mobile commerce survey results. research objectives 1.understand industry opinions towards mobile...

MOBILE COMMERCE SURVEY RESULTS

Research Objectives

1.Understand industry opinions towards mobile commerce

2.Get a measure of retailers’ mobile strategies

3.Examine what the barriers to the growth of mobile commerce are

4. Inform a strategy of what needs to be addressed as an industry

Executive Summary

• Retailers are starting to think about M Commerce, with 41% planning to have a transactional mobile site or application in place within the next year

• M Commerce is seen as a real opportunity, with 59% of retailers expecting their mobile revenues to increase over the next 12 months, and 94% see it as a real opportunity for their business.

• For the majority, M Commerce isn’t generating large revenues- 63% either make less than 1% of their total revenues via mobile, or don’t measure their mobile revenues at all at present

• There is an appetite to learn more about M Commerce- 74% of retailers stated that they would like to receive training in this mobile commerce.

Private & ConfidentialCopyright (c) 2010 eDigitalResearch.comJuly 2010

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Sample profile


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The sectors represent different respondents from the IAB/AIME/IMRG membership bases

n = 45, 47, 49

• (e)/Retailer• Brand Owner

• Agency• Media Owner• Content Provider

• Service Provider• Solution Provider• Technology Developer• Aggregator• Network Operator• Other

Sample Profile

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GenderAverage

M-commerce sector experience

9 Months

• Director

• Head of marketing

• e-Commerce Manager

• Digital Operations Manager

• Web Developer

• e-Commerce Administrator

24%

76%

Sector 1

Job title position Company’s

location

84% UK Based

• 50% South-East

• 21% Midlands

SECTOR 1• (e)/Retailer

• Brand Owner

SECTOR 2•Agency

• Media Owner• Content Provider

SECTOR 3 • Service Provider• Solution Provider

• Technology Developer• Aggregator

• Network Operator• Other

Sector 238%

62%

16 Months• Director / Publishing Director

• Head of Digital / Mobile

• Manager

• Business Development

Executive

• Media Analyst

87% UK Based

• 75% South-East

Sector 3

29%

71%

21 Months

• Head of Digital / Mobile

• Associate Director

• e-Commerce / Development

Manager

• Digital marketing Executive

• Web Developer

94% UK Based

• 82% South-East

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Survey results


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46% of retailers describe their experience with m commerce as basic.

n = 45, 47, 49 SECTOR 1


SECTOR 2•Agency






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41% of retailers expect to have a transactional site/app within the next year

n = 42


• Brand Owner



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59% of retailers expect their revenue from m commerce to increase in the next year

n = 46


• Brand Owner

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n = 47

63% of advertising industry professionals expect their revenue from m commerce to increase in the next year

SECTOR 2•Agency



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n = 43

65% of tech companies & service providers expect their revenue from m commerce to increase in the next year .





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‘Lack of retailers’ mobile site and presence’ is considered as the main ‘M-commerce market’ growth barrier by all 3 sectors.

n = 45, 47, 49 SECTOR 1


SECTOR 2•Agency






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The majority of retailers consider themselves to be beginners in most parts of M Commerce.

n = 46


• Brand OwnerPrivate & ConfidentialCopyright (c) 2010 eDigitalResearch.comJuly 2010

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n = 46

The advertising industry also consider themselves beginners in mobile commerce.

SECTOR 2•Agency



16

n = 49

Tech companies & service providers however feel more confident with M Commerce





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For all 3 sectors, there is a want for more training in M commerce

n = 34, 45, 44SECTOR 1


SECTOR 2•Agency






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60% of retailers expect mobile to part of their strategy within the next year


• Brand Owner

SECTOR 2•Agency





n = 45, 47, 49


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44% of retailers expect mobile revenues to exceed online at one point in the future.

n = 45, 47, 49


• Brand Owner

SECTOR 2•Agency






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All 3 sectors expect the M-commerce market to be developing more readily towards ‘Payments to credit

card’

n = 45, 47, 49


• Brand Owner

SECTOR 2•Agency






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‘Mobile commerce’ is perceived as an opportunity for ALL respondents.

n = 141


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‘Mobile commerce’ is perceived as an opportunity for all 3 sectors, in particular retaillers.

n = 45, 47, 49


• Brand Owner

SECTOR 2•Agency






80% of respondents agree that mobile commerce is key to the growth of mobile advertising

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n = 96

How important is growing mobile commerce to help grow the mobile advertising market?


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Opportunities

Mobiles are being used within every facet of life, for the opportunities to be fully realised, mobile operating platforms must be fully optimised for

the marketplace to take full advantage.

