Mobile advertising platform Tapjoy released survey data about mobile user attitudes and behaviors surrounding engagement with in-app advertising. The online survey had 2,000 US adult respondents who owned smartphones and/or tablets and used apps. The major finding was that users respond best to ads in apps that offer rewards of some kind.
Respondents were grouped in age and psychographic categories and profiled accordingly. The survey discovered that adults in the 25-34 age group "are more likely to value the influence of advertisements, they generally recall seeing more ads while using mobile apps." In addition during each app session people in this group recalled a larger number of ads vs. the total population.
These individuals had more paid apps on their devices than other age groups. In addition, once they saw an ad "50% choose to click on it, compared to only 45% of typical app users." These numbers are huge: half of those who noticed an ad clicked on it.
Here are some of the other top-level findings:
Stepping back, none of this comes as a surprise. (There's also lots of discussion of virtual currency in the survey.) Mobile users tend to respond to ads more than PC users and in-app users perhaps more significantly than users of the mobile web. It also makes sense that ads containing some sort of incentive, deal/discount or call to action would see higher response than in the absence of those things.
We've written previously about how many -- indeed a majority -- of mobile ads suffer from bland or perfunctory ad creative and copy and are merely shrunk-down versions of PC campaigns rather than created specifically for mobile audiences. When mobile ads are well conceived they can be enormously effective.
Most marketers' email campaigns are not optimized for mobile. I observe this all the time in my own experience: the majority of emails I open on my smartphone (iPhone) land on an HTML page that assumes I'm on a PC. Yet PC email opens will be the minority use case very soon according to data released by email analytics provider Return Path.
The company examined 500 client email campaigns in Q4, 2011 through Q1, 2012 and found that 30% of email opens were on mobile devices. Further, it said that mobile was on track to become "the dominant email marketing platform later this year." This makes sense because email is one of the primary activities that people do in mobile. Return Path asserts that 42% of all time spent with mobile is spent on email.
The company doesn't indicate whether iPads are counted as mobile devices here. In that case PC-formatted emails will look OK.
Regardless, the Return Path data and prediction will come as a shock to most email marketers who are well behind in terms of mobile adoption. Citing third party data Return Path said that of all email opens only 2.4% of people opened the same email on their mobile device and a PC. In other words, marketers get one shot at users and that's going to be mostly mobile as of later this year.
Citing another third party study Return Path reports that 63% of Americans and 41% of Europeans either close or delete emails not optimized for mobile. This shows how high the stakes are for marketers who rely on email -- especially retailers.
Perhaps the second most suprising datapoint from the study, Return Path found that "Apple devices account for 85% of all mobile email opens." What this effectively means is that at some point in Q4 a majority of email opens will happen on iPhones and iPads.
A recently published study from the UC Berkeley Law School about mobile payments and related issues finds some significant consumer resistance -- at least in the abstract. A survey discussed in the report found that "over three-quarters (74%) of Americans said that they are 'not at all likely' or 'not too likely' to adopt mobile payment systems. Just 24% say that they are likely to adopt mobile payments."
Enthusiasm or resistance to mobile payments varied by age. Interestingly the people most enthusiastic about the technology were those in the 35-44 age range -- not the youngest adults. Yet attitudes and behavior are often distinct and surveys don't always reflect what people actually do in concrete situations in the world. Still the data potentially reflect a stiff uphill climb for mobile payments purveyors.
Services like Square and PayPal Here may be exceptions because they don't require a change in consumer behavior. The consumer is still swiping a card; it's the merchant experience which is changed.
A 2012 consumer survey conducted by the US Federal Reserve found that 12% of respondents had made a “mobile payment” within the past year. However “payment” was broadly defined to include online bill paying, m-commerce, charitable giving and money transfers, among other transactions. Online bill paying was by far the most common “mobile payment” activity according to the survey.
(Source: US Federal Reserve Q1 2012, n=1,780 US adults)
Concerns over security and the lack of apparent/clear benefits were the top two obstacles to mobile payments adoption according to the Federal Reserve survey.
