1. technology and computing
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4. mobile phones

OCTOBER 2013
eMarketer
Mobile Commerce Roundup
US retail mcommerce sales growth has been dramatic over the
past few years, albeit from a small base. But sales of products and
services made to digital buyers using mobile phones and tablets
will reach nearly $41 billion this year, or 16.0% of total retail ecommerce sales. eMarketer has curated a roundup of key trends,
statistics and information relevant to retailers who can no longer
ignore the mobile lives of digital shoppers.
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Mobile Commerce Roundup OCTOBER 2013
Mobile Commerce Roundup Overview
US retail mcommerce sales will reach nearly $41 billion this year, up a dramatic 68.2% over 2012 levels—
and that represents a drop in growth rates since 2011 and 2012. Continued robust double-digit growth will
lead to more than $113 billion in retail mcommerce sales in the US by 2017, eMarketer estimates.
Mcommerce already accounts for a sizeable share
of retail ecommerce sales in the country, at a
projected 16.0% this year, up from 11.0% in 2012. By
2016, one-quarter of all retail ecommerce sales will
be conducted on mobile devices, including mobile
phones and tablets.
Rising sales are being propelled by a growing
population of mobile buyers, which will number
79.5 million strong this year. That means more than
half of all digital buyers will make a purchase on a
mobile device this year, up from less than one in four
in 2011. By 2017, the vast majority of digital buyers
will be purchasing via mobile devices.
Purchasing via tablet has already become even
more popular than smartphone-based mcommerce:
Nearly nine in 10 mobile buyers this year will buy
something from their tablet, compared to about
two-thirds who will buy via smartphone.
US Retail Mcommerce Sales, 2011-2017
billions, % change and % of retail ecommerce sales
$113.57
171.7%
$96.81
$75.00
$56.72
82.6%
$41.68
$24.78
68.2%
11.0%
2012
16.0%
2013
36.1%
32.2%
29.1%
19.0%
22.0%
25.0%
2014
2015
2016
$13.57
7.0%
2011
26.0%
17.3%
2017
Retail mcommerce sales
% change
% of retail ecommerce sales
Note: includes products or services ordered using the internet via mobile
devices, regardless of the method of payment or fulfillment; excludes travel
and event ticket sales; includes sales on tablets
Source: eMarketer, Sep 2013
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US Mobile Buyers, by Device, 2011-2017
2011 2012 2013 2014 2015 2016 2017
Mobile buyers
(millions)
—% of digital buyers
Buyers on
smartphone (millions)
34.0
57.0
79.5
98.9 115.0 129.0 140.8
23.7% 38.2% 51.1% 61.1% 68.6% 74.1% 78.3%
26.2
41.3
52.3
63.5
74.0
83.2
91.0
—% of smartphone users 29.0% 35.0% 38.5% 41.0% 43.0% 44.5% 45.5%
—% of mobile buyers
77.2% 72.3% 65.8% 64.2% 64.4% 64.5% 64.6%
—% of digital buyers
18.3% 27.6% 33.6% 39.2% 44.1% 47.8% 50.6%
Buyers on tablet
(millions)
15.4
49.8
71.1
83.7
93.7 104.4 109.7
—% of tablet users
50.0% 58.0% 63.0% 68.0% 72.0% 77.0% 78.0%
—% of mobile buyers
45.4% 87.3% 89.4% 84.7% 81.5% 80.9% 77.9%
—% of digital buyers
10.8% 33.3% 45.7% 51.8% 55.9% 60.0% 61.0%
Note: ages 14+; mobile device users who have used their mobile device to
make at least one purchase via web browser or mobile app during the
calendar year
Source: eMarketer, Sep 2013
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Copyright ©2013 eMarketer, Inc. All rights reserved.2
Mobile Devices to Boost US Holiday Ecommerce Sales Growth
Mcommerce to increase its share of total ecommerce retail sales
Mobile devices account for a rapidly growing share of US retail ecommerce sales, and are expected to
contribute to strong ecommerce sales growth this holiday season, according to eMarketer’s latest estimates.
eMarketer projects that retail ecommerce holiday sales in the
US will rise about 15% again this year, matching last year’s
gains. In total, US retail ecommerce sales for the holiday
season—defined as November and December—are expected
to reach $61.8 billion, up from $53.7 billion last year.
Mcommerce is expected to play an important part in overall digital
holiday retail spending. This year, mobile devices will account
for a larger-than-expected share of total US retail ecommerce
sales, according to the newly revised forecast. eMarketer expects
that mobile’s share will reach 16% in 2013, up from our previous
prediction of a 15% mcommerce share this year.
