Mail Readers & Mobile

Current market place and where our readers fit The value of our readers and their thoughts on the market Insight used to analyse our readership and understand motivations Engagement is key

Advertising understanding from case studies

What does the market place look like? An ageing population…21.9m (44%) are over 50

At present, Smartphone penetration is 45%. If similar to other new technologies penetration will grow close to 100%. Penetration under 35s – 50% Penetration under 45s – 72% Penetration over 45s – 28% Tesco estimates that 90% of the UK population will have a smartphone by 2016 …it will double its mobile online grocery sales to £5.5bn in the next five years. 26m iPhones sold between Apr-Jun 2012 – 28% up YoY

Where will the new customers come from? Source: TGI GB 2012 Q3 (Apr 11 – Mar 12) – Ownership of Smartphone Tesco stat – From Mintel Aug 2012 iPhone stat – From Gartner July 2012

Mail brands deliver the ‘effective majority’ Rogers Adoption/Innovation Curve Mail brands deliver the effective majority

Mobile and smart phones are no longer the domain of Innovators or Early Adopters, they are now the mainstream.

Mail readers are as technically savvy as the next person 61%

I like to stay up to date with new technology

61%

55%

I like reading about new technology/gadgets

52%

I’m often asked for advice when it comes to new technology

37% 35%

22%

I am always one of the first to try out new technology

Price is no object when purchasing the latest technology

% agreeing

27% of Mail readers are likely

21%

to purchase a tablet instead of a laptop when they next upgrade. This is compared to

18% 15%

Mail Readers

GB rep

25% of the GB population.

Source: IPSOS MORI Reader panel June 2012 Technology Q3. To what extent do you agree or disagree with the following statements about technology? Base: All respondents: 1003 GB rep, 1024 DM/MoS AA/QO Q15. To what extent are you likely or not to purchase a tablet instead of a PC/laptop when you next come to upgrade your PC/laptop? Base: All respondents who access the internet through a PC/laptop: 917 GB rep, 911 DM/MoS AA/QO, 673 MOL Monthly users (Unweighted)

The Mail delivers early Technology adopters as well Technology adopters

I’m often asked for advise when it comes to new technology (agree net)

Mail Readers

16%

GB rep

16%

I’m always the first to try out new technologies (agree net)

Confident with using new technology (10-7 net)

Source: IPSOS MORI Reader panel June 2012 Technology Q3. How confident or not, do you personally feel when using new technology items? Base: All respondents: 1003 GB rep, 1024 DM/MoS AA/QO, 757 MOL Monthly users (unweighted)

Mail brands deliver a significant market 32% of readers have a Smartphone spending an average of £52.13 (UK pop £51.33) 92% of readers have a mobile phone 7% of readers have two or more phones

On average a Mail reader has been with their current provider 4.14 years. The UK average is 4.02 years*

On average there are 2.23 mobile phones per household Tablet ownership is similar in Mail households as UK average households – 9% in both 38% are on a monthly contract 50% are on PAYG

On average they spend £16 a month on their phone (UK pop £18.47)

Overall monthly spend £12.2m…annual spend £145.8m Source: TGI GB 2012 Q4 (Jul11 – Jun12) Base: Mail Group = AIR DM+TMoS+Weekend+Live+You * - Source: TGI GB 2012 Q2 (Jan-Dec 2011) Base: All adults and Average Issue Readers of Mail print titles

Mail readers slightly more likely to spend on their smartphone Which online activities do you currently do when accessing the internet on smartphone? 79% 78%

Read or send emails 69% 66%

Browse sites for news / entertainment / interests

65% 66%

Download apps for free

62% 65%

Visit social networking sites 50% 53%

Research goods or services to buy in-store Purchase goods or services online

50% 46%

Watch video clips on sites such as YouTube

49% 50% 48% 48%

Upload photos / videos

46% 44%

Connect to WIFI hotspots

Mail Readers

GB rep

Manage finances

36% 37%

Source: IPSOS MORI Reader panel June 2012 Technology Q6b. And when you use your to access the internet, which, if any, of the following online activities do you currently use when accessing the internet? Base All who accessed internet through a Smartphone and answered question: 342 GB rep, 239 DM/MoS AA/QO, 186 MOL Monthly users (unweighted)

Mail brands deliver across the networks

19% (22%)

Orange

11%

T Mobile

(12%)

9% 20% (22%)

16% (17%)

