Android continues to take chunks out of Apple, InMobi finds

by Marketing ON 8 May 2013

According to the latest InMobi, Australian Mobile Insights Report, Apple’s iOS smartphones continue to lose share to Android.

Between the months of January and March 2013, Apple’s smartphone share of impressions dropped 2% to 59% while Android grew 2% to 36% on the InMobi network.

The figure is impressive for the fact that the 23% margin is the nearest that Android has been to Apple before and displays a changing of the smartphone guards of sorts.

And this trend is not limited to local with other parts of the world, including New Zealand, showing Android is presently only 7.7% behind Apple.

Compounding Apple’s smartphone share loss, the iPhone also lost handset share of impressions for the first time in its history. While handset share decreased 5.4% to 45.7%, but it still held onto top spot.

Francisco Cordero, vice president and general manager of InMobi Australia and New Zealand, explains: “Android has come firing through this quarter, gaining on iOS following a great fourth quarter and Christmas sale period from Samsung which posted a record profit of AU$6.34 billion.”

The rise of the iPad has been good to Apple as it is still dominates the market, a 3% increase for the iPad, moving it to second most preferred tablet is a win despite the share loss to Android.

News isn’t great for Apple in overturning the market share with the launch of Facebook Home, the Samsung Galaxy S4 and the launch of the HTC Facebook phone piling on the heat.

“We believe that Android will maintain its momentum and close the margin between iOS even further next quarter,” says Cordero.

85% of mobile traffic to local business websites comes from Apple devices

by Marketing ON 11 April 2013

Despite Apple’s iOS and Google’s Android mobile operating systems battling neck and neck for share of the smartphone market in Australia, 85% of all mobile visits to local business websites are coming from only one of the those parties, a recent study from digital media firm Goop has found.

Apple has recently lost grip on its stronghold over the smartphone and tablet market in terms of market share, with Android devices matching or surpassing Apple in popularity among Australians, but that hasn’t stopped it dominating the important local shopping market.

Goop analysed three months of live traffic data from the web sites of more than 300 clients across Greater Geelong and regional Victoria.

“We were stunned to find that 85% of all mobile visits to our clients’ sites came from Apple devices,” says Goop’s Karl Morris. “And almost half of those visits came from iPads.”

“Safari [Apple's web browser] even out-locals Internet Explorer,” he says.

“The study found almost 35% of all visits to our clients’ sites were made on the Safari browser. Internet Explorer came second totalling 33%, with Chrome and Firefox coming in at third and fourth. Android, despite its incredible user growth, is lagging in fifth place.

“This is a big win for Apple,” Morris says.

“Local businesses looking to connect with shoppers are driving a large chunk of the digital advertising and site development market. This powerful position among local shoppers gives Apple an intriguing platform to build on,” Morris says. “Local businesses need to factor mobile shoppers into their mix.”

Facebook Home is not a phone, app or operating system – so what is it?

by Marketing ON 5 April 2013

Not quite a phone, but sort of – Facebook has revealed Facebook Home, a ‘suite of apps’ that take over a user’s Android phone, allowing the social networking site to be on the home screens of smartphones, with sponsored posts coming soon.

Facebook Home will also allow users’ Facebook News Feeds to roll over their locked screen. Items in the News Feed will able to be clicked on or swiped on the phone and opened.

Mashable.com reports that when Facebook CEO Mark Zuckerberg took the stage at Facebook’s headquarters in Silicon Valley last night, he frequently described the new software as, “putting people in front of apps.”

The software will also have a Chat Heads function, allowing the user to chat with friends while using other apps, chat heads include both Facebook messages and texts.

Marketing believes there will be no ads or sponsored posts on Facebook Home initially, but that there are plans to introduce sponsored posts in the near future.

Home will be available as a free download from the Google Play Store starting 12 April. It will work on the HTC One X, HTC One X+, Samsung Galaxy S III and Samsung Galaxy Note II. Home will also work on the forthcoming HTC One and Samsung Galaxy S4 with more devices to be included in the coming months.

There will also be the option to buy a phone with the software already installed with telecommunications giant AT&T offering the first HTC phone that exclusively uses the Home software.

Facebook Home will initially be released in the US, with other countries to have access to Home in the coming months. No date for an Australian launch has been confirmed.