The revision comes as data sets from multiple research
sources showed mcommerce as a percent of retail ecommerce
sales reached record highs earlier this year. In addition, large
retailers, such as Best Buy and Home Depot, continue to invest
heavily in smartphones and tablets, building out their mobile
app and website offerings, and increasing spending on digital
advertising in an effort to drive more conversions across
devices and compete with companies with strong mobile
infrastructure like Amazon and eBay.
In total, eMarketer predicts retail mcommerce sales will reach
$41.68 billion this year, and by 2017, retail sales made on
mobile devices will climb to well over $100 billion.
eMarketer believes mobile devices contribute to overall
commerce sales growth in two ways, both as a driver of
total sales, as more consumers make purchases on their
smartphones and tablets, and, increasingly, as a shopping
research tool, driving consumers into stores or back to
desktops where they complete transactions.
US Retail Ecommerce Holiday Season Sales, 2011-2013
billions and % change
$61.8
$53.7
$46.6
16.8%
15.2%
2011
2012
15.1%
2013
Retail ecommerce holiday season sales
% change
Note: eMarketer benchmarks its retail ecommerce sales figures against US
Department of Commerce data, for which the last full year measured was
2012; includes products or services ordered using the internet, regardless
of the method of payment or fulfillment; excludes travel and event tickets;
sales are for Nov and Dec of each year
Source: eMarketer, Sep 2013
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US Retail Mcommerce Sales, 2011-2017
billions, % change and % of retail ecommerce sales
$113.57
171.7%
$96.81
$75.00
$56.72
82.6%
$41.68
$24.78
68.2%
11.0%
2012
16.0%
2013
36.1%
32.2%
29.1%
19.0%
22.0%
25.0%
2014
2015
2016
$13.57
7.0%
2011
26.0%
17.3%
2017
Retail mcommerce sales
% change
% of retail ecommerce sales
Note: includes products or services ordered using the internet via mobile
devices, regardless of the method of payment or fulfillment; excludes travel
and event ticket sales; includes sales on tablets
Source: eMarketer, Sep 2013
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Copyright ©2013 eMarketer, Inc. All rights reserved.3
Mobile Devices to Boost US Holiday Ecommerce Sales Growth (continued)
Tablets are particularly significant for mcommerce sales
growth. As more consumers have embraced these devices for
lean-back browsing of potential purchases, retailers have made
greater efforts to make sure their tablet retail sites and apps are
particularly rich and responsive. This year, eMarketer predicts,
tablet retail mcommerce sales will hit $26.05 billion, or 62.5%
of US retail mcommerce sales overall. That’s up from last year,
when tablets took a 56.2% share of mcommerce retail sales.
US Retail Mcommerce Sales, by Device, 2011-2017
billions and % change
That will leave smartphones with a 35.0% share of mcommerce
sales, a percentage that will continue shrinking throughout the
forecast period as sales on tablets maintain far higher growth
rates. In 2017, smartphones will account for 27.0% of retail
mcommerce sales, eMarketer predicts. But actual sales dollars
spent on purchases made via smartphones will continue
growing at healthy double-digit rates. This year, retail sales
made on smartphones will total $14.59 billion, and that figure
will more than double to $30.66 billion by 2017.
Total
$13.57 $24.78 $41.68 $56.72 $75.00 $96.81 $113.57
—% change
171.7%
For the full-year 2013, total US retail ecommerce sales are
expected to reach $262.3 billion, growing by 16.4% during the
year. eMarketer predicts growth in the fourth quarter will reach
15.5% over the same period last year. That’s compared to Q4
2012, when the US Department of Commerce reported a retail
ecommerce gain of 15.73%.
eMarketer bases its retail ecommerce, mcommerce and
holiday sales figures on analysis of data from its benchmark
source, the US Department of Commerce, estimates from
other research firms, historical trends, reported and estimated
revenues from major online retailers, consumer online buying
trends, indicators of macro-level economic conditions and
eMarketer interviews with executives at retailers, brands,
ecommerce vendors and other industry leaders.
