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

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

2. What we set out to do Why are we doing this research? We want to help you create future-proof mobile strategies by understanding how the masses will use mobile technology in the near future (2-3 years) Source: IAB Facing the Future Study 2012

3. Undertook 3 consumer mobile surveys South Korea United states United Kingdom 806 representative Smartphone users 1513 representative Smartphone users 900 representative Smartphone users 4 x in-home interviews 1 x discussion group Source: IAB Facing the Future Study 2012

4. We spoke to a collection of experts NikRoope Creative Director at Poke Oliver Newton Head of Emerging Platforms at StarcomMediaVest Kieran Alger Web editor www.t3.com Adrian Gans Head of strategy at Razorfish Matt Taylor Head of Futures at O2 Dave Coplin Director of Search at Microsoft UK Stefan Bardega Managing Partner at Mediacom Source: IAB Facing the Future Study 2012

5. How are UK consumers engaging with mobile currently?

6. Smartphone penetration hits 61% Smartphone adoption lifecycle “In the future everyone will have a smartphone” - Dave Coplin Source: comScoremobilens Sept 2012

7. Mobile will only get more useful “Every function needs an interface and mobile is very good at dealing with a lot of different functions and interactions. Consumers are used to using their mobiles in this multi functional way - it seems a natural progression” – NikRoope iabuk.net/contact Source: IAB Facing the Future Study 2012

8. UK consumers have the greatest emotional connection to their mobiles UK consumers are more likely to use their mobiles most for going online, and are more satisfied their mobile needs are being met Base: UK 1513, USA 900, SK 806 Source: IAB Facing the Future Study 2012

9. SK use mobile the most, but are the least satisfied Mobile first behaviour Use their mobiles before other devices to go online 41% 38% 87% 82% Go online daily using their mobile phones 31% 77% Base: UK 1513, USA 900, SK 806 Source: IAB Facing the Future Study 2012

10. Can we expect the UK to follow SK’s path? • 69% of the UK expect their usage of mobile to increase in the next couple of years • Will expectations of mobile technology heighten as they have in South Korea? Source: IAB Facing the Future Study 2012

11. How are UK consumers engaging with tablets currently? iabuk.net/contact

12. Tablet penetration hits 14% Tablet adoption lifecycle Early Majority Late Majority Early Adopters = 14% Laggards Innovators 2.5% 13.5% 34% 34% 16% 2010 2012 Source: comScoremobilens Sept 2012

13. Interestingly, UK are more engaged in tablets than South Korea 15% Going online daily on tablets 35% Going online daily on tablets Based on smartphone owners 31% I am using my tablet more than my laptop for online browsing and shopping these days Based on Tablet owners Base: UK 1513, USA 900, SK 806 Source: IAB Facing the Future Study 2012

14. Price & social barriers to tablet adoption are decreasing “Price points will change in the next year, making tablets more accessible to consumers. Schools will be full of slate devices… the device will feel natural, second nature” - Dave Coplin “We’re now over the ‘fear factor’ of using tablets in public” - Oli Newton Source: IAB Facing the Future Study 2012

15. What do consumers think about the future? iabuk.net/contact

16. 3 future concepts stand out Assuming all of the following scenarios were possible, we'd like you to rank them from which you find most appealing to which you find least appealing.) Base: UK 1513 Source: IAB Facing the Future Study 2012

17. Mobile wallet #1 Your mobile phone will be your identity – it will act as your house keys, car keys and will basically replace your wallet Source: IAB Facing the Future Study 2012

18. Retailers need to react to consumer demand for a mobile presence- both in store & online “Retailers have to think carefully about where mobile fits in the whole purchase process, from in-store, how they make the experience more engaging, and giving people more information” - Stefan Bardega “I want to be able to do more shopping from my mobile” - UK consumer “I’d like mobile shopping to be easier” - UK consumer “this [mobile wallet] will become an increasingly contested space over the next 2-3 years... the challenge is to demonstrate the benefit and not the technology” ­ - Matt Taylor Source: IAB Facing the Future Study 2012

19. NFC could be the breakthrough for retailers on mobile The potential to transform mobile commerce and retail Harnessing location-specific information to capture relevant consumer data and target appropriately “When it becomes an ID card it is your gateway… at some point it just becomes part of your body” - Adrian Gans Source: IAB Facing the Future Study 2012

