MOBILITY

Exploring the future potential

of mobile technology, devices,
content and marketing
 MOBILITY THE CONDITIONS ARE RIGHT
FOR A SUBSTANTIAL GROWTH OF
PORTABLE TECHNOLOGY, MOBILE
ADVERTISING AND MARKETING

Consumers in the connected world have access to a massive range
of portable devices regardless of local market economic, social and
cultural conditions. 66% have a portable music or media player, 45%
have a laptop at home or work and 28% have a portable gaming
machine. There is a massive appetite for content on these devices that
is not currently being satisfied. Clearly there is a role for marketers to
create, sponsor and provide access to content and services.
Mobile phones are evolving from voice to data devices
The leading markets are driven by messaging. In Japan just 24% of
mobile usage is phone calls, compared to 65% in the USA.
Mobile phone users are embracing future mobile technologies
Where the technology is available consumers are using it.
Music, films and games are the most valued content
Despite the huge amount being created, UGC is the least popular form
of content to consume.
Professional content producers are not about to be superseded on
future media platforms.
CD and peer-to-peer dwarf legal downloads
Ripping legal CDs to portable devices is the number one source of
content, 38% have done so. This is still ahead of peer-to-peer illegal
downloads, which stands at 36%.
Both exceed paid-for downloads, which is just 16% despite the fact
that music is the number one form of portable content that users
would pay for.

3G phones are the most in demand portable device worldwide
3G is the number one in demand portable technology – 43% want to
adopt. This is ahead of all other platforms, including media players,
portable gaming and laptops.
Portable technology is driving the rise of User-Generated
Content (UGC)
Digital cameras are the most popular portable device after mobiles –
81% of our connected sample have one.
Users value branded and sponsored content
Branded content is the most popular of all advertising formats with
67% finding this acceptable or valuable.
The least popular finding is adverts in the middle of video or podcasts,
just 32% finding this acceptable / valuable.
Opportunity exists in this future media environment to provide
consumers with what they want and drive genuine consumer benefit
by creating, sponsoring or providing access to content.

Camera phones are nearly as popular, 76% have access

Phones are carried 100% of the time, compared to 17% for digital
cameras, meaning that camera phones are driving spontaneous
content creation and are key in the world of User-Generated Content.


 THIS GROWTH IN TECHNOLOGY
Today portable technology is an ingrained part of everyday living The promise remains tantalisingly on the cusp. The ability to access
around the world; the mobile phone is the world’s largest Internet, 2bn increasingly hard-to-reach consumers with personalised content,
computing and communications platform with 2.3bn users; Laptops location-orientated information and branded services in a format that

AND CONTENT HAS FOREVER

have overtaken desktops as the PC of choice; the iPod has sold
100m units and a whole wealth of mobile media technologies such as
portable video players are on the cusp of going mass market.
suits their lives is one that continues to prove utterly compelling.
To fully understand consumer demand and assess the real potential,
Universal McCann implemented the world’s largest survey into portable

CHANGED THE SOCIETY AND

The emergence of these portable platforms has happened in tandem technology and mobile media platforms as part of its ongoing global
with the massive growth in social media, creating a proliferation of digital research programme. The survey covered three key strands
content such as video clips, digital photos, games, podcasts and of portable technology and mobile media; platforms, content and
vodcasts that can be downloaded or transferred to portable devices advertising and marketing, investigating usage, growth potential,
and consumed in an out-of-home environment.
This growth in portable technology and content has changed
the society and culture we live in. It has transformed our lives to
attitudes and demand.
The research covered 21 markets from five continents and was
completed in July 2007, providing a truly unique global perspective.
CULTURE WE LIVE IN
become increasingly informal, flexible and transient creating massive
dependency on this technology. However portable technology
marketing, advertising and content still remain in their infancy, always
promising “this year’s thing to watch” but never delivering. Investment
today is still focused firmly on text-to-win promotions and
SMS mobile promotions.

PORTABLE ADVERTISING,
PORTABLE MARKETING
MEDIA

INTRODUCTION
CONTENT AND MEDIA
DEVICES

4
 RESEARCH
MARKETS TARGETED IN RESEARCH

The research was conducted via self completion online surveys by This made the total sample just over 9,500. All the sample groups were
9,500 16-54 “Connected World” individuals i.e Internet connected nationally representative to the mobile, internet-connected universe
mobile phone users. Although there are hundreds of millions of mobile (Figure 1). In many of the more emerging markets this defaults to an
users without access to the Internet, it was felt that the dynamic urban sample, as this is where these consumers exist.
between mobile and online was essential to access the full range of
This selection of countries provided a universe of 690m, 30% of the
content and understand the dynamic between portable technology and
global mobile universe. The mix of saturated, maturing and emerging
the Internet. Russia
markets allowed for in-depth and robust assessment of the current France,
Up to 500 people were sampled in each of the following markets: and future global position. Germany, South Korea
France, Germany, Italy, Spain, UK, Greece, Russia, USA, Mexico, Greece, Italy,
USA Japan
Brazil, India, China, South Korea, Japan, Pakistan, India, Thailand,
Spain, UK, Pakistan China
Malaysia, Singapore, Philippines, Taiwan and Australia.
Mexico India Taiwan

Philippines
Figure 1: Market universe: 690m
Thailand
Universe Size Malaysia
180 Brazil
Singapore
158.3
160
140
120
126 . Australia
100
80
64.7
60
44.4
28.6 29.7 30.5 38
40 25.3 25.6
11.4 11.5 11.6 12.2 17 17.6 18.2
20 2 3.2 7 7.6
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Source: Internet World Stats, TGI Europa, Simmons & Local market surveys

