the mobile path-to-purchase in saudi arabia

LONDON - SINGAPORE - DUBAI

OnDeviceResearch.com LONDON - SINGAPORE - DUBAI

OnDeviceResearch.com

November 2016

The mobile path-to-purchase in Saudi ArabiaKey planning implications for marketers



Now is the time to understand the mobile path-to-purchase!

It is estimated that by the end of 2016, 70.5% of the Saudi Arabian population will own a smartphone, equating to nearly 20 million people.

Mobile has changed the way consumers behave both online and offline; it has changed how brands market themselves and in an increasingly fragmented media environment mobile throws up a whole new host of exciting planning implications and considerations that touch all areas of the marketing process.

These considerations impact all areas of the purchase funnel – a process which is now acknowledged to be far from linear in nature – yet for the purposes of this research has been condensed in to three key stages: brand awareness, research and purchase.

This survey aims to unpick how mobile fits in to the path to purchase at all stages in the funnel and to provide actionable recommendations for marketers and brands wanting to take advantage of the myriad opportunities afforded by mobile marketing.

Sample: 500 smartphone users

Fieldwork dates: 2nd to 14th November 2016

Source: eMarketer 2015




AWARENESS

RESEARCH AND DISCOVERY

PURCHASE

The path to purchase: a well trodden consumer journey from brand awareness, to product research, to purchase and order fulfilment




AWARENESS


PURCHASE



Mobile offers the frequency of usage to help brands build awareness

91% of smartphone owners use the mobile internet on a weekly basis (compared to second placed TV on 81%): more than any other form of media. Frequency of exposure to media and advertising builds awareness.

Base: All respondents, Question: How frequently do you access…

91%81%

77% 76%71%

55% 52%48%

% of users who access media at least once a week

Mobile Web TV Desktop Web On Demand TVOutdoor Radio Newspapers Magazines



Mobile is an embedded daily habitThe vast majority of mobile internet users are using it for more than two hours a day providing multiple micro-moments for brand contact via mobile advertising

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

67%

13%

8%3%

Frequency of access to the mobile web

NeverLess often than once a monthOnce a month2 - 3 times a monthOnce or twice a week3 - 6 times a weekLess than 2 hours a day

Base: All respondents, Question: How frequently do you access…



Three quarters of smartphone owners watch on demand TV at least once a week. Why? It’s just getting easier and easier….

Base: those who watch on demand TV. Question: Why do you watch On Demand TV / Video?

Reasons for watching on demand TV:27%: It’s easier27%: Can watch when I want21%: Quality of programmes



On Demand TV viewing is a truly cross device habit

But the smartphone dominates!

Base: All respondents. Question: How do you watch on demand TV / video

40% 38% 24% 14%

How do you watch on demand TV / video?




49%

Control their TV via a smartphone on a weekly basis

Not only are smartphone owners watching on demand TV on their mobile… they are controlling their TV via mobile too

Base: All respondents. Question: In the past 3 months have you controlled your TV via your smartphone




1. Frequency: Awareness driving and brand building campaigns are built on frequency of exposure. Nowhere can you drive frequency faster than with mobile. TV is no longer the medium of choice and marketers should think beyond traditional channels in their strategic planning.

2. On demand TV: Awareness driving campaigns rely on reach. While still second to traditional TV in terms of frequency, on demand TV is a mass-media that cannot be ignored. Three quarters of smartphone users watch on demand services at least once a week.

3. The on demand mobile video opportunity: The smartphone is the most popular device for watching on demand TV. The confluence of mobile and on demand TV represents a still untapped opportunity for brands to achieve cut through in what is still a relatively nascent market.

Three key learnings for driving brand awareness on mobile




AWARENESS


PURCHASE




When it comes to researching products to buy the smartphone even beats word of mouth!

Recommendations from friends and family have been supplanted by the smartphone as the channel of choice for product research. The power of physically looking at an item in store should not be overlooked though.

Base: all respondents. :

Talk to friends and

family

26%

Use social media

21%

Go in to store to look at

items

24%

Read information on my smartphone

27%

1st 2nd 3rd 4th

Question: When researching a product or service to buy, how do you do it?



So what information are people looking for on their smartphone?

Base: all respondents

Find out if the product is in an alternative shop

Check product availability

Find out where an alternative store is

Read product reviews

Check product information

Check prices

16%

16%

17%

22%

25%

33%

When in a store or mall in the past three months have you used your smartphone to…

78% of smartphone users are “showrooming” – i.e. taking at least one of the actions below to enhance their physical shopping experience digitally



Second screening is a very real phenomenon. Traditional media and digital media can combine to drive product research

23%

of smartphone owners have looked up something on their phone which relates to TV adverts they are watching

Base: all respondents. Question: When watching TV, do you ever:




A note of caution: can mobile replicate the physical and social aspects of in-store shopping?

I prefer to inspect the actual product I am buying: 41%Shopping in store makes returns and exchange easier: 28%Shopping in store or in a mall is more fun than online: 27%Shopping in store or in a mall is a sociable experience: 27%

Base: all respondents. Question: For which of these reasons would you shop in a store or mall rather than online? Top four reasons shown only




But then does it really matter if by researching online consumers are saving time?