20. However, privacy concerns still need to be addressed “Mobiles will become your identity, your wallet. We need to start thinking about how data is being used and how we can protect that very personal space” – Adrian Gans “None of the mobile future concepts are really appealing due to privacy concerns” – UK consumer Source: IAB Facing the Future Study 2012

21. Mobile/tablet optimised websites #2 Websites on your mobile phone and or tablet will be more advanced, and as easy to use as they are on your laptop/PC Source: IAB Facing the Future Study 2012

22. Consumer appetite outgrown current level of content available on mobile “I find myself checking the same sites and apps on my mobile again and again during the day…but nothing ever changes. It’s disappointing” Susan, 52 Source: IAB Facing the Future Study 2012

23. Could we make mobile content better? “Rather than the linear ‘purchasing a magazine and sitting down on my own’ there will be a more connected and sharing way of consuming content” - Kieran Alger “We can build immersive experiences that don’t replace reading, but augment it and support it to provide a different experience” – Dave Coplin Source: IAB Facing the Future Study 2012

24. Cross device content is a must have “It’s not useful to think about single platform experiences anymore - they're not little bubbles. We're given more and more tools all the time through applications and devices, and people adopt and use them holistically. Brand experiences should be a partnership on whatever device consumers have to hand” “It’s disappointing when mobile sites don’t work properly. I don’t tend to visit them again” - Liam, 34 - NikRoope Source: IAB Facing the Future Study 2012

25. The cloud #3 All your files, music and films will be stored virtually, and you'll be able to access them from your mobile and or tablet wherever you are Source: IAB Facing the Future Study 2012

26. The cloud gives a seamless cross device experience “Cloud is a massive part of the solution… I should be able to pick up my phone and everything is available. That’s the opportunity the cloud provides” – Dave Coplin Source: IAB Facing the Future Study 2012

27. 4G will kickstart the cloud & multimedia access “What the intro of 4G will do is really accelerate the richness of experience that can be had both from a consumer and entertainment perspective but also from an advertisement perspective” – Stefan Bardega Easy to load on 3G networks and the quickest way of getting information on the go Text based content Multimedia-based content Source: IAB Facing the Future Study 2012

28. However, data limits and battery life are still factors that withhold adoption “Any data caps will be totally prohibitive to mobile activity” - Oli Newton “Ahh… something new to drain my battery” – Joy,44. Source: IAB Facing the Future Study 2012

29. What does the future hold for advertising on mobile?

30. Advertising has to keep up with the improving mobile experience “From a publisher perspective, getting smarter about how we integrate the advertising into the mobile experience is something that absolutely has to happen” “I don’t know how you would make [an ad] on that small a screen anything but irritating” - Susan, 52 • Stefan Bardega Source: IAB Facing the Future Study 2012

31. Advertising that works is tailored to the consumer “A brand can now be seen and used in places it normally doesn’t go… The challenge is to take the consumer from being viewer to being a central character in the narrative” - Oli Newton “I make a point of clicking on ads that I see are relevant to me, just to let them know they did good job” – Ed, 33 Source: IAB Facing the Future Study 2012

32. Multi screening can provide exciting opportunities for brand communication “We're watching something on a big screen and we have a device with us that has a bunch of content related to what we're watching on the big screen but it's not the same. It's a really immersive and pervasiveexperience” - Dave Coplin Source: IAB Facing the Future Study 2012

33. Summary iabuk.net/contact

34. Summary • Consumers in UK currently have the most personal relationship with their mobile • SK users are the most advanced, and have the highest expectations from mobile tech • The UK leads in tablet usage, and decreased barriers to adoption will mean a “Tablet Tastic Christmas” Source: IAB Facing the Future Study 2012

35. Consumers & experts agree on 3 key themes for the next 2-3 years Mobile Wallet • Will NFC kick start retailers into responding to consumer needs for mobile to be a part of the shopping process? NFC could provide the technology for retailers to answer consumer demands for mobile shopping to be easier, making the mobile wallet a reality. Optimised websites • Will NFC kick start retailers into responding to consumer needs for mobile to be a part of the shopping process? Consumers are demanding ever superior mobile experiences. Brands and publishers need to be better optimising content for mobile and tablet. The Cloud • Will NFC kick start retailers into responding to consumer needs for mobile to be a part of the shopping process? Mainstream 4G access will make the seamless cross device experience a reality. Multimedia access could be the winner from these developments. Source: IAB Facing the Future Study 2012

36. Thanksalex@iabuk.net