Retail, Mobile and OOH

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Understanding how consumers use their smartphones is key to how Posterscope plans OOH from a convergence point of view. Our recent partnership with EE embodies this philosophy. In “Retail, Mobile and OOH” we draw on various insights which helped formulate our view on the importance and role of smartphones in today’s retail landscape and how this converges with OOH.

We believe smartphones current role in the UK retail landscape is predominantly one of researching products and services, comparing prices and reading reviews rather than as a sales platform. We argue that the specific act of purchasing for the retail category is still dominated by physical stores in high street, malls and out-of-town locations and smartphones play a key role in driving and influencing these in store sales.

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  • Understanding how consumers are using their smartphones is key to how Posterscope plans OOH from a Convergence point of view. The recent EE Partnership with Posterscope has this at its core and in this presentation we hope to talk through a few sources of information that demonstrate the importance and role of Mobile in todays Retail landscape and how this may relate to OOHWe’ve split this into 3 main sections but within these included a lot of divider slides to make it easier for you to nick a few relevant slides for presentations!First of all we’re going to talk through the current status of Retail in Great Britain and how much of this is from E-Commerce, M-Commerce and Physical Stores. We’ll look at how consumers purchase in different locations for various retail categories and why consumers do still tend to prefer to purchase in store
  • So what all the various statistics suggested was that Online retail is growing at a fast pace but by far the majority of retail purchases still take place in stores
  • Christmas is the time of year when all retailers compete for share and its at this time of year that the press picks up on all retail related storiesWe’re sure a lot of you have read various news articles about Christmas last year and how online sales were at a record level and high street footfall was down. All of this is true and we can see that a rise in online shopping can be blamed for a decrease in the number of people visiting high street shops and out of town shopping centres in December 2013The British Retail Consortium stats reveal that Online Retail sales were up 19% in December 2013 compared to December 2012High Street footfall was 2.4% down for the whole of the UK from Dec 2013 vs Dec 2012
  • There is also a lot in the press about Retail and how and M-Commerce is making life very hard for traditional retail stores. It highlights the growth in online around M-Commerce and purchasing on Smartphones and TabletsHowever a lot of this also needs to be considered from a broader perspective and what we aim to demonstrate in this presentation is what the current status is regarding Retail in the UKPotentially dispel a few mythsAnd particularly show what Mobile’s current role isThere is a view that Mobile is in fact a blessing in disguise for traditional retailers and we’ll show you how in this presentation.All of this should be really useful in demonstrating the importance of EE Mobile data when planning OOH campaigns
  • So firstly how much of all Retail sales is bought online?Well the official figures for Great Britain from the Office of National Statistics in Jan 2014 was 10.7%. This is almost triple that of January 2008 so really does demonstrate how E-Commerce has grown at an extremely fast rate. However we still must remember that by far the majority of all retail sales (89%) still take place in traditional stores
  • And also putting Christmas in perspectiveThese figures are also from the Office of National Statistics and demonstrate how online is always far higher as a % of all retail sales at Christmas. In fact when we look at this for the last 4 years we can see that December figures are always over 21% higher than June figures for the same year.
  • This is from a report from Deloitte Consulting in 2013 called “Mobile Influence”These figures correlate with the ONS figures you’ve just seen and show that about £1 in £10 (10%) is spent online on E-commerce but the majority of Retail sales (88%) still take place in stores … They have also split out M-Commerce so you can see here that £5bn (2%) was spent on smartphones/tabletsBut the predictions for the future demonstrate how E-Commerce and M-Commerce will continue to growBy 2017 Deloitte predicts thatE-Commerce will make up 15% (£52bn)M-Commerce will make up almost 4% (£12bn)Store sales will make up 81% (£276bn)
  • 92% of the data generated by EE is in OOH locationsLocations are therefore particularly relevant high pedestrian locations where consumers have time and the ability to access their smartphones6 sheets / streetalk / billboardsOutside Tube stations or at Overground Tube / Rail StationsShopping Centres / MallsAirports
  • When we look at the different categories within retail from the Office of National Statistics we can see how the % spent online varies considerably by Retail CategoryFood stores that make up 40% of all Retail sales only has 3.7% of its sales coming from online. However the trend is that this will continue to grow as more and more major supermarkets recognise the importance of e-commerce and are offering online services e.g. Morrisons just launched its online website which it is rolling out in different regions throughout 2014 Other categories have a much higher % spent online such as department stores and clothing/footwear
  • Another report by Deloitte in 2013 looked at “Re-inventing the role of the High Street”In this report consumers were asked where they shopped for various different retail categories. It asked whether people shopped at local convenience shops, on the high street, in town (but not the high street), out of town and on the InternetSo it is very interesting to see the differences between theseFor example you can still see the importance of the High Street for categories such as Top up grocery shopping, Personal Care and clothingWhereas as we all know books/music is now predominantly purchased online
  • The report also highlighted the importance of Out of Town retail locations and these were very important for categories such as DIYElectricalsToys/Games
  • Delivery options have also changed over time and there are many ways that a consumer can buy and receive their purchases. This provides opportunities to both consumers and retailers. The chart demonstrates how consumers tend to purchase various different product categoriesSome categories are predominantly bought in store and taken home such as grocery shopping, personal care products, clothing, DIY and jewelleryOthers are more likely to be ordered online such as books, electricals and sent home. However there has been a rise in “click and collect” services recently and we can see this is starting to be quite common across a number of different product categories.
