PATH TO PURCHASE STUDY                                                                        AUGUST 2012       Mobile Sea...
CONTENTS1 KEY FINDINGS3 DEFINING THE MOBILE TRAVEL USER4 MOBILE TRAVEL USER PROFILES5 PATH TO PURCHASE STAGE 1: AWARENESS8...
1       EXECUTIVE SUMMARY / KEY FINDINGS                        The xAd/TelmetricsMobile Path to Purchase Study was develo...
2    xAd/TELMETRICS MOBILE    PATH TO PURCHASE STUDY    INTRODUCTION    As both smartphone and tablet adoption continues t...
3                              Of Smartphone  Tablet Users,                                   Across Categories           ...
4Travel Site                 Search EngineTravel SiteSocial                      Search Engine                            ...
5       PATH-TO-PURCHASE STAGE 1: AWARENESS        When we talk about mobile user awareness related to Travel content, we ...
6A third reason for the increased app usage is related to the use of mobile devices as our new “go to” for localbusiness i...
7     DISSECTING TRAVEL SUB-CATEGORY ACCESS     When we split each of these mobile Travel subcategories into app vs. brows...
8     PATH-TO-PURCHASE STAGE 2: CONSIDERATION    This study reveals that mobile users are typically in this all-important ...
9   Of all the activities performed by mobile Travel users (both smartphone and tablet users), the act of looking up   pri...
37%                                                                                100                                    ...
11           PATH-TO-PURCHASE STAGE 3: PURCHASE     $                   HOW QUICKLY USER LOOKS TO MAKE A DECISION         ...
12                              TOP 3 REASONS FOR BOOKING          SMARTPHONE 			                                         ...
13   SUMMARY                                                       TERMINOLOGY   Similar to other recent studies, the acti...
14     ABOUT THIS REPORT     xAd and long-time partner Telmetrics joined to produce this proprietary study designed to bet...
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Mobile path to purchase travel - Report

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Mobile path to purchase travel - Report

  1. 1. PATH TO PURCHASE STUDY AUGUST 2012 Mobile Search Is EverywhereON THE GO A CAR IS THE MOSTPOPULAR ON THE GO LOCATION FOR MOBILE SEARCHES 68% Smartphone 72% Tablet USERS MOSTLY USE THEIR DEVICE USERS MOSTLY USE THEIR DEVICE WHEN THEY ARE ON THE GO WHEN THEY ARE AT HOME Phone Numbers, Directions, Deals Are Critical Mobile Content IN PARTNERSHIP WITH: Of Smartphone & Tablet Users, SMARTPHONES Across Categories 73% 84% USED MORE TO TABLETS FIND AND USED MORE FOR UP TO UP TO 30 CONTACT xAd, Inc. | 1230 Avenue of the Americas | 7th Floor | New York, NY 10020 | P: 347.501.0436 | xAd.com © RESEARCH  PRICE COMPARISONS, BUSINESSES kcap snoci rotcev© Telmetrics, Inc. | 2680 Skymark Avenue| Suite 900 | Mississauga, Ontario, Canada L4W 5L6 | P: 800.255.3224 | Telmetrics.com vector icons p AND REVIEWS vector icons pack
  2. 2. CONTENTS1 KEY FINDINGS3 DEFINING THE MOBILE TRAVEL USER4 MOBILE TRAVEL USER PROFILES5 PATH TO PURCHASE STAGE 1: AWARENESS8 PATH TO PURCHASE STAGE 2: CONSIDERATION11 PATH TO PURCHASE STAGE 3: PURCHASE13 SUMMARY13 STUDY METHODOLOGY13 TERMINOLOGY14 ABOUT THE REPORT The xAd/Telmetrics Mobile Path to Purchase Study
  3. 3. 1 EXECUTIVE SUMMARY / KEY FINDINGS The xAd/TelmetricsMobile Path to Purchase Study was developed to give marketers an understanding of how mobile is used during the consumer’s path-to-purchase in one of the fastest growing mobile usage categories – Travel. Findings from this study will help advertisers understand the crucial role that mobile plays in each stage of the purchase process, allowing advertisers to better reach and engage this highly fragmented and active audience. Below are key data points from the first edition of this three-part study pertaining to the Travel category. • 8% of the smartphone audience accessed travel related information during the study period 8 – April 2012 • lthough a large portion of smartphone users have accessed travel related content – (4) A distinct Mobile Travel User Profiles stood out as over indexing in usage, each with varying demographics, mobile usage behaviors and intent • Travel Researcher • Price Hunter • Frequent Traveler • Local Traveler • hile the majority of users where researching or seeking additional information, mobile travel W users showed strong conversion behaviors • More than 1/3 accessed information such as a business location, directions, or a business phone number • More than 30% of mobile travel users are looking to make a purchase within the day • In fact, almost half of mobile travel users go on to make a purchase related to the activities they completed via their mobile device – with 29% completing the purchase on the smartphone itself • seen in other studies, tablet and smartphone users