mobile shopping-framework-study-2010-white-paper final

January 2011

The Mobile Shopping Framework Study:

The Role of Mobile Devices in the Shopping Process

ii

Copyright © 2011 The Nielsen Company.

Contents:

01>> I!"#$%&'"($!01 Authors

01 Study Focus

01 Abstract

02>> E)*'&"(+* S&,,-#.02 Small Screen, Big Results

02 Innovators Wanted

03 The Mobile Model

03 Key Takeaways

04 Study Findings

04 Sizing the Mobile Market

04 Mobile Shoppers Profile

04 Categories

05 Scale and Potential

05 Attitudes and Usage

05 Platforms and the Purchase Funnel

06 Tried and Successful Catagory Shopping

07 Social Shopping

08 Mobile Principles

09 Workable Solutions

10 Usage in and out of the Home

10 Overall Catagory Findings

10 Advertising Attitudes

10 Purchase Funnel

11 Creative Approaches

11 Catagory and Branding

03>> C$!'/&0($!12 Conclusion

04>> M*"1$%$/$2.13 Exemplar Categories

13 Sample Selection

13 Areas of Investigation

05>> A3$&"14 Nielsen

14 Yahoo!

14 Sourcing

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Study FocusUsing Nielsen data, Yahoo! developed an analytical framework around mobile Internet usage that measures both general and category-specific shopping behaviors and attitudes. The methodology explored 12 categories to examine differences between those shopping the category on a mobile platform vs. those shopping on a PC. Among the aspects of shopping measured were: mobile shopping activities tried, sources used, actions taken and time spent shopping on the mobile web. The 12 product and service categories can be separated into two groups:

High Incidence Mobile Categories: Mobile digital content, restaurants/dining, entertainment items/content and financial services and travel.

Low Incidence or Niche Mobile Categories: Consumer electronics/ technology, apparel/accessories, health/medical, food and beverage, beauty/personal care, home improvement and autos/parts/accessories.

The framework also investigated overall attitudes toward mobile shopping and consumer experiences while seeking category-level information. Stated mobile advertising exposures were studied to determine category recall, attitudes and preferences.

AbstractMobile is beginning to make its presence felt as a viable shopping platform, and the rate of adoption is impressive, outpacing the initial rate of adoption for personal computers as a shopping channel. This study examines current mobile shopping-related activities and the future outlook for the mobile channel.

Opportunity rings. More than 60% of the 169 million mobile device data users in the U.S. have never seen advertising on their mobile devices but express interest in mobile shopping activities. This represents huge untapped potential for advertisers and marketers.

Context enhances ad power. Nine in ten mobile-equipped shoppers have used a device in-store, representing a prime opportunity for real-time ads and brand messaging to help with search, facilitate cost comparisons, trigger impulse buys and accelerate the purchase cycle.

More yields more. More devices prompt higher utilization as mobile users power up in-store, in-home and in concert with PC browsing and TV viewing. Cross-platform campaigns can create synergies that boost advertising impact and interactivity.

Authors Ashmeed Ali, Senior Manager of Strategic Research & Insights, Primary Research Lead, Yahoo! Edwin Wong, Director of Strategic Research & Insights, Yahoo! Gateley Meeker, Senior Research Director, The Nielsen Company David Gill, Senior Director, Mobile Media and Marketing, The Nielsen Company

Additional Contributors Paul Cushman, Senior Director, Mobile Sales Strategy, Yahoo! Brian Morel, Strategic Account Director, Mobile Sales, Yahoo! Ira Amilhussin, Senior Manager, B2B Insights Marketing, Yahoo! Lauren Weinberg, Senior Director of Strategic Research & Insights, Yahoo! Jake Moskowitz, Vice President Client Services, The Nielsen Company

Social shopping gains traction. Shoppers reach out via mobile to friends and family for advice, opinion and validation when shopping. Text, email and instant messaging lead the list of shared mobile shopping activities, especially in the apparel, personal care, entertainment and digital content categories. Promising applications gaining in popularity include coupon downloads, discount codes and video uplinks to social sharing sites.

Mobile shopping influence set to explode. In the next year, the interest of mobile-assisted shoppers and searchers is expected to reach as high as 57% on average for current mobile Internet users and 41% on average among non-mobile Internet users, depending on the category.