2011
Tablet
—% change
Smartphone
—% change
2012
2013
2014
2015
2016
2017
$5.43 $13.93 $26.05 $37.32 $51.00 $68.06 $81.20
352.8% 156.5%
$7.47
87.0%
43.3%
36.7% 33.5%
19.3%
$9.91 $14.59 $18.15 $22.50 $27.11 $30.66
119.8%
32.8%
47.1%
24.4%
24.0% 20.5%
13.1%
Other mobile $0.68
devices
$0.94
$1.04
$1.25
$1.50 $1.65
$1.70
—% change
38.8%
10.6%
19.8%
20.2%
69.8%
82.6%
68.2%
36.1%
9.7%
32.2% 29.1%
3.5%
17.3%
Note: includes products or services ordered using the internet via mobile
devices, regardless of the method of payment or fulfillment; excludes travel
and event ticket sales
Source: eMarketer, Sep 2013
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US Retail Ecommerce Sales, Q1-Q4 2013
billions and % change vs. same quarter of prior year
$83.2
$58.1
$60.2
16.3%
18.4%
Q1 2013
Q2 2013
$60.7
16.0%
15.5%
Q3 2013*
Q4 2013*
Retail ecommerce sales
% change vs. same quarter of prior year
Note: eMarketer benchmarks its retail ecommerce sales figures against US
Department of Commerce data, for which the last quarter measured was
Q2 2013; includes products or services ordered using the internet,
regardless of the method of payment or fulfillment; excludes travel and
event tickets; *eMarketer estimate
Source: eMarketer, Sep 2013
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In this case, eMarketer evaluated more than 300 datapoints
collected from over 60 research sources—analyzing
methodology, definitions and historical accuracy of each—
before building its model for US retail ecommerce, mcommerce
and holiday sales.
Mobile Commerce Roundup
Copyright ©2013 eMarketer, Inc. All rights reserved.4
US Mobile Payments to Top $1 Billion in 2013
Limited adoption by consumers and merchants
Despite slower growth than previously expected, proximity mobile payments will top $1 billion in the US
this year, according to new figures from eMarketer, before expanding rapidly to reach an estimated
$58 billion by 2017.
eMarketer defines mobile payments as transactions for goods
or services made by scanning, tapping, swiping or checking in
with a mobile phone at the point of sale. Often characterized
as a proximity or contactless payment, mobile payments occur
real time in the real world, and are functionally different than
mobile commerce—the purchase of digital or physical goods
on a mobile device.
Driven by consumers buying items like daily coffee via
closed-loop payment systems, as well as an increase in
bigger-ticket purchases made via smartphones, mobile
payment transactions more than tripled from 2011 to 2012 in
the US, eMarketer estimates, reaching $539 million last year.
US Proximity Mobile Payment Transaction Value,
2011-2017
billions and % change
$58.42
in
273.8%
225.6%
173.0%
$26.45
148.6%
in
120.8%
93.4%
$9.69
$0.17
$0.54
$1.04
$2.59
2011
2012
2013
2014
2015
2016
2017
Still, the market is growing slower than previously expected,
Proximity mobile payment transaction value
% change
as evidenced by eMarketer’s scaled-back estimates of user
Note: point-of-sale transactions made by using a mobile device as a
payment method; includes scanning, tapping, swiping or checking in with a
adoption and transaction value from initial projections in
mobile device at the point of sale to complete transaction; excludes
purchases of digital goods on mobile devices, purchases made remotely on
October 2012. Delays and adoption issues facing numerous
mobile devices that are delivered later on, and transactions made via tablets
mobile wallet initiatives, as well as a congested landscape of
Source: eMarketer, July 2013
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competing technologies, materially affect eMarketer’s outlook
on mobile payment transaction values, which will not top
$20 billion until 2016. The previous forecast predicted mobile payments would top $20 billion by 2015. Additionally, low-value
purchases will still comprise the majority of transactions in 2013, causing a dip in the growth rate.
These estimates are based on the following key assumptions
and variables:
■■In the near term, light users experimenting with low-dollar
purchases will dominate the mobile payment audience; a
smaller segment of heavy users who habitually buy their
daily coffee, for example, with a mobile payment system will
increase over the forecast period.
■■The significant jump in total and per-user spending over the
forecast period will be driven by consumers adopting mobile
payments for a wider array of products and services constituting
an equally broad gamut of price points. eMarketer views this
diversification as critical to driving habitual consumption, which
is crucial for moving mobile payments into the mainstream.
