mobile phone shopping diaries final 100512

Mobile Phone Shopping Diaries An On Device Research study for the IAB

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

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

Stage 1: Pre Survey

Screening

Stage 2: Mobile Commerce Diary

What did? Why? How feel? Where? Other media?

Stage 3: Post Follow Up

Understanding motivations

Attitudes towards mobile advertising

Future scoping

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.

28%

18%

12% 9%

5% 4% 3%

Findproduct/service

info

Searched for astore location

Compared prices Purchase digitalcontent

Purchased non-digital item

Checked statuson auction site

Used mobilecoupons

% E

ncou

nter

s

Which (mobile commerce) activity did you just use your mobile phone for?

Country: US Date: April/May 2012 Base: Total respondents (260)

Significantly higher/lower. Tested at 95% confidence interval.

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.

24%

22%

21%

21%

20%

16%

11%

10%

10%

It's the easiest way for me to do it

A mobile ad

Something I planned to do

Boredom/filling time

To find the best deal

Research for a future purchase

To get something immediately/didn't want to wait

Recommendation from a friend/family

The offer was too good to refuse

% of Encounters

What made you do this? (mobile commerce activity)



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.

Follow Up Survey: Important factors versus Most important factor

Mos

t Im

port

ant F

acto

r

Important Factors

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.

76%

38% 34% 33% 31% 27% 23% 21%

80%

46% 46% 44% 41% 39% 27% 27%

Group digitalcategories

Clothing Entertainmentactivities

(restaurant,movies)

Consumerelectronics

Health andBeauty

Food andGrocery

Furniture andother

housewares

Tickets (events,travel)

% M

obile

Com

mer

ce U

sers

Top Categories For Mobile Commerce Usage

Total Early adopters



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.

I don't make purchases on my mobile, 30%

$1 to $20, 32%

$21 to $40, 12%

$41 to $60, 16%

Over $61, 10%

On an average month, how much do you spend on purchases via your mobile phone?



Physical Goods versus

Digital Goods

NEW SECTION



Protection and having a specific retail app gain importance amongst those who purchase physical goods.

Ord

er o

f Im

port

ance

Post Survey: And which ONE is the most important to you? Please select one answer only

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.



0%

5%

10%

15%

20%

25%

30%

35%

40%

1am-3am nighttime

4am - 6 amearly morning

7am - 9ammorning

10am noon latemorning

1pm - 3omearly afternoon

4pm - 6pmafternoon

7pm - 9pmearly evening

10pm -midnight late

eveningTotal

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.



0%

5%

10%

15%

20%

25%

30%

35%

40%

1am-3am nighttime

4am - 6 amearly morning

7am - 9ammorning

10am noon latemorning

1pm - 3omearly afternoon

4pm - 6pmafternoon

7pm - 9pmearly evening

10pm -midnight late

eveningCompare prices Purchase

47% of mobile commerce actions occurred at home.



Diary Stage: Where were you?

At Home:

47%

At Work: 10%

Out and About:

29%

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

57%

29%

37% 35%

19%

49%

30% 26%

0%

10%

20%

30%

40%

50%

60%

70%

Find information on aproduct/service

Searched for a store location Checked/compared prices Purchase Any Item

Where people use Mobile Commerce By Activity

At home Group out and about



64% use other media at the same time as mobile commerce



Diary Stage: And were you using/looking at any other media at the same time?

36%

64%

No Yes

TV 36%

Phone (talking)

16%

Desk/ Laptop

10%

Radio 7%

Newspaper 5%

Magazine 4%

36% of mobile commerce encounters are whilst consumers are watching TV

A closer look at In Home Mobile Commerce.

Where in the home? What are they doing?

What media are they using?

NEW SECTION

61% of In Home commerce takes place in the front room/lounge. 20% in the bedroom.




At Home:

47%

In which room ?

Front room/Lounge 61%

Bedroom 20%

Kitchen 8%

Garden/patio etc 8%

Bathroom 1%

Other rooms 2%

49% of In Home commerce interactions occur with the presence of TV.




At Home:

47%

What media?

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?: Couldnt find store How feel?: Helped make best decision

Where?: Living room Other media?: TV

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

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

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

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)

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

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

In-Store Mobile Experience

49%

34% 34%

20% 15% 15% 14% 14% 13%

9%

24%

0%

10%

20%

30%

40%

50%

60%

Call/textfamily

member foradvice

Check prices Takingpicture/s ofproduct tosend to a

friend/familymember

Check foranother store

in the area

Checkproductreviews

Fill timewhen waitingto check out

Check forlocation deals

Showshop/store

assistant theitem you are

after

Scan barcodeon

product/adfor

information

To checkopening

times

I have notused my

mobile phonewhile

shopping instore

Have you used your mobile phone when shopping in a store in the past 3 months? if so, what for?

73% 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



53% have stopped a purchase in store as a result of using their mobile

Finding a better price is the key reason behind this.



