Consumers Under 35 Ditching Browser for Apps, Study Shows

Consumers under 35 - that is, those in Generations X and Y, the latter also referred to as "millennials" - tend to prefer using mobile applications over Web browsers on smartphones, as compared with older mobile users, a new study shows. Data collected by market research and consulting firm Parks Associates, found that this young demographic is starting to ditch the Web browser in favor of apps, and are especially put off by mobile websites not designed for the small screen.

The preference for native mobile applications is growing among this under-35 group, said Harry Wang, director of mobile product research, Parks Associates, because apps don't require users to enter in Web addresses or force them to deal with slow browser speeds, he explained.

"The mobile experience is all about convenience and instantaneous access," Wang said. "The advantages of mobile apps could lead to a new content distribution environment for paid and ad-supported media services."

Although Wang contended that mobile apps will not completely replace Web browsers, distributors that rely too much on the mobile Web may lose audience and revenues.

While that statement may have developers running to download native SDKs (software development kits) for iPhone, Android and other platforms, a word of caution from us: this research was based on a survey, where apparently the question asked was: "I prefer apps over a Web browser when accessing mobile content. Agree? Disagree?"

As you know, surveys that ask users to identify their own behavioral patterns aren't as viable as those that actually measure the behavior itself.

It's also worth pointing out that these findings contradict two other reports we've seen this year. One report was from a mobile search company (and app maker) Taptu, which said that the future of the mobile Web is likely to be dominated by cross-platform browser-based mobile websites, not native apps. Adobe, too, released a report in October saying people prefer the mobile Web to apps.

In other words, take this latest with a grain of salt until more research arrives. But do consider that there is likely an obvious truth here: native mobile apps will always be preferred when the mobile Web experience (slow loading times, no mobile site) remains poor.

Online Branded Communities Grow Up

NOVEMBER 10, 2010 

Marketers get on board with best practices and strategic thinking

According to the second annual “State of Online Branded Communities” study by full-service social engagement firm ComBlu, which examined practices in the online communities of major brands, marketers have adopted a wide variety of best practices and begun to integrate their online community efforts across a variety of social media.

In 2009, just under a third of communities studied were integrated with Facebook, Twitter, YouTube or other social sites that the marketer had a presence on. By 2010, the proportion had more than doubled, to 68%.

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Comparing a variety of features studied in 2009 to levels of adoption in 2010, the study found online branded communities had increased adoption of best practices across the board. Some of the biggest jumps were in availability of faceted search, inclusion of rich media content, integration with social media and the use of “fun” engagement tools.

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Newer best practices studied this year included share features (used by 61% of communities) and brand advocacy programs (used by just 20%).

The report said that lack of engagement and recognition of brand advocates and experts was a failure to take advantage of some of the brand’s most valuable assets.

“If activated properly, community members become the face and voice of the customer—and ultimately of the brand—across the social cloud,” said Kathy Baughman, a principal at ComBlu, in a statement.

What Really Drives Young Adults' Purchase Decisions?

NOVEMBER 5, 2010 

Products that convey personal achievement and social interaction are valued

Research has suggested that cause marketing appeals to US consumers, and that millennials in particular care about social and environmental issues.

Data presented by Resonate Networks at the October 2010 Pivot Conference in New York City confirmed the importance of such issues to young adults. Consumers ages 18 to 34 are more likely than their older counterparts to care about a variety of issues, including various civil rights and environmental concerns.

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However, those beliefs don’t necessarily translate to purchase decisions that support causes they care about. Millennials placed less importance than older consumers on various corporate-citizenship practices when actually purchasing products.

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While millennials do care about societal issues, personal achievement and social interaction are also key values. Quality, value and other utilitarian aspects are still top product attributes, but to a lesser degree than for their elders. At the same time, millennials are more image conscious. Superficial traits like looks and prestige are valued less overall by younger people but still mean more to them than to older generations.

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Resonate said that millennials need “external validation” and “value products and services that convey their success to others while rewarding themselves.”