6
 WHICH PORTABLE PLATFORMS
ARE THE MOST POPULAR? Figure 2: Device ownership global average

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Portable devices have proliferated over the past few years - Figure 2
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% Ownership
shows the global average for device penetration amongst our sample 70
of mobile and internet connected individuals. Due to the nature of 60
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of devices is particularly relevant as it demonstrates the entry points 30
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PLATFORMS
the iPod. At a global level this can be attributed to the success of
low-cost flash players in the Asian markets. It is also clear how
audio-only platforms lead video ones. This is a clear implication on
the distribution of portable content. Figure 3: Multiple device ownership global average

Laptops are now more likely to be wireless and at 31% are an

established platform for out-of-home and significantly lead portable 1 (Just a
mobile)

THE PORTABLE DEVICE THAT LEADS THE gaming devices. 2

9% 3
At 31% 3G compares favourably to many other portable media
WAY IS THE DIGITAL CAMERA, WITH 75% 29% 4
technologies amongst our mobility audience. Dedicated 5+
mobile email devices such as the Blackberry have yet to make an 18%
CURRENTLY OWNING ONE. impact with just 6% claiming to use them, showing that they are still
firmly business devices.
Unsurprisingly multiple device ownership is the norm (Figure 3).
A massive 25% have five or more of these devices in their ownership.
19% 25%

8 9
 WHAT MARKETS DEMAND FOR
LEAD ADOPTION? CONVERGENT DEVICES

When looking at adoption by market (Figure 4) the main surprise Figure 4: Device penetration by market
is the extent of ownership in supposedly ‘less developed’ markets.
Portable media player Laptop
This reflects the nature of the connected audience and shows how
90
involved and active this segment of Internet-connected mobile users 80
are, regardless of a low overall penetration within their country. If you 70
Convergence in portable technology is a theme that rises again and Figure 5: Percentage Completely Agree with the statement “I like the idea of having one
again. The huge number of consumers with multiple devices (Figure 5) portable device to fulfill all my needs”
Portable Gaming Device
shows that it is something that is yet to catch on. But despite this there
Mexico
is a push to provide us with devices that deliver everything – mobile, Malaysia
gaming, music, video and applications all in one. Apple’s launch of Brazil

% Ownership
India
are connected you are connected, where ever you are in the world. 60 the iPhone and the hype that followed epitomises this. Also the growth Philippines
Spain
This underlines the divide that exists in emerging markets between 50 of mobiles with music facilities as previously demonstrated shows the Greece
40 China
the online and the offline audience. The online audience is as creep of convergent devices. It is also particularly pertinent considering Pakistan
30 Russia
technologically involved as developed markets. the large number of portable devices that the mobility audience own. Italy
20 Singapore
Looking at specific devices it is clear that the portable media player 10 Thailand
Australia
0
(music, video and combined players) is the main portable technology ce
Figure 5 shows the percentage that agree with the statement “I like France

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levels of usage in emerging markets can be linked to the popularity is a clear trend. The top markets driving the demand for convergence US
Taiwan
of low cost flash based players such as iRiver and Creativelabs. are the emerging markets. Mexico leads with a massive 79% strongly Japan
Laptops are the second biggest platform, a real proof of its increasing attracted to the concept of convergent devices. The next seven markets
0 20 40 60 80
dominance over desktops in all markets. Portable gaming in are Malaysia, Brazil, India, and the Philippines. The markets where
many cases is more popular among the connected audience in the convergence is least popular are all affluent. The lowest figure is % All Agree
the emerging markets than the connected audience in supposedly Japan with 27%, Taiwan with 29% and the US with 31%. Convergence
‘developed markets’. is clearly driven less by aspiration and more by financial necessity.
There is no real need for a convergent product in the US, Germany
and Japan – multiple dedicated devices is affordable and aspirational.

Convergence – “The concept of a technological device delivering

more than one application or purpose. For instance a mobile phone
may also play music or stream live TV. Devices have become
increasingly convergent as technology has miniaturised and
competition between devices manufacturers has increased.”
10 11
 BOND WITH PORTABLE THE ROLE OF PORTABLE
TECHNOLOGY TECHNOLOGIES

To understand the relationship respondents have with their portable
technologies we asked them to declare which ones were always taken
out-of-home and which ones were occasional used. The results (figure
6) are very clear; the mobile phone is the key device and has the
strongest relationship with the user. Virtually 100% of our universe take
the phone everywhere they go. The next most important out-of-home
technology is the portable music and video player, with more than 40%
of owners always taking out-of-home.
The relatively low scores for portable gaming and laptops underline
their importance as in-home devices, while the low score for digital
cameras shows that for the vast majority usage is still a pre-planned
and special occasion use. These findings raise the prospect that
camera phones will fill the void of immediacy and impulse for
content creation.
To build a deep understanding of what devices suit what needstates
and occasions, the respondents were asked to state what device they
typically used in certain occasions. Figures 7 - 10 show the top usage
occasions for portable devices.
Mobile Phones usage is clearly defined by travelling, four of the top
six are forms of transport, trains, underground, bus, walking and the
top quite surprisingly is in a car. The two out-of-home occasions when
mobiles are most used is at work and while shopping. The combination
of these needstates shows how crucial the mobile is to our out-of-home
lives. It is also interesting that the commonly held stigma that people
do not want to use mobile phones on public transport does not apply.
These figures reflect the huge growth of data and messaging.
Figure 7: Where do you use your mobile phone? Global Average
The laptop in contrast, is all about in-home usage. Unsurprisingly it
is driven by working and studying but the extent to which users are
combining laptop usage with in-home media consumption shows
how big dual media consumption is for online and TV and online and
radio. This is confirmation of the much talked about concept of ‘media
meshing’ i.e consuming more than one media at the same time.
Portable media players and portable gaming share the same
needstates – it is all about travel, with a mix of short commuting and
long-haul travel. It is also very interesting to see that these two devices
have also crossed over with in-home media consumption – again
driving the idea of media meshing but in more of an unexpected way.
It is clear from all platforms that portable technology also has a key role
to play in the home.
Figure 8: Where do you use your laptop? Global Average