Facebook have also released an ad about Home to accompany the launch:

Samsung confirms new smartwatch is in the works

by Marketing ON 21 March 2013

Hot on the heels of speculation that Apple is developing a smartwatch, Samsung confirmed reports that it too is preparing a connected wristwatch, probably under the Galaxy brand.

“We’ve been preparing the watch product for so long,” Lee Young Hee, executive VP of Samsung’s mobile business, told Bloomberg during an interview in Seoul. “We are working very hard to get ready for it. We are preparing products for the future, and the watch is definitely one of them,” he added.

The Samsung executive was coy about giving out details on the upcoming smartwatch functionality, including how much it would cost or when it will be available to buy. However, a ‘source with direct knowledge’ quoted by Reuters claims the smart wristwatch will perform many tasks of a smartphone.

Samsung’s acknowledgement gives credence to images posted in February on a South Korean message board, which purportedly show the interface of the smartwatch.

The images indicate the device would be called the Galaxy Altius, with features such as a clock, music player, maps, and an email client. It apparently runs on a customised version of Android, like the rest of the Samsung Galaxy devices line.

Although the Galaxy Altius would not be first smartwatch from Samsung, the timing of the new product confirmation is peculiar. Last month, the New York Times and Bloomberg reported that Apple has a team of around 100 engineers and product designers working on a smartwatch that would have some iPhone and iPad functionality, which they suggested means this development is beyond the experimentation project. As usual, Apple did not confirm the reports.

Samsung’s smartwatch history

Samsung has been working on smartwatches for over a decade, and has some patents dating back to 2003 on some designs, as UnwiredReview points out. (The image at the top of this story is the Samsung Proximo concept smartwatch from 2009 by Joahn Loekito.) However, none of the models were particularly successful. So it will be interesting to see whether Samsung will wait for Apple to release a smartwatch first before unveiling its own model – if Apple actually releases such a device.

Perhaps this year would be the year when wearable tech will become mainstream. Aside from Samsung and Apple’s wrist wear, Google is also finalising its Glass connected eye wear, and we have seen quasi-popular smartwatch examples from the likes of the Kickstarter-founded Pebble, which shipped some 25,000 units so far.

With Daniel Ionescu of TechHive and Macworld.

1 in 2 accepting of mobile ads, rapid ad upgrades end 2012

by Marketing ON 18 December 2012

Mobile advertising has experienced rapid change in the past six months as publishers respond to the burgeoning use of devices among most smartphone adopters, half of which claim they’re comfortable with mobile ads.

Mobile ad network InMobi’s mobile media consumption study found 54% of mobile users are as comfortable with mobile advertising as they are with TV or online advertising, while only 22% find them intrusive.

The high level of acceptance on what is a highly-personal device comes as good news for the industry and is evidence that improvements made to ad units over the past six months are keeping annoyance at commercial interruptions at bay, according to InMobi’s head of marketing, Marc Fine.

“Mobile ad units are evolving quite rapidly,” Fine says. “The competitive nature of the environment means there isn’t a publisher that isn’t putting user experience upfront.”

The majority of InMobi’s inventory is now between screen ads or ‘interstitials’, such as a unit shown between pages or between levels in a game, whereas at the start of the year more bottom of the page and interruptive ad units existed.

“We’ve definitely seen a shift in the past six months to ad units that don’t take away from the navigating experience or the user experience,” Fine believes, pointing to healthier click-through and engagement rates as a result.

The improvements to ad units comes as smartphone use continues to reach even deeper into the downtime of even late adopters of the technology, allowing publishers to capitalise on the use of the device as a companion to a range of experiences.

Of the 7.5 hours of media time each day, mobile accounts for 100 minutes, more than the 93 minutes spent online via desktop. Since the study was last conducted in February 2012, 50% more of the Australian population is using a mobile to alleviate boredom during downtimes or as a companion.

Most commonly, the smartphone is being used while ‘waiting for something’, a behaviour used by 86% of owners, up from 43% since February. Three in four now use their devices in bed, up from 30%, 66% while watching TV, up from just 36%, 64% while commuting and 48% while shopping.

