mobile and digital

Conclusions based on the results of

Q4 2013By Mohamed El-Deeb

Mobile Commerce

and Digital Marketing

Lessons from 2013 Holidays season

The Holiday of 2013 was unique to the U.S market because of several coincidences

resulting in a shorter-than-usual shopping season combined with the cold weather

that kept shoppers indoors. Retailers compensated by starting holiday deals earlier

this year, extending online deals season as well.

The outcomes from this nontraditional season brought the attention to a new era

in retail marketing that involves online sales (and mobile in particular) as well as the

digital marketing with the underlying focus on social networks.

According to Ecommerce Quarterly (EQ4 2013); sales results for this season

showed a 12% growth of online retail sales growth over that of 2012, while overall

retail growth was only 4.1%.

Only one in five online purchases were made on a mobile device (phone and tablet)

in 2012, while in 2013, it is one in three, growing approximately 50%. And with

mobile comes social networks, which also had a role in shaping 2013 retail climate.

Not Digital Marketing, but Brand Building

However, this increased importance of online commerce and the associated digital

marketing should not be treated as a separate discipline apart from the traditional

marketing efforts.

As proclaimed by Procter & Gamble’s global brand building officer, what matters

most in today’s digital marketing success is the creative idea and other brand

building efforts rather than the tools and technology involved in digital marketing.

So, a successful marketer should have a mindset that looks at digital marketing as

an integral part of the overall marketing campaign efforts of the organization. Thus,

digital marketing is a mean not a goal.

Mobile Commerce and Digital Marketing

Tools for future marketplace

MobileTakeover

In Q4 2013, one out of three visits to ecommerce websites came from

either a tablet or smartphone—up from one out of five last year— and,

overall, mobile ecommerce orders grew 102% year-over-year and

accounted for 4.22% of holiday ecommerce orders.

But, if we compare average order value of online purchases, we note that

the true mobile superstar of the holidays is the tablet.

This shows that tablets are comparable to desktops and laptops in that

shoppers will buy on them, whereas consumers are more likely to use

smartphones to browse.

Mobile optimization has to be a crucial part of marketing strategy and all

messages should render properly across all screens and devices. Using

responsive or fluid design increases mobile openings and engagement.

As Peter Fader says, “despite Android’s dominance over iOS in terms of

devices market share, Apple products delivered more sales. When we look

at all things that people using iOS did, it’s clear that it’s much more

profitable and attractive than Android.”

Website Trafic byDevice

73.21%

14.58%

12.21%

81.62%

9.55%

8.83%

Q4 2013 Q4 2012

Traditional

Tablet

Smartphone

MOBILECOMMERCE

102%


2013

2012

22.98%Year Over Year Increase

Traditional

2013

2012

17.27%Year Over Year Increase

Tablet

2013

2012

.50%Year Over Year Increase

Smartphone

$164.13

$133.45

$153.44

$130.84

$129.42

$128.75

Average Order ValuebyDevice(November&December)

EcommerceHolidayHighlights

Social media is becoming increasingly crucial for ecommerce success

too, while it may not have the critical significance of mobile. Also, due to

the volatile nature of social media, it is important to understand its true trends to

engage with users where they are most active.

For example, traffic originating from social sites increased 13.9% from

20 12 to 20 13, but there’s been a 15% drop in social conversion rate (from

.87% in 20 12 to .74% in 20 13). This might be a result of Facebook’s declining

traffic. With around 75% of social traffic derived from Facebook, its

decline had a major role on the drop of conversion rate of social media

as a whole.

On the opposite end, Pinterest conversion rate rose to 29.8% in just one

year. According to a recent survey by the Harvard Business Review, a full

21% of Pinners have bought an item after pinning, repinning it, or liking it.


PINTERESTCONVERSION

RATE

30%

Social Networks ImpactOne of the major marketing differentiating competencies is to keep delivery

promises with the right quantity, quality and time as per the order. That is

why more retailers are trying to minimize their lead time – the time

between order and delivery. Online commerce allows for keeping an

updated stock of the quantities and varieties available for purchase and the

expected time of delivery.

The capabilities of mobile and tablet devices allows for location based

targeting, which was not possible before in traditional online commerce

platforms.

Some retailers are implementing a combination of in-store and online

commerce channels – usually called click-and-mortar. Online retailers must

bridge the gap between both channels to keep the same shopping

experience through real-life and personalized marketing efforts.

Targeted marketing messages through social media or emails should

provide continuity of experience through the online store, keeping a

consistent feel.

OnlineCommercevs. brick-and-mortar

References

1. Ecommerce Quarter ly – EQ4 2013: Hol iday Roundup, a monetate publ icat ion (December 2013)

2. P&G Brand Off icer Says 'D ig i ta l Marketing Is Dead‘ , Stephen Lepitak , The Drum (September 2013)

3. How Pinterest Puts People in Stores , Harvard Bus iness Rev iew (August 2013)
