Universal McCann implemented the world’s largest survey into portable technology and mobile media platforms as part of its ongoing global digital research programme. The survey covered three key strands of portable technology and mobile media; platforms, content and advertising and marketing, investigating usage, growth potential, attitudes and demand. The research covered 21 markets from five continents and was completed in July 2007, providing a truly unique global perspective.

1. Anytime,
Anyplace:
Understanding
the Connected
Generation
UM Global Digital Insight - In-depth Study 002

2. 2
The rapid rise of portable technology has forever changed the world The promise for content owners and marketing communications
we live in. The mobile phone is the world’s largest Internet, computing is huge but how is this going to be delivered? The gulf between
and communications platform with 2.3bn users; Laptops have industry expectations and what consumers are willing to accept is
overtaken desktops as the PC of choice; the iPod has sold 100m units currently vast.
and a whole wealth of mobile media technologies such as portable
To answer these questions, Universal McCann implemented the world’s
video players are on the cusp of going mass market.
largest survey into portable technology and mobile media platforms
The emergence of these portable platforms has happened in tandem as part of its ongoing global digital research programme. The survey
with the massive growth in social media, creating a proliferation of covered three key strands of portable technology and mobile media;
content such as video clips, digital photos, games, podcasts and platforms, content and advertising and marketing, investigating usage,
vodcasts that can be downloaded or transferred to portable devices growth potential, attitudes and demand.
and consumed in an out-of-home environment.
The research covered 21 markets from five continents and was
This growth in portable technology and content has changed completed in July 2007, providing a truly unique global perspective.
the society and culture we live in. It has transformed our lives to
become increasingly informal, flexible and transient creating massive
dependency on this technology. However portable technology
marketing, advertising and content still remain in their infancy, always
promising “this year’s thing to watch” but never delivering. Investment
today is still focused firmly on text-to-win promotions and
SMS mobile promotions.
WELCOME
© Universal McCann 2007. All rights reserved.

3. 3
THE GULF BETWEEN INDUSTRY
EXPECTATIONS AND WHAT
CONSUMERS ARE WILLING TO
ACCEPT IS CURRENTLY VAST.
PORTABLE
PORTABLE MARKETING
MEDIA
CONTENT COMMUNICATIONS
DEVICES

4. 4
EXECUTIVE SUMMARY
“What did we learn?”

5. 5
EXECUTIVE SUMMARY
Access is universal world-wide Illegal downloads leading the way
• Consumers in the connected world have access to a massive range • Ripping legal CDs to portable devices is the number one source of
of portable devices regardless of local market economic, social and content, 38% have done so. This is still ahead of peer-to-peer illegal
cultural conditions. downloads, which stands at 36%.
Audio devices currently dominate • Both exceed paid-for downloads, which is just 16% despite the fact
• 41% have an audio player versus 20% who have a player with that music is the number one form of portable content that users
video capacity. would pay for.
Mobile phones are evolving from voice to data devices Branded content is the most popular advertising format
• The leading markets are driven by messaging and data. In Japan • Branded content is the most popular of all advertising formats with
just 24% of mobile usage is phone calls, compared to 65% in 67% finding this acceptable or valuable.
the USA.
• Opportunity exists in this future media environment to provide
3G phones are the most in demand portable device worldwide consumers with what they want and drive genuine consumer
• 3G is the number one in demand portable technology – 43% want to benefit by creating, sponsoring or providing access to content.
adopt. This is ahead of all other platforms, including media players,
portable gaming and laptops.
There is a huge appetite for content on these devices that is not
currently being satisfied.
• Role for marketers to create, sponsor and provide access to content
and services.
Portable technology is driving the rise of User-Generated
Content (UGC)
• Digital cameras are the most popular portable device after mobiles –
81% of our connected sample have one. Camera phones are nearly
as popular, 76% have access.
Music, films and games are the most valued content
• Despite the huge amount being created, UGC is the least popular
form of content to consume.
• Professional content producers are not about to be superseded
on future media platforms.