The UC Berkeley survey looked at related areas surrounding mobile payments adoption. It explored location tracking and other privacy related issues (i.e., giving merchants information as part of the mobile transaction). Among other things, the survey asked consumers about how much information they were willing to give to merchants and how comfortable they were allowing their movements in or around shopping areas to be tracked by retailers or other entities.
The report says that, "Americans overwhelmingly oppose the revelation of contact information (phone number, email address, and home address) to merchants when making purchases with mobile payment systems. Furthermore, an even higher level of opposition exists to systems that track consumers’ movements through their mobile phones." An overwhelming 96% of survey respondents say they objected to having their movements tracked by merchants or retailers; and 79% said they would “definitely not allow” it, with the remaining 17% saying they would “probably not allow” it.
Again this may be an abstract fear that dissipates if consumers realize concrete benefits from permitting themselves to be tracked or by divulging information. Regardless, mobile payments vendors and merchants will need to overcome the catalog of user fears and offer very concrete benefits to drive adoption. There are a large number of people who not only don't see mobile payments inevitable, useful or convenient but see it as a net negative.
That perception will need to be overcome to mainstream the phenomenon. And that will probably happen by getting a sufficient early adopter critical mass of people who can then proselytize and educate their friends, family and colleagues.
Today comScore confirmed what we already knew: Kindle Fire is the dominant tablet in the non-iPad universe. Comscore reported that the Kindle Fire had 54% of the US Android tablet market and was far ahead of all other Android tablet OEMs including Samsung.
Here's the market-share breakdown in the US Android tablet market according to comScore:
Kindle Fire is a weak competitor to the iPad in terms of overall user experience. However its $199 price has made it extraordinarily successful. Accordingly it set the bar for Android pricing in the 7 inch category, if not the rest of the Android tablet market.
Google will reportedly match or beat that pricing when its own branded tablet goes on sale later this year.
One of the keys to estimating mobile ad revenue is making valid assumptions about consumer-user behavior. Mobile search advertising (mostly benefiting Google right now) is currently the single largest mobile ad revenue category in the US market. The key drivers of mobile search revenue are CPC pricing, advertiser volume and user query volume.
In data revealed during the the Google-Oracle litigation, Google (in Q1 2010) projected mobile ad revenues based on an assumption of 1.1 mobile searches per day per user, or roughly 30 searches per month. However additional data released suggest that Android users are actually conducting 2.65 mobile search queries per day, or more than 60 mobile searches per month.
Estimate how many times EACH MONTH you search Google on your mobile phone?
Source: Opus Research (4/12 n=1,522 US adult mobile users)
However this mobile search volume is inconsistent with what user surveys reveal about query volume. For example our most recent survey indicates that a majority of mobile users don't search Google on their handsets. This sample included non smartphone users so the numbers are more skewed than if this sample was smartphone users exclusively.
Other surveys report that most smartphone owners conduct fewer than 20 mobile searches per month, though a meaningful minority are power users and do more than 20 or 30 mobile queries on a monthly basis. In our survey above, 81% said they performed fewer than 20 searches per month and most performed fewer than 10.
Accordingly there's a disconnect between Google's apparently actual 2010 behavioral data about Android user mobile search volumes and what users report on surveys about their mobile search activities.
Each of the ad networks presents somewhat different data on the question of who's got more market share iOS or Android. Nielsen reported that recent sales of iPhones have been "closing the gap" between Apple's handset and the "Android army." However networks Millennial Media and JumpTap show Android impressions being roughly 2:1 what iOS impressions are on their networks.
This morning inMobi released new data (for February and Q1) showing that the iPhone has a greater share of impressions on its network vs. Android. According to inMobi, "iOS has maintained its dominant market position over Android in North America since January this year, with iOS total share of impressions for the quarter at 37%, against Android at 34%."
The top three devices on inMobi's network in North America are:
The network also reported that on a global basis, Nokia still had the largest percentage of ad impressions (35%), "although its OS share of impressions decreased slightly over the last quarter."
The IAB is out today with its full year 2011 digital advertising report. There are a number of interesting things in the report, among them the mobile ad revenue estimates. According to the IAB mobile advertising in the US was worth $1.6 billion in 2011.
