eMarketer projects 19% of retail ecommerce sales in 2014 will be made on a smartphone or tablet. Shoppers are embracing mobile commerce—are you? Topics in this webinar include: What products are consumers buying on smartphones and tablets? Where are the most sales made—apps vs. mobile websites? What role do mobile coupons play in driving mcommerce sales? How are leading retailers converting mobile shoppers into buyers?

1. © 2014 eMarketer Inc.
sponsored by
Mobile Commerce Trends
Cathy Boyle
Senior Analyst, Mobile
July 24, 2014

2. © 2014 eMarketer Inc.
Agenda
 US retail mcommerce sales forecast
 Types of products being purchased
 Primary sources of sales
 Factors and tactics that trigger sales
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3. © 2014 eMarketer Inc.
US Retail Mobile
Commerce Sales Forecast

4. © 2014 eMarketer Inc.
This year, 19% of US retail ecommerce sales will
come from purchases made on mobile devices

5. © 2014 eMarketer Inc.
US retail mcommerce sales will continue to rise
at double-digit rates for the next four years

6. © 2014 eMarketer Inc.
Two headline-grabbing milestones are on the
horizon:
1. In 2016, 1 in 4 US retail ecommerce dollars earned
will come from mobile devices
2. In 2017, US retail mcommerce sales will top the
$100 billion mark
Source: eMarketer, April 2014
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Types of Products
Purchased

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Physical
goods
comprise the
bulk of
US retail
mcommerce
sales

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Year-over-year growth was robust for a number
of leading US retail categories in Q4 2013
 Department stores: 49.6% growth in mobile sales
 Health and Beauty: 81.7% growth
 Home Goods: 38% growth
 Apparel: 54.5% growth
Source: IBM Digital Analytics Benchmarks, Q4 2013

10. © 2014 eMarketer Inc.
However,
mcommerce’s
share of US
ecommerce
sales is still
small and the
percentage
varies widely
by retail
category
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11. © 2014 eMarketer Inc.
On the digital product side, sales are also
climbing higher each year
Download and in-app
revenues are expected
to increase by 16.3%
in 2014 and another
16.9% in 2015

12. © 2014 eMarketer Inc.
Ebooks are the
workhorses of
the digital
goods category,
but games are
steadily gaining
share

13. © 2014 eMarketer Inc.
Primary Sources of Sales

14. © 2014 eMarketer Inc.
The bulk of US retail mcommerce sales are
generated from three sources:
1. Tablet users
2. iOS users (iPhone and iPad)
3. Mobile websites
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Tablet users
generate the
bulk of
US retail
mcommerce
sales

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Tablet shoppers browse longer and add more
(and more expensive) items to carts
“The tablet mirrors desktop
behavior, so the tablet has
substantially higher
cart value, and users
are willing to purchase
larger carts.”
—Adam Foroughi, co-founder
and CEO of AppLovin
“On a tablet, they’re
leaning back and
browsing, so their
basket size will be
larger: two items,
three items.”
—Chris Mason, co-founder
and CEO, Branding Brand

17. © 2014 eMarketer Inc.
Tablet buying patterns are closer to those seen
on PCs than smartphones

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iOS users are still the most likely to buy
iPad and iPhone users
converted at higher rates
throughout 2013 compared
with users of other tablet
and smartphone brands
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One reason: The iOS population in the US
remains true to its reputation for wealth
iPhones and iPads “have a very high
price point and are attracting a type of
buyer that is extremely likely to have
expendable income, be brand
conscious and more likely to
spend money.”
—Marcos Sanchez, vice president of
corporate communications for App Annie

20. © 2014 eMarketer Inc.
Also, iPhone and iPad users overindex in four key
mobile activities:
1. Website usage
iPads represented more than 85% of US tablet visits to websites between Q1 2013
and Q1 2014; iPhones comprised between 59% and 62% of smartphone visits to
websites during the same period (Monetate)
2. Organic search
Over two-thirds of organic search traffic came from iOS devices in Q1 2014 (RKG)
3. App usage
iOS device users spend more time using apps (Flurry)
4. Email activity
iOS users generated 82% of mobile email clicks and opens in Q2–Q4 2013 (Yesmail)

21. © 2014 eMarketer Inc.
Android users
are gaining
ground in
mcommerce,
but slowly
In Q2 2013 Android
smartphone order
values were highest

22. © 2014 eMarketer Inc.
US mcommerce transactions are more likely to
occur via mobile websites
 55% of adult shoppers
polled in December 2013
said they used their
smartphone to make a
holiday purchase directly
on a website
 Only one-third (34%) used
an app
Mobile
Apps
Other
Source: Survey conducted by Baynote for the e-tailing group
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Multiple factors contribute to websites
generating more mobile sales than apps:
 Retailers gravitate to mobile websites first
– More retailers have mobile websites than apps
 Big-spending tablet users turn to the web to shop
– Tablet users spent the bulk of their time (56%) shopping on
retailers’ websites in June 2013 as opposed to apps (comScore)
 Retailers face competition from other apps
– US smartphone users spent just 2% of their mobile app time in
December 2013 using shopping-related apps (Nielsen)
 Apps often lack ecommerce functionality