6. 6
HOW WE DID IT
The research was conducted via self completion online surveys All the sample groups were nationally representative to the mobile,
by 10,000 16-54 ‘Connected World’ individuals who are Internet internet-connected universe (Figure 1). In many of the more emerging
connected mobile phone users. Although there are hundreds of markets this defaults to an urban sample.
millions of mobile users without access to the Internet, it was felt that
This selection of countries provided a universe of 690m, 30% of the
the dynamic between mobile and online was essential to access the
global mobile universe. The mix of saturated, maturing and emerging
full range of content and understand the relationship between portable
markets allowed for in-depth and robust assessment of the current
technology and the Internet.
and future global position.
Almost 500 people were sampled in each of the following markets:
France, Germany, Italy, Spain, UK, Greece, Russia, USA, Mexico,
Brazil, India, China, South Korea, Japan, Pakistan, India, Thailand,
Malaysia, Singapore, Philippines, Taiwan and Australia.
Figure 1: Market universe: 690m
Universe Size
180
158.3
160
140
126
120
100
80
64.7
60
44.4
28.6 29.7 30.5 38
40 25.3 25.6
11.4 11.5 11.6 12.2 17 17.6 18.2
20 2 7 7.6
3.2
0
ce
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po
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ex
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i
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Source: Internet World Stats, TGI Europa, Simmons & Local market surveys

7. 7
“THE MINIMUM REQUIREMENT TO BE INVOLVED WAS
A MOBILE PHONE AND ACCESS TO THE INTERNET.”
MARKETS TARGETED IN RESEARCH
France, Russia
Germany, South Korea
USA Greece, Italy, Japan
Spain, UK, Pakistan China
Mexico India Taiwan
Philippines
Thailand
Malaysia
Brazil
Singapore
. Australia

8. 8
PLATFORMS
“What’s in your bag?”

9. 9
WHICH PORTABLE PLATFORMS
ARE THE MOST POPULAR? Figure 2: Device ownership global average
90 90
Portable devices have proliferated over the past few years - Figure 2
Fig 2 80
Fig 2 80
% Ownership
% Ownership
shows the global average for device penetration amongst our sample 70 70
of mobile and internet connected individuals. The ranking of devices 60 60
50 50
is particularly relevant as it demonstrates the entry points for content 40
40
and advertising. 30 30
20
20
The portable device that leads the way is the digital camera, 10
10
0
with 75% currently owning one. This high availability of cameras 0
ay
e
(a inte ble y)
en lavyide aswi )
ce
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n au nt)
ud h le)
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underlines the extent to which photographs are the first point of
utth iooo e
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content creation bar none.
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The other interesting point is the dominance of the MP3 player over
ta
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PS ail l d
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the iPod. At a global level this can be attributed to the success of
3
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ld
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rp
Aop
La
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m
Ot
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ai
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low-cost flash players in the Asian markets. It is also clear how
abh
m
Ot
t
L
rtO
Po A
e
e
PD
bl
bl
Po
audio-only platforms lead video ones. This is a clear implication on
rta
Po
Po
the distribution of portable content.
Laptops are now more likely to be wireless and at 31% are an
Figure 3: Multiple device ownership global average
established platform for out-of-home and significantly lead portable
gaming devices. 1 (Just a
mobile)
1 (Just a 2
At 31% 3G compares favourably to many other portable media mobile) 3
9%
2 Fig 3
technologies amongst our mobility audience. Dedicated 3
4 9%
29%
mobile email devices such as the Blackberry have yet to make an Fig 3 5+
impact with just 6% claiming to use them, showing that they are still
4
29% 18%
5+
firmly business devices. 18%
Unsurprisingly multiple device ownership is the norm (Figure 3).
A massive 25% have five or more of these devices in their ownership.
19% 25%
19% 25%

