A consumer insight – How m-commerce usage has evolved in the run up to Christmas 2010

1. A consumer insight – How m-commerce
usage has evolved in the run up to Christmas
2010
Alex Kozloff, Mobile Manager, IAB

2. A consumer insight - How m-commerce usage
has evolved in the run up to Christmas 2010

3. Agenda
1
What we knew about M Commerce in 2010
2 M Commerce in Christmas 2010
3 Outlook for the future of
MCommerce

4. WHAT WE KNEW ABOUT MCOMMERCE IN
2010

5. UK penetration of M-Commerce
Mobile Media
45,000,000 • Downloaded and used a mobile app
Mobile phone Downloaded a ringtone, music track,
users aged • Used social media
18+ in UK • Accessed the internet / any website
• Purchased a product or a service
26,545,000
mobile media
users (59%)
M-Commerce
• Used mobile for research for
22,950,000 purchasing
use M- • Used mobile for enhancing a
Commerce purchasing experience
(51%) • Paid for something on mobile straight
to bill
• Paid for something on mobile via
card/bank/paypal
Source: IAB Consumer M-Commerce Study October 2010, Comscore August 2010
Base = All mobile users (1039)

6. M-Commerce definition & usage
levels
MOBILE RESEARCH- 43%
Used your mobile to Used your mobile phone Used mobile phone to get Used coupons or
check prices of products / to find shop location / more info about product / vouchers on mobile
services whilst, or before, opening hours / contact service you are thinking phone to get money off
going shopping (36%) details (40%) about buying (35%) products /services (21%)
EXPERIENCE ENHANCEMENT- 35%
Used your mobile phone to keep Used your mobile phone as a ticket
Used your mobile phone for loyalty
updated on something you have for events or travel eg British
schemes, eg Tesco Clubcard
purchased eg stock availability, Airways, Orange Wednesdays
(17%)
flight status (28%) (23%)
PURCHASING DIRECT TO BILL- 37%
Paid for a product / service / Paid for a product / service / Paid to download a piece of
Paid for a product / service /
donation by texting a short donation from your phone bill content to your phone bill eg
donation from your phone bill
number that is often 5 or 6 by entering your phone ringtone / application / game
using premium voice (12%)
digits long eg 63336 (21%) number, eg payforit (13%) (32%)
PURCHASING CARD/ BANK DETAILS-27%
Used a website on your mobile to Used an application on your mobile Bought an application though an
buy something (eg M&S, Amazon) phone to buy something (eg app store, eg Itunes, Nokia Ovi,
(19%) Ocado, Ebay etc) (15%) Google Marketplace (21%)
(21%)

7. Consumers find mobile convenient- and ease of
use is key for purchasing
Why did you use your mobile for researching/buying?
average across all four commerce areas (where the same question was asked)
out and about 47%
the easiest way of doing it 42%
it provides me with useful info* 33%
spontaneous / impulsive decision 32% Those who find
means I don't have to carry so much stuff* 29% researching easy
no other online access
experimentation
26%
25%
are 16%
it's the only way of doing it 11%
more likely to make
knows where you are - more relevant info* 11%
a purchase than
those who don’t
felt like the most secure way 7%
Source: IAB Consumer M-Commerce Study October 2010
Base: All respondents who are involved in each area of M Commerce
* Indicates this options was only asked of one area of M-Commerce

8. We thought Xmas 2010 might be big
The IMRG
predicted in
Christmas 2010
almost 20% of the
£6.4 billion due to
be spent online will
be spent via
mobile devices.
Source: IMRG December 2010

9. We thought Xmas 2010 might be big
Tesco Direct
predicted one in ten
UK shoppers will do
their online
Christmas shopping
from a phone rather
than a computer in
2010.
Source: Tesco Survey, November 2010

10. M COMMERCE IN CHRISTMAS 2010

11. Mobile is a large part of „E
Commerce‟
30.2m people Mobile makes
visited commerce
sites on the fixed line up
internet in December
2010 17%of
the total E
Commerce
6.3m people audience
(duplicated)
visited commerce
sites on the mobile
internet in December
2010

12. 6.3M visits to the retail category in
December 2010
1.6M 1.6M 805,000
736,000 544,000 344,000
250,000 246,000 240,000
Source: Comscore GSMA December 2010

