Natalie Rojowsky, Google Mobile Ads Research
Thursday, June 16, 2011 | 3:43 PM
Today, in collaboration with the Mobile Marketing Association, we shared the initial findings from an exciting global research initiative at the MMA Forum in New York City. The research, “Global Mobile Research: The Smartphone User & The Mobile Marketer”, was conducted by Ipsos GmbH and TNS Infratest and sought to better understand mobile usage trends and business’ readiness for mobile marketing strategies. The study was comprised of two surveys: an online survey of thousands of mobile consumers in 30 countries, and the other, a telephone survey of 1,000 marketing decision makers, 200 in five key markets. Today we presented a subset of the data which focused on five countries: US, UK, France, Germany and Japan. Here are just a few of the key findings.
We gained some new insights about global smartphone user behavior:
Smartphones are a frequently used gateway to the web:
- A significant number of smartphone users accessed the internet via their smartphone every day of the past seven days: US-58%, UK-55%, France-59%, Germany-45%, Japan-78%
- And many users go online via their smartphones multiple times a day: US-53%, UK-49%, France-47%, Germany-42%, Japan-68%
Smartphone users are engaging in a variety of activities on their phone:
- Smartphone users have looked for local information on their mobile devices: US-90%, UK-81%, France-83%, Germany-85%, Japan-90%
- And these local information seekers have taken action after looking up local content: US-87%, UK-80%, France-83%, Germany-79%, Japan-80%
The smartphone is playing a critical role in shopping:
- Across the board, consumers are using their smartphone while in a store: US-82%, UK-68%, France-82%, Germany-65%, Japan-75%
- Not only are smartphone users using their mobile phones while shopping, they are also making purchases on their mobile device: US-29%, UK-28%, France-17%, Germany-28%, Japan-45%
We also gained some directional visibility into the mobile activities of marketing decision makers:
- Only a fraction of businesses in the five countries report having mobile optimized sites: US-33%, UK-17%, France-12%, Germany-37%, Japan-43%
- Fewer than a third of businesses surveyed have an app: US-19%, UK-15%, France-18%, Germany-26%, Japan-10%
- Mobile commerce strategies of the businesses we spoke with primarily target upper funnel activities: 65% reported that their mobile strategy targets the research phase of the shopping process
The full presentation is available here. In the coming months we will be releasing additional data and insights from other countries surveyed as part of this project.
Posted by: Natalie Rojowsky, Google Mobile Ads Research
While behavioral targeting is nothing new in the online world, it’s still something of a novelty for mobile. Mostly because we still lack the scale, tehcnology and inventory to do this effectively. However, the growing trend of using behavioral targeting techniques continues to gain traction across the entire spectrum of mobile, not just advertising. Simple demographic profiling, which is how media is traditionally purchased, seems flat and one dimensional when looking at mobile users. Take the retail sector for instance. In our experience, retailers don’t care so much that their target may be men 25-34, they care about why they walk into a store, scan a product with a barcode scanning app and then buy the product in the store itself. That type of behavioral understanding, which addresses the “why” vs. “who” approach to shoppers is the core of why behavioral targeting so effective.
Best practices necessitate that the SMS campaign should start by abiding to the message frequency they’ve outlined in their call to action. Telling a consumer/shopper to expect 4 messages per month, then sending 3 in the first 48 hours will sned them running for the nearest proverbial text club exit. Awaking on a Saturday morning to a text from a business telling them your store is now open late on Mondays isn’t going to win them over either.
A great example of a well executed SMS campaign is that of a Moe’s Southwest Grill location in South Florida. This Text2VIP client offered a Free Fountain Drink at the point of purchase to acquire nearly 5,000 opt-ins. They cap their frequency of touches at 4 per month, and always offer something of value. On July 4th, 2011, this particular Moe’s location offered a burrito, chips, and drink combination at a $3 discount.
Achieving 10% redemption
they drove nearly 500 customers through their door and broke same store sales records for Independence Day. Most tellingly though, may just be that of the nearly 5,000 messages sent, only one subscriber opted-out of their campaign. I largely attribute this to the quality of offer, timeliness of delivery, and restraint of messaging frequency. Not seeing the other 90% redeem an offer on what is generally considered a slow holiday isn’t the end of the world. Losing the opportunity to market to them again next week because you’ve abused your privilege-that’s another story.
While there was much excitement over the idea of being able to pay for things by simply touching a smartphone to a payment terminal, the real value of the mobile wallets is not about the transaction at all, at least not for Google. What the Mountain View mobile giant is really banking on is the vast amount of shopper data that will produced as a result. Essentially, Google knows that transactional data will generate a ton of shopper behavior, which can be leveraged and sold many ways. With this data being real-time, Google would be able to make the information available instantly to retailers, which would allow them to offer shoppers real-time incentives based on their purchasing behavior. And since the mobile wallet doesn’t just hold virtual cash, but also mobile loyalty cards and coupons, everything would instantly be available for the shoppers.
For people that don’t have a Google phone with NFC technology built in, they can add an NFC sticker that goes on the back of the phone, download the Google shopper app and they’re good to go.
Everyone behaves differently when it comes to media usage and buying behavior. As the all sectors (not just retail) move towards personalized shopper experiences, it’s importnat to understand the differences in behavior at an ethnic level. Nielsen reveals how consumers use the same resources differently. The findings show that African Americans watch the most TV, Hispanics are savvy smartphone users, and Asians are online centric. When it comes to retail, African Americans shop most frequently; Hispanics shop less often but spend more than others; and Asians take the most advantage of deals and promotions. Read More
Source: Dai Pham, Google Mobile Ads Blog, Tuesday, April 26, 2011
71% of smartphone users search because of an ad they’ve seen either online or offline; 82% of smartphone users notice mobile ads, 74% of smartphone shoppers make a purchase as a result of using their smartphones to help with shopping, and 88% of those who look for local information on their smartphones take action within a day.
- 81% browse the Internet, 77% search, 68% use an app, and 48% watch videos on their smartphone
- 72% use their smartphones while consuming other media, with a third while watching TV
- 93% of smartphone owners use their smartphones while at home
- Search engine websites are the most visited websites with 77% of smartphone users citing this, followed by social networking, retail and video sharing websites
- Nine out of ten smartphone searches results in an action (purchasing, visiting a business, etc.)
- 24% recommended a brand or product to others as a result of a smartphone search
- 95% of smartphone users have looked for local information
- 88% of these users take action within a day, indicating these are immediate information needs
- 77% have contacted a business, with 61% calling and 59% visiting the local business
- 79% of smartphone consumers use their phones to help with shopping, from comparing prices, finding more product info to locating a retailer
- 74% of smartphone shoppers make a purchase, whether online, in-store, or on their phones
- 70% use their smartphones while in the store, reflecting varied purchase paths that often begin online or on their phones and brings consumers to the store
- 71% search on their phones because of an ad exposure, whether from traditional media (68%) to online ads (18%) to mobile ads (27%)
- 82% notice mobile ads, especially mobile display ads and a third notice mobile search ads
- Half of those who see a mobile ad take action, with 35% visiting a website and 49% making a purchase