Blog
Companies Not Taking Full Advantage of Mobile Opportunities
By Julian Philips, VP of Product Management and Product Marketing
LOS ANGELES, CA May 13, 2011 – Increasing consumer adoption of smartphones has lead to expanding usage of the mobile Web and apps, as well as a boom in mobile search, mobile advertising and mobile commerce. However, many brands, retailers and publishers are missing out on the many opportunities that the mobile revolution has opened up.
A recent study commissioned by Google and conducted by Ipsos OTX found that 82% of smartphone users notice mobile ads, 74% of smartphone shoppers by something as a result of using their smartphones during the shopping process and 88% of those who look for local information on their smartphones take action within one day.
Mobile search and mobile advertising drive traffic to mobile Web sites, where consumers can find product details, ratings and reviews, store locators with directions to the closest store and even purchase products using their mobile device. Brands and retailers that do not have a mobile Web site risk alienating consumers and driving them into the arms of competitors.
Mobile advertising is also an effective way to encourage downloads of mobile applications, which have proven to be an invaluable consumer engagement tool and a way to drive foot traffic and revenues.
It is no secret that smartphones have become an important element of consumers’ daily lives.
The Google/Ipsos study found that 81% of smartphone users browse the Internet, 77% search, 68% use one or more apps and 48% watch videos on their smartphone.
In addition, 72% of respondents reported using their smartphones while consuming other media, and one-third said they did so while watching TV.
A whopping 93% of smartphone owners said that they use their smartphones while at home.
Nine out of ten smartphone searches results in an action such as making a purchase or visiting a business, while 24% recommended a brand or product to others as a result of a smartphone search.
That data clearly demonstrates an opportunity that brands and retailers cannot afford to miss.
While national and international brands have led the way in the creation of mobile Web sites, apps and ad campaigns, local businesses have much to gain from a mobile presence.
Almost all smartphone users look for local information using their mobile devices, and consumers are ready to act on the information they find.
Google/Ipsos reported that 95% of smartphone users have looked for local information, and that 88% of these users take action within a single day.
The study found that 77% have of smartphone users contacted a business, with 61% calling and 59% actually visiting the local business.
Consumers are increasingly using their smartphones as a shopping tool throughout the research and decision-making process. That means retailers and merchants must offer compelling mobile sites and apps to aid in that process.
According to the Google/Ipsos study, 79% of smartphone consumers use their phones to help with shopping, including comparing prices, finding more product information and locating a retailer.
In addition, 74% of smartphone shoppers make a purchase, whether online, in-store or on their phones, and 70% use their smartphones while in the store.
Retailers and merchants have the opportunity to influence consumers’ purchase behavior using various mobile channels.
The fact that 82% of smartphone users notice mobile ads, and half of those who see a mobile ad take action, with 35% visiting a Web site and 49% making a purchase, the mandate is clear: brands and retailers must ramp up their mobile presence or risk getting left behind by competitors.
May 18th, 2011 at 3:19 pm
Julian,
Good numbers and at a macro level, no doubt that mobile advertising is not something to be ignored by retailers. What are your thoughts on two aspects:
a. Local retailer involvement: The key to me here is being highly context and location sensitive. No point showing a coupon for coffee when the consumer is at a gift shop for example. The second thing is to be cost-effective and able to drive sufficient foot traffic into the brick and mortar retail establishments.
b. Consumer behavior across geographies: Can you throw some light on how consumer behavior may be different in India versus the US for example? Clearly, in India, retailers have other ways and heavy relationship-based mechanisms to drive loyalty and foot traffic. Does mobile advertising lend itself better to larger retailers with a brand focus?
May 30th, 2011 at 8:58 am
Thanks for your comment JB
Regarding your first point. What I’m hearing from retailers that we interact with, is that they are looking at mobile to create significant impact on awareness and brand loyalty. The purchase experience for consumers ( for retailers with a brick and mortar business ) is best in the real world store. So that’s where the maximum conversion is bound to occur. So the points you make are very valid – Getting users to their store for the first time and subsequent times is really the key role that mobile has to play in the context of retail . This could be through location based advertising or various forms of push and pull based promotions
Regarding your second point. While the underlying motivation described above seem very similar in both markets the method to achieve these are very different. India is still very text message driven so broadcast of offers and discounts still is the preferred choice of mobile marketing. While it is encouraging to see rich media advertising on mobile and the first few brand destination on mobile text messaging is pervasive. As you are aware it is bordering on spam. In a more strictly regulated market like the US this is not permissible and brands look at providing a rich and engaging platform on mobile through their apps and mobile website. Their goal is to encourage users to interact with the brand on an ongoing basis. Do keep in mind that the Internet penetration as well the smart phone penetration in the US is very high when compared to India.