Mobile Commerce Trends by Country in 2013

 

by Ayaz Nanji, December 19, 2013                                                                          

 

 

 

Worldwide, most mobile media users (65%) used their devices to purchase goods or services in 2013, according to a recent report by MEF.

The study, based on data from a survey of 10,000 consumers in 13 countries, found that Kenyans are most likely to have made a purchase with their mobile devices in 2013 (97% did so), followed by South Africans (94%).

Brazilians (71%), Mexicans (77%), and Indians (79%), were the least likely to have made a purchase using their mobile devices in 2013, though the majority still did so in each country.

Below, additional key findings from the survey of consumers in Brazil, China, India, Indonesia, Kenya, Mexico, Nigeria, Qatar, Saudi Arabia, South Africa, the UAE, the UK, and the US.

 

Purchase Trends

  • The total volume of purchases on mobile devices actually fell in 2013, but the value of individual transactions went up.
  • High-spend transactions (more than $151 US or equivalent) jumped to 39% of all purchases, up from 31% in 2012.
  • In contrast, low-spend items (under $15.99 US or equivalent) fell to 37% of all purchases, down from 43% in 2012.
  • "High spenders" are most common in Nigeria, Mexico, and Kenya.

Barriers to Purchase

Some 40% of consumers surveyed cited trust as the biggest barrier to making more purchases via mobile devices in 2013, up from 35% in 2012 and 27% in 2011.

About the research: The report was based on data from a survey of 10,000 consumers in 13 countries: Brazil, China, India, Indonesia, Kenya, Mexico, Nigeria, Qatar, Saudi Arabia, South Africa, the UAE, the UK, and the US.

 


 

 

Instagram's Ad-Supported Model: How Can Instagram Succeed?
 

 by Vahe Habeshian, November 27, 2013

 

 

 

Instagram inaugurated its ad-supported model with an ad for a Michael Kors watch that showed up in the feeds of Instagram's users on Nov. 1.

The launch of advertising on Instagram was met with mixed reactions, probably in part because the ad didn't feel contextually relevant to the audience viewing it.

What's not in doubt is that by some measures the effort was an overwhelming success: "18 hours after having been shared, the promoted post had received 217,700 Likes, a 370% increase compared to the 46k the designer brand is used to seeing on average," according to Nitrogram, an Instagram analytics and engagement platform.

In one sense, though, advertising on the mostly mobile social platform is nothing particularly new: As Om Malik points out on Gigaom, "Instagram power accounts—well-known Instagrammers with tens of thousands of followers—are pushing their own form advertising [by] putting hashtags of commercial products" with the images they post.   

 

Here, three online advertising and marketing executives discuss both the first official Instagram Ad as well as Instagram's strategy and what it needs to do to become a successful platform for marketers and advertisers:

  1. Ferdinando Verderi, creative director at creative agency Johannes Leonardo, and head of JLF, the agency's division dedicated to fashion, luxury, and art.
  2. Tony Winders, SVP of marketing for in-screen ad network GumGum.
  3. Fritz Desir, SVP, head of experience planning, at customer experience agency RAPP.

They answer these three questions:

  1. What does Instagram need to do to keep from alienating its loyal fan base as it rolls out advertising?
  2. What can marketers learn from Michael Kors's bold inaugural journey into Instagram advertising?
  3. Is there any value for brands advertising on Instagram if their ads are not targeted?

What does Instagram need to do to keep from alienating its loyal fan base as it rolls out advertising?

Ferdinando Verderi: The Michael Kors ad was the first official advertisement on Instagram, but Instagram itself is a tool whose relevance has always been so tightly related to the idea of self-promotion—of both brands and individuals. As every new platform, Instagram's role is constantly changing and it is hard to predict where its millions of users will take it. Also, as every new tool, its impact is hard to quantify and that typically creates panic in the marketing community, for which budgets need proof of results. That said, early times in any new medium are times in which creativity can rule undisturbed, setting the standards for new ways of thinking.

The great impact new mediums have on advertising is the fact that they have shifted the relationship of control between advertiser and audience. Today, the consumer is ultimately in control. Advertising is no longer imposed on the consumer—the role of ads is more and more one of an invitation, which consumers can accept or decline. It is necessary, therefore, to think of advertisements as a vehicle to add to consumers' lives. As soon as advertising feels like a disturbance, it is dead. When a brand becomes the provider of an unwanted experience, it is a really damaging scenario. The most successful brands form communities of consumers who adore them.

