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Nielsen mobile-youth-around-the-world-dec-2010
1.
Mobile Youth Around
the World December 2010
2.
Overview From
texting to video to social networking, mobile phones are taking an ever-expanding role in our daily lives. And young people around the world are more immersed in mobile technology than any previous generation. The Nielsen Company analyzes and tracks mobile usage in North America, Africa, Asia, Europe, Latin America, and the Middle East. In this report, we’ll highlight mobile youth data from Brazil, Russia, India, China, Vietnam, Germany, US, UK, Spain and Italy. Usage patterns vary greatly among youth throughout the world, demonstrating how culture, economy and age can all play a large part in mobile behavior. These factors affect device selection, payment and usage. Understanding whether behaviors are a function of age or other environmental factors can help marketers communicate more effectively with this key demographic through mobile services and devices. Italy has the highest smartphone penetration among youth 15-24; What kind of phones do smartphone users skew male everywhere but US young people use? Smartphone v. Feature Phone, 15-24 H1 2010 Smartphone v. Feature Phone Out of all the countries examined, Italy 53% 67% 64% 62% leads in smartphone penetration with 75% 71% 71% 90% 47 percent of young people ages 15-24 owning a smartphone, compared to 31 38% 47% percent of adults over 25. Smartphone 29% 29% 33% 36% 25% 10% penetration among European youth India Russia China Germany US UK Spain Italy averages 28 percent in the countries surveyed, while penetration among older Smartphone Feature Phone adults in Europe is 27 percent. Gender of Smartphone Users, 15-24 As of Q2 2010, 28 percent of US mobile H1 2010 subscribers had smartphones. Youth in the United States exceed the population 20% 34% 38% 39% 39% 43% 47% average smartphone penetration by 5 55% percent. 80% All countries tend to skew male in 66% 62% 61% 61% 57% 53% 45% smartphone adoption with one notable exception—the US, where 55 percent of India Germany Italy China Spain Russia UK US smartphone users age 15-24 are female. In the overall US smartphone population, 55 Male Female percent were male. Source: H1 2010 Copyright © 2010 The Nielsen Company. 2
3.
Multiple SIM Cards
Italy is leading in multiple SIM usage One distinguishing factor of the US versus other countries’ mobile behavior Multiple SIM usage, Age 15-24 H1 2010 is multiple-SIM card usage. Outside the United States, it is not unusual for people to swap the SIM card in their phone in order to take advantage of different tariffs 71% and lower cost in-network calling from 78% 79% 80% 84% 84% 85% 86% mobile carriers. Multiple SIM usage is even more common in Brazil, Russia, India and China (BRIC) among youth, where adults 25+ have a lower usage rate. In Europe, 29% 22% 21% 20% youths use multiple SIMs 9 percent less 16% 16% 15% 14% than the adult average. In terms of the Italy Brazil Russia Germany UK Spain India China motivation behind having more than one Yes No SIM, Italian youth claim their primary reason is to take advantage of different Source: The Nielsen Company tariffs and free text messages. In China, young multiple SIM users are most likely to do so because of the ability to have Young people choose their own mobile devices different numbers for different people. Some device manufacturers are taking 100% Person Responsible for Device Selection advantage of this trend by creating devices H1 2010 that make it easy for consumers to insert 90% multiple SIMs into the same phone at the 80% same time. 70% 60% How did they choose 50% their device? 40% Person responsible for device 30% selection 20% An overwhelming majority of young 10% people throughout the world choose their own devices. Across the countries 0% surveyed, only 16 percent of young UK y ly n il ia a na US di an az ai ss Ita i Sp In Ch Br rm Ru people’s parents chose their phone. Ge Self Parent(s) Employer Friend(s) Spouse/Partner/ Other Boyfriend/Girlfriend Source: The Nielsen Company Copyright © 2010 The Nielsen Company. 3
4.
