

Visited the website of the business orservice

Read or wrote a review about a

business or service

Recommended a business or service

to someone else

Made a purchase from a business in-

store

Made a puchase from a business

online

visited thebusiness57%

connected withthe business

50%

made a purchase

26%


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SMARTPHONESCHANGE THE WAYCONSUMERS SHOP


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Smartphones Allow Users to ResearchProducts Anytime, Anywhere

26

At home

65%

On the go

40%

In a store

23%

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000Q51a: And where were you when you researched for products or services with your smartphone?

65%

40%

23%

22%

21%

19%

13%

Home

On the go

In a store

Work

Caf or coffee shop

Public transport

Restaurant

Place of Search


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have researcheda product or serviceon their phone100%

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000Q51a: And where were you when you researched for products or services with your smartphone?

27


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Smartphones are Our Primary ShoppingCompanions

28

24%

22%

17%

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000Q52: To what extent do you agree to each of these statements? Please answer on a scale from 1 to 5. A "1" means that you

completely disagree with the statement a "5" means that you completely agree with the statement.

I intentionally have mysmartphone with me

to compare prices andinform myself

about products.

I have changed mymind about purchasing

a product or servicein store as of a result of information

I gathered using my smartphone.

I have changed my mind aboutpurchasing a product or serviceonline as of a result of information I

gathered using my smartphone.


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Research that Starts on Smartphones Leadsto Purchases Across Channels

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000Q48: Listed below are various products or services. For each of these products or services please indicate which statement appliesto you.

29

Researchon smartphone

28%

16%

then purchased

via computer

then purchased

it offline

then purchased


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59%of these smartphone shoppershave made a purchasein the past month

39%of smartphone users havepurchased a product or serviceon their smartphone

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000

Q44: Have you ever purchased a product or service over the internet on your smartphone? With product or service we mean everything you canbuy excluding apps. Base: Private smartphone users who use the internet in general and who purchased via internet on their smartphone n= 385Q45: Have you made a purchase by using your smartphone in the past month?

Smartphones Are an Emerging Point of Purchase


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Smartphones Shoppers are Frequent Buyers

31Base: Private smartphone users who use the internet in general and who purchased via internet on their smartphone, Smartphone n=385 Q47: How frequently do you purchase products or services with your smartphone?

51%make mobile purchasesat least once a month


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Mobile Commerce willContinue to Grow

32Base: Private smartphone users who use the internet in general, Smartphone n= 1.000 Q51: Do youexpect making purchases on your smartphone more often in the next 12 months?

expect to make moremobile purchases in thefuture24%


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Barriers to Mobile Commerce Still Exist

33

67%

24%

6%

6%

5%

4%

1%

5%

Would prefer to use a PC/laptop for theseservices

Doesn't feel secure

Payment features were not available (nocredit card)

Too expensive

Payment is too complex

Too complicated

Never heard of these services

Other

Base: Private smartphone users who use the internet in general and who NOT purchased via interneton their smartphone n= 615 Q46:Why have you not made a purchase using your smartphone?


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CONNECT WITH THEIRCUSTOMERS

SMARTPHONESHELP ADVERTISERS


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Offline Ad Exposure Leads to Mobile Search

35Base: Private smartphone users who use the internet in general and who at least rarely notice advertising, n= 904Q43a: How often do you use your smartphone to do a search in response to an ad you have seen in a magazine, on a poster, on TV or in a shop/business?

Ad location

TV54%

Shop/business51%

Magazines

43%Posters / Billboards

35%

62%

have performeda mobile search after

seeing an ad


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Google Confidential and ProprietaryBase: Private smartphone users who use the internet in general and who are searching via search engine, Smartphone n= 981Q32: How many search result pages do you look at, when conducting a search with your ... ?

47%only look at the first pageof results whenconducting a search on

their smartphone

The First Page of MobileSearch Results is Key

36

1 2 3 4 5 6 7 8 Next


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90%of smartphone usersnotice mobile ads

Base: Private smartphone users who use the internet in general, Smartphone n= 1.000Q41: How often do you notice advertising when you are using the browser or an app on your

smartphone? (Ever)


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Mobile Ads Make an Impression

38Base: Private smartphone users who use the internet in general and who at least rarely notice advertising n= 904Q42: Where have you noticed advertising when using your smartphone?

48%

47%

45%

16%

13%

10%

While on a website

While using a searchengine

While in an app

While on a videowebsite

While watchinga video

While on a retailerwebsite

While in app

45%

White watchinga video

13%

While on awebsite

48%

While using asearch engine47%

Where Mobile Ads Are Noticed


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BACKGROUND


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Research Methodology

In partnership with Ipsos MediaCT, we interviewed a total of 1,000Japanese online adults (18-64 years of age) who identifiedthemselves as using a smartphone to access the Internet

The distribution is according to a national representativeCATI Study

A smartphone is defined as a mobile phone offering advancedcapabilities, often with PC-like functionality or ability todownload apps

Respondents were asked a variety of questions around deviceusage, mobile search, video, social, web and commerce behaviorand mobile advertising

Interviews were conducted in Q1 2012

40


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Demographics

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Area

43%

57%

15%

29%

34%

12%

10%

36%

44%

19%

44%

9%

43%

4%

Female

Male

18-24 Years

25-34 Years

35-44 Years

45-54 Years

55+ Years

Urban

Suburban

Rural

Single

Living with partner

Married

Divorce/separated

Age

Gender

MaritalStatus

Base: Private smartphone users who use the Internet in general, wave 2, n= 1.000S2. Please indicate your gender. / S1. What is your age? / D3. In what area do you live? D2. What is your marital status?


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Demographics

2%

35%

11%

51%

63%

8%

12%

17%

8%

9%

13%

12%9%

15%

10%

10%

13%

Elementary or Junior high school

High school

Junior college or higher profess. school

College university or graduate course

Full time employee

Self-employed

Student

Unemployed / Homemaker

Less than 2 M JPY

2 - 3 M JPY

3 - 4 M JPY

4 - 5 M JPY

5 - 6 JPY

6 - 8 M JPY

8 - 10 M JPY

More than 10 M JPY

Don't know/ no answer

EmploymentStatus

Education

Base: Private smartphone users who use the Internet in general, wave 2, n= 1.000

Income

Technology Landscape in Japan

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