Web Trends Report Q3 2014
Transcription
Web Trends Report Q3 2014
Web Trends Report Q3 2014 Netbiscuits Web Trends Report Q3 2014 Based on data from Netbiscuits Mobile Analytics, with an average sample of almost one billion page impressions per month, this report analyzes key web traffic trends across mobile devices. In this report, we review traffic from Q3 2014 (July to September) as well as incorporating data from October to analyze the immediate impact of Apple’s product announcements at the end of the quarter. This Report explores the ways in which the Web, on mobile devices, continues to evolve, and takes a closer look at the mobile phone landscape, assessing how changes in this space will impact mobile strategies and what marketers and developers need to consider. Contents Introduction: Context is now more important than ever 1. Device variety is a challenge but a huge opportunity 2. Phablets double share of traffic in 6 months 3.Android tablets a Christmas stocking filler 4. Vendors look to new market segments 5. Market Summary by Region 6. Conclusion © Netbiscuits 2014 Context is now more important than ever There is a wealth of data, generated by mobile devices During Q3 2014, the device library that powers and that marketers can use in order to provide customers underpins Netbiscuits Mobile Analytics grew faster than with experiences that match their expectations. In ever before. As the smartphone market matures, we contrast to the desktop web, mobile devices (and in see more niche devices being released and notably the particular the smartphone) rarely leave their owner’s rapid rise of the phablet, which will have implications for side. tablet sales this Christmas. July also saw the release Marketers therefore have the opportunity to use location, time of day and device type information in order to optimize targeted messaging and offers on their sites. The recent Netbiscuits People’s Web Report showed that owners of different branded devices behave differently both on the mobile web and in terms of how much they are likely to spend. Apple users, for instance, are bigger spenders than Samsung users. Would this impact the products you select for your banner ad displays? Data from Netbiscuits Mobile of the LG G Watch, with the Moto 360 following in September. There have been the first rumours of a smartwatch with its own SIM card,1 while the Will.i.am Puls wristband is set to come with 3G connectivity.2 This quarter therefore marks the beginning of some very fundamental changes that will take place and that will shape 2015. We are seeing the tip of the iceberg in terms of ‘IT of everything,’ with wearables, auto-pilot cars, smart thermostats and other smart objects all waiting in the wings. Analytics shows that it is more important than ever to All of these smart objects will create more personal recognize how a customer is using a device in any digital content that consumers will demand is controlled given context. This quarter we consider three major through their ‘Personal Cloud,’ regardless of who is trends that directly influence customer behaviour and inventing the software or device. At this point, the affect the way in which customers interact: ecosystem actually becomes more important than the • New devices and emerging categories of device • Emerging operating systems and the battle of the software • The rise of wearable technology device itself, and innovation at the software level will need to bridge the device and the cloud seamlessly. While there are many changes to come, marketers will need to think carefully about arming themselves with the information needed to enable them to take the right decisions and make the right investment choices. 1 http://www.stuff.tv/gear-2/samsung-gear-solo-watchphone-be-revealed-next-month/news 2 http://www.marketingmagazine.co.uk/article/1317431/william-launches-puls-smart-wristband-3g © Netbiscuits 2014 1. Device variety a challenge but huge opportunity The average number of unique mobile devices hitting websites on a daily basis has been increasing steadily. During May 2014, there were an average of just under 4,000 different devices per day. By October, this had reached almost 5,000, and the growth rate is accelerating. It means that during 2015, around two-thirds more unique mobile hardware devices will be accessing an average website per day compared Q3 device releases focus on specific audiences • In September, Nokia introduced the Nokia Lumia 735, dubbed the selfie phone with a very high spec forward facing camera. Also in September, Average number of unique mobile devices per day in each month 5000 BlackBerry introduced the Passport, 4.5 inch screen phone with a square resolution of 1440 x 1440 pixels. 