Mobile Audience Insights Report Q2 2014 Spotlight on Retail
Source: NinthDecimal, Q2 2014NinthDecimal.com
Research OverviewMobile 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
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).
Source: NinthDecimal, Q2 2014
1
growth in consumers who research retail products via smartphones from 2013$149.99 $74.99
$49.99 $24.99
$14.99 $59.99
Shop Now
110%
Mobile Audience Insights Report Q2 2014 Spotlight on Retail
Source: NinthDecimal, Q2 2014NinthDecimal.com 2
43%
37%40%
24%
33%
12%
25%
9%
19%
13% 16%
9%14%
11% 10%
7% 6%7%
• 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.
How Retail Consumers Use Mobile for Research & Purchasing
Electronics Clothing Shoes &Accessories
Entertainment
Research Purchase
JewelryHousehold Items
BeautySporting Goods
Children’s Items
Source: NinthDecimal, Q2 2014
Mobile Audience Insights Report Q2 2014 Spotlight on Retail
Source: NinthDecimal, Q2 2014NinthDecimal.com
Cross-Device Path-to-Purchase Behavior
3
72% research on their smartphone
Of that 72%
Of that 58%
Of that 78%
Of that 66%
Purchase on smartphone
Purchase on tablet
Purchase on laptop
Purchase in-store
58% research on their tablet
78% research on their laptop
66% research in-store
23%
8%
7%
8%
20%
34%
13%
12%
21% 38%
25% 33%
46%
17%
34%
63%
Indicates top purchasing method
Retail Consumer Research Behavior by Device Retail Consumer Purchase Behavior by Device
• 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.
Source: NinthDecimal, Q2 2014
Mobile Audience Insights Report Q2 2014 Spotlight on Retail
Source: NinthDecimal, Q2 2014NinthDecimal.com
Consumer Preferences for Researching Retail Products
How do you prefer to research retail products?
• 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.
Source: NinthDecimal, Q2 2014Source: NinthDecimal, Q2 2014
4
What devices do you use to research retail products?
2013
2014
37%
16%
20%
45%
Tablet
Tablet
Smartphone
Smartphone
45%1%1%2%
3%
7%
8%
15%
18%
Retailer’s Mobile Site
Retailer’s Branded App
Retailer’s Website
Email Notifications
Shopping Aggregator’s Mobile Site
Word of Mouth
Shopping Aggregator’s Website
Shopping Aggregator’s App
Push Notifications& Alerts
Mobile Audience Insights Report Q2 2014 Spotlight on Retail
Source: NinthDecimal, Q2 2014NinthDecimal.com
What is the average lead time for researching retail products via mobile?
Where do consumers engage with mobile to research retail items?
5
Source: NinthDecimal, Q2 2014Source: NinthDecimal, Q2 2014
Before a shopping trip
10
12
19
28
37
45
At Home
At Work
While Commuting
While Shopping
In a Store
During a shopping trip
• 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.
When & Where Retail Consumers Engage With Mobile Along the Path-to-Purchase
69%
12%
$1 - $49
$50 - $99
$100 - $249
$250 - $499
$500 - $999
$1000+
7%
6%
6%
Item Price Days
Mobile Audience Insights Report Q2 2014 Spotlight on Retail
Source: NinthDecimal, Q2 2014NinthDecimal.com
12%
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?
When are you most likely to engage with a retail mobile ad?
6
How Retail Consumers Engage with Mobile Ads
45%
73%
60%
25%
35%36%
21%
7%13%
55%
15%
Before You Shop
Yes
While in a Store
While on a Shopping Trip
No
Discou
nts/
Sales
Giveaw
ays
Produc
t Inf
orm
ation
Produc
t Rev
iews
Direct
ions t
o the
Nea
rest
Stor
e Loc
ation
Style
Tips
Offers/
Infor
mat
ion A
bout
Other
Pro
ducts
I
Might Li
ke
• 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.
Source: NinthDecimal, Q2 2014Source: NinthDecimal, Q2 2014
Source: NinthDecimal, Q2 2014
Mobile Audience Insights Report Q2 2014 Spotlight on Retail
Source: NinthDecimal, Q2 2014NinthDecimal.com 7
Advice-driven mobile ads
Discount-driven mobile ads
In-Store Mobile Advertising: How Advertisers Can Increase 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.
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
49%
61%
28%
42%
17%
13%
20%25%
8% 7% 9%
20%
12%10%
Retailer-initiated Mobile Engagement Consumers’ Preferred Mobile Engagement Source: NinthDecimal, Q2 2014
Mobile Audience Insights Report Q2 2014 Spotlight on Retail
Source: NinthDecimal, Q2 2014NinthDecimal.com
Mobile Ad Effectiveness: How Do Retail Ads Affect Drive-to-Location?
8
• 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.
20
Audience MatchedControl LCI™
Exposed Audience LCI™
40
60
80
100
120
140
160
GeneralPopulation LCI™
Audience MatchedControl LCI™
Exposed Audience LCI™
GeneralPopulation LCI™
20
40
60
80
100
120
140
160
180
200
Lift in store visits for non-retail mobile ads
Lift in store visits for 2014retail mobile ads
Increase from control group
Increase from control group
Increase from general pop.
Increase from general pop.
Lift instore visits
100 100117
193
106
12821%
65%
28%
93%
51%
Source: NinthDecimal, Q2 2014 Source: NinthDecimal, Q2 2014
Mobile Audience Insights Report Q2 2014 Spotlight on Retail
Source: NinthDecimal, Q2 2014NinthDecimal.com 9
Consumer Brand Engagement: Where Retail Shoppers Are Using Their Mobile Device
Non-retail venues:
Where do retail consumers engage with their mobile device the most?
Retail venues:
33% 31%5% 3%
8% 7%
9%
10%
13%
18%
17%
26%20%
Entertainment Venues Banks/Credit UnionsAuto Beauty Salons
Clothing Restaurants & CafésElectronics
Hotels/HospitalitySporting Goods Other
Colleges & UniversitiesBig Box Retailer Gyms
Source: NinthDecimal, Q2 2014 Source: NinthDecimal, Q2 2014
• 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%).
Mobile Audience Insights Report Q2 2014 Spotlight on Retail
Source: NinthDecimal, Q2 2014NinthDecimal.com 10
Understanding Today’s Consumer: Profiles of Electronics & Fashion Shoppers
Electronics Consumer Profile
Demographics:Demographics:
Male Male
$50-$75K $75-$100KAverage HHI: Average HHI:
Average Age: Average Age:
25-34 35-44Female Female
Fashion Consumer Profile
61% 31%39% 69%
Top venues where they use their mobile device: Top venues where they use their mobile device:
Source: NinthDecimal, Q2 2014Source: NinthDecimal, Q2 2014
Electronics consumers are also: Fashion consumers are also:
GreenConsumers
HealthEnthusiasts
CasualDiners
Fine-DiningEnthusiasts
Do-It-Yourselfers
ParentsBusinessTravelers
LeisureTravelers
SportsEnthusiasts
EntertainmentEnthusiasts
Students AutoIntender
42% 45%
31% 32%
28% 27%
21% 25%
19% 18%18%
14%
Mobile Audience Insights Report Q2 2014 Spotlight on Retail
Source: NinthDecimal, Q2 2014NinthDecimal.com
Q2 2014 Mobile Audience Insights ReportThe 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.
MethodologyNinthDecimal’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