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Contents
Introduction 4 1 Mobile advertising driving shopping 6
2 Payments 22 3 Mobile in-store 36 4 5 Building for mobile shopping Future of mobile shopping 44 56
Introduction
Consumers have never been more in control of their shopping experiences, and are increasingly demanding more out of their favourite retail outlets. The question is, are retailers doing enough to stay ahead of consumers expectations?
The volume of mCommerce has steadily increased over the past few years, which is hardly surprising when you consider that 1/3 of all UK page views now come from a connected device1. The retail industry is making some strides in the mobile space. In the full year 2012 IAB/PWC Digital Adspend Study, it was the third biggest spender on mobile display advertising. Alongside this, mobile device sales accounted for 12% of the 62.4bn spent with online retailers in 20122. In July 2013, the IAB conducted the Mobile Retail Audit which looked at the mobile presence of the top 50 UK retailers. The study found that 74% of retailers had a mobile optimised site, however only 8% had a tailored tablet experience. When you consider this figure alongside a statistic from a piece of research the IAB conducted in 2012 which found that people are, on average, spending 4.4 hours a week shopping on their tablet devices, there is a disconnect between the two3.
74%
8%
2%
Since the introduction of the smartphone, shopping has become a completely different experience, not only from a purchasing perspective, but also from a searching point of view. Mobile search offers such a unique way of communicating with your audience, especially in retail where location plays such an important role for the consumer. The Mobile Retail Audit found that 48% of retailers were optimising their campaigns for mobile, however only 18% were taking advantage of the extra ad extensions, such as click to call and get directions, that mobile now allows you to offer your customers. Some companies have truly embraced the mobile movement, and are now seeing the rewards of their early adopter approach. One of those companies is eBay, which has set the tone for retailers around the world. In fact, eBay now sees one third of every transaction involving a mobile, and are predicting 13bn worth of sales on mobile in 2013! eBay is a great example of a company that understands the importance of using the mobile channel to enhance customer relationships and offer them unique experiences and opportunities that other channels cant provide. The IAB is committed to making mobile easier for brands and agencies to tap into this growing market. The Big Mobile Shopping Handbook aims to give practical advice when integrating mobile into a brands digital strategy. With this in mind, the chapters have been written by industry experts that are at the forefront of mobile innovation.
We hope this gives you everything you need to know about mobile shopping, but of course new information is released all the time. Please be sure to keep an eye on our website www.iabuk.net for the latest research, news and market information.
1 Comscore 2 Survey by IMRG CapGemini 3 IAB Mobile and the Online Journey 2012
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Mobile advertising driving shopping
1.1 Mobile display driving shopping 1.2 Proximity marketing driving shopping 1.3 Tracking to maximise your media spends and maximise ROI for mcommerce 1.4 Mobile affiliates driving purchase
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Utilise the aspects of mobile that make it unique
1
Understand the role mobile plays in the shopping process
1 ComScore MobiLens
39% 54%
Tickets
Meals (Delivery or Pickup) Consumer Electronics/ Household Appliances Daily Deals or Discount Coupons Personal Care/ Hygiene Products Gift Certificates
Groceries
Sports/Fitness Equipment
Flowers
Hotel Accommodations
Airplane Tickets
Car Rental
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Extended proximity
One key consideration is the effectiveness of proximity based mobile marketing when the geo-fenced area is larger than 1 mile. Business Insider research concludes that mobile display CTRs improve by up to 40% the closer a consumer is to a business; (less than 1 mile away versus 5 to 10 miles). With the exception of perhaps car dealerships and out of town retail parks, this is too great a proximity to effectively drive footfall. Inevitably a large geo-fence will result in huge numbers of consumers seeing the advert when it simply isnt relevant to them. An advert encouraging someone to test drive a luxury car is likely to be a wasted impression if its served to a 19 year old student who is 4 miles from their closest dealership. Rather than just blanket coverage of an area, this luxury car makers marketing team could choose to only target a luxury audience within this extended proximity.