This does not mean they don’t care about others. But a successful marketing approach combines these traits, for instance, by encouraging users not only to donate to, say, Haiti but also to broadcast their donation to their friends on Facebook.

Brands must give millennials the opportunity to express themselves, according to Resonate, a concept backed up by other research as well.

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Gaining Consumer Trust Online and Offline

OCTOBER 26, 2010 

Marketers must leverage trust, not just popularity

Trust and credibility are the gold standards by which relationships are measured. This is true of personal relationships as well as connections between people and brands.

The rise of social media has reinforced the importance of trust. Successful and enduring social networks such as Facebook and LinkedIn are built on a foundation of trust and transparency. But social media has also distorted the notion of trust and put an emphasis on the size of a person’s network and connections.

“Most people’s decisions are shaped by word-of-mouth input, whether online or offline, from a tight circle of close friends and relatives,” said Paul Verna, eMarketer senior analyst and author of the new report “Word-of-Mouth Marketing: Leveraging Trust Online and Offline.” “Marketers seeking to maximize their reach should focus on the quality of social network connections rather than their sheer size.”

According to Invoke Solutions, quantitative measures such as the volume of content and participation, the length of time people have been fans or followers, or the raw number of followers or fans mattered far less in inspiring trust than the openness of the dialogue, the quality of the comments, and the responsiveness of the sponsor or author.

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And Vision Critical found that among US consumers overall as well as daily social network users, friends and family were trusted for product recommendations far more than brand-originated content or people consumers did not know.

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And marketers around the world agree that popularity does not equal influence on social media sites.

“The level of influence over one’s friends, followers or fans is the real key, and influence does not necessarily correlate to the size of the network,” said Verna.

In addition, there is a feedback loop between online and offline word-of-mouth, and marketers must understand the connections and differences between the channels.


The full report, “Word-of-Mouth Marketing: Leveraging Trust Online and Offline,” also answers these key questions:

  • How does the size of a person’s network of connections affect the level of influence that person has over friends or followers?
  • How much word-of-mouth takes place online versus offline?
  • Whom do consumers trust most when it comes to word-of-mouth?
  • What role does word-of-mouth play in shaping brand perceptions and buying decisions?
  • What can marketers learn from consumers’ levels of trust in advertising and customer reviews?

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Social Media Now More Popular Than E-Mail on Mobile Devices

Mobile users spend 1.4 times as many hours using social networking sites than reading and responding to e-mail, according to a recent study by research company TNS. On average, users spend 3.1 hours per week on social networks, versus 2.2 hours on e-mail.

In most mature markets — such as the U.S. — the trend is reversed on PCs; consumers spend more time on e-mail (5.1 hours per week) than social networking (3.8 hours).

The study, which tracked the online activities and behaviors of nearly nearly 50,000 subjects between 16 and 60 years of age in 46 countries, cited “the increased need for instant gratification” as well as “the ability to offer multiple messaging formats, including the instant message or update function,” for the popularity of social networking platforms on mobile devices. More consumers, both in the U.S. and abroad, expect to spend even more time accessing social media on their mobile devices in the future, rather than their PCs.

In addition to the mobile use patterns cited above, the survey found that those who had Internet

 access were more likely to use it daily (61% of those surveyed) than TV (54%), radio (36%) and newspapers (32%).

In general, consumers proved more engaged and comfortable with social media in rapid growth markets, particularly in Asia, than those in more mature markets. In areas of rapid development, social networking takes up more of users’ time (5.2 hours per week) than e-mail (4.2 hours) on PCs.

The heaviest users of social media live in Malaysia (9 hours per week), Russia (8.1 hours) and Turkey (7.7 hours). 88% of online users in China and 51% in Brazil said they have written their own blog or forum entry, compared to a little less than a third in the U.S.

More than 85% of online consumers living in Thailand, Malaysia and Vietnam have uploaded photos to social networks or photo-sharing sites, while only 28% and 48% have done so in Japan and Germany, respectively.

TNS Chief Development Officer Matthew Froggatt explains that social media is less popular in more developed countries because consumers have learned to take much of what the Internet has to offer for granted.