Of all the ad formats mobile showed the greatest growth, as one might expect. Below is a comparison of digital ad categories. Search increased its share of digital revenues and was by far the largest single category.
We haven't revised our mobile ad forecast for a couple of years, but it was very close to the IAB figures. I'm pretty happy with that.
AT&T has said that Lumia 900 sales have "exceeded expectations." Gizmodo checks seem to confirm brisk sales (with some qualifications). The Lumia appears to be selling well on Amazon in the US. Yet reports from Europe suggest carriers have soured on the device:
Skeptics among operators say the sleek, neon-coloured phones are overpriced for what is not an innovative product, cite a lack of marketing dollars put behind the phones, and image problems caused by glitches in the battery and software of the early models . . .
"No one comes into the store and asks for a Windows phone," said an executive in charge of mobile devices at a European operator, which has sold the Lumia 800 and 710 since December.
The other day on the WP Central blog there was a poll of readers indicating some iPhone and Android users were abandoning their handsets for Lumia. That poll inspired me to create one myself on Google Consumer Surveys.
I asked "What will be your next mobile phone?" The survey had just over 1,500 US adult respondents. The responses (below), which are allegedly statistically significant, suggest very limited demand for the Lumia handset and Windows Phones in general in this market.
What will be your next mobile phone?
N=1,504 (Opus Research using Google Surveys)
The survey respondents were drawn from news and reference sites and almost evenly divided between men and women and across age groups. The questions were randomized so as to not bias the results.
In terms of the "Other" responses (33%), some are probably intended Android buyers that aren't looking at Samsung models. They may also be non-smartphone buyers as well. This is suggested by the fact that when segmented by age, "Other" is the top category for those over 45.
Those in the 35-44 age group were much more interested in the Windows/Lumia handset than other age groups (5.4% vs. 3.5% overall). Demand was strongest for Windows/Lumia phones in the South and US Midwest. Demand for BlackBerry phones was strongest in the Northeast.
Interestingly Windows/Lumia demand was stronger than the norm among those earning at least $75,000 per year. This is a bit counter-intuitive because the phone is aggressively priced at $99, presumably to generate demand at all income levels. However, among those making less than $75,000 per year demand for Windows/Lumia was less than the survey norm above. These findings suggest that Nokia may not have needed to target the phone below $150 or $199 (with contract).
We'll find out definitely over the next two quarters, as Nokia discloses sales figures, whether the Lumia handsets are selling well or not. But the survey I conducted appears to confirm my earlier prediction that they'll see only modest adoption in the US.
BIA/Kelsey has just put out a prediction that local-mobile search will surpass local search on the PC in 2015. The following year (2016) BIA "expects mobile local search to exceed desktop local search by more than 27 billion annual queries."
There's a certain logic here -- 40% of mobile search carries a local intent (per Google) and mobile is growing faster than PC search -- but I think the crossover date is farther out than three years from now. (In developing countries it may be much sooner.) The press release doesn't mention apps and I suspect the prediction is largely or entirely about query volumes coming from the search bar on the mobile browser (which is 95% Google).
Source: Performics, 3/11
To achieve the local query volumes projected and surpass PC search equivalents by 2015, however, apps would need to be included in the calculation. Right now nobody really knows how much "search" and local search is happening in the context of apps. Nobody is actively tracking it. However, the recent Local Search Study from 15Miles, comScore and Localeze suggests that a substantial percentage of local-mobile search is happening within apps.
The survey of 4,000 US adults found that 49% of smartphone and tablet owners are using apps to find local information. I speculated that half of "local search" query volume, which might otherwise be on Google or other search engines on the PC, might be going through apps on smartphones. It's a leap but one not without some merit.
According to 2011 US survey data from Performics (chart above), 60% of mobile search users conduct fewer than 20 mobile searches per month, while 40% do 20 or more searches monthly. There are other data and surveys I could cite; this is just one. It illustrates, however, that there's a significant gap currently between PC and mobile search today. On the PC, comScore said last year that US adults conduct an average of 107 search queries per month.