Mobile Phone Laptop

In a car (passenger) At home while watching TV

Figure 6: Which devices do you take out of home? Global average
Walking At home while listening to the radio

Sometimes Take Shopping

At work
At work
Always Take At home while on the Internet
On a bus
100%
On train / underground On a plane
90%
% Take Out Of Home

80% 58 60 62 64 66 68 70 72
In a car (passenger)
% use
70%
0 5 10 15 20 25 30 35
60% Laptop
% use
50%
40% Figure 9: Where do you use your portable media / music player? Global Average Figure 10: Where do you use your portable gaming device? Global Average
30%
Portable Media / Music Players Portable Gaming Device
20%
10% On train / underground On a plane
0% Walking
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12 % use 13
 FUTURE GROWTH IMPLICATIONS MOBILE PHONE USAGE

Good news for the mobile phone manufacturers and the networks, The extent of portable device ownership is staggering, both in terms The mobile phone is the worlds biggest computing and portable There are however big variations by markets, even among the numbers
43% of the global sample intend to obtain a 3G phone in the future, of penetration across markets and the number of devices that users media platform. It is forecasted that 3.3bn will be connected by 2011* of phone calls and SMS messages sent. Figure 13 shows the share of
promising huge potential (Figure 11). This is followed by video iPods; have. There is clearly a massive demand across the connected world – growth driven by Asia, Africa and Latin America. The developed mobile usage occasions by country. The immediate observation is the
not only good for Apple but an indication that out-of-home video is for these products and the lifestyle they enable. At present the markets have reached or are reaching 100% penetration; extraordinary overall share of SMS, which has extensively eaten into voice usage, but
set to be a major global platform. Wireless laptops come in third, key platforms for marketers and advertisers are centred around growth for a relatively young technology. yet to be impacted by MMS.
confirming the ever growing demand for portable computing. audio, with the mp3 player and the audio only iPod being found
Figure 12 shows the extent to which users have integrated phones into The other striking fact is the extent to which Japanese usage is driven
everywhere. In theory this should be reflected in the content that is
The technologies that lag are varying. The Nintendo DS lags its rival their lives. On average 41% of our global sample makes more than five by data, with 23% of usage made up by Internet usage – by far the
produced today.
Sony PSP, indicating that dedicated gaming devices are not as popular calls a day, while 35% send more than five texts a day; a huge volume highest in the world. Only three markets have phone calls above 60%
as multiple content devices. Non-wireless laptops follow, confirming the However the short-term future is multi-media. 3G phones are the of communication. of usage occasions: USA, Thailand and Taiwan and this will surely
shift in demand to flexible out of home computing. Next come portable number one most in-demand portable product, while the video iPod decline over time.
Internet and MMS frequencies are much lower, but not insignificant.
email devices which show that consumer demand for dedicated email is number two. Two key platforms for the distribution of video.
30% use mobile internet more than once a week and 34% send
is still relatively low thanks to its association with business.
It is also clear how important portable technology is becoming a an MMS more than once a week – encouraging opportunities for
source of User-Generated Content, as well as a media platform. The multimedia content.
digital camera is the number one portable technology device in
*MIC (Market Intelligence Center)
its own right and a key link between the mobile world and social
Figure 11: Which devices are you interested in purchasing in the future? Global Average media platforms. Figure 12: Frequency of using your phone by method of communication - global average Figure 13: Percentage share of total usage occasions by method of
communication - global average
Global Average Nonetheless the key portable device is to be the mobile phone.
Phone Calls Text (SMS) Text (MMS) (Internet)
Firstly it i s ubiquitous, secondly there is massive demand for 3G
3G enabled mobile phone
USA
Ipod (video capability) guaranteeing its role as future multi-media device and thirdly its UK
Used the Internet
Laptop with wireless (e.g Centrino) carried out-of-home on 100% of occasions. 5+ times a day Thailand
Mobile Phone Taiwan
2 – 4 times a day
Digital Camera Send a picture (MMS) Spain
Once a day South Korea
Other portable media player message
2 – 3 times a week Singapore
PDA (personnel digital assistant)
Once a Week Russia
Other MP3 / digital audio player Send a text (SMS)
message Less often Philippines
Ipod (audio only)
Have used once Pakistan
PSP (Playstation portable)
Never Mexico
Portable email device (e.g Blackberry)
Make a phone call Malaysia
Laptop without wireless/wifi Japan
Nintendo DS Italy
0% 50% 100% India
0 10 20 30 40 50 Greece
% frequency of communication
Germany
% plan to purchase
France
China
Brazil
Australia
Global Average