exhibit different behaviors as As smartphone activities over-index tablets in activities related to finding and contacting businesses – while tablets over-index in more research related activities like price comparisons, looking up reviews, etc. • onsidering that only ¼ of both smartphone and tablet users have narrowed down their C activities to a specific brand or purchase, what users see and find on their mobile device can impact their future purchase decisions • n fact, the majority of mobile Travel users notice mobile ads, with nearly 1 out of 3 clicking on I the ad for more information • 75% noticed ads via smartphone • 60% noticed ads via tablet • ds that are locally relevant or offer a coupon or promotion are most likely to be clicked on by A mobile Travel usersThe xAd/Telmetrics Mobile Path to Purchase Study
  4. 4. 2 xAd/TELMETRICS MOBILE PATH TO PURCHASE STUDY INTRODUCTION As both smartphone and tablet adoption continues to rise, a handful of popular categories have emerged including Travel, Restaurants, and Auto. Based on the research to date, each of these categories has an ex- tremely relevant opportunity in mobile. But even with their growing popularity in the mobile space, user engagement related to these categories has not been explored at the depth necessary to truly advance industry understanding - therein lies the ultimate goal of this report. xAd and long-time partner, Telmetrics, have partnered with Nielsen to develop this first-to-market mobile behavior study that helps track the mobile consumer from initial purchase intent to conversion, while also exploring ad effectiveness, and dissecting the various profiles of mobile Travel users. This study combines online survey data from 1,500 U.S. tablet and smartphone users, as well as actual observed behaviors from Nielsen’s Smartphone Analytics Panel of 6,000 Apple and Android users – each group reporting they had engaged in activity related to Travel, Restaurants, and/or Auto in the past 30 days. In an effort to do proper justice to the over-abundance of data collected from this report, we’ve decided to digest and release each category individually. This series of reports will uncover mobile user preferences and activities related to the Travel, Restaurant, and Auto categories – findings that will become essential resources for the mobile industry going forward. First up is Travel – a timely release alongside the busy summer vacation season, and a category that has seen significant growth in the last year, landing in the top 5 mobile growth categories according to eMarketer, Nielsen and Comscore. In Q1 of this year alone, eMarketer reported a 200% growth in mobile ad spending for the Travel industry. But as Travel brands recognize the value of mobile and hop on board, they are often doing so blindly and without the in-depth experience and knowledge necessary to effectively reach and engage this desirable audience. Why? First, mobile is growing faster than any other new media before it. As a result, there is very little that has been done in the way of past research, or experiences to build from. Second, research related to mobile Travel user behavior has never been explored and made available to the industry – until now. INTERACTING WITH TRAVEL CONTENT ON THE SMALLER SCREEN The results of this report indicate that nearly 9 out of 10 smartphone users accessed Travel content on their devices in April 2012, spending on average 93 minutes per month on Travel applications and websites – 94% of which was done in application. Per recent trending in the Travel category, time spent interacting with Travel content via mobile device will only continue to grow. Therefore it’s important to understand how and why the mobile user interacts with Travel content in order to provide greater relevancy, and better target the correct consumer audience segments when planning mobile advertising. First, we’ll get to know the mobile travel user and explore four key user profiles revealed through this study. Second, we’ll follow the three key stages in mobile consumer interaction; Awareness, Decision, and Purchase. The data provided in this report is organized to better understand the unique behaviors found within these three key stages and to identify the Travel industry opportunities available therein. And finally we will uncover what makes mobile advertising effective in the eye of the Travel user. The xAd/Telmetrics Mobile Path to Purchase Study