4000 • This quarter we were introduced to the to 2014. Much of this change is due to the increased Grandroid phone for the silver surfer: the number of smartphones being used in the base. Amplicomms Power Tel M9000, with large 3000 May Jun Jul Aug Sep Oct icons and text, simplified menus, an SOS button for help and extra loud volume ringer. Most used smartphones • By the end of October, the Apple iPhone 5S was the world’s most used device at 13%. • This is down from its peak of 15% during September and coincides with the iPhone • A brand new Russian company announced its smartphone aimed at Muslims in Russia. BQ-Mobile claims the device makes smartphones more accessible to a wider audience with its integrated religious-based features and functionalities.3 6 entering the top 25 device list. • The iPhone 6 reached 6% share of Apple smartphone traffic by the end of October. It has already overtaken iPhone 5C traffic. The iPhone 4S, which offers considerably slower download speeds than the 5S, remains in the Top 5 devices. • The Top 5 devices represented 39% of total traffic, compared to 46% 6 months ago. Conclusions The rise of more varied devices presents both a problem and an opportunity for marketers. It means that more care is needed to identify bounce and conversion differences by device type as experiences vary tremendously. However, it increases significantly the level of insight into customer segments as more users buy devices for more specific purposes or for particular reasons. Share of web traffic, by device, smartphones, October 2014 Apple iPhone 5S Apple iPhone 5 Samsung Galaxy S4 Samsung Galaxy S III Apple iPhone 4S Samsung Galaxy S4 Mini Samsung Galaxy S5 Samsung Galaxy S III Mini Apple iPhone 4 Samsung Galaxy S II Apple iPhone 6 Apple iPhone 5C HTC One Samsung Galaxy Note 3 Nokia Lumia 920 Nokia Lumia 520 Samsung Galaxy Note II Nokia Lumia 925 Motorola Moto G LG Nexus 5 Sony Xperia Z Nokia Lumia 820 HTC One M8 HTC One Mini Samsung Galaxy SIII Mini 3.5% 3.3% 4.5 % 10.1% 5.9% 5.7% 12.7% 2.8% 2.8% 1.6 1.5% 1.3% 1.3% 1.0% 0.9% 0.8% 0.8% 0.7% 0.7% 0.7% 0.6% 0.6% 0.6% 2.4% 2.1% % 0% 3% 6% 9% 12% 15% 3 http://rt.com/news/200171-muslim-phone-russia-sale/ © Netbiscuits 2014 2. Phablets double share of smartphone traffic in 6 months Smartphones with screens over 5 and up to 7 inches • Users are willing to carry and use larger - ‘phablets’ - have doubled their overall share within devices if there is a use case for doing smartphone traffic in the last six months. The phablet so, such as surfing the mobile web. category represented 7% of traffic at the end of April 2014, rising to 14% by the end of October. The leading region for phablets is emerging Asia, where over onefifth of traffic comes from these large smartphones. Proportion of smartphone traffic, phablets versus other smartphones and forecasts from November • The uptake of phablets has therefore been greatest in markets where the device is being used as a primary access point for the internet. This is especially true in Asia, as revealed by a recent Smartphone Phablet 100 % 80% Google survey and is reflected in Netbiscuits traffic.5 Big phones becoming the new norm • By April next year, phablets will represent almost one quarter of total web traffic. • Largest phablet traffic shares are found in South Korea (49%), China (25%), India (23%), Indonesia (22%), Saudi Arabia (22%) and the United Arab Emirates (21%). • Apple’s iPhone 6 Plus comes at just the right time to capitalize on the trend. The success of the larger device has taken many As more people use a phablet to double up as their iPhone traffic by the end of October. smartphone and mobile web device, context will been largest in Western Europe, where the market is catching up with the larger screen trend. The greatest growth was in the UK, where the segment grew proportionally by 81%, to reach 16% of UK smartphone traffic. • The emergence of the phablet category underlines the phone’s status as a mobile web and app device more than a traditional calling device. 40% 20% 0% Conclusions vendors by surprise. 4 It reached 2% of all • Growth rates for the phablet category have 60% Apr 14 May 14 Jun 14 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 14 Jan 15 Feb 15 Mar 15 Apr 15 Proportion of phablet traffic, by region, October 2014 be more important than ever in order to determine whether a tablet or a phone experience is required. The emergence of this segment will blur tablet and smartphone categories. For marketers, it will therefore have an impact on expected bounce rates, conversions and engagement. Location and bandwidth considerations will become extremely important. Meanwhile, the rise of the phablet will have a major impact on what we find in people’s Christmas stockings this year. 20.5% Asia (emerging) 19.3% Asia (established) 17.0% North America 14.1% Western Europe 13.6% Middle East and Northern Africa 12.7% Eastern Europe 6.8% Central and