If we use Google's 20% PC local search number, it would mean that in March there were roughly 3.7 billion local searches on the PC in the US. If we use Yahoo's 30% figure it would be more like 5.5 billion. The average of the two is 4.6 billion monthly local queries. (I believe these figures probably under count PC local intent search volumes.) If there are now roughly 125 million smartphone users in the US and roughly 90% of them use search, that means in any given month 112.5 million people are searching for stuff. If we assume they're all doing 20 queries a month (near the top end of the Perfomics range) that comes to 2.25 billion mobile queries monthly in the US. However only a subset of those are local.
If we use Google's 40% (of mobile search is local) figure, then roughly 900 million mobile search queries have a local intent on a monthly basis. (This number is likely higher than what's actually happening in the market given the assumption of 20 searches per month on average.) And again this doesn't account for local search queries happening in apps, which is probably hundreds of millions at least.
Indeed, "search" takes many forms on mobile devices, and much of it isn't running through a traditional search engine like Google. Yet mobile queries on Google are also growing rapidly. While overall mobile search volumes will continue to grow and while they could grow from 900 million to more than 4 or 5 billion monthly queries in three years I just don't see that happening unless we count app-based query volumes as part of the equation.
Ahead of Apple's quarterly earnings call next week, Fortune has rounded up analysts estimates regarding Q1 2012 iPhone sales. The consensus range is 30 to 35 million units:
The average among the Wall Street analysts is 30.5 million . . . To hedge our bets, we've singled out the six analysts who have turned in the most accurate estimates over the past five quarters. Their consensus: nearly 35.1 million units, an increase of 88.5% year over year.
Apple was the insurgent and Nokia the market leader. Now the roles have been reversed.
Nokia will report a loss later this week and expects a similar result in Q2. The bottom has fallen out of Symbian phone sales. However the company said it had sold 2 million Lumia handsets (globally) to date:
In the first quarter 2012, Nokia sold more than 2 million Lumia devices at an average selling price of approximately EUR 220 (reported within the Smart Devices business unit). Furthermore, Nokia has seen sequential growth in Lumia device activations every month since starting sales of Lumia devices in November 2011. Lumia has gained market share with both distribution partners and consumers. The Windows Phone ecosystem is also attracting developers and has expanded rapidly with more than 80,000 applications available.
Dpending on whether you think "it's still very early" or whether the company should have sold more units to date, you either conclude that the device is off to a good start or failing to take off. My view is in-between. I think it will sell moderately well to people interested in an inexpensive handset and not loyal to either Apple or Google.
The phone is apparently selling well on Amazon with overwhelmingly positive reviews, leading one person to question whether the reviews had been faked. I do believe that some of the reviews are fake; though many if not most are probably genuine. Nokia, AT&T and Microsoft have a great deal riding on the success of the handset, creating incentives for people to generate positive reviews.
I have used Windows Phones and found them to be good but not great. The chief problem is a lack of apps. I also don't favor the homescreen UI.
If Lumia is as great as the reviews suggest then sales should pick up considerably in the next quarter. This is the make or break year for both Windows Phone and Nokia as a company.
This past week the Pew Internet Project released a mix of data drawn from 2011 surveys. This new "Digital Differences" report reveals that 20% of US adult population does not use the Internet for a range of reasons ("no need," etc). These are mostly older, less educated or less affluent people. These findings are not surprising.
However the data argue more strikingly PC-based Internet adoption in the US has reached something of a plateau. While that could change over time, it's further evidence of the "post-PC" era we're now in.
Pew also found that about 60% of PC-Internet users had a "broadband" connection at home. Like the PC-Internet adoption curve, broadband adoption has hit a ceiling and may even be seeing a downward trend, with a decline in the number of home-based broadband connections in the past year.
Many people who do not have a broadband Internet connection at home are using smartphones as their primary way to get online. While many seniors and other older adults will probably continue resist smartphones, several groups that are among the 20% are adopting them.
Pew found that "young adults, minorities, those with no college experience, and those with lower household income levels who owned smartphones were more likely to say that their phone was their main source of internet access." About 25% of Pew's smartphone-owning surey respondents said that their mobile devices were their primary Internet access method.
