The future of mobile in 2016, DBD media agency and Google, LISTEX Summer Session 2016

The future of mobile in 2016
Kieran Darwin – Head of Digital Strategy @ DBD Media
Charles Daniel – Industry Manager @ Google

Google Confidential and Proprietary
Buyers used to follow a linear path to purchase.
Yellow pages
Awareness Consideration Intent Decision
Print ad
Billboard
Storefront
Call seller
Visit store
Ask for a quote
Compare goods in store
Mail order
Store purchase
Micro-Moments Workshop

Now they use the internet as a hub.
New mobile phone
Online Video
62% of (Country) population
watches YouTube
Social Media
4x more likely to buy a product
recommended by a friend
Online Review
77% look at online reviews
before making a purchase
Mobile
41% research and purchase on
a smartphone
Display Ad
51% of consumers learn about
new products from online
advertising
View in Store
19% research online, visit a
store to examine the product
and then purchase online
Purchase in store/
Purchase online
Search
93% of buyers research
online before
purchasing

2015became the year that mobile traffic overtook desktop…
Q4 2015ended with approximately 53% of all online traffic
coming through mobile.

The UK leads the world when it comes to online shopping...

So where to begin?

We’re tuning in more than ever

The world has changed
61%
now prefer news on
PC, tablet, laptop or
mobile to newspaper
3 hours
41 minutes
more time spent online
than watching TV per
day
110 hours per
month
spent online by the
average Brit
of all online sales
are made on a
mobile device
2.4% drop
in high street
footfall in 2013
27
%

Consumer Behaviour Changed
Why Now?

Take a look at John’s sitting room.
90%
Move between devices
to accomplish a goal
63%
Watch TV and surf the
web at the same time
TV
PHONE
LAPTOP
TABLET

The buying process has changed too.
Buyers are
unpredictable.
They switch regularly
between devices.
They read reviews, compare
styles, and research pricing.
They search.
Holiday in Ibiza
93 % of buyers research
online before purchasing.
40k online searches occur
per second in the UK.
They search again.
Cheap 2 nights + Ibiza
On average, 10.4 information
sources influence an online
buying decision.

Immediate. Relevant. Frictionless.
That’s the experience consumers expect when they turn to a device to find, do, or buy
something.
To win, marketers have to be there to meet them in these micro-moments.

“As many as 88% of consumers
are researching items online and
then buying in a physical store.”
Accenture: “Seamless Retail” - 2014

Today, you have to earn the customer’s consideration and action, moment after moment.
Why?
Because people are more loyal to their need in the moment than to any particular brand. Case in
point:

Our Life with Mobile
We asked consumers how they would describe the role of their mobile device in
their lives?

We asked consumers how they would describe the role of their mobile device in
their lives?
“I pretty much call my phone my lifeline.
I use it all day, every day. If I ever leave
home without it, I feel naked.”
— Mary Kathryn L.,

When we asked people this question recently, the people used phrases like
“Attached to my hip,”
“butler,”
and “lifeline.”
Let’s face it: those are not things we say about our toasters.

Smartphone users

Smartphone users Millennials? They’re really attached.

Smartphone users Millennials? They’re really attached.
That little device by our sides is transforming our lives, whether we
actively notice it or not. It’s enabling new ways of doing and learning
things. It’s helping us discover new ideas and new businesses. It’s
helping us manage our to-dos, tackle our problems, and inspire our
plans.
Mobile search behavior is a good reflection of our growing reliance: in
many countries, including the U.S., more searches take place on mobile
devices than on computers. 4 Mobile is quickly becoming our go-to.
When we want or need something, we tune in via convenient, self-
initiated bursts of digital activity.

Buy festival tote
for Coachella
next weekend
11:15pm
On the bus,
read about
Coachella lineup
8:42am
Use flashlight app to
find dropped earring
11:09pm
At bus stop, listen
to new music
playlist
8:30am
At work, book
Coachella tickets
11:36amOn bus, check email
for sales this
weekend
5:29pm
Browse festival
styles on
YouTube
7:15pm
Wake up and
check today’s
weather
6:50am
At lunch, play
Scrabble while
waiting in line
1:33pm
Use maps to get
directions to
Creole food truck
1:13pm
150X
per day

Take that often quoted stat that we check our phones
around 150 times a day...
Pair it with another that says we spend 177 minutes
on our phones per day, You get a pretty fascinating
reality:
Mobile sessions that average a mere 1 minute and
10 seconds long, dozens and dozens of times per
day. It’s like we’re speed dating with our phones.

Behind these mobile bursts are countless interactions, like texting a
spouse with a carpool update, dropping a quick work email while
waiting in the ATM line, or posting a vacation photo to make friends
jealous. These types of moments are a common part of life, but
they’re not moments when we’re necessarily looking to engage with
brands. And if a brand tries to butt in with a distracting or irrelevant
message? Swipe.
But in other moments, we’re very open to the influence of brands.
These are the moments when we want help informing our choices or
making decisions. For marketers, these moments are an open
invitation to engage. And they’re the moments you have to be ready
for.