User are becoming so addicted to the always-on appeal that many are also using in the bathroom, while spending time with family and in a meeting or class.

inmobi cons 12 1

Nine in ten claim to have noticed ads while partaking in these activities, with in-app ads the most recalled, among 63% of the sample, followed by search ads and ads on retailers websites, recalled by 41% and 29% respectively.

The impact of mobile ads on purchase decision is also growing, according to InMobi. As offline media consumption, particularly print media, decline, the perceived influence of advertising in the digital environment is up.

Respondents to the research are growing increasingly likely to rate mobile as an influence on their purchasing decision, with 27% of this opinion, compared to 24% in February. The perceived influence of radio and outdoor was also up, while the impact of print and TV is believed to have dropped.

inmobi cons 12 2

For Fine, this self-reported data tells of an increase in the efficacy of mobile advertising, but also highlights the importance of an omni-channel marketing approach. “Where mobile works the best is when it runs in conjunction with tv or radio, or outdoor… It’s that amplification of channels and the integration of messaging across multiple channels as to where you see the best results.

“That’s a trend that we’re going to see next year: it’s not about running campaigns in silos, it’s about cross-media amplification and how mobile can mobile can support and complement traditional channels like outdoor, TV and radio.”

News Corp’s tablet only The Daily to close

by Marketing ON 4 December 2012

News Corp’s tablet-only newspaper venture The Daily is to close its doors after failing to capture a large enough audience to sustain its operation.

Chief of the global media giant Rupert Murdoch announced the closure of the paid subscription title for December 15, the AFP reports.

The Daily launched in February 2011 as a new model for the news industry to tackle changing media consumption habits. It was as sold through Apple’s App Store and iTunes for US99c a week or $US39.99 a year.

Analysts put the publication’s failure down its limitation to one platform in an age where readers like to graze on news across different screens. It was also published once a day, failing to take advantage of the digital mediums ability to provide breaking news as a day unfolds.

Digital media specialist at the Poynter Institute, Jeff Sonderman, says research has shown tablet owners are ‘digital omnivores’ who consume media seamlessly across tablets, smartphones, PCs and print publications. “To serve them news on only one platform is not satisfying,” he wrote in a blog post.

The Daily was believed to have around 100,000 paying subscribers, well below the 500,000 Murdoch said it would need to break even.

The title was initially designed to work exclusively on iPads, and was only later made available on some Android devices and smartphones. Too heavy a reliance on Apple is also noted as a reason for its demise.

Murdoch also announced to staff that plans to split News Corporation into separate companies covering publishing and entertainment were to go ahead. The publishing operation, which includes News Limited in Australia and the company’s 50% ownership of Foxtel, will retain the name News Corporation, while its film and TV assets will be consolidated under the name Fox Group.

iPhone 5 fails to woo new Apple customers, Android retains lead

by Marketing ON 28 November 2012

Apple’s iPhone 5 has largely failed to woo new customers to the brand, taking the majority of its sales from existing iPhone owners to leave Android as the most-owned operating system in Australia.

Since overtaking Apple’s iOS as the most common smartphone operating system in July, Google’s Android has continued to pull ahead, despite September’s launch of the iPhone 5.

While the new iPhone’s release managed to boost iOS’ share of sales back up to equal with the combined sales of Android-based devices – a position it hasn’t occupied since December last year – it is yet to have an impact on the overall share of smartphone ownership in Apple’s favour.

Data from Kantar WorldPanel’s ComTech study of 10,000 Australian mobile phone owners, released exclusively to Marketing, shows that, as of the end of October, Android commanded 40% of smartphone market share compared to iOS’ 38%. In the month of October, the iPhone 5 accounted for 32% of smartphone sales, well above the 20% enjoyed by Samsung’s flagship model the Galaxy S3 at its peak in August. In October, the S3’s share of sales dipped to 11%, while in total Samsung’s extended stable of handsets accounted for 29% of smartphone sales.

Share of smartphone sales

Note: Samsung figures are a sub-set of the overall Android figures.

Kantar found the recent growth in Apple purchasing has caused little to no change to Apple’s share of smartphone ownership levels, with almost 80% of iPhone users who upgraded in October buying another iPhone. Strategic insights director at the research group, Tamsin Timpson, says Apple is not attracting new customers to the same extent as Samsung.