13. Ebay‟s gives an example of growth of
M Commerce in the UK over 2010
$4m
JAN ‘10 FEB ‘10 MAR ‘10 APR ‘10 MAY ‘10 JUN ‘10 JUL ‘10 AUG ‘10 SEP ‘10 OCT ‘10 NOV ‘10 DEC ‘10
Source: Ebay

14. $
Source: Ebay
500000
0
3000000
1000000
1500000
2000000
2500000
3500000
01-Dec-10
4000000
02-Dec-10
03-Dec-10
04-Dec-10
05-Dec-10
06-Dec-10
07-Dec-10
08-Dec-10
09-Dec-10
10-Dec-10
11-Dec-10
12-Dec-10
13-Dec-10
ebay
14-Dec-10
15-Dec-10
16-Dec-10
17-Dec-10
18-Dec-10
19-Dec-10
20-Dec-10
21-Dec-10
22-Dec-10
23-Dec-10
24-Dec-10
25-Dec-10
26-Dec-10
27-Dec-10
28-Dec-10
29-Dec-10
30-Dec-10
Ebay‟s “Mobile Sunday”, where $3.3m
(£2.1) was spent on Ebay UK

15. What sold on “Mobile Sunday” on
Ebay?
* Percentage of Gross Merchandise (GMB) based on all categories displayed in the infographic
Source: Ebay

16. ASOS
generated £1m
worth of sales
on it‟s mobile
site in
December
2010
Source: NMA 21/1/2011

17. Consumers turning to mobile for sale
shopping
Usablenet's UK mobile
platform- whose clients
include John Lewis,
ASOS, JD Sports,
M&S, Next and Tesco
experienced
an average increase
in traffic of
300% during the
Christmas weekend
Source: Econsultancy 6/1/2011

18. This is of huge importnance for
advertising
According to
Adfonic mobile
clicks increased
by 400% on the
12th of December
compared to the
beginning of the
month.
Source: Adfonic 2011

19. OUTLOOK FOR THE FUTURE OF
MCOMMERCE

20. Mobile commerce is perceived as an business
opportunity in mobile
Do you see mobile commerce as a threat or an opportunity to
your organisation?
Sector 1
• (e)/Retailer
94% 92% • Brand Owner
79%
Sector 2
•Agency
• Media Owner
• Content Provider
21%
Sector 3
6% 8% • Service Provider
0% 0% 0% • Solution Provider
• Technology Developer
Threat Opportunity Not sure
• Aggregator
• Network Operator
• Other
Source: IAB / AIME/ IMRG mobile commerce research
n = Sector 1 -45, sector 2- 47, sector 3- 49

21. 41% of retailers expect to have a transactional
site/app within the next year
(Sector 1): Which of the following mobile commerce solutions do you offer?
16%
Never expect to operate
19%
SECTOR 1 Expected to start after 2 years
• (e)/Retailer
• Brand Owner
24% Expected to start in 1 - 2 years
Expected to start within 12 months
Operate at the moment
8%
An application / Mobile specific website which is fully transactional
with credit, debit or alternative
Source: IAB / AIME/ IMRG mobile commerce research

22. Smartphone penetration will continue
to grow
40
35
30
25
%
20
15
10
5
0
May-10
Oct-09
Oct-10
Sep-09
Nov-09
Dec-09
Mar-10
Apr-10
Jul-10
Nov-10
Jan-10
Feb-10
Jun-10
Aug-10
Sep-10
Dec-10
Source: Comscore 3 month rolling average

23. Japan gives us an insight into the
future..
In Japan, mobile
commerce exceeded
$10bn in 2009.
9.8 million Japanese
mobile subscribers used
their mobile wallet to
make a purchase in Dec
2010
Source: ABI Research 2011, Comscore Feb 2011

24. Analysts predict
that by 2014
almost half of
global mobile
subscribers will
pay for goods and
services by mobile
Source: Juniper Research April 2010

25. SUMMARY

26. Summary
• We knew Christmas 2010 would be big for M
Commerce, as 51% of the UK were already using M
Commerce in October 2010
• Mobile was big business for retailers in Christmas
2010- Ebay sold £2.1m‟s worth of goods via mobile
properties in the UK along in one day.
• M Commerce will only grow in the future as retailers
continue to invest in mobile, and UK smartphone
penetration rises.