0% 20% 40% 60% 80% 100%

14 15
 MOBILE PHONE FEATURES USAGE OF NEXT GENERATION
MOBILE SERVICES

Multi-media handsets are now the norm amongst our connected Only two markets fail to reach the 60% penetration threshold, which is The real test of impact is not feature penetration but users’ willingness Figure 17: Usage of mobile features (last 6 months) – global average
universe. Figure 14 shows feature penetration across the sample. The interestingly India and the US - two markets at the opposite ends of the to adopt and use such technology. Figure 17 shows that the ubiquitous
Fig17
enablers of content creation and media are now all mainstream; e.g. economic development scale. text message remains the most popular mobile application. However it Send a text (SMS) message
Taken a photo
colour screens, cameras, web browsing and MMS are all around the is closely followed by multimedia content creation and sharing. Taking Send a picture (MMS) message
Comparing this to the penetration of music players, a slightly different Sent a photo to someone I know
80% penetration mark. However convergence features have had photos, MMS, taking videos and sending photos are the next four. This
Fig17 Recorded a video
picture emerges. There are a larger number of developed mobile Send a text (SMS) message
Send a file to another phone via Bluetooth
mixed performance. Music players have reached 50% penetration, level of penetration shows the extent to which the mobile phone has Taken a photo
Use the internet pages provided by mobile company
markets further down the table. The relatively strong performance of Send a picture (MMS) message
Download a game
but more emerging technologies such as Live TV, video calling and evolved from just being a communications device, while indicating its Sent a photo to someone I know
developing markets reflects the financial necessity of convergence – Sent an email
Recorded a video
payment technologies have yet to make significant penetration, all value in User-Generated Content. Sent a photo to a website
Send a file to another phone via Bluetooth
the idea of multiple portable devices is more of a luxury. Not a problem Downloaded a video clip
Use the internet pages provided by mobile company
falling below 20%. Search for directions
Download a game
in markets such as Japan, the US and France where dedicated There is also a creep of Internet services; using mobile web portals, Made a video call
Sent an email
Electronically paid for goods/ services
There are however significant differences when you look at the market business and multiple handsets are more likely to exist. mobile search, downloading content and sending emails have gained Sent a photo to a website
Used office software e.g Word Processor etc.
Downloaded a video clip
Watch Live TV
splits. Figures 15 and 16 show the claimed penetration of camera significant levels of usage. However unsurprisingly some more cutting Search for directions
Made a video call
phones and music players – two key technologies for creating content edge technologies have yet to approach critical mass, with emerging Electronically paid for goods/ services 0 20 40 60 80 100
Used office software e.g Word Processor etc.
and enabling media fig 14on a mobile device. The markets leading the concepts such as Live TV, electronic payment and video calls still Watch Live TV % Ever Use (last 6 months)
charge are a mix of developed Asian markets and European; South niche. 0 20 40 60 80 100
Global Average
Korea, Greece, Japan, Singapore and the UK make up the top five.
Colour Screen
Picture messages (MMS)
Figure 18 looks at usage in relationship to access and it is clear that % Ever Use (last 6 months)
Figure 14: Mobile phone
fig 14 Internet browsing (WAP / GPRS)
Camera
feature penetration - global average Figure 15: Penetration of cameras on Figure 16: Penetration of music the points of access to create content lead active usage. Nearly 100% Camera
Figure 18: Conversion – the numbers with access who have used – global average
Video Camera
Emails
Video Camera
mobile phones players on mobile phones of those with a camera or video camera have used it. Since these are
Fig18
Electronic payment system
Bluetooth
Music Player
so easy to use, this is not a surprise. What is a surprise is the extent to Camera
Global Average Camera fig 16 Music Player Picture messages (MMS)
FM Radio
Video Calling which very emerging applications such as electronic payment, video Video Camera
Colour Screen South Korea China Fig18 Video Calling
Picture messages (MMS)
Facility to watch live TV
Electronic payment system Greece Greece calling and watching Live TV have such high levels of take up. This Electronic payment system
Facility to watch live TV
Camera 0 20 40 60 80 100 Japan
South Korea
UK
is very encouraging for mobile operators as they continue to expand Picture messages (MMS)
Emails
Internet browsing (WAP / GPRS) % penetration UK Italy their access to new technologies although it is very unlikely that most Video Calling
Internet browsing (WAP / GPRS)
Emails Italy Global Average
Video Camera Mexico Spain of these users will go beyond experimentation to become the regular Facility to watch live TV
0% 20% 40% 60% 80% 100%
Bluetooth China
Mexico
users that operators seek. Emails
Music Player Brazil % of those with access who use (Conversion)
Spain
Camera Germany
Internet browsing (WAP / GPRS)
FM Radio
fig 15 Global Average Russia However Internet browsing and email lag despite integration on all new
Video Calling 0% 20% 40% 60% 80% 100%
France
South Korea
India
user interfaces and heavy promotions from the handset manufacturers
Facility to watch live TV
Australia
Australia % of those with access who use (Conversion)
Electronic payment system
Germany Greece France and the operators.
Japan
0 20 40 60 80 100 Russia
Japan US
Brazil
% penetration India UK
0 20 40 60 80
% penetration
US Italy
0 10 20 30 40 50 60 70 80 90 100
Mexico % penetration
China
16
Spain
 WHICH MARKETS LEAD EMERGING MOBILE ADOPTION IMPLICATIONS
TECHNOLOGIES?