47%

53%

No Yes 11%

11%

11%

13%

21%

30%

38%

Couldn't find info on product was planning topurchase

Bought a similar item instead

Saw a negative review about the product

Product was out of stock/not available

Found a better item online

Found a better price online

Found a better price in another store

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?

Mobile Commerce Case Studies

A day in the life of Mobile Commerce 25 to 34, female, Near Atlanta



A day in the life of Mobile Commerce 25 to 34, female, Near Atlanta



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

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)

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

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

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

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

Mobile Commerce and Advertising

NEW SECTION

At 22%, Mobile Advertising is the second highest driver

of mobile commerce.

What are consumers perceptions of mobile advertising?

What opportunities exist?

As we saw on slide 9

70% view mobile ads as a personal invitation This reflects a clear opportunity for brands and advertisers alike to engage

consumers.



Mobile Advertising is welcomed by consumers.

70%

30%

Which of the following is closer to your view of ads on your mobile/smartphone?

A personal invitation A personal invasion

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.



Mobile advertising should give consumers more than just a check out

25% 20%

40% 51%

28% 24%

7% 4%

Total A personal invitation

Click to buy: I want to be taken straightthrough to the check-out page

Click to learn: I want to see more detailson the exact product in the advertisement

Click to browse: I want to see a pageshowing a whole range of similar productsfrom the same company

Click to explore: I want to start at thehomepage of the company

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.



Relevance and permission are key if advertisers are to personalise advertising for consumers.

30% 27%

22% 21%

37%

24%

14%

24%

0%

10%

20%

30%

40%

I like that theyre relevant to me They are ok, but only if I have givenmy permission to receive them

I dont like them too much of my personal information is being

shared

It makes no different that theyre personalised theyre just like any

other ad

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)?




Location, favourite brands and previous site history are the starting blocks for relevant mobile advertising.

10%

13%

17%

19%

19%

23%

20%

27%

27%

27%

14%

11%

15%

16%

18%

21%

21%

24%

26%

28%

None of these

Your daily routine

Your recent online purchases

Your recent TV/radio viewing

Information you have shared publicly via Facebook, Twitter

Your age/gender, whether you have kids, or other

Information you give the ad at the beginning

Sites you've visited online

Your favorite brands

Your location (city or neighbourhood)

Assuming advertising has to happen, which of the following ways to make ads more relevant to you would you be open to?


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.



31% 30% 29% 28% 26%

22%

0%

10%

20%

30%

40%

Proactive alerts to let meknow when products I

want or need areavailable or on sale

Ability to pay forsomething by phone and

pick it up in store

Better browsingexperience e.g Wifi or 4G

Mobile loyaltycards/scheme -rewards

for paying by phone

Better/more price andinformation comparisons

Mobile wallets -making iteasier to pay using my

phone

Thinking about the future of mobile commerce (searching/buying/booking products and services via your mobile phone) how would you like this to

progress?

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 [email protected]

Mobile Phone Shopping DiariesAn On Device Research study for the IAB May 2012ContentsMethodology and SampleMethodologyThe Mechanic is SimpleDay in the life of a mobile commerce userMobile enhances real world commerceConvenience and mobile advertising drives mobile commerce activitiesSaving money is the overwhelming factor that drives mobile commerceOther than digital content, clothing, entertainment and consumer electronic are the top categories for mobile commerce38% of mobile commerce users spend over $21 per month via their mobilePhysical Goods versus Digital Goods Protection and having a specific retail app gain importance amongst those who purchase physical goods.Use CasesMobile commerce starts early morning and continues throughout the day, peaking at late afternoon/early evening.Purchasing via mobile peaks in the late afternoon/early evening.47% of mobile commerce actions occurred at home.Product information is conducted at home, location searching whilst out and about64% use other media at the same time as mobile commerceA 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.49% of In Home commerce interactions occur with the presence of TV.A 25-34, female from NJ: How does she use her mobile in home for commerce?A 25-34, male from Florida: How does he use his mobile in home for commerce?In-Store Mobile Experience73% of mobile commerce users have used their mobile in-store53% have stopped a purchase in store as a result of using their mobileMobile Commerce Case StudiesA day in the life of Mobile Commerce 25 to 34, female, Near AtlantaA day in the life of Mobile Commerce 25 to 34, female, Near AtlantaMobile Commerce and AdvertisingAt 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.Mobile advertising should give consumers more than just a check outRelevance and permission are key if advertisers are to personalise advertising for consumers.Location, favourite brands and previous site history are the starting blocks for relevant mobile advertising.31% state that they would like proactive alerts of products they want/need.Mobile Commerce is not just about digital downloads but is really linking digital marketing with real world commerceIn 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 phenomenonSome specifics on Mobile Commerce1) In Home Usage:61% of In Home Mobile Commerce occurs in the front room/loungeTV offers a clear opportunity as an additional screen 49% of those who conducted mobile commerce did so with TV as an additional media2) 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 outb) It must be relevant and consent must be soughtc) Location, favorite brands and previous site history are routes to make mobile advertising more relevant to consumersd) 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.

mobile phone shopping diaries final 100512

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