Index

1. Methodology

1. Used Methodologies

2. Who we talked to

2. Audience profile

3. Mobile marketing

4. M-commerce

1. Use of devices

2. Mobile purchasing

3. Safety

4. Future M-commerce

8. Conclusions

Used Methodologies

1 – Online Survey:

• Tool used to obtain statistic relevant data that as a sample represent the universe

to be analyzed.

• For this study an online survey was applied with 17 closed end questions

(including demographics) and duration of approximately 10 minutes.

2 – Online Community:

• This methodology is recommended to explore and understand in depth the

questions related to signs, motives, desires, incentives and barriers that are

usually harder to get to in a rational way and require a more active approach.

Who we talked to

1- Online Survey:

• Men and Women

• Classes ABC (Brazil Criteria)

• 15 to 65 years old

• Location: Brazil (mix of different areas)

• Who own mobile devices (either tablets or smartphones)

• Who go online through these devices

Sample: 450 people

Who we talked to

2- Online Community:

• Men and Women

• Classes BC

• 21 to 32 years old

• Who go online at least 4 times a week

• Who go online through mobile devices

• Locations: PR, RJ, SP, PE and RS.

Sample: 10 people

Audience Profile

32 years oldIs the average age of respondents

30%38%

18%14%

15 to15 26 to 35 36 to 45 46 to 65

40% 60%

Base: 450 Surveys.

Screener: 15 to 65 years old

Age Groups:

Audience Profile

SEC* Monthly Income

2%

12%

28%

34%

19%

5%

A1

A2

B1

B2

C1

C2

5%

11%

38%

25%

12%

9%

More than R$ 14.500

From R$ 7.250 toR$14.499

From R$ 2.900 to R$7.249

From R$ 1.450 to R$2.899

Up to R$ 1.449

Did not answer

Base: 450 surveys.

Screener: classes ABC. / *SEC determined based on the Brazil Criteria.

Audience Profile

Location distribution:

Base: 450 surveys.

Ownership of Mobile Devices

50% Own a smartphone + a

tablet

96%

54%

Smartphone

Tablet

Base: 450 surveys.

Question: “Do you own any of the following devices?” (MA)

Tablets are already part of more than half the

audience’s lives

Mobile advertising is more

negatively criticized than

complimented on. Voice

messages are the least liked

among them, followed by

banners within games and SMS.

Mobile Marketing

Types of advertisement that are seen the most X audience opinion:

27% 47% 30% 26% 12% 33% 71%

73% 53% 70% 74% 88% 67% 29%

Liked It Did Not Like It

85% 74% 66% 65% 44% 24% 5%

SMS Website Banner App Banner Game Banner Voice Message/Call SMS Flash Bluetooth

Base: 450 surveys. / Question: “Have you seen or received in your smartphone or tablet any of the following types of advertisement listed

below?” (MA) / Question : “Thinking of the types of advertisement you have seen, which ones you liked and which you did not?”

SMS is the most received mobile advertising

format by the audience.

The most important issues regarding mobile advertising disapproval are:

• Unauthorized advertising (mostly SMS)

• Irrelevant content

• The feeling of being invaded

• The exaggerated frequency of those ads

• Insecurity regarding virus contamination or hacking (especially with banners)

Mobile Marketing – Negative Aspects

Question: “Among the types of advertisement you DID NOT LIKE to see on your mobile device, what were the reasons not to like the format?” (MA)

Unauthorized advertising is the main complaint

about mobile advertising.

Mobile Marketing – Negative Aspects

The reasons why the audience does not like each of the types of advertising:

(multiple answers)

SMS

Base: 276

SMS Flash

Base: 74

Voice Message/

Call

Base: 173

Website

Banner

Base: 174

Game

Banner

Base: 216

App Banner

Base: 207

“I did not authorize this type of advertisement” 72% 76% 68% 59% 60% 60%

“The content was not interesting” 67% 57% 57% 56% 62% 62%

“I have felt invaded” 68% 73% 70% 31% 44% 40%

“The frequency for this kind of message is too high” 55% 32% 25% 57% 60% 61%

“I was afraid I was getting a virus or being hacked” 39% 54% 26% 63% 59% 58%

“There was no option to erase or close the ad” -- 45% -- 46% 58% 53%

“The content was not personalized” 39% 39% 38% 39% 40% 39%

“I thought the time was not good” 47% 41% 46% -- -- --

“The ad was not interactive” 34% 46% 35% 30% 32% 31%

“It had a bad visual” 33% 35% -- 30% 41% 38%

“I could not find how to interact with the ad” 24% 32% 24% 22% 23% 27%

Question: “Among the types of advertisement you DID NOT LIKE to see on your mobile device, what were the reasons not to like them?” (MA)

Mobile Marketing - Compliments

The most important approval aspects of mobile advertising were:

• Interesting content

• The option to erase or close the ad (mostly with banners)

• Nice visual (banners)

• Personalized content

Question: “Among the types of ads you LIKED to see in your mobile devices, what were the reasons for liking them?” (MA)

Interesting content is what makes people

interested in mobile advertising.

