1 April 2013 Data Book

All the best, Vlad Gyster At H.Engage, we believe that the best way to influence change is to be equipped with the right data. The April 2013 Data Book builds upon the prior May 2012 Data Book, and compiles the most recent research on trends in mobile, social and gaming. Slides that have been updated are marked with “updated” in the upper right hand corner, and slides that are new are marked with “new.” We’ve purposely left this document as a PowerPoint instead of a PDF. Feel free to take the slides and drop them into presentations. And don’t hesitate to send us a note to ask additional questions and share what you’re hearing from your leaders and clients. Co-founder, CEO Introduction

of U.S. adults own a cell phone 87% of smartphone owners text 91% of smartphone owners use them at work 71% Pew Research Center, Nov Think Insights with Google Pew Research Center, Dec Americans have tripled the amount of time they spend consuming media on their mobile phones since 2009, while time spent reading print continues to decline Gaming is the #2 online and mobile activity Pew Research Center, Sept Social media is the #1 online and mobile activity. 67% of adults use social networking Internet usage: 81% percent of adults use the internet. 17% use their mobile phone as their primary Internet access ESA, 2012 The headlines 92% of adults < 50 years old use text messaging Business Insider, Oct Pew Research Center, 2011 Pew Research Center, Average gamer is 30 years old Pew Research Center, Nov. 2012

Americans are paying less attention to print, and far more attention to mobile phones. eMarketer via Business Insider via H.Engage October 2012 How media consumption has changed from NEW 4% 200% 33% Print continues its decline

Pew Research Center via H.Engage December 2012 UPDATED 87% of adults own a cell phone 5 Relative to other technologies, cell phones are unmatched in their adoption rates.

Marketing Charts via H.Engage September 2007 Landline-only households have declined as households with one or more cellphones have increased drastically. Landline vs. mobile phone penetration 6 NEW

Over half of mobile phone owners now have a smartphone. 71% of them use it in the workplace. Nielsen via H.Engage March 2012 U.S. smartphone penetration 7 NEW

Pew Research Center via H.Engage March 2012 Lower income brackets are the fastest growing adopters of smartphones 8 17% of people use their smartphones as their primary access to the Internet. U.S. avg (50%)

Pew Research Center via H.Engage November 2012 All age segments send and receive a significant amount of texts per day, with 50 – 64 year olds seeing the highest increase over the last year. Everybody texts 9 NEW Millennials (20 – 35) Generation X (36 – 47) Young Boomers (48 – 57) Older Boomers (58 – 66) Silent Generation (67 – 75)

Marketing Profs via H.Engage March 2013 Text messages have a drastically larger open and response rate in comparison to other forms of communication for marketing. Using text messaging as a communication tool 10 NEW

ComScore via H.Engage December 2012 Among smartphone users, sending text messages is the top activity 11 NEW

Pew Research Center via H.Engage February 2013 Internet use is almost ubiquitous among working age adults (18-64). UPDATED 81% of adults use the Internet 12 Millennials (20 – 35) Generation X (36 – 47) Young Boomers (48 – 57) Older Boomers (58 – 66) Silent Generation (67 – 75) U.S avg. (81%)

Pew Research Center via H.Engage September 2012 Top online activities for American adults 13 , searching and social networking are among popular online activities. is an extremely effective communication tool

Pew Research Center via H.Engage September 2012 Time spent on online activities 14 Social networking continues to dominate time spent online.

67% of adults use online social networking sites. Pew Research Center via H.Engage February 2013 Social networking use by age group 15 NEW

57% Increase in a person's chance of becoming obese if a friend became obese. That’s more predictive than if they shared genes associated with obesity. 25% Increase in a person’s chance of becoming happy if a friend who lived within a mile became happy. 75% Increase in a person’s chance of divorce if a friend or colleague divorced. The size of the effect was measurable at two degrees of separation (friend of a friend), at 33%. Research by Nicholas Christakis Who you know matters 16 The science behind social networking shows that humans are social creatures. Since the beginning of time they have relied on the benefits of groups. Through necessity, social networks were then created to share experiences, needs and desires.

