Mobile usage gap is closing: Experian

By Mickey Alam Khan

July 18, 2008

Eye phone

The mobile usage gap is closing nationwide, according to a study by Experian Consumer Research.

Consumers of differing ages are turning to mobile for activities such as text messaging, ring tones, photos, videos, games, music, online access, location awareness, streaming video, email, shopping and banking.

“While younger mobile users represent the most attractive target for mobile marketers, it seems that adults 25-54 will offer an excellent market for things like mobile shopping, banking and additional mobile features like GPS,” said Eileen Merken, director of analytics at Experian Consumer Research, Deerfield Beach, FL.

As more adults stay active even as they age, mobile phone GPS can play an important role in their lives, the research indicated. Even though usage of GPS through mobile phone is low, it can be promoted for use in sports, outdoor activities and going to restaurants.

GPS can also help to consolidate individual and separate devices into one unit – a phone, business applications instrument, computer, camera and MP3 player.

Teen preen

Experian research shows such consolidation will increase the usage and appeal from primarily younger users to older, upscale adults who are likelier to own personal electronic devices.

Another study finding confirmed that while younger mobile consumers ages 18-24 are more comfortable and likely to engage in text messaging and mobile shopping, those ages 25-34 are the group most likely to conduct mobile banking.

Banking and paying bills through mobile is a growing market. But it is key to understand the different needs of distinct segments of mobile consumers – low-income consumers, seniors or people with access to computers.

QWERTY under 30

Similarly, mobile shopping will take off as more adults become comfortable with, or accepting of, buying products online. While only 2 percent of consumers shop by mobile phone, the channel offers greater ease and access.

“We believe that GPS and mobile shopping are currently emerging uses of the mobile phone that stand to increase as the technology becomes more prevalent,” Ms. Merken said.

“Mobile shopping, in particular, may be low because similar to online use with the PC, it may be a while before people are comfortable making transactions on their phone due to security reasons,” Ms. Merken said. “These are areas we plan to keep an eye on to see how the rates of adoption trend.”

While mobile social networks continue to develop nationwide and are expected to do well with Facebook and MySpace going mobile, professional networking is a viable extension of this trend, Ms. Merken said. It makes sense for older adults, especially as their use of text messaging increases.

Indeed, 28 percent of mobile phone users responding to Experian’s survey view text messaging as a very important source of information.

Though 37 percent cited communication as the most important source for texting, 21 percent felt it was an important source of information versus entertainment.

Research also showed that more than one-third of online users are open to receiving ads on their mobile phone of there is a tangible incentive.

“It is encouraging that one-third of mobile online consumers are open to receiving ads on their mobile phone, but marketers need to target effectively and make the right offer,” Ms. Merken said. “In addition to cash, free offers and discounts off one’s mobile bill are high on the list.”

Ms. Merken’s advice to marketers is standard practice for those companies using the direct and interactive channels for customer acquisition and retention.

“Further analysis should be done to understand differences among key consumer segments – adopters of new technology – not just demographics, to help develop targeted messaging and product offerings to increase usage of mobile banking, text messaging, mobile shopping and other new technologies and features,” she said.