Mobile Marketing - Compliments

Reasons why the audience LIKES each type of advertisement:

(multiple answers)

SMS

Base: 104

SMS Flash

Base: 36

Voice Message/ Call

Base: 23

Website

Banner

Base: 157

Game

Banner

Base: 75

App Banner

Base: 87

“The content was interesting” 75% 50% 74% 66% 51% 56%

“There was an option to close or erase the ad” 40% 44% 22% 66% 59% 47%

“The visual was nice” 25% 33% -- 62% 61% 54%

“The content was personalized” 33% 42% 22% 47% 33% 33%

“I have felt like there was no real risk of viruses or being hacked” 41% 28% 26% 33% 40% 33%

“The ad came in as a good opportunity for me time wise (I was actually thinking of buying

the product or service)”30% 25% 22% 45% 32% 25%

“The ad had a level of interaction” 16% 22% 26% 45% 37% 33%

“I actually authorized the ad to be displayed” 38% 25% 17% 22% 27% 24%

Question: “Among the types of ads you LIKED to see in your mobile device, what were the reasons for liking them?” (MA)

Mobile Marketing - Interests

Mobile Ads triggers mainly these actions:

• Clicks

• Interest on the product or service

• Page views for the advertisers’ websites

• Information seeking on the product or service

Website banner is what makes audience engage the most though mobile

devices.

Question: “Considering all those ad types you saw on your mobile device, have you at least once got interested in the product or service advertised?” (MA)

Clicking on the ad is the most commonly triggered

action among consumers.

Mobile Marketing - Interests

Actions based on interest for mobile ads:

(multiple answers)

SMS

Base: 381

SMS Flash

Base: 110

Voice Message/

Call

Base: 197

Website

Banner

Base: 333

Game

Banner

Base: 292

App Banner

Base: 295

“I have clicked on the ad” 20% 22% 13% 56% 23% 26%

“I have gotten interested in the product or service announced” 18% 19% 11% 55% 23% 25%

“I have viewed the announcer’s website” 16% 22% 12% 54% 19% 19%

“I have searched more information on the product or service” 17% 15% 13% 50% 18% 22%

“I have subscribed to get more content (Through Facebook likes, e-mails or SMS)” 14% 15% 8% 36% 13% 16%

“I have bought or downloaded the product or service being advertised” 9% 7% 6% 36% 19% 20%

“I have told a friend about it” 10% 14% 8% 32% 14% 14%

“I have interacted with the ad” 9% 11% 10% 35% 12% 12%

“I have emailed the advertiser” 9% 12% 5% 30% 8% 8%

“I have called the advertiser” 10% 12% 10% 23% 3% 7%

“I have texted the advertiser” 18% 18% 5% 10% 7% 6%

Question: “Considering all ad types you saw on your mobile device, have you ever taken interest in a product or service advertised?” (MA)

Mobile devices are used a lot in

the purchasing journey, although

it is using a PC that shoppers

usually finish the purchase.

97% 96% 92% 79%81% 66% 26% 54%42% 37% 21% 22%

Devices Usage

Only 27% of those who use

smartphones use it for shopping.

Among tablet owners the number is

bigger: 38%.

Activities performed by the audience X devices used

98,4% 97,8%92,2%

83,6%

Seek information aboutproducts or services

Price comparison forproduct or services

Shopping Internet Banking Usage

Base: 450 Surveys.

Question: “What tasks do you perform with each device?” (MA)

Smartphones and tablets combined are more used

than PCs to seek information and for price

comparison.

Devices Usage

Reason for PC preference when it comes to

shopping:

• Easiness to browse

• Better interface of shopping portals

• The possibility to open multiple tabs makes

price comparison easier.

• The feeling of security.

