Mobile Youth - Consumers

Table of Contents

1. Market overview

• Figure 1.1.1 1.9 billion potential consumers with $1 trillion in disposable income
• Figure 1.1.2 538 million mobileYouth, fuelled by emerging markets
• Figure 1.1.3 India/China region accounts for nearly 2/3rds of remaining youth yet to own first phone
• Figure 1.1.4 $130 billion on mobile services
• Figure 1.1.5 North America, Western Europe & North East Asia account for less than 40% of revenue growth

2. 6reasons why industries need mobileYouth

• 2.1 The $20,000 consumer: mobileYouth have a significantly higher lifetime value than adult consumers
  • Figure 2.1.1 Lifetime value of UK customers
• 2.2 Eternal youth: Industries that fail to connect with young consumers inevitably grow old
  • Figure 2.2.1 DoCoMo i-mode: maintaining existing customer base while remaining fresh to mobileYouth
  • Figure 2.2.2 Keeping the product relevant to Youth
• 2.3 Making impressions last: Brand allegiance starts early
  • Figure 2.3.1 Brand allegiance begins at a young age
• 2.4 Consumer insight into product development: mobileYouth provide invaluable insight into how value added services can be best deployed
  • Figure 2.4.1 % of US mobile owners who have downloaded ringtones by age 2005
  • Figure 2.4.2 Youth ARPU comprises high levels of data spending
  • Figure 2.4.3 Youth ARPU shows decline in emerging markets due to increased competition and growth in mature markets due to data services
• 2.5 Consumer generated marketing: mobileYouth are keen brand advocates
• 2.6 mobileYouth spending patterns are both an opportunity and a threat to aligned sectors
  • Figure 2.6.1 Spending on mobile is part of the ' pie' of overall youth spending
  • Figure 2.6.2 Youth spending on mobile phones accounts for significant levels of their disposable income
  • Figure 2.6.3 Youth spending on mobile music
  • Figure 2.6.4 Benefits of positioning mobile music as a marketing tool

3. mobileYouth - 4 key attributes of the relationship between mobile and Youth

• 3.1 The mobileYouth relationship is functional - based on social needs
  • Figure 3.1.1 Sprint Game Lobby
  • Figure 3.1.2 Companies who have built community around brands
  • Figure 3.1.3 Youth mobile services that also leverage social needs of consumers
• 3.2 The relationship is strongest in youth - youth experience the greatest social pressures
• 3.3 mobileYouth social interaction occurs primarily in neutral settings
• 3.4 The mobile phone is flexible to youth need
• 4 The Asian experience - mobileYouth in Korea and Japan and what this means for the rest of the world
• 4.1 Korean and Japanese youth consume more mobile data than any other country
  • Figure 4.1.1 Japanese and Korean youth spend significantly more on mobile data than the rest of the world
• 4.2 North East Asian mobileYouth are more similar than often assumed
  • Figure 4.2.1 Youth share fundamental needs regardless of culture
• 4.3 The differences between North East Asian mobileYouth and the rest of the world help us understand "the next big thing"
  • Figure 4.3.1 Trends are transmitted faster in a dense urban environment

Recommendations

5. 5key growth strategies for mobileYouth

• 5.1 Target the long tail: Employ intelligent segmentation rather than focusing on the "youth market"
  • Figure 5.1.1 Intelligent segmentation of the mobileYouth market
  • Figure 5.1.2 MVNOs focus on tighter consumer niches
  • Figure 5.1.3 Youth MVNOs - potential subscribers

Demographic segmentation

• Figure 5.1.4 Global messaging revenues by age
• Figure 5.1.5 Do you sometimes feel pressure to buy products because your friends have them?

4 Demographic segments of mobileYouth

• Figure 5.1.6 Youth disposable income and spending on mobile - emerging markets
• Figure 5.1.7 Youth disposable income and spending on mobile - developed economies
• Figure 5.1.8 ARPU by age group
• Figure 5.1.9 Market value by age group

Primaries (5-9 years)

• Figure 5.1.10 Mobile metrics of Primaries (5-9 years)
• Figure 5.1.11 ARPU of Primaries
• Figure 5.1.12 Primaries market size
• Figure 5.1.13 Typical likes of Primaries

Early Teens (10-14 years)

• Figure 5.1.14 Mobile metrics of Early Teens (10-14 years)
• Figure 5.1.15 ARPU of Early Teens
• Figure 5.1.16 Early Teens market size
• Figure 5.1.17 Typical likes of Early Teens
• Figure 5.1.18 Appealing to Early Teens

Late Teens (15-19 years)

• Figure 5.1.19 Mobile metrics of Late Teens (15-19 years)
• Figure 5.1.20 ARPU of Late Teens
• Figure 5.1.21 Typical likes of Late Teens
• Figure 5.1.22 Percentage of disposable income spent on mobile by age group

Young Adults (20-24 years)

• Figure 5.1.23 Mobile metrics of Young Adults (20-24 years)
• Figure 5.1.24 ARPU of Young Adults
• Figure 5.1.25 Young Adults market size
• Figure 5.1.26 Typical likes of Young Adults

Behavioral targeting

3 Behavioral Segments of mobileYouth

Feature Foragers

• Figure 5.1.27 Feature Forager handsets

Leaders

• Figure 5.1.28 Leader handsets

Groupies

• Figure 5.1.29 Groupie handsets

• 5.2 The mobile phone is a social tool: Build product development and marketing on the 5 Social Classes of Mobile rather than the quest to develop "killer applications"
  • Figure 5.2.1 The 5 mobileYouth product classes
  • Figure 5.2.2 Product strategy A - product known, market unknown
  • Figure 5.2.3 Product strategy B - product unknown, market known
• 5.3 How you view the problem is the problem: You cannot build a better understanding of mobileYouth by referring to them as "end users"
  • Figure 5.3.1 The traditional "Value Chain" model
  • Figure 5.3.2 Redefined Value Network model
• 5.4 Assimilate rather than supplant: Rather than seeking to create new behavioral patterns around existing technologies, seek new technologies that can enhance existing behaviors
• 5.5 Leverage growth in the frontier markets
  • Figure 5.5.1 Youth subscriber growth is being driven by increasing penetration in emerging markets
  • Figure 5.5.2 Youth in emerging markets comprise a significant majority of first time buyers
  • Figure 5.5.3 Safety concerns and mobile ownership for youth

References