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This deck is compiled by On Device Research on the philippines mobile internet trends. a country with more than 97m people and more than 70% of the population are age 35 and below, this tout to be the next big market for mobile and internet services in South East Asia after Indonesia. It is relatively "young" and the market is just starting to grow. the issue with philippines is the bad infrastructure that is hampering a lot of internet business. Hope that give them a bit more time and they can get the things right
THE PHILIPPINES MOBILE INTERNET CROWD
YOUNG, AFFLUENT, AND GROWING FAST
Photo: Sivesh Kumar
This Philippines mobile trends report combines data from a recent survey of over 900 mobile internet users (smartphone and feature phone), and other publicly available research. Mobile internet users is a small but fast growing group of people in a country where 18 million Filipinos live live on $1.25 a day or less. The survey was conducted by On Device Research in mid-June, 2014.
Source: Asian Development Bank 2013
ON
Language preference of the mobile internet users
40% English
60% Filipino
OO ON
ON ON ON ON
ON ON
ON ON
ON Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines
97 million!
101%!
70%!
39%!w!
O!
96%!
15%!
g
Smartphone penetration Mobile penetration
Internet penetration
Population Netizens under 29 years
Netizens on social media
Source: Nielsen, Tigercub Digital, US Census Bureau, World Bank
The Philippines 2014
The Philippines has the lowest smartphone penetration in South-East Asia O
15%
expected to reach 50% in 2015
] ] ]
Indonesia 23%
Malaysia 80%
Thailand 49% Singapore 87%
Source: Tigercub Digital, Oxford Business Group
>
+!
Smartphone penetration is growing faster in the Philippines than Indonesia and Vietnam combined
Source: International Data Corp 2014
] ] Android smartphones from the local “Big 3” are priced in
the $50-$250 range O ]
Lower priced local brands are expected to drive smartphone growth
Samsung rules, for now Very competitive market, lots of different brands with low market share making up almost a third of the Android phones in use
3%
3%
3%
5%
7%
7%
29%
43%
MyPhone
Alcatel
LG
Lenovo
CherryMobile
Sony
Other
Samsung
Source: On Device Research, June 2014 n=900 Android users in the Philppines
Huawei is aggressively targeting the smartphone market, aiming to gain 10% market share by 2015.
In June 2014 it launched Ascend G6 at half the price ($228) compared to the previous model P6.
Other Chinese brands like Oppo and Xiaomi are likewise eyeing the country for their Asian expansion.
Huawei has eyes on the Philippines
Source: Tech in Asia, Philippine Star
28 million mobile phones sold in 2013
N O22.9 million feature phones
5.1 million smartphones
82% 18%
Source: International Data Corp 2014
FILIPINO MOBILE INTERNET USERS
Young, urban, affluent
NB! Survey data on following slides represents the average mobile internet user
78O
f k 56% males 44% females
f Average for South-East Asia
63% males
37% females k
Source: The Mobile Marketing Association
More women go online with their phones compared to South-East Asia average
16-24 53% 25-34
35%
35-44 9%
45+ 3%
88% of the total mobile internet population is under the age of 34!
N] ] ]
Mobile market is young and will continue to grow – it’s vital for brands to target these young mobile-first consumers.
Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines
Tablets more popular than laptops Smartwatches, fitness trackers, and e-readers owned by very few Q. What consumer electronics do you own?
2%
2%
3%
7%
23%
25%
30%
E-reader (e.g. Amazon Kindle)
Fitness tracker (e.g. Fitbit)
Smartwatch
Smart TV
Desktop computer
Laptop/netbook
Tablet computer (e.g. iPad)
38% of English speakers own a laptop or netbook, while only 16% of Filipino speakers do
Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines
85% plan to purchase an electronic device in the next six months Q. Which of the following consumer electronics do you plan on purchasing in the next six months?
2%
4%
9%
10%
14%
15%
22%
24%
29%
E-reader
Fitness tracker (e.g. Fitbit)
Smartwatch (e.g. Samsung gear)
Feature phone
Desktop computer
Smart TV
Tablet computer (e.g. iPad)
Smartphone
Laptop/netbook
Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines
Top mobile carriers in the Philippines ` ON
54% share 29% share 46 million subscribers 24.5 million subscribers
Other service providers include Sun Cellular, Talk’N Text, Touch Mobile, and ABS-CBN
Source: Zong
15% 17%
12%
8%
11% 13%
2% 1%
Less than P99 P100-P299 P300-P499 P500-P799 P800-P999 P1,000-P1,799 P1,800-P2,499 More than P2,500
Note: 1 Philippine Peso equals 0.023 US Dollar
44% spend less than $12 a month on mobile plan Q. Approximately how much do you pay on average per month for your mobile plan?