O2

Virgin

(7%)

5% Vodafone

(6%)

3

Figure in brackets = GB Avg Source: TGI GB 2012 Q2 (Jan-Dec 2011) Base: All adults and Average Issue Readers of Mail print titles

Fairly even support for the ‘big three’ Orange and O2 popular with our readers – Orange best for ‘extras’ (Orange Wednesdays, Pizza Express etc) O2 ‘modern’ and ‘customer-oriented’ Still seen as the ‘business network’ but signs this is changing – reliable and professional

More limited experience of the other networks Felt to have lost its way – hard to differentiate from other networks Not considered a main network – though suitable for kids (and ‘Capped’ feature appealed)

Little direct experience – but stigma of old ‘issues’ and poor coverage still remain

A decent PAYG choice – particularly if existing Virgin Media customer Source: Voodoo Apr 2012 Qual Research

We looked deeper – delivering more Insight

We identified 3 distinct groupings among our readership

Technophiles

Regularly using advanced functionality on their phone Much more likely to regularly use VOIP (Skype)

Advocates

Big Efforts

More likely to keep up with technological developments Frequently talk to people about mobile technology

Interested in technology but lack confidence and can feel left out Feel happier being shown how to use new technology – guided

Source: Voodoo Apr 2012 Qual Research

Where were the groups when it came to adoption? Big Efforts Able to take/send photos – some regularly access the internet. Use functionality beyond texts/calls They often need a guiding hand with more advanced mobile usage.

Advocates & Technophiles Enthusiastic towards new mobile technology: synonymous with their day to day Make optimal use of most functionality Not ‘early adopters’ – but Technophiles tend to be at forefront of mainstream adoption with Advocates not far behind

Big Efforts Calls Texts

Photos

Late adopters

Advocates

Apps Surf web/ Social networking (E-mails) Mainstream

Source: Voodoo Apr 2012 Qual Research nb, Some of the above activities will be undertaken on an ipad/tablet rather than a mobile

Technophiles Watch video/ live TV Leading edge

What do you get and where do you get them… Technophiles

800,000 among Mail readership...1 in 10 readers Significant number compared to The Times Group – 564,000 Telegraph Group – 226,000 Advocates

1.1m among Mail readership. Delivers more than any press group The Times Group – 725,000 Mirror/People Group – 879,000 Big Efforts

1.6m (20%) among Mail readership. A big number, but higher proportion in other press groups Mirror/People Group – 1.4m (22%) Express Group – 519,000 (21%) Source: TGI GB 2012 Q4 (Jul11-Jun12) Base: All adults and Average Issue Readers of Mail print titles. Average Issue Reader of other Newspaper Groups

Engaging the reader

Worth getting message right: Our readers provide opportunity Those with kids still at home likely to pay for multiple contracts: significant examples where combined monthly household spend on contracts was £50+

Loyal: in most cases have been with existing network for many years

Not fundamentally price driven: unlikely to churn Potentially grateful – and evangelical – towards a brand or network that ‘shows them the way’ Source: Voodoo Apr 2012 Qual Research

The Big Efforts can be in a bubble though and aren’t engaged But they do experience occasional anxiety: ‘New technology is complicated’

‘Am I missing out on a good deal?’

‘I don’t want to be left behind’ Preconceptions shield them from the ‘attack’ of advertising. As a result, largely unaware of ‘pros’ of new technology. Source: Voodoo Apr 2012 Qual Research

‘New technology doesn’t have anything to offer someone like me’

‘I want to keep up for sake of my kids/family’ ‘What are they all doing on their smartphones? It looks fun!’

Current advertising doesn’t offer encouragement to engage • Big Efforts are looking for help: but mobile communications rarely signal that any is available • Often, it simply reinforces the perception that mobile operators are not interested in them “[I want] someone to answer my questions [about] the way I use my phone now, and how I could put that into practice on a smartphone.” “[I] would like to be shown how to use emails easily, [how to] shop online and browse [the internet].” “[I need help that’s] aimed at the correct level of ability. I would like to find out exactly what modern technology could offer me and at what cost.” • Big Efforts require special attention and a slightly different approach to the standard mobile ad Source: Voodoo Apr 2012 Qual Research

