Day in the life of a Mobile Commerce User May 2012 Contents • Methodology • Day in the life of a Mobile Commerce User – What, Why and How • Uses cases: – Where and When – At home – In-Store Experience • Mobile commerce and advertising • Summary Methodology and Sample Methodology Stage 1: Pre Survey • Screening • • • • • • Stage 2: Mobile Commerce Diary Stage 3: Post Follow Up • What did? • Why? • How feel? • Where? • Other media? • Understanding motivations • Attitudes towards mobile advertising • Future scoping Using our US panel, we contacted 260 respondents, who opted in to take part in a 3 stage diary project, lasting a total of 2 weeks. All respondents recruited owned either a Smartphone or Feature phone. The focus of the report was on mobile phone based commerce, excluding tablet based mobile commerce. Stage 1: Respondents were pre screened on demographics and mobile commerce behaviour to ensure the sample gathered was relevant and responsive. Stage 2: The successful 260 pre screened respondents were tasked using their mobile to check in, over a period of 1 week, whenever they used their mobile phone for commerce. Mobile commerce was described to respondents as: Searching for products or services, Researching products or services, Purchasing/ordering products or services and Checking prices Stage 3: All respondents then completed a follow up survey, which covered a range of topics from mobile commerce spend, mobile usage in store, attitudes towards mobile advertising and how they would like mobile commerce to progress in the future. Each respondent earned $10 for taking part The Mechanic is Simple 1. Mobile owners click a web link (looks like an app icon), or bookmark once they encounter a brand. 2. They then simply select which brand they have encountered, whilst also giving permission to take their GPS co-ordinates. Which activity? What made you do this? How feel as a result? Where were you? Using other media? Day in the life of a mobile commerce user Mobile enhances real world commerce • 28% of mobile commerce encounters are for finding product information • 18% are for finding store locations, whilst 12% are for comparing prices. • Combined together it shows that mobile commerce is linking real world commerce to digital marketing. • 9% of mobile commerce encounters are for purchasing digital content (apps) and 5% of encounters are for purchasing other items, such as physical items and tickets. Which (mobile commerce) activity did you just use your mobile phone for? % Encounters 28% 18% 12% 9% 5% 4% Find Searched for a Compared prices Purchase digital Purchased non- Checked status product/service store location content digital item on auction site info Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval. 3% Used mobile coupons Convenience and mobile advertising drives mobile commerce activities • When asked why consumers carried out a particular mobile commerce activity, ‘the easiest way’ was the most popular activity. • Mobile advertising is the second highest driver. • Finding the best deal also comes through. What made you do this? (mobile commerce activity) The offer was too good to refuse 10% Recommendation from a friend/family 10% To get something immediately/didn't want to wait Research for a future purchase 11% 16% To find the best deal 20% Boredom/filling time 21% Something I planned to do 21% A mobile ad 22% It's the easiest way for me to do it 24% % of Encounters Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval. Saving money is the overwhelming factor that drives mobile commerce • Follow up survey also showed that mobile commerce is about convenience and getting the best deal. Most Important Factor Follow Up Survey: Important factors versus Most important factor Important Factors Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval. Other than digital content, clothing, entertainment and consumer electronic are the top categories for mobile commerce • For early adopters, a potential glimpse into the future, there is only a slight increase in their usage of digital content usage. • For other categories, such clothing and entertainment, there is a significant increase in usage. This suggests that this is where the growth in mobile commerce (and therefore mobile advertising) will come from. % Mobile Commerce Users Top Categories For Mobile Commerce Usage 76% 80% 38% Group digital categories 46% Clothing 46% 34% Entertainment activities (restaurant, movies) 44% 33% Consumer electronics Total Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval. 41% 31% Health and Beauty Early adopters 39% 27% Food and Grocery 23% 27% 21% 27% Furniture and Tickets (events, other