Mobile phone shopping diaries

Mobile Phone Shopping Diaries
An On Device Research study for the IAB
May 2012

Contents
• Methodology
• Day in the life of a Mobile Commerce User
– What, Why and How
• Uses cases:
– Where and When
– At home
– In-Store Experience
• Mobile commerce and advertising
• Summary

Methodology
• Using our US panel, we contacted 260 respondents, who opted in to take part in a 3 stage diary project, lasting a
total of 2 weeks.
• All respondents recruited owned either a Smartphone or Feature phone. The focus of the report was on mobile
phone based commerce, excluding tablet based mobile commerce.
• Stage 1: Respondents were pre screened on demographics and mobile commerce behaviour to ensure the sample
gathered was relevant and responsive.
• Stage 2: The successful 260 pre screened respondents were tasked using their mobile to check in, over a period of 1
week, whenever they used their mobile phone for commerce. Mobile commerce was described to respondents as:
Searching for products or services, Researching products or services, Purchasing/ordering products or services and
Checking prices
• Stage 3: All respondents then completed a follow up survey, which covered a range of topics from mobile commerce
spend, mobile usage in store, attitudes towards mobile advertising and how they would like mobile commerce to
progress in the future.
• Each respondent earned $10 for taking part
Stage 1: Pre Survey
• Screening
Stage 2: Mobile
Commerce Diary
• What did?
• Why?
• How feel?
• Where?
• Other media?
Stage 3: Post Follow Up
• Understanding
motivations
• Attitudes towards
mobile advertising
• Future scoping

The Mechanic is Simple
1. Mobile owners click a web link (looks like an app icon), or bookmark once they encounter a
brand.
2. They then simply select which brand they have encountered, whilst also giving permission to
take their GPS co-ordinates.
Which
activity?
What made you
do this?
How feel as a
result?
Where were
you?
Using other
media?

Day in the life of a mobile
commerce user

Mobile enhances real world commerce
• 28% of mobile commerce encounters are for finding product information
• 18% are for finding store locations, whilst 12% are for comparing prices.
• Combined together it shows that mobile commerce is linking real world commerce
to digital marketing.
• 9% of mobile commerce encounters are for purchasing digital content (apps) and
5% of encounters are for purchasing other items, such as physical items and tickets.
28%
18%
12%
9%
5%
4% 3%
Find
product/service
info
Searched for a
store location
Compared prices Purchase digital
content
Purchased non-
digital item
Checked status
on auction site
Used mobile
coupons
%Encounters
Which (mobile commerce) activity did you just use your mobile phone for?
Country: US
Date: April/May 2012
Base: Total respondents (260)
Significantly higher/lower. Tested at 95% confidence interval.

Convenience and mobile advertising drives mobile commerce activities
• When asked why consumers carried out a particular mobile commerce activity, ‘the
easiest way’ was the most popular activity.
• Mobile advertising is the second highest driver.
• Finding the best deal also comes through.
24%
22%
21%
21%
20%
16%
11%
10%
10%
It's the easiest way for me to do it
A mobile ad
Something I planned to do
Boredom/filling time
To find the best deal
Research for a future purchase
To get something immediately/didn't want to wait
Recommendation from a friend/family
The offer was too good to refuse
% of Encounters
What made you do this? (mobile commerce activity)
Country: US

Saving money is the overwhelming factor that drives mobile commerce
Country: US
• Follow up survey also showed that mobile commerce is about convenience and
getting the best deal.
Follow Up Survey: Important factors versus Most important factor
MostImportantFactor
Important Factors

Other than digital content, clothing, entertainment and consumer
electronic are the top categories for mobile commerce
• For early adopters, a potential glimpse into the future, there is only a slight
increase in their usage of digital content usage.
• For other categories, such clothing and entertainment, there is a significant
increase in usage. This suggests that this is where the growth in mobile commerce
(and therefore mobile advertising) will come from.
76%
38% 34% 33% 31% 27% 23% 21%
80%
46% 46% 44% 41% 39%
27% 27%
Group digital
categories
Clothing Entertainment
activities
(restaurant,
movies)
Consumer
electronics
Health and
Beauty
Food and
Grocery
Furniture and
other
housewares
Tickets (events,
travel)
%MobileCommerceUsers
Top Categories For Mobile Commerce Usage
Total Early adopters
Country: US

