Messenger Wars - How Facebook Lost Its Lead

A survey of smartphone owners in 5 countries (US, Brazil, South Africa, Indonesia, China) shows that WhatsApp is now the most popular social messenger.

Transcript

1. Messenger Wars How Facebook lost its lead
2. Facebook is the giant in social networking but WhatsApp has taken the lead in social messaging on mobile A survey of 3,759 Android and iOS smartphone owners in the US, Brazil, South Africa, Indonesia and China, carried out by mobile market research company On Device Research, reveals that Facebook Messenger no longer leads in social messaging.
3. Top 3 social messaging apps on smartphones Research data from the US, Brazil, South Africa, China and Indonesia shows that Facebook Messenger leads only in the US. 46% 35% 24% Facebook Messenger WhatsApp Twitter 72%   49%   30%   WhatsApp Facebook Messenger Skype 43% 37% 36% WhatsApp BBM Line 68% 47% 34% WhatsApp Facebook Messenger BBM Source: On Device Research, November 2013 N=3759, US, Brazil, China, South Africa, Indonesia smartphone owners 93% 46% 6% WeChat Sina Weibo Skype
4. The dominant way to stay in touch Messaging apps aren’t just competing against each other. They are challenging calling, texting and emailing on the phone. Q: How often do you use these ways of staying in touch on your phone? 63% 31% 40% 24% 86% 73% 75% 60% 17% 33% 28% 24% 6% 9% 7% 12% Social messaging Voice calls SMS Email Average of 5 countries 10+ times/day 2-3 times/day Once a day At least once/day combined Source: On Device Research, November 2013 N=3759, US, Brazil, China, South Africa, Indonesia smartphone owners Per country charts can be found in the annex at the end of the presentation. % of respondents
5. 61% 48% 41% 10% 85% 81% 79% 40% Social messaging apps Voice calls SMS Email More than 10 times a day Daily Source: On Device Research, November 2013 N=1406 in the US, n=544 in China, smartphone owners Per country charts can be found in the annex at the end of the presentation. 46% 29% 44% 29% 72% 75% 71% 69% Social messaging apps Voice calls SMS Email Visible differences between the US and China Q: How often do you use these ways of staying in touch on your phone?
6. Two main reasons which drive people to use multiple instant messaging apps 1. Different friends using different platforms is the biggest reason – the network effect is a challenge all messaging platforms need to overcome to grow. 2. Different apps for different features is a close second. Only 12% globally said they use different apps for friends vs. for strangers (for dating, commerce etc.)
7. 58% 57% 54% 55% 73% 50% 52% 42% 55% 62% 47% 55% 12% 13% 10% 8% 15% 12% 10% 10% 8% 11% 7% 12% Global US Brazil Indonesia South Africa China Different friends use different apps Because of different features One for people I don't know well, other(s) for friends/family It used to be free, it's not any more 58% use a variety of IM apps because their friends are spread over different networks. Q: Why do you use different messaging apps? Source: On Device Research, November 2013 N=3759, US, Brazil, China, South Africa, Indonesia smartphone owners
8. Average number of messaging apps installed? Source: On Device Research, November 2013 N=3759, US, Brazil, China, South Africa, Indonesia smartphone owners 4.2 4.1 2.6 2.4 2.1 Indonesia South Africa Brazil China US
9. Big differences country-to-country - popularity of WeChat mostly driven by China Q: Which social messaging app do you use at least once a week? US 35% US 46% US 6% CH 3% CH 9% CH 93% ID 43% ID 23% ID 20% BR 72% BR 49% BR 5% SA 68% SA 47% SA 18% WhatsApp Facebook WeChat Source: On Device Research, November 2013 N=3759, US, Brazil, China, South Africa, Indonesia smartphone owners
10. WhatsApp is now the leader in social messaging apps across the 5 markets covered Q: Which social messaging app do you use at least once a week? 44% 35% 28% 19% 17% 16% WhatsApp Facebook Messenger WeChat Twitter BBM Skype Source: On Device Research, November 2013 N=3759, US, Brazil, China, South Africa, Indonesia smartphone owners
11. 40% 46% 50% 51% 37% 39% 33% 22% 16-24 25-34 35-44 Over 45 Facebook Messenger WhatsApp Source: On Device Research, November 2013 N=1167, US smartphone owners Even in the US, Facebook Messenger is facing stiff competition as WhatsApp gains popularity – especially in the 16-24 age group Q: Which social messaging app do you use at least once a week?
12. [We] did see a decrease in daily users specifically among younger teens. David Ebersman CFO of Facebook October 30, 2013 Source: Facebook earnings call, October 30, 2013
13. 45% use only Facebook 31% use only WhatsApp Source: On Device Research, November 2013 N=895, US smartphone owners who use Facebook and/or WhatsApp Only a quarter of smartphone users in the US use both platforms actively Q: Which social messaging app do you use at least once a week? 24%
14. WeChat spilling out of China Line’s popularity outside of Japan is well known, our research shows that WeChat is similarly being adopted in new markets. WeChat crossed 100 million registered users outside of China back in August 2013. Source: On Device Research, November 2013, TechinAsia, August 2013 N=2524, US, South Africa, Indonesia smartphone owners 6% 20% 18% US Indonesia South Africa % of smartphone owners using weekly