24. © 2014 eMarketer Inc.
When it comes to apps, make sure the customer
journey makes sense for the customer
“There are a number of apps that
redirect back to the mobile
website to make a transaction.
Why use the app if it’s sending me
to the website anyway?”
—Len Shneyder, marketing manager at
OtherLevels

25. © 2014 eMarketer Inc.
Factors and Tactics
that Trigger Sales

26. © 2014 eMarketer Inc.
Creating the opportunity for impulse shoppers to
buy is one key to success
“A significant portion of the mobile
shopping that happened on
Black Friday actually took
place in the store. Customers
who were buying televisions actually
bought TV stands and racks for
installation [using mobile] while they
were waiting in line to pay.”
—Bao Nguyen, spokesperson for Wal-Mart
Global Ecommerce

27. © 2014 eMarketer Inc.
The basics are worth reiterating …
 Make it easy for smartphone and tablet shoppers to buy
easily, no matter which device they use
 Minimum requirements:
– A mobile website with commerce functionality (responsive design is
recommended)
– A user interface built for touch navigation
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Responsive design increased mobile sales by
183% for Champs Sports
 Mobile conversion rate increased 33%
since launch of responsive site in 2014
 Mcommerce sales grew by 183%
 Mobile visitors increased 75%
 Return visits rose 170%
Source: Mobile Commerce Daily, July 3, 2014

29. © 2014 eMarketer Inc.
Simplifying the purchase process—making it
quick and easy—drives mcommerce sales higher
After integrating Google Wallet
Instant Buy, transactions
completed with Google Wallet in
Android apps quadrupled
Newegg added Google Wallet
Instant Buy to its mobile site and
found shoppers convert 100%
more often when using the
feature compared to checking out
with other payment options
Source: Internet Retailer, Dec 11, 2013

30. © 2014 eMarketer Inc.
Giving mobile shoppers what they want—
coupons and deals—generates interest and sales
 Recent email subject line emphasized
in-app discount offer: “Spend more time
with your selfie + 40% off mobile photo
orders!”
 40% of Walgreens’ digital print orders
now come from mobile devices, up from
1% in 2010
Image source: Mobile Commerce Daily, July 14, 2014

31. © 2014 eMarketer Inc.
Mobile users not
only opt in to
receive coupons,
most redeem
them as well
 This year, more mobile
coupon users will
redeem a coupon or
code via a tablet than
through a smartphone
 That trend is expected to
reverse next year

32. © 2014 eMarketer Inc.
Key takeaways
 Mobile devices generate a significant share of US retail
ecommerce sales: 19% share in 2014, 25% in 2016
 Physical goods generate the bulk of US retail
mcommerce sales, but revenue from paid downloads
and in-app purchases is growing steadily
 Tablet users, iOS users and mobile websites are the
primary sources of US retail mcommerce sales
 Creating the opportunity for impulse shoppers to buy is
one key to success; coupons are another
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33. © 2014 Adobe Systems Incorporated. All Rights Reserved.
Adobe Mobile Consumer Survey 2014: Who are the “Mobile Elite”?
Ray Pun | Strategic Marketing for Mobile @RayPunSD

34. © 2014 Adobe Systems Incorporated. All Rights Reserved.
Adobe Mobile Consumer Survey 2014: Who are the “Mobile Elite”?
“Mobile Elite” segment spends more time and money via
mobile
• Mobile channels: Prefer mobile apps for shopping, followed by mobile
websites and finally regular websites
• Mobile wallets: 22% of the mobile elite segment reported using a
mobile wallet in the last 3 months, vs. 14% of the general consumers
• Augmented reality: 13% of the mobile elite actively used AR apps in
the last 3 months, vs. 9% for the general consumers
• Mobile assisted in-store shopping: 36% of mobile elite reported this
behavior, vs. 32% of general consumers

35. © 2014 Adobe Systems Incorporated. All Rights Reserved.
Adobe Mobile Consumer Survey: Best Practices
Download Survey: adobe.com/go/mobileconsumer2014
1. Review the mobile analytics data that you have today
2. Launch mobile channels with an optimization strategy in
place
3. Focus on “location, location, location”

36. © 2014 Adobe Systems Incorporated. All Rights Reserved.
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Creative Cloud™
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Cloud
Adobe & Mobile Marketing
Mobile Web
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38. © 2014 eMarketer Inc.
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Cathy Boyle
Mobile Commerce Trends
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