comscore and Shop.org Mobile Retail Boot Camp
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1 comscore and Shop.org Mobile Retail Boot Camp Lynée Alves, Director, comscore Custom Marketing Solutions Peter Leech, Managing Director, The Partnering Group, Inc.
2 U.S. Mobile Market Overview
3 Number of Device Owners Purchases of Smartphones & Tablets Have Grown Dramatically. 142 million people now own smartphones in the U.S. over half of the Internet population. 160,000, ,000, MILLION 120,000, ,000,000 80,000, MILLION 60,000,000 40,000,000 20,000, Source: comscore MobiLens/TabLens 3 month average ending June 2013
4 Smartphones and Tablets Have Dramatically Increased Time Spent with Digital Content in the Last Three Years Total U.S. Internet Usage in Minutes (Billions) by Platform Desktop, Smartphone and Tablet % N/A Tablet % Smartphone % Desktop June 2010 June 2013 Source: comscore Media Metrix Multi-Platform, June 2013 Note: Jun-2010 Mobile is estimated based on earliest observed comscore smartphone engagement data calibrated by number of smartphone users at that time
5 Multi-Platform Consumption is Today s New Reality: Over Half of all Minutes Online are Spent on Mobile Devices 55% Mobile 45% Desktop Share of Daily U.S. Device Page Traffic. Source: comscore Media Metrix Multi-Platform, June 2013
6 Mobile Overview for Retailers
7 Among Retail Websites, 55% of all Time Spent Online is Now Accessed Via a Mobile Device Tablet 11% Smartphone 44% Desktop 45% Source: comscore Media Metrix Multi-Platform, June 2013
8 Retailers are Significantly Extending Their Overall Digital Reach Via Mobile Devices (Smartphones and Tablets) Selected Leading Retailers: Total U.S. Digital Population; Unique Visitors (000) by Platform 0 20,000 40,000 60,000 80, , , , ,000 Amazon Sites ebay Wal-Mart Apple.com Sites Target Corp. Best Buy Sites The Home Depot Etsy.com Lowes.com Sears.com 37M 28M 25M 19M 18M 18M 59M 55M 91M 149M The average Top 50 retailer extends its desktop audience by 54% via mobile channels Note: Mobile = Smartphone + Tablet PC Only PC + Mobile Mobile Only Source: comscore Media Metrix Multi-Platf orm, June 2013
9 At $4.7 Billion in Q2 2013, m-commerce Accounted for 8.6% of All Retail e-commerce Up from $3.8 Billion in Q $4.7B 5.8% 6.6% 8.8% 9.0% 9.2% 8.1% 11.3% 9.8% 10.5% 8.6% 1.8% 2.4% 3.6% Q Q Q Q Q Q Q Q Q Q Q Q Q Percentage of Retail e-commerce Dollars Spent via Mobile (Smartphone & Tablet) Source: comscore E-commerce & M-commerce Measurement
10 +30% m-commerce Growth is Significantly Outpacing Growth in e-commerce and Standalone Retail Stores +25% Q Year over Year Retail Spending Growth by Channel +24% +20% +15% +16% +10% +5% +5% +0% Total Discretionary Retail E-Commerce M-Commerce Sources: Dept. of Commerce; comscore E-commerce & M-commerce Measurement, Q2 2013
11 Mobile Overview for Retailers Shopping Activity on Smartphones and Tablets
12 About Two-Thirds of Smartphone Owners Use Their Phone for Shopping Activities Mobile Shopping Activities Among Smartphone Owners Who is shopping? 35% 65% iphone owners are slightly more likely to engage in mobile shopping activities compared to the average Smartphone owner Used Smartphone for Shopping Activities (Mobile Shopper) Did NOT Use Smartphone for Shopping Activities year olds perform shopping activities most on their Smartphones Mobile Shopper = Used deal-a-day, made shopping lists, checked product availability, compared product prices, found coupons or deals, found store location, researched product features; In-store: scanned a product barcode, sent picture of a product to family/ friends, texted or called friends/family, took picture of a product. Purchase activity not included. Source: comscore MobiLens 3 month average ending June 2013
13 Half of Tablet Owners Perform Shopping Activities on their Devices, and the Majority of Consumers use their Tablet Primarily at Home Tablet Shopping Activities Among Tablet Owners Who is shopping? 49% 51% Over one third of Tablet owners have a household income of $100k+ Used Tablet for Shopping Activities Did NOT Use Tablet for Shopping Activities year olds are most likely to shop on their Tablet Mobile Shopping Activity = Made shopping lists, checked product availability, compared product prices, found coupons or deals, found store location, researched product features. Purchasing activity is not included. Source: comscore MobiLens 3 month average ending June 2013
14 Most Tablet Owners Use Their Device More Like a PC than a Mobile Phone Q. Is the Tablet used more like a desktop/laptop or a mobile phone? 20% 18% 62% More like a PC More like a Mobile Phone Use all three similarly Source: Custom Mobile Retail Advisor Survey February 2013
