AOL Big Mobile Study

June 27 2012

Proprietary Research: Big Mobile

Generate a deep understanding of the current cross-platform consumer that leads to:

On-going innovation in the development and marketing of AOL mobile products

Effective marketing/advertising placements and monetization opportunities

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Thought leadership in an emerging space

Methodology
Two qualitative approaches combine for one end goal. In-Home Ethnographic Interviews among Moms, Techies, and Entertainment Seekers:
n=18, 2hr in-home interviews 3 Markets: New York, Seattle, Austin (6/mkt) Dates: March 15 thru 23, 2012

General Qualifications:
Ages 18 to 54 Must own a computer Must own an iPhone or Android phone 2/3 of sample must also own a tablet Must have at least 100 friends on Facebook Quotas for Twitter users Must agree strongly with at least two of the following statements I take pride in being able to find cool and interesting content online I share more links and online content than other people I know Im a trendsetter rather than a trend follower I tend to have strong opinions Being stylish and fashionable is very important to me

Online Digital Diaries:

n=100 online diary surveys Participants from across the USA Week-long participation period Daily survey questions and writing prompts

Note: our sample may be more deal conscious than the general population, given their inclination to participate and be compensated for partaking in research activities.

I interact with brands and products via social media

Validated Hypotheses
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Consumers have distinct roles and need states for their three devices: phone, tablet, PC. Word of Mouth and App Store/Market are the primary sources of app discovery. Apps should be simple and fill a single need. People have a core group of apps that they use regularly, and the rest are just flavors of the week. Tablets have a longer engagement and consumption period than mobile phones. Whether in lean back mode or snacking mode, consumers generally have a systematic way of consuming content.

Many people are co-browsing and using their device as a second screen while interacting with others and watching TV or movies.
Content should be the same everywhere and in the format desired at that moment in time. Mobile websites are typically frowned upon because they are seen as offering less. Users tend to go to the same sources on the smartphones as they do on their tablets. Consumers want a seamless experience across devices, without feature limitations or content restrictions.

Refuted Hypotheses
Hypothesis Finding
Participants are more likely to be going to mobile websites for brands they do not frequent often enough to warrant downloading the app. Users are looking to replicate their desktop experiences.
It is not any more predominant than other devices; each platform lends itself to certain types of sharing. People generally fall into two camps: those who only use free apps and those that have no problem spending money on apps and do so regularly. Our participants recognize ads are necessary for free apps. Just like everyone else, Moms are looking for a deal. Each app is a tool with a specific need state. Facebook is the content aggregator and provides more than enough entertainment. People like the idea and the integrated multimedia content; however the feel of paper is a benefit to some. Users acknowledge theres opportunity to engage, but they typically prefer not to.

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Bad apps force people to mobile websites

Users are more likely to share content on phone

Consumers are strongly averse to paying for apps

Ads feel unnatural on the mobile phone Moms arent comfortable with mobile commerce or mobile shopping in-store Users are starting to get annoyed by bouncing from app to app for content Digital magazines are an unfamiliar format Sharing doesnt happen in digital magazines because there arent opportunities

Device Intimacy

Users' mobile interactions are situational: Phones are a private device meant for use in public
A sense of self. Phones are more than a tool; theyre a companion, trusted advisor, and an extension of identity
Organization, wallpapers, and ringtones are all used to personify the phones owner The activities on a phone go unchecked by others; theres no clearing search history here

A sense of dependence. Phones are with me everywhere I go, every waking and sleeping moment

A sense of security. Phones are a discreet and private path to the Internet people will use their phones to access blocked websites like Facebook from work

Device sharing with others: Hands off my phone!

47%
33%

30% 11%

Desktop

Laptop

Tablet

Phone

Users Change Devices, not Behaviors

Users import their previous digital habits, sources and activities to their new mobile devices.
New devices present opportunity for new app discovery, but the window is small External brand equity and awareness carries into the App Store

When I find things I really like on the computer, I try to find apps for them so I can carry them with me. - Kate

I put all of the apps on my phone onto my iPad when I got it. Jaclyn

Users Are Lazy

Its all about first impressions
Will give it another chance 39% Wont come back to a bad app

Physically Lazy:

The device in-hand is the right tool for the job users will try anything on the device they are using in order to avoid having to track down another device

If its out of arms reach its too far If its not charged, go to the device that is

Digitally Lazy:
61%

Users will exert very little effort trying to learn an app Once they find something that works it takes a vastly superior offering to supplant an incumbent dont underestimate inertia Users are hesitant to commit to new services that require them to forgo their past investments (i.e., switching from Facebook to Google+)

If the MacBook is too far away Ill just use my phone. - Taylor

Use all depends on which device Im closest to. Jarod

Ive gotten really lazy. - Marla

Implications:

Apps need to work well across devices, providing a seamless user experience Not much of a window to convince people you are worth it
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Multi-Device Impact

Changes in Behavior by Introducing Devices

Primary Internet Device Equal time between lean back & lean forward
Computer

Computer

Lean forward activities Web serendipity & exploration Videos, movies, PC games
Lean forward Keyboard & mouse activities Work machine High cognitive load tasks

Mobile Phone

App central Social hub The Internet on-demand Casual games

Primary browser Watching videos Apps & browser Fun & new Comfortable computing

Computer

Mobile Phone

Social hub Instant upload photos & videos Active navigation The Internet ondemand

Tablet

Tablet Owners: 44% of our respondents said they started using their smartphone less and 75% said they started using their computer less once they bought a tablet.

