m-Retail, m-Commerce & m-Payments: The Rise of the 3 Ms

© comScore, Inc. Proprietary.

The Rise Of The 3Ms: m-Retail, m-Commerce & m-Payments

MMA Forum: Mobile and the Path to Purchase 11 November 2013 | London

Hesham Al-Jehani, Product Manager Mobile Europe | comScore [email protected]

© comScore, Inc. Proprietary. 2

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http://www.sprint.com/

http://www.timewarnercable.com/Milwaukee/

http://images.google.com/imgres?imgurl=http://www.bargainstash.com/images/logos/target.gif&imgrefurl=http://www.bargainstash.com/&h=70&w=59&sz=3&hl=en&start=47&tbnid=ylSXIM_zSo_bCM:&tbnh=68&tbnw=57&prev=/images?q=Target+Corporation+logos&start=40&ndsp=20&svnum=10&hl=en&lr=&sa=N

http://www.carnival.com/

http://images.google.com/imgres?imgurl=http://www.kbro.com/images/W_Hotels_logo.gif&imgrefurl=http://www.kbro.com/forum.html&h=104&w=85&sz=2&hl=en&start=54&tbnid=2SFFSNI9VXQYIM:&tbnh=84&tbnw=69&prev=/images?q=W+hotels+logo&start=40&ndsp=20&svnum=10&hl=en&lr=&sa=N

http://images.google.com/imgres?imgurl=http://miami-hotels.tee-times-usa.com/images/hotels/miami/westin-diplomat-logo.jpg&imgrefurl=http://miami-hotels.tee-times-usa.com/westin-diplomat.htm&h=81&w=150&sz=4&hl=en&start=158&tbnid=N7iTlqlbsNa-oM:&tbnh=52&tbnw=96&prev=/images?q=Westin+hotels+logo&start=140&ndsp=20&svnum=10&hl=en&lr=&sa=N

http://images.google.com/imgres?imgurl=http://www.starwoodhotels.com.sg/sheraton/images_c/sheraton_chead_logo.jpg&imgrefurl=http://www.starwoodhotels.com.sg/sheraton/city_index.html?IM=CORP_HP_TL_JPDRE_Q4_JP&h=160&w=240&sz=9&hl=en&start=6&tbnid=9MeZaKLkz_EDuM:&tbnh=73&tbnw=110&prev=/images?q=sheraton+hotels+logo&svnum=10&hl=en&lr=

http://go.msn.com/AH/0/

http://images.google.com/imgres?imgurl=http://money.cnn.com/blogs/browser/uploaded_images/logo_facebook-rgb-7inch-706175.jpg&imgrefurl=http://profile.myspace.com/index.cfm?fuseaction=user.viewprofile&friendID=25325&h=385&w=1024&sz=25&hl=en&start=17&tbnid=YHvOddNaq6jV_M:&tbnh=56&tbnw=150&prev=/images?q=facebook&gbv=2&svnum=10&hl=en

http://www.cox.com/

http://welcome.hp.com/country/us/eng/welcome.html

http://www.intuit.com/

http://www.petsmart.com/ps/main.jsp?ASSORTMENT<>ast_id=2534374302023687&bmUID=1179240180487

http://www.wpp.com/wpp/

http://www.omnicomgroup.com/

http://www.cablevision.com/


The mobile shift is happening fast…


The Smartphone Majority Has Arrived: Penetration in EU5 at 64%

YoY Growth of 23%

in EU 5 and

Germany leading

the surge

74%

60%

60% 71%

60%

18%

21%

22%

25%

30%

UK

Italy

France

Spain

Germany

Smartphone Penetration

Source: MobiLens™.

Data based on 3 month moving average to Aug 2013

Year-on-Year smartphone

growth by country

© comScore, Inc. Proprietary. 6 Source: MobiLens™.


Rapid Rise of Tablet Ownership to 44 Million Units In EU5

Almost a Third of Smartphone Owners Use Tablets

0

5

10

15

20

25

30

35

40

45

Aug-11 Nov-11 Feb-12 May-12 Aug-12 Nov-12 Feb-13 May-13 Aug-13

Total Market

iPads

+237%

Tablet ownership 2 year trend to Aug 2013

(millions)

+145%

13.8

9.0

8.0 7.8 7.1

UK DE FR IT ES

Tablet ownership by market

(millions)