Pent-up demand for mobile shopping continues to build, with an aggregate latent potential that looks promising compared with early PC numbers. The implication for advertisers and marketers is clear—those who understand how to deliver a satisfying mobile shopping experience will capture the hearts and wallets of online shoppers, solidifying a loyal base while competitors play catch-up.

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Small Screen, Big Results The small screen is poised to deliver big results for advertisers and marketers who develop content that resonates with mobile users. As mobile gains traction as a shopping medium, consumers are discovering more practical mobile functions from product research to coupon downloads, barcode scanning, shopping cart management, gift card purchase and social shopping, a phenomenon that may turbo-charge mobile retail.

Upside potential for mobile as a shopping channel is huge and will continue to grow as wireless networks upgrade, better mobile devices debut, applications proliferate, advertisements increase and mobile shopping experiences improve. Depending on the category, between 10% and 23% of the U.S. online population consults their mobile device for shopping information. Within the next year, those user numbers will grow to between 40% and 70% of the mobile Internet population and 30% to 56% of the non-mobile Internet population, depending on the category.

Executive Summary

Nielsen further estimates that by the end of 2011, the majority of mobile subscribers in the U.S. will own smartphones with the kind of rich features and capabilities that will make mobile shopping simple, immediate and fun.

Innovators WantedThe playing field is open for innovative companies willing to invest in the mobile medium. Consumer interest is high, but current market offerings often lag in efficiency and effectiveness. While early adopters who have attempted mobile purchases report high failure rates, an even higher number [about 50% more] expressed interest in mobile shopping. In a recent study, only 37% of data users recalled seeing an ad on their phone.

Among the strongest evidence underscoring the consumer hunger for mobile-enabled shopping is 2010 “Black Friday” sales results. The eBay mobile payment app recorded almost twice as many sales as a year ago for the traditional holiday shopping kick-off, and if the pace continues, will post mobile sales in excess of $1.5 billion for 2010.

Aspects that define mobile make it a logical fit for shopping-related activities. It is immediate, interactive and individual. Whether in a store, walking a mall, watching TV or complementing their mobile Internet usage by surfing the Internet on a PC, consumers can see an ad and immediately flow through the purchase funnel from awareness to product discovery, consideration and purchase, all on their mobile device.

Mobile shoppers demonstrate a high level of engagement with advertising. One in five shoppers who viewed advertising during the shopping process said they always look at ads. However, almost one-third of mobile shoppers attempting to respond to an ad were unsuccessful. This suggests that advertisers should consider partnering with companies experienced in the mobile channel to overcome implementation obstacles. As the market improves, with better networks and more advanced phones, this will cease to be a problem.

Shoppers made it clear that when it comes to mobile, content is king, expressing a preference for informational ads that discuss price, product features and benefits.

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The Mobile ModelCapitalizing on the potential of mobile shopping requires an understanding of the nine fundamental principles that define the platform: location, goal orientation, attentiveness, killing time, ASAP/urgency, taking my time, passion, routine and trust. The relative importance and mix of these factors varies by category, but trust and location are critically important across the board. Location deals with the immediacy mobile can deliver, and given its nascent state, people are still looking for trusted brands to help them navigate. These mobile principles will be examined more closely in a future white paper.

Key Takeaways

complements, rather than replaces, PC usage. Almost six in ten users initiate research on mobile, then follow-up on their PC. Conversely, 34% of users will initiate research on the PC and then follow-up on their mobile device. Mobile Internet also drives more incremental usage with almost half of users browsing the Internet more often because of their mobile device.

three to four times larger than mobile, consumers across categories indicated interest in accessing more mobile shopping information in the coming year.

daily lives of many users, although two-thirds of them believe the experience could be improved. Failure rates are declining due to better wireless networks and higher performing mobile devices.

is not exclusively an out-of-home experience. While slightly more mobile Internet consumers [93%] do use their phones outside the house, 89% also access the mobile Internet inside the home.

mobile phenomenon, where people call, text email, IM, share video, Twitter, Facebook and blog friends and family members while in-store to gather opinions and share information about purchases.

engagement with advertising; one in five say they always look at mobile ads during the shopping process. Advertising importance in the purchase decision increases with search time. Relevant, factual and informative ads play better with a mobile audience.