10. 10
COUNTRIES COMPARED
When looking at adoption by market (Figure 4) the main surprise Figure 4: Device penetration by market
is the extent of ownership in supposedly ‘less developed’ markets.
This reflects the nature of the connected audience and shows how Portable media player Laptop Digital Camera
100
involved and active this segment of Internet-connected mobile users 90
are, regardless of a low overall penetration within their country. If you 80
are connected you are connected, where ever you are in the world. 70
% Ownership
60
This underlines the divide that exists in emerging markets between the 50
online and the offline audience. 40
30
Looking at specific devices it is clear that the portable media player 20
(music, video and combined players) is the main portable technology 10
0
platform. The majority of these devices are music only and the high
Au tan
a
Gr a
Ge ce
Ta a
M ece
a
M il
Ru s
Pa n
o
e
ly
es
Fr K
n
a
ill US
an
l R th ny
ng a
po nd
ut ndi
li
t
si
re
ic
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az
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ai
Si ssi
U
Ita
en
an
in
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a
iw
ay
s
ex
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es aila
ap
Sp
Ch
Br
e
levels of usage in emerging markets can be linked to the popularity
Ja
rm
ki
I
ip
st
nd
al
h
Ph
So
of low cost flash based players such as iRiver and Creativelabs.
Al
Laptops are the second biggest platform, a real proof of its increasing
dominance over desktops in all markets. Portable gaming in
many cases is more popular among the connected audience in
the emerging markets than the connected audience in supposedly
‘developed markets’.

11. 11
THE IDEA OF CONVERGENCE
IN TECHNOLOGY
Convergence in portable technology is a theme that rises again and
again. The huge number of consumers with multiple devices (Figure 5)
shows that it is something that is yet to catch on. Despite this there
is a push to provide us with devices that deliver everything – mobile,
gaming, music, video and applications all in one. Apple’s launch of
the iPhone and the hype that followed epitomises this. Also the growth
of mobiles with music facilities as previously demonstrated shows the
Figure 5: Percentage Completely Agree with the statement “I like
creep of convergent devices. It is also particularly pertinent considering
Fig 4 the idea of having one portable device to fulfill all my needs”
the large number of portable devices that the mobility audience own.
Mexico
Malaysia
Figure 5 shows the percentage that agree with the statement “I like Brazil
India
the idea of having one portable device to fulfil all my needs” and there Philippines
Spain
is a clear trend. The top markets driving the demand for convergence Greece
China
are the emerging markets. Mexico leads with a massive 79% strongly Pakistan
Russia
attracted to the concept of convergent devices. The next seven markets Italy
Singapore
are Malaysia, Brazil, India, and the Philippines. The markets where Thailand
the convergence is least popular are all affluent. The lowest figure is Australia
France
Japan with 27%, Taiwan with 29% and the US with 31%. Convergence UK
South Korea
is clearly driven less by aspiration and more by financial necessity. Germany
US
There is no real need for a convergent product in the US, Germany Taiwan
Japan
and Japan – multiple dedicated devices is affordable and aspirational.
0 20 40 60 80
% All Agree
Convergence – “The concept of a technological device delivering more than one application
or purpose. For instance a mobile phone may also play music or stream live TV. Devices
have become increasingly convergent as technology has miniaturised and competition
between devices manufacturers has increased.”

12. 12
BOND WITH PORTABLE
TECHNOLOGY
To understand the relationship respondents have with their portable
technologies we asked them to declare which ones were always taken
out-of-home and which ones were occasionally used. The results
(figure 6) are very clear; the mobile phone is the key device and
has the strongest relationship with the user. Virtually 100% of our
universe take the phone everywhere they go. The next most important
technology is the portable music and video player, with more than 40%
of owners always taking out-of-home.
Figure 6: Which devices do you take out of home? Global average
Sometimes Take
Always Take
100%
90%
% Take Out Of Home
80%
70%
60%
50%
40%
30%
20%
10%
0%
a
vi ng
op
e
ay /
er
on
pl ic
ce
De mi
pt
er
am
o us
ph
La
ga
de m
lc
ile
e
vi ble
ta
bl
ob
gi
rta
rta
M
Di
Po
Po