US Proximity Mobile Payment Forecast, 2011-2017
2011
Proximity
2.7
mobile payment
users (millions)
2013
2014
2015
2016
2017
7.1
10.9
17.0
29.3
41.2
54.1
160.7% 53.6%
56.7%
71.9%
40.7%
31.3%
—% of
3.0%
smartphone users
6.0%
8.0%
11.0%
17.0%
22.0%
27.0%
—% of mobile
phone users
3.1%
4.7%
7.3%
12.4%
17.2%
22.3%
—% change
-
1.2%
Proximity
$166
mobile payment
transaction
value (millions)
—% change
-
$539 $1,043 $2,592
225.6% 93.4% 148.6%
$9,688 $26,452 $58,415
273.8%
173.0%
120.8%
$61.00 $76.20 $95.95 $152.24 $331.09 $642.35 $1,080.65
Average
spend per user
Note: ages 14+; includes point-of-sale transactions made by using mobile
devices as a payment method; excludes transactions made via tablet
Source: eMarketer, July 2013
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Copyright ©2013 eMarketer, Inc. All rights reserved.5
US Mobile Payments to Top $1 Billion in 2013 (continued)
■■Increased activity among these regular users is contingent on the assumption that more mainstream merchants will accept
mobile payments of some kind. For example, near field communication (NFC) adoption remains a wild card. On the one hand,
NFC-enabled hardware continues to proliferate. On the other hand, US mobile payment platforms reliant on NFC have, so far,
failed to gain traction among consumers and merchants, even as other methods and technologies have picked up steam. The
failure of large-scale mobile payment schemes to take root in 2012 put many merchants and consumers in a “wait and see”
mode, resulting in lowered estimates.
■■Consumers will also need to find the experience of using a mobile payment platform sufficiently convenient and valuable
enough to encourage repeat use. Integration of proximity payments with other mobile commerce activities will contribute
to increased consumer awareness and use, encouraging uptake, while concerns about security and smartphone battery life
will gradually ebb as consumers grow more familiar with the different systems available. Absent these conditions, the market
may not develop as predicted in the model.
■■While the number of transactions and users have increased, a fragmented mobile wallet landscape could stifle the path
to more rapid adoption. In contrast, if hardware and infrastructure impediments are resolved in a shorter timeframe, and
adoption clusters around specific mobile wallets or payment mechanisms, allowing large-scale mobile wallets to make
inroads with consumers and merchants, the proximity payments opportunity could accelerate at a faster rate.
Numerous forecasts tracked by eMarketer attempt to quantify the global mobile payments opportunity, although estimates
vary widely based on the scope of how each research firm defines what constitutes a mobile payment, as well differing
methodologies and assumptions of what will drive market growth. Players in the mobile payments value chain currently
operate at a country-specific level due to local regulations and infrastructure considerations, meaning that regional
perspectives can be more insightful than a global aggregate view.
Most researchers expect global mobile payments will reach transaction volume in the hundreds of billions of dollars by
2017. Despite these generally optimistic projections, discrepancies in scope, as well as downward revisions of past forecasts,
underscore just how much the market is still in its early stages.
eMarketer’s estimates are based on an analysis of the market
presence of major mobile payment players; estimates from
other research firms; and consumer smartphone, mobile
payment adoption and retail spending trends.
In this case, eMarketer evaluated more than a hundred
data points from over 30 research sources—analyzing the
methodology, definitions and historical accuracy of each—
before incorporating them into our own model.
Comparative Estimates: Mobile Payment Transaction
Volume Worldwide, 2011-2017
billions
2011
Gartner, June 2013
-
Yankee Group**,
April 2013
-
Gartner, May 2012
NPD In-Stat*,
March 2012
2012
2013
$163.0 $235.0
-
2015
2016
2017
-
-
-
$721.0
$60.7 $126.2 $230.3 $371.0 $531.2
$105.9 $171.5
-
2014
$1.1
-
-
-
$617.0
-
-
-
-
$9.9
-
IE Market Research, $47.2
Feb 2012
-
-
-
-
$998.5
-
$2.4
-
-
-
$71.0
-
-
Yankee Group**,
Sep 2012
-
-
-
-
-
$366.7
-
Juniper Research,
Aug 2012
-
-
-
-
-
-
Informa Telecoms &
Media**, Sep 2011
$1,300.0
Note: *NFC/barcodes only; **NFC only
Source: various, as noted, 2011 & 2012
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Copyright ©2013 eMarketer, Inc. All rights reserved.6
Affluent Shoppers Make Mobile an Essential Stop in the
Purchase Funnel
Discounts get affluent mobile shoppers to buy
The wealthy consumer is highly likely to own a smartphone or tablet, and the devices are becoming
critical shopping tools for these high-income individuals. In April 2013, the Luxury Institute surveyed US
internet users ages 21 and older with gross incomes above $150,000 and found that more than eight in 10
owned a smartphone, while 56% reported owning a tablet. These penetration rates are well above those
for the overall US population on smartphones or tablets.
As affluent consumers become increasingly comfortable
with their smart mobile devices, they are turning to them
throughout the purchase process. The Luxury Institute found
that the most common smartphone mcommerce activity was
looking up store information. After this came product research
and comparison shopping.