$12 per month
$41 per month
Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines
The Philippines has one of the slowest LTE speeds worldwide
Smart Communications is the 5th slowest network among 38 surveyed with 4.43 Mbps
Globe Telecom is the 7th slowest network with 6.46 Mbps
* Australian networks have the fastest LTE with 24.5 Mbps
Source: Open Signal Photo: EricOuano
w 2 out of 5 mobile internet users are happy with their data speed
41% 34% 25%
Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines
SATISFIED NEUTRAL UNSATISFIED
^ 17%
7% 12%
3%
50%
11%
100MB 700MB 3GB 5GB Unlimited I don't have internet access
through my postpaid plan
Filipinos are drawn to unlimited internet packages Q. Select the level that is closest to your mobile internet package
Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines
40% of smartphone owners in the Philippines spend over 5 hours a day
on their phone Source: Global Web Index
=
94% of internet users in the Philippines use Facebook
Only 54% in the US do
F
F G
F
G
F G
F F G
F G F
G Source: Tech in Asia
42% of total screen time in the Philippines is on social media
Filipino social media users are #1in the Asia Pacific
region spending 4 hours/day in all social channels
China: 1.5 hours/day Indonesia: 2.9 hours/day
Source: Tencenet, Facebook, CNNIC, Statistic Brain
9%
8%
10%
15%
16%
17%
27%
27%
82%
Kakao Talk
Line
Yahoo Messenger
Skype
Viber
Facebook Messenger
b
80% use Facebook Messenger Note that 2nd and 3rd most popular apps both offer free international calls Q. Which chat apps do you use regularly (at least once a week)?
Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines
Apps are extremely popular
32% of Filipino smartphone owners download six or more apps per month
45% of these people have paid for app installs or in-app purchases each month
78% of mobile internet users downloaded an app or game in the last month
Source: Jana 2014, Vserv 2013
b
2%
3%
4%
8%
10%
11%
19%
29%
Virtual gifts
Gift cards
Physical items
Calls worldwide
Stickers
Videos
Music
Games
52% have recently bought something on their phone Q. Which of the following have you purchased via a social messaging app within the past week?
Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines
In November 2013 Typhoon Haiyan devastated the Philippines killing over 6,250 people and injuring another 28,650.
App developers and mobile operators stepped in to save lives change the way people are warned about natural disasters in the future.
Disaster warnings go mobile
Source: Wikipedia
Apps like RaincheckPH and iTyphoon alert users of weather threats
However, only 16% of mobile internet users have used one of these typhoon warning apps. What about the rest?
Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines
In June 2014 the Philippines passed a law ordering all mobile operators to send warnings to those in the path of typhoons and other natural disasters.
Mobile emergency alerts are now required by law
Source: Dailyjournal, June 2014
Typhoon relief gave mobile cash usage a boost
Globe BanKO partnered with Mercy Corps to help people receive mobile cash transfers as only 27% of people have bank accounts.
Nearly 22,000 households were introduced to the service, receiving much needed financial support to recover from the disaster.
Source: GMA News, May 2014
73% of the Filipino population does not have a bank account
Credit card penetration is only 3%
Alternative payment methods have cropped up to cater the cardless population.
Source: Tech in Asia, World Bank Photo: Kevin Servigon
The average population is quite different from the mobile internet users…
9%
8%
8%
10%
11%
12%
Other payment services
BancNet
PayCash by Pesopay
Smart Money
PayPal
GCash
Over half have used online payment services in the last 3 months Q. Which payment services have you used in the last 3 months?
Other payment services include for example Dragon Pay, Apptivate and Bitcoin.
Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines
Ewallets from leading mobile providers are the most popular O Ewallets like Smart Money and GCash allow users to pay bills, reload airtime, and transfer money to businesses and people
O Users load ewallets with cash via in store transactions
O 22% use either Smart Money from Smart Communications or GCash from Globe Telecom
Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines
Online cash payment platforms
# • Cash payment processing services that allows
merchants to sell online and get paid in cash. • Merchants can accept cash payments at more
than 5,000 outlets nationwide. • Usage of these services isn’t widespread yet –
only 8% have used PesoPay.
Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines
Over half are streaming music Q. Which of the following music streaming services do you use regularly (at least once a week)?
8%
3%
6%
8%
10%
11%
13%
Other
Amplify
Radio Republic
Soundcloud
My Pinoy Radio
Spinnr
Spotify
Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines
Globe Telecom offers its GoSURF mobile data plan subscribers free Spotify Premium access. 70% of people who said they use Spotify are on GoSURF data plan.
Source: On Device Research, June 2014 n=900 mobile internet users in the Philippines
Spotify usage edged on by telco tie-in
On Device Research uses the mobile internet to gain access to consumer opinions at any time, place or country.
Want Excel tables with the survey data? Contact [email protected]
ondeviceresearch.com
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