38% of mobile commerce users spend over $21 per month via
their mobile
• Although mobile commerce spending is still relatively small however 38% have
purchased items over $21 per month.
• 78% of those who have purchased via their mobile have done so using a credit or
debit card.
I don't make purchases on my
mobile, 30%
$1 to $20, 32%
$21 to $40,
12%
$41 to $60, 16%
Over $61,
10%
On an average month, how much do you spend on purchases via your mobile phone?
Country: US

Physical Goods
versus
Digital Goods
NEW SECTION

Country: US
Protection and having a specific retail app gain importance
amongst those who purchase physical goods.
OrderofImportance
Post Survey: And which ONE is the most important to you? Please select one answer only

Mobile commerce starts early morning and continues throughout
the day, peaking at late afternoon/early evening.
• It would appear that consumers begin commerce activities on their commute.
Country: US
0%
5%
10%
15%
20%
25%
30%
35%
40%
1am-3am night
time
4am - 6 am
early morning
7am - 9am
morning
10am noon late
morning
1pm - 3om
early afternoon
4pm - 6pm
afternoon
7pm - 9pm
early evening
10pm -
midnight late
evening
Total

Purchasing via mobile peaks in the late afternoon/early evening.
• However pricing checking and comparisons peak in the early afternoon when
people are more likely to be out and about.
Country: US
0%
5%
10%
15%
20%
25%
30%
35%
40%
1am-3am night
time
4am - 6 am
early morning
7am - 9am
morning
10am noon late
morning
1pm - 3om
early afternoon
4pm - 6pm
afternoon
7pm - 9pm
early evening
10pm -
midnight late
evening
Compare prices Purchase

47% of mobile commerce actions occurred at home.
Country: US
Diary Stage: Where were you?
At
Home:
47%
At
Work:
10%
Out and
About:
29%

Product information is conducted at home, location searching
whilst out and about
• 11% of price checking encounters where in the retail environment
• 21% of mobile purchasing encounters were at work
57%
29%
37%
35%
19%
49%
30%
26%
0%
10%
20%
30%
40%
50%
60%
70%
Find information on a
product/service
Searched for a store location Checked/compared prices Purchase Any Item
Where people use Mobile Commerce – By Activity
At home Group out and about
Country: US

64% use other media at the same time as mobile commerce
Country: US
Diary Stage: And were you using/looking at any other media at the same time?
36%
64%
No Yes
TV
36%
Phone
(talking)
16%
Desk/
Laptop
10%
Radio
7%
Newspaper
5%
Magazine
4%
• 36% of mobile commerce encounters are whilst consumers are watching TV

A closer look at In Home
Mobile Commerce.
Where in the home?
What are they doing?
What media are they using?
NEW SECTION

61% of In Home commerce takes place in the front room/lounge.
20% in the bedroom.
Country: US
At
Home:
47%
In which room ?
Front room/Lounge 61%
Bedroom
20%
Kitchen 8%
Garden/patio etc 8%
Bathroom 1%
Other rooms 2%

49% of In Home commerce interactions occur with the presence
of TV.
Country: US
At
Home:
47%
What media?
TV 49%
Phone (talking) 13%
Desktop/laptop 6%
Radio 4%
Press 4%
Tablet 3%
Other 4%
No, none of these 31%

A 25-34, female from NJ: How does she use her mobile in home
for commerce?
Country: US
1st In Home Commerce Activity: 18/04/12
What?: Find store location
What made her do this?: Couldn’t find store
How feel?: Helped make best decision
Where?: Living room
Other media?: TV
2nd In Home Commerce Activity: 18/04/12
What?: Purchased digital content
What made her do this?:Planned to do
How feel?: Entertained/amused
Where?: Patio
Other media?: No other media
3rd In Home Commerce Activity:
18/04/12
What?: Scanned barcode on
product/ad to get more info
What made her do this?: Planned to do
Where?: Living room
Other media?: TV
4th In Home Commerce Activity:
19/04/12
What?: Scanned barcode to recover
points for app
What made her do this?: Offer too good
to refuse
Feel?: Entertained/amused
Where?: Kitchen
5th In Home Commerce Activity: 19/04/12
What?: Purchased an item
What made her do this? Boredom
How feel?: Got best price
Where?: Living room
Other media?: TV
20/04/12
What?: Scanned UCP to receive points
from app
What made her do this? Offer too good
to refuse
Where?: Kitchen