travel) housewares 38% of mobile commerce users spend over $21 per month via their mobile • Although mobile commerce spending is still relatively small however 38% have purchased items over $21 per month. • 78% of those who have purchased via their mobile have done so using a credit or debit card. On an average month, how much do you spend on purchases via your mobile phone? Over $61, 10% I don't make purchases on my mobile, 30% $41 to $60, 16% $21 to $40, 12% $1 to $20, 32% Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval. NEW SECTION Physical Goods versus Digital Goods Protection and having a specific retail app gain importance amongst those who purchase physical goods. Order of Importance Post Survey: And which ONE is the most important to you? Please select one answer only Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval. Use Cases Mobile commerce starts early morning and continues throughout the day, peaking at late afternoon/early evening. • It would appear that consumers begin commerce activities on their commute. 40% 35% 30% 25% 20% 15% 10% 5% 0% 1am-3am night 4am - 6 am time early morning 7am - 9am morning 10am noon late 1pm - 3om morning early afternoon Total Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval. 4pm - 6pm afternoon 7pm - 9pm early evening 10pm midnight late evening Purchasing via mobile peaks in the late afternoon/early evening. • However pricing checking and comparisons peak in the early afternoon when people are more likely to be out and about. 40% 35% 30% 25% 20% 15% 10% 5% 0% 1am-3am night 4am - 6 am time early morning 7am - 9am morning 10am noon late 1pm - 3om morning early afternoon Compare prices Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval. Purchase 4pm - 6pm afternoon 7pm - 9pm early evening 10pm midnight late evening 47% of mobile commerce actions occurred at home. Diary Stage: Where were you? At Home: 47% Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval. Out and About: 29% At Work: 10% Product information is conducted at home, location searching whilst out and about • 11% of price checking encounters where in the retail environment • 21% of mobile purchasing encounters were at work Where people use Mobile Commerce – By Activity 70% 57% 60% 49% 50% 37% 40% 30% 29% 30% 35% 26% 19% 20% 10% 0% Find information on a product/service Searched for a store location At home Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval. Checked/compared prices Group out and about Purchase Any Item 64% use other media at the same time as mobile commerce • 36% of mobile commerce encounters are whilst consumers are watching TV Diary Stage: And were you using/looking at any other media at the same time? TV 36% 64% Desk/ Laptop 10% 36% No Newspaper 5% Yes Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval. Phone (talking) 16% Radio 7% Magazine 4% NEW SECTION A closer look at In Home Mobile Commerce. Where in the home? What are they doing? What media are they using? 61% of In Home commerce takes place in the front room/lounge. 20% in the bedroom. Diary Stage: Where were you? In which room ? Front room/Lounge Bedroom At Home: 47% Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval. 61% 20% Kitchen 8% Garden/patio etc 8% Bathroom 1% Other rooms 2% 49% of In Home commerce interactions occur with the presence of TV. Diary Stage: Where were you? What media? At Home: 47% Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval. TV 49% Phone (talking) 13% Desktop/laptop 6% Radio 4% Press 4% Tablet 3% Other 4% No, none of these 31% A 25-34, female from NJ: How does she use her mobile in home for commerce? 1st In Home Commerce Activity: 18/04/12 What?: Find store location What made her do this?: Couldn’t find store How feel?: Helped make best decision Where?: Living room Other media?: TV 6th In Home Commerce Activity: 20/04/12 What?: Scanned UCP to receive points from app What made her do this? Offer too good to refuse How feel?: Entertained/amused Where?: Kitchen 5th In Home Commerce Activity: 19/04/12 What?: Purchased an item What made her do this? Boredom How feel?: Got best price Where?: Living room Other media?: TV Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval. 2nd In Home Commerce Activity: 18/04/12 What?: Purchased digital content What made her do this?:Planned to do How feel?: Entertained/amused Where?: Patio Other media?: No other media 3rd In Home Commerce Activity: 18/04/12 What?: Scanned barcode on product/ad to get more info What made her do this?: Planned to do How feel?: Entertained/amused Where?: Living room Other media?: TV 4th In Home Commerce Activity: 19/04/12 What?: Scanned barcode to recover points for app What made her do this?: Offer too good to refuse Feel?: Entertained/amused Where?: Kitchen A 25-34, male from Florida: How does he use his mobile in home for commerce? 