Tony Winders: No platform is better suited to capitalize on native advertising than Instagram. Because ads will be clearly marked as "sponsored" and users have the option to hide them from their feed, they [Instagram] should be largely absolved from any major outcry from users. But unless they address the issue of relevance and context, they may be in for a rude awakening from their loyal fans.

Fritz Desir: Two words: embrace co-creation. A pretty basic step would be to use the co-creation spirit of social to your advantage. It always baffles me why this is so often missed. There should be much more in the ways of notification to users to provide a voice in the experience. As these spaces are, for all intents and purposes, personal, they need to be viewed through a personal lens—and it's critical they be treated that way. Make it fun for people to have a say, and use data to help ensure if you have to make a bet that it's at least a bit more calculated. With Facebook as parent company, there's much that can be gleaned from the various experiences Facebook has had in this area.

That said, with over 230,000 likes [for the Kors ad] and only some roughly 10-15% or so of that number expressing negative comments, I'd be careful not to overestimate the impact. On a platform reaching millions, there are bound to be some reactions that are not positive.

The key is to provide mechanisms at two levels—micro (thumbs up/down, like yes/no) and macro (audience notification, mini-polls, etc.)—allowing users to voice disapproval (or approval) and tailor the experience to their preference. All of this is data that can be extremely useful in discerning preference.

What can marketers learn from Michael Kors' bold inaugural journey into Instagram advertising?

Ferdinando Verderi: Marketing can always learn from real stories—both...what to do and what not to do. The courage of being the "first" has once again been rewarded in terms of the amount of conversation the Michael Kors ad on Instagram has generated. On the other hand, it is worth asking ourselves how is it possible that in a completely new medium the Michael Kors ad on Instagram has been conceived in the exact same way it would have been conceived on a traditional medium. It's a case of reminding ourselves that new media and emerging platforms are only as good as they inspire new expressions.

Tony Winders: The number of likes and new followers for Michael Kors would suggest Instagram advertising works. However, the ad was clearly untargeted and failed to achieve the contextual relevance that is possible with image-based advertising.

Fritz Desir: Hopefully, one thing we don't learn as a takeaway from the Kors/Instagram experiment is to be gun-shy in what marketing is turning into. In social, the only way to learn is through engagement. That said, engagement should be done with research on what resonates from a values perspective for the brand overall and then map that to the platform in question. Being playful and inviting the audience to participate in some way pays dividends. While the Kors foray may have ruffled a few feathers, with over a quarter of a million likes it can hardly be called a failure. What was off here, if anything, had to do more with "context" (the how) than "content" (the what).

Is there any value for brands advertising on Instagram if their ads are not targeted?

Ferdinando Verderi: Instagram is powerful as its content reflects users' interest. It is an intrinsically targeted medium. The best use of Instagram advertisements will be able to leverage this incredible power, not fight it. Understanding the mapping of consumers' interests and passions is a challenging but rewarding effort: It takes a second to click "follow" if something compels us enough to do so. But it doesn't take any longer to click "unfollow" if something disappoints us.

Tony Winders: For broad-based consumer package goods advertisers whose goal is pure tonnage, untargeted ads on Instagram may make perfect sense. But for marketers who want to tell their story and engage a specific audience through images, not to contextualize those placements seems like a missed opportunity to create a strong affinity with the brand.

Just as click-through rates on banner ads are only a proxy for brand performance, the inability to click through from Instagram to a marketer's site does not mean those advertisers won't be able to achieve their desired impact on brand metrics, so long as the ads are contextually relevant to the audience.

Fritz Desir: In 2014, nontargeted advertising (AKA interruption advertising) has zero place in a marketing channel as data-rich as social media. As marketers, we need to vary what we typically think of as "targeting." While sophistication may not be readily available on all social media services, a social platform (to truly be seen as such) has behavior norms, modes of activity and use, as well as influencers. All of these are tools that can be used to communicate without (unexpectedly) disrupting the flow of an experience people have value for.

One of these tools or methods include what I refer to as "curation marketing," a trend which involves using tastemakers to curate experiences for your brand and post to a community on your behalf (I blame Oprah's "My Favorite Things" for this, but that's another story). The currency of social is attention-attracting and harnessing within a given platform. Go with the flow and derive value where it already is. Earned is the new owned.

 


 

 

How Shoppers Use Mobile Phones in Stores

 

by Ayaz Nanji, November 13, 2013

 

  

 

Just under one-third (30%) of US shoppers and 40% of UK shoppers use their smartphones when shopping in brick-and-mortar stores, according to recent study by Usablenet.