Indeed, a portion of the 20% of US adults that don't have PC-based Internet access at home are getting online now through smartphones. However this "mostly mobile" Internet group includes adults who do have at-home Internet but prefer their mobile phones for Internet access for one reason or another.
In a recent online survey we conducted (n=1,502 US adults) we found a slightly lower percentage (17.6%) of respondents who preferred mobile devices as their primary Internet access method:
Perhaps the most interesting observation is how smartphone ownership and Internet access impacts overall digital media usage. According to Pew people who use mobile devices to go online become much more active and engaged Internet users, including creating more content:
Once someone has a wireless device, she becomes much more active in how she uses the internet–not just with wireless connectivity, but also with wired devices. The same holds true for the impact of wireless connections and people’s interest in using the internet to connect with others. These mobile users go online not just to find information but to share what they find and even create new content much more than they did before.
Fortune's Philip Elmer-DeWitt reports on the results of the latest teen survey by investment firm Piper Jaffray. The survey polled 5,600 American teens, evenly divided between genders. The average age was 16.
The following are a couple of the questions and answers from the survey:
While the sample is very large, the question is: how representative of all US teens is this survey?
There are somewhere between 25 and 30 million teenagers in the US, depending on how "teen" is defined, according to the US Census Bureau. Thirty four percent of 25 million would be 8.5 million teens with iPhones. That seems plausible. Another 8.5 million teens have tablets/iPads by the same extrapolation.
According to comScore's most recent figures 13.5% of US mobile subscribers own iPhones (or roughly 14.04 million people out of a total smartphone population of 104 million). These data points are from different sources but the numbers suggest that more US teens than adults own iPhones. That doesn't seem correct.
What's not exposed is the degree to which teens aspire to ownership of any other type of smartphone. Also not discussed is whether the tablet 34% of teens claim to "own" is actually theirs or owned by a parent. It would be interesting to know whether there are multiple iPads/tablets in the house.
Beyond its February US smartphone marketshare data, released earlier today, comScore also exposed some additional, interesting data about WiFi usage among Android and iPhone owners in the US and UK. In general iPhone owners are apparently much heavier users of WiFi than Android owners. And UK residents are also generally bigger consumers of WiFi than their US counterparts.
In the US the percentage of Android WiFi users is half as large (32% vs. 71%) as iPhone WiFi users. But why?
As someone who owns both devices I can speculate about why this may be.
More Android handsets operate on 4G networks, whereas the iPhone is limited to slower 3G networks. The move to WiFi alleviates some of the frustration of being on slower networks for iPhone owners. Beyond this, on Sprint and Verizon in the US, iPhone owners can't access voice and data at the same time. Where WiFi is available they can.
In addition, whenever a new WiFi network becomes available iPhone owners get a prominent, even disruptive, notification that takes over the screen. iPhone owners are thus much more likely to be aware of the presence of WiFi than Android owners. The process of connecting to WiFi is also faster and easier on my iPhone than it is on my HTC Android phone.
There are two contradictory memes in the market about Android. One is that the platform is surging toward world domination; the competing narrative is that Android is losing adherents and is faltering.
ComScore boosted the first narrative today with a release (based on survey data) that shows Android crossing the 50% threshold in February. In other words, 50% of US smartphones now are Android handsets.
Interestingly comScore's data show only 44% US smartphone penetration, while Nielsen shows 50%.
In addition, Nielsen and financial analysts from Canaccord Genuity claim that the iPhone is "clawing its way back" among recent purchasers and closing the gap with Android. The Q1 2012 Appcelerator also appears to show mobile app developers losing some interest in Android.
These indicators suggest Android is losing some momentum, although the comScore data directly contradict that assertion. Regardless, it's clear that Android is on its way to replacing Nokia as the leading smartphone platform globally.
The comScore report also confirms the accelerating decline of RIM and shows that US consumers are not buying Windows Phones. We'll see what happens after the massive marketing campaign that's about to be unleashed by AT&T, Nokia and Microsoft.
