Nielsen’s Mobile Consumer Report
Nielsen have just released their Mobile Consumer Report. It’s got some interesting findings, so we thought we’d give you a summary.
The current landscape
Mobile phone ownership in both developed and high-growth countries has reached a critical mass, with no growth from the first half of 2012. The high rates of ownership are shown in the below graph:
Nevertheless, the kinds of phone we own are changing. Smartphone ownership is highest in South Korea, China, Australia and the UK, whilst those in Turkey and Brazil were most likely to own a multimedia phone. Feature phones are most popular in India, owned by 80% of all those with a device.
Some countries have a higher prevalence of multiple-device ownership, too, as highlighted by the coloured segments in these pie charts:
The report also contains interesting information on where and why we purchase our devices. 49% of Russian mobile users purchased their device at a major electronics or media store, whilst 39% of those in the UK purchased online. Factors vary by location: value for money is most important in the US, UK, Italy and China, as opposed to Russians who care about ‘stylish design’ or Chinese consumers, who want a large choice of apps.
Behaviours: shopping, social & video
Worldwide, text messaging is by far the most popular use of a mobile device. E-mail, instant messaging, social networking and the general use of apps are big too; the latter two showing high penetration in almost all markets other than India. Within the use of applications, social networking is strongest in the US, where 85% of smartphone owners are regular users, followed by 67% in Brazil and 60% in China. 58% of UK smartphone owners regularly make use of social apps.
Smartphones have the biggest impact on shopping for US users, who are most likely to use their devices for in-store price comparison, online coupons and purchasing products.
Another big use of smartphones is in watching mobile video, the frequency of which is shown below. This is most prevalent in emerging markets, especially China, and less so in the developed world, with the exception of the US.
In most countries, video is most often accessed via mobile web, but South Korean and UK users prefer to use a mobile app. In the US, both mobile web and applications are hugely popular: 72% of smartphone owners watch mobile video through these. Downloading clips is the least popular method in most countries, other than in India, where it outranks applications and Russia, where the two are level.
As smartphone usage grows, it is unsurprising that mobile advertising increases with it. In every country other than India, more than 50% of smartphone users who receive mobile ads did so at least once a day.
The effectiveness of these ads varies by country, too. In developed countries, people are less likely to click on adverts, whilst fast-developing countries see greater success. Interestingly, whilst it was shown above that Indian smartphone owners are least likely to receive ads, they are more likely to submit personal details once an ad is seen.
So, there’s a whole host of information about the differing nature of mobile ownership around the world. We’re seeing smartphones take over the developed world, with developing economies following not too far behind. All across the world, we’re using our phones for more and more exciting activities: apps, social networking, m-commerce. When it comes to mobile advertising, we’ve seen an increase in volume, which may well be responsible for a dip in effectiveness.
There’s plenty more in the report, too. For even more information, as well as details of the research methodology in different countries, make sure to have a look at the whole thing.
Small businesses want vendors to target their needs more directly
Small-business owners (SBOs) are a diverse bunch that includes more women, immigrants and young people than one finds atop big corporations. But what many have in common are modest levels of marketing expertise and technological know-how, according to a new eMarketer report, “Small Businesses as Tough B2B Customers: Shaky in Their Own Marketing, Critical of Marketing Aimed at Them.”
It’s evident that marketing is important to small-business owners. A May 2012 survey conducted by Constant Contact, which helps small businesses with email marketing and social media, asked what keeps SMOs up at night. The top response—from 76% of respondents—was “how to attract new customers.”
Though traditional media such as direct mail still claim a majority of small companies’ marketing dollars, digital spending is substantial. A Q3 2012 survey of small and medium-sized businesses (SMBs) by BIA/Kelsey found that they devoted an average of 29% of their marketing budgets to digital media.
In December 2012 and January 2013, Borrell Associates took a detailed look at the online advertising SMBs planned to invest in during 2013. Ads on Facebook and run-of-site banner ads were the leading categories.
Since SBOs are often anything but digital experts, their choice of channels may reflect personal comfort levels rather than a systematic calculation of return on investment.
