2015 mobile consumer survey

2015 Mobile Consumer SurveyPresented by The On-Demand Economy

2The On-Demand Economy 2015 Mobile Consumer Survey

@ondemandeconomy www.theondemandeconomy.org

ABOUT THIS REPORT

The On-Demand Economy is a group of executives dedicated to the advancement

of the commerce based solutions that make day to day life simpler and more

efficient. We serve as an unbiased platform where stakeholders can interact with

industry leaders, collaborate with like-minded businesses, address collective

issues, and access research. This group and its participants are helping to shape

one of the defining trends of this decade - evolving consumer experiences and

expectations in a mobile-first world.

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17 QUESTIONS 1,348 PEOPLE10 DAYS

ABOUT THIS REPORT

Mobile businesses are rapidly changing industries, cities, and the expectations of

consumers. In order to better understand these evolving consumer preferences

and behaviors, we sampled US mobile smartphone owners across different

operating systems, cities, age groups, and genders in May 2015.

The distribution of survey participants was carefully constructed in collaboration

with Survata to capture as close to a census representative sample as possible of

mobile consumers in some of the most technologically forward cities in the US.


http://www.survata.com



ABOUT THIS REPORT

Distribution of Survey Respondents

3%

47% 50%iPhoneAndoidOther

22%

21%36%

21% 18-2425-3435-4445+

56%44%Male

Female

5%6%7%

11%

20% 26%

25% NYSFLACHIBOSMIADC

Operating Systems Age

LocationGender




• Mobile app developers are competing aggressively for installs, but the battle for users doesn’t stop there - only 1/4 of the apps installed on a smartphone are used each week (slide 8)

• Unpaid marketing channels are the most common means of discovery (slide 9)

• Smartphone owners are still hungry for great new apps (slide 10)

• Although not a primary means of discovery, mobile advertising is still an effective tool for promoting app awareness and installs (slide 11)

• Awareness levels of new on-demand services are still relatively low with the exception of Uber (slide 12)

• Penetration rates of different mobile commerce services differ by age, gender and location given the various value propositions and consumers needs (slide 13 & 14)

• We are in the midst of the next evolution in digital commerce: web -> mobile web -> apps (slide 15)

KEY TAKEAWAYS

Survey Highlights




• iOS users demonstrate higher purchasing activity than Android users (slide 16)

• Every consumer vertical needs to have a mobile strategy (slide 17)

• Offering a promotion / credit is an attractive value proposition to get a user to make their first purchase through a mobile app (slide 18)

• Appealing to the optimal mobile consumers is challenging as promotions / credits may get a first purchase, but do not necessarily change long term purchasing behavior or customer loyalty (slide 19)

• On-demand services are just beginning to hit their stride, and the market opportunity is massive (slide 20)

KEY TAKEAWAYS

Survey Highlights




• On-demand services will continue to grow at unprecedented rates as awareness improves and more consumers adopt mobile commerce for their daily needs

• New businesses will address niche markets in “mature” MSAs where demand is concentrated and mobile purchasing behaviors are well engrained

• Aided by the playbook of Uber and Airbnb, new on-demand sectors should reach scale rapidly

• Consolidation will accelerate as competition grows

• Collaboration between complementary, non-competitive businesses will become commonplace

• Legacy providers will attempt to “partner with” or “acquire” more innovative on-demand companies

• The user interface will be the next battleground as companies solve for the current technical (great user experiences) and logistical (infrastructure and scale) challenges

KEY TAKEAWAYS

The Future of The On-Demand Economy




Consumers use only 1/4 of the number of apps on their phone each week

MOBILE APP ENGAGEMENT

Distribution of Apps Installed

Distribution of Apps Used per Week

Smartphone owners have dozens of apps, but use only a select few of the apps they have installed on a weekly basis

(n=1,348) (n=1,348)

6%9%

27%

43%

15%<1515-2930-4445-5960+

5%9%

32%41%

13%<55-910-1415-1920+

Distribution of Apps Installed and Used per Week




Unpaid marketing channels are still the most common means of app discovery

4%5%

13%13%

30%

35%

Unpaid channels account for almost 65% of the responses when consumers were asked about their primary means of discovering new apps

MOBILE APP DISCOVERY

App Store / Google Play

Recommendation from a friend Facebook Non-digital

advertising Mobile ads Twitter

Unpaid Marketing Paid Marketing

Distribution of Responses by the Primary Means of Discovering New Apps




The demand for new apps remains very high as over 50% of respondents felt that they were missing out on great new services

40%47%

60%53%

Are missing out on new appsAre not missing out on new apps

37%49%

63%51%

44%57%

56%43%

54%48%

46%52%

The eagerness for great new apps is even more pronounced in young men (<35 years old)

Women Men Women Men Women Men Women Men

(n=280)

18-24

(n=477)

25-34

(n=288)

35-44

(n=298)

45+

Distribution of Responses to Whether Consumers Felt Like They Were Missing out on Great New Apps





Despite its flaws, the majority of consumers continue to engage with mobile advertising

MOBILE APP ADVERTISING

% smartphone users who have intentionally clickedon a mobile ad for an app

(n=1,348)

57%




Awareness of these services is still low, with the exception of Uber. Growth opportunities are abound.

