Comscore : Mobile Retail Advisor

Handheld Shopping: How Mobile is Changing the Retail Environment

Mobile Retail Advisor

Dec 7, 2011

2 © comScore, Inc. Proprietary.

Agenda for Webinar on Dec 7, 2011

Overall Mobile Trends

Understanding the Mobile Shopper

The Who and What of Mobile Shopping

Focusing on the Smartphone Audience

Shopping Activities

Purchasing using the Smartphone

Reasons for Purchasing

Location

Targeting the Smartphone Audience for Retail

Social Networking, QR Codes and SMS Ads

Growing Hot Topic

Use of Mobile Coupons

Daily Deal and Flash Sale Site Visitation via Mobile vs via PC


What’s happening in the mobile market?


Mobile Media Usage More than half of US mobile phone owners browse the mobile internet, use

applications or download content (Mobile Media Users)

The Mobile Audience who is using Just Voice has declined 15% YoY

Mobile Media usage has grown 19% YoY

Source: MobiLens, 3 months average ending September 2011

Mobile Media 42%

SMS 29%

Just Voice 29%

September 2010

Mobile Media 51%

SMS 25%

Just Voice 24%

September 2011

US Mobile Audience: 234 Million

Mobile Media User = Used browser, application, native email,

stream or download music and broadcast or on demand video

(does not include SMS)


Smartphone OS Share Android has a clear lead in the Smartphone market share in the US and it continues to

grow


5,839 4,872

21,876 16,504

14,237 23,957

12,550

39,142

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

To

tal A

ud

ien

ce (

000)

Share of US Smartphone Install base by OS

US Smartphone Audience: 87.4 Million

% YoY

Growth

Total Smartphone + 11%

Google + 212%

Apple + 68%

RIM - 25%

Microsoft - 17%

Symbian - 7%

Palm - 45%


Web/App Ads: Recall seeing ads 29% of the audience who use app or browser recall seeing ads


Ad Metrix Mobile, September 2011

9% 8%

12%

Almost every day

At least once each week

Once to three times throughout

the month

Web/App Ads: Recall seeing ads

App or Browser User


Visitation by Access Method Browser is currently the most used method to access retail and shopping guide

content

0

4,000

8,000

12,000

16,000

Mo

bile A

ud

ien

ce(0

00)

Online Retail Category Access

Via Browser Via Application Via SMS


+61%

+109%

+21%

49%

20%

15%

11%

8%

5% 4%

Shopping Guide Category Access

Browser Only App Only

SMS Only Browser and SMS

App and Browser App and SMS

ALL Access Methods

As mentioned, consumers use app and browser similarly with over 40% using each access method.

Retail and Shopping Guide access highly indexes to Browser pointing to the need for MORE APPS.


Understanding the mobile shopper

The Who and What of mobile shopping?


Mobile Shopping Slightly less than half of all mobile phone consumers engaged in shopping activities

on their mobile device

46%

54%

Performed Shopping Activities

Have NOT Performed Shopping Activities

Source: Custom Mobile Retail Advisor Survey Sept ‘11

Shopping Activities via Mobile Phone


Mobile Phone Usage for Shopping Activities The FOCUS should be on the ever-growing smartphone platform as two-thirds of this

audience use their device for shopping activities


Not Smartphone Owners

71%

29%

Smartphone Owners

33%

67%

Have NOT Performed Shopping Activities Performed Shopping Activities

Mobile Phone Usage for Shopping Activities

The mobile retail study from this point on will ONLY focus on Smartphones owners


Mobile Shopping Activities Even for Smartphone owners who have highly capable devices, taking a picture of a

product is the most popular shopping activity, followed by searching for a nearby store

18%

18%

24%

24%

26%

26%

27%

27%

28%

29%

30%

31%

32%

37%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Checked a store`s inventory for an item`s availability