Mobile search Sending photos to websites

Mobile search has long been touted as the application which will finally The integration of mobile phones and the Internet promises to unleash Figure 22 looks at the average levels of adoption by market for all of There are clear global patterns in mobile usage and development. The
drive substantial take up of mobile Internet and also provide the link the tidal wave of User-Generated Content. The growth of camera and these technologies and is very revealing in terms of the extent to which most sophisticated market is clearly Japan. Not only did they top the
between online and the real world. However usage is still limited in video phones means that there is a constant opportunity for citizen mobile phones have woven themselves into the fabric of that society. mobile usage index, they are the largest users of mobile Internet and
all markets except Japan (Figure 19), where 49% have used mobile reporters. The increasing usage of mobile phone pictures and videos The countries that lead are Japan, Greece, Italy, China, South Korea also top in the real emerging technologies such as electronic payments
search. Only four other markets fall above the average; Greece, China in TV news reporting is proof of this. However outside of Asia its impact and the UK – markets that have all enthusiastically embraced the and search. On a broader scale Northern Asia, Mediterranean Europe
and the UK. has been limited. Figure 21 shows how dominant the Asian markets phone beyond its capacity to make calls. and the UK are leading consumer adoption of mobile and driving its
are, in particularly Japan, China and South Korea which are all at the future, while in contrast France, Germany and in particularly the US
Electronic payment for goods and services The position of Japan at the top of the index confirms all the
forefront of social media usage. European markets, normally at the lag. These are useful differences for marketers, mobile operators and
Electronic payment by mobile could revolutionise commerce. There are preconceptions and anecdotal evidence that states Japan’s
forefront, lag in this connection of mobile and online. content providers to prioritise which markets are worth investing in.
a number of ways that electronic payment can be activated by mobile; pre-eminence in mobile.
either wirelessly with a dedicated point of sale device, by text code or From a global perspective the extent to which mobile owners use
It is interesting that the US ranks last, again substantiating perceptions
over a secure mobile internet portal. But only Japan shows significant their mobiles is quite extraordinary and the shift away from voice to
that the US has been slower than other markets to embrace mobile
adoption, with a stunning 81% claiming to use it. The next market is messaging and more slowly to mobile internet is clear. The leading
phones in a sophisticated manner.
South Korea with just 19%. mobile markets are the most data and messaging orientated and the
others will surely follow. Overall though mobile internet is still the least
adopted technology where available. Just 54% of those with access
Figure 19: Ever used mobile search Figure 20: Ever paid using mobile electronic payment systems Figure 21: Ever sent a photo to a website Figure 22: Mobile usage index (average usage across all applications and services tested) to Internet on their phone have used it and there clearly is still much
to do to encourage usage and should be taken into consideration for
Electronically paid for Sent a photo to
goods/ services a website those developing mobile internet services.
Japan
Japan Japan Japan Greece
The mobile phone is the most important tool for creating User-
Greece South Korea China
Italy Generated Content. There is higher access to camera phones than
China
South Korea digital cameras and usage where available is virtually 100%. But the
China China South Korea
UK important point is that the mobile is available all of the time. Where the
Singapore
UK Brazil Mexico Philippines impulsive need to create content via photos or videos is relevant the
Pakistan
France Greece Greece
Mexico
phone will fill that gap. Mobile pictures, videos and MMS can clearly
Italy Russia India
Spain be worked into all marketing communications where relevant.
Malaysia
Global Average
South Korea Spain Italy
India
The mobile also has a multi-media and divergent future. The real
Spain India France
Thailand emerging technologies that have low overall reach due to technology
Australia
Russia constraints such as electronic payment, video calling and Live TV
Mexico US Brazil
France have been adopted with huge enthusiasm by those who can. A very
India UK US Brazil
Germany encouraging fact for mobile operators, mobile phone manufacturers
Taiwan
0 20 40 0 60 60 0 20 40 60 80 100 100 0 20 40 60 80 100 and marketers the world over.
US
% Ever Done (last 6 months % Ever Done (last 6 months) % Ever Done (last 6 months)
20 25 30 35 40 45 50

18 19
 WHAT CONTENT DO USERS WANT
ON THEIR DEVICES?

To understand what types of content platforms fit with portable

devices (Figure 23) we asked respondents to state which types of
entertainment or information would interest them on what platform.
There is a clear pattern by type of content. Music holds most interest
on video and music players, with the mobile phone very close behind.
This is a visual demonstration of the mobile phone companies success
at driving convergence through music. Laptops also figure highly
thanks to people streaming or playing music files while they work or
surf the Internet.

The most popular platform for TV clips and films is the laptop
suggesting that most video content is not shifted between PC and
portable player. What is interesting again is the mobile is up there with

CONTENT
the portable media player. Also interesting is the similarities between

Figure 23: Content platform demands by device

Digital video & music player Portable gaming device Laptop Mobile Phone TV Clips, Films and Live TV in terms of interest regardless of platform.
80 The concept of Live TV over PC or phone seems to have resonated with
70 consumers the world over.
60 The surprise with gaming is that portable gaming machines were not
50 the main platform for gaming, with laptops and mobiles leading the
40 way. This is indicative of most peoples casual demands for gaming
– which the mobile and the laptop via the Internet do so well.
30

20 The Internet is unsurprisingly most popular on a laptop, but the mobile

10
phone is also key and holds interest for 46% of our global respondents.
This backs up early figures on mobile Internet which shows that the
0
Music TV Clips Films Live TV Games Internet consumer demand is there.

20
 CONTENT BY USAGE OCCASION SOURCING AND
TRANSFERRING CONTENT

It was also interesting to see what mobile platform content fits
what usage occasion (Figure 24). This is key to understanding how
traditional media can link in with new platforms and also to understand
what type of content to produce for what occasion. Respondents
were asked to state when they would be most likely to consume that
particular type of content on a portable device.
It is clear that music dominates all usage occasions and is consumed
everywhere on a portable device, from travel, to work and even
shopping.
The next most popular type of content is the Internet. What is
surprising is that there is demand across the board in-home, out-of-
home and at work.
Figure 24: Content platform used by usage occasion - global average
Looking at richer more involved forms of media, such as video, films,
Live TV and gaming the demand is lower, but is higher while travelling
in a car or bus versus other forms of transport, which is clearly a
privacy issue.
Another interesting point on gaming – is that there is consumer
demand to have it at home while working / studying but not in the
office. The relative scores for consuming portable content while at
home watching TV demonstrates that portable media is not just for
out-of-home. Also it underlines how important duel media consumption
and media meshing is. The relationship between traditional media
consumption and portable content is an important dynamic.
The journey consumers take to source content for portable devices
splits into two; the sourcing of content and the transferring of content.
By accessing the absolute number who had done this across various
platforms, it allowed us to track demand for paid-for content versus
free content while also assessing the possibilities for media owners
and advertisers.
As demonstrated in Figure 25 traditional fixed media formats still rule
when sourcing content which is great news for the music industry.
However while file sharing sites are catching fast, underlining the fact
that paid for downloads has some way to go before they dislodge the
CD and illegal methods. It also shows that consumers favour flexible
non-Digital Rights Media (DRM) media regardless of paying for it
or not.
Films however are led by illegal file sharing and then DVDs – this
reflects two facts, one that Peer-to-Peer (P-2-P) gives users films when
they want them and also the complexities of uploading DVD content
versus music. Films are also more popular than TV Shows on P-2-P,
because TV Shows in the main do not have the same global appeal
and do not have such staggered and controlled distribution.
In the main, paying for digital media is still relatively unpopular – music
is most popular, but TV and Films have yet to make an impact. Paying
à-la-carte is more sought-after than subscription payment methods.
Transferring of content is very prominent it (Figure 26), shows that there
is a large level of interaction between the PC, Internet and portable
technology and also that much of what people move to portable
devices is user-generated. More than 60% are moving pictures from
their digital camera to their PC, but surprisingly mobile phones are
closely behind. Transferring videos from the same platforms to a PC is
also very popular – facts that underline how important these devices
are in the world of UGC. The most popular movement from PC to
portable player is music, followed by photos and then video, which
considering the complexities, an amazing 36% have done so.