  5. 5. 3 Of Smartphone Tablet Users, Across Categories 73% 84% TS E FOR UP TO UP TO  PRICE SONS, EWS WHO IS THE MOBILE TRAVEL USER Look for/use phone numbers Look up a business location to contact businesses or map/directions Mobile users interacting with Travel content represent a diverse group of smartphone and tablet owners. While the data below illustrates prevalence with primarily younger, Caucasian males, the differences in y To Mobile Path Gender, Household Income, and Education levels are less severe. Therefore ethnicity and age alone should To Purchase not be the driving factor in developing Travel related advertising on mobile.SONS FOR MOBILE TRAVEL USER DEMOGRAPHICS MOBILE ADS 0% 10% 20% 30% 40% 50% 60% 70% 80% PROMOTIONS ND 2 OUT OF 3 1 OUT OF 3 GENDER CONSUMERS NOTICE MOBILE ADS MALE FEMALE RESULT IN AN AD CLICK 48% 52% AGEers Make Quick Purchase Decisions 18-24 18% 25-34 27% 35-44 21% S: 64% Intent to make purchase within the day 45-54 16% 18% 87% 33% 49% 55+ 44% T TO UR HH INCOME Restaurants Travel Automotive $25K 13% $25 TO $50K 19% $50K TO $100K 34% $100K TO $150K 21% MIXED FUTURE $150K Both quick Research based 12% conversions with longer term research conversions Automotive EDUCATION Travel SOME HIGH SCHOOL 6% COMPLETED HIGH SCHOOL OR EQUIVALENT 9% tent Is Strong SOME COLLEGE (BUT NO DEGREE) 29% ASSOCIATES DEGREE 12% Searches that result in Purchases R BACHOLARS DEGREE 29% GRADUATE DEGREE 16% 85% ETHNICITY% WHITE/CAUCASIAN 72% 51% 12% BLACK/AFRICAN-AMERICAN ASIAN/PACIFIC ISLANDER 7% MIXED RACE 3% OTHER 6%e forches 46% In order to better identify the user variety available within the mobile Travel audience, we went beyond the user survey portion of this study and dug deep within the actual user behavior conducted by the Nielsen Smartphone nsistent across smartphones and tablets analysis has never before been conducted in mobile, and as the first to provide this Analytics Panel. This level of type of mobile research, we are excited to introduce the industry to the four mobile Travel user profiles uncovered. Source: xAd/Telmetrics Mobile Path to Purchase Study 2012. Visit mobilepathtopurchase.com for more info. The xAd/Telmetrics Mobile Path to Purchase Study
  6. 6. 4Travel Site Search EngineTravel SiteSocial Search Engine Email MOBILE TRAVEL USER PROFILESTravel Site Search EngineSocial EmailOtherSocial EmailTravel Site Search EngineOtherOtherSocial Email Although there are a variety of user types accessing Travel content from their smartphone, throughout the courseOther of this research four distinct Mobile Travel User Profiles stood out - each with varying demographics, mobile usage 12% behaviors, and intent. 12% 12% 30% 12% 12% 30% THE TRAVEL RESEARCHER 12% 12% 30% 19% This first profile really breaks down previously conceived notions on the purchase 12% 30% intent of smartphone users. The Travel Researcher is defined by the sheer variety of 19% 27% activities and content they consume during a slightly longer path to purchase – 19% 27% contradicting previous claims of impulse shopping by smartphone users as a whole. 27% 19% Travel Researchers are largely Caucasian females, age 25-54 with a household income 27% above $100k. During the course of their Travel consideration, they utilize Travel apps and mobile sites, search engines, social media and email, among other tools. 29% THE PRICE HUNTER Yet another user profile supporting the use of mobile devices for more than just 29% 29% 60% immediate, impulse purchasing - the Price Hunter is defined by their quest to research 11% 60% and compare the best pricing in order to make an economically based decision 29% 60% regarding their Travel plans. These deal seekers utilize social alongside Travel app and 11% 11% browser based sites to uncover the best deals and promotions, with heavy preference 60% on Travel utility apps to compare prices. This group is a primarily female, non-white 11% audience, age 25-54 with a household income less than $75k. 6% 1% 6% THE FREQUENT TRAVELER 6%1% 1% This user group is defined by the extensive amount of Travel research conducted, and 6% often booking being done within a month’s time. The Frequent Traveler is not as 1% conscious of pricing, and therefore base their Travel planning on scheduling options and availability, with a few perks thrown in for comfort. These folks are Travel loyalists, 93% and are often members of a few hotel or airline points programs and so they choose 93% to conduct much of their search and eventual booking through these portals. This 93% male-dominated category over-indexes in the reach of white, Asian-American and 93% African-American mobile users, age 25-54 making more than $50k per year. THE LOCAL TRAVELER Navigation apps and local directories reign supreme in the world of the Local Traveler, who utilizies these convenient mobile tools to plan their more locally-based trips before 17% and during their journey. The Local Traveler incorporates activities conducted by Price 17% 63% Hunters in that pricing is a major factor of their trip, but the apps utilized during their 17% 20% 63% process of research and purchase are quite different. Apps including Gas Buddy and Maps 20% 17% 63% are prevalent in the Local Traveler’s research activities, as they hunt for the best deals 20% on their next fill-up and plan their trip based on distance. Of course navigation apps are 63% utilized