15 Consumers Are More Likely to Engage in Shopping Activities on a Tablet than on a Smartphone Tablet Shopping Activities Among Tablet Owners % Smartphone Owners Researched product features Found store location Compared product prices Found coupons or deals Checked product availability Made shopping lists 20% 26% 31% 22% 35% 34% 34% 19% 24% 22% 35% 24% Researching product features, looking for store locations and comparing prices are the most popular shopping activities on tablets While in a retail store, 23% of smartphone owners took a picture of a product, and 11% said they used their phone to compare prices or find coupons/deals Source: comscore TabLens 3 month average ending June 2013
16 Mobile Overview for Retailers Purchasing on Smartphones & Tablets
17 Buyer Penetration is Higher Among Tablet Owners, but Smartphones Still Lead in Spending per Buyer Q Buyer Penetration by Platform Source: comscore e-commerce & m-commerce Measurement Q Spending per Buyer by Platform Source: comscore e-commerce & m-commerce Measurement 80% 70% 60% 69% $300 $250 $274 50% $200 40% 34% $150 30% 20% 21% $100 $76 $97 10% $50 0% Desktop Tablet Smartphone $- Desktop Tablet Smartphone
18 Apparel/Accessories, Event Tickets and Home & Garden Were the Top Three m-commerce Purchase Categories in Q Q Share of Product Category Digital Commerce Spending by Platform 60% 65% 70% 75% 80% 85% 90% 95% 100% Total Digital Commerce Apparel & Accessories Computers/Computer Hardware Consumer Electronics Event Tickets Home & Garden Furniture, Appl & Equip 5% 6% 3% 3% 7% 5% 3% 3% 3% 3% 3% 2% 4% 4% Source: comscore e-commerce & m-commerce Measurement Desktop Smartphone Tablet
19 Apparel/Accessories, Tickets and Books are the Top 3 Categories for Smartphone Purchases Types of Goods or Services Purchased % of Smartphone Purchases Apparel & Accessories 37% Event Tickets (concerts, movies, theater, sporting events) 25% Books (not ebooks) 23% Meals for delivery or pickup 22% Consumer electronics/household appliances 20% Daily deals or discount coupons 19% Personal care/hygiene products 18% Gift certificates 14% Groceries 12% Sports/Fitness equipment 11% Flowers 10% Auto/Auto parts 10% Furniture 8% Hotel accommodations 8% Airplane tickets 8% Car rental/ground transportation 5% Source: comscore MobiLens 3 month average ending June 2013
20 Clothing and Accessories are the Most Popular Tablet Purchases, Followed by Books and Tickets Types of goods or services purchased % of Tablet Purchases Apparel & Accessories 56% Books (not ebooks) 28% Event Tickets (concerts, movies, theater, sporting events) 24% Consumer electronics/household appliances 22% Daily deals or discount coupons 22% Gift certificates 20% Personal care/hygiene products 19% Meals for delivery or pickup 16% Groceries 14% Hotel accommodations 13% Airplane tickets 12% Sports/Fitness equipment 11% Flowers 9% Furniture 7% Car rental or ground transportation 6% Auto/Auto parts 6% Source: comscore TabLens 3 month average ending June 2013
21 Retailer Considerations
22 Retailer Considerations Strive for the Mobile Benchmarks Mobile is expanding total time online (and shopping trips) It s an incremental market development 55% of time spent by shoppers on retail websites is via Mobile 9-10% of total ecommerce sales from Mobile How s your company doing? Getting your Fair Share? Location and Time Driven Campaigns Mobile forces the retail marketer to reconsider the location and time context of our digital messages Target campaigns based on time of day/day of week (implied location) e.g. Early AM Monday, shopper is at home, Noon Tuesday, may be shopping in-store AND Saturday Night may be out on the town. Watch the Demos Shopping via Mobile skews to yr olds Some of this is adoption but can we remove barriers to mobile shopping for older shoppers Are there usability issues including font size, buttons? Forms?
23 Retailer Considerations Social Commerce in the Phone 26% of shoppers use phone to take photos of items in stores and share with friends - a natural, non-platform driven social commerce trend It s not Facebook, just our contact list, text and pics simple and natural and private Opportunity to create programs and promotions that encourage photos and posting Contests, Refer a Friend photos and other deals for photo sharing are key Welcome the WIFI Create a welcoming environment in store with free WIFI Drives the shopper to engage with your app check out Kohl s mobile welcome to WIFI users Opportunity to target promotions if log in with address Your site first. Don t leave them to go to Amazon or another competitor. Don t Miss the Simple Stuff Find a store location is the top shopping use for smartphones However, access to store directions on most sites is NOT simple Process must be few steps and easy with a single hand m.gap.com/storelocator is leading edge that accesses my phone location and direct links to google maps for directions
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