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Innnity+ Proximity
Deliver relevant, timely messages when a customer is near a point of sale
5* Hotel
1.3 Tracking to maximise your media spends and maximise ROI for mCommerce
Over a quarter of smartphone owners use their device to shop online every week according to recent data1. This number will grow rapidly over the next few years as UK mobile shoppers increase from an estimated 27m in 2013 to 36m in 20152. For retailers this represents a major opportunity.
Mobile advertising plays a significant role the market grew by 148% from 2011 to 20123 as advertisers followed eyeballs and behaviours from traditional digital environments to mobile. Consumer goods and retail accounted for a quarter of all mobile adspend. Optimising the mobile media spend mix during the campaign is the largest available efficiency gain advertisers who do this using accurate and real-time ROI data benefit both from preventing wasted adspend on inefficient buys and from shifting investment to higher ROI driving media. Simply changing the focus from legacy measurements (e.g. CPC) to conversion/return based metrics can revolutionise the efficiency of a mobile media plan yet this is still to be actioned by the majority of mobile advertisers. It is always beneficial to 3rd party serve and track mobile campaigns. Only by doing so does the advertiser have clear control, ownership and visibility of all campaign data. 16 It is always best to use a tool specifically built for mobile online adservers are not able to deal with the complexity of mobile ad serving (stemming from the large variances of devices/screen sizes/ video & audio standards/Flash & JavaScript support/app & browser standards etc.). Reporting discrepancy is still a major factor with often larger discrepancies than online reported. However using specific mobile ad servers eliminates this issue. The media savings from resulting accurate media budget optimisation greatly outweighs any costs of tracking. A dedicated mobile ad server such as Sam4Mobile will track seamlessly cross both app and mobile web ecosystems.
1 Econsultancy Mobile Commerce Compendium July 2013 2 Textlocal June 2013 3 IAB PWC Digital Adspend Full Year 2012
Sam4Mobile is a mobile campaign management platform for media agencies and advertisers that gives unrivalled transparent, reliable mobile campaign data. Our platform provides an easy interface to serve and track your own mobile ad campaigns as simply as possible. We measure any metric you need from impression to ROI and can reveal which mobile media placements are delivering you maximum returns. Our technology allows media agencies and advertisers to serve and measure mobile campaigns across any format and device, with our proprietary SDK and fingerprinting technology enabling post-install KPI app analytics such as repeat usage, sales, leads, subscriptions etc Our universal SDK means advertisers only need to install one SDK we connect to any publisher or network so no more SDK changes needed. Our ad hosting and serving capability gives agencies and advertisers full control of their mobile media campaign. We therefore provide our users a combination of adserving, tracking, optimisation and in-app CRM functionality in one built for mobile platform.
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In store
Mobile is a great channel for closing the loop between digital and the high street. Specific campaigns can be optimised against voucher download/registration/ redemption. By issuing unique IDs with vouchers they can be linked back to the media plan in order to optimise buys. Vouchers can be via email, SMS or 3rd party voucher apps. Redemption can be measured through entering unique codes into chip & pin at the point of sale or by scanning barcodes, or through social media triggers such as check ins or tweets. The growth of indoor navigation through Wi-Fi and mobile connections will offer retailers an array of opportunities to test, measure and link mobile advertising directly to retail store transactions.
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Which KPIs should you be thinking about for mobile commerce campaigns?
Mobile campaigns have tended to focus on traffic driving KPIs such a cost per click. Data from Sam4Mobile reveals no correlation between clicks and sales across app or mobile web conversions. Mobile ad serving solutions such as Sam4Mobile will enable primary KPIs to be ROI based sales value or volume, average order value and lifetime value for example. Judging media expenditure on such metrics will result in a far more efficient deployment of budgets. As a secondary KPI metric advertisers should focus on measuring performance across their creative ranges. Regular A/B creative testing using ROI based metrics will help to evolve campaigns to more successful levels. For retailers driving users into physical stores metrics such as cost per voucher redemption or download, cost per store lookup or cost per item reservation can be used to measure media effectiveness. Budget can be optimised to buys that drive the most efficient uplifts in footfall and sales.