At Google, we call these micro-moments.
They’re the moments when we turn to a device—often a
smartphone—to take action on whatever we need or
want right now. These I-want-to-know, I-want-to-go, I-
want-to-buy, and I-want-to-do moments are loaded with
intent, context, and immediacy.
Consider the following,

That consumer journey looks a lot different than it did when your predecessor sat at your
desk. And it’s not just a story of more mobile usage.
Since we can take action on any need or curiosity at any time, the consumer decision journey
has been fractured into hundreds of tiny decision-making moments at every stage of the
“funnel”—from inspiring vacation plans to buying a new set of skis.
In the past year alone, websites in the United States have seen:

20%
increase in mobile's share
of online sessions
18%
decrease in time
spent per visit
29%
increase in mobile
conversion rates
Google Analytics aggregated data, 2014-2015 for April 1-14, US

An increase in mobile sessions and a decrease in time spent might lead you to conclude that consumers aren’t finding
what they want on mobile.
But actually, mobile conversion rates have shot up by 29% in the last year alone.
Think about it. We don’t just rely on long sit-down sessions at our keyboards to make purchases anymore. We reach for
our devices and make informed decisions faster than ever before. And though mobile is driving this change, this
phenomenon has implications far beyond mobile. It affects the entire consumer journey across screens, devices, and
channels.
Consider what’s going on with retail stores today. Foot traffic has declined, yet consumers are spending more when they
do visit—because they’ve done their research and made decisions before ever walking in. A similar thing is happening
when consumers visit websites using a desktop or laptop. They typically spend less time per visit but convert more often.
In many ways, the micro moments have become the footsteps that lead people to your store or desktop site.
So how do you win?

Let’s take a look at an example;
Red Roof Inn mastered all three strategies in one simple campaign.
When the company realized that flight cancellations were leaving 90,000 passengers
stranded every day, its marketing team developed a way to track flight delays in real
time and trigger targeted search ads for the Red Roof Inns near airports. Ads that
said, in essence,
“Stranded at the airport? Come stay with us!”
They committed to those “I-need a-hotel-ASAP” moments and delivered with
relevance on what people needed. The result: a remarkable

Mobile is having a striking effect on shopping behavior in all settings, and it is no longer the sole province of out-and-about
smartphone users or those buying inexpensive products or services in short windows of time. What consumers want is
changing and retailers are having to keep up.
“The rise of on-demand services like Uber, Seamless and Tinder are raising the stakes for mobile and location. “Mobile,
combined with the ability to leverage location for a more relevant and tailored experience, has changed consumer
expectations when it comes to purchases.
The personal and on-the-go nature of mobile, the convergence of online and offline, and the increased expectations for
consumers to have what they want delivered to them immediately, has fundamentally disrupted the path to purchase,”
- Sarah Ohle, senior director of global research at xAd

By being there, your brand has
the chance to address consumer
needs in the moment, help move
someone along their decision
journey and deepen their loyalty.
That’s how brands earn their
stripes with mobile.

In 2018 Mobile search will generate 73 Billioncalls

Let’s take a look at how the change to mobile has impacted these businesses

Industry specific trends

Moving into the future

Mobile Ad Spend to Top $100 Billion Worldwide in 2016, 51% of Digital Market
The global mobile advertising market will hit two significant milestones in 2016, according to new figures from
eMarketer, surpassing $100 billion in spending and accounting for more than 50% of all digital ad expenditure for the
first time
The $101.37 billion to be spent on ads served to mobile phones and tablets worldwide next year represents a nearly 430%
increase from 2013. Between 2016 and 2019, the last year in our forecast period, mobile ad spending will nearly double,
hitting $195.55 billion to account for 70.1% of digital ad spend as well as over one-quarter of total media ad spending
globally.
Not surprisingly, growth in mobile ad spending is being driven by consumer adoption of mobile devices. Next year,
eMarketer estimates, there will be more than 2 billion smartphone users worldwide.

In the short term, the leading global markets, particularly the US and China, will
drive mobile ad spending growth. In 2016, US advertisers will spend $40.24
billion to reach consumers on tablets and mobile phones, more than doubling
the total from 2014, while those in China will invest $22.14 billion—nearly triple
the amount they spent in 2014. Both of these countries will see mobile become a
majority of digital ad spending next year.
Rounding out the top five countries, the UK, Japan and Germany also will see
significant increases in mobile ad spending next year, but in all three markets, a
majority of digital ad spending will be on mobile devices in 2017 for the first
time.

Thank you
For more infomation please contact:
Kieran.darwin@dbdmedia.co.uk or visit
www.dbdmedia.co.uk

The future of mobile in 2016, DBD media agency and Google, LISTEX Summer Session 2016

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