“It seems people want something a bit different,” Timpson says. “The image of the Apple brand is still very strong, and that comes through in the loyalty figures, but there’s definitely a group of people out there that want something different.”

That group is more likely to be and older and male than the iPhone buyer, according to the data, which shows the Galaxy S3 owner significantly more likely to be male and over 34 years of age.

“When there is a new iPhone launch, the profile of its owners becomes younger and more female dominated each time,” Timpson adds.

Cost is also a factor for many late adopters of smartphones, making the range of cheaper, pre-paid Android models more attractive to new customers.

While the larger screen of the S3 is seeing an Android-based handset eclipse the iPhone for usage of the mobile web, photos, gaming and other features suited to the big screen for the first time, the iPhone continues to outstrip its rival when it comes to other high-use smartphone functions.

The heavy use of these features such as social networking and shopping on the iPhone is driven by the younger, more female owner base, which Timpson believes prefer Apple’s sleek, fashionable design and brand image. “It’s a fashion thing… the features that are more mainstream, such as social networking or shopping, tend to over-index on the iPhone, while the lower penetration usage functions, such as mobile TV, over-index for the more male Samsung audience.”

However, despite ceding ground in the content battle, the iPhone still reigns supreme when it comes to value to manufacturer and telecommunications carriers, and loyalty. iPhone 5 owners spend slightly more on contracts per month – $69.16 compared to $63.56 for S3 owners – and far more on apps per month – $2.78 on average compared to $0.44 for S3 owners. Over the course of a two-year contract, this equates to around $134 more for service plans and about $56 more through app stores per user.

Loyalty to the Samsung brand languished at 50% in October compared to the 80% repurchase rate enjoyed by the iPhone. But for those who switch away from an iPhone, Samsung is the preferred choice, setting up a rivalary between the two brands that looks set to intensify.

Google adds indoor maps to desktop

by Marketing ON 28 November 2012

Google updated its Maps service for desktop browsers adding floor plans for over 10,000 indoor locations last week, just in time for directionally challenged holiday travellers.

The indoor floor plans were previously only available on Google Maps for Android, but now you can now check indoor maps of airports, shopping and conference centres, casinos, train stations and museums from any web browser.

Google’s list of indoor maps – available in eight countries around the world – only mentions some of the 10,000 locations with floor plans. Google Australia declined to comment on when the service would roll out in Australia.

To help locations add themselves to Maps, Google offers a tool for uploading floor plans to Google.

To explore indoor plans on Google Maps, search for the location you want to view and then zoom in. If floor plans exist it will render. This is particularly useful for shopping centres when you want to see where a certain store or restrooms are located, or finding departure gates at airports.

Desktop versions of indoor maps are not as full-featured as the mobile counterparts. In your browser you can only get the plans for the main floor of buildings, while the Android mobile version Google Maps allows you to view additional level plans as well.

The service has been introduced on desktop to address the weakness of mobile — GPS on smartphones can be unreliable and is often unavailable indoors. With access now available via desktop users can view a mall or airport terminal ahead of time.

It’s unclear whether the indoor maps feature will make it into the Google Maps app reportedly being prepared for iPhones.

With Macworld.

Google Play launches mags in Aus with ACP, Pacific and NewsLife

by Marketing ON 11 October 2012

Google’s content platform, ‘Google Play’, has added magazines to the movies and apps available for download in Australia.

Starting today, users can purchase magazines from three leading Australian publishers – ACP Magazines, Pacific Magazines, and NewsLifeMedia – as well other selected titles.

The Women’s Weekly, Vogue Australia, Men’s Health, Better Home & Gardens Australia, GQ Australia and Timeout, are some of the titles available via the platform.

It is understood that today’s release makes magazines available on play.google.com, with roll out to devices set to happen over the coming days. When launched, the Google Play Magazines App for Android will allow readers to buy single issues or subscribe to view magazines on tablet or other devices in high definition.

Back in April movies on Google Play launched in Australia, making thousands of titles available for rent on the web or Android device. In addition, there are more than 675,000 apps and games available for download on the digital entertainment platform.

Smartphones more widespread than thought: 68% today, 92% by 2017

by Marketing ON 29 August 2012

Smartphone penetration among 15 to 65 year old Australians is higher than widely reported, according to Frost and Sullivan, having already reached 68% and forecast to hit 92% by 2017.