A 25-34, male from Florida: How does he use his mobile in home
for commerce?
Country: US
1st In Home Commerce Activity: 19/04/12
What?: Find info on product/service
What made him do this?: Planned to do
How feel?: Chose right brand/retailer
Where?: Living room
Other media?: TV, phone (talking)
2nd In Home Commerce Activity: 19/04/12
What?: Check prices via browser
What made him do this?:Easiest way to do it
Where?: Kitchen
Other media?: TV, phone (talking)
3rd In Home Commerce Activity:
20/04/12
What?: Used mobile coupons/vouchers
What made him do this?:
Recommendation friend/family
How feel?: Help make best decision for
me
Where?: Living room
Other media?: Radio
4th In Home Commerce Activity: 22/04/12
What?: Check prices via browser
What made him do this?: Easiest way to do
it
Feel?: Easily find useful info
Where?: Living room
22/04/12
What?: Searched for store
location
What made him do this?: Easiest
way to do it
Feel?: Easily find useful info
Where?: Living room
Other media?: TV

49%
34% 34%
20%
15% 15% 14% 14% 13%
9%
24%
0%
10%
20%
30%
40%
50%
60%
Call/text
family
member for
advice
Check prices Taking
picture/s of
product to
send to a
friend/family
member
Check for
another store
in the area
Check
product
reviews
Fill time
when waiting
to check out
Check for
location deals
Show
shop/store
assistant the
item you are
after
Scan barcode
on
product/ad
for
information
To check
opening
times
I have not
used my
mobile phone
while
shopping in
store
Have you used your mobile phone when shopping in a store in the past 3 months? if
so, what for?
73% of mobile commerce users have used their mobile in-store
• 34% use mobile for checking prices whilst in-store
• 32% take photos to send to others – skewing towards females
• 13% have scanned a barcode
Country: US

53% have stopped a purchase in store as a result of using their mobile
• Finding a better price is the key reason behind this.
Country: US
47%
53%
No Yes 11%
11%
11%
13%
21%
30%
38%
Couldn't find info on product was planning to
purchase
Bought a similar item instead
Saw a negative review about the product
Product was out of stock/not available
Found a better item online
Found a better price online
Found a better price in another store
Follow Up: Have you ever abandoned or stopped a purchase in store as a result of using
your mobile phone in store? If so why?

A day in the life of Mobile Commerce – 25 to 34, female, Near
Atlanta
Country: US

A day in the life of Mobile Commerce – 25 to 34, female, Near
Atlanta
Country: US
1st Commerce Activity: 16/04/12
What?: Find info on product/service
What made her do this?: Find the best
deal
How feel?: Saved time, helped make best
decision, easily find useful information
Where?: Travelling (short trip)
Other media?: In store promotion
2nd Commerce Activity: 16/04/12
What?: Bid/checked auction site
What made her do this?:Offer too
good, find best deal, easiest way
How feel?: Got best price, improved
retail experience, helped make best
decision
Where?: Out and about
Other media?: Radio (driving)
3rd Commerce Activity: 18/04/12
What?: Checked prices via app
What made her do this?: Mobile ad,
research for future, best deal, easiest way
How feel?: Got best price, chose right
brand/retailer
Where?: In store/shop/mall
Other media?: Poster/billboard
4th Commerce Activity: 19/04/12
What?: Purchase item
What made her do this?: Recommendation, best deal
Feel?: Best price, improved retail experience
Where?: At work
Other media?: Desktop/laptop
What?: Purchased digital item
What made her do this? Planned to do
How feel?: Got best price
What?: Purchased an item
What made her do this? Easiest way
How feel?: Got best price, chose right
brand/retailer
Other media?: TV, Poster/billboard,
Tablet

