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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
Stage 1: Pre Survey Stage 2: Mobile Commerce Diary
What did? Why? How feel? Where? Other media?

Stage 3: Post Follow Up

Screening

Understanding motivations Attitudes towards mobile advertising Future scoping

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

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.
Which (mobile commerce) activity did you just use your mobile phone for?
28% % Encounters 18% 12% 9% 5% 4% 3% Used mobile coupons

Find Searched for a Compared prices Purchase digital Purchased non- Checked status product/service store location content digital item on auction site info

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.
What made you do this? (mobile commerce activity)
The offer was too good to refuse Recommendation from a friend/family To get something immediately/didn't want to wait Research for a future purchase To find the best deal Boredom/filling time Something I planned to do A mobile ad It's the easiest way for me to do it % of Encounters
Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval.

10% 10% 11% 16% 20% 21% 21% 22% 24%

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

Most Important Factor

Important Factors
Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval.

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.
Top Categories For Mobile Commerce Usage
% Mobile Commerce Users 76% 80%

38%

46% 34%

46% 33%

44% 31%

41% 27%

39% 23% 27% 21% 27%

Group digital categories

Clothing

Entertainment activities (restaurant, movies)

Consumer electronics

Health and Beauty

Food and Grocery

Furniture and Tickets (events, other travel) housewares

Total
Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval.

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

Over $61, 10% I don't make purchases on my mobile, 30% $41 to $60, 16% $21 to $40, 12% $1 to $20, 32%

Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval.

NEW SECTION

Physical Goods versus Digital Goods

Protection and having a specific retail app gain importance amongst those who purchase physical goods.
Post Survey: And which ONE is the most important to you? Please select one answer only

Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval.

Order of Importance

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.

40% 35% 30% 25% 20% 15% 10% 5% 0% 1am-3am night 4am - 6 am time early morning 7am - 9am morning 10am noon late 1pm - 3om morning early afternoon Total 4pm - 6pm afternoon 7pm - 9pm early evening 10pm midnight late evening

Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval.

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.
40% 35% 30% 25% 20% 15% 10% 5% 0% 1am-3am night 4am - 6 am time early morning 7am - 9am morning 10am noon late 1pm - 3om morning early afternoon Compare prices Purchase 4pm - 6pm afternoon 7pm - 9pm early evening 10pm midnight late evening

Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval.

47% of mobile commerce actions occurred at home.

Diary Stage: Where were you?

At Home: 47%

Out and About: 29%

At Work: 10%

Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval.

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
Where people use Mobile Commerce By Activity
70% 60% 50% 40% 30% 20% 10% 0% Find information on a product/service Searched for a store location At home Checked/compared prices Purchase Any Item 19% 29% 57% 49% 37% 30% 35% 26%

Group out and about

Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval.

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


36% of mobile commerce encounters are whilst consumers are watching TV
Diary Stage: And were you using/looking at any other media at the same time?

TV 36%
64%

Phone (talking) 16% Radio 7% Magazine 4%

Desk/ Laptop 10% Newspaper 5%


Yes

36%

No

Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval.

NEW SECTION

A 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.
Diary Stage: Where were you? In which room ?
Front room/Lounge 61%

Bedroom

20%

At Home: 47%

Kitchen

8%

Garden/patio etc

8%

Bathroom

1%

Other rooms

2%

Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval.

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


Diary Stage: Where were you? What media?
TV Phone (talking) Desktop/laptop Radio Press Tablet Other No, none of these
Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval.

49% 13% 6% 4% 4% 3% 4% 31%

At Home: 47%

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

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

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

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
Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval.

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

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)

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

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

Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval.

In-Store Mobile Experience

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
Have you used your mobile phone when shopping in a store in the past 3 months? if so, what for?
49% 34% 34% 20% 24% 15% 15% 14% 14% 13% 9%

60% 50% 40% 30% 20% 10% 0%

Call/text Check prices Taking Check for family picture/s of another store member for product to in the area advice send to a friend/family member

Check product reviews

Fill time Check for Show Scan barcode when waitinglocation deals shop/store on to check out assistant the product/ad item you are for after information

To check opening times

I have not used my mobile phone while shopping in store

Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval.

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


Finding a better price is the key reason behind this.
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?

Found a better price in another store Found a better price online Found a better item online Product was out of stock/not available

38% 30% 21% 13% 11% 11% 11%

53%

47%

Saw a negative review about the product Bought a similar item instead

No

Yes

Couldn't find info on product was planning to purchase

Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval.

Mobile Commerce Case Studies

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

Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval.

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


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 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)

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

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
Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval.

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

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

NEW SECTION

Mobile Commerce and Advertising

As we saw on slide 9

At 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.


70% view mobile ads as a personal invitation This reflects a clear opportunity for brands and advertisers alike to engage consumers.
Which of the following is closer to your view of ads on your mobile/smartphone?

30%

70%

A personal invitation

A personal invasion

Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval.

Mobile advertising should give consumers more than just a check out
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.

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

7% 28%

4% 24%

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

Click to browse: I want to see a page showing a whole range of similar products from the same company Click to explore: I want to start at the homepage of the company

40%

51%

25% Total

20% A personal invitation

Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval.

Relevance and permission are key if advertisers are to personalise advertising for consumers.
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.
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)?
40% 30% 20% 10% 0% 30% 37% 27%

24%

22% 14%

21%

24%

I like that theyre relevant to me

They are ok, but only if I have given I dont like them too much of my It makes no different that theyre my permission to receive them personal information is being personalised theyre just like any shared other ad

Total
Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval.

A personal invitation

Location, favourite brands and previous site history are the starting blocks for relevant mobile advertising.
Assuming advertising has to happen, which of the following ways to make ads more relevant to you would you be open to?
Your location (city or neighbourhood) Your favorite brands Sites you've visited online Information you give the ad at the beginning Your age/gender, whether you have kids, or other Information you have shared publicly via Facebook, Twitter Your recent TV/radio viewing Your recent online purchases Your daily routine None of these 28% 27% 26% 27% 24% 27% 21% 20% 21% 23% 18% 19% 16% 19% 15% 17% 11% 13% 10% 14%

Total
Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval.

A personal invitation

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.
Thinking about the future of mobile commerce (searching/buying/booking products and services via your mobile phone) how would you like this to progress?
31% 30% 30% 29% 28%

40%

26% 22%

20%

10%

0%

Proactive alerts to let me Ability to pay for Better browsing Mobile loyalty Better/more price and Mobile wallets -making it know when products I something by phone and experience e.g Wifi or 4G cards/scheme -rewards information comparisons easier to pay using my want or need are pick it up in store for paying by phone phone available or on sale

Country: US Date: April/May 2012 Base: Total respondents (260) Significantly higher/lower. Tested at 95% confidence interval.

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
alistair@ondeviceresearch.com

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