2015 Mobile Consumer Survey

2015 Mobile Consumer Survey
Presented by The On-Demand Economy

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The On-Demand Economy
@ondemandeconomy
www.theondemandeconomy.org
ABOUT THIS REPORT
The On-Demand Economy is a group of executives dedicated to the advancement
of the commerce based solutions that make day to day life simpler and more
efficient. We serve as an unbiased platform where stakeholders can interact with
industry leaders, collaborate with like-minded businesses, address collective
issues, and access research. This group and its participants are helping to shape
one of the defining trends of this decade - evolving consumer experiences and
expectations in a mobile-first world.
Powered by the on-demand fanatics at Button and our friends

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@ondemandeconomy
17 QUESTIONS 1,348 PEOPLE10 DAYS
ABOUT THIS REPORT
Mobile businesses are rapidly changing industries, cities, and the expectations of
consumers. In order to better understand these evolving consumer preferences
and behaviors, we sampled US mobile smartphone owners across different
operating systems, cities, age groups, and genders in May 2015.
The distribution of survey participants was carefully constructed in collaboration
with Survata to capture as close to a census representative sample as possible of
mobile consumers in some of the most technologically forward cities in the US.

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@ondemandeconomy
ABOUT THIS REPORT
Distribution of Survey Respondents
3%
47% 50%
iPhone
Andoid
Other
22%
21%
36%
21% 18-24
25-34
35-44
45+
56%
44%Male
Female
5%6%
7%
11%
20% 26%
25% NY
SF
LA
CHI
BOS
MIA
DC
Operating Systems Age
LocationGender

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@ondemandeconomy
• Mobile app developers are competing aggressively for installs, but the battle for users doesn’t stop
there - only 1/4 of the apps installed on a smartphone are used each week (slide 8)
• Unpaid marketing channels are the most common means of discovery (slide 9)
• Smartphone owners are still hungry for great new apps (slide 10)
• Although not a primary means of discovery, mobile advertising is still an effective tool for promoting
app awareness and installs (slide 11)
• Awareness levels of new on-demand services are still relatively low with the exception of Uber
(slide 12)
• Penetration rates of different mobile commerce services differ by age, gender and location given
the various value propositions and consumers needs (slide 13 & 14)
• We are in the midst of the next evolution in digital commerce: web -> mobile web -> apps (slide 15)
KEY TAKEAWAYS
Survey Highlights

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@ondemandeconomy
• iOS users demonstrate higher purchasing activity than Android users (slide 16)
• Every consumer vertical needs to have a mobile strategy (slide 17)
• Offering a promotion / credit is an attractive value proposition to get a user to make their ﬁrst
purchase through a mobile app (slide 18)
• Appealing to the optimal mobile consumers is challenging as promotions / credits may get a ﬁrst
purchase, but do not necessarily change long term purchasing behavior or customer loyalty (slide
19)
• On-demand services are just beginning to hit their stride, and the market opportunity is massive
(slide 20)
KEY TAKEAWAYS
Survey Highlights

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@ondemandeconomy
• On-demand services will continue to grow at unprecedented rates as awareness improves and
more consumers adopt mobile commerce for their daily needs
• New businesses will address niche markets in “mature” MSAs where demand is concentrated and
mobile purchasing behaviors are well engrained
• Aided by the playbook of Uber and Airbnb, new on-demand sectors should reach scale rapidly
• Consolidation will accelerate as competition grows
• Collaboration between complementary, non-competitive businesses will become commonplace
• Legacy providers will attempt to “partner with” or “acquire” more innovative on-demand companies
• The user interface will be the next battleground as companies solve for the current technical
(great user experiences) and logistical (infrastructure and scale) challenges
KEY TAKEAWAYS
The Future of The On-Demand Economy

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@ondemandeconomy
Consumers use only 1/4 of the number of apps on their phone each week
MOBILE APP ENGAGEMENT
Distribution of Apps
Installed
Distribution of Apps
Used per Week
Smartphone owners have dozens of apps, but use only a select few of the
apps they have installed on a weekly basis
(n=1,348) (n=1,348)
6%
9%
27%
43%
15%
<15
15-29
30-44
45-59
60+
5%
9%
32%
41%
13%
<5
5-9
10-14
15-19
20+
Distribution of Apps Installed and Used per Week

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@ondemandeconomy
Unpaid marketing channels are still the most common means of app discovery
4%5%
13%13%
30%
35%
Unpaid channels account for almost 65% of the responses when consumers were asked about their
primary means of discovering new apps
MOBILE APP DISCOVERY
App Store / Google
Play
Recommendation
from a friend
Facebook
Non-digital
advertising
Mobile ads Twitter
Unpaid Marketing Paid Marketing
Distribution of Responses by the Primary Means of Discovering New Apps

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@ondemandeconomy
The demand for new apps remains very high as over 50% of respondents
felt that they were missing out on great new services
40%
47%
60%
53%
Are missing out on new apps
Are not missing out on new apps
37%
49%
63%
51%
44%
57%
56%
43%
54%48%
46%52%
The eagerness for great new apps is even more pronounced in young men (<35 years old)
Women Men Women Men Women Men Women Men
(n=280)
18-24
(n=477)
25-34
(n=288)
35-44
(n=298)
45+
Distribution of Responses to Whether Consumers Felt Like They Were Missing out on Great New Apps