  • The report also looked at where consumers accessed servicesAnd the High street is still by far and away the main location for services in particular banking services, coffee shops and restaurants/take awaysThis demonstrates how EE data is also very useful for planning OOH campaigns for categories such as Finance and Restaurants / Take aways
  • The High Street is also the predominant place to access other services or Leisure activities such as GPs, dry cleaning hairdressing and bars and cinemasOOH advertising is obviously relevant for these services like Films, Alcoholic Drinks Brands etc.
  • As the last few charts have hopefully demonstrated traditional retail stores are still by far the most common way of purchasing products and services, despite the growth in e-commerce and m-commerceIn this age of ever emerging online technologies we mustn’t lose sight of the fact that consumers still preferthe physical act of shopping
  • As Paco Underhill describes in his book “The Science of Shopping” we now live in a less tactile society and consumers still like to experience the material world first hand when making retail decisions. High street shopping is also often about leisure, discovery and the adventure of impulse purchasing And let’s not forget convenience and High street stores are still the most convenient way of purchasing for most consumers. Priorities have also changed over the last few decades and we are now more time poor and multi-tasking. Many decisions don’t warrant as much thought as they did in the past …. So for example, quickly purchasing products during a working lunch breaks is now very common, which in the past would have been a dedicated shopping trip
  • There are many other reasons why consumers still prefer shopping in store and these include- Interaction and advice from store staff face to facePromotions and bargains – The Recession has lead to a value conscious consumer constantly looking out for in store offers and with the threat of e-commerce, retailers now have more sales than everPackaging: There is so much choice nowadays and consumers are now looking more and more to designs/aesthetics to help them make decisions and this is much easier in a physical store
  • So we have briefly given you an update and summary regarding the current state of Retail for various different products categories and highlighted the importance of physical shopping in various OOH locations for thisWe are now going to talk you through what Mobile’s emerging role is within Retail How rather than being a threat to traditional stores as is commonly perceived, that mobiles can in fact be a blessing which influences many store purchases.
  • Letshave a quick look at some recent M-Commerce Figures.A report in 2013 from Capgemini and IMRG demonstrated how Mobile Platforms (which encompasses both Smartphones and tablets) have doubled in the last year as a % of all Online sales. In Q2 2012 Mobile platforms made up 11.6% of all Online sales but in Q2 2013 this figure had doubled to 23.2%
  • But when we analyse this in more detail we can see that this Mobile growth is actually being driven more by tablets than smartphonesData supplied by Affiliate Windows in October 2013 showed that of all online sales Desktops made up over 77%Tablets almost 15% and Smartphones only 8%As the Penetration of smartphones is still far higher than tablets, this is more testament to the phenomenal rise in purchasing on tablets rather than smartphones  
  • So if most consumers are not actually purchasing on smartphones what is a smartphones role in the consumer journey …Well As the Deloitte “Mobile Influence Paper” in 2013 suggests, mobile’s role is actually far greater as a Store Sales Influencer than an actual sales platform.You can see this by a quote which states “Retailers need to shift their attention from mobile as a sales channel to viewing mobile as a driver of store sales”The Deloitte Paper actually used a methodology to try to predict how much mobiles are influencing Store Sales which they have called the “Mobile Influence factor”And you can see that they believe in 2013 that £18bn Store Retail Sales were influenced by Mobiles. This is in fact almost 4 X the £5bn of sales that actually took place on Mobile Platforms This is also set to grow massively by 2017 where Deloitte predicts that £41bn of store sales will be influenced by mobile
  • And the main reason that mobiles are Influencing Store Sales is that Consumers use their Smartphones to carry out Mobile Research relating to various different purchases they are considering making.The Deloitte Research also proved that Consumers using their smartphones either before or during their shopping trips for specific shopping related activities were more likely to make a purchase. 63% of consumers who used their smartphone on their shopping trip actually made a purchase compared to only 37% who didn’t use their smartphone.Similarly those using a smartphone when shopping were more likely to spend more - Those using a smartphone during their shopping trip spent an average of £93 whilst those not using their smartphone spent £52