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by Hatice van Leeuwen Senior Mobile and Emerging Channel Specialist, Affiliate Window
Tabvertising
With the ever increasing hunger of consumers to consume content on their tablet devices, it is imperative to integrate tablet advertising within your mobile strategy. We see the conversion rate on tablet is similar compared with desktop and therefore its an ideal channel to incorporate within mCommerce. If you combine a tablet campaign with the great targeting variables that mobile can offer, you can optimise your campaign to get the maximum ROI. Think of targeting variables like WIFI only and activity timed after 6pm when people are more likely to be at home and therefore in a comfortable situation to convert. With a specific tablet campaign you can also combine it with TV commercials to enhance the second screen effect and make your campaign as effective as possible.
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2
Payments
2.1 Mobile wallet 2.2 NFC 2.3 Mobile payments
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EE is the de facto mobile wallet leader in the UK with the only mobile contactless payments offering on the market. Initially, under the Orange brand, our evolution started with the Orange Quick Tap service, and was soon followed by EE Cash on Tap, which allows consumers to make contactless purchases of up to 20 anywhere contactless cards are accepted simply by tapping their phone against the payment terminal. Others, however, and most notably O2, are gearing up activity in this space rapidly. At the same time, we see most of the major mobile device manufacturers Sony, Samsung, Blackberry gaining traction with new NFC capable devices like the Samsung Galaxy S4. Add to that the following facts (courtesy of Ofcom): At 58%, the UKs smartphone penetration is one of the highest in the world 1 in 5 smartphones will be NFC-enabled by 2015 The UKs consumption of mobile data/internet was already the highest in the world by December 2011 and its hard not to see conditions in the UK are ripe to allow the first multi-functional mobile wallet to become a reality.
In a difficult economic climate, the rise of mobile as a significant business channel in and of itself has made companies begin to detail allencompassing mobile strategies. Here, they must remember that the mobile wallet represents far more than just finance and retail just as financial services are more than simply payments: loyalty, ticketing, couponing, sharing, insight, and money management are all important parts of the mix. Looking further afield, we can see examples of such mobile wallets in action. ISIS, the joint venture between AT&T, T-Mobile and Verizon, has partnerships with MasterCard, Visa, American Express and Discover; it holds multiple payment and loyalty cards, and even organises what were previously paper-based coupons and promotions so users always have them handy at the point of purchase, where they are brought to the consumers and retailers attention at the right time.
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Such examples make EE confident the mobile phone will become the consumers wallet, the every card, and the general life hub as the lines between digital and physical continue to blur. Well continue to see growth in scale and take-up of mobile payments and wallet services amongst consumers, but also increasing numbers of partnership programmes from the retail, financial, transport, entertainment and other communities. Meanwhile, payments innovation companies can be expected to come in with their own solutions that broaden appeal and utility in all sorts of ways. Already, were seeing exponential growth in adoption of mobile contactless payments amongst our consumer customers, while partnerships continue to increase in number and more and more household-name retailers are moving to contactless payment facilities. The next logical step is clearly for loyalty/reward schemes to be built into the retailers contactless/ mobile strategy, opening the door to rich, aggregated customer behavioural data that can transform customer service and business performance. Meanwhile, the last few months have seen mass transport companies like TfL begin to roll out contactless payment support on buses and the London Underground, indicating mobile travel ticketing is likely not too far off. The mobile wallet is the obvious home for these as new and existing solutions continue to grow in capability.
