Friday, 28 September 2012

Mobile Usage and Shopping Go Together

A recent study by ABI research based on an online consumer survey targeting smartphone and tablet device users clearly shows that consumers´media lives are very closely related to three key attributes - time, location and device. 

Time of day matters. The study found that time of day has a direct impact on how consumers use their mobile devices. For smartphone users the most important media moments of the day are early morning (social media), midday (general media usage) and primetime evening (general media usage and social media alongside TV viewing). It's harder to generalize about tablet users, but waking up stands out as a key time for engagement in social media. Tablets do not only cannibalize print media, 24% of users watch less traditional TV due to tablet based viewing. Tablet users show stronger engagement in ads, especially when people are at home relaxing they are most receptive to ads. In the case of public transport people have time at hand, but their general engagement is comparatively low. Location is the 4th most important factor enticing smartphone users to interact with ads after coupons, specific product searching, and favorite brands. 

Mobile usage and shopping go together, as nearly 70% of U.S. smartphone owners make purchases on their mobile devices. Approx. 30% of smartphone owners spend $20 or more on their smartphone per month, and 14% more than $50. As to owners of tablet devices over 80% make purchases from their tablet and 46% spend $20 or more on a monthly basis. Those spending more than $50 per month represent 22% of the tablet users.
For the 'Big Spenders' increased tablet use shows significant change in media consumption. They watch less TV and read less content from print due to tablet use. What's even more relevant is that 73% of the ´Big Spenders´ respond to ads on tablets compared with 45% of ´Big Spenders´who respond to ads on a smartphone.
Why is this relevant? The answer is easy: Shopping on mobile devices has become a $20 billion business, according to a mobile spending study by Javelin Strategy and Research. Mobile purchasing is revolutionizing all aspects of shopping, both online and in store shopping. In the report, which is based on three online surveys of smartphone owners it is detailed that $5 billion of the total amount is spent through tablets. 

Adoption of mobile shopping habits is a clear trend and this will generate even more trade in the near future as the number of tablets is expected to double over the next three years. Apps engage consumers to make purchases, why the retail industry need to create better mobile applications instead of relying on their websites. More information on the study can be found here. The report includes case studies of mobile offerings from American Express and Amazon.


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