  • As we saw earlier the way consumers purchase various product categories is very different. In the Deloitte Research they created a “Mobile Influence Factor” for a number of different categories and they applied it using a fairly simple formula. This Mobile Influence Factor is the % of Store Sales where Smartphones influenced sales during the shopping journeyWe’ve applied this to the Electronics Category as an example
  • So the chart above demonstrates what the Mobile Influence Factor is for various categories … This really demonstrates how important it is to consider using EE mobile data for planning OOH campaigns for various categoriesAs you can see it is highest for the categories of Electronics, Toys, Furniture where over 10% of all store sales are influenced by Mobiles. These categories often have purchase decisions that are more considered and often require more researchIt is lower for categories such as Food & Personal Care … perhaps categories where less research takes place before a purchaseWhat is clear from the report is that Deloitte predict that the “Mobile Influence Factor” is going to grow significantly over the next few years, particularly as the penetration of Smartphones increases.Across all categories in 2013 it claimed that 6.8% of all retail store sales were influenced by Mobile. It believes that this is set to double to 10-15% by 2017
  • Some categories were not analysed in the 2013 research so we have included a few figures from the 2012 ReportAgain demonstrating how EE data could be extremely useful when planning OOH campaigns for these categories
  • As we mentioned the main reason that mobiles are Influencing Store Sales is that Consumers use their Smartphones to carry out Mobile Research relating to various different purchases they are considering making.Google did some research in Nov 2013 called the “Mobile Path to Purchase” which interviewed 950 smartphone users, all of whom had made a purchase in the last 30 days. As part of this actual mobile usage was observed by analysing 14 days of panellists’ mobile metered data.The study demonstrated how these consumers actually spent over 15 hours a week doing Mobile Research and this took place across the week but appeared highest at weekends when more retail purchase decisions appear to be made. This is a phenomenal amount of time spent on mobiles researching products/services
  • This Google mobile study also supported the research that we have seen previously and demonstrated that most purchases that are researched on Smartphones are still purchased in store.82% made a purchase in store45% purchase online but via a desktop or tablet And only 17% purchased directly on their mobileAgain this proves that the role of a smartphone is much greater as a researching/browsing tool than a purchasing one
  • The Google research also demonstrated that when consumers researched a product or service on their smartphone the majority do eventually go on to make a purchaseIt claims that 93% of consumers who have ever used smartphones to research a product/service have gone on to make a purchase. We must bear in mind that the base of this is all smartphone users who have made a purchase in the last 30 days for a particular category, but still it does show a how the conversion rate is highIt also split this up by category and we can see the high conversion rates from those who were considering making a purchase to those who actually made a purchase. The conversion figures were 77% for Restaurants, 63% for Clothing and Beauty and 59% for Electronics
  • So as we mentioned earlier Smartphones have often been perceived as a threat to retail stores … But we have proved that smartphones can actually help physical retailersOne area that retailers particularly fear is that they use smartphones for showrooming - “Showrooming” is the tactic of visiting a store to examine a product with the intention of buying it elsewhere laterRetailers worry that smartphones make it very easy for shoppers to showroom by seeking out better prices elsewhere & undermining store sales assistantsBut Research in 2013 from TNS’s Mobile Life survey suggests that showrooming is not as common as some may believe.1/3 (33%) phone owners admit to showrooming1/5 (21%) phone owners have used their mobiles for showroomingBur only 8% have purchased product researched in store on their mobile Mobiles can actually provide retailers with chance to reassert their influence. If consumers are actually in their stores then retailers can suggest they use their mobiles positively to price comparison check, seek reviews but also possibly access Mobile coupons that can be redeemed in storeSmartphones could be a blessing in disguise for retailers as opposed to their desktop equivalents
  • Now in this final section we would like to bring the learnings we have just gone through and how this relates to planning OOH from a Convergent point of view