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In summary, the mobile wallet market may still be fragmented, but all of the pieces are either in place or will be imminently; all that is lacking is some organisation to fit them together before we see mass adoption. Consumers await only the first multipurpose mobile wallet that represents a realistic replacement for the physical one. Those interested in being in it from the ground level up should begin their internal and external discussions now, taking care to consider at a minimum their activity in this space may involve developing or partnering for capabilities in payments, security, loyalty/reward, data capture and analysis and, crucially, support that is open-ended enough to allow for growth as the market develops further.
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2.2 NFC
Near Field Communication (NFC) allows the free flow of data between online devices such as smartphones and offline products.
NFC-enabled devices contain a chip that sends radio waves to a nearby NFC device or an object containing an RFID tag. The tag can be integrated into posters or products and when tapped, can enable a variety of actions such as making a payment, opening an internet link or downloading an app. Only one in three smartphones currently supports NFC, partly due to the lack of support from Apple. Perhaps more significantly, two thirds of smartphone owners dont even know if their phone has NFC so there is still more education to be done around the technology. Nonetheless, we can already start to identify two key opportunities that will add value for both consumers and advertisers: mCommerce and interactive consumer experiences.
Ticketing
Advertising interaction
Cashless payments
NFC
Identification
Loyalty programs
In-store marketing
Social media 28
Physical access
Revolution in mCommerce
With 61% of shopping activities beginning on a smartphone and mobile accounting for 20% of the UK online retail market, mobile is becoming the quintessential shopping companion. Enabling quick and secure mobile payments and in- store voucher redemption, NFC is expected to make a large contribution to the future of the shopping experience. Similar to the contactless payment card mechanism, NFC-enabled mobile wallets remove the need for physical bank cards, allowing users to make cashless payments or redeem vouchers straight from their mobile. However as a relatively nascent territory, mobile wallets are lacking in scale because of the fragmentation of providers and limited number of retailers that are able to support the technology. The latest Berg Insight report identifies that there were NFC mobile wallet services live in 13 countries worldwide by the end of Q1 2013. However, there are only 3 NFC mobile wallet services in the world that have an active market of more than 100,000 users: Google Wallet in the US market, followed by Isis and Turkcell which is mainly operating in Turkey. Australia is also one of the countries leading the way with 25-30% of all transactions under $100 being contactless while China is currently trialling NFC payments on public transport. There is yet to be a clear market leader in the UK with emerging products including MasterPass, EES Cash on Tap, Apple Passbook and Samsung wallet. In July 2013, the Moneto prepaid wallet service launched NFC on iPhone4 and 4s in the UK, expanding the market past Android territory. This may have prompted the latest prediction that NFC penetration will increase to approximately 32% by 2017. Yet, consumer education and consolidation of providers is needed first before it becomes an everyday method of payment.
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In summary
The fragmentation of providers and the limited penetration of NFC-enabled devices mean that in the short-term, the true potential of NFC is still to be realised. Although this has generated great interest among marketers, consumer demand is still relatively low. We must consider this as a longer term effort due to the supporting ecosystem and infrastructure that needs to be established. It will then be down to marketers to create compelling incentives for consumers to engage using this innovative and accountable technology.
