Edelman po v eu5 mobile & retail-jan2012


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Overview of European mobile retail facts and figures.

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Edelman po v eu5 mobile & retail-jan2012

  1. 1. Mobile Retail in the UK Edelman Digital, 28 January 2012 1
  2. 2. Introduction: Mobile Retail in the UKIn 2011, the installed base of smartphones in the UK has reached 32.4 million*Many of those phones play a key role in the shopping behavior of UKconsumers, where in the last year: •  9% of UK web users bought goods or services via mobile** •  20% of UK smartphone users found a retail store location with their phone*** •  15% used a phone to photograph a product while in-store**** mobileSQUARED.com** “DIBS E-Commerce Survey 2011: A Comprehensive Study of European E-Commerce”, The October 2011*** comScore MobiLens Report, Ctober 2011 2 2
  3. 3. Edelman and Mobile RetailHere at Edelman, we have for years been working with global brands such asUnilever, Diageo, Shell to make Social and Digital media a central part of theirmarketing and communications strategy.Now that half of Facebook and Twitter interaction happens on mobile devices,and mobile penetration is five times that of social media, it’s time to take acloser look at how Mobile can be used to evolve the conversation betweenconsumers and brands.This presentation provides on overview of mobile behaviour and trendsemerging in the UK and EU5, drawing on research from leading organizationssuch as comScore, eMarketer.com and mobileSquared. 3 3
  4. 4. A Mobile Society 4 4
  5. 5. Social media is Mobile 50% of Facebook members are Nearly 50% of mobile Tweets are from (400 million mobile people) Mobile Facebook Mobile will users are twice overtake PCs for as active on web surfing by Facebook than 2013 non-mobile users 5
  6. 6. Europe leads the way with 120% mobile penetration 9.7 6 6
  7. 7. Top EU5 Smartphone Activities & Penetration comScore, March2011 7
  8. 8. 8
  9. 9. How mobile is changing retail 9
  10. 10. Did you know 71 percent ofsmartphone users that see TV, pressor online ad, do a mobile search.Will they find your mobile site or yourcompetitors’? Source: Google/Ipsos, “US consumer Mobile Movement survey”, April 2011 10
  11. 11. 4.7 million UK smartphone owners have accessed a retail site comScore Mobilens report, October 2011 – Mobile retail is one of the fastest growing phenomena amongst smartphone users, with more than 13.6 million EU5 smartphone owners accessing a retail site in October 2011. The UK had the largest audience with 4.7 million people, but Germany accounted for the largest increase in users with a 112 percent growth year- over-year. The double or triple-digit growth rates across Europe represent an excellent opportunity for retailers to make their goods readily accessible to today’s connected consumers. 11 11
  12. 12. Mobile ContentUK m-commerce revenue doubled from £123m in 2009 to £275m in 2010, and could hit £1bn this year.Most popular purchases from mobile devices in the UK:Mobile Content/Games 39%Travel 12%Apparel 10%Consumer Electronics 10%Entertainment Tickets 9%Other 1%Most popular purchases from mobile devices in the USMobile consumables/games 42 per centConsumer Electronics 19 per centApparel 15 per centEntertainment Tickets 13 per centTravel 11 per cent Source: May 2010 InMobi survey of 15,000 mobile users in 14 countries about their shopping habits 12 12
  13. 13. Smartphones open up a whole new world for consumers 13 13
  14. 14. …and have become an in-store shopping toolIn October 2011, nearly 22 percent of EU5 mobile users took a picture of the product while in a retail store,making it the most popular e-commerce related activity. A significant percentage of smartphone users in retailstores also texted or called friends or family about a product (14.9 percent). New technologies also gainedtraction with European smartphone users with 6 percent scanning a QR code in-store. 14 14
  15. 15. Young Males are driving mobile retail 15 15
  16. 16. 1 in 5 UK Smartphone Users Searched for Retail Store Location In the UK, the top retail/e-commerce activity performed on a smartphone was finding a store location, with 20.2 percent of smartphone owners using the service in August 2011. 15.3 percent of all smartphone users in the UK took a picture of a product while in a store, making it the second most popular retail-related activity performed via smartphone. Looking at the top 10 e-commerce activities, users are taking advantage of their smartphone to gather information before purchasing a product or service. Activities like contacting their friends/family via text (14.2 percent) comparing prices (12.7 percent), finding coupons or deals (11.7) and sending a picture (8.7 percent) of the product to friends/ family while in the retail store. 16 16