These customers use their phones in-store primarily for messaging/emailing (84% in the United States, 90% in the United Kingdom), engaging on social networks (64% US, 45% UK), comparing product prices (71% US, 66% UK), and checking customer reviews (51% US, 57% UK).

Below, additional findings from the report, which was based on data from a survey of 1,500 shoppers in the US and UK, as well as in-person interviews with employees and customers in stores.

Mobile Shopping

  • 48% of US and 46% of UK shoppers surveyed would be receptive to receiving messages and promotions to their phone based on their browsing experience in the store, assuming they can opt-in.
  • 79% of US shoppers and 64% of UK shoppers use their smartphones for browsing and shopping on websites and apps.
  • In the US, 41% of shoppers browse and purchase using their smartphone at least once a month, and 34% do so almost daily.
  • In the UK, 29% browse and purchase at least once a month, and 28% do so almost daily    

 

Tablets

  • 77% of US and 81% of UK consumers research prices and reviews on their smartphones but prefer to make purchases on larger devices, such as tablets or computers.
  • 78% of US shoppers and 67% of UK shoppers who own tablets do not bring them into brick-and-mortar stores.

In-Store Kiosks

  • 77% of UK customers have used in-store mobile kiosks for browsing and ordering, whereas only 59% of US customers have experience with the technology.
  • 58% of US and 69% of UK customers who have used mobile kiosks found them easy to use.

About the research: The report was based on data from a survey of 1,500 shoppers in the US and UK, as well as in-person interviews with employees and customers in stores.

 

 


 

 

Holiday Season 2013: How and When Consumers Plan to Shop [Infographic]

by Ayaz Nanji , November 7, 2013

 

  

 

One in seven shoppers (14.3%) have already started buying presents for the holidays, and another 11.8% plan to start before Thanksgiving, according to a recent report by Burst Media.

However, not everyone is an early bird. Over a quarter (29%) of those surveyed don't plan to start shopping until after turkey day, and another 11.7%—including 17.3% of all men—admit they will probably wait until the last minute.

Below, additional key findings from the report, which was based on a data from a survey of 993 US online adults age 18 or older.

Spending Plans

  • 18.7% of shoppers surveyed say they will either spend much more or somewhat more on holiday gifts this year compared with last year.
  • 46.9% plan to spend about the same, and 22.6% plan to spend less this year.

Digital: Relaxing and Convenient

  • 91.7% of holiday shoppers plan to go online to research gifts and/or make purchases.
  • 25.1% say their favorite aspect of shopping online (or with apps) is that it's relaxed; they avoid the stress of store crowds, finding parking, and more.
  • Customers also like the convenience and efficiency of online shopping.
        

 

Make Way for Mobile

  • 45.7% of respondents plan to use smartphones (up 51% year over year) and 41.3% plan to use tablets (up 190%) to go online and research/shop for holiday products and gifts.
  • Moms are more likely to use a desktop (45.1%) versus a laptop (29.1%) for holiday shopping; women who do not have children are more likely (53.4%) to use a laptop than moms.
  • Dads are heavy tech users for holiday shopping: 60.2% use laptops, 53.9% use desktops, 56.6% use smartphones, and 54.8% use tablets.

Mobile Device Use in Stores

  • 40.3% of respondents who use either a smartphone or tablet to shop use their devices inside physical retail locations.
  • 55.9% use their devices inside retailers to research and compare prices.
  • 43.7% use their devices inside stores to research and compare product reviews.

For more findings from the report, check out the following infographic:

About the research: The report was based on data from a survey conducted in October 2013 of 993 US online adults age 18 or older.

 

 


 

Three Ways to Juice Your Marketing Results Using Color

                                  

by Tom Shapiro, September 17, 2013
 

 

Imagine heading to a local café and ordering hot chocolate. They serve it to you in a white cup. Chances are, you won't like your drink. That's not an indication of the quality of the café or the hot chocolate, but rather the color of the cup.

This conclusion is based on a study by the Polytechnic University of Valencia and the University of Oxford. The universities served hot chocolate in white, cream, red, and orange cups. The drinks were identical, but volunteers claimed that the flavor was better when the drink was served in an orange or cream-colored cup.

Surprised? You might not think much about it, but we experience the world through colors. Every day, in all we do, we respond to the colors around us.

Imagine landing on a website filled with clashing blue, orange, and pink. It would be difficult to focus on the page, and you'd likely leave right away. Alternatively, visit a beautifully designed website like Apple.com, with white, silver, and gray, highlighted by beautiful, crisp photos, and you'll enjoy spending significant time there.

