Lebara 2014

Lebara 2014

work.shop.play. the details

and our methodology.

•  Mobile phones category survey 2014

•  7th March – 12th March

•  2,095 responses

• Incentivised with 1 x iPad and 5 x £20 Amazon vouchers

49% 51%

39% live in London

71% ABC1 43% 16-34 years

Current ownership

4

8 in 10 urbanites and 9 in 10 Londoners and Tube users own a smartphone

N = 2,071

13% own a regular mobile

phone

3% own a

phablet

83% own a regular smartphone

9 in 10 Londoners & Tube users

Q. What type of phone is your main personal mobile phone?

7 in 10 urbanites have a monthly contract, whilst 1 in 5 of them are on pay as you go. Monthly contracts are even higher for Londoners and Tube users and only 1 in 5 people in London have a pay as you go phone.

5

More than a 3 in 4 Londoners have a monthly contract

Q. Still thinking about your main personal mobile phone, which of the following do you have?

N = 2,071

68%

21%

9% 2%

Urban audience

75%

11%

12% 2%

Londoners

77%

10%

11% 2%

Tube users

Monthly contract Pay as you go Sim only Not applicable

Just over 1 in 10 people pay for one other person’s phone, whilst a smaller proportion of urbanites pay for two or more people.

6

Nearly 1 in 5 urbanites pays for someone else's phone

12% pay for one more person

4% pay for two other people

3% pay for three or more other people

Q. Do you pay for anyone else's phone?

N = 2,070

Most urbanites paying for someone else’s phone pay either for someone inside the family which is usually their partner or their child.

7

Of these people, most pay for their partner

Q. Please indicate on the grid below whose phone you pay for and how you pay.

N = 364

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Monthly contract Pay as you Go Sim Only

Child

Partner

Parent

Other relative

Friend

Colleague

Mobile contracts

2014 25% 20% 13% 12% 10% 8% 5% 3% 2%

2013 27% 18% 12% 16% 12% 9% 4% 2% 1%

% change

-2% +2% +1% -4% -2% -1% +1% +1% +1%

Urbanites are opting for different mobile providers this year compared to last year. Market share for major operators such as O2 has decreased along with Orange and T-Mobile who are now part of EE, although more Londoners and Tube users are with O2.

9

Urbanites are more open minded about their mobile phone provider in 2014

Q. Who is your mobile phone provider for your monthly contract phone?

N = 969 (2013) N = 1,416 (2014)

30% for Londoners

& Tube users

17% for Londoners

Increase in ownership

10

Londoners and Tube users spend more on their contracts than the total urban audience

Q. Who is your mobile phone provider for your monthly contract phone?

N = 1,416

£27.50 £29.20 £29.64

Urban audience Londoners Tube users

Two in five of them are not sure if they will stay with their current provider. This could be a result of operators like EE gaining more traction over the past year due to the increasing awareness and interest in 4G services.

11

2 in 5 urbanites are open minded when it comes to choosing their next operator

Q. When your contract is up, will you stay with your current mobile operator or will you look to change?

N = 1,416

I will definitely stay with my

current operator

15%

? I haven't decided

yet

40%

I'm definitely

going to change operator

3%

I will probably stay with my current

operator

36%

I'm probably going

to change operator

6%

People looking to change their mobile operator are keen to shop around to find a better deal

8%

11%

13%

16%

20%

21%

49%

51%

8%

12%

14%

17%

20%

22%

45%

54%

8%

11%

16%

18%

23%

26%

45%

53%

0% 10% 20% 30% 40% 50% 60%

Want to switch (e.g. pay as you go, sim free)

Want to go on a 4G network

Poor customer service from current provider

Price increases from current provider

Current provider too expensive

Poor network coverage from current provider

Just want to keep my options open

Shopping around gets you a better deal

Tube users

Londoners

Urban Audience

12

Q. Why do you think you will/might change mobile operator?

N = 702

Most people looking to change their mobile contract are also keen to keep their options open and don’t want to feel like they’re obligated to stay with the same company.

More than half of Londoners stay with their current mobile operator because it’s easier

5%

21%

30%

38%

46%

46%

50%

4%

22%

26%

40%

51%

42%

47%

6%

23%

29%

40%

50%

43%

49%

0% 10% 20% 30% 40% 50% 60%

Other

Offers/Extras (e.g. 02 Priority Moments)

Good customer service

I know what they're like

It's easier

Good value for money

Good network coverage

Tube users

Londoners

Urban Audience

13

Q. Why do you think you will stay with your current mobile operator?

N = 714

Good network coverage and good value for money are the main reasons why most urbanites will stay with stay with the same mobile operator, however most opt to stay with the same operator because it’s easier, and a smaller proportion of people say it’s to do with good customer service.

Pay as you go

O2 are the biggest pay as you go brand particularly for Tube users, however the market share between the other major brands is neck and neck.