  • Firstly this is a chart from Posterscope’s OCS (Outdoor Consumer Survey) which demonstrates how a target audience of Smartphone Owners have responded to an OOH advert in the last 7 daysWewould like you to consider how some of these responses could have been done immediately after seeing the OOH advert … whilst other responses are delayed and would have been done at a later timeSo over 1/3 (36%) of all smartphone owners said they have responded to an OOH advert in the last 7 days24% stated they “Went Online” and this could be searching for more information, downloading coupons, visiting a brands website or Facebook page etc. For example some of this could have been immediate on a smartphone or later on a desktop9% stated they responded via “Word of Mouth” either by talking to friends about the ad or tweeting/posting about it on social media. Again some of this could have been immediate face to face conversations/tweeting on a smartphone or word of mouth later on20% stated they responded by “Further Brand considerations/Enquiries” such as going into a shop to find out more or responding to a special offer by text or phone. Again some of this could have been either an immediate response or done later on13% said they interacted using their “Mobile Phone” either by taking a picture, downloading an App, or Interacting with the Poster. All of these responses are Immediate and only possible due to Smartphones And Finally 16% actually said they “Purchased the Product/Service” - 12% in a physical store, cinema, restaurant some of which may have been done immediately after seeing the advert and some a delayed response 9% online again which could have been immediately online using a smartphone/tablet but more likely later on a desktop
  • So we’ve just talked through the various ways consumers respond to OOH advertising But we’d like to focus on the fact that what both OOH advertising and mobiles have in common is the concept of ImmediacyOOH advertising with its proximity to retailers, can illicit an immediate response in the form of driving in store. Through smartphones consumers also now have the ability to act immediately on impulses, desires and triggers (for example an OOH advert) as they act as a portable encyclopaedia, map, comparison and review guide. Both of these immediate responses are very important as they take consumers onto the next stage in the consumer journey from awareness to active evaluationBut we must not forget that one of OOH greatest strengths is to drive online at a later time on traditional platforms of desktops. This is obviously valuable but it does mean that consumers are therefore more likely to purchase online as they are no longer on the high street/near stores. It also runs the risk of the advert being forgotten as it is less front of mind
  • So we would argue that the real advantage for both brands and consumers is when the two mediums converge. We now live in a society where consumers are exposed to more content and communications than ever before and patience is not a virtue as far as consumers are concerned. An immediate response is often vital to drive a consumer from the awareness to evaluate/involvement stage in the purchasing journey maintaining the level of engagement generated by communications. OOH advertising is often the inspiration and trigger for consumers when out and about to drive them onto their smartphones. It is here that they can immediately do the required research or access a promotion that encourages them to visit a physical store
  • And these stats from the Google research demonstrate how a consumer has an immediate desire for purchasing a product/service having done some mobile research … 55% of consumers who used their mobile phone to research wanted to purchase the product within the hour and 83% within a dayBearing this in mind proximity to physical retailers after using mobiles for research is therefore often vital in helping to convert to purchase when the desire is there
  • So what research are consumers actually using their smartphones for?Well there was a study from xAd/Telmetrics in their Mobile Path to Purchase Study in 2013 which looked at 2,000 adults all of whom were smartphone or tablet owners and had engaged in activities relating to either Restaurant, Travel, Automotive categories in last 30 daysOf this audience you can see that across categories, consumers were using their smartphones/tablets to look up reviews, locations/directions and for price comparisons
  • In the Google research it also demonstrated that as high as 7 in 10 smartphone owners had used a store locator to find a store …Again this demonstrates for OOH physical retailers the importance of smartphones in assisting consumers to actually visit their stores
  • Another study by Google in September 2013 looked at the “Click to Call” functionality on SmartphonesOf 3,000 smartphone users who regularly used mobile search, again over 7 in 10 had used the “Click to Call Function”. The largest reasons for “click to call” such as checking for business hours, making a reservation/appointment and inquiring about inventory/availability also demonstrate consumers have an interest in visiting a physical store
  • And the study also demonstrated that Click to Call reasons did vary by category but most have a high level of physical store visiting intent
  • Posterscope did some research with Smartphone owners in 2012 and asked them if they saw an OOH advert that interested them, how likely would they be to interact with a poster for a number of reasonsThey also saw downloading vouchers, getting local information/directions, comparing prices and easily accessing web content as major reasons that would encourage them to interact with posters using their smartphones