Sources: Posterscope/Clear Channel Study UK & USA www.slideshare.net/Posterscope/posterscope-nfc-infographic001v21slimscroll www.slideshare.net/Kuliza_Research/commerce-with-a-tap econsultancy.com/uk/blog/63105-tap-on-the-map-maybe-i-was-wrong-about-nfc www.proxama.com/products-and-services/ www.berginsight.com/News.aspx?m_m=6 Image: www.nfctimes.com/news/orange-uk-launch-nfc-loyalty-app-seeks-build-user-numbers
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On-device payments For small and medium sized businesses which prefer to take card payments to cash, two rivals provide on-device B2B and B2C payments: Square and PayPal Mobile. Square, set up by Twitter co-founder Jack Dorsey, enables anyone to take credit card payments on smartphones. Users simply attach the white Square to the Apple and Android device and insert the card to the Square. The card transaction is verified and validated via secure connection. Apple and Android charge a 2.75% commission for each swiped payment. PayPals contribution to mobile payments is immense, with 2013 global revenues forecast at $25 billion (up from $4 billion in 2011). PayPal Here1 allows businesses to take payments using blue triangular credit card reader which is plugged into the smartphones headphone jack. The card data is encrypted before transmission, and the customer receives email confirmation of the transaction. PayPal Beacon pairs an in-store Bluetooth Low Energy device and a PayPal app to sense when a consumer enters the store. It then uses the pay with your face concept which let sales assistants check and verify the PayPal user picture on his or her payment till before money is transferred securely no wallet, no card, no NFC. Before deciding which mobile payment model to develop, take time evaluating how each one meets your consumers needs. The winners will satisfy these 4 success factors:
Scaleable
1 www.youtube.com/watch?v=x5woIGSOLGk
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Mobile in-store
3.1 Mobile price checking 3.2 Mobile vouchers and in-store promotions
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Consumers engage in showrooming for a variety of reasons, and its not always just about price. Although 74% of participants state that they engage in these behaviours to directly compare prices, there are other factors that influence the propensity to complete the purchase online. 40% of showroomers, simply wanted to see an item before purchasing online, 22% made the purchase online when in-store as the item was out of stock, whilst 15% would rather have had the item sent directly to their home. 4% of showroomers also stated they were simply looking for product reviews online, and these reviews would play a vital role in their purchase. This trend of people using their devices to access information that directly influences their purchasing behaviour is affecting retail globally. As such, we are now beginning to see examples of ways in which retailers are beginning to fight back from across the globe. In Australia, we have seen a small Brisbane grocery store implement a charge to customers who use the store to browse, ask advice and then leave without purchasing. Recently, Victoria Barnsley, the Chief Executive of HarperCollins suggested that the idea of charging customers to browse in a bookstore is not that insane. BestBuy stores in the US have implemented a price match scheme, where they will match any online retailer when customers are in store. The challenge for retail is to evolve their offering, to provide customers with a high level of service that goes above and beyond anything that could be delivered online. The knowledge, passion, and service manner of retail staff is now the critical weapon retailers have at their disposal when securing the future of bricks and mortar shopping. It is also worth posing the question, what would online retailers do without physical bricks and mortar shops to inspire shoppers ? The two have an intertwined relationship, but smartphone technology is currently providing online retailers with the upper hand. One thing is for sure, the future of retail is rife for transformation, and traditional retailers will have to adapt if they are to survive in this increasingly mobile world.
Showrooming
Image: www.gizmodo.co.uk/2013/01/jessops-its-all-amazons-fault/
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Whats on offer?
Mobile promotions come in various shapes and formats: They can be as simple as an alpha-numeric code sent as an SMS text message. SMS can also be used to send a URL link to a website that leads to the coupon. A retailer can also send a coupon as content within an MMS message. Retailers with a branded mobile app can send push notifications to smartphone users who have downloaded the app. The notification appears as an on-screen message which leads to a page in the app displaying the voucher. Each type of coupon can be redeemed just by showing the message to the sales assistant at the checkout.
Why vouchers?
The current difficult economic conditions mean that consumers are keen to save money wherever possible and expect deals on everything from grocery shopping to going out and travel. A recent YouGov study of 2,100 consumers in the UK found that 82 per cent of people have used a discount or voucher of some kind over the last 12 months. This consumer demand extends to mobile vouchers. One advantage of mobile vouchers is that, unlike paper ones, special offers sent to a mobile phone dont need to be cut out and carried around. As a result, mobile offers deliver a high return for advertisers, brands and retailers: redemption rates for mobile vouchers stand at 10%, compared to around 1% for paper vouchers. Retailers can use mobile to quickly and easily reach consumers wherever they are, to trigger an immediate response or action. This can be as simple as encouraging people to visit their nearest store branch with a 10 per cent off everything reminder sent to their mobile phone either the day before a sale, or on the morning of a sale.