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@ondemandeconomy
Despite its ﬂaws, the majority of consumers continue to engage with
mobile advertising
MOBILE APP ADVERTISING
% smartphone users who have intentionally clicked
on a mobile ad for an app
(n=1,348)
57%

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@ondemandeconomy
Awareness of these services is still low, with the exception of Uber. Growth
opportunities are abound.
Uber is by far the best known on-demand service followed by GrubHub and OpenTable
Uber AirbnbGrubHub FreshDirectOpenTable
85% 43%45% 43%
Care.com
36%
5%25% 13% 6%16%
27%
13%
Eventbrite Hotel Tonight Instacart Postmates Handy Drizly

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@ondemandeconomy
Women are more likely to be aware of Eventbrite and Care.com
Men are more likely to be aware of Hotel Tonight and Drizly
25-34 year olds are more likely to be aware of Handy and
Postmates
Awareness levels were also inﬂuenced by the demographic proﬁle of the
respondent

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@ondemandeconomy
Uber has extremely high awareness in LA and CHI; it is least
recognized in MIA and DC
Instacart was slightly better known in SF, while FreshDirect is
more well known in most other markets (BOS, CHI, LA, DC, MIA
and especially NYC)
Seamless / Grubhub have a smaller market presence in SF and
MIA, while the majority of respondents in NYC and DC were
aware of the service
Furthermore, the location of each respondent was another determinant of
awareness levels

15
@ondemandeconomy
While almost 50% of users have purchased through an app, adoption of
apps for consumption still lags behind mobile web browser and desktop
MOBILE COMMERCE
% that have purchased through a
computer web browser
smartphone web browser
mobile app that they installed
93% 68% 46%
(n=1,348)(n=1,348) (n=1,348)

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@ondemandeconomy
iPhone users are more likely to have made a purchase on a mobile app
33% YES
67% NO
42% YES
58% NO
51% YES
49% NO
iPhone was the only operating system in which the majority of users had made purchase through a mobile app
(n=673) (n=639) (n=36)
Distribution of Users who Have Purchased through a Mobile App by Operating System
MOBILE COMMERCE

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@ondemandeconomy
Mobile consumers use apps to make purchases across a variety of
different verticals
5%7%
23%
34%
44%
50%50%52%
56%
58%
79%
Retail /
Shopping
Tickets /
Events
Food
Delivery
Car /
Taxi
Hotel Dining Airlines
Health and
Beauty
Grocery
Delivery
Liquor
Delivery
Handyman /
Cleaning
(n=622)
The majority of users who have purchased through an app have used them for
retail and shopping, ticketing, food delivery, and transportation
% of Mobile App Purchasers that Have Purchased within these Speciﬁc Categories
MOBILE COMMERCE

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@ondemandeconomy
People who have not made a purchase on a mobile app would be most
inclined to do so if offered a promotion or discount
18%
34%34%
37%
55%
Promotion /
Discount
Recommended
by a friend
Saves Time
Comparable
Price
Access to Premium
Goods or Services
(n=726)
Distribution of Respondents based on the Potential Reasons They Would Consider Making
Their First Purchase through a Mobile App
Mobile commerce apps should be considerate of how to align their value proposition(s) to the
fairly diverse demands of mobile smartphone owners
MOBILE COMMERCE

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@ondemandeconomy
MOBILE COMMERCE
The reason respondents chose to make a purchase through an app is also
correlated with the frequency of mobile commerce activity
Frequency of Mobile Commerce Activity Given
the Reason for Using a Mobile App to Purchase a Good / Service
Highest
Frequency
Average
Frequency
Low
Frequency
Received a
Promotion / Credit
Wanted to Purchase
Something
Immediately
Access to
Premium Goods &
Services
Enjoy Trying
Cool New Tech
Recommended
by a Friend
Consumers who stated that they adopted apps to purchase goods / services because they “Enjoy
Trying Cool New Tech” are likely to purchase with the highest frequency while those who did so
because they “Received a Promotion / Credit” are not likely to purchase very often

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@ondemandeconomy
MOBILE COMMERCE
Industry
Ground
Transportation Dining Grocery Travel Family Care Pet Care
US TAM ($B) $1,100* $660 $603 $80 $90 $55
Online Penetration
Rate (%)
<5% <10% <2% <20% <1% <1%
Representative On-
Demand Business
Gross Margins
(% of Rev for
Representative On-
Demand Businees)
20-25% 10-15% 25% 10-12% 60-80% 15%
Mobile Transactions
(% of Rev for
Representative On-
Demand Business)
100% 45% 25% 25% 40% 80%
The market potential for on-demand services is enormous
Sources: TechCrunch, Business Week, Bureau of Economic Analysis, National Restaurant Association, Forbes, Bill Gurley, The Detroit Bureau, Skift, PhoCusWright,
American Pet Products Association, GrubHub, IESE, Rocket Financial, RetailWire, Expedia, Care.com, PandoDaily, DogVacay, Peapod, HighTable
*Based on estimates by Bill Gurley and market ﬁgures on the total US Automotive industry

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@ondemandeconomy
ABOUT THIS REPORT
For the full 2015 Mobile Consumer Report contact us at info@theondemandeconomy.org
or check out our website at www.theondemandeconomy.org.
Powered by the on-demand fanatics at Button and our friends

2015 Mobile Consumer Survey

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