Google Consumer Barometer

Global mobile research on the smartphone user and the mobile marketer from the MMA and Google

Natalie Rojowsky, Google Mobile Ads Research
Thursday, June 16, 2011 | 3:43 PM

(6/17/2011) This post has been updated with the link to the full presentation given at the MMA Forum on Thursday

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

While the mobile revolution is moving at different speeds across the globe, it is evident everywhere.  This research underscored how consumers are using their mobile devices to access the web, look for local information, and purchase products and services.  Businesses seem to be lagging behind the consumer in terms of use and support of mobile marketing which represents a significant opportunity.

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

Why Behavioral Targeting is the Future of Mobile Marketing

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.

Read article

Mobile Opt-in Best Practices

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.

How Diners Make Decisions on Restaurants and What Role Mobile Plays

Mobile Wallets are all about the data, not the transaction

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.

Read more.

How Ethnicity Affects Behavioral Differences in Consumers

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

Smartphone user study shows mobile movement under way

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.

These are some of the key findings from “The Mobile Movement: Understanding Smartphone Users,” a study from Google and conducted by Ipsos OTX, an independent market research firm, among 5,013 US adult smartphone Internet users at the end of 2010.  Join us in tomorrow’s webinar where we’ll present the full research findings. In the meantime, enjoy this research highlights video and read on for a summary of our main section findings:
General Smartphone Usage: Smartphones have become an integral part of users’ daily lives. Consumers use smartphones as an extension of their desktop computers and use it as they multi-task and consume other media.
  • 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
Action-Oriented Searchers: Mobile search is heavily used to find a wide variety of information and to navigate the mobile Internet.
  • 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
Local Information Seekers: Looking for local information is done by virtually all smartphone users and consumers are ready to act on the information they find.
  • 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
Purchase-driven Shoppers: Smartphones have become an indispensable shopping tool and are used across channels and throughout the research and decision-making process.
  • 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
Reaching Mobile Consumers: Cross-media exposure influences smartphone user behavior and a majority notice mobile ads which leads to taking action on it.
  • 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
The findings of the study have strong implications for businesses and mobile advertisers. Make sure you can be found via mobile search as consumers regularly use their phones to find and act on information. Incorporate location based products and services and make it easy for mobile customers to reach you because local information seeking is common among smartphone users.  Develop a comprehensive cross-channel strategy as mobile shoppers use their phones in-store, online and via mobile website and apps to research and make purchase decisions.  Last, implement an integrated marketing strategy with mobile advertising that takes advantage of the knowledge that people are using their smartphones while consuming other media and are influenced by it.