When prospects arrive at your website, see your display ad, or click through to your landing page, they make decisions within seconds. Color combinations influence their reactions and behavior significantly. Therefore, it's critical to carefully select the colors in your marketing materials.

 

 

Here are three ways to juice your marketing results using color.

1. Branding

Your branding dictates prospects' expectations of your company, helping them decide whether to do business with you. According to the University of Loyola, Maryland, color increases brand recognition by a whopping 80%. Therefore, pick the right color for your business and maximize your revenue potential.

In the West, for example, and particularly in the US...

  • Blue is typically associated with strength, trustworthiness, and loyalty. That's IBM, Lowe's, AMEX, and Hewlett-Packard use blue logos and color schemes.
  • Orange is associated with fun, excitement, action, warmth, and passion. Nickelodeon, Amazon, Fanta Soda, and Firefox focus on orange.
  • Red stands for energy and power. It's youthful and bold. Check out the red logos and color schemes of Coca-Cola, Virgin, Target, and Netflix.
  • Green is the color of wealth, and many financial services firms, including Fidelity, H&R Block, and TDAmeritrade, embrace it. It's also the color of nature—think Animal Planet, Greenpeace, and Whole Foods—and can represent natural strength: Think Starbucks, Tropicana, and Monster Energy.
  • Yellow conveys happiness, optimism, and friendliness—while grabbing attention. Among the logos that use yellow are those of McDonald's, Hertz, Nikon, Best Buy, and IKEA.
  • Pink is (stereo)typically seen as romantic and feminine, representing love and warmth. Pink logos include PINK by Victoria's Secret, Baskin Robbins, and Barbie.

Consider—and, if necessary, rethink—your identity, brand, and values, and then select colors to convey those attributes. With a color palette that evokes your brand's true DNA, your marketing will achieve greater success.

2. Websites and Landing Pages

Your website and landing pages are perfect places to communicate your branding—and influence prospects' behaviors—via color. Websites and landing pages are highly visual, with sufficient "real estate" to incorporate effective color combinations and high-impact visuals.

Use color to help visitors immediately connect with your site and company. According to CCICOLOR, people make subconscious judgments about a person, environment, or product within 90 seconds, and up to 90% of that assessment is based on color alone!

Color is instrumental in driving site and landing page visitors to specific actions. A remarkable 85% of shoppers cite color as a primary reason behind their product purchase decisions, according to Color Marketing Group.

Test the colors on your page repeatedly. That doesn't mean you should change your brand's look and feel. Instead, test different color elements within the framework of your brand identity.

For example, test different call-to-action button colors, but be careful with your conclusions. A software company tested green vs. red call-to-action buttons and found that a red button outperformed the green button by 21%.

However, the predominant color on the page was green. Therefore, the right conclusion was most likely that a contrasting color would beat a non-contrasting color, and not necessarily that red converts better than green. It's possible that another contrasting color may have outperformed the red buttons, so test thoroughly.

3. Advertising

Color plays an important role in advertising. Depending on the campaign you're planning, consider using colors beyond your company's core color palette.

If you're running a campaign focused on a social mission, use colors associated with that cause (such as pink for breast cancer charities) to increase audience recognition. Running an ad tied to a national holiday? Consider the colors associated with the holiday (such as the usual orange and black for Halloween). Admittedly, it's a balancing act as you contemplate the emotions that each color typically evokes.

Advertising is a great opportunity to test colors in photography, illustrations, fonts, and calls to action. Your ad's color scheme should be well-coordinated with the associated landing page, though. Otherwise, you risk a disconnected user experience and abandonment of your page.

Remember that online display advertising is different from your website or landing page. Display ads will be competing with many other elements on the page that are out of your control. If you're advertising directly with a publisher, discuss color combinations that will work effectively on the publisher's page, and create mockups to ensure your ad stands out.

If you're conducting online display advertising using a demand-side platform (DSP) , remember that the vast majority of sites use a white background with black text. Therefore, avoid using a lot of white space in your ad, or risk getting lost on the page. If you must use a white background, encase it in an outline, or otherwise your ads may blend in with the rest of the page or, worse, be mistakenly seen as part of the adjacent ad.

Color Matters

Color is powerful. It evokes emotional responses, helping customers and prospects make associations with particular brands. In fact, color helps people remember brands longer and decide what to buy.

Rethink your company's use of color in your marketing, and experience a colorful display of increased conversions.