Mobile and Money: - IAB

IAB, InMobi, and Viggle

Mobile and Money: Consumer Awareness and Adoption of Smartphone-Based Financial Applications

Released April 11, 2013

Introduction It’s tax season, and money matters are very much on the minds of American consumers. Increasingly, Americans are embracing mobile services to help them manage their financial lives. For example, Starbucks says that their Android and iOS mobile apps have 10 million active users, generating about 3 million transactions weekly. Starbucks expects 10% of its store transactions will use mobile payments by the end of 2013.* To investigate how media-savvy consumers are adopting mobile internet tools to help the manage their financial lives, the IAB, InMobi, and Viggle teamed up to field a survey to Viggle’s user base. We asked questions related to mobile banking, payments, and other financial applications and activities. 1

*“Starbucks stirs up mobile purchases with its apps,” The Internet Retailer, Mar 28, 2013, http://www.internetretailer.com/2013/03/28/starbucks-stirs-mobile-purchases-its-apps

Key Findings •

US banks are doing a great job promoting their mobile features. 83% of respondents are aware their bank has a mobile app, and three out of four respondents are aware their bank has a mobile-optimized website. 58% of respondents say they have used their bank’s mobile app.

•

Awareness of tax-filing mobile apps is very high given they are a recent innovation from firms like H&R Block and Intuit. 57% of respondents said they were aware of such apps this year, though only a small number had actually used one.

•

Almost 40% of respondents who use mobile financial apps have downloaded Paypal’s mobile app, making it the most popular non-banking financial application.

•

Mobile couponing is taking off among respondents: 57% have redeemed a digital coupon, code, or voucher via mobile phone.

•

Outside of banking and some payments, financial app adoption is fairly low: fewer than 20% of respondents reported having each of a variety of apps including expense tracking, investment management, budget planners, and financial news apps.

•

Perceived security—both of data on the mobile network and on the device—were singled out as the most important factors that might inspire greater mobile financial usage. Ease of use and faster network connectivity would help too, but are relatively less important.

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Banks Doing Well Marketing Their Mobile Features Mobile app for smartphones or tablets

58%

Mobile-optimized website

50%

25% 26%

Text message alerts

38%

36%

Other mobile banking features

40%

31%

0%

17% 25% 25% 29%

20% 40% 60% 80% 100% Percentage of Respondents Use this feature Aware of but do not use this feature Not aware of this feature

Q: Are you aware of any mobile financial services features from your bank? 3

Source: InMobi-Viggle-IAB Mobile and Money Survey, n=1,242, released April 11, 2013

Over Half of Respondents Aware of Tax-Filing Mobile Apps Used a mobile app to file my taxes, 6% Did not know about these apps, 43%

Know about these apps but have not used them, 51%

Q: Did you know that you can file your taxes using a smartphone or tablet app? 4


Coupon Redemptions Lead Mobile Payment Activities; P2P Limited To Date Redeemed coupon, code or voucher by mobile

57%

Paid other bill by mobile

46%

Paid for digital products (apps, ringtones) by mobile

45%

Paid mobile phone bill by mobile

42%

Bought tickets by mobile

37%

Paid a business for real-world goods/services by mobile Paid friends/family by mobile Have never made a payment by mobile

34% 19% 26%

0% 50% Percentage of Respondents Q: Have you ever used your mobile phone to make a payment? 5


Percentage of Respondents who Use Mobile Financial Apps

Only Paypal’s App Garners Significant Adoption by Respondents 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

37%

11%

9%

8%

7% 2%

Paypal

Mint

Turbotax Square

Google Wallet

Etrade

Q: Have you downloaded any of the following apps to help you make payments or keep track of your finances? 6


Outside Calculators and Banking, Financial Apps Show Limited Adoption Spending/expense tracking

17%

Scan receipts by camera

16%

Personal/family budget

15%

Financial news app

14%

Check stocks, 401K, other investments

14%

Currency converter

12%

Tax software

5%

0%

5%

10% 15% 20% Percentage of Respondents

Q: Which of the following types of apps do you currently use on your mobile to help you manage your money? 7

Source: InMobi-Viggle-IAB Mobile and Money Survey, n=1,242, released April 11, 2013. Excludes “regular calculator,” 72%, “tip calculator,” 35%