Earlier this week Marin Software released some very interesting aggregated data on mobile search trends. The report sees dramatic growth for mobile paid-search. It projects that smartphones and tablets will combine to generate 25% of all Google’s paid-search clicks and 23% of paid-search spending in the US by the end of this year.
Among the other data the report assembles are click-through (CTR), cost-per-click (CPC) and conversion rates in mobile. It compares them to comparable metrics in desktop paid search. The numbers are averages based on client campaigns.
Smartphones show higher CTRs and lower CPCs than PC search campaigns. But they also show lower conversion rates and thus higher per-conversion costs than either tablets or PCs.
The smartphone conversion data appear lower likely because most conversions are happening offline and they're not being accurately tracked. Marin says as much in its recommendations for marketers about offline conversion tracking:
Mobile searches often result in conversions that happen via a call or a physical store. Unfortunately, most marketers lack the ability to glue these clicks together into a unified conversion funnel. Marketers should look to estimate their mobile-influenced revenue through the use of popular mobile ad formats such as click-to-call and store-locator. By combining the typical conversion rate for in-store and phone-based transactions with the average revenue per transaction, marketers can estimate a revenue per click for mobile devices, and adjust their mobile CPCs and budget accordingly.
Whether paid search or display ads, marketers need to track calls and have landing pages where "secondary actions" like store locator or map lookups can be tracked to see whether consumers are acting on the ads. If the tracking isn't set up properly then you're going to see fewer conversions or no conversions and the ROI data will be distorted.
The conversions are there, they're just not visibile in many cases.
Although the Pew Internet Project was the first to report that at least 50% of US mobile phone owners had smartphones, Nielsen waited until today to make the same statement: "Almost half (49.7%) of U.S. mobile subscribers now own smartphones, as of February 2012." This compares with 36% a year ago.
However if smartphone ownership is segmented by age and income, the numbers are much higher than 50% for some categories.
Nielsen says that Android's share of smartphones in February was 48% while Apple's was 32%. However among 90-day recent buyers, the numbers are much closer (48% vs. 43%), reflecting the popularity of the iPhone 4S and its availability from mulitple carriers.
All others, including RIM and Microsoft are under 20% collectively. However the trend is away from these platforms among recent buyers. Microsoft is hoping to reverse that with the expensive and high-profile launch of the Lumia 800 at AT&T next month.
In a new report on the iPad and related user behavior just released by app-store analytics provider Distimo finds that news publications and magazines on the iPad in the US are generating $70,000 daily (among the top 100 newsstand apps). The top five grossing US publications in order are Murdoch's The Daily, The New York Times, The New Yorker, National Geographic and Cosmopolitan.
The report also says that China is now the largest market in the world for free iPad apps, but it's not among the top five countries for paid app revenues. Distimo reported that the top 200 paid apps globally are generating roughly $2 million per day in revenues. The top iPad app-revenue countries are US, UK, Canada and Australia.
The iPad has far more tablet-specfic apps than any of its competitors. The company says that Samsung tablets have roughly 32,000 apps available for various screen sizes. According to Distimo:
However, only a small proportion of applications in Google Play are optimized for tablets. When we look at the Samsung Appstore . . . we see that roughly 32K Android applications are available in the device stores for tablets (Galaxy Tab 10.1, Galaxy Tab 7.0 and Galaxy Tab). The majority of applications are available for the Galaxy Tab and Galaxy Tab 10.1 only, but there are also a substantial 4K applications available for the Galaxy Tab 7.0, which has a different screen ratio.
I'm quite surprised by the finding of 32K apps for Android tablets. In my roughly 9 months of 10-inch Galaxy Tab ownership I found almost zero apps for the device. This paucity of tablet-optimized apps is one of the reasons for the failure of Android tablets generally. It's the same catch-22 scenario I discussed yesterday regarding Windows Phones and the lack of apps: because most Android tablets haven't sold, developers so far aren't creating tablet-optimized apps for these devices (Kindle Fire may be an exception).