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by OpenMarket
Mobile crediting
Another innovative use of mobile for promotional purposes is mobile crediting that is, where a brand adds credit directly onto a consumers mobile bill or pay-as-you-go credit in return for a purchase or redeeming a special offer. Research by mobile engagement expert OpenMarket and research firm MobileSQUARED in July 2011 found that over 60 per cent of respondents aged between 16 and 30 would either buy or be more likely to buy a product that offers mobile crediting instead of a similar product. Mobile crediting is therefore an effective promotional technique for brands to drive product sales and also build loyalty with their customers.
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Mobile provides the opportunity for intelligent engagement with offers and coupons that are directly relevant to consumers preferences and tastes
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Building for mobile shopping
4.1 Apps vs Sites 4.2 Mobile ticketing and mobile loyalty schemes 4.3 Tracking your mobile destinations
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Four factors to consider for mobile when building your website: 1 Speed
Keep page and image weight small
2 Usability
Make buttons big and scrolling simple; avoid pinch and zoom
3 Content
Use analytics for the full picture of what your customers want
4 M-Commerce
Keep forms simple and minimise steps required
38%
of people say speed is the most important factor when using the mobile web1
52%
said that a bad user experience made them less likely to engage with a company2
61%
will leave if they dont see what they are looking for right away on a mobile website and will quickly move to another website3
66%
have abandoned a shopping cart because of issues encountered at check-out4
1 2 3 4
The Peoples Web Report, Netbiscuits, UK (June 2013) What Users Want Most from Mobile Sites Today, Google/Sterling Research/SmithGeiger, US (July 2012) What Users Want Most from Mobile Sites Today, Google/Sterling Research/SmithGeiger, US (July 2012) 2013 Mobile Consumer Insights, JUMIO/Harris Interactive, US (May 2013)
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by Michael J. Becker Market Development North America and Strategic Advisor, Somo
The economics and role of loyalty
Capturing a transaction, however, is not enough for long-term success. Once you have your first sale, you want to make sure that you keep your customer and foster loyalty. Having a well thought-out approach to loyalty is very important. Studies have shown that consumers see loyalty programmes as part of their brand relationship and that they affect how, when and where they make a purchase. Like commerce, relationship and loyalty programmes are being completely transformed by mobile, and consumers are ready. Maritz Loyalty Marketing reported earlier this year that 73% of smartphone users are interested in interacting with loyalty programmes through their mobile device. There are some really interesting ways in which marketers are engaging their consumers through mobile to stimulate brand affinity and loyalty and ultimately to drive sales and in many cases to reduce costs, too. One cool example: In Ireland, Budweiser launched the Ice Cold Index App programme stating the hotter the day the less you pay. Consumers that have downloaded the app get 1 off if it is 16C outside, 2 off if it is 18C, and they get a free beer if it is 20C. How is that for loyalty and taking care of your customers in need? Similarly, Guinness has created the magic behind the gates programme to foster engagement in pubs where users just tap their device on an NFC-enabled fount. Others have found success by focusing on providing a great customer experience. In 2011 Somo, the worlds leading mobile solutions company, helped develop and launch an iPad app for Dominos Pizza in the UK to create the best possible purchase experience. Clearly, the efforts have accomplished a healthy return on investment. By March 2012, Dominos was taking in $1.59 million in sales via its mobile platforms in the UK alone. Your offering doesnt have to be complex to provide value with mobile. To be successful in driving transactions and fostering loyalty through mobile, its imperative that marketers take the time to reflect. They need to evaluate their business and their customers. They should talk to their customers, listen, watch and learn, then focus on fulfilling the customers need in a contextually relevant manner and on the customers terms. This is what many are starting to refer to as the Omnichannel, a commercial world with no borders and boundaries. Mobility has transformed everything and opened up a new world of opportunity.