  • An we also know that Interactive OOH that has proximity at the core of the campaign, such as vouchers/discounts for a restaurant, will encourage smartphone owners to interact with posters and visit a store/restaurant nearby
  • So in summary we hope that we’ve provided you with a lot of ideas and information which demonstrates the importance of physical retail stores We have also demonstrated the important role that mobiles play in retail and how it is currently far more of a researching role than a purchasing platform. Mobiles actually help to generate billions of pounds worth of sales for physical retailers and servicesBearing all this in mind and thinking back to the opportunity Posterscope provides through our partnership with EE. Posterscopehavebeen provided with aggregated data that demonstrates hotspots of mobile/app usage for different product categories. So by selecting poster sites in geographical locations which are hotspots for consumers accessing websites or apps relevant to a particular retailer category such as electronics, these hyper-targeted posters provide the featured advertiser with the best possible chance that their advert will evoke a consumer response- Either by going online on their smartphones to do relevant research or driving them in store …. Or as we have seen in this presentation, often both
  • Retail, Mobile and OOH

    1. 1. Retail, Mobile and OOH See Notes Pages for Details
    2. 2. Retail, Mobile and OOH • Retail Status - Stores, E-Commerce and M-Commerce - Category comparisons - Why consumers prefer to purchase in store • Mobile’s Role - Researching > Buying - Mobile Influence Factor for Retail Stores • OOH & Mobile - Immediacy - Review, Locate, Compare and Convert - OOH Mobile Poster Interactions - EE Partnership
    3. 3. Onlineretailisgrowingatafastpace butbyfarthemajorityofretail purchasesstilltakeplaceinstores OOH drives consumers online but its key USP is driving in store due to proximity to retailers
    4. 4. High street retailer sales hit by online at Christmas
    5. 5. M-Commerce is perceived as threatening high street retailers … but Mobile could actually be a blessing in disguise
    6. 6. Online accounts for spent on Retail in GB 4.4 6 7.1 8.7 9.4 10.5 10.7 0 2 4 6 8 10 12 2008 2009 2010 2011 2012 2013 2014 % Source: Retail Sales Jan 2014 – Office National Statistics Internet as a % of all Retail Sales (January Monthly Figures for Each Year) 11% 89% over £1 in £10 - Almost treble that of 2008 Almost £9 in £10 still takes place in stores
    7. 7. Need to consider all months in the year - Online Sales are always higher at Christmas 5.6 6.9 6.4 8.5 7.7 9.4 8.5 10.9 9.7 11.7 0 2 4 6 8 10 12 14 2009 June 2009 Dec 2010 June 2010 Dec 2011 June 2011 Dec 2012 June 2012 Dec 2013 June 2013 Dec Source: Retail Sales 2014 – Office National Statistics Internet as a % of all Retail Sales (June and Dec Monthly Figures for Each Year) + 23% + 33% + 22% + 28% + 21%
    8. 8. Stores still generate by far the majority of all Retail Sales yet E-Commerce and M-Commerce are growingsignificantly faster Source: Deloitte Mobile Influence 2013
    9. 9. TheHighStreetandOutofTown ShoppingMallsarethepredominant placeofpurchaseformostcategories OOH is ideally suited to influence purchases on both the High Street and Out of Town locations EE data identifies hotspots for consumers accessing websites/apps on their smartphones when OOH & is targeting pedestrians
    10. 10. Source: Retail Sales Jan 2014 – Office National Statistics Category Average Weekly Sales (£billion) % Online ALL RETAIL £6.4bn 10.7% Predominantly Food Stores £2.7bn 3.7% Non-specialised stores (department stores) £0.5bn 10.5% The Textile, clothing and footwear stores £0.7bn 12.1% Household goods stores £0.6bn 5.6% Other stores £0.8bn 7.7% Non-store retailing (Stalls, markets, mail order & retailers that sell mainly online) £0.4bn 66.1% Fuel Stores £0.7bn - Official Figures from the ONS highlight the importance of stores for most product categories although online is growing
    11. 11. Stores in High Street locations are still the main place of purchase for consumers Source: Deloitte Consumer Review 2013 “Re-inventing the role of the High Street) Where do you shop for the following categories?
    12. 12. And stores in Out of Town locations are key for several product categories Source: Deloitte Consumer Review 2013 “Re-inventing the role of the High Street) Where do you shop for the following categories?
    13. 13. Purchasing & Delivery options across categories demonstrate the range of opportunities for consumers and retailers Source: Deloitte Consumer Review 2013 “Re-inventing the role of the High Street)
    14. 14. TheHighStreetisthemainlocationfor -Services:Banks,GPs,Hairdressers -Leisure:Cafes,Restaurants,Bars OOH has a proximity to Services & Leisure facilities that no other traditional ATL media can achieve
    15. 15. The High Street is the predominant place to access services Source: Deloitte Consumer Review 2013 “Re-inventing the role of the High Street) Where do you usually go to access the following services or activities?
    16. 16. The High Street is also the predominant place to access health/beauty services & Leisure activities Source: Deloitte Consumer Review 2013 “Re-inventing the role of the High Street) Where do you usually go to access the following services or activities?
