Research from mobile survey company, On Device Research, which was conducted directly on the mobile internet, has revealed a new internet audience. More than 50% of Asian and African mobile internet users as well as more than 20% of users in developed markets, such as the UK and US do not use the internet on a PC. The deck shows the profile of this new generation of internet users and is the first in a series of free quarterly reports.

1. The ‘Mobile Only’ Internet Generation December 2010 Alistair Hill

2. The ‘mobile only’ Internet generation In developed economies the mobile internet is commonly thought of as an extension of the desktop internet, providing an additional, convenient and portable access method. However for many people around the world, the mobile phone will be the primary, or only way to access the internet. This will have profound effects, not only on the lives of these people, but on the Internet industry and the way brands communicate and interact with these consumers – the nextbillion consumers. In the first of a quarterly series, summarising recent client studies, On Device Research will examine this new segment, the ‘Mobile Only’ Internet generation.

3. On Device Research services On Device Answers On Device Effectiveness On Device Panels Global consumer research panels. Quick and affordable insight from any country with a focus on emerging markets. Device agnostic survey product. Works on web enabled feature phones, smartphones, PC, iPad, etc. Advertising effectiveness studies using mobile surveys and diaries.

5. 5 question types available.

6. Automatic identification of device, carrier and GPS location (where possible).

7. Consumers fulfil survey on the mobile internet.

8. The sample is representative of mobile internet browsers and weighted by OEM share and demographics.

9. Survey results are processed and analysed.

11. The Mobile Only Internet Generation Mobile Internet Usage in: Africa Asia Net Promoter for Mobile Internet Agenda

14. Emerging markets ‘mobile only’ browsersare mostly under 25 In emerging markets the vast majority of the ‘mobile only’ are under 25, the vast majority are male and many are in education. In the developed world the ‘mobile only’ are a different segment. In the UK they are split more evenly with 58% over 25. The US however provides interesting results, with most being over 25 and many on lower incomes. Countries: Nigeria, India, US, and UK Date: July- November 2010 N= 6165

15. 55% of Indian ‘mobile only’ are students Over half of the Indian ‘mobile only’ are in either school or university, indicating that a level of intelligence is required to have either the curiosity or know how to go on the mobile internet. This young and educated group are the worlds future internet users and will make up a large part of the worlds next billion consumers. Countries: India Date: July 2010 N= 1070

16. In the US, the ‘mobile only’ skew towards lower incomes Mobile browsers with household income of under $25,000 per year are 19% more likely to not, or rarely, use the desktop internet. If we couple this information with the demographic data it becomes clear that there is a large group of lower income over 25’s who only use the mobile internet but rarely, or never, use the desktop internet. Countries: US Date: November 2010 N= 1290

17. The Mobile Only Internet Generation Mobile Internet Usage in: Africa Asia Net Promoter for Mobile Internet Agenda

18. The Emerging markets opportunity The new digital audience creates opportunities for brands, Internet, media and financial services companies. The following section highlights some of these: Internet Companies + Brands – There is an appetite for mobile friendly Internet services (email, social networking, news, etc) many of which are ad funded. Brands have a new opportunity to market to these users, reaching the previously unconnected emerging middle classes in developing countries. Media – Downloading content is extremely popular (games and music downloading are the top browsing genres in Africa). Media companies have the opportunity to market and sell directly on the device where the content will be consumed, to an audience who don’t have the option to download on PC. Financial – Many ‘Mobile Only’ browsers don’t have a back account (in India 57% of the ‘Mobile Only’ don’t have a bank account). All of these people have a billing relationship with their mobile operator, giving them the opportunity to purchase electronically for the first time.

19. Content downloads and social networking leads mobile browsing behaviour in Africa Over 50% of mobile browsers go to sites for downloading games and music. Communication services such as social networking and email are popular. Almost half of respondents use search. Countries: Nigeria, Kenya, Egypt, South Africa, Ghana, Tanzania, Senegal Date: October 2010 N= 7325

20. Opera provides quasi-smartphone experience for feature phone users in Africa Opera users are 33% more likely to use social networks than Non-Opera users and are comparable in behaviour to UK mobile browsers. In the UK, smartphone owners are 20% more likely to use social networking than those who don’t own a smartphone. Countries: Nigeria, Kenya, Egypt, South Africa, Ghana, Tanzania, Senegal, UK Date: October 2010 N= 7325 + UK=1448

21. Nokia dominates mobile browsing in Africa 85% accessed the internet with a feature phone. Of the 15% who used a smartphone nearly all were Nokia Symbian devices with almost no reported use of Android or iPhones. Countries: Nigeria, Kenya, Egypt, South Africa, Ghana, Tanzania, Senegal Date: October 2010 N= 7325

22. 66% of Kenyan ‘mobile only’ users download mobile music With limited or no access to the desktop Internet for many in Africa, the mobile Internet provides a significant opportunity for media and content companies. 66% of the Kenyan ‘mobile only’ have downloaded music on their mobile, with almost half downloading games and videos. Countries: Kenya Date: October 2010 N= 1009

23. The Mobile Only Internet Generation Mobile Internet Usage in: Africa Asia Net Promoter for Mobile Internet Agenda

24. 75% of Indonesian mobile browsers use social networks Only 39% of Indian browsers use social networking. Social networking is interactive and lends itself to faster data speeds. India currently doesn’t have mass market 3G services, Indonesia does. Search is the most popular mobileInternet activity in India. Indian browsers look for cricket scores, Indonesian for soccer (football). Countries: India + Indonesia Date: July-August 2010 N= 2138

25. Over 90% browse the mobile Internet at home With roughly half of Indonesian and Indian mobile browsers not using the desktop internet and over 90% using it in the home, it becomes clear that the mobile will play a very different role in these Asian countries compared to western markets. Countries: India + Indonesia Date: July-August 2010 N= 2138

26. 57% of the Indian ‘mobile only’ don’t have a bank account In India, not only do the ‘mobile only’ not use the desktop internet but 57% also don’t have bank account. There is a huge opportunity for the previously unbanked and unconnected to use electronic payments to purchase goods and services. Everyone of this 57% has a billing relationship with their mobile operator. Countries: India Date: July 2010 N= 1070

27. The Mobile Only Internet Generation Mobile Internet Usage in: Africa Asia Net Promoter for Mobile Internet Agenda

29. Passives (score 7-8) are satisfied but unenthusiastic customers

30. Detractors (score 0-6) are unhappy customers who impede growth through negative word-of-mouth.Net Promoter Score (NPS) = percentage of customers who are Promoters minus percentage of customers who are Detractors.

31. Consumers love the mobile Internet The mobile internet is going through significant growth in terms of unique users (see comScore, Opera or Admob stats). There are significantly more promoters of the mobile Internet than detractors, meaning that most people are recommending the mobile internet to friends, providing word of mouth momentum and provoking future growth. Countries: Nigeria, Kenya + US Date: October- November 2010 N= 3501

32. In Africa – Opera makes a big difference Nigerian Opera Mini browsers are far more likely to recommend the internet to friends and familythan the average browser. The vast majority of mobile internet browsers in Nigeria use feature phones. Countries: Nigeria Date: October 2010 N= 1167

33. In the US – high-end smartphones make difference Mobile browsers with high end smartphones (Android and iPhone) are far more likely to recommend the mobile internet to friends and family. Countries: US Date: November 2010 N= 1290

34. Alistair Hill On Device Research alistair@ondeviceresearch.com +44 (0) 7931 518 232 Thank You