Retail, Mobile and OOH

2,860 views

Published on

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.

  • Be the first to comment

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

×