    17. 17. Consumersstillprefertoshopin physicalstoresfor: -Experience -Discovery -Convenience -Interaction -Promotions -Design/Aesthetics
    18. 18. Why consumers still prefer to shop in stores Source: Paco Underhill – The Science of Shopping Discovery The adventure of finding things that weren’t researched/planned - Impulse shopping is exciting Convenience / Changing Priorities Stores are still the most convenient place to purchase for many product categories. Many decisions also don’t warrant as much thought as they did in the past so convenience is key Touch / The Senses We now live in a tactile deprived society so consumers still like to experience the material world first hand to make decisions
    19. 19. Source: Paco Underhill – The Science of Shopping Interaction Consumers still like to get advice from people face to face and in store best environment for this In Store Promotions / Bargains Recession has lead to a value conscious consumer constantly looking out for in store offers. With the threat of e-commerce, retailers now have more sales than ever Packaging With the abundance of choice, consumers now look more and more to designs/aesthetics to help them make decisions Why consumers still prefer to shop in stores
    20. 20. Retail, Mobile and OOH • Retail Status - Stores, E-Commerce and M-Commerce - Category comparisons - Why consumers prefer to purchase in store • Mobile‟s Role - Researching > Buying - Mobile Influence Factor for Retail Stores • OOH & Mobile - Immediacy - Review, Locate, Compare and Convert - OOH Mobile Poster Interactions - EE Partnership
    21. 21. Onlinesalesonmobileplatformshave increasedsignificantlyinthelastyearalone but increaseisdrivenmorebytabletsthan smartphones. Most onlinepurchases are stillmadeviaPCs/laptops When OOH drives consumers online to make a purchase, it is more than likely the sale was made on a desktop
    22. 22. Mobile (Smartphone/tablet) as a sales platform Q2 2012 = Q2 2013 = Source: 2013 Capgemini and IMRG MOBILE (SMARTPHONE / TABLET) AS A % OF ONLINE SALES 11.6% X 2 23.2% has doubled over the last year
    23. 23. Tablets are driving this growth more than smartphones - but desktops make up the majority of online purchases Source: Affiliate Window Data for October 2013 Oct 2012 11.2% Oct 2013 22.7% X 2 7.9% 14.6% 77.5% MOBILE (SMARTPHONE / TABLET) AS A % OF All ONLINE SALES Smartphone Tablet Desktop
    24. 24. Smartphonesroleintheconsumerjourney ismuchgreaterasaStoreSalesInfluencer thanasasalesplatformasconsumersdo Mobileresearchwhichinfluencesthe purchasedecisionstheymake OOH can be the trigger for consumers to research products or services on their smartphones
    25. 25. Mobiles role in the consumer journey is greater as a “stores sales influencer” than as a sales channel Source: Deloitte Mobile Influence 2013 (Sample 2,013) Mobile Influence Store Factor “Retailers need to shift their attention from mobile as a sales channel to viewing mobile as a driver of store sales” 2013 2017 (Predicted)
    26. 26. Consumers using mobiles on shopping trips are both more likely to purchase (convert) and spend more Source: Deloitte Mobile Influence 2013 (Sample 2,013) Consumers using their smartphones either before or during shopping trips were more likely to make a purchase And they spend more on average
    27. 27. The“MobileInfluenceFactor”varies byretailcategorybutforallitwillgrow significantlyoverthenextfewyears OOH drives consumers onto their smartphones to research all retail categories but for many brands this is becoming a commercial necessity rather than a nice to have
    28. 28. A“Mobile Influence Factor” can be calculated and applied to different categories Source: Deloitte Mobile Influence 2012/2013 “Mobile Influence Factor” = % Store Sales where Smartphones influenced sale during shopping journey Electronic Category Example (2012) Total buying population Own smartphone Use for store related shopping Use for specific retail category Frequency use for specific category Mobile Influence Factor 58% 46% 52%77% 10.7%X X X
    29. 29. The Mobile Influence factor varies by category Source: Deloitte Mobile Influence 2013 Used smartphones to shop Frequency of use for category Mobile Influence Factor 2013 Predicted Mobile Influence Factor 2017 Electronic/ Appliance Sports, Toys, Games, Hobbies Furniture/ Home Furnishings Health/Personal Care /Pharmacies Food / Beverage Convenience Store / Petrol Station AVERAGE (WEIGHTED)
    30. 30. Source: Deloitte Mobile Influence 2012 Mobile Influence factor by category (2012) (Categoriesnotmeasuredin2013Survey) Used smartphones to shop Frequency of use for category Mobile Influence Factor 2012 Predicted Mobile Influence Factor 2016 Books and Music stores 65% 43% 7.4% 18.7% - 23% Clothing / Footwear / Accessories 62% 36% 5.9% 14.9%- 18.3% Department Stores 63% 34% 5.8% 14.6% - 17.9%
