Messenger Wars How Facebook lost
its lead

Facebook is the giant in
social networking but WhatsApp has taken the lead in social messaging on mobile

A survey of 3,759 Android
and iOS smartphone owners in the US, Brazil, South Africa, Indonesia and China, carried out by mobile market research company On Device Research, reveals that Facebook Messenger no longer leads in social messaging.

Top 3 social messaging apps
on smartphones Research data from the US, Brazil, South Africa, China and Indonesia shows that Facebook Messenger leads only in the US. 46% 93% 35% 24% 46% 6% Facebook WhatsApp Messenger Twitter WeChat Sina Weibo 68% 47% WhatsApp Facebook Messenger 72% 49% 34% BBM 43% 30% WhatsApp Facebook Messenger Skype Source: On Device Research, November 2013 N=3759, US, Brazil, China, South Africa, Indonesia smartphone owners Skype 37% WhatsApp 36% BBM Line

The dominant way to stay
in touch Messaging apps aren’t just competing against each other. They are challenging calling, texting and emailing on the phone. Q: How often do you use these ways of staying in touch on your phone? % of respondents Average of 5 countries 86% 75% 73% 60% 63% 40% 31% 33% 17% 9% 6% Social messaging 10+ times/day 28% Voice calls 2-3 times/day Source: On Device Research, November 2013 N=3759, US, Brazil, China, South Africa, Indonesia smartphone owners Per country charts can be found in the annex at the end of the presentation. 24% 24% 12% 7% SMS Once a day Email At least once/day combined

Visible differences between the US
and China Q: How often do you use these ways of staying in touch on your phone? 75% 72% 46% 71% 69% 44% 29% 29% Social messaging apps Voice calls SMS 85% 81% Email 79% 40% 61% 48% Social messaging apps Voice calls More than 10 times a day Source: On Device Research, November 2013 N=1406 in the US, n=544 in China, smartphone owners Per country charts can be found in the annex at the end of the presentation. 41% 10% SMS Email Daily

Two main reasons which drive
people to use multiple instant messaging apps 1. Different friends using different platforms is the biggest reason – the network effect is a challenge all messaging platforms need to overcome to grow. 2. Different apps for different features is a close second. Only 12% globally said they use different apps for friends vs. for strangers (for dating, commerce etc.)

58% use a variety of
IM apps because their friends are spread over different networks. Q: Why do you use different messaging apps? 73% 58% 57% 52% 54% 55% 55% 62% 47% 42% 12% 10% Global 13% 10% US 50% 10% 8% Brazil 8% Indonesia 11% 15% 7% South Africa Different friends use different apps Because of different features One for people I don't know well, other(s) for friends/family It used to be free, it's not any more Source: On Device Research, November 2013 N=3759, US, Brazil, China, South Africa, Indonesia smartphone owners 55% 12% 12% China

Average number of messaging apps
installed? 4.2 4.1 2.6 Indonesia South Africa Source: On Device Research, November 2013 N=3759, US, Brazil, China, South Africa, Indonesia smartphone owners Brazil 2.4 China 2.1 US

Big differences country-to-country popularity of
WeChat mostly driven by China Q: Which social messaging app do you use at least once a week? BR 72% ID 43% US 35% CH 93% SA 68% BR 49% US 46% CH 3% WhatsApp Source: On Device Research, November 2013 N=3759, US, Brazil, China, South Africa, Indonesia smartphone owners CH 9% SA 47% ID 23% Facebook US 6% ID 20% BR 5% WeChat SA 18%

WhatsApp is now the leader
in social messaging apps across the 5 markets covered Q: Which social messaging app do you use at least once a week? 44% 35% 28% 19% WhatsApp Facebook Messenger Source: On Device Research, November 2013 N=3759, US, Brazil, China, South Africa, Indonesia smartphone owners WeChat Twitter 17% 16% BBM Skype

Even in the US, Facebook
Messenger is facing stiff competition as WhatsApp gains popularity – especially in the 16-24 age group Q: Which social messaging app do you use at least once a week? 40% 46% 37% 51% 50% 39% 33% 22% 16-24 Source: On Device Research, November 2013 N=1167, US smartphone owners 25-34 Facebook Messenger 35-44 WhatsApp Over 45

d see a We] di
[ users in daily rease dec among ifically spec eens. unger t yo David Ebersman CFO of Facebook October 30, 2013 Source: Facebook earnings call, October 30, 2013

Only a quarter of smartphone
users in the US use both platforms actively Q: Which social messaging app do you use at least once a week? 45% use 31% use 24% only only Facebook WhatsApp Source: On Device Research, November 2013 N=895, US smartphone owners who use Facebook and/or WhatsApp

WeChat spilling out of China
Line’s popularity outside of Japan is well known, our research shows that WeChat is similarly being adopted in new markets. WeChat crossed 100 million registered users outside of China back in August 2013. % of smartphone owners using weekly 20% 18% 6% US Source: On Device Research, November 2013, TechinAsia, August 2013 N=2524, US, South Africa, Indonesia smartphone owners Indonesia South Africa

