Mobile Internet & Smartphone Adoption

New Insights into Consumer Usage of Mobile Devices, the Shift to Smartphones & the Emergence of Tablets United States (US), United Kingdom (UK), Germany (DE), France (FR) & Japan (JP) Ipsos MediaCT Germany
The Media, Content and Technology Research Specialists January 2011 Research conducted in January+February 2011 (phase 1) and September+October 2011 (phase 2).

Key Insights
To gain greater insight into consumer usage of mobile devices, the shift to smartphones and the emergence of tablets as a fourth screen we conducted original research amongst the total population in the US, UK, Germany, France and Japan. Phase 1 of the research was conducted in January and February 2011 and Phase 2 in September and October 2011. Key insights include:

45% 38% 38% 23% 17%

More consumers use a mobile phone (feature phone or smartphone)

than a computer (desktop or laptop) across all five countries. Consumers are clearly shifting from feature phones to smartphones and are increasingly using their smartphones for Internet access. However, smartphone owners are continuing to get online on their computers. Consumers are embracing tablets as the fourth screen. Tablet usage increased across all five countries with the highest penetration in the US. The rate of tablet usage is even higher amongst smartphone owners - hitting 17% in the US, 11% in Japan and 10% in the UK. The demographics of smartphone users are also shifting, with an increasing percentage of women and those aged 45+ adopting smartphones. Smartphone users continue to be comparatively highly educated and have higher than average income.

Percentage of Smartphone Users by Country

*smartphones measured are all what consumers named private or personal devices, does not include devices provided by employers.
Google Confidential and Proprietary

Consumer Usage by Device

More Consumers Use a Mobile Phone than Use a Computer

Feature phone / Smartphone Netcount Laptop / Desktop Desktop PC Laptop / Notebook Media player with web access Netbook / Webbook TabletPC / Slate / Pad Handheld gaming device eReader
0%

78% 76% 69% 68% 51% 49% 48% 51% 24% 19% 10% 8% 9% 11% 15% 13% 9% 10%
25% 50% 75% 100% 0%

87% 89% 74% 75% 43% 43% 56% 60% 17% 17% 8% 8% 4% 6% 17% 15% 3% 5%
25% 50% 75% 100% 0%

74% 80% 74% 79% 53% 56% 46% 52% 23% 18% 5% 4% 3% 5% 14% 10% 1% 1%
25% 50% 75% 100% 0%

76% 73% 73% 72% 51% 49% 46% 49% 12% 16% 8% 8% 3% 6% 7% 6% 1% 1%
25% 50% 75% 100% 0%

96% 96% 86% 86% 60% 58% 63% 65% 30% 34% 4% 4% 5% 6% 42% 38% 2% 2%
25% 50% 75% 100%

Phase 1 (Jan+Feb 2011) Phase 2 (Sept+Oct 2011)

Base: All respondents, n=2000 per country per wave Q1: Which, if any, of the following devices do you currently use? Google Confidential and Proprietary 3

Smartphone Ownership is on the Rise

UK 30%

UK
UK 45%

DE 18%

DE 23% JP 6% JP 17%

45%

FR US 31% US 27% 38%

FR 38%

Phase 1 (Jan+Feb 2011) Phase 2 (Sept+Oct 2011)

Base: All respondents, n=2000 per country per wave Q1: Which, if any, of the following devices do you currently use? Q6: And which of the following best describes your phones?

Share of Feature Phones vs. Smartphones

Clear Consumer Shift from Feature Phones to Smartphones

31% Smartphone 38%

30%

27%

18%

6%

45%

38%

23%

17%

47% Feature Phone 39%

57%

45%

57%

21%

43%

39%

50%

JP only High-spec/ Feature Phone*: 18% W1: 72% W2: 65%

25% 50% 75% 100%

0%

25% 50% 75% 100% 0%

25% 50% 75% 100%

0%

25% 50% 75% 100%

0%

25% 50% 75% 100% 0%

Base: All respondents, n=2000 per country per wave Q1: Which, if any, of the following devices do you currently use? Q6: And which of the following best describes your phones? *a mobile phone without PC-like capabilities but can access mobile-specific sites, has GPS, wallet-function and/or MP3 capabilities (only Japan)

Phase 1 (Jan+Feb 2011) Phase 2 (Sept+Oct 2011)

Google Confidential and Proprietary 5

Daily Internet Usage on Smartphones

Consumers Increasingly Using Smartphones for Internet Access

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% n=619 n=767 n=603 n=894 n=539 n=758 n=367 n=466 n=117 n=341

91% 67% 69% 50% 54% 41% 36% 39% 49%

88%

Phase 1 (Jan+Feb 2011) Phase 2 (Sept+Oct 2011)

Base: All main privately used smartphones Q9: And how frequently do you use the Internet in general and specific services and types of websites on your smartphone? Google Confidential and Proprietary 6

Smartphone Users: Daily Internet Usage on Desktop or Laptop Computer

Smartphone Owners Continue to Access the Internet on their Computer

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% n=559 n=671 n=562 n=818 n=510 n=732 n=354 n=422 n=112 n=319

78%

80%

79%

78%

83%

80%

80%

74%

84%

73%

Base: All private smartphone users with PC or laptop Q10: And how frequently do you use the Internet in general and specific services and types of websites on your computer?