Mobile user behavior differs by category and access device. The more popular mobile categories such as digital content, restaurants/dining and entertainment, attract users who search only those categories. Conversely, niche mobile Internet category users tend to surf a variety of categories and are technology early adopters who can lead and influence trends. These lower incidence categories such as health/medical, home improvement and automobiles/parts/accessories represent targets of opportunity for portals and content developers.

Android and iPhone users are more likely than BlackBerry owners to engage in both shopping and communication activities in-store and indicate stronger interest across product categories.

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Mobile Shopper ProfileCompared to PC-only Internet users, their mobile counterparts skew younger and non-white, with higher incomes and more education, residing in urban and suburban areas. These early adopters are twice as likely to own at least a feature phone and six times as likely to own a smartphone, personal digital assistant or tablet PC.

Mobile Internet surfers who are active in niche categories [those with a low incidence rate] differ dramatically from more casual users. They represent a high interest, high potential segment, the ultimate in cross-category shoppers, active in virtually every category measured. Conversely, mobile Internet users who shopped the most popular categories [digital content, entertainment, dining and financial] were more casual, less engaged shoppers demonstrating little category overlap.

restaurant reviews and recommendations or entertainment ideas and 31 million looking up financial services. And that is just the near-term outlook.

When asked about future mobile Internet plans, the percentage of users interested in digital content, restaurant or entertainment information more than tripled to 73% per category. Consumer electronics category interest spiked to 66%, followed by travel at 61%, financial services at 58% and apparel/accessories at 57%. Add the substantial cohort of non-mobile Internet PC users intrigued by the potential of mobile shopping, and the sales potential balloons further.

Study FindingsSimilar to cutting-edge 6D cinema, by its very nature mobile shopping can reach buyers while immersed in a physical purchase environment like a mall or store that engages all the senses--sight, sound, touch, taste and smell. While mobile is a secondary shopping platform today, million mobile phone users already have viewed product advertising on their device as part of the search process, and that number is on the rise.

Sizing the Mobile MarketMobile category potential is high and beginning to scale with some 38 million users buying digital content for their phones, 34 million searching for

Entertainment items and content (such as DVDs, games, music, concert/movie tickets, TV shows/clips etc.)

Financial services (such as banking, paying bills, financial caluculators, etc.)

Packaged food and beverage (such as groceries, snack items, recipes, cooking tips, etc.)

Healthcare or medical related (such as services, remedies, medication, healthy eating, etc.)

Automobiles or automobile parts or accessories (such as repair info/tips, tires, tools, wheels, engines, brakes, etc.)

Beauty and personal care (such as shampoo make-up, perfume, grooming, beauty tips, etc.)

Clothing apparel and fashion accessories (such as style tips, jeans, shirts, outerwear, kids clothing, jewelry, footwear, sizing info, etc.)

Consumer electronics and technology (such as cell phone, digital cameras, computers, gaming consoles, GPS, etc.)

Personal or vacation travel (such as airline tickets, hotels, car rentals, etc.)

Restaurants/Dining (such as casual, fast food, bakery/cafés, fine dining or local restaurants in your area)

Home improvement (such as tips, designing-related, furnishings, accessories, repair items, indoor/outdoor, garden, etc.)

Digital content for my mobile phone (ringtones, apps, music)

Categories

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}}

Mobile Internet Usage LocationsUsage is both in and out of home – Access Frequently/Occasionally

Attitudes and UsageAlmost seven in ten mobile phone users say their device is woven into the fabric of daily life, although their online browsing encounters could be better. Mobile surfaced as a complement to, rather than a replacement for, PC usage, enhancing the Internet experience. Often, mobile users will visit a site on their phone and follow up later on a PC (59%).

Roughly three in ten users found the mobile Internet more convenient than a home connection or reported visiting different sites on their mobile than the PC, describing mobile technology as “more exciting.” Whether it’s a weekend or a weekday, mobile Internet access begins to ramp up during the morning, peaks at the lunch hour, holds steady until roughly 8 p.m. and then tapers off.