“However, in rapid growth markets that have seen recent, sustained investment in infrastructure, users are embracing these new channels in much more active ways.  The digital world is transforming how they live, develop and interact and online consumers in these markets are leaving those in the developed world behind in terms of being active online and engaging in new forms of communications,” he says.

Social Network Content Creation Has Plateaued [STUDY]

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With 500 million people using Facebook and Twitter seeing more thantwo billion tweets per month, one would assume that social media usage is skyrocketing. New research from Forrester suggests that while participation is on the rise, actual content creation may not be.

Forrester’s Social Technographics Profile analyzes consumer social behaviors and trends on an annual basis. Forrester classifies social network users by type: Creators, Conversationalists, Critics, Collectors, Joiners, Spectators and Inactives. In the past year, their research shows no measurable growth in the Creators category — the audience that creates social content.

In the U.S., the Creator audience has actually dipped a percentage point from 24% in 2009 to 23% in 2010. Japan was the only country measured to show a rise in Creators, growing from 34% to 36% in the past year.

When it comes to social media, it would seem then that the average user feels most at home taking more passive actions, and that a majority of content creation is primarily limited to the existing content creator crowd. As Forrester reports, “One-third of online consumers in the U.S. regularly watch user-generated videos on sites like YouTube. But only 10% of U.S. online consumers upload videos they’ve created to public sites.”

Still, social networking is on the rise, according to Forrester. In the Joiners category (those that join social networks), most countries surveyed saw significant increases, including the U.S., which jumped from 51% to 59% between 2009 and 2010.

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For more Social Media coverage:

How Your Likes Are Turning Facebook Into the 'Loyalty Card of the Internet'

Brands Such as Levi's, Urban Outfitters Are Using the Clicks of Approval to Tailor Marketing, but Will They Scare Consumers?

NEW YORK (AdAge.com) -- Facebook has been collecting thumbs up on everything from Levi's black denim leggings to Sarah Palin videos since April. But where do all those clicks of approval go? And when are brands going to benefit?

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Urban Outfitters recently began to rank products based on likes, displaying the most thumbs-upped products first.

When the social network launched its open graph and "like" buttons that could be seeded anywhere across the internet, it began to layer brand and media preferences onto its more than half-billion user profiles. At the time of the announcement, Facebook CEO Mark Zuckerberg evangelized about a web that could morph to suit individual users' likes and social networks. In exchange for hosting its like buttons and spreading the gospel, brands and publishers could gain access to approving users' Facebook feeds, but not much else -- until recently. Now, some new programs from the likes of shopping search engine TheFind and Urban Outfitters point to a future where brands can actually flip the pipe to use all that data to personalize their own websites.

TheFind recently launched a search option where users could refine searches based on stores and brands they've liked elsewhere on the internet. After logging in with Facebook credentials and searching for products, users can visit a "Shop Like Me" tab to see results only from stores or brands they've liked elsewhere. Facebook Like lets the site tailor search results to user preferences without having to collect that information itself, said Siva Kumar, CEO of TheFind, which had 13.7 million unique visitors in July, according to ComScore. Having users list their own preferences at TheFind is "a lot of work for people," he said. "We looked at likes and what was attractive is that there are 500 million users that have done a lot of that already." Two million of Facebook's users, for example, have liked Nike, 1.6 million have liked Walmart and 1.2 million have liked Best Buy.

"Facebook is becoming the loyalty card of the internet, just like your key chain," said Tom Wentworth, VP-web solutions for technology company Ektron, which is developing products for corporate websites to tailor visits based on the user's social graph. Mr. Wentworth says Home Depot is considering Ektron's technology to better send its consumers down the paths that suit their interests, whether they be gardening or contracting.

Levi Strauss integrated Facebook likes into its website shortly after the open graph launched. Rather than having consumers simply like the brand, users can like individual products and styles on jeans. There's also a friends search tab, where, once signed in with your Facebook login, you can see all the jeans your friends have liked.