On tablets, consumers were most likely to look up product
images and read user reviews and recommendations. This
points to the increasing importance for luxury retailers to make
sure they have an attractive, interactive tablet showcase for
their products, as tablets serve as “lean-back” devices, which
consumers often use to get to know potential purchases.
When it came to making actual purchases, the store still won
out as the most common place to make a purchase among
affluent consumers, cited by 78% of respondents. Purchasing
via the desktop web was right behind, however, cited by 77%.
Women were 6 percentage points more likely than men to
make a purchase through this means, while men showed a
greater proclivity to buy on mobile.
Mobile websites on tablets were the place where the greatest
percentage of shoppers made mobile purchases, at one out
of five affluent consumers. Another 11% used a tablet app to
make a purchase. Fourteen percent of affluent consumers used
the mobile web on a nontablet device to buy and 12% used a
mobile app.
And even if affluent shoppers have plenty of cash at their
disposal, that doesn’t mean a deal won’t help them convert.
On tablets, special deals or price discounts were the No. 1
reason respondents would purchase via these devices, with
43% indicating that would sway them. On smartphones, special
deals tied with ease of use, at 45%, as top reasons to complete
a purchase on the device.
Mcommerce Activities of US Affluent Smartphone vs.
Tablet Users, April 2013
% of respondents in each group
Smartphone Tablet
(n=634)
(n=889)
Search for store information (times, directions, etc.)
49%
41%
Look up product details while on-the-go
33%
18%
Compare prices while shopping in-store
29%
13%
View product images
28%
42%
Receive special deals or discounts
28%
22%
Compare prices while on-the-go
27%
15%
Look up product details while shopping in-store
27%
11%
Read user reviews and recommendations
26%
42%
Check the status of an order
23%
36%
Check availability at other retailers
20%
24%
Opt-in to receive marketing messages
11%
10%
Watch product videos
10%
21%
Note: ages 21+ with a minimum gross annual income of $150,000
Source: Luxury Institute, "Luxury Institute WealthSurvey: Multi-Channel
Purchase and Behaviors," May 9, 2013
157081
Shopping Channels Used to Make Purchases Among
US Affluent Internet Users, by Demographic,
April 2013
% of respondents in each group
Gender
Age
Income
Male Female
<50 50+
$150K- $200K+ Total
$199K
Stores
78%
78%
78% 78%
83%
74%
78%
Websites using
a computer
74%
80%
78% 76%
80%
75%
77%
Websites using
a tablet
20%
20%
26% 16%
17%
22%
20%
Mailers or catalogs
13%
22%
13% 20%
18%
17%
17%
Telephone
customer
service rep
17%
14%
15% 16%
15%
15%
15%
Websites using a
mobile device
16%
13%
25%
8%
11%
17%
14%
Mobile app
14%
10%
20%
7%
9%
14%
12%
Tablet app
11%
11%
15%
8%
8%
13%
11%
2%
2%
2%
2%
1%
2%
2%
Other
Note: n=1,205 ages 21+ with a minimum gross annual income of $150,000;
in the past 12 months
Source: Luxury Institute, "Luxury Institute WealthSurvey: Multi-Channel
Purchase and Behaviors," May 9, 2013
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Copyright ©2013 eMarketer, Inc. All rights reserved.7
Tablets Give Beauty Brands a New Canvas
Shoppers most often use tablets for product research, though buying
via the device is on the rise
Tablets’ touchscreens create opportunities for hands-on experiences for consumers, and a platform for brands
to showcase products. The content that beauty consumers devour in magazines—such as tutorials, product
reviews and diagnostic quizzes—are ripe for the interactive opportunities that tablets can provide.
A survey from the Online Publishers Association compared
product research with product purchase by category among
tablet users in March 2013. OPA found that while the percentage
of those who purchased personal care and beauty products
was only 17%, that number was higher than in other categories,
such as food and beverage, and health, healthcare and
pharmaceuticals. In addition, the gap on tablets between the
percentage who researched vs. the percentage who bought was
among the narrowest for the personal care and beauty category.
Although the number of tablet shoppers is rapidly increasing,
and mcommerce sales are also rising fast, it is important to
keep the numbers in perspective. A March 2013 study from
marketing companies SheSpeaks and Lippe Taylor found that
just 8% of surveyed female internet users most often made
purchases through a mobile device or tablet.
Purchasing via tablet may be nascent, but beauty industry experts
say that ecommerce is just one function offered by the device.
