Insights

Desire For Convenience, Features Drives Phone Innovation
Article

Desire For Convenience, Features Drives Phone Innovation

Jeff Herrmann, The Nielsen Company

Recession or not, for good reason there is no shortage of innovation in the mobile media industry (e.g. iPhone 3.0, the upcoming Palm Pre). The bottom line: consumers still want more! According to recent research across the U.S. and Western Europe conducted by The Nielsen Company on behalf of Tellabs, consumers are still bullish on the use of the mobile device beyond voice calling services and plan on continuing to adopt and use mobile data services. Of the 200 million current users of advanced mobile data services across the U.S. and Europe, almost 60% intend to use mobile data services more in the next 24 months, and of the millions of non-users, more than 25% intent to adopt mobile data services in the next 24 months.

Intent To Increase Usage Over The Next 12 Months
Feature US UK France Germany Italy Spain
Email 43.2% 43.8% 37.0% 26.9% 39.9% 35.7%
MMS 26.6% 32.9% 37.0% 28.3% 39.7% 31.2%
LBS/GPS 53.5% 43.3% 36.0% 28.7% 41.7% 27.3%
Mobile Internet 52.0% 41.8% 40.6% 35.9% 43.5% 33.6%
Photo Upload 56.1% 31.5% 34.8% 18.8% 41.3% 40.5%
Software/Applications 39.4% 35.2% 40.2% 27.3% 35.5% 35.5%
Source: The Nielsen Company

Not only are U.S. users leading in their expectation of use of the mobile internet, but also in their frequency of use. Seventy one percent of current users expect to use the mobile internet daily, if not several times a day, whereas 41% of Europeans expect to have such a high frequency of use.

What’s driving this trend is consumer’s expectation of how using mobile data services will add convenience and improve their lifestyle, and how this aligns with current capabilities of the mobile platform. Making consumer’s lives easier is the most important factor driving increased use in the U.S.

Convenience Is Encouraging Increased Intent To Use
Feature US UK FR GER IT SP
Mobile Internet 62% 52% 48% 52% 45% 39%
Software/Applications 45% 41% 38% 42% 43% 33%
Email 57% 48% 46% 45% 30% 40%
Source: The Nielsen Company

When conducting the research, we also looked at other lifestyle factors including work, entertainment and socializing. The “work” lifestyle was also a big factor in boosting use of select mobile data services in the U.S. These differences emerge even in the use of software/applications – entertainment was more of a driving factor for use in France, Germany and Spain, but was not as relevant in the U.S.

Given the current capability of the mobile platform and consumer’s current perception of how they would use it, keep your eyes on mobile marketing applications focused on convenience (shopping, coupons, and commerce) first and pure entertainment down the road.