Music TV Clips Films Live TV Games Internet Figure 25: Sources of content for portable devices - global average Figure 26: Transferring content to portable devices - global average

At work Buy an official CD and upload

the music to your PC Transfer photos from a digital
In a car (passenger) Download music from a peer to camera to a PC
peer file sharing site
Borrow an official CD and Transfer music from your PC to
While exercising upload the music to your PC a portable player
Download films from p2p file
Shopping sharing site Transfer photos from a mobile
phone to a PC
Buy a DVD and upload it to your PC
Walking Buy a copied CD and upload Transfer photos from your PC
the music to your PC to a portable player
On a plane Borrow an official DVD from a
friend and upload it to your PC Transfer videos from a digital
camera to a PC
On a bus Pay for music downloads
Download TV shows from a p2p Transfer videos from a mobile
Underground file sharing site phone to a PC
Pay a monthly subscription to
download / stream music Transfer videos / TV / films from
At home while watching TV your PC to a portable player
Pay for film downloads
Working/studying at home Pay for TV show downloads 0 10 20 30 40 50 60 70
0 10 20 30 40 50 60 70 80 % Ever Done (last 6 months)
0 5 10 15 20 25 30 35 40
% content platforms used by usage occasion % Ever Done (last 6 months)

22 23
 LEGAL V ILLEGAL SOURCES TOPICS OF CONTENT

File sharing and the illegal copying of content, in particular music except South Korea the use of P2P sites to obtain music is higher The topics of content that our sample demand are driven by Figure 30: Top 3 topics of content interested in by market
but increasingly TV and films has been a very hot topic. The RIAA than the percentage who had paid for music downloads – a point that informational and news needs (Figure 30). Travel, general news
(Recording Industry Association of America) has been suing anyone demonstrates the global nature of content piracy. Interestingly the and entertainment lead the way. Services such as cinema listings, 1 2 3

they can find but has been unable to stop the growth of peer-to-peer markets leading piracy are China, Mexico, Spain, Russia, Malaysia weather, route planning and shopping have lower levels of demand. Australia Entertainment News Weather
file sharing, which now makes up a huge percentage of Internet traffic. and Brazil. Even more revealing is to see the markets that top the P2P Somewhat surprisingly user-generated clips fall bottom, which seems Brazil Entertainment News Technology
Although several reports indicate that the legal downloads market is chart but are bottom of the paid-for chart – namely Malaysia, Brazil to fit contrary to most mobile operators’ attempts to drive mobile portal
China Travel Cinema News
increasing it is still dwarfed by the volume of illegal downloading. and Spain, indicating demand for content but little willingness to pay. usage through UGC mechanics such as Orange Mobile “Hot or not”
A couple of markets rank lowly on both sides, Germany and Pakistan and the popularity of UGC podcasts on services such as iTunes. France News Route Planning Cinema
Our research backs this up with 18% paying for music (Figure 27)
showing little demand for digitised content. Germany News Route Planning Entertainment
but 36% having downloaded via P2P (Figure 28). In all markets Looking at the top three topics for mobile devices by market (Figure
29) it is clear that there are broad similarities. Entertainment, News, Greece Entertainment Technology Holidays
Figure 27: Purchased digital music online Figure 28: Used a Peer-to-Peer service to download music Technology and Weather all figure strongly. But there are two distinct Philippines Entertainment Technology Travel
groups. Firstly there are the markets that are driven by functional
India Route Planning News Technology
South Korea China services e.g. travel, news, cinema, weather and route planning – these
markets include China, Germany, France, India, Russia, South Italy Travel Holidays News
Thailand Mexico
UK Spain Korea, Taiwan and the US. Then there are the rest which are more Japan Entertainment Technology News
China Russia entertainment driven.
Malaysia Malaysia Technology Entertainment News
Australia
Russia Brazil Mexico Entertainment Technology News
Japan South Korea
India Greece Figure 29: Topics of content interested in – global average Pakistan Entertainment Technology News
Global Average Italy
Russia Weather News Entertainment
Phillipines Global Average
US Australia Travel Singapore Entertainment Holidays Travel
France India News
Entertainment South Korea
korea Cinema News Weather
Greece UK
Holidays
Taiwan France Spain Entertainment News Travel
Technology
Mexico Phillipines Cinema
Singapore Pakistan Weather
Taiwan Travel Holidays Cinema
Italy Singapore Music news / reviews
Thailand Entertainment Travel News
Taiwan Route Planning
Pakistan
Sports UK Entertainment News Music news / reviews
Malaysia US
Business
Brazil Japan Shopping US Weather News Entertainment
Spain Thailand Celebrities
Germany Germany Video Clips created
by other users
0 20 40 60 80 0 20 40 60 80 0 0.5 1 1.5 2
Scale of 1 to 5 where 5 equals very interested and 1
% Ever Done (last 6 months) % Ever Done (last 6 months) equals not at all interested

