Mobile Audience Insights Report Q2 2014
Research Overview Mobile Path to Purchase Trends...2-5 Mobile Ad Influences on Consumer Behavior...6-7 Mobile Ad Effectiveness: LCI Analysis...8 Retail Consumer Profiles...9-10 Conclusion... 11 Shop Now $49.99 $24.99 $14.99 $59.99 $149.99 $74.99 110 % growth in consumers who research retail products via smartphones from 2013 Our Q2 research report focuses on understanding how mobile is impacting consumers path-to-purchase behaviors within the retail industry. Specifically, the report analyzes key trends and important industry insights in consumers location and mobile adoption. Our report delves into several key areas of analysis. The first examines how growing mobile usage is reshaping consumer behavior with respect to researching and purchasing items across the retail spectrum. The second assesses how timing, proximity, mobile ads, and in-store engagement affect consumer path-to-purchase decision-making. The third looks at ROI from retail-based mobile ads, using our Location Conversion Index and proprietary data to pinpoint key trends. Key Findings Retail mobile ads drove 51% more store traffic than non-retail mobile ads in 2014 (p. 8). Smartphones have replaced tablets as the leading mobile device that consumers use to research retail items, with a 110% growth in usage from 2013 (p. 4). Mobile engagement for retail consumers occurs earlier in the path-to-purchase than in other verticals, with 73% engaging with mobile ads and 81% researching items via mobile before they go on shopping trips as opposed to on-the-go (p. 5 & 6). While in-store, 61% of consumers would prefer to receive mobile ads with discounts or sales information, but only 49% are actually receiving these ads, indicating an opportunity for advertisers to refine their in-store strategy (p. 7). 1
How Retail Consumers Use Mobile for Research & Purchasing 43 % 37 % 40 % 24 % 33% 12 % 9 % 25 % 19 % 16 13 % % 14 % 9 % 11 % 10 7 % % 7 % 6 % Entertainment Electronics Clothing Shoes & Accessories Sporting Goods Household Items Children s Items Beauty Jewelry Research Purchase Retail consumers use their mobile device to research (37%) and purchase (43%) entertainment-related products more so than any other retail product. Retail consumers are less inclined to use their mobile to purchase specialty items (beauty, jewelry, children s items) than generic items (entertainment, electronics, clothing). For all retail categories except jewelry, consumers are more likely to use their mobile to purchase items than to research them. 2
Cross-Device Path-to-Purchase Behavior Retail Consumer Research Behavior by Device Retail Consumer Purchase Behavior by Device Purchase on smartphone Purchase on tablet Purchase on laptop Purchase in-store 72% research on their smartphone Of that 72% 23 % 20 % 21 % 38 % 58% research on their tablet Of that 58% 8 % 34 % 25 % 33 % 78% research on their laptop Of that 78% 7 % 13 % 46 % 34 % 66% research in-store Of that 66% 8 % 12 % 17 % 63 % Indicates top purchasing method Retail consumers who research on their smartphones tend to purchase almost equally across smartphones (23%), tablets (20%) and laptops (21%), whereas consumers who research via laptops and tablets tend to purchase on the same device (46% and 58%, respectively). While the majority of retail consumers (63%) who research in-store also purchase in-store, 20% rely on mobile devices (smartphones and laptops) to make their final purchases. Approximately 1/3 of retail consumers who research items on their mobile devices or laptops still prefer purchase these items directly in-store. 3
Consumer Preferences for Researching Retail Products 2013 What devices do you use to research retail products? 20 % 37 % How do you prefer to research retail products? 7 % 3 % 2 % 1 % 1 % 45 % Retailer s Website Shopping Aggregator s Website Word of Mouth 8 % Email Notifications Smartphone Tablet Retailer s Mobile Site Retailer s Branded App 2014 45 % 16 % 15 % 18 % Shopping Aggregator s Mobile Site Shopping Aggregator s App Smartphone Tablet Push Notifications & Alerts Smartphones have replaced tablets as the leading device for researching retail items, with a 110% growth in usage from 2013, while tablet usage has declined 57%. While the majority (63%) of consumers prefer to research retail products via traditional online tools (retailer s/shopping aggregator s websites), the use of mobile as a research tool is continuing to grow, up 46% from 2013. Consumers prefer retailers own branded resources over shopping aggregators resources they are 3.5x more likely to research items using a retailer s mobile site than a shopping aggregator s mobile site. 4
When & Where Retail Consumers Engage With Mobile Along the Path-to-Purchase Where do consumers engage with mobile to research retail items? At Home At Work 12 % 69 % Before a shopping trip Item Price $1 - $49 $50 - $99 $100 - $249 What is the average lead time for researching retail products via mobile? Days 10 12 19 While Commuting 7 % $250 - $499 28 While Shopping In a Store 6 % 6 % During a shopping trip $500 - $999 $1000+ 37 45 81% of retail consumers use their mobile devices to research items before they before they go on a shopping trip (either at home or at work), as opposed to on-the-go (19%). Retail consumers engage with mobile earlier in the path-to-purchase process than consumers in other verticals, beginning research of items over $1000 as much as 45 days in advance. 5
