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59% of mobile phone owners are interested in upgrading or buying a new phone in the next 12 months.
The most important factors in the decision to purchase a new phone are promotions and hardware innovation.
The environmental impact is a key factor: 70% of those interested are willing to pay more for environmentally friendly products.
Teads, the global digital advertising platform encompassing the world’s leading publishers, today announced the results of its latest consumer survey, conducted in partnership with market analyst GWI. This global research, the largest ever by Teads and covering 17 markets, revealed that smartphone makers will need to adapt to new factors that are driving purchases. As the smartphone market has become less fragmented, consumers are relying more on individual and innovative features to help them make a decision rather than brand loyalty.
When asked about the most important factors in their decision to purchase a new phone, 61% of respondents answered “promotional packages” as the first option. It was followed by “innovative hardware” (58%), then “innovative design” (48%) and “warranty” (48%). This last key factor had the narrowest gap between demographics, with just one percentage point difference between Generation X (11%) and Millennials (10%), revealing that consumers of both generations approach their purchase in terms of long-term, including repair and warranty policies, both by the manufacturer and the network operators.
Some other factors driving phone purchases are low cost of equipment or a plan along with financing or credit (39%), followed by new releases (38%). Generation X is the most interested in new launches in teams with 11%, followed by Millennials with 10% and lastly, with only 6%, Generation Z.
As an important fact, consumers are not only looking for the latest model of the previously purchased equipment brand. 89% of stakeholders would consider a rebrand, with Generation Z and Millennials (90%) the most likely to switch, followed by Generation X (85%). It also highlights that men have a greater tendency to change brands, with 92% compared to women with 86%. Additionally, 76% of respondents agreed that a phone is not just a technology product, but part of their identity.
On sustainability, only 23% of respondents mentioned recycling solutions as an important factor in choosing a phone. However, 70% would be willing to pay more for environmentally friendly products, 76% said they want brands to be socially responsible and care about the environment, and 74% mentioned durability as an important feature of equipment.
This presents a new view of the mobile phone market, as it is clear that buyers are still influenced by the key features of the hardware, but the financial and environmental decisions of companies play an increasingly important role in the life cycle. purchase, with consumers looking for products with less impact on the planet and longer life.
On the other hand, the study also shows that the desire to have the most recent device has not changed, since 19% of those interested in acquiring a new phone had less than 6 months with their equipment, and almost half, 42%, had bought one less than a year ago at the time of the survey. This, despite the fact that 72% mentioned being “very satisfied” with their phones.
Izael Castillo, Insights Manager of Teads Mexico, commented: “This study, for the first time, highlights the great difference that exists in the profiles of potential smartphone buyers according to their age, their expectations, their socioeconomic level and their attitudinal profile; It demonstrates the great complexity that brands face in adapting their discourse according to each segment they target.
We also note that Mexico, along with Brazil, has the highest level of users willing to switch brands in the world, further reflecting the need to communicate with the right message, at the right time and in the right context, to the right people. . The best positioned and leading brands in the market can perceive this as a threat, and developing brands as a great area of opportunity. Still ambivalent, each one will have to know how to exploit the potential of digital in order to properly approach their next buyer and differentiate themselves from their competitors.” Castle concluded
Ariel Sande, VP Client Partnerships Latam at Teads, pointed out: “The mobile device market in Mexico is one of the most competitive in the world, with the entry of new players on a frequent basis. Therefore, advertising communication is the main tool to expand market share and keep consumers captive, especially in digital media where the consumer spends most of his time. On average, in the country, users spend 4.3 hours a day of their attention on the phone, mainly consuming video content, reading articles and visiting social networks. Through emotional communication, in an environment that supports the credibility of the message and integrated into these activities, brands will be able to overcome the challenge of change and maintain the loyalty of Mexican users, who, according to the study, intend to change device in less than a year much higher than the global average (51% vs 59%)”.