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We are a mobile tracking company that provides the most comprehensive business intelligence platform for mobile app marketing available today. Currently headquartered in London and Berlin, we are now expanding operations to the US market. Coming from an app development and publishing background, our team created adjust.io to offer superior download tracking solutions and postinstall KPI analytics using an open source SDK. We provide seamless integration into almost all networks, measuring everything that an advertiser, publisher or developer could possibly need in order to fully optimise their marketing campaign. Our streamlined dashboard delivers performance reports in real-time and it does so clearly and simply. Through our dashboard we provide full access to apptrace. This is a free app store analytics tool that gives our users complete access to iOS app and publisher data with Play Store data soon to follow. Along with a sentiment analysis of reviews for every app in the iTunes store it also provides up-todate top lists and a unique global ranking system. Its about empowering businesses of all sizes to turn data into revenue.
At first it was easy: apps were either on or off, and when the user left the app, the session was closed. When platforms started to support multi-tasking, these status changes became more diffuse. Just because the app is put in the background it doesnt mean that the session is over. With the inclusion of the notification centre, push messages and even in-app purchases, users increasingly flip between different states such as resume, background and foreground. Figuring out what counts as a session has become considerably more chaotic. Adeven chose to define a standardised session as a continuous stream of actions and state changes with no more than a 30-minute gap in between. This, of course, requires analytics to gather information on a variety of state changes and events. Ensuring this data up-to-date is a job the developer should not have to spend any time doing. Developers especially prefer an open-source SDK, and for very good reasons. An open-source SDK gives developers some security in the knowledge that they can see exactly what they are implementing into their app and how to work with it. Developing an intelligent SDK that understands these definitions and aggregates sessions in this way is no easy task. Here is where intelligent SDKs from dedicated analytics outfits come in, and why choosing the right SDK is a big concern. While SDKs are indeed necessary, they are far from an evil. We would go so far as to say that the intelligent open-source SDK can be a developers best friend.
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ARPU/Timespan
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20
11
9 5
2.24
0.416
0.53 0.116
88% 79% 76% 65% 58% 62% 72% 62% 55% 67%
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The future of mobile shopping
5.1 AR in mobile shopping 5.2 Mobile as the purchase point for other media 5.3 Tablet shopping
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Elsewhere, a new app from IBM Research allows customers to compare products on the supermarket aisle through image recognition AR. The technology will recognise individual products and rank them by price, and more excitingly by preference data. So, if a customer stipulated that they wanted low salt foods, products with low salt would show up higher in the rankings making it easier for them to analyse the shelf, without having to read every single food label. AR could also create some interesting experiences in the clothing sector. Virtual fitting rooms, for example, could mean you no longer have to guess whether a dress would look good on you. By uploading an image of yourself, entering measurements, or even scanning your body, you could see how an item looks on you without even leaving your bedroom. So, with all these interesting options available, why is AR still an emerging industry, still really only on the radar of us industry and tech-savvy folk? One reason is perhaps that to enjoy an AR experience via mobile, users need to download an app quite a big ask given the amount of AR apps out there. You have to have at least three to activate many of the out of home and magazine ads I see, plus you need to understand how to use it and have time to interact with it. Furthermore, many brands and AR advertising providers rely on a small logo or icon to communicate to users that they can enjoy an augmented reality experience. But I often question whether I would know what that logo represented, did I not work in the industry. To get over this hurdle, clear signposting is vital and education key. Customers need to know what they are going to get if they download an AR app (and it needs to be good). This brings me to the most important point. Once a consumer has reached the stage where they have understood what the AR will provide and have downloaded that app, it is vital that they get a useful, engaging and fun experience. Otherwise, whats the point?