during their trip in order to lead the way, but also to avoid traffic bottlenecks and 20% tolls that could leave them running idle, and draining cash on the highway. This group Travel Site Search Engine consists of mostly white and Hispanic males, age 25-54, bringing in between Social Email $25k and $75k per year. Other The discovery of these four distinct Travel user groups now arm Travel marketers with the intel necessary to develop a mobile ad campaign that truly targets their intended audience. Taking into account far more than the 12% typical user demographic information, these profiles tell a story about a mobile user’s place in the Travel path to 30% 12% purchase, how they prefer to engage with Travel content – ie. via apps or mobile sites – and their level of intent to purchase. This level of user insights is essential in developing a performance-driven mobile Travel campaign that 19% increases user engagement and eliminates ad waste. 27% The xAd/Telmetrics Mobile Path to Purchase Study
  7. 7. 5 PATH-TO-PURCHASE STAGE 1: AWARENESS When we talk about mobile user awareness related to Travel content, we are looking to understand the behavior that occurs within that first step of seeking to access Travel content via a mobile device, as well as the initial experience that occurs once that step has been taken. Mobile users have a number of different options available to them when looking to interact with Travel content on their device. They can access content via mobile browser such as Safari or Google, or interact directly with a downloaded app. With browser access, mobile users can head to a Travel brand website – perhaps their favorite airline or hotel chain – or choose a Travel utility provider that aggregates airline, hotel, rentals cars, etc. such as Kayak or Priceline. The same choice is available to mobile users who choose to interact with Travel content directly from an app, as many Travel providers and utility brands have made their business available via mobile application. The data provided in this section will dissect the driving factors that lead mobile users to access Travel content via mobile app or website, and then how they prefer to interact with Travel content once they have gained access. CHOOSING THE PREFERRED ACCESS POINT: APP VS. BROWSER Mobile user engagement with Travel is rooted in overall brand awareness. In fact, 42% of smartphone users engage with an app or website of a brand they are already familiar with, and 40% choose to utilize an app or website they had used previously. According to the research, mobile applications had the 76.6M largest overall reach of Travel users. The data also showed 74.4M that application users spent more time consuming content 88% 85% (1:21 on average) vs. web users (0:11 on average). Specifically, tablet users tend to frequent the Travel comparison or utility websites (51%), while smartphone users prefer the app version of travel comparison or utility sites (35%), followed by branded or local directory apps (31%). 33.5M Overall, mobile Travel user preference of applications is no surprise to anyone who has ever interacted with both a 38% mobile browser and application to access similar information. In many cases, mobile applications provide a far quicker method of finding the information requested. An additional reason for Travel user preference of apps over browser is that Travel brand sites like Delta.com or Hilton.com now direct users to utilize the brand app upon visiting the website. Just visit your favorite Travel brand website today on your mobile Total Apps Web device and more than likely the site will auto identify you as a mobile user, promote the availability of the app, and ask you to download it. The reason for this is that in an application Travel brands can better control user experience, offer better functionality, etc.The xAd/Telmetrics Mobile Path to Purchase Study
  8. 8. 6A third reason for the increased app usage is related to the use of mobile devices as our new “go to” for localbusiness information such as addresses, phone numbers, and maps and driving directions. In fact, of all of the mobilesites and applications accessed for Travel related content – local directory / navigational sites/apps ranked the highest.The truth is big Travel brands face growing competition from local or navigation based mobile properties especially aslocation’s part in the mobile experience continues to expand. The value of these properties is that a number of differentsearches can be done within, pulling a wide range of data necessary when quickly and effectively researching Traveloptions. That same all-in-one functionality is the basis for Travel utility apps and browser based sites such as Trip Advisoror Expedia – whose popularity with Travel users is second only to the local directory/navigational properties. Travelutility apps have become well-known brands themselves, providing