GLOBAL CONSUMER SURVEY 2013

Understanding worldwide attitudes, behaviours and trends in mobile content and commerce: a 13-country study

EXECUTIVE SUMMARY
The MEF Global Consumer Survey 2013, now in its third year, uniquely researches the behaviours and attitudes of mobile media users from across the globe in both developed and growth markets namely Brazil, China, India, Indonesia, Kenya, Kingdom of Saudi Arabia, Mexico, Qatar, South Africa, UAE, UK and US.

Mobile Content and Commerce Activity by Country 2013

97%

94%

91%

90%

90%

88%

87%

86%

86%

81%

79%

77%

71%

Kenya

South Africa

UK

Nigeria

USA

Saudi Arabia

China

UAE

Indonesia Qatar

India

Mexico

Brazil

The 13-country study identifies a discernable shift in the purchasing of digital goods as consumers embrace an era of Mobile 3.0 and confirms that the use of the mobile phone to buy items is now firmly established in mainstream consumer consumption. Mobile content and commerce activity among consumers continues to boom across all regions, led by mobile-first markets where in Kenya (97%) and South Africa (94%) of consumers actively engage on mobile 65% of all mobile media users globally have purchased goods or services from their mobile device Fall in purchase volumes of digital content identified for the first time from 54% of mobile media users in 2012 to 42% in 2013 Value of goods & services consumed has shifted with a decline in low spend items by 6% and high spend items (+$150) jumping to 39% 61% of mobile media users have downloaded a free app Freemium model most prevalent in developed markets (US, UK, China) where 72% of users have downloaded a free app in the last six months. Growth markets scale below global average, with Latin America (Brazil, Mexico) the exception at 67% Trust is an even greater barrier to mobile content and commerce adoption than ever cited by 40% of 2013 respondents

MEF 2013. All Rights Reserved. No part of this publication may be reproduced, distributed or made available without permission of the copyright owner.

KEY FINDINGS

THE RISE OF THE BIG SPENDER

Digital goods still top the list at 42 per cent, but a quarter of consumers globally now buy physical and perishable goods across all 13 countries in the study. Interestingly, this years study also identified a slight fall in purchase volumes against 2012 globally from 70 per cent of all mobile media users to 65 per cent. This could be seen as alarming for the mobile industry. However, there is a broader picture to consider. The research reveals a substantial rise in the proportion of mobile media users prepared to buy high-value items through the handset. The findings show that, while the number of purchases may be falling, the value of individual purchases is going up.

2013 PURCHASES VOLUMES

65%
43%

Mobile Purchases Spend

37% 26% 24%

39% 31%

Low Spend

Medium Spend Total Sample 2012 Total Sample 2013

High Spend

In 2012, 43 per cent of all purchases were defined as low spend (under $15.99 or equivalent), 26 per cent were medium spend ($16 to $150.99) while 31 per cent were high spend (over $151). For 2013, the proportion of low and medium priced purchases both fell. Meanwhile high spend jumped eight points to 39 per cent. The trend is set to continue. In 2012, 28 per cent were prepared to purchase high value items. The figure rose to 35 per cent in 2013.

MOBILE 3.0
In mobile content and commerces first phase, consumers bought simple personalisation products such as ringtones and text-based alerts. Then they moved to downloadable apps. Now, they are using their phones to perform online shopping while embracing a new breed of super apps. The latter are displacing more disposable items. They include products such as music subscription services, which offer a very different model from the individual song and film downloads they cannibalize. Meanwhile a new breed of best-selling games, with immersive gameplay engines and in-app purchasing models, provide months of play rather than a few days diversion. This trend is not limited to the developed markets covered in the study: US, UK and China. A significant number of users in growth market regions are themselves moving past the premium content phase and into a space defined by smartphones and apps.

MEF 2013. All Rights Reserved. No part of this publication may be reproduced, distributed or made available without permission of the copyright owner.

CONSUMER TRUST REMAINS THE KEY BARRIER

In 2013, 40 per cent of mobile media users cite it as an issue, compared with 35 per cent in 2012 and 27 per cent in 2011. Its easily the most significant impediment to purchase. After trust, 26 per cent of users say they simply dont see a need to make mobile purchases and 25 per cent say they are deterred by slow network speeds.
40% 35% 27% 25% 25% 26% 26% 16% 14% 15% 13% 14% 18% 14% 13% 13% 12%

Barriers to Purchase

10% 11%

9% 10%

6% 7%

9%

Trust Nett

My network is too slow/takes too long to download

I have no need to

You have to give/share too much personal information

Poor browsing experience

I cant find what I want to buy

Its not easy enough

I cant buy what I want

I didnt know I could

Had a previous bad experience

Total 2011

Total 2012

Total 2013

THE SECOND SCREEN HABIT IS NOW MAINSTREAM

The research showed 89 per cent of all mobile media users use another media while browsing the web on their phone. 35 per cent of them watch TV and 20 per cent use a PC/laptop. The second screen habit is well-established across all countries in the survey. But there are substantial differences when it comes to individual media. Thus, 49 per cent of mobile media users in developed markets use the TV while browsing on the phone against just 24 per cent of Asian users. Users in the LATAM region are especially keen on second screening with the TV: 42 per cent of mobile media users in Mexico and Brazil do this. While many consumers in developed markets are familiar with the idea of using a phone in front of a TV or laptop, their counterparts in growth markets are using two phones. The research shows Mexico, UAE and Qatar all scoring above the global average in their use of another phone as a second screen. But Indonesia is the most remarkable, with 51 per cent of mobile media users doing so.

OF MOBILE MEDIA USERS USE ANOTHER SCREEN WHEN MOBILE WEB BROWSING

89%

Media Usage while browsing on Mobile

89%

89%

90%

89%

88%

86%

90%

Total Sample 2013

Male

Female

Under 35

Over 35

Feature Phone

Smartphone

MEF 2013. All Rights Reserved. No part of this publication may be reproduced, distributed or made available without permission of the copyright owner.

ABOUT THE REPORT The Global Consumer Survey is commissioned by MEF the global community for mobile content and commerce with analysis from Tim Green, editor-in-chief Mobile Money Revolution and associate editor, Mobile Entertainment. The survey was carried out by On Device Research in Q3 2013, which questioned 10,000 mobile media users in 13 countries, namely: US, UK, China, South Africa, Nigeria, Kenya, Indonesia, India, Brazil, Mexico, UAE, Qatar and Kingdom of Saudi Arabia The study digs deep into consumer trends and attitudes, providing insight and analysis on their wider industry impact. The report delivers insight that can help both mobile specialists and those who are new to mobile to develop targeted mobile strategies and fully exploit the rich opportunities that mobile provides. The report delivers insight that can help both mobile specialists and those who are new to mobile to develop targeted mobile strategies and fully exploit the rich opportunities that mobile provides. To find out more, download the full MEF Global Consumer Survey 2013. MEF members can download the report and access the full 13 country datasets for free. Non-members can purchase the report, cost 1950. More information at www.mefmobile.org

ABOUT MEF
MEF is the leading global trade association for companies wishing to engage consumers and monetize their goods, services and digital products via the mobile connected device. With global headquarters in London and operational chapters and offices in Africa, Asia, EMEA, Latin America, Middle East and North America, MEF is a member network with global reach and strong local representation, ideally placed to drive market growth. Established in 2000, MEF provides an impartial, consistent and powerful voice for the foremost companies and entrepreneurs from across the mobile content and commerce value chain.

MEF 2013. All Rights Reserved. No part of this publication may be reproduced, distributed or made available without permission of the copyright owner.