Whilst there is still a place for custom experiences, especially around key holidays and events, becoming too gimmicky with AR could be detrimental to a brands image. Advertisers therefore need to invest in infrastructure that will allow for scalability, such as building multiple campaigns, and that will benefit customers and save money in the long run. So, whats next? I think in the next 12 months we are going to start seeing a move from AR being used to give customers a quick wow moment, to becoming a practical tool that gives customers meaningful experiences that have real outcomes. Using data to fuel those experiences will be key to making them relevant. I also think that the in-store and online shopping experiences will start to merge, so that soon we will have access to the same kind of customisation in store as we do online personal offers, recommendations based on previous purchases and even that virtual changing room.
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Another supermarket chain, Morrisons, activated their out of home formats as part of the Reading NFC test by asking consumers to tap the poster using their NFC-enabled smartphone. In doing so customers were given a 5 off voucher to redeem at Morrisons Reading. Results showed that this mechanic was a means of attracting new customers and that in-store redemption rate from the specific NFC poster were as high as 18%. Crucially, the Morrisons call to action and value exchange was executed well clearly stating what action a user needed to take using their NFC-enabled device and what they could expect from doing so. The value exchange is absolutely key to any sort of mobile mechanic that asks a user to actively take their device out and engage with your brand the reward must be strong enough Away from the high street and into the living room where mobile is transforming TV ads into 30 second shopping breaks. Last year, Unilevers VO5 hair range re-launched with an aim of creating emotional engagement their audience, drive advocacy and reduce reliance on promotions. As such, VO5 Shazam-enabled their 30 second TV ads which allowed them to drive viewers seamlessly from the TV screen to their second screen where they could watch YouTube how to video tutorials which showed how to get the look seen in the TV commercial. VO5 also added a click to basket option, allowing viewers to add VO5 products from the ad break into their preferred retailers basket to purchase. VO5 were the first beauty brand to trial this and saw that 2% of viewers of Shazamed the ad click through to purchase a hugely positive result versus an average desktop click-through rate of between 0.10-0.20%
Crucially though, mobiles interaction with other media channels turns passive consumers into active ones. Choosing to pull your smartphone out of your pocket then unlocking it, opening an app and scanning/ listening/hovering over a poster, newspaper ad or TV screen makes those users who do so incredibly valuable to brands and advertisers. The key is in making sure the call to action, user experience and value exchange are clear and genuinely demonstrate to a user what they can expect from actively engaging with a brand.
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12.1bn
8.0bn
5.0bn
0.9bn
0.4bn
2011
2013
2015
2017
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Source: eMarketer Inc M-commerce takes 15% of UK retail e-commerce sales (June 2013)
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Brands should also think about tablet users as a targetable consumer segment which is more affluent and often younger than average. It may be effective, for example, to promote higher value products on tablets than on other versions of the site. And given that many consumers like to use their phone for initial research, it should be easy to start a shopping journey on the phone and then pick it up and complete it on the tablet. Responsive design approaches which enable a single site to adapt to any device size can be an ideal way to approach optimisation for tablets, though it is important to think not just in terms of layout, but how the whole experience, including content and product promotions, should be tailored to the tablet user.
Final word
Tablets are quickly establishing themselves as a preferred device for online shopping. Brands which recognise that tablets should be treated as a distinct platform will reap the rewards of higher conversion rates, higher average transaction values and ultimately, happier customers.
1. 2. 3. 4.
Ofcom Communications Report 2013 (June 2013) eMarketer UK Tablet Use Sees Robust Growth (May 2013) Google The New Multiscreen World Understanding Cross-Platform Behaviour (August 2012) eMarketer M-commerce takes 15% of UK retail e-commerce sales (June 2013)
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With thanks to: Millennial Media Blis Media Sam4Mobile Affiliate Window EE Arena Media Burner Mobile OmnicomMediaGroup OpenMarket Google Somo Mindshare Adeven Ansible Mobile Orange Digital
Internet Advertising Bureau 14 Macklin Street London WC2B 5NF 0207 050 6969 info@iabuk.net @iabuk iabuk.net