South America Sub Saharan Africa 4.3 % 4 http://www.gsmarena.com/iphone_6_sales_plateau_in_the_uk_iphone_6_plus_going_strong-news-10112.php 5 http://www.consumerbarometer.com/en/insights/?countryCode=CN © Netbiscuits 2014 3. Android tablets a Christmas stocking filler Another phenomenon that has been taking shape over • We predict that Android will overtake iOS as the the last six months is the steady rise in Android traffic leading operating system in the base of tablets by share amongst tablet devices. Six months ago, Android end of March 2015, when it will reach 51% of the base. accounted for 32% of tablet traffic on the Netbiscuits Web Analytics platform. This grew to 38% by the end of October. Tablet sales for Android are being driven by high volume, low cost devices.6 It means that Android’s share of tablet traffic will continue to grow, with a sharper upturn anticipated following Christmas. in 89 of 219 countries and territories tracked, including many in emerging Asia (such as Thailand and Malaysia) and Latin America. Its share of tablet traffic was biggest in emerging Asia and in Central 20% Conclusions with its budget Hudl tablet and is set for more of the continues to erode iOS share of tablet traffic. same with the Hudl 2 this Christmas. The rise of low a tougher environment for all tablet vendors. • Most sales momentum in the market will come from entry level Android devices, so the volume of traffic from Android tablets will grow more rapidly in 2015 than we have seen previously. Similar to smartphones, vendors such as Pinig in India are developing niche tablet devices, including tablets aimed specifically at children, executives, seniors and women.7 50% 30% reflected by trends in the base, where Android impact sales of tablets this Christmas. It will be Other OS 70% In the United States, Android accounts for 39%. The UK supermarket chain Tesco had great success position as a primary internet access device will Android 60% 40% tablets for quite some time. This is being • The growth trajectory of the phablet and its iOS 80% and South America, at 59% and 49% respectively. Entry level tablets driver of market growth • Android tablets have been outselling iOS Proportion of traffic, by operating system, tablets and regional split for October 2014 • Android is already over 50% of total tablet traffic cost Android devices means that delivering a consistent experience becomes tougher for marketers. Android devices have a far greater range of maximum and minimum specifications and this will have an impact on users’ experiences of the mobile web as they attempt to use the low cost devices as a platform for connecting with brands. It will be increasingly vital to know how device specifications are impacting bounce rates and conversions in order to determine the right level of experience for specific Android devices. 10% 0% Apr 14 May 14 Jun 14 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 14 Jan 15 Feb 15 Mar 15 Asia-Pacific (emerging) Asia-Pacific (mature) Eastern Europe Middle East and Northern Africa North America South and Central America Sub-Saharan Africa Western Europe Global 0% 20% 40% 60% 80% 100% 6 http://www.digitaltrends.com/mobile/android-edging-ios-global-tablet-market/ 7 http://www.pinig.com/ © Netbiscuits 2014 4. Vendors look to new market segments As tablet sales growth is set to be disappointing, and while competition in the smartphone space intensifies, vendors are looking to other segments in order to drive revenues. New technology sectors such as smart watches are receiving firm R&D commitment through increased spending.8 This brings the question about the software driving these experiences firmly Surfing the web on a smart watch? • Smart watch browser applications iOS split by version, proportion of total Apple traffic are available from Google Play. iOS 5 and lower • 37% of consumers would enjoy surfing websites using a smart watch.9 • The mobile web will become important on smart back into focus. Overall, Android reached 60% of total watches. For instance, while multi-tasking, mobile web traffic for the Q3 2014 timeframe, up from information can be read from a website while a user 57% in Q2 2014. Windows grew to just under 5%. is on a phone call. As such, people will want larger screens, as witnessed in the smartphone space. 