Among the overall findings:

• Devices don’t’ matter (much): Users with standard feature phones will use the Web as much or even more than a smartphone user if the mobile Internet experience is good
• There is a ‘long tail’ in the mobile Internet: The top website typically accounts for 5 percent of total mobile page views. The number two site accounts for less than 1 percent of traffic. And the top 500 sites account for only 25-30 percent of all page views
• Sessions vary: 40 percent of mobile internet sessions are under five minutes and 40 percent are over 15 minutes

The report further groups mobile users into ‘tribes’ based on their distinctive user profiles. These are:

• The Business Pro – Dependent on their mobile to be more productive and to handle all their communications
• The Mobile Millennial – Early adopters and young adults with disposable income
• The Connected Kid – Children and teenagers who have grown up with technology from a young age
• The Multitasking Parent – Use their mobile phone to stay in touch and manage family schedules
• The Frugal Fanatic – Cost conscious of spending, usually opting for a free handset

Based on these observations and segmentation the report concludes:

• Multitasking Parents and Mobile Millennials are the most active user populations, generating nearly 2/3 of mobile browsing sessions between them
• Business Pros even with their highly capable devices, generate less mobile browsing sessions than expected. They also use news, sports and information sites twice as much as nearly all other groups and are lowest for social networks
• Mobile Millennial and Connected Kids are by far the heaviest users of social networks
• Frugal Fanatics utilise handset customisation services more than twice as much as any other group
• Connected Kids have far more page views relative to sessions than any other group, indicating they tend to surf more for entertainment purposes
• Source

The bottom line: The Mobile Internet, and indeed many mobile services, would fail to survive and thrive without technical companies such as Novarra, largely unknown to the masses, but which provide critical back-end solutions. Peggy adds: Kudos to Novarra for an excellent report! Not a lot of rocket science here, but an important confirmation of the groups of people on the mobile Web and an overview of what they do. Read between the lines, and you’ll see there is a great deal of untapped value in developing (and branding) life-enabling/life-simplifying services for the Multitasking Parents and Mobile Millennials, who are the most active user populations and – potentially – most responsive to companies that make their lives easier. (I highly recommend you check out my fireside chat with Ogilvy’s Rory Sutherland, packed with some surprising business model suggestions, supported by the findings above.)

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LOCAL MOBILE CONTENT ATTRACTS SIGNIFICANT AUDIENCE. Local content views are up 51 percent over the past year, according to comScore figures. Research also reveals that application downloads are leading the growth.  It observes an 83 percent increase in the number of subscribers to local content via applications since March 2008, with text messaging services also outpacing average growth.  The study shows a 72 per cent increase in SMS subscriptions in the 12 months to March 2009.

Meanwhile, browser based access continues to grow at a rate of 34 percent year on year over the same period and, despite the slower growth rate, remains the dominant method for retrieving local content.  It accounted for 63.7 percent of all downloads in March 2009. Earlier research by comScore found younger mobile users tend to retrieve more entertainment content, while older users across Europe usually prefer financial information. Source

The bottom line: These generally encouraging comScore statistics confirm our hunch that applications downloads and mobile Internet usage are on the rise. However, the surge in local mobile content may not reflect a universal trend. It’s likely that the popularity of local content is a product of context. In other words, local content thrives in a handful of large, dense, urban regions where high-speed network coverage and captive audiences are the norm. Peggy adds: These stats also question our assumption that the global giants we know rule the roost. Take Skyrock in France, which is bigger that Facebook can ever hope to be. The popularity and reach of local content – particularly on personal devices such as our mobile phones – is sure to climb.

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MOBILE ADVERTISING FOR MOVIES AND ALCOHOL SET BENCHMARK for industry, according to a study by Amethon Mobile Internet Insight.  The study also states that despite high CTRs, brands should focus on the quality of engagement.

Analysis of traffic to more than 100 mobile advertising sites found that consumers view just over 3 pages per visit for best-in-class campaigns, while the average across all campaigns analyzed was only 1.53 pages. Only 33 percent of consumers venture beyond the first page of mobile campaign sites, which the research says suggests mobile advertising campaigns need more compelling content within the microsite to engage consumers more effectively.

The report found that movie related campaign sites achieve the highest engagement levels, visitors viewing an average of 1.65 pages per visit, a figure that also accounted for a 21 percent share of overall audience. Alcohol campaigns achieved a similar share of audience but suffered from poor engagement, with users often not navigating beyond the age verification page.