13. 13
THE ROLE OF PORTABLE
TECHNOLOGIES
Respondents were asked to state what device they typically used in The laptop in contrast, is all about in-home usage. Unsurprisingly it
certain occasions. Figures 7 - 10 show the top usage occasions for is driven by working and studying but the extent to which users are
portable devices. combining laptop usage with in-home media consumption shows
how important it is for online and TV and online and radio. This is
Mobile Phones usage is clearly defined by travelling, four of the top
confirmation in a global context of the much talked about concept of
six are forms of transport, trains, underground, bus, walking and the
‘media meshing’ i.e consuming more than one media at the same time.
top quite surprisingly is in a car. The two out-of-home occasions when
mobiles are most used is at work and while shopping. The combination Portable media players and portable gaming share the same
of these needstates shows how crucial the mobile is to our out-of-home needstates – it is all about travel, with a mix of short commuting and
lives. It is also interesting that the commonly held stigma that people long-haul travel. It is also very interesting to see that these two devices
do not want to use mobile phones on public transport does not apply. have also crossed over with in-home media consumption – again
These figures reflect the huge growth of data and messaging. driving the idea of media meshing but in more of an unexpected way.
It is clear from all platforms that portable technology also has a key role
Fig 7 to play in the home. Fig 8
Figure 7: Where do you use your mobile phone? Global Average Figure 8: Where do you use your laptop? Global Average
Mobile Phone Laptop
In a car (passenger) At home while watching TV
Walking At home while listening to the radio
Shopping At work
At work At home while on the Internet
On a bus On a plane
On train / underground In a car (passenger)
58 60 62 64 66 68 70 72 0 5 10 15 20 25 30 35
% use % use
Figure 9: Where do you use your portable media / music player? Global Average Figure 10: Where do you use your portable gaming device? Global Average
Portable Media / Music Players Portable Gaming Device
On train / underground On a plane
Walking On train / underground
On a bus In a car
While exercising On a bus
On a plane At home while listening to the radio
At home while watching TV At home while watching TV
0 5 10 15 20 25 30 35 40 45 0 1 2 3 4 5 6 7 8 9 10
% use % use

14. 14
FUTURE GROWTH IMPLICATIONS
Good news for the mobile phone manufacturers and the networks, The extent of portable device ownership is staggering, both in terms
43% of the global sample intend to obtain a 3G phone in the future, of penetration across markets and the number of devices that users
promising huge potential (Figure 11). This is followed by video iPods; have. There is clearly a massive demand across the connected world
not only good for Apple but an indication that out-of-home video is for these products and the lifestyle they enable. At present the
set to be a major global platform. Wireless laptops come in third, key platforms for marketers and advertisers are centred around
confirming the ever growing demand for portable computing. audio, with the mp3 player and the audio only iPod being found
everywhere. In theory this should be reflected in the content that is
The technologies that lag are varying. The Nintendo DS lags its rival
produced today.
Sony PSP, indicating that dedicated gaming devices are not as popular
as multiple content devices. Non-wireless laptops follow, confirming the The short-term future is multi-media. 3G phones are the number one
shift in demand to flexible out of home computing. Next come portable most in-demand portable product, while the video iPod is number
email devices which show that consumer demand for dedicated email two. Two key platforms for the distribution of video.
is still relatively low thanks to its association with business.
It is also clear how important portable technology is becoming a
source of User-Generated Content, as well as a media platform.
The digital camera is the number one portable technology device
in its own right and a key link between the mobile world and social
Figure 11: Which devices are you interested in purchasing in the future? Global Average media platforms.
Global Average Nonetheless the primary portable will always be the mobile phone.
Firstly it is ubiquitous, secondly there is massive demand for 3G
3G enabled mobile phone
Ipod (video capability) guaranteeing its role as future multi-media device and thirdly its
Laptop with wireless (e.g Centrino) carried out-of-home on 100% of occasions. Particularly as they
Mobile Phone
Digital Camera
continue to move away from multi-media devices.
Other portable media player
PDA (personnel digital assistant)
Other MP3 / digital audio player
Ipod (audio only)
PSP (Playstation portable)
Portable email device (e.g Blackberry)
Laptop without wireless/wifi
Nintendo DS
0 10 20 30 40 50
% plan to purchase