15

Lebara has a larger market share than their closest competitor

Q. Who is your mobile phone provider for your pay as you go phone?

N = 435

23%

14% 14%

9% 9% 8% 7%

6%

3% 2% 1%

3%

O2 Vodafone Orange Virgin Mobile Giff Gaff T Mobile Tesco Mobile Three EE Lebara Lycamobile Other Other

18% for Tube users

29% for Tube users

12% for Tube users

16

Londoners are spending more on their pay as you go phones compared to the urban audience

N = 435

Q. How much do you spend topping up your phone(s) per month?

£10.50 £11.50 £12.70


£14.50 for Tube users aged 16-34

It’s likely that people on pay as you go don’t want to be tied down to a long-term contract and are more keen to save and manage their spending, although Londoners and Tube users are less prone to financial restrictions.

17

Most pay as you go users are keen to save as much money as possible

N = 435

Q. Why do you have a pay as you go phone?

21%

7%

18%

15%

16%

30%

37%

53%

19%

4%

18%

20%

18%

32%

35%

55%

12%

4%

18%

19%

23%

41%

46%

47%

0% 10% 20% 30% 40% 50% 60%

Other

I have a business phone that I also use

Don't need a new handset

So I don't use it too often

Don't want any direct debits coming out my account

So I can manage how much I'm spending per month

Monthly contract too expensive

Don't want to be tied in long term

Urban audience

London

Tube users

Urbanites with sim only handsets are want to save money and prefer not to be tied down to a long term contract, particularly Tube users. It’s not necessarily about affordability since sim free users are less concerned about contracts being too expensive when compared to pay as you go users.

18

Sim only users are very keen on value for money

N = 187

Q. Why do you have a Sim only phone?

12%

2%

11%

30%

42%

58%

55%

8%

1%

13%

24%

43%

53%

54%

7%

4%

14%

26%

40%

53%

59%

0% 10% 20% 30% 40% 50% 60% 70%

Other

I have a business phone that I also use

So I can manage how much I'm spending per month

Contract is too expensive

Don't need a new handset

Don't want to be tied into a long term contract

Better value for money

Urban audience

London

Tube users

Mobile phone usage

20

9 in 10 urbanites agree that customer service is important when it comes to selecting a new handset or network provider

Q. Please take a look at the following statements and tell us whether you agree or disagree with them. A. All agree

N = 2,071

I feel lost without my mobile phone

69%

I use my mobile phone more often when I'm out and about than when I'm

at home

57%

Good customer service is important to me in a

network provider

89%

I regularly use my mobile phone when I'm on public

transport

62%

I'm always keen to get the latest handset

31%

I'm more bothered about making calls and sending texts than added features

48%

I often use my phone while watching TV

55%

I use my mobile phone a lot more now compared

to a year ago

56%

2013 vs.

2014

Londoners and Tube users are also more concerned about handset features that go beyond traditional functions such as calling or texting, since they are using their phones more often out of home such as in public transport.

21

Londoners and Tube users are more reliant on their phones compared to the urban audience

Q. Please take a look at the following statements and tell us whether you agree or disagree with them. A. All agree

N = 2,071

I feel lost without my mobile phone

80% for Tube users 77% for Londoners 69% for urban audience

I regularly use my mobile phone when I'm on public

transport


I'm more bothered about making calls and sending texts than added features


3 in 10 urbanites use free messaging services regularly. This is even higher for Londoners and 25-34 year olds, who are likely to be actively social and are looking to remain connected with their friends and family.

22

More than half of the urban audience use free messaging services

Q. Do you use a free messaging service such as BBM or WhatsApp?

N = 2,071

31% Regularly

17% Occasionally

6% Rarely

46% No

47% of Londoners

53% of 25-34s

Services such as WhatsApp or Snapchat, along with built-in services like Blackberry’s BBM or iPhone’s iMessaging have made it possible to stay in touch with friends and family anywhere where there is an internet connection. Tube users also benefit from the availability of Wi-Fi on the underground, meaning they can contact people when they are travelling.

23

Free messaging services have had an impact on how people are using their phones

Q. Would you say free messaging has changed the way you use your phone? For example, you might send less texts, make fewer phone calls or go on social networking sites more. A. Yes

N = 1,127 (those who use free messaging services)

59% 64% 65%


24

Free messaging services have made it easier to communicate and share content with each other

Q. How do you think free messaging has changed the way you use your phone?

N = 1,127 (those who use free messaging services)

“Allows for quick and easy conversations to a large number

of people. Sharing of pictures and links at no cost is key

today” Male / 25-34 / London

“Less texting and phone calls to my closed friends and

family”

Female / 35-44 / North

“I often use it to send messages that I require a response to quickly.

