A consumer insight – How m-commerce

usage has evolved in the run up to Christmas

2010

Alex Kozloff, Mobile Manager, IAB

A consumer insight - How m-commerce usage

has evolved in the run up to Christmas 2010

Agenda

What we knew about M Commerce in 2010

M Commerce in Christmas 2010

Outlook for the future of

MCommerce

1 2

3

WHAT WE KNEW ABOUT MCOMMERCE IN

2010

UK penetration of M-Commerce

45,000,000

Mobile phone users aged 18+ in UK

26,545,000

mobile media users (59%)

22,950,000

use M-Commerce

(51%)

Mobile Media • Downloaded and used a mobile app

Downloaded a ringtone, music track,

• Used social media

• Accessed the internet / any website

• Purchased a product or a service

M-Commerce • Used mobile for research for

purchasing

• Used mobile for enhancing a

purchasing experience

• Paid for something on mobile straight

to bill

• Paid for something on mobile via

card/bank/paypal

Source: IAB Consumer M-Commerce Study October 2010, Comscore August 2010

Base = All mobile users (1039)

MOBILE RESEARCH- 43%

Used your mobile to

check prices of products /

services whilst, or before,

going shopping (36%)

Used your mobile phone

to find shop location /

opening hours / contact

details (40%)

Used mobile phone to get

more info about product /

service you are thinking

about buying (35%)

Used coupons or

vouchers on mobile

phone to get money off

products /services (21%)

M-Commerce definition & usage

levels

EXPERIENCE ENHANCEMENT- 35%

Used your mobile phone to keep

updated on something you have

purchased eg stock availability,

flight status (28%)

Used your mobile phone for loyalty

schemes, eg Tesco Clubcard

(17%)

Used your mobile phone as a ticket

for events or travel eg British

Airways, Orange Wednesdays

(23%)

Paid for a product / service /

donation by texting a short

number that is often 5 or 6

digits long eg 63336 (21%)

Paid for a product / service /

donation from your phone bill

by entering your phone

number, eg payforit (13%)

Paid for a product / service /

donation from your phone bill

using premium voice (12%)

Paid to download a piece of

content to your phone bill eg

ringtone / application / game

(32%)

PURCHASING DIRECT TO BILL- 37%

PURCHASING CARD/ BANK DETAILS-27%

Used a website on your mobile to

buy something (eg M&S, Amazon)

(19%)

Used an application on your mobile

phone to buy something (eg

Ocado, Ebay etc) (15%)

Bought an application though an

app store, eg Itunes, Nokia Ovi,

Google Marketplace (21%)

(21%)

Consumers find mobile convenient- and ease of

use is key for purchasing

47%

42%

33%

32%

29%

26%

25%

11%

11%

7%

out and about

the easiest way of doing it

it provides me with useful info*

spontaneous / impulsive decision

means I don't have to carry so much stuff*

no other online access

experimentation

it's the only way of doing it

knows where you are - more relevant info*

felt like the most secure way

average across all four commerce areas (where the same question was asked)

Why did you use your mobile for researching/buying?

Source: IAB Consumer M-Commerce Study October 2010

Base: All respondents who are involved in each area of M Commerce

* Indicates this options was only asked of one area of M-Commerce

Those who find

researching easy

are 16% more likely to make

a purchase than

those who don’t

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

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

M COMMERCE IN CHRISTMAS 2010

Mobile is a large part of „E

Commerce‟

30.2m people

visited commerce

sites on the fixed line

internet in December

2010

6.3m people

visited commerce

sites on the mobile

internet in December

2010

Mobile makes

up

17%of

the total E

Commerce

audience

(duplicated)

6.3M visits to the retail category in

December 2010

1.6M 805,000

736,000 544,000 344,000

250,000 246,000 240,000

1.6M

Source: Comscore GSMA December 2010

Ebay‟s gives an example of growth of

M Commerce in the UK over 2010

JAN ‘10 FEB ‘10 MAR ‘10 APR ‘10 MAY ‘10 JUN ‘10 JUL ‘10 AUG ‘10 SEP ‘10 OCT ‘10 NOV ‘10 DEC ‘10

$4m

Source: Ebay

Ebay‟s “Mobile Sunday”, where $3.3m

(£2.1) was spent on Ebay UK

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Source: Ebay

What sold on “Mobile Sunday” on

Ebay?

* Percentage of Gross Merchandise (GMB) based on all categories displayed in the infographic

Source: Ebay

ASOS

generated £1m

worth of sales

on it‟s mobile

site in

December

2010

Source: NMA 21/1/2011

Consumers turning to mobile for sale

shopping

Usablenet's 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 weekend

Source: Econsultancy 6/1/2011

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

OUTLOOK FOR THE FUTURE OF

MCOMMERCE

Mobile commerce is perceived as an business

opportunity in mobile

0%

94%

6%

0%

79%

21%

0%

92%

8%

Threat Opportunity Not sure

Do you see mobile commerce as a threat or an opportunity to your organisation?

Sector 1

Sector 2

Sector 3

• (e)/Retailer

• Brand Owner

•Agency

• Media Owner

• Content Provider

• Service Provider

• Solution Provider

• Technology Developer

• Aggregator

• Network Operator

• Other Source: IAB / AIME/ IMRG mobile commerce research

n = Sector 1 -45, sector 2- 47, sector 3- 49

41% of retailers expect to have a transactional

site/app within the next year

8%

24%

19%

16%

An application / Mobile specific website which is fully transactionalwith credit, debit or alternative

(Sector 1): Which of the following mobile commerce solutions do you offer?

Never expect to operate

Expected to start after 2 years

Expected to start in 1 - 2 years

Expected to start within 12 months

Operate at the moment

SECTOR 1

• (e)/Retailer

• Brand Owner

Source: IAB / AIME/ IMRG mobile commerce research

n = Sector 1 -45,

0

5

10

15

20

25

30

35

40

Sep

-09

Oct-

09

No

v-0

9

De

c-0

9

Jan-1

0

Feb-1

0

Mar-

10

Apr-

10

May-1

0

Jun-1

0

Ju

l-10

Aug

-10

Sep

-10

Oct-

10

No

v-1

0

De

c-1

0

%

Smartphone penetration will continue

to grow

Source: Comscore 3 month rolling average

Japan gives us an insight into the

future..

In Japan, mobile

commerce exceeded

$10bn in 2009.

Source: ABI Research 2011, Comscore Feb 2011

9.8 million Japanese

mobile subscribers used

their mobile wallet to

make a purchase in Dec

2010

Analysts predict

that by 2014

almost half of

global mobile

subscribers will

pay for goods and

services by mobile

Source: Juniper Research April 2010

SUMMARY

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.