24
 TOPICS OF CONTENT BY SEGMENT WHAT WOULD CONSUMERS PAY FOR?

Figures 31 to 34 show the top five types of content that are of most
interest by key demographic segments. The major consistencies are
that the content remains informational and largely functional regardless
of segment with news, travel and entertainment information figuring
highly. There is no place for celebrities, route planning or User-
Generated Content in any of the segments.
There are also some subtle differences that pull the segments apart –
albeit along fairly stereotypical lines. Men are interested in technology
Figure 31: Content very interested in – male sample
Male
News
and sports, while women have ranked entertainment top. The
differences by age groups are less pronounced although the younger
segments are more entertainment-orientated. Older segments are more
tasked based with weather and holiday information figuring in the top
five, while news is number one.
Figure 32: Content very interested in – female sample
Female
Entertainment
Monetising portable content is obviously the ultimate goal for mobile
networks, the portable platform content providers and existing non-mobile
media owners is clearly to monetise portable content. The size of the user
base suggests that there is much revenue to make, however it is clear
that overall demand is still on the low side. The research asked users to
score from 1 – 5 how willing they are to pay for content and just three
category types passed the average (Figure 35). All three were rich and
permanent (i.e. not intended for single use) types of media; Music, Films
and Games.
The next two categories that people would be likely to pay
for are location services and directions, a surprisingly high
ranking for one off service, but one that demonstrates
Local search for products and services (e.g nearest restaurant)
there is value in mobile services. Live TV, Radio and video
that has traditionally driven media revenues on most platforms. It has
also been the focus for mobile companies within their portals. This
suggests that if untargeted it may not be the best content to monetise.
As with interest in types of content – user-generated video comes bottom
of the list. This clearly indicates that quality and professionalism of
production is one of the main drivers to monetisation. A reassuring fact
for professional media everywhere.
Figure 35: Content willing to pay for – global average
Music downloads
Films
Game
Travel directions / times
Music videos

Technology Travel clips all fall in the lower half, a long way behind their rich News articles
Price comparison services of products you find in the high street
media counterparts of music and film. This suggests their Live TV on a mobile
Entertainment News association with free to access traditional media harms their Video clips / TV shows
Radio / audio shows
Cinema Cinema
ability to drive paid-for revenue on mobile platforms. Consumer reviews of products and services
A big surprise is the very low ranking of sports highlights Sports Highlights
Sports news articles / results
Sports Holiday and news and results considering that sports is something Video clips created by other users / consumers
40 45 50 55 60 65 70 40 45 50 55 60 65 70
0 0.5 1 1.5 2 2.5 3
% Very Interested % Very Interested
Scale of 1 to 5 where 5 equals very
Figure 33: Content very interested in – under 34s Figure 34: Content very interested in – over 34s
interested and 1 equals not at all interested

-34 35+
Entertainment News IMPLICATIONS
News Weather These results underline the fact that demand for content is massive, but functional and informational, but the content they are willing to pay for
Cinema Travel what is being provided is not fulfilling demand. The number one source is rich entertainment. These results also show important the mobile
of content is still to rip a CD followed up peer to peer sources. This shows phone is as a cross media platform, being more popular for gaming than
Technology Entertainment that consumers do not want tightly controlled DRM heavy digital media. games machines and the second most popular for Internet, music and
Holidays They want to be able to use it as they want regardless of paying for it, both TV and video formats. It may become the device in emerging markets
Travel
a challenge for rights owners to open up their content on digital platforms where finances demand one, however low demand for convergence in
40 45 50 55 60 65 70 40 45 50 55 60 65 70
and also an opportunity for advertisers to provide free top use content developed markets, mean it will always be a supplementary device, be it
% Very Interested % Very Interested to consumers. There is a challenge in wider multi-media monetisation. one that is always present.
The topics content that most users want on a regular basis are largely
26 27
 ADVERTISING AND MARKETING

Portable device and in particular mobile marketing and advertising has The highest levels of value and acceptability were for the formats that
long been hyped as the next big thing. Every year is touted as the year create clear consumer benefit and ones that are based on “opt in” for
it will happen. But marketing on these devices remains limited. Mobile example outdoor bluetooth formats both on transport and
phones are dominated by SMS promotions, while display, location outdoor adverts.
based, bluetooth and rich media advertising still remains very much in
Figure 37, which looks at portable media player formats, demonstrates
the nascent stage. Frequently held back by technology issues, lack of
that the rules of advertising on traditional media still apply. The most
advertiser interest and concerns over consumer receptiveness. Other
interruptive and invasive formats that appear in the middle of clips or
platforms such as video players and portable gaming machines have
come in the form of paid for recommendations are the least acceptable
opened up new possibilities for new kinds advertising, sponsorship and
to consumers. As the format becomes less interruptive for example
branded content in a plethora of new media formats such as podcasts,
sponsorship and branded content the more acceptable it is.
videocasts, video clips, web services and gaming. However, as with
mobile, it is still much at the experimental stage. This distinction from consumers highlights the opportunity for
advertisers and marketers in this space. There is far more flexibility
Figure 36, which looks at mobile phone formats confirms what many
and opportunity than found in traditional media, so the opportunity
have thought. Consumers are least receptive to the display advertising
to leverage paid for communications in formats that create consumer
that many are keen to develop. TV advertising on a mobile is seen as the
benefit and drive engagement, should be embraced.
most irritating, followed by display adverts on mobile internet pages.