Mobile Commerce and
Advertising
NEW SECTION

At 22%, Mobile Advertising
is the second highest driver
of mobile commerce.
What are consumers perceptions
of mobile advertising?
What opportunities exist?
As we saw on slide 9…

• 70% view mobile ads as a personal invitation
• This reflects a clear opportunity for brands and advertisers alike to engage
consumers.
Country: US
Mobile Advertising is welcomed by consumers.
70%
30%
Which of the following is closer to your view of ads on
your mobile/smartphone?
A personal invitation A personal invasion

• 40% want mobile ads they click on to allow them to browse the brand/company's
broader product offering.
• 28% want to learn more about the brand/product being advertised.
• 51% of those who see mobile ads as an invitation, want to browse further.
Country: US
Mobile advertising should give consumers more than just a ‘check
out’
25% 20%
40% 51%
28%
24%
7% 4%
Total A personal invitation
Click to buy: I want to be taken straight
through to the check-out page
Click to learn: I want to see more details
on the exact product in the advertisement
Click to browse: I want to see a page
showing a whole range of similar products
from the same company
Click to explore: I want to start at the
homepage of the company

• 30% state they like the fact that ads are personalised to them.
• 27% feel personalised ads are ok, as long as they have given their permission to
receive them.
Country: US
Relevance and permission are key if advertisers are to personalise
advertising for consumers.
30%
27%
22% 21%
37%
24%
14%
24%
0%
10%
20%
30%
40%
I like that they’re relevant to me They are ok, but only if I have given
my permission to receive them
I don’t like them – too much of my
personal information is being
shared
It makes no different that they’re
personalised – they’re just like any
other ad
How do you feel about ads that are personalized to you (ie. based on anonymous
information about where you are, your age/gender or other characteristics, etc)?

Country: US
Location, favourite brands and previous site history are the
starting blocks for relevant mobile advertising.
10%
13%
17%
19%
19%
23%
20%
27%
27%
27%
14%
11%
15%
16%
18%
21%
21%
24%
26%
28%
None of these
Your daily routine
Your recent online purchases
Your recent TV/radio viewing
Information you have shared publicly via Facebook, Twitter…
Your age/gender, whether you have kids, or other…
Information you give the “ad” at the beginning
Sites you've visited online
Your favorite brands
Your location (city or neighbourhood)
Assuming advertising has to happen, which of the following ways to make ads more
relevant to you would you be open to?

31% state that they would like proactive alerts of products they
want/need.
• 30% would like to pay for something via phone and then pick it up in store.
• 29% want a better browsing experience.
Country: US
31% 30% 29% 28%
26%
22%
0%
10%
20%
30%
40%
Proactive alerts to let me
know when products I
want or need are
available or on sale
Ability to pay for
something by phone and
pick it up in store
Better browsing
experience e.g Wifi or 4G
Mobile loyalty
cards/scheme -rewards
for paying by phone
Better/more price and
information comparisons
Mobile wallets -making it
easier to pay using my
phone
Thinking about the future of mobile commerce (searching/buying/booking
products and services via your mobile phone) how would you like this to
progress?

Mobile Commerce is not just about digital
downloads but is really linking digital
marketing with real world commerce
In tough economic times consumers are
searching for the best deal. The mobile
internet is allowing consumers to search and
find this in the best price in the best location,
be that on mobile or in the physical retail
store. This leaves retailers with no where to
hide, giving consumers true price
transparency.
Mobile advertising is a huge influencer in this
new phenomenon

 Some specifics on Mobile Commerce
1) In Home Usage:
61% of In Home Mobile Commerce occurs in the front room/lounge
TV offers a clear opportunity as an additional screen – 49% of those
who conducted mobile commerce did so with TV as an additional
media
2) Mobile Commerce and Advertising
Mobile advertising is a key driver of mobile commerce and is
welcomed by the majority of consumers, BUT:
a) It must give consumers more than just a ‘check out’
b) It must be relevant and consent must be sought
c) Location, favorite brands and previous site history are routes to
make mobile advertising more relevant to consumers
d) Future looking, consumers want a mix of features and function -
proactive alerts, the ability to buy via phone and pick up in store and
a better browsing experience.

On Device Research
alistair@ondeviceresearch.com

Mobile phone shopping diaries

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