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Research Brief: Mobile Coupons

According to a new study from IHL Group, reported by Marketing Charts, eight in 10 US mobile phone users currently uses or will use mobile text coupons within 24 months. The other two retail-related consumer mobile activities currently used by more than 20% of mobile phone subscribers are regular barcode and 2D barcode. Coupons on mobile screen only have 16% current engagement, but 38% planned engagement within the next 12 months, second only to text coupons in this category.

Consumer Mobile Engagement Methods (% of Respondents)
Use and Plan to Use
Engagement Method Already Use Next 12 Months 12-24 Months
Coupons 16% 38% 16%
Text coupons 25 47 9
Regular bar code 22 22 22
2D bar code 21 23 17
RFID for payment 2 9 17
Consumer self checkout 9 9 9
Competitive pricing 7 18 7
Source: IHL Group, November 2010

The study data indicates 85% of US retailers support consumer use of the iPhone/iPod platform, and 88% plan to do so in the future. This current support rate dwarfs the 55% support of the next-most-popular consumer mobile platform among retailers, the iPad platform. However, 72% of retailers plan to support consumer iPad use in the future.

While only 50% of retailers currently support consumer use of the Android platform, 79% plan to support it in the future. Windows Mobile has 43% current support and 53% planned support, while Blackberry has slightly lower current support (40%) but slightly higher future support (58%).

Consumer Mobile Platform Support (% of Respondents)
Platform Current Use Future Use
iPhone/iPod 85% 88%
iPad 55 72
Android 50 79
Blackberry 40 58
Windows mobile 43 53
Windows CE/7 23 36
Source: IHL Group, November 2010

Retailers display different preferences for supporting mobile platform use by their employees, and at much lower percentages. The iPhone/iPod and Windows Mobile platforms are tied for second place with 42% current support. However, 67% of retailers plan future iPhone/iPod support, while only 41% plan future Windows Mobile support, implying a small number of retailers currently supporting employee use of Windows Mobile devices plan to end it. Android only has 26% current support, but comparatively high 41% planned future support.

Perhaps explaining the popularity of text coupons, 94% of mobile phone owners have text included in their phone plan. This makes texting by far the most popular feature of US consumer mobile phone plans. Other popular features include email (80%) and mobile web (78%).

The data for this study were obtained by performing a web-based survey during the August-September 2010 timeframe. A total of 570 responses were used, of which 66 were retailers.

For the study from the IHL group, please access the PDF file here.

Millennial Media: Android Now Tied With iOS As The Largest Smartphone OS

Retailers Embracing Mobile Check-Out

Will retail sales clerks be roving the aisles this holiday season, ready to ring up your purchase with an iPad? Don’t count on it, but a new study suggests retailers are interested in the Apple tablet’s potential as a handheld register.

“Retailers have longed for moderately priced handheld devices for their sales associates and store managers to enhance the consumer experience,” according to the report by research and consulting firm IHL Group working with RetailConnections, which operates retail industry events. With the debut of the $500 iPad and other devices, some retailers are looking to eliminate point-of-sale (POS) or checkout locations in stores altogether.

Staff at Apple’s own stores carry iPod touch devices outfitted with a hard plastic case for scanning barcodes and swiping credit cards. They also have a stylus attached for customers to sign for credit charges. In my experience, it definitely beats standing in a long line to check out, especially during the holidays.

Barnes & Noble, Victoria’s Secret and Urban Outfitters are among other companies that have moved to equip in-store salespeople with handheld devices for speeding up the check-out process. Nearly 20% of specialty retailers plan to replace traditional POS with mobile check-out in the next two years.

The study also found retailers are warming to adoption of the iPhone among managers. While only 19% of retailers today support executives’ use of the Apple device for work, that proportion is expected to triple to 60% in the next 12 months. Similarly, iPad adoption is forecast to jump from 5% to 47% in the next year.

A survey last month of 200 companies in the U.S. and the U.K. by Sanford C. Bernstein & Co. found that 74% allow workers to use devices other than BlackBerrys.