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The Proliferation of Co-Browsing

While watching TV.

77%
63%
are on their social networks

are sending texts

36%
are talking via IM/chat

67%
are browsing the web

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Mobile Web vs. Apps

Mobile Web: More about the Destination than Discovery

Users are unlikely to simply browse the web most engagement occurs through target destination engagement. Users typically follow well-worn paths through the web.
Destination Driven Usage Discovery Driven Usage

vs.
Site 3

Site 1 Site 2

Site 4

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Mobile Sites Dont Offer the Full Picture

Mobile sites are pretty infantile and basic, but they are easier to load and less likely to crash. Marco It cuts down on everything. It pisses me off! Anitra Most mobile sites are just basic information, so trying to access anything beyond that is a struggle. Jaclyn If I have the option, Ill try to find a way to go to the full site. Chris

Users expect the same content and functionality on a mobile site as the full browser version of the site Users are acutely aware of when they are not given the whole web experience Frustration quickly sets in if users cannot accomplish their desired task simply because of mobile restrictions Many users will opt out of the mobile site if given the chance in order to navigate to the page they desire

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Apps vs. Mobile Web

Apps are a quick utility the phone is a Swiss army knife and each app is a tool.

22%
Prefer Mobile Sites
I pretty much just live off of my apps. I have almost 100 after all. Jaclyn My e-vite app is better put together than the website, and way more convenient. Jose Mobile sites are less functional than apps. Doug

56%
Prefer Apps No Preference

22%

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Discovery, Installing, & Upgrading Apps

Big Brands Have It Easy for Apps

Users

are importing their analogue and desktop preference to their mobile devices Big brands are assumed to have apps Users have a preexisting opinion that will color the apps trial and adoption
I looked for the Weather Channel app because I like the Weather Channel. Christian Ive never looked for it, but I bet Home Depot has an app. Anitra

Like most things, the big name app isnt the coolest. Christian

However, opting for the familiar leads many users to miss out on best in class features offered by unknown developers and start-up apps

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Criteria for Download

4+ Stars
Appealing screenshots

User reviews sound generally positive

$
App is compatible with phone and current OS version (Android) Free apps receive a significantly less thorough inspection than paid apps

I really like the screenshots. Kate

Ill download it if I really want it and it has good reviews. Bryce

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Discovery Beyond the App Store

App Discovery Sources
Browse app store "Top 100" lists on the app store

75%

69%
67% 59% 51% 49%
Viral: App Seeks User

Friend/family member
Search for an app See others using the app Overhear people talking about the app Social media A friend/family member sends me something via the app Read about it in an article The mobile site leads to a download of the app See an advertisement in another app

Most of my apps are a result of Googling apps that save you money. Jaclyn I tell people about my apps and show them in person. Doug I show someone something on an app on my phone almost every day. Christian

45%
43% 42% 30% 27%

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Monetization

Mobile Ad Placement
Mobile web visitors tend to be first time and casual brand users. Thus ads on mobile sites can be more general since visitors are less engaged and less likely to balk at poorly targeted advertising.
Ill click an ad if its on the side, but its annoying if its right in my face. Jaclyn There are very few things Id click on, mostly because they arent for me I have no use for Huggies Diapers. Randy Ill click on something if they do a good job with the design of the ad and its aesthetically pleasing. Marco

Core brand users use apps and expect that brands know them. Ad placements within apps should be targeted, contextual and relevant.

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Summary

Top 10 Themes
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The phone is an extension of the user, its an integral aspect of identity formation and the users personal brand. New forms of digital intimacy are translating to greater importance of the inner circle (side-byside sharing, content sharing as a velvet rope, encouragement of device parity, etc.). Users are lazy. They need content to be spoon fed to them, are extremely habitual, and physical proximity often dictates device use. Mobile web doesnt cut it in its current state, primarily due to perceived limited functionality. Accordingly, apps are preferred, a quick and easy utility or route to entertainment.

6 7
8 9

Discovering apps is hard, random, and often need based.

Brands used elsewhere are most often applications used now. Games, maps, and music are where the money is for apps. Search is a task to be completed efficiently, rather than an opportunity to discover, explore, and have fun. We can learn from games. Freemium works. People dont really upgrade to avoid ads. Opportunity to create brand evangelists. The expiration date (beating the game) creates some urgency in playing.
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