15. BBM shows significant popularity in Indonesia and South Africa Our survey excluded BlackBerry owners so people who use this messenger have installed the BBM app which was released 3 weeks prior to the survey. Q6. Which of these messaging services do you use at least once a week? 13% 37% 34% US Indonesia South Africa % of smartphone owners using weekly Source: On Device Research, November 2013 N=2524, US, South Africa, Indonesia smartphone owners
16. 1.2 billion photos a day Shared via just 4 services
17. CEO and founder of WhatsApp Source: https://twitter.com/jankoum/status/394259718606053376, October 2013
18. More photos are now shared via Snapchat than Facebook 400m 400m 350m 55m Snapchat WeChat Facebook Instagram Millions of photos shared a day Source: Company reports, November 2013
19. Snapchat with its self-destructive photos and videos is a strong challenger despite a relatively small user base Q: Which social messaging app do you use at least once a week? 16-24 20% 25 or older 3% Snapchat in the US Source: On Device Research, November 2013, WSJ November, 2013 N=1167, US smartphone owners In the 5 countries that we researched only the 16-24 age group in the US showed significant use of Snapchat. According to Evan Spiegel, the CEO of Snapchat, 70% of the services users are women.
20. With the social graph being built into the address books of our mobile devices, freely accessible for all messaging platforms, the barriers to entering the market are tumbling down. Alistair Hill CEO, On Device Research
21. Money in stickers Line earned $27.4 million in Q2/2013 from them Source: The Next Web, August 2013
22. How do instant messengers make money? •  Stickers, e.g. $0.99 for a set of 16 in WeChat. Line makes over $10 million a month this way. •  Promoting other apps and games that monetise via in- app purchases •  Subscription fees Source: The Next Web, October 2013
23. 35% 24% 46% 38% 43% 18% 37% 13% 18% 13% 74% 54% 84% 69% 82% Use daily Never used Have used Stickers are well known and actively used by almost 40% of smartphone users Q: Do you use stickers / emoji in messaging apps? Have used at least once Source: On Device Research, November 2013 N=3759, US, Brazil, China, South Africa, Indonesia smartphone owners US Brazil Indonesia South Africa China
24. As Spaniards like to express our feelings using our bodies and facial expressions the stickers are very cool. I can never stay angry at my boyfriend long if he sends me a cute sticker. Marina Couso (29), Line user from Spain Source: Reuters, October 2013
25. Over 20% of sticker-users have purchased paid stickers at least once Q: Have you ever paid for stickers / emoji in messaging apps? 80% 11% 9% Never Yes, once More than once 31% 27% 19% 14% 12% China South Africa Indonesia US Brazil Have bought stickers at least once Source: On Device Research, November 2013 N=2610, US, Brazil, China, South Africa, Indonesia smartphone owners
26. On Device Research uses the mobile internet to gain access to consumer opinions at any time, place or country. Want Excel tables with the survey data? Get in touch!
27. We have undertaken projects in 58 countries Over 12 million people have taken one of our surveys on their mobile
28. ondeviceresearch.com Follow us: For more info: Siim Teller siim@ondeviceresearch.com @teller
29. Appendix
30. 46% 29% 44% 29% 18% 35% 21% 27% 8% 11% 6% 13% 72% 75% 71% 69% Social messaging apps Voice calls SMS Email More than 10 times a day 2-3 times a day Once a day Daily US Q: How often do you use these ways of staying in touch on your phone? Source: On Device Research, November 2013 N=3759, US, Brazil, China, South Africa, Indonesia smartphone owners
31. Brazil Q: How often do you use these ways of staying in touch on your phone? 67% 24% 40% 28% 15% 30% 24% 26% 4% 8% 7% 12% 86% 62% 71% 66% Social messaging apps Voice calls SMS Email More than 10 times a day 2-3 times a day Once a day Daily Source: On Device Research, November 2013 N=3759, US, Brazil, China, South Africa, Indonesia smartphone owners
32. Indonesia Q: How often do you use these ways of staying in touch on your phone? 61%   24%   48%   22%   21% 36% 30% 28% 7% 9% 5% 13% 89% 69% 83% 63% Social messaging apps Voice calls SMS Email More than 10 times a day 2-3 times a day Once a day Daily Source: On Device Research, November 2013 N=3759, US, Brazil, China, South Africa, Indonesia smartphone owners
33. South Africa Q: How often do you use these ways of staying in touch on your phone? 79% 31% 29% 31% 13% 2% 10% 8% 11% 94% 75% 73% 65% Social messaging apps Voice calls SMS Email More than 10 times a day 2-3 times a day Once a day Daily Source: On Device Research, November 2013 N=3759, US, Brazil, China, South Africa, Indonesia smartphone owners
34. China Q: How often do you use these ways of staying in touch on your phone? 61% 48% 41% 10% 17% 28% 31% 18% 7% 5% 7% 12% 85% 81% 79% 40% Social messaging apps Voice calls SMS Email More than 10 times a day 2-3 times a day Once a day Daily Source: On Device Research, November 2013 N=3759, US, Brazil, China, South Africa, Indonesia smartphone owners