The Mobility 2014 research study, conducted by World Wide Worx with the backing of First National Bank, reveals that the 19-24 age group – representing students and entrants into the workforce – is abandoning voice faster than any other segment. Only 56% of this group’s mobile budget is now spent on voice, down from 66% in mid-2012. Data spend, on the other hand, has increased from 17% to 24%.
The trend for the overall market also shows a dramatic shift: voice spend has dropped from 73% of mobile budget to 65%, while data has increased from 12% to 16%. At the beginning of 2010, voice stood at 77% and data at 8%.
SMS spend remains steady at 13%, while full music tracks, which featured for the first time in 2012, have doubled from 1% to 2% of the average mobile budget.
“Older users continue to spend far more overall, but the powerful shift in spend from voice to data will work its way up the age segments in the coming years,” says Arthur Goldstuck, managing director of World Wide Worx. “Already, we are seeing a flattening out of the curve of data use from the 25-34 through to the 46-55 age groups. Only above that age does data spend drop off – but not very significantly.”
The survey, conducted among adult cellphone users living in cities and towns in South Africa, reveals that Nokia remains the most popular phone brand in the country, but its market share has dropped significantly, from 50% to 44%. Blackberry has increased its market share locally, despite almost vanishing as a force in Western markets, from 18% to 23%, thanks to its continued aspirational appeal in younger markets.
Samsung has increased share marginally, from 18% to 19%. In mid-2012, consumers had indicated they would move away from the brand, with a third of its users saying they would opt for other phones. However, the appeal of its Galaxy range of Android devices across all smartphone price segments has resulted in a resurgence for Samsung.
The survey reveals substantial shifts in the mobile banking environment, with the biggest proportional shift coming in the use of banking apps. From only 1% of all banking customers using banking apps in mid-2012, the figure has shot up to 9% in late 2013. Cellphone banking has also surged, from 28% in mid-2012 to 37% in late 2013.
“One in ten banking customers are now using apps, and that number is still rising fast, which vindicates our strategy of expanding our offerings as the market’s use of these tools evolves,” says Dione Sankar, Head of Cellphone Banking and Messaging at FNB. “At the same time, looking after the non-smartphone customer through basic cellphone banking has also paid off. We have never experienced such dramatic growth across all mobile channels.”
The most popular feature used on phones remains the camera, at 73% of cellphone users, with FM Radio far behind at 51%, and the music player on the phone catching up to FM, at 49%.
Tablet usage was measured for the first time in the Mobility project, revealing that approximately 5% of adult cellphone users also have a tablet. The vast majority use it for Internet access (77%) and e-mail (57%), with social media and downloading apps in joint third place (43%). Samsung dominates tablet usage by adults, with 52% market share, while Apple iPads hold 23% of the adult market. Both tablet penetration and market share is set to shift in the coming year: a quarter of respondents said they expected to buy a tablet, with 44% of these saying they will buy a Samsung device, and 32% opting for Apple.
The Mobility 2014 project comprises two reports, namely The Mobile Consumer in SA 2014, comprising cellphone usage and mobile banking trends, and The Mobile Internet in SA 2014, exploring online trends. It is based on face-to-face interviews with a nationally representative sample of South African adult cellphone users living in cities and towns. Fieldwork was conducted by Dashboard Marketing Intelligence in late 2013.
For more information contact:
First National Bank:
Christine Burrows, Corporate Communications Manager
Mobile: 078 355 9390
Telephone: 087 312 8632
World Wide Worx:
Arthur Goldstuck, MD
Mobile: 083 326 4345
Telephone: 011 782 7003
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Johannesburg:- Facebook has become the biggest social network in South Africa, seeing its strongest growth yet in the past year – and overtaking Mxit for the first time.
This was one of the key findings of the SA Social Media Landscape 2014 research study, released today by World Wide Worx and Fuseware. The study showed that Facebook has 9,4-million active users in South Africa, up from 6,8-million users a year ago.
Mxit, the previous market leader, fell back to 7,4-million users from 9,5-million, as it began to feel the effects of competing instant messaging services like WhatsApp and 2Go, as well as from the growth of social networking on phones.
Twitter saw the highest percentage growth among the major social networks, from 2,4-million to 5,5-million – showing 129% growth in 12 months.
“The most significant finding, aside from the growth itself, was the extent to which social networks are being used on phones in South Africa,” says Arthur Goldstuck, MD of technology market researchers World Wide Worx. “No less than 87% of Facebook users and 85% of Twitter users are accessing these tools on their phones.”
Google+ has remained the laggard among social networks, with only 466 000 active users, only marginally higher than a year ago. However, the photo sharing and special effects app Instagram has exploded in use in South Africa, from below 100 000 a year ago to 680 000 in August 2013.
“We can expect this number to grow even more dramatically in the coming year as Instagram becomes a popular app on Android phones, while Android itself is expected to grow significantly in South Africa in the coming year,” says Mike Wronski, MD of social network analytics company Fuseware.
Both social networking and instant messaging apps are dominant in downloads for smartphones and tablets.
WhatsApp is presently the most popular app in the Android, Apple and Windows app stores, with Facebook in second place in the Android and Windows stores, while Instagram takes the Apple store runner-up slot. The impact of BlackBerry extending BBM availability to Samsung devices is reflected in the BBM Android app taking third place in the Google Play Store.
The report highlights the intensified use of social media by South African corporations, revealing that 93% of major brands use Facebook, 79% use Twitter, 58% YouTube, 46% LinkedIn and 28% Pinterest. Fewer than 1 in 10 use Mxit, Foursquare or Instagram.
“The big trend in corporate use of social media is that internal marketing teams are taking charge, rather than outsourced agencies,” says Wronski. “Just over half of major brands (54%) rely on their own marketing team, a further 9% on public relations teams, and only 16% on third parties.”
That’s not all bad news for agencies, however: while 53% of respondents say they will build up their social media skills by investing in training existing teams, 27% will rely on specialist social media agencies.
“Such investment is critical,” says Goldstuck. “The survey shows that the measurement of social media effectiveness remains relatively unsophisticated. On Twitter, 83% of companies measure effectiveness by number of followers, while only 48% conduct sentiment analysis. On Facebook, 87% measure number of fans and 79% number of posts and comments, while only 54% are assessing the tone of those posts through sentiment analysis.”
The importance of social media as a business tool was acknowledged by almost all respondents: 91% agreed that it had the potential for building a business. However, only 19% said they were getting as much value from social media as they could – indicating that most were still learning how to embrace the tool.
Nevertheless, analysis of South Africa’s top 50 brands by value reveals a strong showing: they have an average of 58 000 Facebook fans each, growing at 4,8% a month. The average number of YouTube account views is 259 000 per brand, but with an average subscriber base for their YouTube channels of only 366. On Twitter, they have an average of 12 785 followers each, with an average of 1856 mentions a month.
The downside is that the average response time for these brands addressing customer issues on Twitter is 271 minutes.
“Taking more than four hours to respond to a customer in such an immediate environment shows a gap in social media that needs to be closed,” says Wronski.
The SA Social Media Landscape 2014 research report, available from the end of this week, contains extensive data on both consumer and corporate use of social networks. An update to the report, providing detailed instant messaging statistics and social media forecasts for 2014, will be released at the end of 2013.
For more information contact:
- World Wide Worx: Arthur Goldstuck or Telephone: 011 782 7003
- Fuseware: Mike Wronski or Mobile: 074 1041969