The smartphone has become the ultimate shopping companion…


Three Distinct Shopping and Transactional Behaviours Have Emerged

Using Mobile Phones Across The EU5 Region

m-Retail accessing retail sites, researching products

/ prices

m-Payments paying for

goods at POS

m-Commerce Making online

purchases



40% of Smartphone Owners Access Mobile Retail & m-Commerce

Sites Across EU5

Access to

retail &

m-commerce

sites

RETAIL & M-COMMERCE SITES

25% YoY growth across EU5

UK & Germany leading markets

47%

44%

40% 38%

30%

16%

31% 34%

32%

17%

UK Germany Italy Spain France

Penetration YoY Growth



41% of Smartphone Owners Do Shopping Activities With Their Mobile

Device

Access

retail &

m-commerce

sites

Shop using

Smartphone

SHOPPING ACTIVITIES


Spain and Italy leading Markets

60%

44% 40%

31% 31%

16%

38%

30% 29%

11%

Spain Italy Germany UK France




15% of Smartphone Owners Make Online Payments For Goods and

Services On Their Device

Access

retail &

m-commerce

sites

Shop using

Smartphone

Make

online

purchases

20% 17%

15%

10% 8%

29%

45%

49%

40%

20%

UK Italy Germany Spain France


ONLINE PAYMENTS


UK and Italy leading markets


Increasingly product awareness and consideration begins on the mobile

phone…


Source: comScore MMX Multi-Platform ™, August 2013, UK, 6+

MMX MP includes PC browsing, PC video streams, mobile browsing & apps (on-network only for

untagged apps), tablet browsing & apps for tagged sites & apps

UK Insights: Retail Sites Enjoy An Average 15% Uplift in Audience

Reach Through Mobile

Top UK retail online sites: share of PC and mobile access

59%

66%

68%

59%

62%

70%

77%

61%

9%

8%

10%

16%

14%

10%

13%

24%

32%

26%

22%

26%

24%

20%

10%

15%

Boots

John Lewis

Asda

Tesco

Argos

Apple

eBay

Amazon

PC Only PC & Mobile Mobile Only


1.7

3.0

3.2

16.6

23.1

Apple

Argos

Ikea

eBay

Amazon

Source: MobiLens™.


Mobile Retail Sites Accessed By 19% of Smartphone Base and

Growing 46% YoY Across EU5

Retail sites

26% 26% 16%

11% 10%

30%

48%

60%

83%

42%


Penetration Growth

Total reach of top 5 retail sites across EU5

(millions)

1.7

3.0

3.2

16.6

23.1

Apple

Argos

Ikea

eBay

Amazon



Entertainment Listings Sites Accessed By 18% of Smartphone Base

and Growing 28% YoY Across EU5

Retail sites

Entertainment

Listings

Total reach of top 5 Entertainment Listing sites across EU5

(millions)

22% 20% 18% 17%

12%

31%

18%

49%

19%

28%

Spain UK Italy France Germany

Penetration Growth

1.8

2.4

2.4

3.8

3.8

Coming Soon

Google

Cineworld

AlloCiné

IMDB



Auctions & Classifieds Accessed By 16% of Smartphone Base and

Growing 32% YoY Across EU5

Retail sites

Auctions &

Classifieds

Total reach of top 5 Auction/Classified sites across EU5

(millions)

25% 23%

12% 9% 7%

22%

40% 37%

43%

24%


Penetration Growth

0.7

0.9

1.8

1.9

23.3

PriceMinister

Auto Trader

AutoScout24

Gumtree

eBay

Entertainment

Listings



Price & Product Comparison Sites Accessed By 12% of Smartphone

Base and Growing 38% YoY Across EU5

Retail sites

Price Comparison Total reach of top 5 Price Comparison sites across EU5

(millions)

16% 15% 12% 10% 7%

59%

43%

23%

37%

27%

Italy Germany UK Spain France

Penetration Growth

1.2

1.6

2.3

2.4

2.6

Idealo

Billiger

Kelkoo

Ciao

Trovaprezzi

Entertainment

Listings

Auctions &

Classifieds



Travel Sites Accessed By 10% of Smartphone Base and Growing 35%

YoY Across EU5

Retail sites

Travel

Total reach of top 5 Travel sites across EU5

(millions)

15% 13% 9% 8% 7%

41%

33% 29%

42%

24%

Italy Spain UK Germany France

Penetration Growth

1.3

2.4

2.9

3.5

4.3

Atrapalo

eDreams

Lastminute.com

Expedia

Booking.com

Entertainment

Listings

Auctions &

Classifieds

Price

Comparison



Deal-A-Day Sites Accessed By 10% of Smartphone Base and Growing

29% YoY Across EU5

Retail sites

Deal-A-Day

Total reach of top 5 Deal-A-Day sites across EU5

(millions)