    31. 31. Smartphoneownersspend15hoursa weekdoingresearchontheirmobiles, mostofwhichleadstopurchasesin storeratherthanonline If OOH creative is engaging enough to drive a consumer to research on their smartphone then the chances of it converting to a purchase in store are high
    32. 32. Consumers spend over 15 hours a week on mobile research which influences store sales Source: Nov 2013 Google Mobile Path to Purchase (Nielsen Research - 950 smartphone users, all of whom had made a purchase in the last 30 days) Monday Tuesday Wednesday Thursday Friday Saturday Sunday Mobile Web Time Mobile App Time
    33. 33. Source: Nov 2013 Google Mobile Path to Purchase (Nielsen Research - 950 smartphone users, all of whom had made a purchase in the last 30 days) Most products researched on mobiles are still primarily purchased in store Where did you make your most recent purchase in the following categories? (9 different verticals: Restaurants, Food & Cooking, Finance, Travel, Home & Garden, Apparel & Beauty, Automotive, Electronics, Health & Nutrition) Where did you make your most recent purchase in the following categories? Purchased In-store Purchased Online (desktop/tablet) Purchased Directly on mobile
    34. 34. Those researching on smartphones usually go on to make a purchase Source: Nov 2013 Google Mobile Path to Purchase (Nielsen Research - 950 smartphone users, all of whom had made a purchase in the last 30 days) Convert to Purchase 77% 63% 59% 93% Of people who have ever used mobile to research go on to make purchase
    35. 35. Whenconsumersareinstore,mobiles couldactuallyencouragethemto makepurchasesthereandthenand reducetheeffectofshowrooming
    36. 36. Mobile showrooming fears for retailers “Showrooming” is the tactic of visiting a store to examine a product with the intention of buying it elsewhere later • Mobiles are commonly perceived as a threat to retailers regarding showrooming as they make it easy for shoppers to seek out better prices elsewhere & undermine the authority of store’s sales assistants • 1/3 (33%) phone owners admit to showrooming • 1/5 (21%) phone owners have used their mobiles for showrooming • But only 8% have purchased product researched in store on their mobile • Mobiles can provide retailers with chance to reassert their influence • Reassure on Price (Check price comparison) • Reassure on Suitability (Seek opinions of friends/family, reviews) • Mobile Coupons • Improving Store Navigation Source: 2013 TNS‟s Mobile Life (Global)
    37. 37. Retail, Mobile and OOH • Retail Status - Stores, E-Commerce and M-Commerce - Category comparisons - Why consumers prefer to purchase in store • Mobile’s Role - Researching > Buying - Mobile Influence Factor for Retail Stores • OOH & Mobile - Immediacy - Review, Locate, Compare and Convert - OOH Mobile Poster Interactions - EE Partnership
    38. 38. OOHAdvertisingandMobileshave immediacyincommonprovidingthe opportunityforconsumerstorespond totriggersanddesiresinstantaneously
    39. 39. OOH advertising generates 5 major types of response - both immediate and delayed 36 24 11 9 8 7 5 4 9 8 1 20 12 6 5 4 1 1 13 8 6 2 1 1 16 12 9 0 20 40 60 80 100 120 140 160 180 . 10. 20. 30. 40. %ofTargetAudience % of Target Audience (Smartphone Owners) Thinking about advertising you may have seen in places such as on the side of buses, on posters on the high street, in rail or tube stations, bars or shopping centres and by the side of the road. Have you taken any of the following actions in the last seven days? Went online Word of Mouth Further Brand Consideration/Enquiries Interaction / Mobile Response Purchased Product /Service Index
    40. 40. Both OOH & Mobiles have immediacy in common which maintains momentum on the consumer journey Maps MOBILE HELPS TO MAINTAINS MOMENTUM DRIVING CONSUMERS TO THE NEXT STAGE IN CONSUMER JOURNEY IMMEDIATE ONLINE RESPONSE DELAYED ONLINE RESPONSE CONSUMERS MOST COMMON RESPONSE IS TO LOOK ONLINE LATER - MORE LIKELY BUY ONLINE - ADVERT LESS FRONT OF MIND SO MAY FORGET IMMEDIATE STORE VISIT RESPONSE Pricing Reviews
    41. 41. Source: McKinsey Journey When OOH & Mobiles Converge, this generates the highest level of engagement on the consumer journey IMMEDIATE ONLINE RESPONSE IMMEDIATE STORE VISIT RESPONSE
    42. 42. Immediacy is key to converting to purchase after researching on mobile Source: Nov 2013 Google Mobile Path to Purchase (Nielsen Research - 950 smartphone users, all of whom had made a purchase in the last 30 days) NB. This varies significantly by category Q: Usually how quickly after you begin engaging with your Smartphone are you looking to make a category purchase?