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Agency“More opportunities (e.g. during people's dead time) to shop

mean higher revenues for our clients”

“More opportunities (e.g. during people's dead time) to shop

mean higher revenues for our clients”

“We're a digital agency and mobile is the future of digital. with smart phones with full HTML browsers become more ubiquitous,

consumers will be more demanding of brands making their offering optimised for

mobile”

“We're a digital agency and mobile is the future of digital. with smart phones with full HTML browsers become more ubiquitous,

consumers will be more demanding of brands making their offering optimised for

mobile”

“Because any new channel means new

opportunity”

“Because any new channel means new

opportunity”

“We are an agency offering multi

channel solutions / ideas”

“We are an agency offering multi

channel solutions / ideas”

“We have a huge range of clients on our books who have a customer base already keen to use m:commerce. For

example quite a few clients are reporting seeing transactions taking place on their website via handsets.

The is despite them not having a mobile optimised site. Once these are

in place, the market for mobile advertising can only grow.”

“We have a huge range of clients on our books who have a customer base already keen to use m:commerce. For

example quite a few clients are reporting seeing transactions taking place on their website via handsets.

The is despite them not having a mobile optimised site. Once these are

in place, the market for mobile advertising can only grow.”

The more and more consumers who use mobile technology will help drive its technological development. The convenience of using the mobile is key

selling point for the industry.

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Brand owner“Customers are looking

for a richer more joined up experience and there is a billing platform built into

their web browsing experience”

“Customers are looking for a richer more joined up experience and there is a billing platform built into

their web browsing experience”

“By 2013 there will be more mobiles than computers. Personalisation will make it

easier to be more relevant. Customer behaviour will change, in conjunction with mobile technology advances continuing to

make use of mobile simpler. Payment / security issues will be resolved by the

Mobile industry.”

“By 2013 there will be more mobiles than computers. Personalisation will make it

easier to be more relevant. Customer behaviour will change, in conjunction with mobile technology advances continuing to

make use of mobile simpler. Payment / security issues will be resolved by the

Mobile industry.”

“Mobile’s allows people to engage with us when and where they want

to, they don't have to wait until they get to their computer, wallet,

purse.”

“Mobile’s allows people to engage with us when and where they want

to, they don't have to wait until they get to their computer, wallet,

purse.”

“We are in University and High street locations, our sites are already experimenting with

mobile pre order/pre payment let alone huge savings on loyalty /

CRM advantages...”

“We are in University and High street locations, our sites are already experimenting with

mobile pre order/pre payment let alone huge savings on loyalty /

CRM advantages...”

“We have a young demographic and

mobiles are second nature”

“We have a young demographic and

mobiles are second nature”

Mobiles are hardly ever switched off, thus the adverting possibilities are immense, being able to reach those hard to

reach groups / occasions

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Media owner

“Because mobile is going to be the ubiquitous web

device and payment tool”

“Because mobile is going to be the ubiquitous web

device and payment tool”

“A whole generation of consumers are growing up using their mobile's to stay

connected and ultimately this will lead (once they take over their own bills as they start

working) to commerce as a natural extension. If one of these consumers wants to purchase our product via their Android or iPhone then

as an organisation we have to be ready to deliver that or this consumer will go to a competitor and never return. Remember:

Consumers are running mission control..”

“A whole generation of consumers are growing up using their mobile's to stay

connected and ultimately this will lead (once they take over their own bills as they start

working) to commerce as a natural extension. If one of these consumers wants to purchase our product via their Android or iPhone then

as an organisation we have to be ready to deliver that or this consumer will go to a competitor and never return. Remember:

Consumers are running mission control..”

“Users are becoming more interested and open to downloading music, videos etc.

with their mobile devices which opens up advertising opportunities. As mobile

contributes such a small amount to us overall, it is definitely a positive thing to

pursue it.”

“Users are becoming more interested and open to downloading music, videos etc.

with their mobile devices which opens up advertising opportunities. As mobile

contributes such a small amount to us overall, it is definitely a positive thing to

pursue it.”

“We are a media owner, and it would

accelerate advertising”

“We are a media owner, and it would

accelerate advertising”

Increasing the number of touch-points for consumers is seen as a positive step for retailers – increasing the convenience factor for

consumers makes shopping a more enjoyable experience

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Retailer / e-Retailer

“We don't operate any mobile platform currently, so anything

we would achieve would be incremental. The barrier is the cost and the current workload with the other developments

we are pursuing.”