The average social gamer is 30 years old. ESA via H.Engage 2012 Who’s playing social games? 17

Time spent on mobile apps has dwarfed time users spend on the mobile web. Smartphone users spend over 127 minutes per day on mobile apps. Flurry via Business Insider via H.Engage November 2012 Games Entertainment Social networking Utilities Other Gaming is the most engaging smartphone app 18 NEW

19 Online and videos

Those between the ages of spent the most time online, averaging almost 40 hours per month. ComScore via H.Engage Q Adults average 32 hours per month online 20 Millennials (20 – 35) Generation X (36 – 47) Young Boomers (48 – 57) Older Boomers (58 – 66) Silent Generation (67 – 75)

The U.S. online video market attracts an average of 75 million viewers daily and streams nearly 40 billion videos per month. ComScore via H.Engage February 2013 Online video demand 21 NEW

22 Mobile

Most U.S. adults are skilled multitaskers. 57% of the time we’re using our smartphone, we’re also using another device. Think with Google via H.Engage August 2012 The multi-screen living room 81% 66% Use smartphone and television together Use smartphone and PC/laptop together Use PC/laptop and television together 23 % of U.S. adults that use more than one device simultaneously NEW

Pew Research Center via H.Engage November % of Americans text Cell phone users across all demographic groups send and receive text messages. 24 NEW

Nielsen via H.Engage March 2010 Those under 18 exchange twice as many text messages as those in the 18 – 24 age group. Text message and voice behaviors by age segment 25 NEW Millennials (20 – 35) Generation X (36 – 47) Young Boomers (48 – 57) Older Boomers (58 – 66) Silent Generation (67 – 75)

Low income (<$15,000) 18 – 24 year olds are 18% more likely to have a smartphone than high income ($100,000 +) 55 – 64 year olds. U.S. avg. = 46% Pew Research Center via H.Engage February 2012 Smartphones are helping close the technology access gap for low income employees UPDATED 26

45% of American adults own a smartphone. Pew Research Center via H.Engage February 2013 UPDATED The majority of Americans are smartphone users 27 A feature phone is a mobile phone that has less computing ability than a smartphone, but more than a basic mobile phone. A smartphone is a mobile phone that offers advanced computing ability and connectivity.

While Asian Americans lead smartphone adoption, almost 3 in 5 Hispanic mobile subscribers own a smartphone. Nielsen via H.Engage May 2012 U.S. smartphone penetration by ethnicity 28 NEW

52% of smartphone owners have a phone that runs on the Android operating system, far surpassing Apple’s iOS system. Nielsen via H.Engage December 2012 Top U.S. smartphone operating systems Others 29 NEW Employee apps that run on iOS only are inherently less inclusive

56% of U.S. cell phone users access the Internet on their mobile phones. Pew Research Center via H.Engage November 2012 Mobile beyond calling and texting UPDATED 30

31 Social media

Facebook continues to dominate time spent on social networking sites, accounting for 4 out of 5 hours on social networking sites. ComScore via H.Engage February 2013 Facebook is the most popular social networking site/blog 32 NEW

Increased utilization of mobile phones and social media is especially pronounced in the 55+ age segment. Nielsen via H.Engage May 2011 In mobile and social, older adults are catching up 33

Computers are still the predominant way that people access social media; however, mobile phone access increased 9% between 2011 and Nielsen via H.Engage December 2012 Most access social media on their computer 34 NEW

“Likes” “Liked” a friend’s content 14 times Photos 12% of users tagged a friend in a photo MessagesSent 9 messages Friend requests 40% of users made a friend request ContributeReceive 35% were tagged in a photo 63% received a friend request Had their own content “liked” 20 times Received 12 messages The rest of users receive more information and feedback from their connections than they contribute. Pew Research Center via H.Engage February – 30% of Facebook users drive the majority of activity 35

Pew Research Center via H.Engage February 2012 Majority of users now restrict access to their profiles and manage the information available about them. More are taking steps to manage their social network image 36

Most use social media platforms to stay in touch with family members and friends (both new and old). Pew Research Center via H.Engage November % of adults use an online social media platform 37

38 Global

Mobile phones are a constant for consumers around the globe regardless of demographics or geography. Nielsen via H.Engage February 2013 The mobile consumer around the globe 39 NEW

Prepaid plans are far more popular outside of the United States. Nielsen via H.Engage February 2013 How global consumers pay for mobile 40 NEW

41 Appendix

U.S. Census Bureau via H.Engage 2010 Level setting A look at the U.S. population 42 Millennials (20-35) Generation X (36-47) Young Boomers (48-57) Older Boomers (58-66) Silent Generation (67-75)