Research via tablets is becoming more ingrained for many users,
even as sales remain relatively small. “We see this every time
we launch a new product,” said Alessio Rossi, vice president
of digital marketing for ecommerce and customer relationship
management (CRM) at Lancôme. “There is a lot of engagement,
and there is a lot of [tablet] traffic that occurs online, but not
as many transactions.” Customers are more likely to make
replenishment beauty product purchases via the tablet.
Beauty consumers crave content: the how-tos, the reviews, the
before-and-afters, the “What is my best lipstick color?” quizzes.
This type of content is being consumed increasingly often
on tablets.
“The tablet is becoming the ecommerce tool,” said Caroline
Grange, international digital and ebusiness director for cosmetic
brand Makeup Forever. “For us, it’s an investment in our
future buyer.”
Mobile Commerce Roundup
Select Tablet Advertiser Categories to Which US
Tablet Owners Are Most Likely to Respond, by
Gender, Jan 2013
% of respondents in each group
Food/restaurants
52%
43%
Apparel
40%
29%
Beauty
37%
14%
Leisure activities/events
32%
27%
Female
Male
Note: n=1,000
Source: Mojiva, "Tablets Rule: A Consumer Snapshot on Tablet Use and
Tablet Advertising," April 10, 2013
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Products Researched and Purchased via Tablet
According to US Tablet Users, March 2012
% of respondents
Researched
Purchased
Consumer electronics
37%
19%
Restaurants/fast food
36%
16%
Media and entertainment
35%
22%
Retail and apparel
35%
21%
Food and beverage
30%
15%
Sports/recreation/hobbies
30%
11%
Travel service
30%
13%
Personal care and beauty
28%
17%
Automotive (including parts)
25%
7%
Health, healthcare and pharma
24%
9%
Financial services, insurance, real estate
23%
10%
Telecom, B2B/B2C services
22%
9%
Home furnishings
21%
10%
Note: n=710 ages 8-64; in the past 6 months
Source: Online Publishers Association (OPA), "A Portrait of Today's Tablet
User - Wave II" conducted by Frank N. Magid Associates, June 18, 2012
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Copyright ©2013 eMarketer, Inc. All rights reserved.8
Mobile Becoming Moms’ Daily Shopping Companion
Clothing and beauty were top mobile shopping categories
There is no question that mobile is becoming an essential shopping tool for many US moms. According
to a March 2013 survey from retail solutions company Alliance Data, more than half of surveyed mom
internet users reported using their smartphone or tablet at least weekly for some aspect of shopping,
whether it be research or buying. And 35% of respondents said they used their device daily for
shopping purposes.
Mobile’s usefulness for shopping is easy to see. Convenience and a better ability to price compare were the top reasons moms’
reported using their device as they moved through the purchase funnel.
Clothing and beauty ranked as the top product categories for
which moms shopped on their smartphones and tablets, at
56% and 47%, respectively. Households products ranked third,
researched by 42% of respondents, a significant figure for CPG
brands, which have already moved quickly into the mobile
advertising space.
Showrooming—the practice of going into stores to compare
products and prices, often using mobile to shop around—is
common among moms, as well. At both electronics and bigbox retailers, half of mom mobile shoppers surveyed said they
used their smartphone or tablet to look up product and price
info. This was slightly less common at clothing, grocery and
shoe stores, but more than one-third of respondents still had
shopped at each of these locations using mobile devices.
US Mom Internet Users Who Use a Smartphone/Tablet
as Part of the Shopping Process, by Frequency,
March 2013
% of respondents
Don't have
a mobile
device
11%
Daily
35%
Never use mobile
device to shop
28%
Only every
few months, or
just a couple times
a year
6%
Weekly
16%
Once a month
4%
Source: Alliance Data, "The Mobile Mom," April 11, 2013
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However, mobile is not the primary method US moms prefer for shopping. Only 11% of respondents said this was the shopping
method they would choose, if given only one option. And according to December 2012 research from parenting app company
Alt12, about two-thirds of moms said they did less than half of their shopping on mobile.
But as mobile browsing becomes more common, and retailers
improve their multichannel efforts, there is no question that
more moms will favor smartphones and tablets for their
shopping and buying.