1st In Home Commerce Activity: 19/04/12 What?: Find info on product/service What made him do this?: Planned to do How feel?: Chose right brand/retailer Where?: Living room Other media?: TV, phone (talking) 5th In Home Commerce Activity: 22/04/12 What?: Searched for store location What made him do this?: Easiest way to do it Feel?: Easily find useful info Where?: Living room Other media?: TV Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval. 2nd In Home Commerce Activity: 19/04/12 What?: Check prices via browser What made him do this?:Easiest way to do it How feel?: Entertained/amused Where?: Kitchen Other media?: TV, phone (talking) 3rd In Home Commerce Activity: 20/04/12 What?: Used mobile coupons/vouchers What made him do this?: Recommendation friend/family How feel?: Help make best decision for me Where?: Living room Other media?: Radio 4th In Home Commerce Activity: 22/04/12 What?: Check prices via browser What made him do this?: Easiest way to do it Feel?: Easily find useful info Where?: Living room In-Store Mobile Experience 76% of mobile commerce users have used their mobile in-store • 34% use mobile for checking prices whilst in-store • 32% take photos to send to others – skewing towards females • 13% have scanned a barcode Have you used your mobile phone when shopping in a store in the past 3 months? if so, what for? 60% 50% 49% 40% 34% 34% 30% 24% 20% 20% 15% 15% 14% 14% 13% 10% 9% 0% Call/text Check prices Taking Check for family picture/s of another store member for product to in the area advice send to a friend/family member Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval. Check product reviews Fill time Check for Show Scan barcode when waitinglocation deals shop/store on to check out assistant the product/ad item you are for after information To check opening times I have not used my mobile phone while shopping in store 53% have stopped a purchase in store as a result of using their mobile • Finding a better price is the key reason behind this. Follow Up: Have you ever abandoned or stopped a purchase in store as a result of using your mobile phone in store? If so why? Found a better price in another store 38% Found a better price online 53% 30% Found a better item online Product was out of stock/not available 47% No Yes Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval. 21% 13% Saw a negative review about the product 11% Bought a similar item instead 11% Couldn't find info on product was planning to purchase 11% Mobile Commerce Case Studies A day in the life of Mobile Commerce – 25 to 34, female, Near Atlanta Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval. A day in the life of Mobile Commerce – 25 to 34, female, Near Atlanta 3rd Commerce Activity: 18/04/12 What?: Checked prices via app What made her do this?: Mobile ad, research for future, best deal, easiest way How feel?: Got best price, chose right brand/retailer Where?: In store/shop/mall Other media?: Poster/billboard 6th Commerce Activity: 20/04/12 What?: Purchased an item What made her do this? Easiest way How feel?: Got best price, chose right brand/retailer Where?: Out and about Other media?: TV, Poster/billboard, Tablet 5th Commerce Activity: 19/04/12 What?: Purchased digital item What made her do this? Planned to do How feel?: Got best price Where?: Out and about Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval. 2nd Commerce Activity: 16/04/12 What?: Bid/checked auction site What made her do this?:Offer too good, find best deal, easiest way How feel?: Got best price, improved retail experience, helped make best decision Where?: Out and about Other media?: Radio (driving) 1st Commerce Activity: 16/04/12 What?: Find info on product/service What made her do this?: Find the best deal How feel?: Saved time, helped make best decision, easily find useful information Where?: Travelling (short trip) Other media?: In store promotion 4th Commerce Activity: 19/04/12 What?: Purchase item What made her do this?: Recommendation, best deal Feel?: Best price, improved retail experience Where?: At work Other media?: Desktop/laptop NEW SECTION Mobile Commerce and Advertising As we saw on slide 9… At 22%, Mobile Advertising is the second highest driver of mobile commerce. What are consumers perceptions of mobile advertising? What opportunities exist? Mobile Advertising is welcomed by consumers. • 70% view mobile ads as a personal invitation • This reflects a clear opportunity for brands and advertisers alike to engage consumers. Which of the following is closer to your view of ads on your mobile/smartphone? 