  17. 17. 13.2% of UK smartphone owners have scanned QR codesThe overall European audience for QR or bar codes was considerably larger than for in-store, as codes cannot only be scanned while in a retail store but also at home, at work, on public transport or even whiledining in a restaurant. The highest penetration of QR code users was in Germany, with nearly 15 percentmaking use of this emerging technology in October 2011. 17 17
  18. 18. Mobile browser versus appsFor every shopping activity, including researching products and prices,reviews, promotions and purchasing products, most respondents in the US(61-81%) preferred browser to native app. (Adobe/Keynote Mobile Report,October 2010)However, in the UK, 47 per cent using m-commerce through apps, 22 percent through mobile site and 31 per cent through both.(InMobi MobileShopping Report, May 2011) 18 18
  19. 19. SMS is the dominant mobile payment systemDIBS Payment Services and YouGov noted that in the UK, as in other EU-5 countries, top productcategories bought via mobile in 2011 included media (such as games and music) and travel tickets. Overhalf (56%) of mobile payments were made via SMS, while 22% were added to the buyer’s mobile phonebill. 19 19
  20. 20. 82% of UK mobile buyers spend up to £100 via mobile 20 20
  21. 21. 16% of UK internet users prefer mobile to redeem vouchers 21 21
  22. 22. UK Has Highest Penetration of Social Networking viaSmartphone in EU5 Over 45 percent of all smartphone users accessed a social networking site or blog in EU5 (France, Germany, Italy, Spain & UK) during the three month average ending October 2011. A closer look at the different markets showed that the UK has the highest penetration of social networking users, with 61 percent of all smartphone owners accessing social networks or blogs. 22 22
  23. 23. UK Mobile Users Access Social Networking More Frequently In September 2011, 17 million UK mobile users accessed social networking sites or blogs on their mobile device, representing 35 percent of the total mobile audience. More than half – 57 percent – of this audience reported accessing social networking sites on a daily basis. Interestingly, the growth in daily social networking use from the previous year outpaced that of mobile social networking access as a whole (57 percent vs. 36 percent), indicating that the mobile platform is proving to be conducive to very frequent social networking use. 23 23
  24. 24. 20.4 million people in the UK use mobile mediaIn October 2011, 76 percent ofsmartphone owners in the EU5 weremobile media users, meaning that theybrowsed the mobile web, accessedapplications, or downloaded content.The impressive 62 percent growth inthe total number of mobile media usersin the past year is largely attributable tothe acceleration in smartphoneadoption, 3G/4G network quality, andthe increasing ubiquity of aggressivelypriced data plans, all of which facilitatethe consumption of mobile media.Amongst the five European countriesanalysed, Germany stands out with thefastest growth rate of 89 percent whilethe UK had the largest audience with20.4 million mobile media users viasmartphones. 24 24
  25. 25. In 2011, 1 in 3 US Smartphone Buyers Made Purchase onTheir Phone While in a Store In the U.S., 38% of smartphone owners have used their phone to make a purchase at least once in the course of their device ownership. In September 2011, 56% of smartphone purchasers completed their transaction while at home, leading as the most popular purchase location. 42% of consumers made purchases while out of home (i.e. restaurants, parks, etc.) or at work, with 37% making purchases while traveling/commuting. Slightly more than one in three purchasers used their smartphone to buy while in a store, highlighting the increasingly important role mobile is playing in consumers’ brick and mortar retail experience, especially as a tool for real-time price and product comparisons. EU5 Data for these behaviours have not yet been released 25 25
  26. 26. ConclusionPoint of View: comScore Europe“Mobile commerce is taking off and reshaping expectations for the retail industry. Consumers will continueto expect mobile commerce as a fact of life and will only accelerate their usage of mobile devices toconduct commerce transactions. Retailers and advertisers need to embrace the mobile commerce usecase and develop compelling consumer solutions built across the leading mobile ecosystems.”Point of View: Edelman DigitalWith 50% of social networking taking place on mobile phones, we have a tremendous opportunity toconnect the dots between emerging consumer behaviours in digital marketing and mobile retail. Searchand mobile optimization are key, with the majority of people now searching for mobile content after seeingan advert or press about a brand or product. Retail brands need to streamline their communications andsocial media programmes to resonate as strongly, and more personally, in the mobile sphere. 26 26