an all-in-one experience where users can researchand compare Travel options based on location, pricing, timing and amenities. This convenient and concise userexperience has created significant competition for Travel’s branded mobile properties – few of which have evenbegun to explore their potential in mobile. COMBINED WEB / APP REACH % BY SUB-CATEGORY — TRAVEL US, ANDROID AND iPHONE, APRIL 2012 85.4% 31.0% 11.5% 9.3% 7.5% 7.4% Local/Navigation Multi-Category Travel Airlines Hotels Travel Destinations Ground Transportation Google Maps Gas Buddy Southwest Hilton Walt Disney World Enterprise MapQuest TripAdvisor Delta Marriot Six Flags Alamo Sprint Navigator Expedia American Airlines Hotels.com Sea World Amtrak VZ Navigator Priceline United InterContinental Vegas.com MTA Telenav Kayak JetBlue Booking.com Cedar Point Union Mobile Travel user engagement preferences also vary by Travel subcategory such as Hotel, Airline, Car Rental, etc. Though local/navigation and multi-category Travel apps and sites command a larger overall audience, the options available to users within the various Travel sub-industries remain significant for marketing. Use of airline brand app and web properties including Southwest, Delta, and JetBlue, accounts for 11.5% of overall category reach. Hotel related properties including both brand and third-party providers account for 9.3%, Resort and Destination properties reach 7.5%, and Ground Transport just below that. Activity tracked within these sub-categories reveals frequency of both brand and third-party mobile properties, an important factor to include when planning campaigns and sizing up the competition. The xAd/Telmetrics Mobile Path to Purchase Study
  9. 9. 7 DISSECTING TRAVEL SUB-CATEGORY ACCESS When we split each of these mobile Travel subcategories into app vs. browser activity, a very revealing story comes to light. For the sake of broad reach, mobile browser access is preferred when engaging directly with Travel brand sites, while users accessing the Travel utility and navigation services still prefer application access. Airline Brand Transportation Brand Browser Reach App Reach Browser Reach App Reach Hotels Brand Multi-Category / Utility Map / Navigation Browser Reach App Reach Browser Reach App Reach Browser Reach App Reach But the real story in comparing these subcategories is the level of user engagement. While mobile browsers may have a higher reach over applications in some instances, the engagement level of users interacting with Travel apps is always far greater. This finding is evident in the amount of time users log while interacting with these Travel subcategories via mobile app. Map and navigation apps log the longest average time per month. We can correlate that with the use of smartphones as in-vehicle navigation tools. But the surprise runner up in monthly minutes is Ground Transportation. Apps for rental car companies, subway lines and commuter rail are racking up a great deal of user time in app – a prime and largely untapped opportunity for the ground transportation sector itself, as well as other Travel-related advertisers. Apps provide a platform that engages users to stick around and really find what they are looking for, and this elongated expereince provides plenty of opportunity for targeted ads to not only get noticed, but to truly engage Travel users. AVERAGE MONTHLY TIME PER USER In Browser In App Airline 00:08:41 00:20:23 Ground Transportation 00:12:35 00:46:39 Hotels 00:06:18 00:09:05 Multi-Category / Utility 00:08:00 00:12:16 Map / Navigation 00:04:02 01:16:45The xAd/Telmetrics Mobile Path to Purchase Study
  10. 10. 8 PATH-TO-PURCHASE STAGE 2: CONSIDERATION This study reveals that mobile users are typically in this all-important research and consideration phase when accessing Travel-related content from their mobile device. In fact, when mobile users begin to interact with Travel-related content from their device, just ¼ of those users (both smartphone and tablet) have narrowed down their research activities to a specific brand or purchase. This means that the information (including advertisements) users see and find on their mobile device has the opportunity to truly guide their decisions during this crucial stage of their purchase process. STAGE IN DECISION WHEN FIRST ACCESSING APP/WEBSITE SMARTPHONE TABLET 0 0 2% 1% 11% 11% 20 20 30% 34% 40 40 17% 15% 60 60 26% 80 27% 80 13% 12% 100 100 Not sure/Don’t remember I had narrowed down what I was looking for I wasn’t really looking for a specific airline/hotel/rental car service, just browsing I had a general idea of what I was looking for I knew exactly what I was looking for I had no idea what I was looking for The xAd/Telmetrics Mobile Path to Purchase Study