“Up until now I have never actually finished a purchase

through the smartphone, although the device is one of the

most used to decide what I want to buy: I research and

compare prices”

(Fernanda, 24)

“I have already downloaded those deal-of-the-day website

apps (such as Peixe Urbano) or price comparison (such as

Buscapé or Bondfaro) but I rarely use them. I do not think

they are so easy to use as the PC version. I say this because

I really like to open multiple tabs at the same time to compare

everything”

(Gimene, 31)

The PC is seen as practical, easy and safe for

shopping purposes.

Mobile Shopping

57%

67%

2013

2014

60%

37%

32%

24%

10%

33%

Store Website

Paying Services (eg: Buscapé, Pay Pal, Pagseguro)

App Store (eg: App Store, Google Play)

Shopping App

SMS (ex: SMS content on soccer, horoscope, etc.)

Have never purchased anything

Have shopped through

mobile devices:

The way mobile shopping happened:

Base: 450 Surveys. / Question “How did you shop using your mobile device??” (MA)

Source 2013: Research “Jovens brasileiros e o mundo mobile (Brazilian Youth and the Mobile World”, E.life and Pagtel, June 2013.

Most purchases on mobile devices are made

directly on store websites.

Mobile Shopping - Motivations

46%

40%

39%

30%

26%

25%

21%

15%

13%

11%

10%

9%

"It is more practical"

"I have seen an Ad elsewhere (PC, TV, Magazine, Newspaper,…

"I have seen the Ad on a website/app/game on my mobile device"

"The purchase for for the smartphone or tablet itself (apps, content)"

"I use purchasing or payment apps"

"Browsing is good"

"I can compare and purchase all with the same device"

"I have family of friends who have purchased"

I have received the Ad through the smartphone"

"I feel safer than purchasing through the computer or physical store"

"The language used in the mobile device is simpler""

I am part of a fidelity program for mobile shopping"

Reasons why audience decides to buy through mobile devices:

Base: 300 Surveys.

Questions: “Why did you decide to have this purchase (or purchases) through the mobile device?” (MA)

The main motivation for shopping is practicality

although advertisement can serve as a strong

stimulus as well.

Mobile Shopping - Barriers

69%

43%

32%

29%

18%

12%

7%

7%

7%

1%

"I would rather shop through the PC'

"I don't think it is safe"

"The website is either not mobile adapted or too small"

"The screen is small"

"The keyboard is confusing and not practical"

"I think it is complicated"

"I don't have a credit card"

"I do not like to shop online, I like to go to the stores"

"I have tried but have experienced problems or could not make it"

"I was not aware of this possibility"

Reasons why audience decides not to purchase through mobile devices:

Base: 150 Surveys.

Question: “Why do you not shop through your mobile devices?” (MA)

Among those who have never purchased anything

through mobile devices, most are actually online

shoppers. Security and browsing experience were

mentioned as barriers.

Mobile Shopping – Pros and Cons

Advantages of shopping through mobile devices:

• Practicality

• Convenience

• Possibility of comparing product price comparison

within stores

Disadvantages of shopping through mobile devices:

• Internet speed and overall connection quality

• Interface and browsing on mobile devices

• Lack of good apps to research prices and purchase

things online

“3G connection and wi-fi tend to be unstable, so I am

afraid it might happen to lost connection during the

purchasing steps”

(Fernanda, 24)

“I think the purchasing apps still have a lot to be

improved. Maybe in a couple of years it will be better”

(Bruno B., 23)

“There are still so many bugs on some apps, websites

that are not mobile-ready. There is also the research

and trust issues”

(Larize, 25)

A Speed of mobile connection is a concern

when shopping through the devices.

Mobile Shopping- Products

Products considered most suitable for mobile shopping and purchasing:

LEIZURE AND CULTURE GOODS VIRTUAL ITEMS FOOD

61% Tickets 52% Electronics 55%Virtual Content (Online

music, apps, digital books)44% Food Delivery

47%Cultural Products (Books,

CDs, DVDs)36% Clothing and Footwear 18%

SMS Content (Horoscope,

soccer news)25%

Bar, Club or Restaurant

Bill

26%Tourism (Plane tickets,

hotels, packages)33% Home Appliances 15%

Virtual Currency

(e.g.: Bitcoin)15% Supermarket Purchases

13% Furniture and Decoration

Base: 450 Surveys.

Question “Which products or services do you think are most suitable for mobile shopping and purchasing?” (MA)

Tickets and virtual content are the items

considered the most suitable for mobile shopping

and purchasing.