But Mr. Zuckerberg's vision of a personal web doesn't come without hurdles. Levi's likes for individual products took a lot of custom-designed technological tinkering -- it wasn't as simple as dropping the thumbs up in a line of code. Bookseller Borders has also implemented likes for individual titles on its site, and Urban Outfitters recently began to rank products based on likes, displaying the most thumbs-upped products first. But most use of the feature still focuses on affinity for the overall brand, vs. distinct products or services.

"Adding the buttons is easy," said Mr. Kumar. "But the second part is using that information for a better experience, and very few sites have done that."

Beyond search, one Facebook software firm, Vitrue, is building tools to let marketers send distinct messages to its fans based on their likes and preferences. For example, it hopes to slice and dice Levi's fans based on products they've liked to serve legging coupons to legging likers, rather than all sales and promotions to all likers.

"The hurdle with large brands is one more of coordination between the marketing department and the IT department," said Vitrue's Mr. Bradford. "Marketing owns the Facebook pages and, in many cases, IT owns the website."

There's also the question of consumer adoption -- do people think of likes as a way to catalog the boots they loved in Vogue, when we're used to using the like button to applaud Facebook updates on promotions at work or changed-relationship statuses? Also, what happens when likes paint us into corners that limit our web surfing?

"It's both about not scaring people but the other area to watch out is, if you personalize too much, it can be dangerous," said Ektron's Mr. Wentworth. "You don't want to make premature assumptions about somebody."

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5 Important New Trends in Location

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As Facebook enters into the location market with Facebook Places, the world’s largest social network will help to make the edgy concept of checkins and location-sharing a mainstream practice.

Facebook

 is just one company attempting to add location for context; there are countless others going above and beyond checkins to push the space forward. There’s also a noticeable uptick in consumer interest around applications and services that feature location for sharing or utility.

The geolocation space is the one to watch right now — celebrities are flocking to Foursquare

, location is finding a unique purpose in many mobile apps, background location is becoming a commonplace feature on smartphones, geofencing is evolving in purpose and function, and location-based social networks are proving to be the perfect platforms for cause marketing. What follows is a more detailed look at these five huge trends in location and how they will influence consumer adoption and inspire developer creativity.


1. Hollywood Has Come Calling


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Much of Twitter’s meteoric rise to the top of the social media food chain can be attributed to celebrity adoption. Sure, we geeks got Twitter

 almost instantaneously, but the rest of the world — mainstream media and big brands especially — needed a nudge in the right direction. Once athletes, teen heartthrobs and movie starsdiscovered Twitter, they helped to solidify the service as an important medium for real-time conversations.

Now, celebrities are slowly but surely turning their attention to location-sharing services. Foursquare is having its Hollywood moment as newbies like Ellen Degeneres and 50 Cent find a purpose for checking in while out and about.

Foursquare’s celebrity roster also includes Arnold Schwarznegger, Ashton Kutcher, Demi Moore, Ryan Seacrest, Pee Wee Herman and Don Lemon. Even Martha Stewart appears to have taken a liking to the service.

As influential celebrities unlock the value of Foursquare, the startup’s street cred is gaining momentum and attracting the attention of even more A-listers. We may soon find rapper Snoop Dogg checking in to Foursquare, and it sounds as if Questo of The Roots is on the inevitable path to becoming a Foursquare user as well.

Celebrity interest in location-sharing is bound to accelerate, and will only help to further propel the trendy behavior to a more mainstream audience.


2. Location as a Feature


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Your location is an important frame of reference for pretty much everything you do. Whether you’re sharing photos, scouting out a place to eat, searching for a movie, or simply lounging at home looking for something to do, where you are in the world matters.

Location already factors in to most mobile search experiences, and it’s becoming an even more prevalent feature inside apps with other core purposes. Yelp

 and Flixster
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 are obvious examples of how location can provide meaningful context to mobile services that exist for much different purposes.