100 iOS 6 iOS 7 iOS 8 % 80% 60% 40% Smart watches will develop into smart wristbands. iPhone 6 and 6 Plus prove to be hits but overall iOS 8 adoption is lagging • iOS 8 reached 51% of total iOS traffic over 6 weeks 20% Conclusions from September 17 but growth is already flattening. Marketers will need to watch this segment with It is expected that an iOS 8 upgrade will be required care. It could grow extremely rapidly, especially as to use Apple Watch, giving users of older devices the Apple Watch is expected next year. It will once reason to upgrade both hardware and software. again have major implications for how consumers • Most smart watches currently available require Android 4.3 or higher for pairing. Currently, 53% of Android users are using version 4.3 or higher. • Android 4.4 is the world’s most used version 0% 17 Sep 24 Sep 1 Oct 8 Oct 29 Oct 7% see the return of the micro screen and brands 11 will need to think carefully about navigation and % Android 4.4 interaction methods on a micro screen website. Android 4.1 12 42 % % Android 4.2 Android 4.3 • The second most popular Android Android 2.3 version is Android 4.1. There are still 7% of Android users using version 2.3. 22 Oct Android split by major version, proportion of total Android traffic, October 2014. wish to interact with brands. Longer term, it will of Android at 42% of total traffic. 15 Oct 20% 8 http://globenewswire.com/news-release/2014/11/04/679430/10106159/en/Global-SmartwatchesMarket-Segment-Forecasts-up-to-2020-Research-Reports-TransparencyMarketResearch.html 9 http://www.netbiscuits.com/resources/netbiscuits-reports/the-peoples-web-report-2014/ © Netbiscuits 2014 5. Market Summaries, by region Chinese vendors go international Vendors have been attacking their domestic markets for some time. We have seen the rise of Xiaomi within the Chinese base. We have watched the growth of Micromax in India. We have also witnessed some success, albeit on a much smaller scale, for are fighting back. Local consumers are increasingly International expansion will not be easy. There will using Chinese devices. During Q3, we saw the biggest be intense price pressure. In India, for instance, local quarter-on-quarter jump in traffic share for Xiaomi, vendor, Intex, has joined forces with Mozilla to launch while Oppo, Vivo, Huawei, XiaoCai, Lenovo and Coolpad a Firefox phone that is billed as India’s cheapest.13 In all gained share between January and September, Indonesia, emerging Chinese vendors have nudged to the cost of Samsung, Nokia and BlackBerry. their share of total mobile traffic only slightly upwards. Wiko in France and bq in Spain. Now, these national These domestic vendors are gaining confidence, which vendors are looking beyond their local market and are means that China will not be their only market focus. increasingly looking to establish larger customer bases Announcements of overseas expansion was a key overseas. They are competing against established theme for Q3 2014. Vivo announced that they have export experts, such as Apple and Samsung. entered the “era of internationalization.”11 They wish to What will the future mobile landscape look like? target India, Indonesia, Thailand and Malaysia. Xiaomi is laying down plans to tackle Malaysia, Indonesia, the China and emerging vendors China is more open to using American brands than vice versa. Apple has been making steady gains throughout the year, growing from 13% of traffic in China in January to 18% by the end of Q3 2014, clearly benefitting from the deal struck with China Mobile. This deal gives it access to a potential 760 million subscribers.10 However, there is a backlash and Chinese brands Here, the biggest leap in traffic came from local vendor, Smartfren. Although Smartfren remains small within the base, the trend is significant: it almost doubled its share of traffic between Q2 and Q3 2014. The same story is repeated elsewhere. In Bangladesh, it was most notably Symphony; in Thailand the biggest quarterly gain in mobile web traffic share came from I-Mobile. Philippines, Vietnam and Thailand. For Oppo, Malaysia Meanwhile, Indian vendor Micromax appears in and Indonesia are on their target list. Aside from use in Bangladesh, Pakistan, Nepal and Sri Lanka. Huawei which has a broad pan-Asia presence, Oppo Russian operations started this year and the vendor is the most widespread of these emerging vendors sees Russia as its gateway to Eastern Europe.14 according to Netbiscuits Mobile Analytics. Already 10% We will track the progress of the emerging vendors of its traffic comes from outside China. It is not just as they continue to enter new territories. United States In the United States, Apple has marginally grown its share of traffic, while Samsung has marginally declined. However, overall, the leading two vendors have solidified their position at the top throughout the year. Those losing share include BlackBerry, HTC and most notably Huawei. While the Huawei brand has been battered in the United States in other technology areas, Netbiscuits Mobile Analytics reveals that even smartphone users have been moving to alternative brands. Huawei is hoping to achieve more success by releasing high end phones in the United States.15 Japanese vendors remain insignificant within US traffic, although Sony is beginning to improve its position. the emerging Asia region that it is targeting. In August, it was reported that it would be one of the first of the emerging brands to establish a presence in Australia.12 10 http://www.cnbc.com/id/101336809#. 