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Mobile Web Not Very Sticky

MARCH 23, 2007

Remember the mobile Web?

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We were all going to use our mobile phones to access the Internet, freeing us from that horror of horrors, the desktop PC.

Didn't happen.

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Only 5% of US broadband users use the mobile Internet, according to Media-Screen. It's not for lack of access, either, since over 60% of users currently own Internet-enabled mobile devices.

Internet Access Devices Used by US Broadband Users, July 2006 (% of respondents)

Limiting the sample to broadband users only may sound like an overly narrow way to view mobile Internet usage, but these are historically the early adopters who are most likely to do things like use their phones to go online. Also, over half of all US Internet users have broadband these days, so the sample isn't as small as it used to be.

Mobile users break out into three groups: those who currently access the Internet from mobile devices (5%), those who have Internet-enabled mobile devices but don't use them to go online (58%) and those who don't have Internet-enabled mobile devices (36%).

The problem is that the mobile Web usually comes with extra fees, and it can be a hassle to establish and maintain an Internet connection.

That means that people do less on the mobile Web. Users perform an average of 3.3 online activities on their mobile devices vs. 13.4 activities on their laptops or desktops.

"The mobile Internet is still in its infancy due to technological and pricing hurdles," said Jean Durall of Media-Screen.

The picture is a little less grim when looking at all US mobile users, according to comScore Networks. The firm found that 29% of 25-to-34-year-olds used the mobile Internet from October to November 2006.

Mobile Internet Usage among US Mobile Phone Users, by Age, October-November 2006 (% of respondents in each group)

Consumers have good reason to be skeptical of the mobile Web. Accessing the Web from a phone is still largely a hit-and-miss proposition, with much content ill suited for the small screen and current mobile phone interfaces.

This all clashes with mobile Web usage in Japan, where most Internet access is by phone.

One of the main drivers in Japan is the way people pay for mobile Web access. Rather than requiring an exorbitant mobile data fee for access, much of the billing is handled on a site-by-site basis, meaning that developers can create content specifically for mobile and expect to get paid by something other than advertising, such as by selling ringtones and other media.

eMarketer's mobile analyst John du Pre Gauntt says the contrast is stark: "US operators are still scrambling to get their billing systems up to snuff for doing more than voice traffic."

For years, access has been the problem delaying mobile Web adoption in the US. Now that many people have the phones it takes, carriers are, to a large degree, unprepared to take their money.

"Although getting 3G up and running is important for mobile Web access," says Mr. Gauntt, "the other and perhaps more important part is developing an efficient billing and collection system. Once US operators have worked this out, then perhaps an independent mobile content sector will begin to flourish."

For a look at the future of mobile marketing, read eMarketer's Japan: Marketing to a Mobile Society report.  

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