The business analyst’s ‘Australian Mobile Device Usage Trends’ study found that, as of July, penetration of the device surpassed the two-thirds mark among people of the age range attractive to marketers. At an overall population level, Frost & Sullivan puts penetration at 41%.

Senior research manager at Frost & Sullivan, Phil Harpur, says smartphone use has well and truly reached a critical mass, and will continue to march towards near universal ownership levels. “Smartphone penetration in Australia is expected to continue to increase [to the point] where in two to three years time, the vast majority of Australians aged 15 to 65 will own one,” Harpur says.

Accessing the weather, using maps, checking social media and personal email, playing games and purchasing apps, are an intrinsic part of smartphone usage, the study found. Watching short video clips on sites like YouTube, and searching for jobs, houses to rent or cars to buy are also now mainstream activities as users fill in ‘dead’ time, such as commuting or waiting around.

Other studies place uptake of the device somewhere between the two points Frost & Sullivan released for 15 to 65 year olds and the overall population. Data from Kantar’s ongoing study of 10,000 Australian phone owners aged over 16 years put the mark at 59% in July, while studies conducted earlier in the year among teens and adults by Nielsen and TNS place it at around 52%.

Tablet ownership has also reached significant levels, spurred by more manufacturers entering the market at lower price points, Frost & Sullivan added. One in five aged between 15 and 65 currently own a tablet and 33% of all Australian households have at least one member who owns a tablet.

“Tablets are fundamentally changing user behaviour patterns with 55% of tablet owners indicating that using a tablet has significantly or moderately reduced the amount of time they surf the internet on a PC or laptop. Tablet ownership is expected to continue to grow strongly over the next few years, increasing from 13% in 2012 to 29% in 2017,” Harpur says.

Android dethrones iPhone as most owned smartphone platform in Australia

by Marketing ON 27 July 2012

Google’s Android operating system has overtaken Apple’s iOS as the most owned smartphone platform in Australia for the first time, growing its share of the market by 7% in the past quarter and capturing the hearts of technology early adopters.

Over the past year, Marketing with the help of Kantar WorldPanel’s ComTech data has been tracking smartphone penetration in Australia and the battle between iPhone and Android for operating system supremacy in Australia. Data from the ongoing study of 10,000 Australian mobile phone owners shows that, as of the beginning of July, Android commanded 38% of smartphone market share compared to iOS’ 37%.

Kantar’s strategic insights director Tamsin Timpson says Android’s surge has been driven by the success of Samsung, the operating system’s range of offers for new smartphone converts and how female orientated and mainstream the iPhone has become.

“It was in contract [post-paid market] where Apple had its stronghold and it’s now lost that,” Timpson explains. “The share for the contract market is now pretty much level between Apple and Samsung.”

In an ironic twist, Timpson believes the iPhone’s popularity may now be working against it, as early adopters looking for less “mainstream” alternatives hone in on Android, just as Apple’s meteoric rise was built on its position as an edgier alternative to Microsoft. “The younger males who are typically the early adopters of new technology want something different now… I think they want to separate themselves from iPhone because it is so mainstream. Android, Samsung and HTC are showing much more strongly in that younger male demographic.”

With three in five (59%) Australians aged over 16 years now smartphone owners, the surge of Android will see developers and marketers begin to place an even heavier emphasis on Android devices. Android’s growth looks set to continue in the absence of a new iPhone release, with the operating system taking in 63.2% of smartphone sales in the four weeks to July 8, compared to iPhone’s 25.8%, (down from 29.9% in March).

During Apple’s third quarter earnings report on Wednesday morning, CEO Tim Cook and CFO Peter Oppenhiemer blamed consumers holding out for the widely discussed next iPhone release for a global slow down in sales, while hinting at a Spring release for the launch of the handset’s sixth iteration.

“iPhone sales continued to be impacted by rumour and speculation about new products,” Oppenhiemer said. “We’re reading some rumours and speculation [about a] new iPhone and we think this has caused some pause in customers buying.”

