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Apple iPhone users more open to mobile ads than other smartphone users: Study

TNS Compete has unveiled Smartphone Intelligence, highlighting findings from the service's inaugural survey analyzing the secrets of the iPhone's success.

Smartphone Intelligence delivers behavioral and survey-based insights on Apple iPhone and other smartphone users. This provides carriers, handset manufacturers and marketers with quarterly data and recommendations of how to reach mobile consumers effectively.

"We found that iPhone users are more comfortable with mobile advertising than other smartphone users due to fact that the experience on the iPhone is more similar to that of the fixed Internet, where people are used to getting free content in return for viewing ads," said Ryan Burke, managing director of telecommunications and media for TNS Compete, Boston.

"IPhone users are also more comfortable with ads based on location," he said.

Forty percent of iPhone users recall seeing advertising within an application, which is an encouraging number for the industry at large, Mr. Burke said.

"IPhone users, when given the option, are more likely to download a free, ad-supported app, rather than pay $10 for one, so there's an opportunity to offer it for free to drive up usage and get ad revenue," he said.

TNS Compete, which is part of agency conglomerate WPP Group PLC's Kantar Group, isolated smartphone users in general and iPhone users specifically for the study.

The researcher tracked mobile Internet browsing behavior of a couple of million people and consulted mobile consumers through surveys.

"We want to help marketers reach hard-to-reach segments of consumers and understand their behavior and their attitudes over various channels, including mobile," Mr. Burke said. "What are their purchase motivators, satisfaction level, preferences as far as mobile advertising, applications preferences?

"From carriers to marketers in other industries, how do I reach these mobile users on smartphones, what's the most effective way to market to them, what's their receptivity?" he said.

The report discussed several key findings.

Owners of iPhone are twice as likely as other smartphone owners to be comfortable with advertising within the applications on their device.

Thirty-three percent of iPhone owners use maps and GPS more than 10 times a month, compared to 13 percent of other smartphone owners.

Almost twice as many iPhone owners than smartphone users complete at least one financial transaction on their mobile device each month.

Ninety-three percent of iPhone owners have added an application, versus 66 percent of other smartphone owners.

TNS Compete's Smartphone Intelligence combines consumer insights collected through surveys with behavioral data gathered through online click-stream data.

The report reveals how smartphone owners are using their phones, the sites they visit on the Web and what they like and dislike about their mobile Internet experience.

Smartphone Intelligence subscribers will receive quarterly reports with data about smartphone use and behavior, as well actionable recommendations tailored to their business.

Smartphone Intelligence also provides clients with custom research addressing specific business questions relevant to unique segments of smartphone owners.

For example, this report's findings reveal that iPhone users are more receptive to ads than users with other smartphones.

TNS Compete is hosting a Webcast today at 2:00 pm EST to present the inaugural findings from Smartphone Intelligence.

That Webcast will also highlight the fact that not only are iPhone users downloading more applications and doing more on their phones, but owners of these devices are also more receptive to advertisements.

That is something that marketers, carriers and OEMs should consider when devising their strategies, Mr. Burke said.

"The biggest thing that jumped out from the study was probably usage -- 33 percent of these iPhone consumers are using maps more than 10 times a month and 20 percent are using their iPhone for social networking more than 10 times a month," Mr. Burke said. "Also, the smartphone segment overall is growing -- smartphones are it right now.

"That opens up opportunities for carriers, content providers, aggregators, marketers, everyone across the mobile value chain," he said. "Let's see what happens when the Coxes and the Comcasts get into the game.

"People are willing to pay to switch to the iPhone, and right now most of the people switching to AT&T for the iPhone are coming from T-Mobile and Sprint. Verizon is not as affected."