Especially with close friends, I'm generally quite aware of those who

check their phone regularly/have texts on silent but WhatsApp on vibrate and I can then also see when they've read it”

Male / 16-24 / London

“It encourages me to make more & frequent contact with friends/

family here & abroad”

Female / 25-34 / Midlands

At home vs. out of home phone usage differs depending on the task…

25

Q. Which of the following things do you regularly use your mobile phone for in each different environment?

N = 2,071

59%

39%

26%

55%

85% 79%

59%

42%

29%

40%

18% 12%

43%

67%

57%

42%

16%

8%

53%

20%

28%

55%

83% 82%

63%

27%

12%

44%

11% 12%

40%

59%

41%

50%

37%

14%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Check/ update social networks

Buying things online

Search for vouchers/ discounts

Send emails Send texts Make calls Browse the internet

Play games Watch videos/films

At home At work Out and about On public transport

Urbanites use their mobile phones more for traditional tasks such as calling and texting when they are out and about. That said, out of home usage goes up for certain tasks such as browsing the internet, sending emails or searching for vouchers or discounts.

…however Londoners and Tube users are more likely to be engaged in social networking and shopping when out of home

26

Q. Which of the following things do you regularly use your mobile phone for in each different environment? A. Only for out and about

N = 2,071


Browse the internet 63% 74% 77% Social networking 53% 66% 67% Search for vouchers / discounts

28% 35% 38%

Buying things online 20% 26% 28%

Usage goes up

When looking at specific tasks that rank higher away from the house, it becomes clearer that Londoners and Tube users are more likely to be engaged in these activities when they are out and about.

..and on public transport

27

Q. Which of the following things do you regularly use your mobile phone for in each different environment? A. Only for public transport

N = 2,071


Browse the internet 50% 68% 77% Social networking 44% 62% 66% Search for vouchers / discounts

12% 16% 17%

Buying things online 11% 16% 17%

Usage goes up

Mobile phone usage on public transport is high. Tube users in particular stand out, which suggests that a large proportion of the urban audience make use if the Wi-Fi service available across the Tube network.

Advertising plays an important role for Tube users and the the young urban audience

10%

9%

6%

22%

22%

20%

39%

41%

53%

9%

9%

6%

20%

19%

20%

36%

40%

52%

9%

14%

6%

16%

19%

22%

30%

39%

40%

0% 10% 20% 30% 40% 50% 60%

Other

None of the above

Talking to people on the phone at the call centre

Reading reviews or articles in magazines/ newspapers

Advertising

Talking to people in the shop

Reading online reviews

Browsing online

Talking to friends/ family/ colleagues

Urban Audience

London

Tube users

28

Q. Thinking back to the last time you got a new mobile phone handset, which of the following influenced the choice you made?

N = 2,071

Talking to friends and family influences urbanites the most before they upgrade their phones. Still 1 in 5 urbanites, Londoners and Tube users and at least a quarter of 16-34s are influenced by advertising.

27% for 16-34 year olds

International calls

This is most likely a result of the cultural diversity in London compared to the wider UK landscape and the diversity of the people living in the city.

More Londoners make international calls regularly than the urban audience

30

Q. Do you use your phone to make international calls? A. Regularly, occasionally and rarely

N = 2,071

35%

Urban audience Tube users

48%

10% regularly 18% occasionally 20% rarely

Londoners

11% regularly 17% occasionally 20% rarely

48%

Londoners and Tube users are more likely to use their phone abroad Interestingly, 6 in 10 Londoners and Tube users will use their phone to browse the internet and 7 in 10 of them will look at emails abroad. This could be a result of regular Wi-Fi availability in across most holiday destinations.

31

Q. When on a trip abroad for leisure, how regularly do you use your phone (for personal use) for each of the following? A. Regularly, occasionally and rarely

N = 1,661 (those who travel abroad for leisure)

67% urban audience 69% London 69% Tube user

Making calls


Browse the internet


Sending texts


Sending/check emails

Strategy for Success •  Always on •  Branding and awareness alone wont cut it •  Key audiences •  Who is outside the M25?

32

Always ON!

33

16 sheets

34

35

36

16 sheets

37

•  150 x 16 sheets for 52 weeks can do 6 months to begin •  Split between Asian, Chinese, Eastern European and African dominated areas •  Copy change every 4-6 weeks

Ticket Gates •  Lebara is Gateway to London •  Zones 3 and out target all ethnic stations for whole year domination •  Target home stations •  Call “home form your home station”

38

Mega Rears •  London and National… •  Route specific •  Create high impact in all cities

39

Bus Interior Dominations •  Couple this with the Mega Rears for a full back and interior domination •  Take all panels upstairs and downstairs to dominate •  Ethnic areas only… can tailor it to suit ethnicity if one is stronger in any area

40

Whats the hook? •  T sides per quarter with offer/product •  City pack •  Change all interiors to reflect the offer also •  Run a TCP/48 sheet campaign

-  Or change artwork on the 16s to reflect the product/offer

41

Life outside M25 •  Manchester •  Birmingham •  Leicester •  Sheffield •  Glasgow •  Edinburgh •  Liverpool •  Cardiff

•  Key cities in the UK with ethnic audiences •  National rail packs

-  Long term landmarks

42

Business

Lebara 2014