It’s not surprising, then, that many rely on email as a marketing tool. In a November 2012 Ad-ology Research survey, 26.9% of respondents said email was the medium on which they spent the largest share of their ad budget, far ahead of all other digital media.
These days, one would assume even the smallest company would have a website. But Ad-ology found that three in 10 small businesses did not.
As for social media, Constant Contact’s Mark Schmulen, general manager of social media, said the tough economy has boosted SBOs’ adoption of social media, “but probably for the wrong reasons. The perception is that social media marketing is free.” But success on social platforms requires “time and energy—and often money,” he said.
Tight budgets notwithstanding, SBOs would likely be more inclined to open their wallets if the marketing aimed at them struck a chord—but it often does not. Small-business owners complain that companies don’t market to them effectively or make the effort to understand their business.
In buying things, owners aren’t tapping a line in an institutional budget. “When they spend money for their business, it’s like pulling money right out of their own pocketbook,” said Schmulen. Thus, it’s crucial for marketers to convince a small-business owner that a product or service isn’t merely good in the abstract but is good for that person’s specific business.
The full report, “Small Businesses as Tough B2B Customers: Shaky in Their Own Marketing, Critical of Marketing Aimed at Them” also answers these key questions:
- What is the demographic mix among SBOs?
- How skilled are SBOs at marketing their businesses?
- What sorts of technology do SBOs use, and how digitally adept are they?
- How do SBOs feel about the ways big companies try to sell them goods and services?
This report is available to eMarketer corporate subscription clients only. eMarketer clients, log in and view the report now.
Read more at http://www.emarketer.com/Article/Small-Businesses-Strapped-Time-Cash-Seek-Marketing-Efficiency/1009691#gq9CCRCt5KAvZfIO.99
Source: Business Insider | Sep. 13, 2012, 9:30 AM
Mobile devices are playing an increasingly large role in commerce.
So, how are consumers using their phones in the shopping process?
- Buying items directly: Mobile is driving an increasingly large share of traffic to ecommerce sites. Forrester Research forecasts U.S. mobile commerce to hit $10 billion this year, up from $6 billion in 2010. Mobile sales made up 6.6% of Cyber Monday sales in 2011, more than double the percentage of the previous year.
- Opening emails for discounts and coupons: Email is a crucial marketing channel for companies like Gilt Groupe, Groupon, and LivingSocial. Since many consumers access email mainly through their phones, mobile has become an important marketing channel.
- Research and comparison shopping: Mobile shoppers are likely to use their phones in-store to compare prices and consult on potential purchases with friends. An analysis by Deloitte estimates mobile will influence $158 billion of in-person retail sales this year. This is a big problem for brick-and-mortar retailers, as it brings ecommerce competition directly into their stores.
- In-Store Payments: Consumers are beginning to make payments directly with their phones. According to Nielsen, 9% of mobile shoppers have paid for goods or services at point of sale. NFC probably won’t be the solution that powers this change though, but new apps like Pay with Square and Apple’s Passbook are promising.
In full, the report also looks at:
- The most popular mobile activities: We take a look at usage patterns around social networking, gaming, email, weather, search, and maps.
- The growth of the mobile web: We take a deep dive into mobile browser and app usage patterns and analyze the recent trends.
- How users are consuming content on their mobile devices: We take a look at how mobile users are consuming books, video, news, and music on their mobile devices.
The share of all email opens occurring on mobile devices reached 36% in the first half of 2012, representing almost 80% growth from roughly 20% in H1 2011, details a report[download page] released in September 2012 by Knotice. Mobile phones accounted for 25.9% of opens, up from 20.6% in H2 2011, while tablets accounted for 10.2% share, up from 6.8%.
iPhones continued to dominate among mobiles, holding 19.7% share of total email opens, far ahead of Android’s 5.9% share. Similarly, the iPad’s share of total opens outstripped that of Android tablets (9.6% vs. 0.4%). The share of opens on iPhones and iPads grew by 25.6% and 47.2%, respectively, from H2 2011.