Mobile app Qrank takes the age-old fun of trivia and incorporates location into the mix for live, location-based trivia contests. PadMapper

 for iPhone and Android
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 makes apartment hunting a little less painful by using your location as a filter for nearby results. Yoink’s iPhone app includes location functionality to make offloading junk and finding free treasures more useful than Freecycle or Craigslist
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Foodspotting uses location to display nearby restaurant photos and create a window-shopping-like experience.Mopho’s mobile photo sharing application distinguishes itself with location — users can share their location with a photo and discover nearby people and photos. Picksie predicts activities for you via iPad, using location to zero in on the best recommendations. And the list goes on.

The trend is also trickling over to websites with the help of geo-aware browsers. Web and mobile applications are now, more than ever, incorporating location as an experience-enhancing feature for differentiation in increasingly crowded markets.


3. Automatic Background Behaviors


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With most smartphones capable of supporting applications that continue to run in the background, a new host of mobile applications are cropping up that log your location as a background process while you trek about.

The basic idea — real-time location tracking — isn’t a new one. Both Loopt and Google Latitude have been experimenting with this for years. But the rise of background location and increased user interest in location-sharing together serve as a catalyst for developer interest.

Several app makers, for instance, are attempting to make the checkin experience a more passive and implicit one. While Foursquare and Gowalla

 continue to operate an explicit checkin model, Checkmate and Future Checkin exist to make checkins automatic on the iPhone. Now you can check in from the car, no manual entry or phone-fiddling required.

Loopt also leverages background location on iPhone and Android to determine the proximity between you and your Loopt friends, sending automatic alerts should a friend happen to be in the vicinity.

For now, you’ll risk draining your battery for the convenience of running location apps in the background, but we suspect that application developers will work to better optimize the experience in their respective apps. As applications become better optimized for geolocation purposes, look for these automatic behaviors to become more sophisticated in function.


4. Personal and Peer-to-Peer Location-Sharing



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Advancements in mobile phone location technology not only allow for automatic background location behaviors, but also facilitate real-time, private location sharing for more practical purposes of a personal variety.

Geofencing technology powers most of these features — a geofence is nothing more than a virtual perimeter for a geographic area. Simply put, newer location-based applications enable users to build virtual fences around areas of interest. Those fences can be static or dynamic in nature, and possess properties that trigger behaviors such as notifications and automatic location updates upon zone entry or exit.

In Neer, geofencing is used behind-the-scenes to update a user’s whereabouts and trigger follow-up behaviors. When a Neer user enters or leaves a pre-defined, geofenced region, the application will update accordingly. Friends and family will receive automatic notifications, should the user so specify.

Geoloqi offers another approach to private location-sharing. The full-featured mobile and web platform also taps into to geofencing technology so users can leave themselves geo-located notes and perform time-saving automatic location-specific activities — think sending and receiving SMS messages when you enter or leave designated areas.

These private location-sharing activities could come in handy if you want to automatically notify a friend that you’re on your way to their house, or auto-email your boss that you’re running late. The service is currently limited to beta testers, but it certainly highlights the practical potential of background location for personal and peer-to-peer use.


5. Location as a Platform to Make a Statement


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MTV recently worked with Foursquare to create the Get Yourself Tested badge. The proactive initiative is designed to encourage sexually active young adults to check in when they visit a clinic, and help to remove the stigma around the experience. The campaign is working — in just a few weeks time, Foursquare has doled out more than 3,000 Get Yourself Tested badges.

Whether or not you agree with the mission behind the Get Yourself Tested campaign, MTV is successfully using Foursquare as a platform to promote a cause they believe to be important.

Last year, Foursquare teamed up with Pepsi to launch a check in for charity initiative in the New York area. Foursquare user activity over the course of one weekend helped raise $9,200 for CampInteractive. The campaign also caught the attention of an anonymous donor who stepped in to donate $50,000, putting the funds raised for the non-profit during the weekend promo just shy of $60,000.

Location-based cause marketing has also found a home on Gowalla. The location-sharing challenger, which takes a stamp-based approach to city exploration, recently partnered with TOMS Shoes on their One for One movement — TOMS matches every pair of shoes purchased with a pair of new shoes for a child in need. The partnership was designed to raise awareness around TOMS Shoes’ one-millionth shoe drop and promote the cause through checkins. Gowalla estimates that it helped to expose the campaign to more than 522,000 people.