Anytime and anywhere--mobile enables shopping whenever and wherever the mood may strike. While fully 93% of mobile Internet access occurs outside the home, 89% takes place inside the home. Popular out-of-home locations include

The scale and potential of mobile category info seeking are large

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To hear about or discover a

product and service46% 48% 45% 50% 47% 46% 40% 48% 53% 53% 50% 55%

To help me learn more 47% 48% 45% 52% 49% 46% 46% 47% 54% 56% 53% 57%

To help me narrow down the selection 47% 49% 47% 51% 52% 49% 49% 51% 55% 56% 59% 61%

To help me make a final decision 48% 49% 47% 48% 50% 47% 52% 51% 55% 57% 56% 57%

To keep up-to-date on news or deals 52% 52% 51% 57% 54% 53% 55% 58% 62% 61% 61% 66%

TravelFinancialTech AutoApparelPersonal

CareMobileDigital HomeEntertainment Food &

BeverageDining Health

Over the next 12 months, which will you be using more to do each of the following for <<CATEGORY>> information/products/ services, a computer or an internet-enabled mobile device?Base=Mobile users.

Categories that have lower incidence also have the greatest ramp for future growthStated Future Use of Mobile in the Purchase Funnel (More or About the Same as PC)

At/aboveaverage

Belowaverage

higher market penetration

outdoors, waiting in line, in the car, at work, in a restaurant or bar and at a hotel. Three-quarters of in-home use takes place in the living room, 68% in the bedroom and 41% in a bathroom.

More than 85% of mobile and PC Internet users have accessed the web while watching TV, indicating there are substantial cross-promotional opportunities to reach these users. With one eye on the big screen, mobile users are:

texting family and friends [56%]

visiting social networking sites [40%]

browsing content unrelated to TV pro-gramming [37%]

emailing friends and family [33%]

using mobile applications [33%]

looking at content related to TV pro-gramming [24%]

searching for information based on a commercial they saw [23%]

instant messaging [19%].

This data mirrors Yahoo! research on PC users, as we see that mobile users often scan content unrelated to TV programming, participate on social networks and send email. Mobile allows ample opportunity for brands to continue the conversation after the TV ad is flighted.

Mobile complements both PC and Internet usage, offering a tremendous opportunity to integrate advertising across multiple platforms, extending brand conversations with consumers throughout their daily lives.

Platforms and the Purchase Funnel PC shopping delivered a better experience than mobile at every level through the purchase funnel, from discovering a product, researching options, narrowing the field, making a decision and keeping updated. This finding held true for all product categories. Within mobile, shoppers in more niche [lower incidence] categories—auto, home improvement, beauty and food/beverage—typically saw mobile as being more useful in the purchase process versus those in high incidence categories.

Marketers in these niche categories should be especially aware of the mobile shopping experience for their brands and take steps to improve it.

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This pattern remained consistent across measures, suggesting that the more advanced mobile shoppers who ventured outside the most popular categories found the mobile platform to be most helpful.

A forward-looking survey question provided proof of the surging popularity of the mobile platform. Although relatively few planned to use mobile more than the PC for shopping, a majority planned to use mobile at least as much as the PC for shopping over the next twelve months. Yahoo! mobile app users were twice as likely as non-users to claim they would rely on mobile devices for purchase funnel activities.

Mobile reigned as the platform of choice when it came to speed and convenience of search, while two-thirds relied on mobile when not near a PC or laptop. Proximity to a PC rated as more important for higher incidence categories, while convenience earned higher marks in lower incidence categories. One in three users planned on conducting more purchase-related research thanks to mobile capabilities.

Social ShoppingHistorically, shopping has been a social activity shared by friends in person, but the mobile Internet has expanded the experience by inviting friends to shop virtually alongside the consumer. Almost nine in ten shoppers accessed the mobile Internet at a retail store, while seven in ten logged on at a mall.

Texting a friend or family member while shopping was the most popular in-store mobile activity with a 70% incidence rate. Almost half of all mobile in-store activity involved transmitting a picture of a product to personal contacts for comment. The next most popular mobile co-shopping acts were communicating via email or instant messaging.

Younger mobile users requested coupons and scanned bar codes more frequently, while older users deployed mobile to gather additional product facts. This

suggests that younger shoppers might be more impulsive, more efficient, more transaction-oriented or merely more cost-sensitive than older shoppers.

