Velti Mobile Whitebook 2013.pdf - IAB UK

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Mobile Whitebook 2013 ROPO and ‘showrooming’ become the way consumers like to shop Another effect caused by the proliferation of mobile devices are the phenomena of the ‘ROPO effect’ and ‘showrooming’. ROPO refers to when consumers ‘research online and purchase offline’ while ‘showrooming’ is where consumers look to inspect products in-store before purchasing them at a lower price online. With the number of people owning smartphones still increasing and the most successful bricks and mortar stores gaining more of their income from digital than ever before, retailers who do not adapt to this change in consumer behaviour are likely to find themselves in a precarious position. Research from Econsultancy shows that this trend is significant, with a survey of 1,000 UK and US consumers showing that more than 90% use the internet to research products and services before buying at a local store, while 43% of UK consumers and 50% of US consumers said that they had used their mobile to compare prices and look up product reviews while out shopping. 50% 43% 57% 50% Key steps to accommodate for ROPO and ‘showrooming’ behaviours • Facilitate ROPO behaviour by offering click-andcollect services, prominent telephone numbers on mobile websites, and easy-to-use store finders which can make use of GPS-enabled smartphones. • Include mobile-relevant calls to action in-store – these can include QR codes and shortened for apps and websites, product reviews, videos and more. • Use mobile coupons, SMS codes rewards points and geo-targeted ads to drive mobile users to purchase, whether in-store or online. • Provide a customer experience that cannot be undercut – while pureplays such as Amazon may be able to undercut competitors on price, providing a stress-free and enjoyable customer experience can assist in acquiring and retaining customers who place a premium on a quality shopping experience. USA UK YES NO >90% of consumers use the internet to research products and services before buying at a local store 14 www.velti.co.uk
The actions of GAFA shape the way consumers and businesses adapt to the mobile and multichannel world Google, Apple, Facebook and Amazon (collectively referred to as GAFA) represent the four most powerful companies within the digital world. Despite the fact that all come from different roots, their activities are beginning to converge and overlap in a way that has significant effects for all as digital becomes a more integral part of consumers’ everyday personal and professional lives. Very few companies have the ability to directly compete against GAFA in the areas in which they excel. Rather, companies should be looking to harness the way that their products and services provide them with ways to interact and engage with their customers, while staying abreast of developments that may cause damage to their business. Such changes that have caught companies out include: • Operating system changes in Android and iOS, leading to higher than expected costs for app development and improvement. • The removal of free product listings within Google Shopping, changes to algorithms and the deployment of ‘Enhanced Campaigns’. In short, companies should ensure that they are not dependent on any single GAFA-powered customer acquisition or retention channel. They should look to diversify the ways in which they reach and engage with their customer base so that any rapid changes will not place them in harm’s way. Key facts about GAFA and multichannel • Google has a 95% share of the mobile search market and they pay Apple in the region of $1bn a year to be the default search on iOS devices. • Google collects 57% of mobile ad revenue in the United States while Facebook, its nearest competitor, gets just 9%. • Google are no longer doing ‘mobile-only’ ads. By launching ‘Enhanced Campaigns’, all campaigns must now target tablet/desktop-only or all devices (mobile plus tablet/desktop). Mobile Whitebook 2013 • Changes to Facebook’s news feed algorithm, reducing the opportunity for low cost and wide reach, placing a requirement on paid advertising. • The emergence of competitors selling similar products on Amazon Marketplace. Mobile Ad revenue collected by Google in the US 57% Facebook Collects Just 9% www.velti.co.uk 15
Page 1 and 2: In partnership with Mobile Whiteboo
Page 3 and 4: Mobile Whitebook 2013 Contents 4 In
Page 5 and 6: Mobile Whitebook 2013 About Velti V
Page 7 and 8: Consumer Data: The Case for Mobile
Page 9 and 10: Tablets become the screen of choice
Page 11 and 12: Tablet behaviour is different to th
Page 13: Selling effectively means reaching
Page 17 and 18: Respondents: 180 How mobile is your
Page 19 and 20: Respondents: 171 How significant do
Page 21 and 22: Five steps to mobile success As the
Page 23 and 24: Measurement for mobile One hindranc
Page 25 and 26: Mobile Whitebook 2013 Case Studies
Page 27 and 28: Samsung Hope Relay The Challenge To
Page 29 and 30: Mobile Whitebook 2013 How to Contac

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