More articles by Richard L. Tso
Mobile Drives Retail Purchases This Holiday Season
Holiday shopping can be brutal, but this year, millions of shoppers elected to circumvent the mall, breaking out their mobile phones instead. This year, Black Friday and Cyber Monday still proved to be high-transaction days of the year where most companies were able to sneak their way into the black in terms of yearly revenue. As people demand lightning quick results, this year in particular, there has been a pivotal shift toward consumers looking to mobile as a vehicle for completing their holiday purchases.
According to the global digital performance agency iProspect, they typically see monthly spend in Q4 double for mobile. “Last your our brands spent the same amount in Q4 as they did the first three quarters of the year,” said Kerri Smith, director of mobility at iProspect. “$586 billion in holiday sales is projected this year, with online holiday sales expected to reach $54.5 billion, a nearly 17 percent increase from 2011.”
2012 Black Friday/Cyber Monday Results
In a recent report by IBM, mobile traffic grew by 67 percent as people took advantage of early Black Friday sales and online sales during Thanksgiving grew by 17.4 percent and sales on Black Friday increased by 20.7 percent over last year. (Click repeatedly on the graphic to enlarge.)
Here are some additional highlights from the report:
- Mobile Shopping: Mobile purchases soared with 24 percent of consumers using a mobile device to visit a retailer’s site, up from 14.3 percent in 2011. Mobile sales exceeded 16 percent, up from 9.8 percent in 2011.
- The iPad Factor: The iPad generated more traffic than any other tablet or smart phone, reaching nearly 10 percent of online shopping. This was followed by iPhone at 8.7 percent and Android 5.5 percent. The iPad dominated tablet traffic at 88.3 percent followed by the Barnes and Noble Nook at 3.1 percent, Amazon Kindle at 2.4 percent and the Samsung Galaxy at 1.8 percent.
- Multiscreen Shopping: Consumers shopped in store, online and on mobile devices simultaneously to get the best bargains. Overall 58 percent of consumers used smartphones compared to 41 percent who used tablets to surf for bargains on Black Friday.
- The Savvy shopper: While consumers spent more overall, they shopped with greater frequency to take advantage of retailer deals and free shipping. This led to a drop in average order value by 4.7 percent to $181.22. In addition, the average number of items per order decreased 12 percent to 5.6.
- Social Sales: Shoppers referred from Social Networks such as Facebook, Twitter, LinkedIn and YouTube generated .34 percent of all online sales on Black Friday, a decrease of more than 35 percent from 2011.
Since mobile shopping is taking off in popularity resulting in a high-volume of online sales for retailers, just how much revenue is this taking away from in-store purchases? According to a survey completed by the National Retail Federation: nothing. The NRF reported that 247 million shoppers visited stores and websites over Black Friday weekend, up from 226 million last year. Making sure to take advantage of retailers’ promotions to the full extent, the average holiday shopper spent $423 that weekend, up from $398 last year. Total spending reached an estimated $59.1 billion.
“From green beans to great deals, millions of Americans found time this Thanksgiving to make the most of retailers’ promotions and enjoy a special family holiday,” said NRF President and CEO Matthew Shay. “To keep their customers excited about holiday shopping, retailers will continue to offer attractive promotions through December, and provide strong consumer value with low prices, enhanced mobile and online offerings, and unique product assortment.”
The Black Friday/Cyber Monday shopping extravaganza wasn’t limited to stores; consumers also spent more of their holiday budget online. According to the survey, the average person spent $172.42 online over the weekend, or approximately 40.7 of their total weekend spending, up from 37.8 percent last year.
Bridging Online Sales and In-Store Retail Purchases
When asked about how advertisers could be optimized to get people to come into retail brick-and-mortar stores, Smith of iProspect said, “The success of a brand’s mobile media budget should not be based solely on direct mobile-commerce or e-commerce conversions. 40 percent of mobile searches are local – indicating intent to visit a physical location. Twenty percent of women take pictures of products to share with friends/family – indicating a potential intent to purchase. Evaluating the specific revenue influenced by these non-traditional consumer ‘responses’ can be difficult though they’re undoubtedly impacting the consumer’s ultimate decision to convert or not.”
Smith referred to a recent report issued by Google and Compete that was specific to the retail category that revealed 57 percent of purchases in 2012 were web-influenced. The reasons stated for consumers to purchase online are because it is convenient (50 percent), 40 percent found lower prices and 37 percent said it’s because of online only deals. This is really then a combined influence between the retail brand and the consumers needs. They also found that 1 in 4 purchases online are impulsive.