How Retail Consumers Engage with Mobile Ads In the last 30 days, have you purchased a retail product as a result of seeing a mobile ad? What information are you most likely to respond to in a retail-related mobile ad? 55 % 45 % 60 % Yes When are you most likely to engage with a retail mobile ad? 12 % 73 % No 36 % 35 % 25 % 21 % 13 % 7 % 15 % Before You Shop While on a Shopping Trip While in a Store Discounts/Sales Product Reviews Product Information Giveaways Directions to the Nearest Store Location Offers/Information About Other Products I Might Like Style Tips While the majority of retail consumers are most likely to respond to a mobile ad containing discount or sales information, at least 1/3 of consumers also prefer mobile ads with product reviews (36%) and product information (35%). Retail consumers are 6x as likely to respond to a retail-related mobile ad before they shop as opposed to when they are in a store. 6
In-Store Mobile Advertising: How Advertisers Can Increase Engagement Discount-driven mobile ads 49 % 61% 42 % Advice-driven mobile ads 28 % 17 % 13 % 20 % 25 % 8 % 7 % 9% 20 % 12 % 10 % A Coupon for a Discount on Items in that Store Notification of What Items are on Sale Store Reviews Product Reviews Style Tips Comparison Pricing from Competing Retailer Product Recommendations Based on Past Purchases Retailer-initiated Mobile Engagement Consumers Preferred Mobile Engagement Retail consumers are 37% more likely to respond to discount-driven mobile ads than advice-driven mobile ads while in-store. 61% of retail consumers want to receive mobile ads with discounts while in-store, but only 49% are actually receiving them, indicating a huge opportunity for mobile advertisers to refine their mobile ad strategy. Similarly, 42% of consumers want in-store ads telling them which items are on sale, while only 28% actually receive them. 7
Mobile Ad Effectiveness: How Do Retail Ads Affect Drive-to-Location? Lift in store visits for non-retail mobile ads 51 % Lift in store visits Lift in store visits for 2014 retail mobile ads 200 193 180 160 140 120 100 106 128 21 % 28 % Increase from Increase from 100 100 control group general pop. 160 140 120 100 117 65 % Increase from control group 93 % Increase from general pop. 80 80 60 60 40 40 20 20 General Population LCI Audience Matched Control LCI Exposed Audience LCI General Population LCI Audience Matched Control LCI Exposed Audience LCI Retail mobile ads drove a 51% greater lift in store visits than all other 2014 mobile ads. Consumers exposed to retail mobile ads visited stores 65% more than the control group of consumers who didn t see the ads. 8
Consumer Brand Engagement: Where Retail Shoppers Are Using Their Mobile Device Where do retail consumers engage with their mobile device the most? 10 % Retail venues: Non-retail venues: 5 % 3 33 % 8 % % 7 % 31 % 9 % 13 % 18 % 17 % 26 % 20 % Clothing Big Box Retailer Electronics Restaurants & Cafés Gyms Colleges & Universities Entertainment Venues Auto Sporting Goods Hotels/Hospitality Banks/Credit Unions Beauty Salons Other The top retail venues where consumers connect with their mobile devices are clothing stores (33%), big box retailers, (26%) and electronics stores (18%). Approximately 1/3 of retail consumers engage with their mobile devices while in restaurants & cafés (31%), followed by gyms (20%), and colleges & universities (17%). 9
Understanding Today s Consumer: Profiles of Electronics & Fashion Shoppers Electronics Consumer Profile Fashion Consumer Profile Demographics: Male Female Average HHI: $50-$75K Demographics: 61 % 39 % 31 % 69 % Average HHI: $75-$100K Average Age: Average Age: 25-34 Male Female 35-44 Top venues where they use their mobile device: Top venues where they use their mobile device: Electronics consumers are also: Fashion consumers are also: 42 % 45 % 31 % 32 28 % % 27 % 25 21 % % 19 % 18 % 18 % 14 % Green Consumers Casual Diners Do-It- Yourselfers Business Travelers Sports Enthusiasts Students Health Enthusiasts Fine-Dining Enthusiasts Parents Leisure Travelers Entertainment Enthusiasts Auto Intender 10
Q2 2014 Mobile Audience Insights Report The Q2 2014 Insights Report highlights recent mobile market audience usage trends for advertisers to apply to their mobile strategies and campaigns. This quarter focused on the retail industry. NinthDecimal is the leading mobile audience intelligence platform building the most comprehensive understanding of people by connecting their digital and physical lives. Our audience data is built on 1 trillion data points from over 1 billion devices, allowing us to create hundreds of customized audience segments with the scale to drive meaningful business results. NinthDecimal s precision, scale, and advanced data science allow us to build the most accurate understanding of audiences, providing clients with actionable intelligence and massive campaign reach. Our core capabilities differentiate us from any other player in the industry: Precise audience intelligence We build audiences with location as the foundation, and manage this data with the most accurate and precise approach in the industry. Audience scale With 1 billion profiled devices and 1 trillion data points from these devices, we provide relevant, recent data to create marketable moments to drive campaign success. Top-tier measurement and performance capabilities We are the only company able to measure incremental lift in foot traffic per campaign. Our audience precision delivers a 4x lift in campaign performance over other mobile targeting approaches. One audience and one integrated solution Unlike with other mobile platforms, we help marketers reach the same audience across display, video, online, and programmatic media channels. Methodology NinthDecimal s Mobile Audience Insights Report research is based on data compiled from a survey of 1,511 randomly selected mobile users, as well as the billions of data points from NinthDecimal s proprietary mobile audience intelligence platform. Location Conversion Index measures ROI by finding the normal visit rate for the general population, then comparing it against audiences both exposed and not exposed to mobile campaigns in order to measure incremental store visits. The survey data was collected from May - June 2014 while the platform data was analyzed throughout Q2 2014. The Mobile Ad Effectiveness Benchmark results were from 1H 2014. 11