Price is top
ranked purchase driver in all countries Brazil Russia India 40% 31% 19% 10% 21% 18% 12% 12% 10% Design/Style Price Phone Brand/ Price Design/Style Form/Shape Price Battery Life Design/Style Previous Experience China US 14% 14% 22% 14% 10% 12% Form/Shape Price Design/Style Price QWERTY Design/Style input Source: The Nielsen Company Purchase Drivers Prepaid/Postpaid among youth is comparable to general population Price was the most common consideration in selecting a mobile phone for young people, though that is true among Prepaid/Postpaid, Age 15-24 other age groups, too. Adults in these H1 2010 countries rated price the most important 2% 3% 10% consideration, too. Youth aged 15 to 24 15% 42% 43% put price as the first purchase driver, with 59% 60% 76% the exception of Russian youth, 21 percent 98% 97% 90% 85% of whom placed design/style first. Around 14 percent of Brazilian adults say design/ 58% 57% 41% 40% style is the most important consideration, 24% compared to 7 percent of US adults. ia a il a ly y UK n US di in an az ai ss Ita In Ch Sp Br m Ru er How do they pay for G Prepaid Postpaid their phones? Prepaid/Postpaid, Age 25+ Prepaid v. postpaid H1 2010 Prepaid, also commonly referred to as 2% 7% 13% “pay as you go,” is a method of payment 23% 33% 48% where mobile credit is bought before 59% 78% 81% the service is activated. Unlike postpaid 98% 93% 87% services, which are often contract based, 77% 67% the minutes people can talk are paid for 52% 41% prior to use and require minimal credit 22% 19% history. Outside the United States, ia a a il ly UK y n US prepaying for service is a common di in an az ai ss Ita Sp In Ch Br m Ru er method, often due to a lack of the G required infrastructure and ecosphere to Prepaid Postpaid track credit history. At 24 percent, young Source: The Nielsen Company people in the US are much less likely to Copyright © 2010 The Nielsen Company. 4
5.
prepay than the
emerging markets, which all have prepaid rates over 85 percent. Personal payment increases 30% on average once teens move into young adulthood This data is consistent with the global adult population, except postpaid as Pay for own mobile service, Age 15-19 a majority tends to slightly increase in H1 2010 the 25+ bracket, which may be a more suitable age for a contractual agreement. 56% 56% 52% 47% 35% Person responsible for mobile 27% 25% 21% charges Personal payment for mobile charges increases as teens move into young Germany Brazil UK Russia India US Spain Italy adulthood. Across the countries surveyed, personal payment increases on average thirty percent once mobile users exit their Pay for own mobile service, Age 20-24 teen years. Germany and Brazil are tied H1 2010 for the highest percentage of teens who 88% 84% 82% say they pay their own bill, while Italy has 80% the lowest. The US has the lowest rate 66% 65% of personal payment among ages 20-24, 54% with only 45 percent of youth in that age 45% bracket paying for their own service. How do they use their Russia Germany Brazil UK Spain Italy India US phones? Source: The Nielsen Company Advanced data usage Chinese youth lead the way in advanced data usage Youth in China and the US lead the way Advanced Data Users, Age 15-24 among young mobile subscribers who use H1 2010 Chart Title advanced data. Eighty-four percent of 3% Chinese youth use their phones beyond 2% 6% 6% 7% 10% 11% 14% 14% voice and text compared to 47 percent of 12% 27% 35% Chinese adults. Eighty-three percent of 26% 31% 32% US youth use advanced data, 32 percent 38% 48% higher than US adults. 84% 83% 51% 71% 68% 62% 58% 47% 40% 13% China US Russia UK Italy Spain Germany Brazil India Advanced Data User SMS/Voice user Voice-only user Source: The Nielsen Company Copyright © 2010 The Nielsen Company. 5
6.
Types of Advanced
Data Usage Chinese youth lead in mobile internet usage, US top mobile e-mail users At 70 percent, young Chinese advanced data users have a significantly higher Features used in the last 30 days, 15-24 73% mobile internet usage rate than the rest H1 2010 of the world. In the UK and US, females have at least a 10 percent higher rate of 47% 45% 48% messaging use than males. 33%33% 39% 39%39% 29% 29% 24% 26%26% 26% 23% Among European youth, those in the UK 19% 14% are more likely to use mobile internet, 5% 5% 6% 5% 5% 7% 4% 7% 2% 4% 3% 4% with over 20 percent more usage than other European countries. China US Russia Brazil India Mobile Internet Ringtone Downloads Instant Messaging Text and Picture Messaging Screensaver Downloads Game Downloads Email Messaging tends to skew female in the Source: The Nielsen Company majority of markets, except for a few outliers. Indian males are twice as likely as UK has over 20% more mobile internet users than other European countries Indian females to use mobile messaging. Features used in the last 30 days, 15-24 China also skews slightly male in both 46% H1 2010 types of messaging, but only by a 4 25%23% 24% percent margin. In the UK and US, females 22% 16% 20% 15% 15% 14% 15% 15% 21% 12% 13% 11% 13% have at least a 10 percent higher rate than 11% 9% 9% 10% 6% 8% 10% 10% 9% 9% 10% males who use messaging services. UK Germany Italy Spain Mobile internet App Downloads Email Instant messaging Game downloads Screensaver/Wallpaper Downloads Ringtone downloads Source: The Nielsen Company SMS and MMS messaging generally skews female, except for China and India Messaging, Age 15-24 H1 2010 SMS Text Messaging MMS Picture Messaging China 48% China 48% 52% 52% India 30% India 18% 70% 82% Russia 50% Russia 49% 50% 51% Brazil 53% Brazil 49% 47% 51% Female US 55% US 59% Male 45% 41% Spain 52% Spain 50% 48% 50% Italy 51% Italy 52% 49% 48% 49% 60% Germany 51% Germany 40% UK 58% UK 63% 42% 37% Source: The Nielsen Company Copyright © 2010 The Nielsen Company. 6
7.