    43. 43. Consumersusetheir smartphonesfor -Reviews -Locations/directions -Openinghours -InventoryChecking -MakingReservations -Pricecomparison
    44. 44. Most consumers used smartphones/tablets to look up reviews, locations/directions and price comparison Activities done on smartphone/tablet in past 30 days Restaurant Travel Automotive Looked up reviews 58% 53% 37% Looked up business location 64% 29% 43% Looked up directions to business 49% 26% 29% Looked up pricing info/compared prices 45% 70% 53% Source: xAd/Telmetrics Mobile Path to Purchase Study 2013 2,000 UK Adults (Smartphone owners: 1,455, Tablet owners: 1,179) Engaged in activities relating to either Restaurant, Travel, Automotive categories in last 30 days
    45. 45. 7 in 10 smartphone owners have used a Store Locator to find a store Source: Nov 2013 Google Mobile Path to Purchase (Nielsen Research - 950 smartphone users, all of whom had made a purchase in the last 30 days) Restaurants Electronics Apparel & Beauty
    46. 46. 7 in 10 smartphone owners who regularly use mobile search have used Click to Call function often to find store information Source: Google, Ipsos “Click to Call” Research September 2013 3,000 smartphone users aged 18-74 who use mobile search at least a few times week and made purchase in product category in last 6 months Click to Call The largest reasons for “click to call” all demonstrate consumers are interested in visiting a store
    47. 47. Click to Call reasons vary by category but most have a high level of store visiting intent Source: Google, Ipsos “Click to Call” Research September 2013 3,000 smartphone users aged 18-74 who use mobile search at least a few times week and made purchase in product category in last 6 months % who may call a business directly from a search for each task
    48. 48. Consumershaveanappetitetouse their smartphonestointeractwith OOHifitprovidesarealbenefittothem ofteninproximitytotheposter
    49. 49. Consumers see access to similar types of information as the main reasons to interact with posters using smartphones Q: If you saw a poster advert that interested you, how likely would you be to use the NFC (Near Field Communications) technology on your mobile for the following Source: Smartphone Real World Interactors 2012 (Posterscope/Clear Channel) Sample: 1,000 UK/US Smartphone users all ever used 1 of 7 Mobile Interaction Technologies
    50. 50. Proximity Interactive OOH is proven to generate sales Voucher downloaded by 2,265 passengers from just one 6 sheet Approximately 75 downloads a day Proximity campaign London Luton Airport 17th Dec - 16th Jan 2010 Activating Bluetooth and accepting invitation from Burger King, airport visitors received 15% off their meals at the airport
    51. 51. EEdatahelpsselectpostersitesproviding theadvertiserswiththebestpossiblechance theiradvertwillevokeaconsumerresponse -DrivingonlineonMobile -Drivinginstore Both
    52. 52. Mobileusage hotspots Data Re-inventing theapproach to OOH planning using big data. Inpartnership withEE, using aggregated and anonymised location based mobile data to understand „hotspots‟of mobile web and app usage EE Data provides information to plan in hotspots relevant to a particular category Selecting sites in geographical locations which are hotspots for consumers accessing websites or apps relevant to a particular retailer category such as electronics, = hyper-targeted posters that provide the featured advertiser with the best possible chance that their advert will evoke a consumer response
    53. 53. Fashion,Mobile&OOHExample
    54. 54. Fashion, Mobile & OOH • £1bn is spent in GB weekly on Fashion & Footwear and 11% of this online so the vast majority is spent in OOH stores (ONS Nov 2013) • 50% shop for clothing/footwear/accessories on the high street, 36% in town but not on the high street, 44% in out of town shopping centres and 41% online (Deloitte Consumer Review 2013) • 59% of consumers buy clothing/footwear/accessories in store and take it home, 13% order online and collect in store (Deloitte Consumer Review 2013) • Consumers like to discover and purchase clothes on impulse • 60% of GB adults have bought clothes on impulse and 61% like to try clothes before they buy them (OCS 2013) • 2012 Mobile Influence Factor of 5.9% for Clothing/Footwear/ Accessories and this is predicted to grow to 15-18% by 2016 (Deloitte Mobile Influence Factor) • Of all people who have ever used smartphones to help them shop, 62% have done this for the clothing/footwear/accessories category (Deloitte Mobile Influence Factor)
    55. 55. • Consumers want to make immediate purchases and 83% of those using mobile to research want to purchase within a day – demonstrating the desire to act immediately, often to visit stores (Google Path to Purchase Study Nov 2013) • Of the 63% of consumers who considered making a Fashion purchase 40% went on to buy something – 63% conversion rate (Google Path to Purchase Study Nov 2013) • 31% of smartphone owners have used a Store Locator to find a fashion store (Google Path to Purchase Study Nov 2013) • 59% who use “Click to Call” for Retail want to check for business hours & 52% to inquire about inventory demonstrating a desire to visit stores (Google Click to Call Sept 2013) • 84% smartphone owners would consider interacting with a poster with the mobile to get local information directions if they saw a poster that interested them - demonstrating a desire to visit a store (Posterscope 2012 Smartphone Real World Interactors) Fashion, Mobile & OOH

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