16% 11% 10%

7% 6%

46%

33%

14%

43%

7%

Italy Spain UK Germany France

Penetration Growth

1.2

1.3

3.6

3.9

11.0

Glamoo

Privalia

LivingSocial

Groupalia

Groupon

Entertainment

Listings

Auctions &

Classifieds

Price

Comparison

Travel



25-34 Year Olds Represent A Quarter of Those That Access Retail And

m-Commerce Sites

Retail sites

Deal-A-Day

Entertainment

Listings

Auctions &

Classifieds

Price Comparison

Travel

4.4 8.8 13.2 11.4 7.9 7.5

4.6 8.4 11.7 9.1 6.2 6.8

AGE 13-17 18-24 25-34 35-44 45-54 55+

53 %

47 %

Demographic profile of smartphone users that

access retail and m-commerce sites


Rising confidence in mobile online payments leading to more spending

on smartphones…



Majority Spend Up To €200 Across Euro Currency Markets

7%

16%

23%

22%

13%

19%

Germany

12%

19%

22% 18%

11%

18%

Italy

9%

15%

22%

22%

12%

20%

France

Monthly spend on smartphone online purchases

9%

14%

22%

21%

14%

20%

Spain

€20 or less

€21 - €50

€51 - €100

€101 - €200

€201 - €300

Over €300



In the UK Majority Spending Up to £100

Monthly spend on mobile online purchases

13%

26%

24%

12%

8%

17%

UK

£20 or less

£21 - £50

£51 - £100

£101 - £150

£151 - £200

Over £200



Clothing & Accessories Largest Mobile Purchase Categories

Across EU5

26% Electronics /

Appliances

Top purchase categories (% of total mobile purchaser base)

37% Clothing &

Accessories

24% Tickets

15% Meals

Delivered

18% Personal Care

13% Groceries

26% Books (exc. eBooks)

16% Daily Deals

11% Sports Gear



57% of Smartphone Purchasers Are Male And 25-34 Year Old Largest

Age Segment

3.2 9.6 16.3 12.8 8.4 6.8

2.8 7.7 12.4 9.4 5.2 5.4

AGE 13-17 18-24 25-34 35-44 45-54 55+

57 %

43 %

Profile of those who purchase goods and services on their smartphone


The smartphone is driving footfall and shaping shopping behaviour

in-store



Finding a Store And Comparing Prices Are the Most Popular Shopping

Activities on Smartphones

12%

14%

15%

16%

17%

21%

Checked Product Availability

Made Shopping Lists

Found Coupons/Deals

Researched Product

Compared Product Prices

Found Store Location

Shopping with smartphones EU5 (% of base)



Most In-Store Smartphone Shoppers are Taking and Sending Photos

of Products

2%

3%

5%

5%

7%

8%

11%

14%

14%

24%

Purchased goods online

Checked product availability

Found coupon

Researched product

Found store location

Compared prices

Scanned barcode

Texted or called someone

Sent photo of product

Took photos

In-store shopping activities with smartphones EU5 (% of base)

17% of mobile

online purchases

take place in-store



Different Shopping Activities Reveal Different Types Of Shoppers

3.5 9.3 17.3 14.7 9.1 7.5

2.9 6.6 10.6 8.5 4.7 5.4

AGE 13-17 18-24 25-34 35-44 45-54 55+

61 %

39 %

Demographic profile of in-store shoppers

3.5 7.6 8.6 7.6 6.4 8.0

5.3 11.0 11.7 9.8 8.6 12.0

AGE 13-17 18-24 25-34 35-44 45-54 55+

42 %

58 %

Those who compare prices - ‘showroomers’ Those who text or call someone about

product



Different Shopping Activities Reveal Different Types Of Shoppers

4.0 10.0 14.0 13.0 10.0 11.0

3.0 6.0 8.0 8.0 6.0 7.0

AGE 13-17 18-24 25-34 35-44 45-54 55+

62 %

38 %

Demographic profile of in-store shoppers

3.0 7.0 9.0 9.0 6.0 7.0

6.0 11.0 12.0 10.0 8.0 12.0

AGE 13-17 18-24 25-34 35-44 45-54 55+

41 %

59 %

Those who scan bar codes Those who take or send photos of products

to friends/family

© comScore, Inc. Proprietary. 31 Source: Custom Research

Based on April 2013 data

The UK POS Mobile Payments Market Showing Small Shoots But

Remains Relatively Small

Point of Sale Mobile Payments

0.4 million conduct

NFC mobile transaction

using smartphones

0.6 million conduct app

bar code transactions

using smartphones

© comScore, Inc. Proprietary.

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m-Retail, m-Commerce & m-Payments: The Rise of the 3 Ms