Shopping online gives me more time to do what I want: 20%

Rising to 24% for those who have made a purchase via their smartphone in the last three months

Researching products is easier online than in store: 17%

Rising to 19% for those who have made a purchase via their smartphone in the last three months

Base: all respondents. Question: Which of these statements do you agree with in relation to shopping online? Selected answers shown only




1) The smartphone is the product research tool: In a world dominated by an abundance of choice, the smartphone plays a crucial role in keeping consumers informed. It is now the dominant method of product research – beating even word of mouth and visiting an actual store.

2) The rise of showrooming: Over three quarters of smartphone users are showrooming: enhancing their physical shopping experience with instant mobile information. Checking prices, product information and reviews are what consumers are looking for on the go while shopping in-store.

3) Multi-screening: The smartphone is a permanent fixture even when consuming other media. When planning TV creative, consider that just under a quarter of smartphone users search for content related to a TV ad on their smartphone

Three key learnings for driving product research on mobile




AWARENESS


PURCHASE



Consumers aren’t shy about making purchases on their smartphone

Base: all respondents; Question: What have you purchased on your smartphone in the past three months?

77%

Have purchased a product or service on their smartphone in the past three months




Convenience and time saving are the key drivers of purchase on smartphones. There is however, considerable untapped potential…

Shopping on my mobile phone saves me time: 20%Shopping on my mobile phone is convenient: 16%

Base: all respondents. Question: Which of these statements do you agree with in relation to shopping online?




Digital activity driving physical purchase fulfilment: a trend that can play out in more than one way

40% Have used a coupon or discount on a mobile phone when shopping instore

46% Of smartphone users make a purchase and have it delivered to them at least once a week

Base: all respondents. Questions: How often do you get items you have purchased delivered to your home or work? Have you ever used a coupon or discount on your mobile in-store?

11% Like to pay online and then collect in-store




A closer look at consumer goods and shopping habits



For female main shoppers the supermarket may dominate for food and household product shopping, but the smartphone isn’t far behind, with a quarter purchasing via mobile

Send someone else to do it (e.g. maid)

On the high street

On my smartphone

On my laptop or desktop computer

In a supermarket

In a shopping mall

24%

14%

25%

6%

58%

29%

Food / Grocery / Household

In the past 3 months, have you purchased any of these items in this way? Base: female main shoppers



The female main shopper is highly mobile savvy, both in terms of purchasing habits and media consumption

+ 10% points more likely to watch on demand TV on a smartphone than the average smartphone user (50% likely overall)

Base: females main shoppers

+ 7% points more likely to buy food / groceries / household products on a smartphone than the average smartphone user (25% likely overall)



Female main shoppers are keen “showroomers.” Even though they find online shopping easier than in-store, having physical contact with the products they buy when researching is highly important

+ 6% points more likely to “prefer to inspect the actual product in store before purchase” than average (47% agreement overall)

+ 8% points more likely than average to find gathering opinions online easier than in-store (25% agreement overall)

81% are “showrooming,” on their smartphone with finding products in alternative stores (19%) and findings locations of alternative stores (19%) key mobile activities when shopping

Online for opinion gathering

In-store for product experience

Smartphone for showrooming

Base: females main shoppers



Key considerations for retailers when faced with active mobile shoppers

Engage with them through a multiscreen strategy

+8% points more likely to look at their smartphone for related TV programme or ad content (81% of mobile purchasers overall)

They’re going to be comparing prices on their smartphone while in your store!

+4% points more likely to do so than average. 27% are comparing prices on their smartphone

Click and collect is a useful prompt for in-store visitation

+3% points more likely to use click and collect services than average. 14% are using click and collect

Base: Those who have made a purchase on their smartphone in the last three months




1. Mobile purchasing is mainstream: 77% have made a mobile purchase in the last three months. Time saving and convenience are key considerations and brands need to make sure they are fully mobile optimised to capitalise on the growth in m-commerce.

2. Mobile purchase drives offline activity: Coupon and discount codes are an indelible part of the consumer mindset. 40% of smartphone users have used discounts in store in the past three months.

3. An opportunity ripe for retail: Female main shoppers are highly likely to be using their smartphone to purchase groceries and household goods, but are also being driven in store to physically trial products that they have researched online. Supermarkets should not miss out on the opportunity to measure the impact that mobile advertising has on in store visitation

Three key learnings for driving product purchase on mobile




AWARENESS


PURCHASE

1. CONSIDER MOBILE IN THE MEDIA MIX: 91% of smartphone owners use the mobile internet on a weekly basis. More than any other form of media, including TV

2. ENSURE DISCOVERABILTY OF PRODUCT INFORMATION ONLINE: Smartphones are now the primary product research tool. A quarter of consumers are prompted to conduct mobile research by TV ads

3. MOBILE OPTIMIZATION FOR M-COMMERCE IS KEY: 77% have purchased a product or service on their smartphone in the past three months

Three key considerations on the mobile path to purchase




Thank you

For more information please contact:

Michael [email protected]