BBM shows significant popularity in
Indonesia and South Africa Our survey excluded BlackBerry owners so people who use this messenger have installed the BBM app which was released 3 weeks prior to the survey. Q6. Which of these messaging services do you use at least once a week? % of smartphone owners using weekly 37% 34% 13% US Source: On Device Research, November 2013 N=2524, US, South Africa, Indonesia smartphone owners Indonesia South Africa

1.2 billion photos a day
Shared via just 4 services

CEO and founder of WhatsApp
Source: https://twitter.com/jankoum/status/394259718606053376, October 2013

More photos are now shared
via Snapchat than Facebook Millions of photos shared a day Instagram 55m Facebook 350m WeChat 400m Snapchat 400m Source: Company reports, November 2013

Snapchat with its self-destructive photos
and videos is a strong challenger despite a relatively small user base Q: Which social messaging app do you use at least once a week? In the 5 countries that we researched only the 16-24 age group in the US showed significant use of Snapchat. 16-24 20% 25 or older 3% Snapchat in the US Source: On Device Research, November 2013, WSJ November, 2013 N=1167, US smartphone owners According to Evan Spiegel, the CEO of Snapchat, 70% of the services users are women.

ng built raph bei e
social g ooks of our With th address b accessible into the es, freely bile devic o rms, the m ing platfo ll messag ng the market for a to enteri barriers ng down. re tumbli a Alistair Hill CEO, On Device Research

Money in stickers Line earned
$27.4 million in Q2/2013 from them Source: The Next Web, August 2013

How do instant messengers make
money? • Stickers, e.g. $0.99 for a set of 16 in WeChat. Line makes over $10 million a month this way. • Promoting other apps and games that monetise via inapp purchases • Subscription fees Source: The Next Web, October 2013

Stickers are well known and
actively used by almost 40% of smartphone users Q: Do you use stickers / emoji in messaging apps? 84% Have used 74% at least once 82% 69% 54% 46% 37% 35% 18% US 24% 13% Brazil Use daily Source: On Device Research, November 2013 N=3759, US, Brazil, China, South Africa, Indonesia smartphone owners 43% 38% Indonesia Never used 18% South Africa Have used 13% China

ress our like to exp
and aniards As Sp ur bodies s using o stickers feeling sions the ial expres fac ever stay l. I can n e very coo ar d long if boyfrien ry at my a ng sticker. e a cute e sends m h Marina Couso (29), Line user from Spain Source: Reuters, October 2013

Over 20% of sticker-users have
purchased paid stickers at least once Q: Have you ever paid for stickers / emoji in messaging apps? Have bought stickers at least once 11% 80% Never 31% 19% 9% Yes, once More than once Source: On Device Research, November 2013 N=2610, US, Brazil, China, South Africa, Indonesia smartphone owners 27% 14% China South Africa Indonesia US 12% Brazil

Want Excel tables with the
survey data? Request from siim@ondeviceresearch.com On Device Research uses the mobile internet to gain access to consumer opinions at any time, place or country.

On Device Research uses the
mobile internet to gain access to consumer opinions at any time, place or country. We have undertaken projects in 58 countries Over 12 million people have taken one of our surveys on their mobile

For more info: ondeviceresearch.com Siim
Teller siim@ondeviceresearch.com @teller Follow us:

Appendix

US Q: How often do
you use these ways of staying in touch on your phone? 75% 72% 71% 46% 69% 44% 35% 29% 29% 27% 21% 18% 8% Social messaging apps 13% 11% Voice calls More than 10 times a day Source: On Device Research, November 2013 N=3759, US, Brazil, China, South Africa, Indonesia smartphone owners 6% SMS 2-3 times a day Email Once a day Daily

Brazil Q: How often do
you use these ways of staying in touch on your phone? 86% 71% 67% 66% 62% 40% 30% 24% 28% 26% 24% 15% 8% 4% Social messaging apps Voice calls More than 10 times a day Source: On Device Research, November 2013 N=3759, US, Brazil, China, South Africa, Indonesia smartphone owners 12% 7% SMS 2-3 times a day Email Once a day Daily

Indonesia Q: How often do
you use these ways of staying in touch on your phone? 89% 83% 69% 63% 61% 48% 36% 30% 28% 24% 21% 13% 9% 7% Social messaging apps 22% Voice calls More than 10 times a day Source: On Device Research, November 2013 N=3759, US, Brazil, China, South Africa, Indonesia smartphone owners 5% SMS 2-3 times a day Email Once a day Daily

South Africa Q: How often
do you use these ways of staying in touch on your phone? 94% 79% 75% 73% 65% 31% 13% 31% 29% 10% 2% Social messaging apps Voice calls More than 10 times a day Source: On Device Research, November 2013 N=3759, US, Brazil, China, South Africa, Indonesia smartphone owners 11% 8% SMS 2-3 times a day Email Once a day Daily

China Q: How often do
you use these ways of staying in touch on your phone? 85% 81% 79% 61% 48% 40% 41% 31% 28% 18% 17% 7% Social messaging apps 7% 5% Voice calls More than 10 times a day Source: On Device Research, November 2013 N=3759, US, Brazil, China, South Africa, Indonesia smartphone owners SMS 2-3 times a day 12% 10% Email Once a day Daily