Posts Tagged ‘mobile advertising’





The Impact of Mobile Commerce on the Holiday Season

Posted on December 19, 2014 at 1:39 pm

If one trend emerged from the 2014 holiday season, it’s that more consumers are choosing not to wait in lines on Black Friday but instead shop at home from their smartphones and tablets. Mobile (and tablet) commerce continues to evolve in the online retail world and has become a focal point for many retail strategies during the holiday season and moving into 2015.

But what should online retailers know about the impact of mobile commerce on the holiday season? Here are a few things…

  • Mobile sales account for a large (and growing) portion of sales on key retail holidays – According to IBM, U.S. mobile sales accounted for 22% of all 2014 Cyber Monday sales and 41% of all site traffic. In general, consumers had more site sessions via smartphone devices but converted at a higher rate on tablet devices (mobile 2.2%, tablet 5.7%). Tablets also had an average order value of $121, over $20 more than smartphones.

 

  • Mobile devices are used to check prices (especially with older shoppers) – While mobile sales continue to increase, these sales are primarily skewed towards younger shoppers who are more comfortable purchasing on mobile devices. Especially for shoppers over the age of 40, mobile devices are used to check prices but rarely used to buy online (only 6% of all mobile purchases are made by consumers in this age range).

 

  • Black Friday is even more popular than Cyber Monday for mobile U.K. users – Mobile sales grew 36% year-over-year on Black Friday in the U.K. and was led by a surge in mobile traffic with over 60% of all site sessions originating from mobile devices. 47% of all 2014 Black Friday sales also occurred on mobile devices, 4% more than the Cyber Monday percentage.

 

  • In-store mobile payments are also becoming more common – Some consumers have become more comfortable with online shopping on their mobile devices because they occasionally use these devices for in-store purchases. According to Accenture, only 58% of U.S. internet users have never made an in-store mobile payment, down significantly from 83% in 2012.

 

  • Mobile advertising continues to be a minor factor during the holiday season – Despite the strong number of mobile sessions during the holiday season, very few retailers opted to increase their paid search spend on these devices (especially smartphone only ads). Only 9% of all holiday advertising spends between November 27 and December 1 were used on smartphone paid ads.

 

  • E-mail marketing continues to be key for driving mobile holiday sales – With more consumers relying on their mobile devices as their primarily method for e-mail communication, it has become key for retailers to get the right messages into their inbox. On Black Friday, e-mail marketing impacted approximately 27% of all online retail sales, with many sales happening on mobile devices or through a cross-device purchasing path.

 
 
In conclusion, the emergence of mobile commerce was one of the most impactful trends during the 2014 holiday season. As we look into 2015, mobile devices will likely continue to increase not only in sessions on online retail sites but also in conversion rates as a larger percentage of consumers continue to become more comfortable completing transactions with their mobile devices.

 

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The Consumer Packaged Goods Industry and eCommerce

Posted on July 10, 2013 at 9:38 am

It wasn’t very long ago when ordering beauty products or household goods online was considered strange. Now, according to a recent survey by the Grocery Manufacturers Association, 40% of member companies within the association are expected to sell direct-to-consumer online in the future, up from 24% last year. As eCommerce has evolved, so have the expectations of consumers to not only find but also order products online. As a result of this, more consumer packaged goods (CPG) companies are launching eCommerce initiatives, some for the very first time, to meet the expanding needs of their consumers. Here are a few ways CPG companies are evolving to meet these needs…

  • Digital ad spending in the CPG industry is trending upward – A reason for the shift in more CPG manufacturers selling direct-to-consumer through eCommerce sites is the increased digital ad budgets of major CPG brands. More consumers are clicking on digital ads, resulting in the need for a digital location for these ads to click through to. In fact, according to eMarketer, U.S. CPG companies are expected to spend $5.3 billion on digital ads by 2017, experiencing a double-digit growth percentage over the next 5 years.

 

  • Consumers have become more receptive to e-mails from CPG manufacturers – Even over the past 12 months, consumers have become more open to e-mail marketing around CPG brands and their products. According to Experian, the open rate for CPG-related e-mails has increased by 21% from 2012 and the amount of eCommerce revenue directly tied to CPG brand e-mails has increased by 15%. Additionally, both the bounce rate (down 31%) and unsubscribe rate (down 18%) have declined significantly for CPG brands over the past year.

 

  • CPG manufacturers are using mobile to reach younger consumers – With the evolution of mobile technology, more CPG brands are looking to utilize mobile to reach a younger audience. The average consumer who engages with CPG content on mobile devices is led by females (53%) and approximately half of consumers engaging with mobile CPG content are between the ages of 25 and 44. While traditional marketing methods continue to work well for older consumers, this “middle-age” demographic is becoming accustomed to acquiring information when and how they want to on their mobile devices. This demographic is also becoming more likely to engage in mobile commerce instead of using their mobile devices only for product information or showrooming.

 

  • Some CPG manufacturers still value product awareness over digital transactions – Some CPG manufacturers are unique from many traditional online retailers in the sense that most of their product sales come from third-party stores, both online and offline. Product awareness and communication has traditionally been vital to the success of CPG brands, which has resulted in some CPG brands launching “micro-sites” focused on eCommerce as a way to get more information and learn about their consumers. While these sites may not be a pillar of business for CPG manufacturers, it creates an opportunity for CPG companies to cater towards tech-savvy consumers and maximize their marketing efforts by expanding their audience (e-mail, social media, etc.) directly through information obtained via eCommerce transactions.

 

 

In conclusion, the CPG and eCommerce industries have a unique and evolving relationship. While it may be several years until some CPG brands see online sales as a major contributor to their bottom line, the information and experience gained from having an eCommerce site has the potential to become invaluable. As CPG manufacturers look at their analytics and towards the future, it’s becoming more and more apparent that expanding their digital footprint into the world of eCommerce could be vital to the success of some CPG brands moving forward.

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6 eCommerce Trends in Japan

Posted on June 7, 2013 at 10:37 am

Japan has been a country which has continued to innovate when it comes to technology – the world of eCommerce is no different. Unlike other international countries we have covered in the past on this blog, Japan is far from an emerging eCommerce country and has some unique characteristics. Here are 6 eCommerce trends in Japan…

 

1) Rakuten is a major eCommerce leader in Japan – With annual sales over $4 billion, Rakuten is one of the largest internet companies in the world, let alone in Japan. As a company, the Rakuten model has been focused less on pushing goods out the door and more on creating a unique shopping experience by allowing its vendors to customize their product listings and communicate directly with consumers on the site. The company is now expanding outside of Japan, including into the United States.

2) eCommerce sales in Japan continue to rise – According to eMarketer, business-to-consumer eCommerce sales in Japan are expected to grow by approximately $50 million over the next five years to approximately $175 million. Online sales in Japan were under $100 million just three years ago, which could highlight the strong and consistent growth of eCommerce in Japan in the past and moving forward. (more…)

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