More technically proficient, younger mobile users tend to utilize multi-media options as part of their social shopping experience. These savvy shoppers upload videos of impromptu fashion shows from store aisles or invite friends to vote on different ensembles posted to Facebook or MySpace.

Android and iPhone users were more likely than BlackBerry users to initiate any of the shopping actions. While three-quarters of mobile users have downloaded an application, overall usage was low, suggesting that current apps may fall short of expectations, proving too difficult to find or use. This opens a window of opportunity for content developers and marketers to fulfill an unmet need. Purchase intent and product passion sparked the majority of application downloads.

Advertisers should seize these mobile shopping opportunities, converting search and trial into action via more effective packaging or placement. Making coupons and discounts easier for mobile shoppers to find will help consumers purchase products.

Purchase DriversWhile mobile effectively moved consumers through the funnel to purchase 43% of the time, that closure rate trails the PC transaction rate of 67%. Convenience and impulse buys dominated mobile purchasing, with roughly half of respondents stating they purchased via mobile when not near a PC and one-third relying on mobile when executing an unplanned purchase.

Factors limiting mobile purchasing included the perception held by one-third of users that the medium is not safe or secure enough and that transactions are too technically difficult to complete.

Despite these barriers, approximately 25% of mobile users expressed intent to make more mobile purchases in the future, and almost 20% planned to buy more overall due to mobile transaction capability.

Mobile PrinciplesYahoo! and Nielsen delineated a set of nine principles that function as the defining characteristics for the mobile Internet and shopping experience. Applying these principles to product categories enables marketers to evaluate ad performance and fine-tune campaigns to align with the consumer outlook.

Each of the 12 categories studied boasts a unique profile defined by a subset of the mobile principles. For example, “killing time” stood out as the dominant defining principle for the mobile digital content category, which requires low involvement and offers a rich menu of quick pick options.

“Location” proved relevant across all categories, but especially significant for travel and food and beverage where proximity may influence purchase. Mobile shoppers enjoyed “taking my time” when investigating niche categories like beauty, home improvement and auto which required extensive research and feature comparisons. “Passion” came into play for categories such as electronics, apparel, beauty and automotive, where information impacted on either self-image or budget.

Mobile users in the dining, apparel, food and beverage and auto categories rated “goal orientation” as important, actively shopping with a goal in mind and achieving it.

The principle “trust” showed up as an influential descriptor for travel, clothing, financial, entertainment and auto reinforcing the importance of a safe and secure site for mobile research and transactions in these areas.

A sense of urgency [the “ASAP” criterion] defined the average mobile user in every

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Mobile Principles:Defining Characteristics for the Mobile Internet and Shopping Experience

Lines indicate above average category principle. Thickness of line indicates strength of category within principle.

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more “upper to lower” purchase funnel activities on their mobile devices in the next 12 months]. It’s not just about the high incidence digital content, dining and entertainment categories. It’s the lower incidence categories that afford the greatest opportunity for portals and developers to convert untapped mobile potential into realized sales.

Platform ParallelsActivity rates for mobile users paralleled those for PC shoppers in popularity and pattern, with more than 90% on both platforms saying they tried and/or were interested in visiting a web site, followed by more than 85% using a search engine and about 80% getting store information. The next most popular activities for mobile and PC shoppers included comparing products and services, comparing prices, reading reviews, managing shopping carts/lists, purchasing gift cards/certificates and watching online video.

Subtle differences also exist between the PC and the mobile experiences, however. Mobile shoppers appear more interactive and interested in communication (not just voice or texting), price checking and couponing.

Overall Category FindingsThe surge in mobile shopping represents just the first wave in this retail tsunami. While still in the emergent phase, some interesting category-linked shopping patterns have surfaced in the mobile channel. Mobile application usage is highest in categories that are mature purchasing engines on the PC (entertainment, financial and digital content). If this pattern holds true, clothing and electronics could be the next successful mobile categories.

Healthcare, home improvement and auto delivered the lowest mobile usage relative to PC usage. These comparatively under-served categories represent the greatest opportunity to content developers.

Consumers who shop popular categories are more likely to only shop that finite set of categories, while niche users tend to shop a wider variety of categories. Niche mobile Internet users are the early adopters of mobile shopping, and it is important that we better understand their profile.