Loyalty Programs

• The main advantage as seen by the audience is the possibility of

exchanging the points for discounts in the next purchases or for

gift-cards.

• On the other hand, prizes can be unattractive and it may take a

long while to get enough points.

• Valuable discounts

in tickets

• Points take a long

time to expire

• Cost-effective

• Valuable gif-cards

• Easiness to get and

exchange points

• Easiness to transfer

points, exchange

them.

• Practicality

“I can be wrong, but I have the

feeling that I do not spend

enough to get a good amount of

points to exchange for

something nice, so it is a

worthless task. I also get the

impression that I would not find

really interesting prizes when the

time of the exchange were to

arrive.”

(Ivy, 29)

Good part of the audience have heard of loyalty

programs for online/mobile transactions but few of

them are active users of them.

M-commerce is still seen as less safe than

shopping online through the PC. A trustworthy

sales point and look and feel of the website are

still key for this security perception.

Safety

• The audience think of online shopping done

through the PC as trustworthy because it is

easier for them to see that they are in a safe

environment – lock symbol and https domains

are part of that readable codes.

• Shopping through unknown sites/apps, those

they haven’t used before, are avoided.

• Reclame Aqui is an important source of sales

points reputations.

• The interface for shopping portals for mobile is

influential on the purchasing decision.

“Since we are supposed to have caution when

buying things through the smartphone I avoid

sites I am not familiar with already”

(Bruno B., 23)

“I believe that the unsafe aspect for the mobile

comes from the lack of minimal certification, on

the internet most websites show their level of

security and even use add-ons to ‘keep the

environment secure’”

(Giovani, 21)

Safety is a barrier for m-commerce.

Safety

Key factors that make/would make audience more confident when it comes to purchase security:

Trusting the brand for the website, app

or app store.The types of payment available

Security terms published on the website

or app.

Inserting a personal password.

Visual recognition through image.

80%

47%

37%

15%

User reviews on the store, product or

service.

Biometrics recognition (Digital

Print).

Voice recognition.

56%

39%

20%

12%

Base: 450 Surveys.

Question “Which factors make (or would make) you feel safe when mobile shopping?” (MA)

Trusting the sales channel is what most makes the

consumer feel safe when purchasing through

mobile devices.

Safety

What can be done to improve the perception of

security among consumers:

• Security certification for mobile devices

(the equivalent to locks on the browsers).

• Positive evaluation from peers.

• Improvement on the interface of shopping

portals for mobile.

• Lack of pop-ups make the website feel

more trustworthy and makes browsing

easier.

“Websites with a lot of ads/links do not seem

reliable, mainly those with weird pop-ups. So I

look for stores that are more well-known”

(Fernanda, 24)

“I have never purchased anything through my

smartphone or tablet, but I guess I would only

do it through an app. When I am on a website it

is easier to look for signs that the page is

secure. I am afraid I would not be able to

identify those signs through the mobile device”

(Ivy, 29)

According to consumers’ perceptions apps feel

safer than websites.

Payment Platforms

• The lack of trust towards the app or

website can be overcome in case a well

known payment platform is used for the

transaction, such as PayPal or

PagSeguro.

“Today there are websites that offer a warranty and make you

feel safer purchasing online, even if you don’t have previous

experience with it. For example Paypal only pays the sender

after you get your merchandise and even will refund you in case

of any problem.”

(Monique, 24)

“I try to always buy from websites that are known, I also research

Reclame Aqui beforehand and also opinion blogs. I also try to

make the transaction through payment platforms such as

PagSeguro and PayPal”

(Gimene, 31)

Payment platforms mediate the transaction and are

considered relevant security criteria when for

shopping.

Virtual Currency

• Online and mobile payment programs are not used

a lot.

• Virtual currency Bitcoin is known by some but there

is a lack of information on how it actually works.

“I have read something about Bitcoin but I do not

really recall how it works so I would not feel safe

using it, I would rather get more information about

it. I have never heard of payment using SMS nor

have I heard of virtual money (sounds like ‘fake

money’ to me)”

(Ivy, 29)

“I have never heard of SMS payment… Bitcoin

yes, I have heard of but I do not know how it

works”

(Bruno B., 23)

There is still a lack of trust when it comes to virtual

transactions, especially when it comes to SMS and

virtual currencies.

According to the audience perception, virtual commerce in

the future will provide a realistic shopping experience. M-

Commerce, through mobile and wearable devices will

dominate the business.