On the consumer side, IHL Group found both the iPhone and Android-based phones taking center stage in the smartphone world. More than 56% of smartphone users are seriously considering an iPhone and 44% an Android device for their next phone. By contrast, only 24% are seriously looking at getting a BlackBerry, and only 10% a Windows smartphone.

“The iPhone is quickly replacing the BlackBerry in the mindshare of consumers and the executive office for many retailers,” noted Greg Buzek, president of IHL.

Among mobile-commerce findings, the study said 35% of smartphone users have received or redeemed a coupon received via text message and 41% have checked competitive prices while in a retail store using Amazon, Red Laser, or another comparison shopping tool.

And more than half (54%) of retailers surveyed indicated they’ll be able to scan customer coupons directly at the point-of-sale from a user’s mobile phone screen. Toys “R” Us, for instance, announced today that its stores nationwide now have the ability to scan mobile coupons and e-gifts at check-out.

The IHL/RetailConnections findings were based on a survey of 570 consumers and 66 retailers.

by Mark Walsh, Tuesday, November 9, 2010, 3:15 PM

comScore: Android Closing In, Samsung Remains Top OEM, SMS Top Mobile Content

ComScore today released new data on key trends in the U.S. mobile phone industry as seen during Q3 2010.  The report ranked the leading mobile OEMs and smartphone OS platforms in the U.S. according to their share of current mobile subscribers ages 13 and older, and reviewed the most popular mobile content usage across all demographics.

As of September, comScore indicates there are roughly 234 million Americans ages 13 and older using mobile phones.  Surprisingly, Samsung holds on to the top spot in terms of OEM device manufacturers in the US with a 23.5 percent share.  LG ranked second with 21.1 percent share, followed by Motorola (18.4 percent share), RIM (9.3 percent share, up 0.5 percentage points) and Nokia (7.4 percent share).

In regards to the all-important share for smartphone platforms in the U.S., RIM still holds the number one spot with a 37.3 percent share of smartphone subscribers, followed by Apple with a 24.3 percent share.  Google continues to gain ground in the market, rising 6.5 percentage points to capture 21.4 percent of smartphone subscribers.  Microsoft accounted for 10 percent of smartphone subscribers, while Palm rounded out the top five with 4.2 percent.  Despite losing share to Android, most smartphone platforms continue to gain subscribers as the smartphone market overall continues to grow.  In total, 58.7 million people in the U.S. owned smartphones during the three months ending in September, up 15 percent from the preceding three month period.

Most interesting was mobile content usage, with comScore indicating that SMS is still by far the most popular activity.  In September, 67 percent of U.S. mobile subscribers used text messaging on their mobile device, up 1.4 percentage points versus the prior three month period, while browsers were used by 35.1 percent of mobile subscribers (up 2.2 percentage points).  Those using mobile apps comprised 33.1 percent of the mobile audience, representing an increase of 2.5 percentage points.

Though it shouldn’t, it always surprises me how SMS remains the most popular mobile content with subscribers in all demographics.  Even with mobile apps and the mobile Web that bring the world to users’ fingertips, SMS continues to reign supreme.

Smartphone OS Market: Android Soars, iOS Remains Flat, Blackberry Continues Dive

Another day, another report on the fast-paced smartphone market.  The NPD Group today published its latest report on smartphone OS market share, with Android remaining the clear winner when compared with last year’s results.

The report focused on data concerning Q3 2010 and indicate that Android has seen substantial year-over-year gains, while Apple’s iOS remained flat and Blackberry continues its fall from the top.  In Q3 2009, Android held just 3% of all smartphones sales in the US, putting it last on the list in terms of the big three, while RIM was still flying hight with 46% of smartphone sales in the US.

What a difference a year makes.  Android has now skyrocketed to the number one position with 44% of US smartphone sales, while RIM moves into third place with just 22% of the market — less than half of what it saw just a year prior.  Apple, meanwhile, has remained steady in the number two spot with 23% of the market — down from 29% in Q3 2009.

While these numbers show Android as the clear winner, the logistics behind the open source OS make it an unfair comparison to both RIM and iOS.  Things will undoubtedly change when and if the Verizon iPhone is introduced, and newcomers like Windows Phone and an updated version of WebOS emerge.