Figure 36: Opinion on mobile phone advertising formats Figure 37: Opinion on portable device advertising formats

Irritating Acceptable Valuable to me Irritating Acceptable Valuable to me

Ads on public transport that Radio/audio shows (Podcasts) sponsored

ADVERTISING
send info to mobile if opt by advertisers

Outdoor adverts/ posters that Video clips/shows that are sponsored

send info to mobile if opt to by advertisers

Sponsored search results on a Radio/audio shows (Podcasts) created

mobile phone search by advertisers

Video clips/shows that are created

Adverts on mobile internet pages

& MARKETING
by advertisers
Adverts that appear at the beginning of
TV adverts on a mobile phone
video clips / shows

0% 20% 40% 60% 80% 100% Brand recommendations from the presenters
of podcasts

% Agree Adverts that appear in the middle of

video clips / shows

0% 20% 40% 60% 80% 100%

% Agree
28 29
 RECEPTIVENESS OF ADVERTISER FUNDED CONTENT
DIFFERENT MARKETS

Although opinions between different formats were very uniform Figure 38: Advertising Acceptiveness Index – scores by market Portable technologies and mobile open up a huge range of
Figure 39: Content that consumers would most like to receive free of charge from advertisers
between markets, there are significant differences between the possibilities for advertisers and marketers to produce and
overall levels of receptivity. Figure 38 represents an index based on distribute content. Recent examples have included Coca-
the average level of value across all formats, both mobile and wider Advertising Accepiveness Index Cola with iTunes and BMW with videocasts, this in the past Global Average
portable technology platforms that allow you to compare markets and Mexico
China
has been complicated and expensive due to the tightly Music downloads
SMS (txt msg) that entitle free entry to an event
see where the real opportunities and challenges are. Thailand
Philippines controlled distribution channels of broadcast radio and TV Films
Malaysia SMS (text msg) that entitles you to prod discount
Brazil and the difficulties of operating in multiple markets. Ad Music videos
The clearest observation is the significantly lower levels of acceptability India Live TV on a mobile
Spain funded content also clearly offers away to offer consumers News articles
in developed markets. This is particularly the case in the US, where Singapore Game
Germany real benefits, moving away from the interruptive model of Travel directions/times
clearly a legacy of heavy weight advertising and marketing has had Russia
Italy advertising and drive engagement. Local search for products and services
an impact. The next set of countries are also developed, but with Taiwan
Pakistan
Video clips/TV shows
Radio/ audio shows
significantly higher levels of acceptability than the US. Australia
Greece Figure 39 looks at which forms of content most appeal Price comparison service of prods find in high st
Japan Consumer reviews of products and services
South Korea when offered by advertisers for free and the results almost Sports Highlights
The top seven countries are all emerging markets including UK Sports news articles/ results
France mirror the content that users are willing to pay for – clearly Video clips created by other users/ consumers
Mexico, China, Thailand, Philippines, Malaysia, Brazil and India, US
people want to receive the content they attach most value 0 0.5 1 1.5 2 2.5 3 3.5
demonstrating less cynicism towards paid for communications, but 5 5.5 6 6.5 7 7.5 8
too (as shown previously in Figure 35). These are music, Scale of 1 to 5 where 5 equals very interested and
something that will surely emerge as advertising on digital platforms
Average acceptability score by market across all mobile phone and portable technology films, live TV and access to events. Again UGC video clips 1 equals not at all interested
and the commercial application of them becomes more prevalent. advertising formats hold no appeal and surprisingly nor do sports.

IMPLICATIONS

Consumer receptivity to advertising and marketing activity is extremely
clear; the most invasive formats such as advertising in the middle of
podcasts, pre-roll advertisements and TV ads on mobile phones are
the least liked and significantly less acceptable than more progressive
formats such as branded content and sponsorship.
The emergence of portable technology and their use as a media platform
is a massive opportunity for advertisers to create a more positive
relationship with consumers. Portable platforms are open access, cheap
to distribute across, global in nature and consumed on users terms.
Traditional media, with its high entry costs, limited geographic reach
and strict regulations, has never provided advertisers and brands
opportunity before. Brands should be creating appropriate branded
content, providing access to rich media content such as music, film
and TV shows or even creating mobile services, reaching consumers
on their terms in a way that’s more engaging than traditional
interruptive formats.
It is also clear that certain markets are more receptive than others, with
the developed markets that have a legacy of heavier advertising being
least receptive. The emerging markets are currently open to newer
formats but this may change as users become exposed.

30 31
 THE
OPPORTUNITY
32
 THE OPPORTUNITY FOR BRANDS
Define a more positive relationship with consumers
• Portable technology as with social media allows brands to create or
provide access to content, applications and services that
consumers want
• There is too much choice to maintain interruptive formats to exist on
portable technology media, consumers will go elsewhere
Leverage the network
• Portable platforms like social media have created new avenues to
distribute content on a global scale without the high entry costs of global
• A global brand and communications positioning must be maintained,
content is accessed along language lines not market lines
Integrate with social media
• Increasingly the connected people are sourcing content from social
media platforms
• Portable devices should be part of any social media strategy and users
should be encouraged to move that content from desktop to devices
• This means living by the rules of social media – creativity,
participations and interaction
Integrate mobile into the mix properly
• The mobile is the worlds number one technology platform and
should be core in all future communications, this can be as simple as
providing SMS shortcodes on adverts
• Avoid interruptive formats and always have “opt-in”
34
FUTURE INITIATIVES
Harness media meshing
• A surprising amount of portable media consumption happens at
home while watching TV, listening to the radio or even while using
the Internet
• It is important to link portable content and services to traditional
media content
Drive User-Generated Content
• Portable technologies are driving User-Generated Content on social
media platforms. This is both due to low-cost digital cameras and
the rise of camera phones
• Increasingly consumers are uploading this content to social media
platforms creating an opportunity for brands to either develop
applications that leverage this or place User-Generated Content as a
mechanic in campaigns
Champion simplicity
• A very key point in portable technology and mobile. If it is simple
and the technology works without much effort then it will be adopted
• Simplicity is the reason podcasts took off once they were integrated
PORTABLE TECHNOLOGY ALLOWS
into the itunes store, it became a one click process
ADVERTISERS TO CREATE A
MORE POSITIVE RELATIONSHIP
WITH CONSUMERS.
Contact
For further information and any questions
please contact:
Tom.Smith@universalmccann.com