Purchase journey is shaped by engagement

Advocates

Technophiles

Advocates/ Technophiles progress through all three phases

1. Engagement with mobile category

2. Engagement with mobile advertising

3. Purchase journey

Source: Voodoo Apr 2012 Qual Research

Big Efforts

Big Efforts only process mobile ads at a low level

Extent to which Big Efforts go on a purchase journey varies

Not far from being engaged…they want to be engaged Difficult

Big Efforts assume – and fear – that as technology develops, it becomes ever more complicated

Their perception

They need to shown that in reality the opposite is true:

it’s easy The ‘ease’ gap

The reality Easy Older technology

Source: Voodoo Apr 2012 Qual Research

New technology

Not all on the advertising… Engagement with mobiles can come from within the family Kids play direct and indirect influencing roles

Direct

Indirect

Demonstrating functionality

Provide impetus to learn to monitor and stay in touch

Immediate family provide exposure to technology

Extended family offer reason to learn new skills

iPads are particularly good at demonstrating tech is easy

Cameraphone..email.. Skype all invaluable to stay in touch

Source: Voodoo Apr 2012 Qual Research

Wanting to be engaged ……Going into the unknown, is it ‘am I going to struggle with it and will I want to go back to my old version’ (F 50-55)

Skype…… I think it’s incredible, but I don’t know how to do it. I don’t know how to set it up, it’s something I’d love to do but it just seems complicated (F 45-50)

• Our readers will spend, but they often research more and longer to ensure the right deal and package • Once they see the benefit they engage to a significant level • Some of our readers need more encouragement than most. They feel excluded by some advertising as it doesn’t talk at a level they understand. • This group has money though and spend when they understand what is on offer • It is this group that will provide future expansion possibilities as they are not currently at a saturation point

The advertising

The simplest ads tend to work best for all groups across the whole purchase journey Simple image – of an iconic phone… Simultaneously reinforces brand associations and tempts “..stood out due to its simplicity.”

“..no hidden agendas, it’s clear and concise.” “Not overpowering…made me want to read it again.”

Source: Voodoo Apr 2012 Qual Research

Ad effectiveness

Strong recognition of mobile advert in the Daily Mail and Live Spontaneous recall

35%

Prompted recall

71%

that’s

6.8m

Source: Strategic Insight CRM Database Sept 2012 Base: AA/QO readers of DM or Live (732) Q1 Do you know which company this advert is for (asked of all) Q2 The advertisement is for Vodafone, do you remember seeing it in any of the following media? (results for Daily Mail or Live or Saw it, but not sure where). Readership from TGI 2012 Q3 (Apr11 – Mar12) – DM (AA/QO) or Live (AA/QO) 9,638,000

readers

Newspaper mobile ads help readers stay informed A third use mobile phone ads in the paper to stay up to date.

33 %

30 %

More people liked this advert as it was clear and uncluttered.

24 %

16 % 13 %

Mobile phone adverts in I liked this Vodafone press are useful to keep advert as it was quite me up to date on offers simple and not 'cluttered' like alot of mobile adverts

I find mobile adverts in press less annoying than those on TV

I don't think mobile phone adverts are aimed at me

Source: Strategic Insight CRM Database Sept 2012 Base: AA/QO readers of DM or Live who saw ad in DM or Live (139) Q8 Thinking about mobile phone advertising in general, which of the following statements do you agree with?

12 %

I like mobile adverts to Mobile phone adverts have alot of detail so it often confuse me helps me be informed

Mobile phone advertising in press is expected and useful Mobile phone ads in press help a significant number of our readers stay up to date and the advertising is trusted

45 % 42 %

42 %

34 % 31 %

29 % 22 %

I expect to see mobile phone advertising in the paper

Seeing mobile ads I trust the mobile Mobile advertising Seeing mobile ads Mobile ads in the I like to see mobile in the paper helps phone advertising I in the paper is in the paper paper prompt me to advertising in the me stay up to date see in the paper useful to me prompts me to do go online to find out paper more research more

Source: Strategic Insight CRM Database Sept 2012 Base: AA/QO readers of DM or Live who saw ad in DM or Live (139) Q9 Thinking specifically about the Daily Mail or Mail On Sunday how much do you agree with the following statements?

Thoughts Advertising – noticed, expected and responded to Looking for adverts that talk at their level and don’t leave them feeling inadequate and excluded

Adverts with a simple and clear message that are not too cluttered work best – raise fewer suspicions

Clear and multiple methods to follow up perform strongest •

Typically readers will not immediately react but research further and then return to the advert

Use the same creative as utilised in other media – message continuity