Mobile Youth in
Youth ages 15 to 24 make up 20% of population. Half subscribe to mobile services. Vietnam Populations Twenty percent of the Vietnamese population is between the ages of 15 Youth Market and 24, and half of these young people already use mobile services. 54% 48% Like their counterparts in other Current users >24 years old countries, young people in Vietnam use 20% more data than average. Nine percent 15-24 years old -24 of them access the mobile internet on a 35% Prospective users regular basis compared to 3 percent of 26% all Vietnamese mobile users. Eighteen 17% Non-users <15 years old percent use multimedia services, too, compared to 7 percent of Vietnamese Source: The Nielsen Company mobile users of all ages. But when it comes to understanding Vietnamese youth use more advanced data than other age segments the purchase behaviors of mobile youth Young Generation Avg. Other Ages —particularly with regard to service choices—it is important to distinguish 2009 2010 2009 2010 between teens and young adults. Teenagers’ decisions are still guided by Multimedia Services 10% 18% 06% 07% their parents, who tend to control the purse strings. Young adults increasingly Mobile Internet 01% 09% 00% 03% make their own choices, are more subject to peer influence and have more control over their own pocket money. Source: Mobile Insights 2010, 2009 These distinctions are particularly to affect the top-up behavior Promotions become more important when apparent when we look at how young of teens or better that of their youth have to pay for mobile services people choose their mobile service. Like parents who actually pay for it. themselves. most emerging countries, Vietnam is primarily a prepaid market. That is, unlike But promotions are very Teens Young Adults the United States where mobile users important to young adults ages Who Pays Parents Self: Pocket Money enter into a long-term contract with a 18-24. They will actually wait for the right promotion to top Amount 100,000vnd/ 50,000vnd is more particular wireless operator and pay on a each time preferred monthly basis, Vietnamese mobile users up, or top up even if they don’t need the minutes just to take Frequency 1-2 times a 2-3 times a month pay in advance for their mobile service advantage of a promotion. Their month and then “top up” their minutes when these run out. increased price-sensitivity is Promotions Top up on Wait for because they are now paying for need basis promotions, top up The parents of Vietnamese teenagers their own mobile service. They even if not needed tend to be responsible for paying for their tend to spend half as much as in promo period kids’ mobile services. They tend to spend the parents of teenagers (50,000 vnd) each time, but top up more Source: The Nielsen Company 100,000 vnd once or twice a month and pay to top up their kids’ phones frequently, perhaps two or three as needed. Promotions do not seem times a month. Copyright © 2010 The Nielsen Company. 7
8.