The report identifies the typical profile of a mobile shopper:
- 36 percent are making a purchase on their phone while they are in-store, Always or Almost Every Time.
- 83 percent are between 18-44 years old.
- 72 percent are smartphone owners.
- 54 percent are male/46 percent are female.
- 52 percent make more than $50K a year.
- 32 percent make more than $75K a year.
- 83 percent of heavy mobile shoppers look for deals for nearby stores.
Programmatic advertising company RadiumOne also expects to see a major shift in campaign strategy that is increasingly focused on reaching mobile audiences – and recommends that advertisers take notice. The company recently launched a series of mobile advertising surveys aimed at examining people’s behaviors around how they interact with mobile ads and reliance on mobile devices when making purchasing decisions.
“The gap between in-store and online shopping experiences is rapidly blurring because consumers are ‘always connected’ and that connectivity creates a bridge like never before,” said Kamal Kaur, VP of Mobile and Display at RadiumOne. “Several studies, including one from RadiumOne, reveal consumers are comparison shopping on their devices while in the aisle. In order for brands and retailers to capitalize on this phenomenon, they need to build campaigns that harness geo-capabilities on mobile devices to drive in-store purchase behavior. While a potential consumer is inside a store, offer enticing deals that can be downloaded to devices and redeemed at checkout. Walgreens is a great example of taking advantage of this with their loyalty program and coupon integration as part of Apple’s iOS 5 Passbook, which has driven record app downloads and purchases in store.”
- Pingback from Mobile Drives Retail Purchases This Holiday Season | Mobile Advertising Insights | Scoop.it
Leave a Comment
- Preview: What’s Happening at Internet Week New York 2013
- Video from the Westchester Digital Summit
- Automating Core Processes Can Reduce ‘Little Big Problems’ That Ruin Customer Relationships
- Unleash the Power of Mobile: 6 Steps to Lead Generation the ‘Iron Man’ Way
- Who’s Sharing My Brand Images? Why Text-Based Social Media Monitoring Falls Short
Take the Display Advertising Survey for the Chance to Win a Jawbone Jambox!ADOTAS – Industry discussions about cookies, privacy and the impact on display advertising have been frequent — and, in some [...] more...
- Watch it Live: Xbox Reveal, 5/21 at Noon EDT/10 a.m. PDT May 20th 2013 ADOTAS (via CNET) – Check out CNET’s live coverage of [...] more »
- Today’s Burning Question: Implications of Yahoo’s Tumblr Acquisition? May 20th 2013 ADOTAS – Today we’ve solicited comments from industry leaders in [...] more »
- AFAIK: Poptent, Clear Channel Outdoor, Infusionsoft, Silverpop May 20th 2013 ADOTAS — Here’s what jumped out of my Inbox and [...] more »
- Live Twitter feed from Internet Week New York May 20th 2013 ADOTAS – This year’s Internet Week New York (#IWNY) will [...] more »
- Preview: What’s Happening at Internet Week New York 2013 May 20th 2013 ADOTAS — Digital advertising and technology collide this week as [...] more »
- Report: David Karp sells Tumblr to Yahoo! for $1.1 Billion May 20th 2013 ADOTAS (via New York’s Daily News) — Who wants to [...] more »
- It’s Not Digital – It’s Mobile May 17th 2013 ADOTAS — One of the biggest mistakes advertisers can [...] more »
- Preview: What’s Happening at Internet Week New York 2013 May 20th 2013
- Video from the Westchester Digital Summit May 17th 2013
- Automating Core Processes Can Reduce ‘Little Big Problems’ That Ruin Customer Relationships May 17th 2013
- Unleash the Power of Mobile: 6 Steps to Lead Generation the ‘Iron Man’ Way May 16th 2013
- Who’s Sharing My Brand Images? Why Text-Based Social Media Monitoring Falls Short May 16th 2013
- Print and Web Manager
- SEO Marketing PPC Specialist
- Marketing Summer Internship at Clean-Tech Educatio
- Service Line Manager - Digital Media
- SEO / SEM Specialist
- Pinterest Roundup — May 2013 | Technology for Publishing LLC: [...] Early Pinterest Analytics Show Brand Potential [...]
- YouTube Turns Eight As Platform Surpasses More Than 100 Hours Of Video … | HOW CAN I GET MONEY: [...] in the look, feel and behavior of Google Objects. The integration is easy, and
- MobiKeith: Well done. Gr8 read. Concepts can b used in general sales/marketing environment. Tx.
- Client News Weekly Wrap Up: [...] PunchTab founder and CEO Ramjet Kumaran, lists four best practices for using incentives to attract and