11 http://www.vivo.com.cn/news/48 12 http://www.macworld.co.uk/news/newswire/oppo-rtunistic-china-smartphone-heavyweight-set-for-australian-launch-3539268/ 13 http://www.straitstimes.com/news/asia/south-asia/story/maker-41-smartphone-hails-new-era-india-20140827 14 http://www.business-standard.com/article/companies/indian-phone-makers-look-to-penetrate-russia-114071801086_1.html 15 http://www.fiercewireless.com/story/huawei-sees-62-bump-first-half-smartphone-sales-commits-80m-shipments-2014/2014-07-29 © Netbiscuits 2014 Russia In Russia, the situation is better for Sony. It has grown its share of Russian traffic from 4.4% in Q1 to 5.6% in Q2 and 6.0% in the latest quarter. Russia remains a strong Apple market, with over 40% of traffic from Apple smartphones, although both Apple and Samsung have seen their share of traffic declining. Huawei and ZTE also made gains in the region but they have some ground to cover to catch up with Sony. They are likely to be able to do this by focusing on the low end market, especially in markets such as South Africa, where BlackBerry still accounts for one quarter of traffic. Meanwhile Sony will entice consumers in markets such as the United Arab Emirates. Latin America In Latin America, both Apple and Samsung have seen their share of traffic eroding during the course of 2014. Picking up share are Chinese vendors Alcatel and Huawei as well as Motorola, which is in the process of being bought by Chinese vendor Lenovo, who has already announced that smartphones Russia is a bright spot for Windows Phone devices, There are no European vendors vying for a global are out-shipping PCs. Motorola’s share of traffic which has helped Nokia to also increase its share position. Despite smartphones contributing to one of in Central and South America reached a peak of of traffic throughout 2014. While Chinese and Indian the biggest revolutions in habits and daily behavior, 10.4% in Q3, up from 7.4% earlier in the year. vendors have touted Russia as export markets, this there has been little innovation from Europe. Europe has so far proved difficult to achieve in practice. is sitting in the mobile passenger seat, unable to compete with global mobile powerhouses. Fortunately, there has been some innovation as smartphone Europe, Middle East and Africa Japanese vendors may have struggled at a global level, however in EMEA, Sony captures more share of traffic than in any other large regional territory in the world. For the first time in Q3 2014, its share of traffic exceeded 5% of total traffic in Western Europe, where it benefitted from the demise of BlackBerry and most notably Nokia. Sony has grown its share of traffic in most major European markets, including the UK, Spain, Germany and France. Similarly in the Middle East, Sony is filling the gap being left by BlackBerry and Nokia. Its greatest gain in mobile web traffic share was registered vendors such as Wiki and bq start registering traffic. Often, in cases where Europe cannot compete on a like-for-like manufacturing basis, vendors look to extreme differentiation. For instance, the Fairphone, which appeals to the morally conscious consumer. Or luxury phones, such as the British-made Vertu handsets. These products remain niche. It is Wiko that currently looks best placed for international expansion. The French vendor plans to launch in the UK this year, followed by parts of Africa (such as the Ivory Coast and Senegal), the Middle East and also Asian countries such as Vietnam and Thailand.16 in the United Arab Emirates, followed by Saudi Arabia. is Chinese investment in emerging markets that is paying off in terms of establishing new bases of users. It is the Chinese vendors that have the best chance of disrupting the status quo. While this keeps Asian vendors at the top of the pile in terms of hardware, the best export in terms of global coverage comes from the United States in the form of Google Android. This means that future Asia vendors are still tied to Google in the same way that Samsung has been in the past. Asia is still unable to deliver on all fronts. Samsung is trying to use the ‘Internet of Things’ to promote its own Tizen software, but throughout Who’s best placed In terms of exports, Samsung remains the undisputed leader within Netbiscuits mobile web traffic. It captures 45% of total traffic, compared to Apple’s 35%, and it enjoys much larger market shares in emerging territories compared to Apple. Meanwhile its domestic rival, LG, is the fourth largest vendor on the Netbiscuits platform, behind Apple and HTC. South Korea has been therefore the powerhouse of smartphone innovation. Its vendors