Given the success of Kindle Fire and Nook it appears that Android tablets will mostly focus on the 7-inch form factor. And at that size smartphone apps are not as glaringly ill-formatted as they are on the 10-inch screen.
Distimo also identified most popular iPad app categories (by downloads) in pink in the chart below:
The gray bar on the right indicates the number of available apps in the category. Where the pink bar exceeds the gray bar, Distimo says there's high demand vs available supply and a corresponding developer opportunity.
Even though increasing numbers of consumers are starting to transact on smartphones, m-commerce hasn't taken off. Trust, security and credit card entry issues still need to be resolved for most e-commerce merchants (though not Amazon).
But there is another way in which smartphones are helping e-commerce -- so-called "showrooming." That's where consumers visit stores to examine and verify products and then order online (mostly from Amazon). This problem has been especially bad for stores like Best Buy but it's a problem that all traditional retailers are starting to grapple with.
Recent survey data from ClickIQ (via Internet Retailer) confirms this pattern:
29% of consumers who use a smartphone to research a product while in a retail store end up purchasing the item online, many from. . .
Of consumers who used a smartphone to research in-store and then purchase online, 55% were men and 45% were women, says the survey of 406 U.S. consumers who have researched a product while in a store and purchased that product.
Recently the Pew Internet Project issued similar findings about Q4 smartphone shopping behavior.
Here's what the Pew survey data say about what happened after the smartphone/Internet was consulted by consumers in stores:
What this means, effectively, is that 64% of in-store smartphone users decided not to buy on the spot -- probably because of some piece of information they accessed then and there (price, reviews, etc.).
The 19% who purchased the product online is 10 points lower than the ClickIQ findings. But both these surveys show that consumer behavior is being affected by access to the Internet in stores, with some meaningful percentage of people buying online after confirming the product is the one they want.
There are a few things that retailers can do to combat this growing pattern:
However it's foolish for retailers to try and prevent smartphone use in stores or rely on unique SKUs that prevent barcode-scanning based comparisons.
The iPad 4G may prove itself an exception, however Chetan Sharma's latest report on data consumption and carrier revenues shows that US consumers continue to shun carrier contracts when it comes to buying tablets. The reasons are very rational:
Indeed, tablet data plans offered by the carriers are quickly used up -- in just a few hours -- by video consumption on the iPad in particular.
Consumers want to be free of carrier data plan restrictions and associated costs. However, as voice and text revenues decline, carriers will increasingly look to data plans for revenue growth. Carriers will need to be very creative because users will be seeking to escape their efforts to extract more data fees from consumers.
The Q1 2012 Appcelerator developer survey is out and it contains some interesting findings. The data are based on a survey of 2,173 Appcelerator developers from January 25-27, 2012.
Among the findings, HTML5 is being widely embraced: "79% of developers [are] saying they plan to integrate some HTML5 into their mobile apps that they build this year." In addition, a significant minority (39%) of developers "say the network effects of Google’s total assets (like Google+, search, Gmail, Android, Android Market, etc.) are more important to them than Facebook’s social graph." However developers in this survey demonstrate limited understanding of how to fully leverage social in their apps.
In terms of platforms, iOS remained at the top of the developer interest graph (below). Windows Phone gained some mindshare since Q4 but, surprisingly, Android seems to have lost some mindshare among developers. This comes at a time when Android's OS market share on a global basis continues to gain.
Here's what Appcelerator had to say about what might be called "Android fatigue" (due to monetization challenges and platform fragmentation):
This quarter, interest in Android phones dropped 4.7% points to 78.6%, and Android tablets dropped 2.2% points to 65.9% from the previous survey. Although close to or within the margins of error, these drops are consistent with the trend of small but steady erosion in Android interest over the last four quarters, even as enormous growth in Android unit shipments continues.
RIM is one of the big losers in the chart above, with developer interest all but falling off a cliff since last year. RIM will be forced to "double down" on the Android app ecosystem or be totally marginalized. But that's already happening in the US market. Elsewhere RIM has greater strength.
Finally, most developer-respondents in this survey indicated that they had a reasonable but not great understanding of social and how to fully utilize it within their apps, and as a tool for app discovery and marketing.