  11. 11. 9 Of all the activities performed by mobile Travel users (both smartphone and tablet users), the act of looking up pricing or price comparison, followed by the access of general Travel related information, are the most popular. This behavior proves that although many assume smartphone activity drives quick, impulse purchases of convenience, mobile users infact demonstrate a longer and more deliberate process across both device types. TOP TRAVEL APP/WEBSITE ACTIVITIES BY DEVICE 58% Look up pricing information/compare prices 67% 37% Look up flight/hotel/rental car general information 38% Look up location of hotel/rental car service 26% 28% 26% Look up directions to visit hotel/rental service 21% 22% Use review to decide on airline/hotel/rental car 26% SMARTPHONE Find coupons/deals/promotions to use 22% TABLET on airline/hotel/rental service 25% Call the business for more information 19% 13% THE ROLE OF LOCATION While the majority of mobile travel users where researching or seeking additional information, they showed a strong preference for local information with 1 out of 5 interested in local business / contact information (such as a phone number or access to a business location). This behavior was seen across both smartphone and tablet users – despite the fact that the majority (63%) of smartphone activity happens on “the go” while 75% of tablet activity happens in the home. When working with mobile devices, the influence of location can be direct – as in the vicinity of an intended purchase, or indicative of the location from which a user is conducting their mobile Travel activity – ie. work, home, or in the car. As seen in other studies, tablet and smartphone users exhibit different behaviors in terms of location of usage – with more smartphone usage happening outside of the home, and the most tablet usage occurring inside the home. But it’s the breakdown of the outside the home segment that makes things interesting. SMARTPHONE USAGE TABLET USAGE HOME OUT OF HOME 37% 25% HOME OUT OF HOME 63% 75%The xAd/Telmetrics Mobile Path to Purchase Study
  12. 12. 37% 100 100 10 10in order 100 60 100 60 8037% 80 15% 4% 8037% 40 6% 80 40 60 60The smartphone is truly a device of convenience - a constant companion as essential to our daily lives as the keys to ourhome. This is evident in the variety of locations where smartphone users access Travel content. Of the 63% conducted 15%outside the home, the greatest percentage of Travel search via smartphone is done in the car (28%) and at work (15%).While we hope users are not doing so while driving or skirting their responsibilities at work, each of the “outside the 75% 28% 60 4% 20 60home” access locations we discovered reveal very different opportunities to access the Travel user related to geography, 20time of day, and intent. 40 6% 40 15% 2% 2% LOCATION USAGE DETAILS 2% 4% 100 SMARTPHONE 40 100 6% TABLET 28% 0 1% 40 0 20 20 Home Work Schoo 2% Outside Car Store 2% Public Transportation Restaurants 8% Hotel 2% 28% Airport Car Dealership 1% Gas S 8037% 20 80 0 1% 20 0 3% Other 6% 2% Home Work School 1% 2% Outside Car Store 1% 2% 75% 3% Public Transportation Restaurants Hotel 60 60 0 1% Airport 0 Car Dealership 1% Gas Station/Mechanic/Body Shop 15% Home Other Work School Outside Car Store Public Transportation Restaurants Hotel 4% 40 6% 40 Airport Car Dealership Gas Station/Mechanic/Body Shop Other 8% 28% 1% 20 20 3% 6% 2% 1% 2% 1% 2% 3% 0 1% 0 1% Home Work SchoolThough pricing and location-based info are widely sought afterStore Outside Car across both devices, a deeper analysis is necessaryin order to dissect the portal types accessed while users are looking to resolve specific travel related needs. For instance, Public Transportation Restaurants Hotelconsumer reviews are a far more important element for the Travel Station/Mechanic/Body Shop coupons and promotions are the Airport Car Dealership Gas Researcher, whilebasis of research conducted by the Price Hunter. We found that certain preferences are indeed apparent and shared by Otherboth smartphone and tablet users when in search of specific content; such as user preference of utility applications forpricing a trip, or for a local directory sites or apps for local business information including phone numbers, or maps anddriving directions. TOP MOBILE PLATFORM USED IN PAST 30 DAYS FOR SELECT ACTIVITIES SmartPhone Tablet Looking up/Comparing Prices Utility Apps Coupons and Promotions Utility Apps and Websites Local / Directory Application Reviews Local / Directory Website Utility Apps Looked up business location / Directions Local / Directory Apps and Website Booked Appointment / Reservation Branded Application Placed a call/Contacted business Local / Directory Website and Branded Application Branded Application The xAd/Telmetrics Mobile Path to Purchase Study