Amount of Shopping Conducted on Smartphone or
Tablet According to US Moms*, Dec 2012
% of total
3.0%
All (90%-100%)
Most of (60%-90%)
12.3%
About half (40%-60%)
18.6%
Some (10%-40%)
None or very little (0%-9%)
34.7%
31.4%
Note: n=1,362; *internet or mobile phone users
Source: Alt12, Jan 9, 2013
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www.eMarketer.com
Copyright ©2013 eMarketer, Inc. All rights reserved.9
Majority of US Mobile Consumers Use Devices to Comparison Shop
Shopping-specific apps see heavy use
Mobile commerce is grabbing an ever-growing slice of the overall ecommerce pie. eMarketer estimates that
15% of all US online retail sales in 2013 will be made on a mobile device, an increase from 11% in 2012.
Those projections correspond with an April 2013 survey of US mobile internet users conducted by AYTM Market Research that
demonstrates just how common mcommerce has become for mobile internet users. According to the poll, 55% of respondents
had ever made a purchase on their mobile device, although only 9% did so with great frequency.
Researching products and prices on mobile was an even more
popular shopping activity. In fact, 72% of respondents said they
had used their phone to research product prices or seek a
better deal online, with 22% saying they did so often.
Apps, in particular, appear to be playing an important role in
leading shoppers down the path to purchase. Just more than
one-third of respondents said they had downloaded an app
specific to a particular store, making it the most popular type
of shopping app used by consumers. That was followed by
local store/shopping locator apps (26%), general coupon apps
(25.5%) and daily deal apps (22.5%).
US Internet Users Who Use Their Mobile Devices to
Purchase Products Online, April 2013
% of respondents
Yes, often
9%
Yes, sometimes
27%
Never
45%
Rarely
19%
Source: AYTM Market Research as cited in company blog, May 1, 2013
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Figuring prominently in the mcommerce landscape are tablets,
the ownership of which correlate strongly to digital purchases.
eMarketer estimates that 63% of US tablet users will make a
purchase on the device this year, with that percentage growing
to 78% by 2017.
www.eMarketer.com
Types of Shopping Apps that US Internet Users Have
Downloaded on Their Mobile Devices, April 2013
% of respondents
Shopping apps for particular stores
34.0%
Local store/shopping locator
26.0%
General coupon apps
Daily deals apps
25.5%
22.5%
9.5%
Other shopping apps
Source: AYTM Market Research as cited in company blog, May 1, 2013
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www.eMarketer.com
Copyright ©2013 eMarketer, Inc. All rights reserved.10
College Students Deal Hunt on Mobile
Mobile plays a role in more of everyday life for college students
College students have a voracious appetite for mobile apps that help them socialize and communicate.
And a November 2012 online survey of 689 US college students conducted by Study Breaks and
Campus2Careers finds that they are also committed mobile deal hunters.
Nine out of 10 respondents reported using their phones to
scour for deals, coupons and specials; just 10% said they
“never” did so. Moreover, 20% of surveyed college students
were self-professed mobile deal addicts, saying they “always”
checked their phones for the latest deals—another 31%
checked their phones for deals “often.” In other words,
over half of college students, 51%, were committed mobile
deal aficionados.
As one might expect, the large numbers of students looking for
purchases with phones in hand translates to large numbers of
students making purchases through their phones. The study
found that 70% of sampled college students made mobile
purchases, and 52% did so at least once a month.
But the fact that students are focused on shopping and buying
via mobile doesn’t mean they’re neglecting their social lives.
When asked to name their most frequent mobile activity, other
than talking or texting, fully 25% of respondents said accessing
Facebook, while another 14% cited rival social network Twitter.
Email was a close second overall, with 23% citing it as their
No. 1 mobile task.
Taken together, 62% considered some form of digital
communication to be their top mobile priority. The only other
categories to crack double digits were music (11%) and
“other” (12%).
Additionally, college students are using mobile phones
increasingly for classwork, a sign that the devices really have
penetrated nearly every aspect of student life. Over half of
respondents said they used their mobile phone for schoolrelated tasks every day.
Mobile Commerce Roundup
Frequency with Which US College Student Mobile
Phone Owners Use Their Mobile Device to Find Deals,
Nov 2012
% of total
Never
10%
Always
20%
Rarely
14%
Often
31%
Sometimes
25%
Note: ages 18+; coupons, deals, drink specials, etc.