True to form, Apple kept quiet about release dates, but Oppenheimer did mention that Apple “could not be more confident in our new product pipeline,” and also mentioned a Spring “transition”. This transition was brought up in the Q&A after the presentation, to which Oppenhiemer replied, “Not something that we’re going to talk about in any level of detail today”.

The “transition” could be the introduction of a smaller iPad or the launch of the next iPhone. MacRumours points out that it will need to take place before the end of September in order for the new release move the dial on next quarter’s figures. Apple also said that it expects a year-over-year increase in Mac, iPad and iPhone sales in September, fuelling speculation of a Spring launch.

According to Timpson partnerships with the carriers could also be impacting on iPhone’s fortunes in Australia, with around two-thirds of new phone buyers in the Australian market classified as ‘upgraders’ who buy new handsets with the same carrier. “Optus is very tied in with Samsung and Telstra with HTC,” Timpson says. “Handset manufacturers need to make sure they’ve got a really strong relationship with their carriers otherwise that carrier is going to push a different brand.”

While the surge in Android handsets represents the first time the operating system has toppled the iPhone for market share in Australia, iOS users continue to user their phone for more tasks than Android users, with 55% using 11 or more non-voice services a month compared to 22% for Android overall. This access to a greater range of content and apps is borne out at the advanced handset level also with only 33% of Samsung’s Galaxy S II owners and 35% of S III models being heavy users of non-voice services.

“iPhone owners are still the highest spenders and very much engaged with their phones,” Timpson concludes. “They over-index on everything compared to the average smartphone owner. Because Android is capturing a much higher proportion of new smartphone owners those people tend to be lighter users of non-voice services and aren’t as engaged with their smartphones.”

Timpson predicts that Apple will hit back, but much will depend on how the sixth-generation iPhone is received when launched later in the year.

Tablet ad impressions surge by 34% [infographic]

by Marketing ON 12 July 2012

Ad impressions served on tablets surged 34% in quarter two of the calendar year, while smartphone impressions continued to record strong growth and Apple continued to dominate, according to analysis of impressions served on mobile ad network InMobi.

The network’s quarterly ‘Australian Mobile Insights Report’ revealed that Apple devices – the iPhone, iPod and iPad – increased their share of the rapidly increasingly number of ad impressions being served through mobile devices.

At the overall operating system level, Apple’s iOS grew 10.8% on quarter one to command 64.7% of mobile impressions. The iPhone dominated all other devices, increasing its share from 43.7% to 51.6% and putting it well ahead of the next most prolific device – the iPod with 7.4% of impressions. The iPad was also dominant over its competitors, garnering three-quarters (73.5%) of tablet impressions and 5.7% of impressions across all devices, making it the fourth highest server of ads overall. Its nearest competitor, Samsung’s Galaxy Tab 10.1 Inch model delivered 11.8% of ads served to a tablet device.

Ad impressions served on smartphones increased by 10% over the period, with Samsung’s S and S II models rounding out the top five devices for ad impressions, making the top five handset list a Samsung-Apple duopoly for the first time. RIM’s BlackBerry 9700 previously sat in fifth place but thanks to a 6.4% drop in impressions served on RIM’s network the handset has dropped to sixth.

Head of InMobi Australia and New Zealand, Francisco Cordero, says the exponential growth in tablets is due to reduced retail prices and richer web browsing experiences associated with the larger screen format, and is only set to continue.

“Samsung and Apple are completely dominating manufacturer shares since the arrival of the Apple iPhone 4S, new iPad and Samsung Galaxy S3,” Cordero says. “With the introduction of new tablets to the market, including the Microsoft Surface and Google’s Nexus 7, and reports that Apple will launch a mini iPad, we expect tablet impressions to double by this time next year from 290 million to 580 million.”

Growth in impressions served on the Android network could not match iOS, with Google’s operating system growing by only 1.8% quarter on quarter to reach 25.4% of impressions. Samsung devices commanded 12% of impressions, an increase of 2.2%, while HTC was down slightly to 6% and RIM languised with 4.2%.

Even higher growth in tablet impressions was experienced in New Zealand, with a 78% jump indicating a strong upward trend in tablet usage across the Pacific region.

Earlier this year, InMobi opened a second Australian office in Melbourne, helping it serve over 1.9 billion ads in Australia between April and June this year.

Click to view full size.