Phase 1 (Jan+Feb 2011) Phase 2 (Sept+Oct 2011)

Google Confidential and Proprietary 7

Smartphone Users: Usage of Laptops, Desktops and Tablets

More Laptops than Desktop across all countries, Tablets gaining share

Laptop / Notebook / Netbook / Webbook

73%

77%

69%

67%

69%

Desktop PC

57%

44%

62%

56%

54%

TabletPC / Slate / Pad

17%

10%

8%

8%

11%

0%

25% 50% 75% 100% 0%

25% 50% 75% 100%

0%

25% 50% 75% 100%

0%

25% 50% 75% 100% 0%

25% 50% 75% 100%

Base: All private smartphone users Q2a: For which purposes do you use [device]? Displayed is private usage.

Phase 2 (Sept+Oct 2011)

Google Confidential and Proprietary 8

Duration of Smartphone Usage

More Consumers are Long-Time Smartphone Owners

Phase 1 100%

Phase 2

Phase 1 Phase 2

Phase 1 Phase 2

Phase 1 Phase 2

Phase 1 Phase 2

More than 2 years More than 1 year up to 2 years 7 to 12 months 4 to 6 months Up to 3 months

8%
90% 80% 70% 60% 50%

18%

10%

7% 18% 26%

20% 23% 24%

13%

13%

9%

7% 15%

26% 28% 29% 24% 21% 23% 19% 24% 19% 16% 22% 28% 30%

28%

25% 31% 21%

27%

17%
40% 30% 20% 10% 0%

17% 17% 23%

16%

20%

21%

21% 29%

30% 12% 18% 17% 17%

20%

18%

17%

18%

Base: All main privately used smartphones Q8: How long have you been using your smartphone?

Google Confidential and Proprietary

Demographics of Smartphone Users - 1/2

Wave 1

Wave 2

Wave 1

Wave 2

Wave 1 Wave 1

Wave 2 Wave 2

Wave 1 Wave 1

Wave 2 Wave 2

Wave 1 Wave 1

Wave 2 Wave 2

Age

18 - 24 Years 25 - 34 Years 35 - 44 Years 45 - 54 Years 55 + Years Average Female Male Low Middle High Active (full + part time) Inactive

21% 27% 18% 21% 13%

23% 23% 17% 24% 13%

21% 26% 26% 15%

20% 26% 25% 17%

27% 31% 21% 11%

20% 29% 22% 15%

21% 29% 19% 19%

22% 24% 22% 16%

21% 33% 19% 14%

28% 32% 20% 13%

10% 14% 13% 16% 13% 7% 13% 13% 38,2 38,6 37,5 37,8 34,9 37,5 37,3 38,4 35,9 33,7 47% 53% 32% 28% 39% 74% 25% 49% 51% 35% 27% 38% 71% 29% 47% 53% 22% 38% 40% 75% 25% 47% 53% 24% 40% 35% 73% 26% 45% 55% 7% 25% 67% 65% 35% 47% 53% 5% 24% 69% 68% 32% 37% 63% 14% 31% 54% 70% 30% 42% 58% 16% 32% 51% 73% 26% 27% 73% 2% 43% 56% 82% 18% 37% 63% 1% 59% 39% 71% 29%

Gender

Education

Employment Status

Base: All private smartphone users Google Confidential and Proprietary 10

Demographics of Smartphone Users - 2/2

Wave 1

Wave 2

Wave 1

Wave 2

Wave 1 Wave 1

Wave 2 Wave 2

Wave 1 Wave 1

Wave 2 Wave 2

Wave 1 Wave 1

Wave 2 Wave 2

Marital Status

Alone (US: Not married) Together (US: Married) 1 Person 2 Persons 3 Persons 4 Persons and more Average 0 Children 1 Child 2 Children 3 Children and more Average Top Middle Low No answer

44% 55% 13% 22% 23% 42% 3,2 51% 20% 17% 12% 1,0 39% 35% 15% 11%

49% 51% 14% 25% 23% 38% 3,1 56% 17% 17% 10% 0,8 40% 31% 19% 10%

44% 55% 9% 30% 20% 41% 3,2 56% 18% 18% 8% 0,8 59% 11% 8% 22%

45% 55% 11% 28% 23% 38% 3,1 56% 18% 18% 8% 0,8 51% 11% 9% 29%

43% 56% 16% 29% 18% 37% 3,0 57% 15% 18% 10% 0,8 45% 23% 9% 23%

38% 62% 16% 30% 17% 37% 2,9 55% 18% 19% 8% 0,8 42% 17% 6% 35%

40% 59% 20% 32% 17% 31% 2,8 64% 18% 12% 6% 0,6 40% 17% 16% 27%

39% 59% 19% 34% 20% 27% 2,7 65% 17% 13% 5% 0,6 29% 14% 14% 43%

44% 56% 13% 9% 23% 55% 3,4 56% 18% 21% 5% 0,7 17% 36% 14% 33%

47% 54% 9% 12% 20% 59% 3,6 63% 12% 21% 4% 0,6 16% 28% 20% 36%

Household size

Number of children

Household income

Base: All private smartphone users Google Confidential and Proprietary 11

Background:

Research Design: Method: CATI interviews (random digital dial, fixed / mobile sample depending on country) Target group: General population aged 18+ years Sample Size: n=2000 per country, representative of the population Questionnaire: Usage of devices / mobile phones / smartphones Use of brands and operating systems Internet usage behaviour, demographics

The mobile internet is todays main driver of growth in time spent online. Rapid consumer adaptation creates opportunities for businesses to engage with consumers.

Gaining deep insight into usage patterns provides the base and starting point of offering products, services as well as information satisfying true customer demands.

Research Objectives: This survey is to measure the significance of mobile Internet usage on smartphones across the world. It accomplishes the mission of covering not only the digitally educated population knowing what device they are using but also users unaware of technical differences. The developed procedure is key to valid figures on a highly representative base.