Portal and directory service campaigns were the most common (22 percent of all campaigns), but had a relatively low audience share and below-average engagement.  Meanwhile, content downloads such as branded wallpapers or videos in the microsite did not significantly improve engagement. Source

The bottom line: This detailed study of mobile advertising offers insightful statistics to support what many have been saying all along: Advertising must be relevant and engaging.  While it probably comes as no surprise that interest in advertising around films takes the top shot, a lot of work has to be done in the way of creative thought to the landing page and what people do after they click through. This is particularly pertinent in view of the drop off in popularity of wallpapers and video.  The other issue of poor engagement in popular alcohol campaigns, possibly due to age verification process is disappointing but not surprising or uncommon.  I explore age verification issues in more detail in a recent post here.

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40 PERCENT OF USERS ACCESS INTERNET MORE OFTEN ON iPHONE / iPOD TOUCH THAN ON PC, according to a new demographic study from comScore and Admob.  The research also reveals that 69 percent of iPod Touch users are between 13-24 years of age, while the same age segment represents just 26 percent of iPhone users. In total, 74 percent of iPhone users are over the age of 25, compared to 31 percent of iPod touch users. Over 70 percent of users on both the iPhone and iPod touch are male.

Over the next six months, iPhone users are said to be planning to buy clothing (57 percent), entertainment (47 percent), and travel (45 percent), while iPod touch users plan to purchase clothing (61 percent), entertainment (53 percent), and mobile devices (36 percent).

By way of background, the methodology used in this primary research into the demographics and behavioral characteristics of iPhone and iPod touch users in the first half of 2009 is as follows: Participants were visitors to domains within the AdMob iPhone network who were shown survey invitation banners rather than banner ads. Those who clicked through the survey banner were presented with the mobile survey. The total sample size of iPod touch participants is 3,848, while the total number of

participants in the iPhone sample is 3,454. All results were tested for statistically significant differences at the 95 percent confidence level.  Source

The bottom line: As well as the headline that 40 percent of users access the Internet via their mobile device more often than their computer, the other key finding is the age differentiation.  You could surmise from this that teenagers can convince their parents to buy them an iPod touch, but not an iPhone and all its recurring bills. Other findings such as average salary were largely in-line with the age difference.  The ongoing generation of such data is key in the production of applications and the execution of mobile advertising strategies.

***

LG EXPECTS NINE PERCENT RISE in mobile sales.  The Korean handset manufacturer has said it will sell 110 million devices this year, despite a flat global market. The company has also said this figure will rise to more than 200 million by 2012. Source

The bottom line: Handset manufacturers marginalized, at least in publicity terms, by the “bigger” names now have an uphill task to continue producing new quality devices which will gain mass market penetration and to effectively promote their core differentiators.  These bullish projections are encouraging signs of a still highly competitive marketplace.

I caught up with Steve Ives, Taptu CEO, in an exclusive interview where he revealed the recent deal with itsmy.com is just the start. Look for three more deals with mobile social networks before February. Also expect Taptu to sharpen its focus on mobile search monetization, particularly in the U.S. where Steve tells me most of his traffic is. (And there’s an even better reason to concentrate on mobile search sponsored links; sources tell me CPMs around key word search terms are in the $3-$10 range.)

Listen to the podcast here. [20:22]

I should add it’s longer than others in the series, but that is because we deep-dive into a variety of key topics, including mobile search trends, Taptu’s ambitions to deliver mobile search verticals (and allow users to personalize them), the impact of the iPhone, the emergence (and pivotal importance) of a new segment Steve calls “unwired socials” (accounting for over half of Taptu’s users today), and a few details of a strategy Steve would rather keep under wraps to develop a “user interface for discovery” inspired by touch devices.

But for me, the real news is the keen focus on mobile social networks. In November Taptu quietly and cleverly sealed a deal with itsmy.com, an ad-funded mobile-only social network with two million users, to provide core search functionality (allowing them to search for mobile content such as videos, entertainment, music, and images from within the community as well as directly from their personal homepage). The deal also lets itsmy.com monetize those searches through mobile search sponsored links. (By way of background, Taptu replaces Google, and I’ll go into the reasons in my podcast with Vince Staybl, Gofresh CEO, which is coming up in this series. As Vince put it: Google failed to “get” mobile – a serious shortcoming that convinced him to switch to Taptu.) Gofresh isn’t the first mobile social network to ally with Taptu for search and advertising. Moblr quietly replaced Yahoo with Taptu in February 2008 to do much the same thing. (More evidence of a trend: The decision by BuzzCity to partner with MCN for mobile search for its mobile-only social network myGamma in Thailand.)