Smaller categories have highly involved users who express strong future purchase intent [the highest percentage of users saying they plan to do the same or

category; someone in a hurry to complete a task versus savoring the search. Unexpectedly, teens age 13-17 were more likely to take their time conducting a mobile search than adults. Although a factor in mobile use, “routine” ranked as a slightly more important purchase driver than passion for any category.

Marketers can apply these mobile principles to fine tune their marketing messages. By matching ads with the characteristics of the appropriate principle, advertisers can make their ads more relevant to the target audience. These mobile principles will be examined closer in a future white paper.

Workable SolutionsClearly, it is early days for mobile shopping, but consumers have demonstrated a huge appetite for the medium. They already turn to mobile for a variety of shopping-oriented tasks ranging from the most common such as search or price comparisons, to category-specific activities like viewing account balances, reading restaurant reviews or checking the weather.

While many of the simpler mobile shopping applications work well, more advanced activities reported higher failure rates. Close to 40% of mobile consumers reported problems viewing video advertisements, while nearly one-third cited difficulty scanning bar codes, purchasing gift cards or certificates, watching a product video, managing a shopping cart, instant messaging about a purchase and accessing or responding to an ad—either a standalone ad or one embedded in search results.

Investing in mobile advertising means that marketers should work with trusted advertising partners with the technical credentials to deliver a seamless ad experience.

Please think about when you are in the following locations. When you are in each location below, how often do you access the Internet on the mobile device you use most often? “Frequently/occasionally.” Base=Mobile Internet Users.

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Top Tried and Successful Category Shopping/Research Mobile ActivitiesPercentage of respondents who said they accessed category-specific information

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Advertising AttitudesFour in ten mobile users recalled seeing category advertising during the mobile shopping process. Among those who remembered seeing ads, 20% said they always looked at ads, while 66% only occasionally viewed ads. Yahoo! app users were nearly five times as likely as non-users to always look at category ads. Financial, dining and digital content consumers were the least likely to recall seeing and ad or to view it.

Almost half of sophisticated mobile shoppers have accepted the trade-off between advertising and free content. Slightly fewer than one-third noted that they sought out additional information after viewing a mobile advertisement. Mobile users agreed that mobile ads had become more engaging lately as well as more helpful at finding geographically-relevant information, suggesting that

advertisers have begun to master and leverage the unique attributes of the platform. Younger mobile customers recorded higher rates of search after viewing ads and more readily accepted the ad/free content equation.

Consumers are open to ads that help them with their shopping experience, and marketers who can deliver the right information at the right time can dramatically influence mobile purchases.

Creative ApproachesAdvertisers should take the mobile operating system into consideration when developing creative, since all devices and all user experiences are not created equal. The survey found that content scored higher than creative presentation according to mobile device shoppers.

Mobile consumers favored ads that “clearly told me the price,” “were straightforward and fact-based,”

Informative 49% 52% 49% 54% 47% 56% 61% 54% 57% 63% 58% 57%

Relevant to Interests 45% 48% 44% 51% 38% 54% 59% 47% 55% 57% 53% 51%

Simple 36% 41% 39% 43% 33% 43% 48% 38% 42% 54% 47% 47%

Branding 24% 28% 27% 29% 24% 29% 38% 31% 37% 39% 33% 37%

Graphical/ Multimedia 21% 26% 20% 30% 22% 23% 31% 29% 28% 35% 29% 33%

TravelFinancialTech AutoApparelPersonal

CareMobileDigital HomeEntertainment Food &

BeverageDining Health

Please tell us how important the following types of ad features are to you when it comes to <<CATEGO-RY>> advertising on your mobile device. “Extremely/very/somewhat important.” Base=Mobile Internet Category Users.

It’s important that mobile advertising is…

At/aboveaverage

Belowaverage

“informative” and “spelled out the features and benefits,” which is not surprising given that immediacy is a key mobile Internet shopping characteristic. Relevance rated high as well, with users citing ads that “were useful when looking for certain information” or “targeted just to me and relevant to my interests or background.”

One-quarter to one-third of respondents believed it was important that mobile ads were entertaining and memorable, especially when linked to their current location.

Similar to the mobile principles, where the relevant attribute set and importance rating changed depending on the category, the preferred advertising technique varied by category as well. Auto, personal care/beauty, apparel, food and beverage and home improvement shoppers appeared to be the most accepting of informational advertising related to their search.