  13. 13. 11 PATH-TO-PURCHASE STAGE 3: PURCHASE $ HOW QUICKLY USER LOOKS TO MAKE A DECISION Although the majority of users are still in the research phase of their shopping process – 1 out of 3 are looking to make a purchase within a day. In fact, approximately 20% are looking to do so immediately or within the hour, revealing an important window of opportunity for marketers to reach users at this final stage in their path-to-purchase. SMARTPHONE TABLET 0 0 7% 15% 20% 02 02 16% 04 04 35% 42% 06 06 15% 08 08 13% 9% 9% 001 11% 001 9% Immediately Within hour 021 Within day Within month Longer than a month Wasn’t looking to book anything MADE A PURCHASE RELATED TO VISIT ON APP/WEBSITE SMARTPHONE USAGE TABLET USAGE There is no doubt mobile devices are an effective tool in driving consumers toward purchase. Overall, nearly half of users go on to make a purchase NO YES NO YES related to the activities they 57% 43% 52% 48% completed via their smartphone or tablet – 37% of which actually complete the purchase within their mobile device. But what actually drives a user to convert during this last stage in the path to purchase?The xAd/Telmetrics Mobile Path to Purchase Study
  14. 14. 12 TOP 3 REASONS FOR BOOKING SMARTPHONE TABLET » Right Price » Right Price » Specific Brand Preference » Specific Brand Preference » Prices Set to Increase Soon » Good ReviewsWhether driven by current economics or simply a desire to hunt down the best deal, a staggering 73% ofsmartphone users booked their Travel because the price was right – 19% driven by a deal that called forimmediate action.When users take the step to complete a Travel transaction, the very nature of each device comes into play. Tablet usersare more likely to complete their purchase within their device, utilizing either app, browser of by calling the businessdirectly (45%). But because smartphone users are a more mobile, “on the go” audience, we find less complete atransaction using their device (39%) and instead opt to complete a purchase either at the business location or viadesktop computer – common and significant behaviors the industry is yet unable to track.DRIVING ACTION THROUGH MOBILE ADVERTISEMENTBy dissecting these three key stages in the mobile Travel user’s path to purchase, we can better understand whateffects mobile behavior – empowering travel marketers with the knowledge they need to engage their target mobileaudience. Through this research we have discovered that price, location, and relevance are key elements of userconsideration when moving toward purchase. In fact, 57% of smartphone users and 52% of tablet users report clickingon a mobile advertisement because it was targeted to their current needs or recent search behavior. Local relevanceremains high throughout the mobile Travel user path to purchase with 73% of smartphone and 70% of tablet usersreporting they are more likely to click on ads that include or are targeted based on location. Price is second only to localrelevance for users of both device types as 72% of smartphone users and 69% of tablet users click on ads that offercoupons or promotions. Utilizing targeted ad placements to provide users with the information they need at the rightplace and time will not only increase ad engagement, but overall sales as well. ADVERTISING MOST LIKELY TO CLICK ON BY DEVICE 73% 72% 70% 69% Smartphone 65% Tablet 59% 55% 52% 16% 15% 14% 13% 8% 8% 7% 4% Ad that’s locally Ad that offers Ad that features Ad that doesn’t Ads with phone Simple text ads An ad that’s Ads that relevant to me coupon/promotion a brand I know take me outside number/clear way interactive incorporate app/website of contact multimedia The xAd/Telmetrics Mobile Path to Purchase Study
  15. 15. 13 SUMMARY TERMINOLOGY Similar to other recent studies, the activities conducted Mobile Application/App: mobile content portal which does by smartphone and tablet users can vary greatly. not require access via a mobile browser, though does still This is largely due to the unique characteristics of mobile require internet access to reach. devices including their size and portability, as well as the functional variety from mobile web and app usage, Mobile Website/WAP: mobile content source accessible via to click-to-call. These differences influence exactly a mobile browser such as Google or Safari, which requires where smartphones and tablets are commonly utilized, internet access to reach. Desktop-accessible websites visited whether at home, work, or on the go. From these with a smartphone are then called mobile websites. differences in usage location, a variety of different intensions and activities are revealed. The smartphone Mobile Property: for the sake of this report, this refers to a is favored for local info and navigation, while the tablet combination of both applications and mobile websites - as is typically used for more leisure research and browsing. many large brands and businesses often have both available But an important trend occurring alongside the growth to consumers. of smartphone use is the utilization of handheld devices for the same long-tail research commonly assumed to Brand Application/App: mobile content portal specific