Source: Study Breaks and Campus2Careers, Feb 14, 2013
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Most Frequent Mobile Activity Among US College
Student Mobile Phone Owners, Nov 2012
% of respondents
Facebook
25%
Email
23%
Twitter
14%
Music
11%
Maps
5%
Search
5%
Games
Other
4%
12%
Note: ages 18+; other than talking or texting; numbers may not add up to
100% due to rounding
Source: Study Breaks and Campus2Careers, Feb 14, 2013
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Copyright ©2013 eMarketer, Inc. All rights reserved.11
How Mobile Affects the Path to Purchase for adidas
Kerri Smith
Director of Mobility
iProspect
adidas and iProspect, its digital agency, initiated a
mobile campaign in fall 2012 to measure device
impact on in-store conversions, resulting in a 683%
incremental lift in revenues. Kerri Smith, iProspect’s
director of mobility, spoke with eMarketer’s Danielle
Drolet about the adidas effort and iProspect’s
overall mobile search strategy when working with
brands, including implementation of Google’s new
AdWords enhanced campaigns.
eMarketer: What formula are you using to see how
mobile is driving in-store conversions?
Kerri Smith: With mobile, there are a lot of direct
responses that indicate a specific level of intent and/or
give the advertiser an ability to influence that consumer
at different stages. In traditional desktop, direct response
typically means a conversion. With mobile, we have to
pay attention to the responses, including store locator
clicks, click-to-call or downloading an application. All of
those indicate a certain level of intent from our consumers
and may influence and affect their ultimate decision
to purchase.
It is similar in theory and concept to Google’s idea of the
full value of mobile, the big difference being in how we are
applying these different concepts to different brands, as
well as the amount of credit we’re willing to give them. For
us, it’s not so much trying to claim that these responses are
conversions because we understand that they’re not. It’s
more about understanding the role they’re playing in that
consumer’s path to purchase. And what ability we have to
not only evaluate those but also influence them.
“The goals for mobile are pretty similar to
desktop in terms of proving out a direct
response, an ROI or looking for traffic and
engagement advantages.”
Mobile Commerce Roundup
eMarketer: How do your mobile goals differ from your
desktop goals?
Smith: The goals for mobile are pretty similar to desktop
in terms of proving out a direct response, an ROI [return
on investment] or looking for traffic and engagement
advantages. But we do have some clients that are
specifically leveraging [mobile] to drive consumers to the
store. The main goal for most of our brands, which are in
the performance and ecommerce categories, is that they
want to drive revenues and return. The bigger difference is
in how we are evaluating the performance of these.
eMarketer: To what degree are your clients invested in
mobile search engine optimization (SEO) and search engine
marketing (SEM)?
Smith: Ninety-five percent of our brands that are running
desktop pay-per-click (PPC) with us are also running mobile
PPC with us. [For most of them] it’s basically a company
directive in that they need to be there and understand the
space. If they’re doing work with iProspect, it’s going to
mean that there will be mobile optimizations.
The majority of our brands are invested at least somewhat
in mobile. Some brands may be minimally invested—
around 10%. For others, we’re seeing that mobile is taking
up 30%-plus of their budget, based on the results that
they’re seeing and driving from the channel.
eMarketer: What impact will Google’s AdWords
enhancements have on mobile SEM?
Smith: The changes will be massive. It’s almost as if
Google is punishing advertisers that were advanced
enough to really understand the idiosyncrasies of the
different devices. A lot of what Google is stating as their
reasons for making this change is to make it simpler for
advertisers. I actually think it works against a lot of what
they had been promoting for the past two years in that
they’ve been promoting a specific experience because it is
different—the needs of those consumers are different, the
devices are different.
Copyright ©2013 eMarketer, Inc. All rights reserved.12
How Mobile Affects the Path to Purchase for Adidas (continued)
“It’s almost as if Google is punishing advertisers that were advanced enough to really
understand the idiosyncrasies of the different devices.”
With enhanced campaigns, they’re taking away the control that we have to create unique experiences for those consumers.
Not only will we be less able to see where the performance is coming from and to optimize our budget to be efficient as an
advertiser, but it will hurt the consumer as well. Essentially, you’re telling the advertiser that there’s nothing special or unique
that they have to do for those users. It’s almost like advocating against creating a mobile-specific site or really working to
leverage the channel the best way that you can.
eMarketer: What are your clients’ biggest concerns? And what are you doing to ease their fears?
Smith: The majority of our brands are really not happy about the changes. They are mostly nervous that their cost-per-clicks
are going to go up dramatically.
Right now, in preparation for the June migration date, we’ve got several test brands in beta across multiple verticals so that we
can help brand marketers understand campaign structure, as well as bid, ad copy and landing page strategies. The concept of
redefining direct response is extremely important, especially in the next couple of months, as enhanced campaigns take away
our visibility in understanding campaigns. We want to make sure that we can optimize that experience and evaluate it in a way
that is holistic—to understand the impact to the brand’s bottom line vs. that one-to-one media spend to drive revenues.
Mobile Commerce Roundup
Copyright ©2013 eMarketer, Inc. All rights reserved.13
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