Future M-Commerce

The audience believes that technology will advance

to a point product visualization will be enhanced –

with holographic images and augmented reality –

making shopping online closer to the real thing.

“I hope shopping becomes more realistic, maybe

when buying a product online I will be able to print it

at home in my 3D printer and never to depend on

mail delivery again...”

(Fernanda, 24)

“The virtual shopping experience today has a lot of

room for improvement when compared to the

physical stores, I do not know how much e-

commerce channels think of that when trying to

improve their experiences”

(Ivy, 29)

Interacting with the product is what could be

improved in this virtual shopping experience.

Future M-Commerce

Channels that will be used for shopping:

• Smartphones and tablets

• Google Glass

• Smart TVs

• Bluetooth

• Smart watches

Payment methods to be used:

• NFC Technology (Near Field Communication)

• Biometry or Eye Scan for user identification.

• Greater usage of virtual currency.

“I believe that in the future we will use NFC technology to

pay for things and we will be able to centralize all services in

a single account. I believe this will be done with

smartphones, glasses, watches and with time we will use

bigger devices less and less.”

(Madelaine, 26)

“As banks are using tokens e digital prints for clients I would

conceive the idea that in 10 years I would be able to buy a

lot of things in a lot of channels with just my thumb.”

(Rafael, 31)

When it comes to security there is a lot of expectations regarding greater protection of personal information.

Mobile devices will be key for future shopping

journey.

Wearable Devices

“Maybe in the future more wearable technology will emerge

and fill fit our daily lives. For now it still seems to me like

science fiction devices.”

(Bruno F, 32)

“I have hard and even read about Google Glass. I guess it has

a lot of potential when it comes to technology, I can see

myself using it in the future without any problems. Other than

the amazing potential for functionalities related to augmented

reality I also think the discreet aspect is key for it to become

more and more popular”

(Rafael, 31)

Google Glass is the most known

device. The potential for its

technology is seen by people and

they see themselves using the

device in the future.

On the other hand, Motorola’s

HC1 Headset, is seen as

fictional, not practical nor

discreet.

Wearable devices are still seen as futuristic and

fictional/unreal.

Wearable Devices

Positive Aspects:

• Immediate access to information without having

to stop daily activities to get them.

• It will make people’s lives easier as it is

convenient and practical for the user.

Negative Aspects:

• Price – at first it is meant for rich people only.

• Lack of security – People are reluctant to use

these gadgets in public.

• Quality and price of mobile technologies.

• Excessive connection to the device.

“I do believe that the more discreet they are, the

better, to have something getting people’s attention

would not make me feel safe at all”

(Larize, 25)

“Sometimes it seems something really cool, out of

science fiction movies, but sometimes I think it is too

much and people should disconnect a little bit. Like

when you forget your phone at home and you feel as

if you lost a limb, you know? I guess that for those it

will be even worse.”

(Ivy, 29)

Wearable devices will be part of our daily lives

when the price paid for them is within everyone’s

budgets.

WHAT IS EXPECTED OF M-COMMERCE?

• Mobile Ads that makes people interested. The types of Ads should be reimagined to get the audience

to trust them. Interesting and personalized content with attractive visuals as well as the option to

close them have a positive impact among consumers.

• The complete purchase journey through mobile devices. Smartphones and tablets are key for the

initial steps of this journey but seldom they are used to finish the transaction. Security certification

and mobile-adapted interfaces are part of the path to gradually change this scenario.

• Loyalty programs that are appealing. Loyalty programs are still not trending for mobile devices. For

them to be seen as worthwhile the transactions should be made easier and prizes more attractive as

well as the scoring process which should be quicker.

Conclusions

WHAT IS EXPECTED OF M-COMMERCE?

• A wider usage of payment platforms and virtual currencies. Payment platforms that mediate

transactions can contribute for the brand when the platform brand is trustworthy. On the other hand,

virtual currencies should be advertised more to gain territory when it comes to public knowledge and

acceptance of it.

• The realistic shopping experience. Mobile and wearable devices are part of the collective imagination

when the topic is shopping in the future. In this sense the challenge of M-Commerce (as well as E-

Commerce’s) is to provide a realistic shopping experience for the consumer. Making use of

technologies such as augmented reality the audience would be able to have a virtual experience that

is closer to the sensorial experience that takes place in a physical shop.

Conclusions

Pamplona, 518 – 4º Floor

ZIP-CODE: 01405-000 – São Paulo – Brazil

(+55) 11 2339 4928