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ConclusionPeople once patted their pocket before leaving home to check for a wallet. Now that “must-have” object of interest is the mobile phone. Firmly rooted in its effectiveness as a communications platform, mobile is amping up its impact by facilitating every aspect of the shopping experience, from investigating product features, to comparing prices, locating a desired item at a specific retailer, previewing the options for friends via photo or video, through ordering and payment.

While PC transactions still outnumber mobile purchases in volume and value, the evolving platform is gaining traction quickly, with a growth trajectory that outstrips the rate of PC commerce acceptance during its early years. In fact, PC and TV use go hand-in-glove with mobile, as shoppers pursue information across platforms, opening up a new avenue for cross-platform marketing initiatives.

The phrase “shop ’til you drop” will become passé as mobile apps direct shoppers to the closest store with the right merchandise, while serving up comparative product and price information and perhaps a coupon, too.

In addition to powerful attributes like immediacy and location-based services, mobile has transformed shopping into a social exercise that envelops off-site contacts in the decision process. Most mobile users have already experimented with some aspect of mobile shopping and are eager to tap into an expanding portfolio of applications and capabilities.

Given the consumer appetite for immediate access and the ubiquity and affordability of mobile, the only limit on mobile potential as a shopping platform will be the ability of marketers and advertisers to master the medium.

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Areas of InvestigationThe study benchmarked and measured mobile behaviors and attitudes in general and, across the 12 defined categories, over time. Researchers investigated both category-exclusive and general shopping attitudes and any usage differences between shoppers accessing information on a mobile platform versus a PC. Other areas of interest included an examination of current and future purchase funnel mobile penetration; shopping outcomes attempted, completed or interrupted and subsequent actions and advertising-related category recall, attitudes and preferences.

Exemplar CategoriesTwelve representative product or service categories were selected for study: digital content, restaurant/dining, entertainment, financial services, consumer electronics/ technology, travel, apparel/accessories, health/medical, food and beverage, beauty/personal care, home improvement and autos/parts/accessories.

Sample SelectionRespondents were sourced from the Nielsen RDD/Online metered panel and supplemental mobile-centric shoppers. Panel recruitment involves a proprietary methodology that combines the representativeness of a Random Digit Dial (RDD) panel with the depth provided by an online-recruited panel. The RDD “core” of this methodology provides a baseline for representative demography and online behavior. This baseline is used to create demographic and behavioral weights for the online-recruited panel.

MethodologyIn an effort to better understand the mobile shopping process, the mobile consumer purchase funnel and ascertain any differences between shopping behavior on the PC and mobile platforms in the U.S., Yahoo! commissioned Nielsen to conduct a study of 8,384 Internet shoppers between the ages of 13–64 in June 2010. The 25-minute online survey was completed by

5,313 mobile Internet category users who both owned a mobile device with Internet access and researched informa-tion related to at least one of 12 desig-nated product categories, and

3,071 PC Internet category users who owned a desktop/laptop/tablet PC with Internet access, researched information related to at least one of 12 designated product categories and owned a mobile phone but did not access any category information via a mobile device.

About The Nielsen Company The Nielsen Company is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence, mobile measurement, trade shows and related assets. The privately held company has a presence in approximately 100 countries, with headquarters in New York, USA. For more information, please visit www.nielsen.com.

About Yahoo! Yahoo! attracts hundreds of millions of users every month through its innovative technology and engaging content and services, making it one of the most trafficked Internet destinations and a world-class online media company. Yahoo!’s vision is to be the center of people’s online lives by delivering personally relevant, meaningful Internet experiences. Yahoo! is headquartered in Sunnyvale, California. For more information, visit http://advertising.yahoo.com or the company’s blog, Yodel Anecdotal (http://yodel.yahoo.com).

SourcingThe tools and data in this report represent the intellectual property of Nielsen. The methodology and insights represent the intellectual property of Yahoo!. Kindly source all data in this report using the appropriate citations.

For more information about Nielsen, visit www.nielsen.com, for Yahoo!, visit http://advertising.yahoo.com.

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Trademarks, L.L.C. Other product and service names are trademarks or registered trademarks of their respective companies. 10/2557

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