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Research Note:Mobile Adoption & Usage in a TV Dominant Era

GfK. Growth from Knowledge

© 2012 GfK Custom Research North America

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SELECTED FINDINGS FROM...

SMARTPHONES AND TABLETS

A HOW PEOPLE USE® MEDIA REPORT

– May 2012 –

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Base: Persons 18-34 who use smartphones or tablets Source: GfK MultiMedia Mentor® Spring 2011, 2012

Average Daily Video Share Among 18-34 Almost Doubled, From 9% - 16%

Share of internet use among Smartphone and Tablet users, 18-34

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Base: Total respondents

+

or

Smart-phone

TabletTablet

By Generation…

Gen Y13-32

Gen X33-46

Boomers47-54

Own 50% 48% 27%Own or use 56% 52% 30%

Own 18% 20% 16%Own or use 27% 24% 19%

Own both 13% 14% 9%Own or use both 20% 18% 10%

Own either 55% 53% 34%Own or use

either62% 57% 38%

Indicates significantly higher than total, statistically significant at 95%+ Indicates significantly higher than total, statistically significant at 95%+

Device Ownership

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Users tend to participate in more activities on their Smartphone but are more likely to watch programs from TV networks on their Tablet

Base: Smartphone user; Tablet user.

Activities Regularly Done on Smartphone or Tablet

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More than half of Smartphone and Tablet users use their device at least sometimes while watching TV in primetime

Base: Smartphone user (N=879); Tablet user (N=416)Base Smartphone multitasker (N=490); Tablet multitasker (N=196)

Multi-Taskers Use Smartphone or Tablet At Least Sometimes While Watching Primetime TV

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Younger users are more likely to use their Smartphone or Tablet simultaneously while watching TV in primetime

Yes53%

Yes65%

Base: Smartphone user); Tablet user

Gen Y13-32

Gen X33-46

Boomers47-54

Yes48%

Yes35%

Yes48%

Use Smartphone or Tablet At Least Sometimes While Watching Primetime TV

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The average Smartphone or Tablet user has, on average, less than one TV-related app on their phone

Yes23%

0.7mean #

of TV apps

0.8mean # of TV apps

Yes29%

2.7 among those with TV app

2.9 among those w/ TV app

Have TV-Related Apps on Smartphone or Tablet

Base: Smartphone user); Tablet user

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Only 12% of Smartphone users and 8% of Tablet users use the app simultaneously while the program is being aired

7% 5%

5%

26%

23% 33%

27%

37%3%

33%

Base: Smartphone TV app downloaded; Tablet TV app downloaded

All the time Often Sometimes Rarely Never

13% 79%

70%

8%

12%19%

More likely to watch Makes no difference

Less likely to watch

Similar net impact of +4% in 2009

Frequency of TV App Use While Watching Content and Effect on Viewing

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Tablet users are more likely to use TV-related apps for watching entire programs or movies

Base: Smartphone TV app downloaded; Tablet TV app downloaded

Reasons for TV-Related App Use

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Tablet users who watch TV programs or movies are more likely to have noticed ads before or during their viewing

Base: Smartphone TV program/movie viewers (N=189); Tablet TV program/movie viewers (N=132)

Noticed Any Ad Types on Smartphone / Tablet

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Ads take away from my enjoyment of using apps on my smartphone/tablet

Ads are a fair price to pay for free download and use of apps on

my smartphone/tablet

The ads I see while using apps on my smartphone/tablet

generally fit well with the content

The ads I see while using apps on my

smartphone/tablet are usually relevant to my needs and interests

I am more inclined to purchase products and services from companies that

advertise on apps on my smartphone/tablet

Mobile users do not enjoy ads but most feel ads are a fair price to pay for free download/app use

Base: Smartphone apps user; Tablet apps user

Feelings Towards Marketing Messages in Apps

Agree (T2B)

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Younger users are more willing to trade ads for free app use; Gen X is the most willing to pay for ad-free app use

40%

30%

41%

37%

47%

17%

27%

23%

35%

Gen Y 13-32

Gen X 33-46

Boomers 47-54

Base: Any apps downloaded and used

Yes, I would be willing to have ads on screen in exchange for free use

of an appDepends on the app content

and how I will use it

No, I would prefer to pay and not have

ads

Willingness to Exchange Small Ad on Screen for Free Apps

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Gen Y is the most likely to feel their mobile viewing is a replacement to their regular TV viewing

Gen Y13-32

Gen X33-46

Boomers47-54

Base: Smartphone TV program/movie viewers *Caution: Small base.

Replaces regular TV Addition to regular TV Both

Details of TV Viewership on Smartphone or Tablet

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Smartphone viewers continue to pay for fewer TV programs and movies than in the past

Base: Smartphone TV program/movie viewers (N=189); Tablet TV program/movie viewers (N=132)

26% 32%

Down from 50% in 2007 and 34% in 2009

How Many TV Programs and Movies on Smartphone / Tablet Pay a Fee For

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What are people saying about watching TV programs and movies on Smartphones / Tablets

Like: Convenience & Portability Dislike: Screensize, Commercials & Lack of Full Episodes from TV Networks

“…It's faster and mobile, while being on demand. There is no reason not to watch programs

on my phone…”

“…I can watch anytime, anywhere. I don't have to remember to tune in at a

specific time like with regular cable…”

“…Not having to sit down at a scheduled time, or schedule recordings of episodes…”

“…Small screen and sometimes poor quality picture…”

“…Lack of availability from TV networks to release full

episodes…”

“…You would think there would be less commercials online than

TV. They have a bunch of commercials…”

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