“We don't operate any mobile platform currently, so anything

we would achieve would be incremental. The barrier is the cost and the current workload with the other developments

we are pursuing.”

“Once upon a time, not so many years ago, Online was seen as a threat to salesmen and women or customers

would prefer tried and trusted methods of purchasing. Now websites are looked upon as enablers for both. Plus. it's important to note that the youth of today are far more mobile

savvy than older generations and they are our future customers.”

“Once upon a time, not so many years ago, Online was seen as a threat to salesmen and women or customers

would prefer tried and trusted methods of purchasing. Now websites are looked upon as enablers for both. Plus. it's important to note that the youth of today are far more mobile

savvy than older generations and they are our future customers.”

“Makes sense in a multichannel world for

retailers with both a store and online presence mobile is the glue that joins these

channels together, and makes sense for the

customer.”

“Makes sense in a multichannel world for

retailers with both a store and online presence mobile is the glue that joins these

channels together, and makes sense for the

customer.”

“Another revenue stream, especially as

more and more people are using better and

better smart phones”

“Another revenue stream, especially as

more and more people are using better and

better smart phones”

“A chance to gain incremental orders

due to the increased convenience and impulsiveness”

“A chance to gain incremental orders

due to the increased convenience and impulsiveness”

“Limiting channel access points will erode our

market share over time to companies that have

embraced the technology”

“Limiting channel access points will erode our

market share over time to companies that have

embraced the technology”

“Any new revenue stream

is an opportunity”

“Any new revenue stream

is an opportunity”

“Any easily accessible method to access our

product range will offer opportunities and we are

already looking at specific apps to promote products.”

“Any easily accessible method to access our

product range will offer opportunities and we are

already looking at specific apps to promote products.”

“Our product offering is achieved through time-limited sales

campaigns. The rigid 'start' and 'end' sales opening times mean

more customers can access them at the appropriate time, thereby

receiving a better user experience and more choice.”

“Our product offering is achieved through time-limited sales

campaigns. The rigid 'start' and 'end' sales opening times mean

more customers can access them at the appropriate time, thereby

receiving a better user experience and more choice.”

Both of these groups believe that mobile commerce does have place within the marketing mix – however it is important to have user

interfaces which are slick and make the process of using the mobile to shop a painless experience

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Service Provider

“It seems to be the logical next step in mobile interactivity: from the early

premium SMS days (voting / competitions) through to mobile

portals and smart phone apps today. It necessarily follows that mobile commerce is the growth area”

“It seems to be the logical next step in mobile interactivity: from the early

premium SMS days (voting / competitions) through to mobile

portals and smart phone apps today. It necessarily follows that mobile commerce is the growth area”

“The market is there and with the

transaction to mobile there is a lot of

space opening for such a service”

“The market is there and with the

transaction to mobile there is a lot of

space opening for such a service”

“More opportunity to build value-added

services needed by industry”

“More opportunity to build value-added

services needed by industry”

Technology Developer

“We provide secure card based payment solutions to banks and retailers. The opportunity for us is to carrying

on doing secure data management for them - in the mobile environment rather than in a cards driven world. Mobile will not replace cards entirely - at least not for a long time - but it will eat into some of the market. The banks are aware of this and are getting involved in

mobile payments.”

“We provide secure card based payment solutions to banks and retailers. The opportunity for us is to carrying

on doing secure data management for them - in the mobile environment rather than in a cards driven world. Mobile will not replace cards entirely - at least not for a long time - but it will eat into some of the market. The banks are aware of this and are getting involved in

mobile payments.”

“When slick user interfaces for paying are available people will use

them”

“When slick user interfaces for paying are available people will use

them”

Key insights

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M commerce is at the early stages of establishing itself within the multi channel strategy of retailers and other sectors.

The Retail sector does seem to be lagging slightly behind the rest of the market place in terms of developing the M commerce offer.

But this sector does have huge potential if consumer momentum drives usage – thus increasing the demand for more slicker / better user interfaces.

'Main barriers to development centre around the lack of ‘mobile presence’ and retailers’ perception that consumers are not ready to embrace M commerce

Developing better understanding of M commerce mechanics and highlighting its benefits may help to champion its cause amongst the marketing mix.

Opportunities for M commerce are very evident (Convenience, advertising, targeting of difficult consumer groups...), but must be backed up by robust platforms (Mobile operators) and linked into back office systems (Retailers)


Appendices


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Key Contacts: Michelle Fuller, Gurdev Potiwal, Tom Sondej

mobile commerce survey results. research objectives 1.understand industry opinions towards mobile...

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