Another deal from Taptu you may have missed in the holiday hectic: A partnership with ZooVision, a U.S.-based free streaming mobile video portal, to provide mobile search and no doubt increase its entertainment-related inventory. (By way of background, Taptu replaced Google – yet again.)

Other highlights from the podcast:

FUNDING: In December, Taptu secured GBP6.45m in series B funding from its existing investors (3i and Sofinnova) and appointed Andreas Bernstrom to the position of Chief Operating Officer (COO). The money will allow Taptu to focus on monetization. As Steve put it: “We’ve only just started putting ads on our site. So, for 09, the big focus is optimizing the monetization, so for every thousand searches that get made on our site, we optimize the revenue.” (The business model is a rev share.)

AD NETWORKS: Taptu works with Yahoo, Google and AdMob. “We’re focusing on search ads and search ad platforms, so we’ve been working with Yahoo in the U.K. for a couple of months now just to explore what happens when we put those search ads up on our site….For us, a big priority next year is the U.S., because actually the majority of our audience is in the U.S., and looking at how we best monetize that. But it is going to be search ads, in other words ads that are tied into search keywords, because we found from our ad experiments that they have the best revenue per thousand.” (I asked around in the industry and the word is keywords can fetch $3-$10 CPMs.)

RELEVANCY & ENAGEMENT: The industry needs to work on both. Online we have annoying display ads, and users are anything but engaged. Mobile could go the same way – so wake up! “In the mobile world, users can develop banner blindness very quickly. They’re not terribly engaging, and we’re training users to ignore them because most ads are not very relevant to the needs of the user. So we’ve got to increase relevancy on the one hand, and we’ve got to make them more engaging and kind of entertaining on the other hand.”

SEGMENTATION: Most of the audience is Unwired Socials whose first screen in is the PC, but this is changing. Make way for the Pioneer Youth, propelled into a strong second position by the iPhone and other touch screen devices delivering a rich mobile Web experience. (Keeping in mind they still don’t do a great job transcoding sites with flash, for example.)

SEARCH BEHAVIOR: Unwired Socials search for entertainment and some adult; Pioneer Youth gravitates to career and lifestyle. Sensing an opportunity in other verticals such as mobile job search in emerging markets, Taptu is determined to evolve “from a sort of beachhead in entertainment search, which is where we started, to add more and more sources to become a universal search engine.”

FEDERATED SEARCH: Figures prominently in Taptu’s roadmap. “Our strategy is to extend that to allow for hundreds or even thousands of sources and to allow users to create their own vertical channels with Taptu. It’s going to take a while to translate that vision into reality, but it’s the way forward which offers the best scope for improving the relevancy of results because you can have custom scoring systems for each channel which are optimized to that channel.” As Steve sees it, it’s all about “allowing the user and having a discovery into user interface which allows the user to explore these different channels easily and look for related results.”

UI IMPROVEMENTS: Look for them! Steve preferred not to disclose details, but he’s bullish on touch screen devices. As he puts it: “Touch devices give you the opportunity for a much more interesting user interface for discovery than normal phones, so you’ll see some innovation from us in that area.”

2009 TRENDS: A slowdown in the market and fewer people replacing their handsets. The bright spot: The continued enthusiasm for the iPhone and the N97. Another interesting development to watch for: Local search on mobile will develop into a different market – with different dynamics. “The user interface for local search is going to be in a mapping application; it’s not going to be the search engine search box. So, local search will gravitate – it will almost fork into being somewhat of a different market, accessed from a different point on the handset user interface.”

On a personal note, I’m pleased to report Charles Knight, at MSG partner site AltSearchEngines, is back in full-force and looking forward to a fantastic 2009 with more staff, more content and more traffic. And it’s a similar success story at MSG. He is cross-posting this podcast and all MSG mobile search coverage. I’m excited about the cross-pollination because many super-cool online search engines are gearing up to go mobile – giving both our sites loads to track and analyze. Another trait that brings us closer together: Our determination to offer Alts (alternative search engines) a platform. To this end, we are planning yet another event, much like our search engine dinner in Berlin last fall. This time it’s MARCH 30 in San Francisco (timed to the SF Expo) – so please mark that date.

Disclaimer: MSG collaborated with Taptu on a white paper in 2008; MCN has been an MSG supporter.