to occur only on desktop computers. This study revealed a brand or organization - such as Delta or JetBlue. that for Travel needs, the smartphone is not just a tool meant for quick, impulse info and decision making, Brand Website: mobile content source specific to a brand but that it’s also utilized as part of a longer and more or organization, such as Delta.com or JetBlue.com, reachable informed mobile path to purchase. These insights reveal via a mobile browser. the wider scope of opportunity available to mobile marketers via smartphones and tablets. Utility/Multi-Category Application/App: mobile content portal which aggregates information from a number of other STUDY METHODOLOGY content sources and provides that information in an all-in-one The xAd/Telmetrics Mobile Path to Purchase Study was mobile tool. These include Priceline, Travelocity and the like. conducted in conjunction with Nielsen. The results are based on data from an online survey of 1,500 U.S. Utility/Multi-Category Website: mobile content source smartphone and tablet users, as well as and actual which aggregates information from a number of other content observed consumer behaviors from Nielsen’s sources and provides that information in an all-in-one mobile Smartphone Analytics Panel of 6,000 Apple and Android tool, reachable via a mobile browser. These include Priceline. users. Data from Nielsen’s Smartphone Analytics panel com, Travelocity.com and the like. is included to supplement the survey results. Local Directory Application/App: mobile content portal Survey respondent totals are as follows where users can search for businesses and information (none of which are mutually exclusive): regarding a specific location. These include Yodle, SuperPages, • Smartphone owners: 1,371 and the like. • Tablet owners: 738 • Restaurant users: 1,413 Local Directory Website: mobile content source where users • Travel users: 931 can search for businesses and information regarding a specific • Automotive users: 674 location, reachable via a mobile browser. These include Yellowpages.com, Local.Yahoo.com or the like. Navigation Application/App: mobile content portal where users can search for information regarding a specific location, including map and driving directions, turn-by-turn navigation, and local points of interest. These include VZNavigator, Google Maps, and the like. Navigation Website: mobile content source where users can search for information regarding a specific location, including map and driving directions, and local points of interest, reachable via a mobile browser. These include Mapquest.com, HopStop.com or the like.The xAd/Telmetrics Mobile Path to Purchase Study
  16. 16. 14 ABOUT THIS REPORT xAd and long-time partner Telmetrics joined to produce this proprietary study designed to better understand mobile activity among Travel, Restaurant, and Automotive users with the goal of more effectively reaching these industry consumers with mobile search and display advertising. As the first report published from this multi-category research project, it focuses on mobile user behavior related to the Travel category. Additional study details and findings can be found at www.MobilePathtoPurchase.com. For questions or to provide feedback, please contact us at 415.814.9837 or GetLocal@xAd.com. ABOUT XAD Since 2009, xAd has grown to become one of the largest mobile advertising networks in the U.S. and the only one offering the ability to target ads using a combination of accurate location signal and search context. Across its network, xAd aggregates and manages billions of monthly ad impressions from which it derives the largest supply of location based advertising inventory in the market. For over a million national and local advertisers, xAd delivers targeted mobile location@scale. xAd is based in New York City with several satellite offices across the U.S and Internationally. For more information, visit xAd.com. ABOUT TELMETRICS For more than 20 years, Telmetrics has been the call measurement industry leader. Telmetrics’ call tracking solutions, which are available in North America and across Europe, enable marketers to evaluate consumer phone response to ads by providing valuable ad feedback and consumer call intelligence. With greater visibility into advertising performance across all media channels—digital, mobile, print and more— media publishers, agencies and advertisers can optimize the media mix for higher quality lead generation, resulting in increased revenues and a more complete picture of ROI across converging media. For more information, visit Telmetrics.com. ABOUT NIELSEN Nielsen Holdings N.V. (NYSE: NLSN) is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and related properties. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA and Diemen, the Netherlands. The xAd/Telmetrics Mobile Path to Purchase Study

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