30% 70% A personal invitation Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval. A personal invasion Mobile advertising should give consumers more than just a ‘check out’ • 40% want mobile ads they click on to allow them to browse the brand/company's broader product offering. • 28% want to learn more about the brand/product being advertised. • 51% of those who see mobile ads as an invitation, want to browse further. Click to buy: I want to be taken straight through to the check-out page Click to learn: I want to see more details on the exact product in the advertisement Click to browse: I want to see a page showing a whole range of similar products from the same company 7% 28% Significantly higher/lower. Tested at 95% confidence interval. 24% 40% 51% 25% 20% Total A personal invitation Click to explore: I want to start at the homepage of the company Country: US Date: April/May 2012 Base: Total respondents (260) 4% Relevance and permission are key if advertisers are to personalise advertising for consumers. • 30% state they like the fact that ads are personalised to them. • 27% feel personalised ads are ok, as long as they have given their permission to receive them. How do you feel about ads that are personalized to you (ie. based on anonymous information about where you are, your age/gender or other characteristics, etc)? 37% 40% 30% 30% 27% 24% 22% 20% 21% 24% 14% 10% 0% I like that they’re relevant to me They are ok, but only if I have given I don’t like them – too much of my It makes no different that they’re my permission to receive them personal information is being personalised – they’re just like any shared other ad Total Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval. A personal invitation Location, favourite brands and previous site history are the starting blocks for relevant mobile advertising. Assuming advertising has to happen, which of the following ways to make ads more relevant to you would you be open to? 28% 27% Your location (city or neighbourhood) Your favorite brands 26% 27% Sites you've visited online 24% 27% 21% 20% Information you give the “ad” at the beginning 21% 23% Your age/gender, whether you have kids, or other… 18% 19% Information you have shared publicly via Facebook, Twitter… 16% 19% Your recent TV/radio viewing 15% 17% Your recent online purchases Your daily routine None of these Total Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval. 11% 13% 10% 14% A personal invitation 31% state that they would like proactive alerts of products they want/need. • 30% would like to pay for something via phone and then pick it up in store. • 29% want a better browsing experience. 40% Thinking about the future of mobile commerce (searching/buying/booking products and services via your mobile phone) how would you like this to progress? 31% 30% 30% 29% 28% 26% 22% 20% 10% 0% Proactive alerts to let me Ability to pay for Better browsing Mobile loyalty Better/more price and Mobile wallets -making it know when products I something by phone and experience e.g Wifi or 4G cards/scheme -rewards information comparisons easier to pay using my want or need are pick it up in store for paying by phone phone available or on sale Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval. Mobile Commerce is not just about digital downloads but is really linking digital marketing with real world commerce In tough economic times consumers are searching for the best deal. The mobile internet is allowing consumers to search and find this in the best price in the best location, be that on mobile or in the physical retail store. This leaves retailers with no where to hide, giving consumers true price transparency. Mobile advertising is a huge influencer in this new phenomenon Some specifics on Mobile Commerce 1) In Home Usage: 61% of In Home Mobile Commerce occurs in the front room/lounge TV offers a clear opportunity as an additional screen – 49% of those who conducted mobile commerce did so with TV as an additional media 2) Mobile Commerce and Advertising Mobile advertising is a key driver of mobile commerce and is welcomed by the majority of consumers, BUT: a) It must give consumers more than just a ‘check out’ b) It must be relevant and consent must be sought c) Location, favorite brands and previous site history are routes to make mobile advertising more relevant to consumers d) Future looking, consumers want a mix of features and function proactive alerts, the ability to buy via phone and pick up in store and a better browsing experience. On Device Research alistair@ondeviceresearch.com