IAB - M Commerce 2011


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A consumer insight – How m-commerce usage has evolved in the run up to Christmas 2010

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IAB - M Commerce 2011

  1. 1. A consumer insight – How m-commerceusage has evolved in the run up to Christmas 2010 Alex Kozloff, Mobile Manager, IAB
  2. 2. A consumer insight - How m-commerce usage has evolved in the run up to Christmas 2010
  3. 3. Agenda1What we knew about M Commerce in 2010 2 M Commerce in Christmas 2010 3 Outlook for the future of MCommerce
  5. 5. UK penetration of M-Commerce Mobile Media 45,000,000 • Downloaded and used a mobile app Mobile phone Downloaded a ringtone, music track, users aged • Used social media 18+ in UK • Accessed the internet / any website • Purchased a product or a service 26,545,000 mobile media users (59%) M-Commerce • Used mobile for research for 22,950,000 purchasing use M- • Used mobile for enhancing a Commerce purchasing experience (51%) • Paid for something on mobile straight to bill • Paid for something on mobile via card/bank/paypalSource: IAB Consumer M-Commerce Study October 2010, Comscore August 2010Base = All mobile users (1039)
  6. 6. M-Commerce definition & usage levels MOBILE RESEARCH- 43% Used your mobile to Used your mobile phone Used mobile phone to get Used coupons orcheck prices of products / to find shop location / more info about product / vouchers on mobileservices whilst, or before, opening hours / contact service you are thinking phone to get money off going shopping (36%) details (40%) about buying (35%) products /services (21%) EXPERIENCE ENHANCEMENT- 35% Used your mobile phone to keep Used your mobile phone as a ticket Used your mobile phone for loyalty updated on something you have for events or travel eg British schemes, eg Tesco Clubcard purchased eg stock availability, Airways, Orange Wednesdays (17%) flight status (28%) (23%) PURCHASING DIRECT TO BILL- 37%Paid for a product / service / Paid for a product / service / Paid to download a piece of Paid for a product / service / donation by texting a short donation from your phone bill content to your phone bill eg donation from your phone bill number that is often 5 or 6 by entering your phone ringtone / application / game using premium voice (12%)digits long eg 63336 (21%) number, eg payforit (13%) (32%) PURCHASING CARD/ BANK DETAILS-27% Used a website on your mobile to Used an application on your mobile Bought an application though an buy something (eg M&S, Amazon) phone to buy something (eg app store, eg Itunes, Nokia Ovi, (19%) Ocado, Ebay etc) (15%) Google Marketplace (21%) (21%)
  7. 7. Consumers find mobile convenient- and ease of use is key for purchasing Why did you use your mobile for researching/buying? average across all four commerce areas (where the same question was asked) out and about 47% the easiest way of doing it 42% it provides me with useful info* 33% spontaneous / impulsive decision 32% Those who find means I dont have to carry so much stuff* 29% researching easy no other online access experimentation 26% 25% are 16% its the only way of doing it 11% more likely to make knows where you are - more relevant info* 11% a purchase than those who don’t felt like the most secure way 7%Source: IAB Consumer M-Commerce Study October 2010Base: All respondents who are involved in each area of M Commerce* Indicates this options was only asked of one area of M-Commerce
  8. 8. We thought Xmas 2010 might be big The IMRG predicted in Christmas 2010 almost 20% of the £6.4 billion due to be spent online will be spent via mobile devices.Source: IMRG December 2010
  9. 9. We thought Xmas 2010 might be big Tesco Direct predicted one in ten UK shoppers will do their online Christmas shopping from a phone rather than a computer in 2010.Source: Tesco Survey, November 2010