Shared product recommendations

Compared product and price info btwn a few different stores/websites

Read customer ratings or reviews for an item

Scanned a barcode to compare prices btwn a few different stores/websites

Found or redeemed a coupon/coupon code

Created a shopping list

Sent a picture of a product to friends or family

Looked up product and price information for a specific store

Texted or called friends or family about a product you are considering for purchase

Researched product and/or price details

Searched for coupons

Searched for a nearby store

Took a picture of a product

Shopping Activities

BASIC Mobile Shopping Activities SOPHISTICATED Mobile Shopping Activities



Demos for Basic vs Sophisticated Smartphone Shoppers Sophisticated Smartphone Shoppers skew towards being males and the younger age

brackets, opposite to Basic Mobile Shoppers, but mirror the income breakouts

BASIC: 11% of Smartphone Shoppers SOPHISTICATED: 89% of Smartphone Shoppers

59%

41%

Male Female

36% 64%

Male Female

3% 19% 14% 29% 31% 4%

18-24 25-34 35-44 45-54 55-64 65+

6% 48% 17% 16% 11% 2%

18-24 25-34 35-44 45-54 55-64 65+

Sophisticated

Users are 2.5x

more likely to be

ages 25-34


No major differences for

income– Smartphone

owners already index to

higher income levels


Purchasing Using the Smartphone


38% 62%

Yes No

Total Smartphone Audience

Purchasing on a Smartphone Two-fifths of the smartphone audience has made a purchase using their mobile phone

Q. Have you ever made a purchase on your mobile phone?



Likelihood to Purchase in Future All smartphone consumers who have purchased previously using their mobile phone

are likely to purchase again in the future

0%

20% 26%

64%

73%

16%

Previously Purchased Never made a purchase

Not Likely Neutral Likely

Q. How likely would you be to use your smartphone to make

purchases in the future?

Key potential

target



Reasons for Not Purchasing Security is the leading reason for not purchasing on a smartphone– Retailers should

take extra precautions while also educating consumers on the security

5%

3%

4%

7%

8%

12%

24%

28%

32%

Other

My phone does not have Internet capabilities

I do not have a data plan

I don`t know how to use my mobile phone to make purchases

I think I can get cheaper prices in the store or through my computer compared to my mobile phone

I find it confusing to use my mobile phone to make purchases

The screen on my phone is too small

I prefer to make purchases in person

I am concerned about security on my phone

Reasons for Not Purchasing


Easy to navigate sites

and apps needed


Reasons for Purchasing On-the-go convenience is a key highlight and unique characteristic for smartphone

devices. It should be further enhanced to encourage more mobile consumers to purchase

63%

52%

48%

41%

0%

10%

20%

30%

40%

50%

60%

70%

On-the-go convenience Available special offers/coupons

Easy to compare prices and find the best deal

Product is not available in the store

Reason for purchasing on a smartphone instead of

online or in-person



Location When Purchasing Similar to shopping, consumers purchase on their smartphone the most at home. However,

a third also purchased in store which can target those who prefer to see a product in person

36%

37%

42%

42%

56%

In Store

Traveling (i.e., in a car, on the subway, in a cab)

Work

Out other places (i.e., park, school, restaurant, etc.)

Home

Location When Purchasing Location when

purchasing indexed

to shopping

74

217

119

94

53

Index: 100 is parity



Targeting the Smartphone Audience for Retail

Social Networking, QR Codes and SMS Ad


Social Networking Almost two-thirds of Smartphone owners access social networking sites, and of those,

more than one-third read posts from organizations/brands

19%

24%

24%

30%

37%

37%

47%

54%

Clicked on advertisement

Received coupon/offer/deal

Posted link to website

Read posts from public figures/celebrities

Read posts from organizations/brands/events

Followed posted link to website

Posted status update

Read posts from people known personally


Accessed Social Networking Sites

51%

63%

40%

45%

50%

55%

60%

65%

Q1

-10

Q2

-10

Q3

-10

Q4

-10

Q1

-11

Q2

-11

Q3

-11

% o

f S

mart

phone A

udie

nce)

Social Networking Activities

Of the

63%...