Gowalla is also linked with LIVESTRONG. During the Tour de France, Gowalla users could check in to share their messages of hope and inspiration for those affected by cancer. Those messages were painted on the streets thanks to the help of a Nike/LIVESTRONG Chalkbot.

Are Twitter Followers Better Than Facebook Fans?

SEPTEMBER 16, 2010  

Twitter more likely to induce advocacy and future purchases

Marketers looking to push out the most effective messages to opt-in recipients must understand how audiences differ across channels and what causes them to connect with brands. Marketing venues that seem similar may differ strongly if their users have different needs and motivations.

According to the final edition of ExactTarget’s “Subscribers, Fans and Followers” report, the differences between email, Facebook and Twitter also include their influence on customer loyalty.

Daily Twitter users who followed a brand were more than twice as likely as daily Facebook users who “liked” a brand to say they were more likely to purchase from the brand after becoming a social media follower. What’s more, Facebook fans were the most likely group to actively disagree with the question. Subscribers to opt-in marketing emails fell in the middle.

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The pattern among Twitter followers, email subscribers and Facebook fans was similar when asked about whether they would recommend a brand. A third of Twitter followers said they were more apt to make a recommendation now that they followed a brand, compared with 24% of email subscribers and 21% of Facebook fans. Again, those who “liked” a brand on Facebook were most likely to actively disagree with the statement.

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A February 2010 survey by Chadwick Martin Bailey also found that Twitter followers were more likely than Facebook fans to say they had an increased chance of buying or recommending the brands they connected with in social media.

These factors make Twitter followers attractive to marketers, but as the ExactTarget report notes, because of Twitter’s much smaller user base just 3% of US internet users follow a brand through the microblogging service. Those who do follow brands on Twitter are likely to be influencers in general, while Facebook users are more like the average consumer. And since Facebook users often become brand fans on the site because they are already fans in real life and want to use the brand as part of their self-image, it may be more difficult for them to actually increase their spending or advocate for the brand more than they did before “liking.”

Keep your business ahead of the digital curve. Learn more about becoming an eMarketer Total Access client today.

Check out today’s other article, “Email Retargeting to More Than Double.”  

 

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Mobile Social Networking Drives Rising App Usage

Mobile Social Networking Drives Rising App Usage

JUNE 17, 2010

240% increase in social networking app access

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As smartphone usage grows, users are also becoming more sophisticated and using apps at a higher rate. According to comScore’s MobiLens study, the total number of mobile app users in the US increased by 28% from April 2009 to April 2010.

Several app categories saw usage grow much faster. Social networking apps grew their user base by 240% during the period, to more than 14.5 million mobile users. Other categories boasted even more users, including weather apps at more than 18 million and maps at about 16.8 million.

Fastest-Growing US Mobile Application Categories, April 2009 & April 2010 (thousands of unique users and % change)

Social networking was also the fastest-growing mobile content category when it came to browser access, with nearly 30 million mobile users visiting the sites through mobile browsers.

“Social networking is by far the fastest-growing mobile activity right now,” said Mark Donovan, comScore senior vice president of mobile, in a statement. “With 20 percent of mobile users now accessing social networking sites via their phone, we expect to see both application and browser usage continuing to drive future consumption of social media.”

The most-used app across nearly all smartphone operating systems also falls into the social networking category. The top social Website, Facebook, is entrenched as the most widely used app by owners of BlackBerrys, iPhones and other smartphones. Only users of Google’s Android operating system are more likely to use Google Maps than Facebook.

Top 5 Mobile Apps in the US, by Operating System, 2010 (% of respondents)

Other top apps across operating systems included offerings in the fast-growing and highly popular weather and maps categories.

Keep your business ahead of the digital curve. Learn more about becoming an eMarketer Total Access client today.

Check out today’s other article, “Agencies: Targeting Boosts Display Spend.”