  11. 11. Mobile is a large part of „E Commerce‟30.2m people Mobile makes visited commercesites on the fixed line upinternet in December 2010 17%of the total E Commerce 6.3m people audience (duplicated) visited commerce sites on the mobileinternet in December 2010
  12. 12. 6.3M visits to the retail category in December 2010 1.6M 1.6M 805,000 736,000 544,000 344,000 250,000 246,000 240,000Source: Comscore GSMA December 2010
  13. 13. Ebay‟s gives an example of growth of M Commerce in the UK over 2010 $4m JAN ‘10 FEB ‘10 MAR ‘10 APR ‘10 MAY ‘10 JUN ‘10 JUL ‘10 AUG ‘10 SEP ‘10 OCT ‘10 NOV ‘10 DEC ‘10Source: Ebay
  14. 14. $Source: Ebay 500000 0 3000000 1000000 1500000 2000000 2500000 3500000 01-Dec-10 4000000 02-Dec-10 03-Dec-10 04-Dec-10 05-Dec-10 06-Dec-10 07-Dec-10 08-Dec-10 09-Dec-10 10-Dec-10 11-Dec-10 12-Dec-10 13-Dec-10 ebay 14-Dec-10 15-Dec-10 16-Dec-10 17-Dec-10 18-Dec-10 19-Dec-10 20-Dec-10 21-Dec-10 22-Dec-10 23-Dec-10 24-Dec-10 25-Dec-10 26-Dec-10 27-Dec-10 28-Dec-10 29-Dec-10 30-Dec-10 Ebay‟s “Mobile Sunday”, where $3.3m (£2.1) was spent on Ebay UK
  15. 15. What sold on “Mobile Sunday” on Ebay?* Percentage of Gross Merchandise (GMB) based on all categories displayed in the infographicSource: Ebay
  16. 16. ASOS generated £1m worth of sales on it‟s mobile site in December 2010Source: NMA 21/1/2011
  17. 17. Consumers turning to mobile for sale shopping Usablenets UK mobile platform- whose clients include John Lewis, ASOS, JD Sports, M&S, Next and Tesco experienced an average increase in traffic of 300% during the Christmas weekendSource: Econsultancy 6/1/2011
  18. 18. This is of huge importnance for advertising According to Adfonic mobile clicks increased by 400% on the 12th of December compared to the beginning of the month.Source: Adfonic 2011
  20. 20. Mobile commerce is perceived as an business opportunity in mobile Do you see mobile commerce as a threat or an opportunity to your organisation? Sector 1 • (e)/Retailer 94% 92% • Brand Owner 79% Sector 2 •Agency • Media Owner • Content Provider 21% Sector 3 6% 8% • Service Provider 0% 0% 0% • Solution Provider • Technology Developer Threat Opportunity Not sure • Aggregator • Network Operator • OtherSource: IAB / AIME/ IMRG mobile commerce researchn = Sector 1 -45, sector 2- 47, sector 3- 49
  21. 21. 41% of retailers expect to have a transactional site/app within the next year (Sector 1): Which of the following mobile commerce solutions do you offer? 16% Never expect to operate 19% SECTOR 1 Expected to start after 2 years • (e)/Retailer • Brand Owner 24% Expected to start in 1 - 2 years Expected to start within 12 months Operate at the moment 8% An application / Mobile specific website which is fully transactional with credit, debit or alternativeSource: IAB / AIME/ IMRG mobile commerce research
  22. 22. Smartphone penetration will continue to grow 40 35 30 25 % 20 15 10 5 0 May-10 Oct-09 Oct-10 Sep-09 Nov-09 Dec-09 Mar-10 Apr-10 Jul-10 Nov-10 Jan-10 Feb-10 Jun-10 Aug-10 Sep-10 Dec-10Source: Comscore 3 month rolling average
  23. 23. Japan gives us an insight into the future.. In Japan, mobile commerce exceeded $10bn in 2009. 9.8 million Japanese mobile subscribers used their mobile wallet to make a purchase in Dec 2010Source: ABI Research 2011, Comscore Feb 2011
  24. 24. Analysts predict that by 2014 almost half of global mobile subscribers will pay for goods and services by mobileSource: Juniper Research April 2010
  25. 25. SUMMARY
  26. 26. Summary• We knew Christmas 2010 would be big for M Commerce, as 51% of the UK were already using M Commerce in October 2010• Mobile was big business for retailers in Christmas 2010- Ebay sold £2.1m‟s worth of goods via mobile properties in the UK along in one day.• M Commerce will only grow in the future as retailers continue to invest in mobile, and UK smartphone penetration rises.