US Teen Texting
Text usage by age If it seems like American teens are Q2 2009 - Q2 2010, Customer Value Metrics, National texting all the time, it’s probably because on average they’re sending 4000 or receiving 3,339 texts a month. 3500 That’s more than six per hour they’re 3000 awake—an 8 percent jump from last 2500 year. Using recent data from monthly 2000 1500 cell phone bills of more than 60,000 1000 mobile subscribers as well as survey data 500 from over 3,000 teens, Nielsen analyzed 0 mobile usage data among teens in the 13-17 18-24 25-34 35-44 45-54 55-64 65+ United States for the second quarter of 2010 (April 2010 – June 2010). No QTR 2, ’09 QTR 2, ’10 one texts more than teens (age 13-17), Source: The Nielsen Company especially teen females, who send and receive an average of 4,050 texts per Top reasons for mobile adoption vs. previous year month. Teen males also outpace other male age groups, sending and receiving Teens’ Top Reasons for Mobile Adoption Teen Subscribers (n=3,250/3,128) an average of 2,539 texts. Young adults (age 18-24) come in a distant second, exchanging 1,630 texts per month Text messaging 43% 42% (a comparatively meager three texts Safety 35% per hour). 34% Number One Reason for Getting Keeping in touch 34% with friends 36% a Phone? It’s Not Safety Anymore Keeping in touch 26% Texting is currently the centerpiece with family 25% of mobile teen behavior. Forty-three Always be available 22% 22% percent claim it is their primary reason Convenience 20% for getting a cell phone or mobile device, 20% which explains why QWERTY input Q2 2010 Friends have cell phone 17% is the first thing they look for when 18% Q2 2009 choosing their devices. Safety, which Avoid having to borrow 15% was the main reason for getting a phone a cell phone 15% in 2008, is now less important—it is now Avoid having to use 11% family home phone 11% in a virtual tie with the general desire to 10% stay in touch with friends. Privacy 11% Texting is Easier and Faster than Source: The Nielsen Company Voice Calls text messaging, considering it easier (22 and peaks at age 24, only adults over All of this texting activity has come at percent) and faster (20 percent) than voice 55 talk less than teens. Teen females, the expense of voice. Last year, teens calls (though still fun). Voice activity has who are more social with their phones, texted instead of calling because it was decreased 14 percent among teens, who average about 753 minutes per month, fun. Now, 78 percent of teens recognize average 646 minutes talking on the phone while males use around 525 minutes. the functionality and convenience of per month. While voice consumption rises Copyright © 2010 The Nielsen Company. 8
9.
Data and Apps
are Rising Stars Voice usage by age Ninety-four percent of teen subscribers Q2 2009 - Q2 2010, Customer Value Metrics, National self-identify as advanced data users, 1,200 turning to their cell phones for messaging, internet, multimedia, gaming 1,000 and other activities like downloads. 800 While teen usage does not reach levels 600 of activity seen by young adults, it has 400 increased substantially versus Q2 last 200 year, from 14 MB to 62 MB. This four- 0 fold increase is the largest jump among 13-17 18-24 25-34 35-44 45-54 55-64 65+ all age groups. Much of this boost is led by males, who are more gadget-savvy QTR 2, ’09 QTR 2, ’10 and consume 75 MB of data, versus 17 Source: The Nielsen Company MB in Q2 last year. Teen females use about 53 MB of data, compared to 11 MB a year ago. National data usage among teens Q2 2009 vs. Q2 2010 Teens are not only using more data, but they are also downloading a wider range Reported Application Usage (Use in Last 30 Days) of applications. Software downloads among teen subscribers who use apps Picture Messaging/MMS 55% enjoyed a solid 12 percent increase 62% in activity versus last year, from 26 40% to 38 percent. This includes popular Mobile internet 49% apps such as Facebook, Pandora and 38% 26% YouTube. Usage of the mobile web has Software downloads 38% also surpassed activity on pre-installed 38% games, ringtone downloads and instant 30% Email 38% messaging, too. Other mobile activities like mail and text alerts have also seen 30% significant growth. Text Alerts 38% 0 10 20 30 40 50 60 70 Customer Value Metrics Teen vs. Young Adult Usage - MB QTR 2, ’09 180 QTR 2, ’10 160 140 120 100 80 60 40 20 0 40% 13-17 18-24 49% Source: The Nielsen Company Copyright © 2010 The Nielsen Company. 9
10.
Mobile Insights Coverage In
2010, The Nielsen Company surveyed mobile consumers in 19 countries, including the countries listed below. The sample sizes indicated in the chart reflect all respondents, not just youth. Global Coverage Methodology Sample (per wave) Cadence Regional Coverage US Online 75,000 Quarterly National Germany Online 5,000 Q1 National Spain Online 8,500 Quarterly National Italy Online 5,000 Quarterly National UK Online 5,000 Q1 National Brazil Face to Face 5,000 Q2 10 urban cities Russia Face to Face 5,000 Q1 9 urban cities China Face to Face 5,000 Q1 Tier 1, 2, and 3 cities India Face to Face 5,000 Q2 22 telecom circles About The Nielsen Company The Nielsen Company is a global information and media company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and business publications. The privately held company is active in approximately 100 countries, with headquarters in New York, USA. For more information, please visit www.nielsen.com. Copyright © 2010 The Nielsen Company. All rights reserved. Printed in the USA. Nielsen and the Nielsen logo are trademarks or registered trademarks of CZT/ACN Trademarks, L.L.C. Other product and service names are trademarks or registered trademarks of their respective companies. 10/2510 10
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