THE STATE OF THE MOBILE MARKET What end-users want from mobile Lorenz Jakober Product Marketing Manager – Mobile APM, Compuware

1. THE STATE OF THE MOBILE MARKET
What end-users want from mobile
Lorenz Jakober
Product Marketing Manager – Mobile APM, Compuware

2. The Year Of Mobile…

3. Are Organizations Taking Mobile Seriously?
• 90% of the top 30 US banks
have a mobile initiative
• 87% of the top 30 US retailers
have a mobile initiative
Source: Gomez Research

4. Mobile Web Usage Is Growing Fast
• According to IDC in 3 years more US Internet users will access
the Web through mobile devices than through PCs
• Google has seen US mobile queries grow by 4x in past year
Source: http://internet2go.net; Internal Google Data 2010; googlemobileads.blogspot.com/2011/09/holiday-retail-mobile-insights.html

5. Mobile Web Usage Is Growing Fast
HauteLook (US Retailer) projects 25%-30% of its
online traffic will come from iPhone and iPad users
by the end of 2011

6. Mobile App Usage Is Growing Fast
• Apple passed 15 billion app downloads within 3 years
– Took 6 years and 10 months to pass 15 billion song downloads
Source: asymco.com

7. Mobile Site And App Revenue Growing Fast
• eBay sales closing on mobile devices
– $600 million in 2009
– $2 billion in 2010
– $4 billion in 2011 (expected)
• “In the last twelve months customers
around the world ordered more than
$1 billion worth of products from
Amazon using a mobile device.”
– Jeff Bezos, CEO Amazon
• Apple paid out $2.5 billion to third-
party app developers – up from $1.5
billion a year ago
• Marriott Hotels is averaging mobile
sales of $6 million per month in 2010 –
up 100% from 2009

8. Smartphones Driving Mobile Web & App Growth
% Of Adult Cellphone Owners Who Downloaded An App / Accessed The Web
Downloaded an app Accessed the internet
4%
Featurephone
Owners
15%
69%
Smartphone
Owners
84%
0% 20% 40% 60% 80% 100%
Source: Pew Research Center's Internet and American Life Project , May 2011

9. Smartphones Are Going Mainstream
• According to Google by the end of 2011 over half of all
Americans will have a smartphone
End-users are replacing feature
phones with smartphones
Source: Google - Are You Mobile Ready? Webinar - May 2011; asymco.com/

10. Smartphones Have Redefined Mobile End-Users’
Experience Expectations
• Mobile users expect rich, engaging mobile website and
application end-user experiences

11. Mobile Context Shapes Mobile End-Users’
Experience Expectations
• Speed matters more in mobile context
– Waiting for the bus, checking user reviews/prices/bank balance in a store, updating Facebook status etc.

12. End-Users’ Mobile Web Performance Expectations
Are Increasing
Percentage of mobile web users who expect websites to load as quickly,
almost as quickly or faster on their mobile phone compared to their home PC
80
70
60
50
Percent
40
71%
30
58%
20
10
0
2009 2011
Source: 2009 & 2011 Gomez/Compuware Equation Research Study

13. End-Users’ Mobile Web Performance
Expectations Are Often Not Met
89% of US mobile web users expect a website to load on their
mobile phone in 5 seconds or less
Gomez Mobile Web Home Page Benchmark Response Times Across Verticals
18
Response Time (seconds)
16
14
12
10
8.633 8.275
8 7.286
6.593
6
5.054
4 4.227
2 End-Users’ Expectations
0
US Banking HP US Insurance US News HP – US Sports HP – US Retail HP – US Travel HP –
– AT&T/iPhone HP – AT&T/iPhone AT&T/iPhone AT&T/iPhone AT&T/iPhone
AT&T/iPhone
Source: 2011 Gomez/Compuware Equation Research Study and Gomez Mobile Benchmarks, May 1 - June 1 2011

14. End-Users’ Mobile Experience Expectations Are
Often Not Met
57% of mobile web users had a problem
in the past year when accessing a website
on their phone
Social media allows
users to voice & record
their frustration in
real-time, negatively
impacting revenue and
brand equity

15. What’s The Impact Of Mobile Performance Issues
On Your Business?
47% of mobile web users had a problem in the past year
when accessing an app on their phone
80% of branded iPhone, Android and Blackberry apps
fail to achieve 1000 downloads
Source: http://www.bizreport.com/2011/07/less-than-1-of-mobile-apps-top-1million-downloads80-of-branded-apps-struggle-to-achieve-1000-downloads.html

16. Mobile Service Performance Impacts Business Results
Abandonment Rate Across 200+ Web Sites / 177+ Million Page
30
Abandonment Rate
- All Browsers
25
Abandonment Rate (%)
Abandonment Rate
20 - iPhone Safari
15
Slower pages = higher abandonment
• Reduces revenue
10
• Increases costs
• Damages brand
5
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Page Load Time (sec.)
Source: Gomez real user monitoring

17. “When we looked at how faster ads on mobile
devices affected interaction rates, we discovered
that click-through rates increased by 12% -- a
substantial difference!”
Richard Rabbat, Product Manager, Google/DoubleClick
http://doubleclickadvertisers.blogspot.com/2011/06/cranking-up-speed-of-dfa-leads-to.html

18. “This link between increased usage and a faster
user experience - be it search or mobile Gmail -
reinforces something we at Google have known
for a long time: fast is better than slow.”
Robert Hamilton, Product Manager, Google Mobile Team
http://googledata.org/google-mobile/fast-is-better-than-slow/

19. A mobile site or application that is slow, or
worse malfunctioning, negatively impacts
revenue and damages brand equity

20. How Do Organizations Deliver Mobile Sites/Apps?
• Vast number of organizations outsource mobile website and
application development and delivery
Top 20 US Mobile Commerce Sites
Outsourced vs. In-House
45%
55%
Third Party Powered Mobile Site
In-House/Undefined
Source: Gomez Research

21. Delivering High Quality, Fast Mobile Websites
And Applications Is Difficult
• Device, network, usability and complexity challenges
Different Networks Offer Different Browsers Offer
Different Experiences Different Experiences
Cable Wifi 3G Cable Wifi 3G
30 160
140
25
120
20
100
Mbps
15 80
ms
60
10
40
5
20
0 0
Download Upload Latency
Mbps Mbps ms
Source: Gomez Research

22. Solution - Adopt Your End-Users' Point Of View
The Application Delivery Chain
Cloud
Customers
Private Public Browsers
Local
Data Center ISP
3rd Party/
Virtual/Physical Environment Cloud Services
DB App Web Load
Mainframe Servers Servers Servers Balancers Major
ISP
Customer/end-user point of view
Storage
Network Content
Delivery
Networks
Web Mobile WAN
Services Components Optimization
Mobile
Carrier
Devices
Employees Employees

23. Adopt Your End-Users’ Point Of View - Discovery
• Does the team responsible for your mobile websites / applications
focus on the end-user experience?
Ensure your
customers can
access your
mobile content

24. Adopt Your End-Users’ Point Of View - Value
• Can your mobile end-users easily achieve their goals and does
your mobile website/application create/add value?
Leverage mobile’s unique capabilities
to improve end-users’ experiences
Source: slideshare.net/stephenhay/structured-content-first

25. Adopt Your End-Users’ Point Of View - Delivery
• Does the team responsible for your mobile website /
applications keep performance in mind?
Major US retailer trumpets the
launch of a new mobile site to
meet rising customer
expectations
New mobile website does not follow mobile performance
optimization best practices resulting in 2x mobile response time