An insight into the daily life of a mobile commerce user
Alistair Hill, CEO of On Device Research, says mobile brings advertisers and users closer to real world commerce transactions, providing the opportunity to bring mobile advertising CPMs in line with online CPMs…
Technology is providing us with more real-time / real-world information and this in turn provides a whole new level of commerce opportunities for potential advertisers. However monetisation via mobile is hard, and understanding how mobile phone behaviour links to bricks-and-mortar shopping is key to success.
To understand m:commerce behaviour in more detail, research conducted by On Device Research for the IAB in the US, used a diary methodology gathering mobile phone users to create detailed “day in the life” diaries.
Mobile usage in-store:
Mobile is increasingly being used by consumers in the retail environment, with 76% of m:commerce users having used their mobile in-store. One of the key reasons for this is to check prices (34%) and over half have actually stopped a purchase in store as a result of using their mobile.
Interestingly 34% have also used their mobile in-store to send pictures of a product to others, and the ability to share images in the moment and gain instant feedback can have a major impact on the purchase decision making process.
As consumers strive to find the best price in these tough economic times, free Wi-Fi in-store is one way that retailers can help to build a relationship with their customers – another report from On Device Research found that 78% would use a store Wi-Fi if this service was offered. Price transparency promotes trust between retailers and customers.
In home m:commerce:
The home is also a key place for m:commerce activity with 47% of encounters taking place. Researching products (57%) and actual purchasing (35%) are the top mobile activities carried out.
Over two thirds also using other media at the same time as conducting m:commerce – 49% of those who conducted m:commerce did so with TV as an additional media screen. This additional screen offers a clear opportunity for brands and advertisers to encourage consumers to interact further with the content they are consuming.
M:commerce is an activity that is not just confined to the living room, with 20% of m:commerce encounters happening in the bedroom, 8% in the kitchen/garden – the mentality – ‘I can purchase anywhere’ can only have a positive effect on m:commerce behaviour.
Mobile Advertising
Mobile advertising (22%) is a key driver of m:commerce and is welcomed by the majority of consumers, with 70% viewing mobile ads as a personal invitation as opposed to an invasion.
Personalising mobile ads is one way to engage consumers with 30% stating they like it when ads are personalised to them. Ads based on a mobile users location, and ads from their favourite brands and just some of the ways to make mobile advertising more relevant.
Mobile advertising should also give consumers more than just a ‘check out’ with only 7% wanting to be taken straight to the check-out page. The majority (40%) want mobile ads they click on to allow them to browse the brand/company’s broader product offering and 28% want to learn more about the brand/product being advertised. This not only allows consumers to make a more informed purchase decision, but is a chance for advertisers to communicate their full offering.
Across a month 38% purchased items over $21, with purchasing peaking late afternoon/early evening. Other than digital content, clothing, entertainment and consumer electronic are the top categories for m:commerce, this is especially true for early adopters whose propensity to purchase via their mobile is higher.
So what is the driving force behind m:commerce behaviour? Convenience (24%) and saving money (20%) were the biggest motivations – they have their mobile switched on and it’s usually with them all the time.
The future
As m:commerce continues to evolve, there is a huge opportunity for brands to use mobile to disrupt the advertising landscape, with interactive mobile advertising, mobile coupons and loyalty schemes just some of the future considerations.
To download the full report, please visit On Device Research’s blog: ondeviceresearch.com/blog