QR Code Usage Over 16 Million smartphone owners scan QR Codes. It is great evidence that mobile

devices are opening doors to new integrated marketing

19% of Smartphone owners scanned QR Codes

What is a QR code?

A two-dimensional barcode,

which has encoded in it a

URL, text, or information

alike that is read by QR

scanner Smartphone apps-

allowing instant connectivity

to online features.


52%

42%

26% 26%

13% 12% 9%

0%

10%

20%

30%

40%

50%

60%

Printed magazine

or newspaper

Product packaging

Website on PC

Poster or flyer or

kiosk

Business card or

brochure

Storefront

TV

% o

f Q

R C

od

e U

se

rs

Source of QR code scanned

Smartphone Audience who Scanned QR Codes


SMS Ads Although mobile media is on the rise, SMS is still a popular access method for mobile

with more than a third of Smartphone owners receiving SMS ads


24%

6%

6%

Smartphone Audience

# of SMS Ads Received in a Month

1 to 5 6 to 10 More than 10

19%

43%

44%

51%

0% 20% 40% 60%

Donation to charity/non-profit

Info about product/service/brand

Contest

Coupon or discount

% of Smartphone Audience who Responded

From those who

received SMS Ads, 24%

responded Of the

24%


Growing Hot Topic:

Mobile Coupons

Daily Deals and Flash Sale Sites


Use of Mobile Couponing Nearly two-in-five smartphone consumers has used mobile couponing on their mobile

phone with an additional 40% interested in the future

37%

42%

20% Yes, used location-based couponing

No, have not used in the past but would be interested in doing so in the future

No, have not used in the past and would not be interested in doing so in the future

79% Potential

Reach for Mobile

Couponing

Use of location-based couponing services on mobile phone



Impact of Mobile Coupons An overwhelming majority of smartphone consumers would be swayed to a store with

a coupon

77%

23%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Yes No

Q.Would you choose one store over another (assuming they were in the

same location, such as in a mall) if you received an location-based coupon

for a similar product from one of the stores?



Growing Hot Topic:

Mobile Coupons

Daily Deals and Flash Sale Sites


Daily Deal and Flash Sale Site Visitation Approximately two-in-five smartphone consumers subscribe or visit daily deal / flash

sale sites on mobile and over three-in-five do so on PC

Daily deal sites provide a single ‘deal of the day,’ localized by geographic regions.

Flash sales sites are a time-limited offer of high discounts. The offers are ‘abrupt’ and last for a

brief time.

44%

63%

0%

20%

40%

60%

80%

On Mobile Phone On Personal Computer /Laptopr

Currently Subscribe to or Visit Daily Deal/Flash Sites

96% of consumers who subscribe/visit at least one site on mobile also subscribed on PC



Key Take Aways

Strong appetite for mobile shopping

– Mobile phones used in shopping process by 46% of phone owners

– Nearly 60M smartphone mobile shoppers (2/3rd of smartphone owners)

More people shop than purchase with mobile phone

– 38% of smartphone owners have made a purchase

– But vast majority who haven’t purchased with phone are open to it

Mobile couponing and deals will find large audience

– 79% of smartphone owners have used/interested in using

– ¾ prefer mobile to paper coupons

Flash Sales and Daily Deal sites also have strong mobile audience

– Higher penetration on PC (63%) to mobile (44%)

– Classic Web incumbents strong in mobile


Do You Want to Know More?

This webinar provided a slice of data from comScore’s new

Mobile Retail Advisor product

– Q3 2011 FULL DECK will provide more details:

- More on Mobile Shopping (Where & Why)

- The Non Mobile Shopper & Why

- More on Mobile Purchasing (Spend, Payment, Categories)

- More on Targeting the Smartphone Audience, Mobile Coupons and Daily Deals

- Examples of Successful Apps and Mobile Sites

Available by subscription and delivered twice each year

For more info please contact Ralph Mango: [email protected]

THANK YOU!

mailto:[email protected]