15. 15
MOBILE PHONE USAGE
The mobile phone is the worlds biggest computing and portable There are however big variations by markets, even among the numbers
media platform. It is forecasted that 3.3bn will be connected by 2011* of phone calls and SMS messages sent. Figure 13 shows the share of
– growth driven by Asia, Africa and Latin America. The developed mobile usage occasions by country. The immediate observation is the
markets have reached or are reaching 100% penetration; extraordinary overall share of SMS, which has extensively eaten into voice usage, but
Fig 12
for a relatively young technology. yet to be impacted by MMS.
Figure 12 shows the extent to which users have integrated phones into The other striking fact is the extent to which Japanese usage is driven
their lives. On averageUsed the our global sample makes more than five5+ times by data, with 23% of usage made up by Internet usage – by far the
41% of Internet a day
calls a day, while 35% send more than five texts a day; a huge volume 2 – 4 times a day in the world. Only three markets have phone calls above 60%
highest
Send a picture (MMS)
of communication. Once a day usage occasions: USA, Thailand and Taiwan and this will surely
of
message
2 – 3 times a week
decline over time.
Internet and MMS frequencies are much lower, but not insignificant. Once a Week
Send a text (SMS)
30% use mobile internet more than once a week and 34% send
message Less often
an MMS more than once a week – encouraging opportunities for Have used once
Never
multimedia content. Make a phone call
*MIC (Market Intelligence Center)
0% 50% 100%
Figure 12: Frequency of using your phone by method of communication - global average Figure 13: Percentage share of total usage occasions by method of
% frequency of communication
communication - global average
12 Fig 13
Phone Calls Text (SMS) Text (MMS) (Internet)
USA
UK
Used the Internet
5+ times a day Thailand
Taiwan
2 – 4 times a day
Send a picture (MMS) Spain
Once a day South Korea
message
2 – 3 times a week Singapore
Once a Week Russia
Send a text (SMS)
message Less often Philippines
Have used once Pakistan
Never Mexico
Make a phone call Malaysia
Japan
Italy
0% 50% 100% India
Greece
% frequency of communication
Germany
France
Phone Calls China (SMS)
Text Text (MMS) (Internet)
USA Brazil
UK Australia
Thailand Global Average
Taiwan
Spain 0% 20% 40% 60% 80% 100%
South Korea
Singapore % Share of total mobile phone communications occasions
Russia
Philippines

16. 16
MOBILE PHONE FEATURES
Multi-media handsets are now the norm amongst our connected Only two markets fail to reach the 60% penetration threshold, which is
universe. Figure 14 shows feature penetration across the sample. interestingly India and the US - two markets at the opposite ends of the
The enablers of content creation and media are now all mainstream. economic development scale.
Colour screens, cameras, web browsing and MMS are all around the
Comparing this to the penetration of music players, a slightly different
80% penetration mark. However convergence features have had
picture emerges. There are a larger number of developed mobile
mixed performance. Music players have reached 50% penetration,
markets further down the table. The relatively strong performance of
but more emerging technologies such as Live TV, video calling and
developing markets reflects the financial necessity of convergence
payment technologies have yet to make significant penetration, all
– the idea of having separate portable devices is more of a luxury.
falling below 20%.
Not a problem in markets such as Japan, the US and France where
There are however significant differences when you look at the market dedicated business and multiple handsets are more likely to exist.
splits. Figures 15 and 16 show the claimed penetration of camera
phones and music players – two key technologies for creating content
and enabling media on a mobile device. The markets leading the
charge are a mix of developed Asian markets and European; South
Korea, Greece, Japan, Singapore and the UK make up the top five.
fig 15 fig 16
Figure 14: Mobile phone feature penetration - global average
fig 14 Figure 15: Penetration of cameras on Figure 16: Penetration of music
mobile phones players on mobile phones
Global Average Camera Music Player
Colour Screen South Korea China
Picture messages (MMS) Greece Greece
Camera Japan South Korea
Internet browsing (WAP / GPRS) UK UK
Emails Italy Italy
Video Camera Mexico Global Average
Bluetooth
China Spain
Music Player
FM Radio
Spain Camera Mexico
Global Average Brazil
Video Calling
France Germany
Facility to watch live TV South Korea
Australia Russia
Electronic payment system Greece
Germany India
0 20 40 60 80 100 Russia Australia
Japan
Brazil France
% penetration India UK Japan
US Italy US
Mexico 20
0 10 30 40 50 60 70 80 90 100 0 20 40 60 80
% penetration % penetration
China
Spain