Text Coupons Most Popular Retail-related Consumer Mobile Activity

Eight in 10 US mobile phone users currently uses or will use mobile text coupons within 24 months, according to [pdf] a new study from IHL Group and RetailConnections. Looking at a variety of retail-related consumer mobile activities, text coupons lead both in terms of current engagement (25%) and planned engagement in the next 12 months (47%). Probably due to the high percentage of consumers who will already be using mobile text coupons within 12 months, planned engagement within 12 to 24 months is only 9%, tied for second-lowest with consumer self-checkout.

The other two retail-related consumer mobile activities currently used by more than 20% of mobile phone subscribers are regular barcode (22%) and 2D barcode (21%). Coupons on mobile screen only have 16% current engagement, but 38% planned engagement within the next 12 months, second only to text coupons in this category.

iPhone/iPod Most Supported Consumer Mobile Platform by Wide Margin

Study data indicates 85% of US retailers support consumer use of the iPhone/iPod platform, and 88% plan to do so in the future. This current support rate dwarfs the 55% support of the next-most-popular consumer mobile platform among retailers, the iPad platform. However, 72% of retailers plan to support consumer iPad use in the future.

While only 50% of retailers currently support consumer use of the Android platform, 79% plan to support it in the future. Windows Mobile has 43% current support and 53% planned support, while Blackberry has slightly lower current support (40%) but slightly higher future support (58%).

4 in 10 Retailers Support Store Associate Blackberry Platform

Retailers display different preferences for supporting mobile platform use by their employees, and at much lower percentages. Part of the reason for this lower level of support may be the higher cost involved in supplying store associates with mobile devices, as opposed to letting consumers use their own devices in the store.

The iPhone/iPod and Windows Mobile platforms are tied for second place with 42% current support. However, 67% of retailers plan future iPhone/iPod support, while only 41% plan future Windows Mobile support, implying a small number of retailers currently supporting employee use of Windows Mobile devices plan to end it.

Android only has 26% current support, but comparatively high 41% planned future support. Windows CE/7 also has 26% current support, but similar to Windows Mobile planned future support for this platform dips to 22%.

Texting Most Popular Mobile Plan Feature

Perhaps explaining the popularity of text coupons, more than nine in 10 mobile phone owners (94%) have text included in their phone plan, according to other study results. This makes texting by far the most popular feature of US consumer mobile phone plans. Other popular features include email (80%) and mobile web (78%).

About the Data: The data for this study were obtained by performing a web-based survey during the August-September 2010 timeframe. A total of 570 responses were used, of which 66 were retailers.

Smartphones Now 28% of U.S. Cellphone Market

The Nielsen Company today reported that as of the third quarter of 2010, 28 percent of U.S. mobile subscribers now have smartphones, cellphones with operating systems resembling those of computers.

The growing popularity of smartphones like Apple’s iPhone, RIM’s Blackberry devices and a variety of Google Android-based models on the market, has accelerated the adoption rate. Among those who acquired a new cellphone in the past six months, 41 percent opted for a smartphone over a standard feature phone, up from 35 percent last quarter.

Compared to Europe, this puts the U.S. on a par with the U.K., which has a similar smartphone penetration rate, but well behind Spain, which boasted a smartphone penetration rate of 37 percent last quarter, and Italy, which had a smartphone penetration rate of 33 percent last quarter.  According to Nielsen’s new Global Smartphone Report, Symbian is the most popular smartphone operating system in Europe.

In the U.S., the Apple iPhone OS has practically caught up to the RIM Blackberry OS, with 28 percent and 30 percent marketshare respectively. Meanwhile, Google’s Android OS is now at 19 percent and growing. Among those who chose a device in the last six months, however, Android took the lead in Q3, while RIM Blackberry and Apple iPhone are practically tied for second place.

While owners of Android smartphones tend to be younger than those attracted to other operating systems – 50 percent of Android owners are under the age of 35 – Apple has the most smartphone users under the age of 44. Interestingly enough, smartphone owners in the U.S. are more diverse than their featurephone counterparts: One in five smartphone owners are Latino, compared to just 9 percent of featurephone owners.