Addressing Perceived Security Issues Would Help Spur Mobile Financial Use Gurantee transactions are safe even if I lose my phone

52%

Better security on mobile network

46%

Faster/more reliable mobile data network

24%

Easier/more user-friendly banking app or website

24%

If my bank offered these services If I owned a better mobile device None of these

14% 7% 24%

0% 50% Percentage of Respondents Q: What would make you more interested in using your mobile phone for financial services activities? 8


Mobile Financial Security: Perception and Reality •

Mobile security stood out in our survey as something that needs to be addressed to spur greater adoption of mobile financial services. This issue breaks down into two components: •

Actually securing the device and the network

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Educating consumers about the security of mobile banking and financial services

•

On the education front, financial app providers should weave the safety and security message into all their marketing, to inform potential users about safeguards on both the device and the network.

•

For additional information on mobile financial security:

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•

Recent Federal Reserve report on mobile financial services: http://www.federalreserve.gov/newsevents/press/other/20130327b.htm

•

A related discussion from New America Foundation: http://assets.newamerica.net/blogposts/2013/mobile_financial_services_implications_f or_privacy_and_financial_inclusion-81756

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Mobile Commerce Daily article: http://www.mobilecommercedaily.com/financialinstitutions-must-address-security-concerns-in-mobile-banking-and-payments

Survey Methodology This survey was fielded from March 29 to April 1, 2013. To get the sample, Viggle emailed invites to a random sample of Viggle’s nearly two million registered users. These users completed the survey online (on either desktop, smartphone, or tablet). 1,242 respondents completed the questionnaire. Note that only Viggle users 18 years old or older participated in this survey. The Viggle audience is both technology- and media- savvy. Viggle currently attracts a user base that is fairly evenly split by gender, and centered around the 25 – 34 demographic. They’re more coastal, more urban and tech savvy than the average consumer.

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About the IAB The Interactive Advertising Bureau (IAB) is comprised of more than 500 leading media and technology companies that are responsible for selling 86% of online advertising in the United States. On behalf of its members, the IAB is dedicated to the growth of the interactive advertising marketplace, of interactive’s share of total marketing spend, and of its members’ share of total marketing spend. The IAB educates marketers, agencies, media companies and the wider business community about the value of interactive advertising. Working with its member companies, the IAB evaluates and recommends standards and practices and fields critical research on interactive advertising. Founded in 1996, the IAB is headquartered in New York City with a Public Policy office in Washington, D.C. For more information, please visit www.iab.net.

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About InMobi InMobi has been recognized by MIT Technology Review as one of 50 Disruptive Companies of 2013. InMobi platforms enable the world’s leading brands, developers, and publishers to engage global consumers. InMobi builds mobile-first technology platforms that leverage advances in bigdata, user behavior, and cloud-based architectures to simplify advertising. Agencies and advertisers leverage InMobi platforms to create HTML5 rich media ads and engage 578M consumers across 165 countries. Developers and premium publishers use InMobi platforms to acquire and monetize their mobile apps and their mobile websites across the globe. With offices in multiple continents, InMobi provides global reach with local service and support across the globe. InMobi is venture-backed by investors including: SoftBank, Kleiner Perkins Caufield & Byers and Sherpalo Ventures. Developers can start monetizing instantaneously by downloading our SDK www.inmobi.com/SDK To learn more, please visit www.inmobi.com, follow us on Twitter @InMobi, or discover the latest mobile insights at www.inmobi.com/insights/.

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About Viggle Launched in January 2012, Viggle is a free second-screen media platform that rewards its members for watching their favorite TV shows. Viggle enhances TV with interactive games like Viggle LIVE and the first ever real-time fantasy sports game, MyGuy. Viggle members get rewarded for their TV time from places like Best Buy, Papa John’s, Fandango, Hulu Plus and Groupon, among others. Viggle also allows like-minded fans of their favorite shows to connect through Viggle Chatter features. Viggle’s audio verification technology recognizes shows on TV and allows members to check into live and DVR’d TV content from more than 170 of the most popular broadcast and cable channels. For more information, visit www.viggle.com or follow us on Twitter @ViggleTV.

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