Mobile Email Opens Differ Across Industries
Details from Knotice’s “Mobile Email Opens Report: 1st Half of 2012″ indicate that the share of email opens occurring on mobile devices showed some significant variety when segregated by industry. For example, the consumer services sector saw 42.2% of email opens occurring on a mobile device, while only 16.1% of email opens in the health care industry occurred on a mobile.
The consumer services industry sported the highest share of email opens on mobile phones (34%), followed by the financial services (32.7%), entertainment (26.5%), cable and telco (25.7%), and retail (24.4%) industries. In terms of share of emails opens on a tablet, retail (11.1%) topped the 11 industries, followed by the hospitality (10.2%), cable and telco (10.1%) and education (9.2%) sectors.
Mobile Phone, Tablet Click Rates Continue to Lag Desktop
Further details from the report reveal that click-to-open (CTO) rates for mobile phones and tablets, while relatively on par, continue to trail desktop CTO rates significantly. Examining CTO rates by industry, the study finds the financial services industry had the highest rate on both mobile phones (15%) and tablets (21.8%). Even so, that rate stood at 30.1% on desktops.
Other industries showed similarly lower CTO rates on mobile devices compared to desktop, including: consumer products (12.3% on phones; 13.9% on tablets; 21.3% on desktops); entertainment (6.7% on phones; 7.9% on tablets; 14% on desktops); and retail (7.8% on phones; 8.3% on tablets; 17.2% on desktops).
Knotice suggests that this disparity is due to email marketers still not optimizing email content for mobile users. Indeed, a study released in July 2012 by Pardot found just one-quarter of the more than 100 B2B marketers surveyed saying they optimize their emails for mobile devices. That is reflected in the Knotice report: for the B2B sector, the CTO rate was just 4.1% on mobile phones and 5.1% on tablets, while it was 14.2% on desktops.
Mobile Phone Engagement Higher Soon After Delivery
The “on-the-go” nature of mobile phones enables consumers to be almost constantly connected, and Knotice data finds that consumers are indeed frequently checking their emails on their devices. Looking at the share of opens occurring on mobile devices based on the time following delivery, the report shows finds that engagement in the first 90 minutes post-delivery is much higher on mobile phones than on tablets and desktops. This trend continues until about 5 hours following delivery, at which point the gap disappears.
Of note, though, those emails opened on a mobile phone immediately after delivery aren’t necessarily re-opened on a desktop. Examining the retail industry, the data reveals that 98% of the time, emails were opened on only one device (in just 1.4% of cases were they opened on both a desktop and a mobile phone). This further reinforces the importance of marketers optimizing their emails for mobile devices to address the “only-one-chance” predicament.
About the Data: The Knotice data is based on a composite cross sampling of approximately 807 million emails sent across 11 industry segments in the first 6 months of 2012.
- People still excited about SMS. Many retailers have realized that even though it’s been around for a while, it’s been underutilized.
- The lessening of fragmentation in the market will inevitably create more opportunities. This applies to everything form devices to carrier interoperability.
- Latin America (LATAM) is a key opportunity and also a key challenge, both from a technical and best practices perspective.
- MMS. People seem exited about it, but it’s still a cloudy topic in need of more clarity
Some themes we were surprised didn’t emerge:
- Voice and gesture as a means of communication across all devices.
- Mobile transactions, e.g., Square
- All-mobile social networks
- Mobile gaming. Which has overtaken the traditional gaming consoles and appeals to a broad range of demographics.
Our two cents:
These stats from the Stongmail survey are really not that surprising. After all, channel integration is hardly a new topic. However, what’s perhaps more interesting is the delta between Social and Mobile and Mobile with everything else. There are a few contributing factors:
- The web is inherently social now, meaning that web and social are not different channels. So what we’re really seeing here is the idea that marketers know they need to connect their email efforts to the web.
- Mobile, as with SMS and MMS based activities, requires a separately managed database. But, many marketers don’t understand how to take an existing email database and link it to a new mobile database, a task we often help our clients with.
- As a follow up to the point above, the reason that search and display have much lower percentages is because they are not inherently data-base driven marketing channels like email, web, social and mobile. And the simple fact is, that all marketing (yes, all marketing) is progressing towards a data-driven approach.