Mobile Advertising and Shopping - US - July 2015


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Mintel

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With rapid adoption of smartphones and tablets, mobile ad sales and mobile shopping are both seeing dramatic growth: Mobile ad sales grew 76% in 2014 and 41% in 2015. Mobile shopping sales grew 57% in 2014 and 32% in 2015.

Even so, mobile commerce represents only 22% of total online sales, and mobile ads carry only 31% of total online ads. Online shoppers continue to prefer the PC over mobile, and the majority of smartphone users would likely prefer an ad-free experience. However, penchants for mobile shopping and interests in mobile ads vary sharply between demographic groups, as delineated in the surveys conducted for this report.

Overview

What you need to know
Definition

Executive Summary

The issues
PCs still preferred for shopping
Figure 1: US mobile ad sales as share of total online ads, 2010-20
Small screens dominate away from home
Figure 2: Home and away from home use of PCs, tablets, and phones for internet access, March 2015
Bright spots in mobile ads often unwelcome
Figure 3: Attitudes and behavior related to mobile engagement, March 2015
The opportunities
Building location and context into ads
Figure 4: US mobile ad sales and forecast, at current prices, 2010-19
Voluntary activities top interest in mobile ads
Figure 5: Use of couponing apps and QR codes, March 2015
Reaching young families, and Hispanics
Figure 6: Exposure to mobile ads, selected demographics, March 2015
Young men most likely to click, most likely to buy
Figure 7: Clicks and purchases in response to mobile ads, selected demographics, March 2015
What it means

The Market – What You Need to Know

Rapid adoption swells sales
Shopping preference, ad aversion keep PC dominant
Continued growth ahead

Market Size and Forecast

Ad dollars follow eyes and ears to mobile
Figure 8: US mobile ad sales and forecast, at current prices, 2010-19
2020 mobile shopping sales forecast at $200 billion
Figure 9: US mobile shopping sales and forecast, at current prices, 2010-20

Market Perspective – Mobile Ads

Mobile 31% of online ads
Figure 10: US mobile ad sales as share of total online ads, 2010-20
Bright spots in smartphone ads largely unwelcome

Market Perspective – Mobile Shopping

2019 share of online shopping to reach 31%
Figure 11: US mobile shopping sales as share of total online shopping, 2011-19
PCs preferred by 70% for shopping online
Figure 12: Preferred device for shopping online, March 2015
Average order on tablets akin to PCs
Figure 13: Average order size for shopping online, March 2015
Frequency of PC shopping exceeds phone and tablet
Figure 14: Frequency of shopping online via phone, tablet, and PC, March 2015

Market Factors

Ownership of smartphones and tablets
Figure 15: Smartphone and tablet ownership, March 2015
Video, price comparison to propel ads
Figure 16: Mobile web usage, April 2012-December 2014
Smartphone dominates away from home
Figure 17: Home and away from home use of PCs, tablets, and phones for internet access, March 2015

Key Players – What You Need to Know

eBay and Amazon far in lead
Relying on web slows growth
Social and search enter commerce

What’s Working?

eBay and Amazon dwarf competition
TV and mobile a perfect fit
Figure 18: Global mobile shopping sales of selected retailers, 2013-14
Mobile ad leaders growing faster than full market
Figure 19: Net US mobile display ad revenues, by company, 2013-14

What’s Next?

Ad sellers board mobile shopping
Augmented reality apps
Casting hardware takes mobile to big screen
Connected cars offer new ad opportunities
Figure 20: Use of mobile internet radio in the car, by gender and age, March 2015
Investing in the tablet

What’s Struggling?

Mobile apps required
Figure 21: Mobile sales growth and share of selected retailers without apps, 2013-14
Twitter MAU growth slowing

The Consumer – What You Need to Know

Reach of mobile ads rises
Apps gaining steam
High levels of positive response to mobile ads

Exposure to Mobile Ads

Clear trend upward in reach of mobile ads
Figure 22: Gains in exposure to mobile ads, by type of ad, May 2014-March 2015
Limited reach suited to immediate calls to action
Figure 23: Types of ads seen on a smartphone or tablet in past month, March 2015
Reaching young families and Hispanics
Figure 24: Exposure to mobile ads, selected demographics, March 2015

Response to Mobile Ads

Substantial efficacy in spite of dim attitudes
Figure 25: Responses to mobile advertising in past month, March 2015
Improved response among men, younger ages, Hispanics
Figure 26: Clicks and purchases in response to mobile ads, selected demographics, March 2015

Frequency of Mobile Shopping

Larger households and young men most active
Figure 27: Frequency of shopping online via phone, tablet, and PC, March 2015

Product Categories Purchased on Mobile

PC retains edge on larger purchases and clothing/accessories
Figure 28: Categories purchased on PC, phone, and tablet, March 2015
Larger households more likely to buy consumables via mobile
Figure 29: Purchase of consumables via phone, by household size, March 2015

Preferences Between Apps and Websites

Near split in usage
Figure 30: Use of apps vs web for smartphone shopping, March 2015
Technophiles head for apps
Figure 31: Use of apps for smartphone shopping, selected demographics, March 2015
Advantages in apps

Appendix – Data Sources and Abbreviations

Data sources
Sales data
Fan chart forecast
Consumer survey data
Consumer qualitative research
Abbreviations and terms
Abbreviations
Terms