With the growing, yet already maturing Smartphone market, companies are finally starting to invest more in mobile advertising and search. However, not all departments are convinced that they should spend a part of their precious marketing budget in mobile optimised sites or specific mobile applications – especially for International markets. I thought it would be interesting to look at it from a perspective that will delight your financial team and investors. Do mobile optimisation investments actually make money?
More Smartphones and Tablets = More Multitasking and Shopping
Smartphones are most viewed / used medium in many countries, which is hardly surprising as Smartphones and other mobile devices are the only means of accessing the Internet in many emerging countries. This is for example the case for 40% of Indonesians and for 34% of respondents in both India and South Africa.
According to KPCP, 84% of the international mobile owners use devices while watching TV. Average global daily screen media time is 417 minutes of which 147 are on smartphones (35%), 113 on TV (27%) , 108 (26%) on PC, 50 on tablets (12%). But what do people actually do when multitasking?
Interestingly in the US, 24% of the mobile users spent their time shopping and 7% purchasing the product that was advertised, while 44% of the tablet users used their time shopping and 14% purchasing product that was being advertised. Tablet usage is highest from 8pm to midnight.
The above statistics show how important it is to align the marketing and campaign message across all the channels, from TV ads and print, to search, website, CRM, Social Media, POS, and Apps, to ensure a smooth customer journey.
Increasing global mobile purchases
We want to make money, so let’s concentrate on mobile shopping. According to the InMobi 2014 Mobile Media Consumption report, 60% of global mobile consumers use mobile devices as their primary or exclusive way of going online, and 83% plan to purchase on a mobile device in the next 12 months. 68% of respondents have already spent money on an activity via mobile, and their purchases are extending past digital goods, now including also physical and financial goods
This survey researched 14,000 mobile device users in across 14 countries, including UK, France, Italy, China, Germany, India, Indonesia, Kenya, South Korea, Malaysia, New Zealand, Nigeria, South Africa, and the U.S.
48% of surveyed mobile users consider mobile to be the key channel that affects purchasing decisions, and 52% of them have already made a purchase in response to mobile advertising.
Of those who reacted to mobile advertising:
- 78% have downloaded mobile apps
- 68% have visited the web site of an advertiser
- 56% have visited a store for more information
- 44% have located an advertiser on a map
- 43% have called an advertiser by clicking on the phone number in the ad.
Mobile devices also top the list of media with the greatest impact on purchasing decisions at 48% of survey respondents, and importance of mobile is even higher in developing markets, such as India, at 60%.
Mobile optimisation – or lack of it – can make or break your business
In mature, developed markets consumers are starting to use more sophisticated tablets and smartphones to shop both in-store and online, while in developing nations mobile can really be the only way to access the Internet and shop online. If you sell products online, focusing on mobile sites and apps in developed markets such as Europe and US is important, but when you are targeting developing markets it is essential to optimise for mobile to ensure long term success of your business.
It is important to keep in mind the difference between the two types of markets: consumers in more mature Smartphone and tablet markets are expecting well designed, smooth and faster shopping experience as mobile and tablet shopping is seen as enhancement to e-commerce experience. Meanwhile, consumers in developing markets expect fast, easy experience on your site/app, not being that fussy about fancy designs.
The fact is, if these multitasking mobile users land on your site and have a bad experience, or search for your app and do not find it, they will most likely go straight to your competitor.
Mobile optimisation is not anymore something nice to have. It is something your business needs.