Uber is by far the best known on-demand service followed by GrubHub and OpenTable

Uber AirbnbGrubHub FreshDirectOpenTable85% 43%45% 43%

Care.com36%

5%25% 13% 6%16%

27%

13%Eventbrite Hotel Tonight Instacart Postmates Handy Drizly





Women are more likely to be aware of Eventbrite and Care.com

Men are more likely to be aware of Hotel Tonight and Drizly

25-34 year olds are more likely to be aware of Handy and Postmates

Awareness levels were also influenced by the demographic profile of the respondent





Uber has extremely high awareness in LA and CHI; it is least recognized in MIA and DC

Instacart was slightly better known in SF, while FreshDirect is more well known in most other markets (BOS, CHI, LA, DC, MIA and especially NYC)

Seamless / Grubhub have a smaller market presence in SF and MIA, while the majority of respondents in NYC and DC were aware of the service

Furthermore, the location of each respondent was another determinant of awareness levels





While almost 50% of users have purchased through an app, adoption of apps for consumption still lags behind mobile web browser and desktop

MOBILE COMMERCE

% that have purchased through acomputer web browser

% that have purchased through a smartphone web browser

% that have purchased through amobile app that they installed

93% 68% 46%

(n=1,348)(n=1,348) (n=1,348)




iPhone users are more likely to have made a purchase on a mobile app

33% YES

67% NO

42% YES

58% NO

51% YES

49% NO

iPhone was the only operating system in which the majority of users had made purchase through a mobile app

(n=673) (n=639) (n=36)

Distribution of Users who Have Purchased through a Mobile App by Operating System

MOBILE COMMERCE




Mobile consumers use apps to make purchases across a variety of different verticals

5%7%

23%

34%

44%50%50%52%

56%58%

79%

Retail / Shopping

Tickets / Events

Food Delivery

Car /Taxi

Hotel Dining AirlinesHealth and

BeautyGrocery Delivery

Liquor Delivery

Handyman /Cleaning(n=622)

The majority of users who have purchased through an app have used them for retail and shopping, ticketing, food delivery, and transportation

% of Mobile App Purchasers that Have Purchased within these Specific Categories

MOBILE COMMERCE




People who have not made a purchase on a mobile app would be most inclined to do so if offered a promotion or discount

18%

34%34%37%

55%

Promotion / Discount

Recommended by a friend Saves Time Comparable

PriceAccess to Premium Goods or Services

(n=726)

Distribution of Respondents based on the Potential Reasons They Would Consider Making Their First Purchase through a Mobile App

Mobile commerce apps should be considerate of how to align their value proposition(s) to the fairly diverse demands of mobile smartphone owners

MOBILE COMMERCE




MOBILE COMMERCE

The reason respondents chose to make a purchase through an app is also correlated with the frequency of mobile commerce activity

Frequency of Mobile Commerce Activity Giventhe Reason for Using a Mobile App to Purchase a Good / Service

HighestFrequency

AverageFrequency

LowFrequency

Received aPromotion / Credit

Wanted to Purchase Something

Immediately

Access to Premium Goods &

Services

Enjoy Trying Cool New Tech

Recommended by a Friend

Consumers who stated that they adopted apps to purchase goods / services because they “Enjoy Trying Cool New Tech” are likely to purchase with the highest frequency while those who did so

because they “Received a Promotion / Credit” are not likely to purchase very often




MOBILE COMMERCE

IndustryGround

Transportation Dining Grocery Travel Family Care Pet Care

US TAM ($B) $1,100* $660 $603 $80 $90 $55

Online Penetration Rate (%) <5% <10% <2% <20% <1% <1%

Representative On-Demand Business

Gross Margins (% of Rev for Representative On-Demand Businees)

20-25% 10-15% 25% 10-12% 60-80% 15%

Mobile Transactions (% of Rev for Representative On-Demand Business)

100% 45% 25% 25% 40% 80%

The market potential for on-demand services is enormous

Sources: TechCrunch, Business Week, Bureau of Economic Analysis, National Restaurant Association, Forbes, Bill Gurley, The Detroit Bureau, Skift, PhoCusWright, American Pet Products Association, GrubHub, IESE, Rocket Financial, RetailWire, Expedia, Care.com, PandoDaily, DogVacay, Peapod, HighTable*Based on estimates by Bill Gurley and market figures on the total US Automotive industry




ABOUT THIS REPORT

For the full 2015 Mobile Consumer Report contact us at [email protected]

or check out our website at www.theondemandeconomy.org.

Powered by the on-demand fanatics at Button and our friends


mailto:[email protected]