have understood best the local needs and requirements for export markets. However, we saw users migrating away from Samsung more rapidly than from any other vendor. The other noteworthy South Korean counterpart, Pantech, is bankrupt. While we shouldn’t write off Japan yet, it the quarter, this has been continuously rebuffed. The importance of being able to control the full software and hardware offering will draw up the next battle lines. China is aware of this. The Chinese Academy of Engineering has drawn up plans to oust Microsoft, Apple and Android with its own operating system software. It sees this as key to success although many experts remain skeptical about its chances. The desktop version was due for release in October, along with its own app store (independent of western companies) including a version for smartphones and tablets due in the next three to five years.17 On the one hand, past attempts at similar projects have failed. On the other, the ability of China to leverage its domestic strength to drive through change should never be underestimated, even if it takes longer to achieve than anticipated. 16 http://www.ft.com/cms/s/0/04eb8800-f480-11e3-a143-00144feabdc0.html#axzz3BbP3tN7a 17 http://www.theguardian.com/technology/2014/aug/26/china-microsoft-apple-android-state-software © Netbiscuits 2014 6. Getting to grips with the data The changing nature of devices, emerging segments Marketers therefore need to consider new methods and new technology trends underline the extent in order to ensure that they get the experience right to which consumers are wanting more immersive the first time and every time that a device requests and continuous interactions with the mobile web. information from their site or a customer wishes This is creating a wealth of valuable data for marketers to better understand their customers, in particular the types of experiences that specific groups of customers will react better to and what their preferences are likely to be. to interact. This can be done by skillfully using the clues that users are leaving. It involves using multiple sources of information to build profiles of customers. In particular it involves gleaning data from the one thing that is with a consumer from dawn until dusk, namely their mobile device. Why is We already saw in our recent People’s Web report it so important? We think that Coca-Cola’s Michael that the devices that people choose can reveal much Conner sums it up nicely: “Always remember: Without about a customer. Apple users are most likely to data, you’re just another person with an opinion.18 share experiences on social media, Samsung users are the most concerned about mobile web security. We also found in the People’s Web Report that an increasing number of mobile web users are likely to delete tracking cookies and web history, making it harder for the marketer to track by traditional methods. 18 http://www.eweek.com/enterprise-apps/slideshows/how-splunk-aims-to-tame-flood-of-internet-of-things-data.html © Netbiscuits 2014 Contact: About: For more information on the details within this report, please Netbiscuits is a global leader in mobile analytics and device detection. contact Duncan Clark, or on Twitter @duncanjclark. Netbiscuits delivers compelling analytics and device detection products to help companies achieve increased reach and performance, while improving To subscribe free to Netbiscuits Mobile Analytics, to book a demo, or for more information about, please visit: www.netbiscuits.com/mobile-analytics conversion and customer engagement. Our cloud software records over one billion unique page impressions a month, serving global brands such as eBay, Coca Cola, MTV, BMW and T-Online. The award-winning Netbiscuits To speak with a Netbiscuits solution advisor, complete this brief Device Library has been catalogued through manual testing since the year form and we’ll get in touch to discuss your requirements. 2000, and contains detailed device feature capabilities, including over 8,038 device, more than 200 operating system and 496 web browser profiles, to create exceptional mobile experiences for every connected device. For more information, please visit: www.netbiscuits.com Copyright © 2014 Netbiscuits GmbH on Netbiscuits software and all related descriptions in this document. Netbiscuits is protected by copyright and all rights are reserved, including the rights to translation, copies, and reproduction using photomechanical or electronic systems. Protected trademarks, brand names etc. are not explicitly stated as such in the text. The lack of such identifiers in no way implies that the terms are not free names as defined by applicable trademark and brand name legislation. Global headquarters: Netbiscuits GmbH, Europaallee 10, 67657 Kaiserslautern, Germany © All rights reserved v1.0_112014