mobile shopping set to explode, driven by 64milion subscribers

7/31/2019 Mobile Shopping set to explode, driven by 64milion subscribers

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Not Just for Talking: Nearly 40% of U.S. AdultMobile Phone Owners Say Making Purchases via

their Device is Important, as Phone is SeenIncreasingly as a Commerce ToolNew study also points to 64 million* U.S. adults who do not already receivealerts as interested in opt-in text message marketing from brands, which

could drive further commerceSAN FRANCISCO May 3, 2012 Today Placecast is announcing results of a survey

which reveals that Americans are eagerly adopting the mobile phone for all aspects ofshopping, from product research to purchase via the device. The poll revealed that 20

percent of all adult mobile phone users (who own smartphones or standard cell phones)

representing about 39 million* Americans - said theyd made an online purchase usingtheir phones in the past year. The results come from the third wave of a poll

commissioned by Placecast and conducted online by Harris Interactive in February.Purchase rates among smartphone owners was significantly higher than purchase rates

among those who own a standard cell phone: 34 percent of smartphone owners havemade an online purchase on their device in the past year, versus 20 percent of standardphone owners. Overall interest in using phones for purchases has grown by 8

percentage points in the past two years, with 38% of all mobile phone owners saying it isat least somewhat important. Here again, smartphone owners feel even more strongly:

59 percent say it is at least somewhat important to be able to make a purchase on their

deviceU.S. adults also displayed greater receptivity to text message marketing, with more thanthree out of ten mobile phone owners who do not already receive text alerts fromcompanies saying theyd be interested in receiving messages from brands, providedtheyd opted-into the service. This indicates that 64 million adults* in the U.S. are open to

this type of mobile marketing. This is an increase of 5 percentage points from when this

question was asked in December, 2010.This research marks the third survey conducted online by Harris Interactive on behalf of

Placecast similar studies were conducted in summer of 2009 and winter of 2010. Theresults collectively make up a series called The Alert Shopper, a tracking study

conducted to understand shifting consumer behavior around mobile shopping. 2262

adults, from a nationally representative sample, were surveyed in February 2012. 83percent of the U.S. adult population reported that they own a mobile phone (either asmartphone or standard cell phone) which is in line with Nielsens projections of overall

mobile phone penetration in the US.Overall, the survey shows that Americans are more interested than ever before in allaspects of mobile commerce also called m-commerce (chart 1). Fifty percent ofsmartphone owners indicated they had used a GPS/mapping app to find a retail location

in the past year, 44 percent had accessed the website of a retailer where they typically


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shop from their phones, and 34 percent had downloaded a retailers app of which theytypically shop. An equal number (24 percent) had either searched for a coupon on their

device to use at checkout, in a physical store, or used a barcode scanning app to

comparison shop. Usage of phones for commerce activities is most pronounced among smartphoneowners (now at 50 percent of all mobile phone owners according to March 2012 Nielsen

statistics). M-commerce also occurs among standard phone owners, where, despite thelimitation of the phone, 13 percent had accessed a retailer website.In 2010, The Alert Shopper survey found that 30 percent of mobile phone owners

responded that it was at least somewhat important to be able to use their phones to

make a purchase; in 2012, that number increased to 38 percent. This eight pointincrease shows that approximately 16 million more Americans are interested in m-

commerce today, compared to just two years ago. (chart 2)Just as purchases ofsmartphones have been booming in recent years, so too havepurchases usingsmartphones," says Placecast CEO Alistair Goodman. "In just twoyears, we saw that interest in making purchase via mobile increased by eight percent

meaning that millions of Americans are recognizing the convenience of using theirphones for shopping. Retailers that realize the potential of mobile will be able to reach

consumers in an incredibly personal way, cultivate a relationship with them, and

increase their overall sales.The poll also points to the huge opportunity that mobile text marketing represents for

marketers. Texting continues to be considered the most important activity done onphones, with the percentage of participants who reported that texting is extremely/very

important to them as follows: Among smartphone owners: 67 percentAmong standard mobile phone owners: 35 percent Comparatively, the percentage of participants who reported accessing the internet ontheir phones as extremely/very important to them was lower than the text messaging

data:Among smartphone owners: 60 percentAmong standard mobile phone owners: 15 percent (chart 3)Currently, only four percent of mobile users receive marketing messages via text;however, 33 percent of U.S. mobile phone users who do not already receive thesemessages said they are at least somewhat interested in such messages, provided they

gave permission. When applied to the number of US adult mobile phone subscribers,

this data indicates that approximately 64 million* Americans would be interested in thissort of marketing. (chart 4)


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The poll also showed that those who currently receive text promotions reported thatthese messages make a strong impact: nearly one out of three said they are more likely

to visit the store as a result, while one in four are more likely to purchase the product

promoted in the store as a result. (chart 5)The importance of mobile offers to the mobile payments ecosystem is becoming asignificant topic for credit card companies, financial institutions, and carriers, as they

recognize the potential for mobile marketing to drive commerce, both in-store and on thedevice.

To learn more about Placecast research, visit www.placecast.net

*Number derived from Alert Shopper III Harris Interactive responses extrapolated to US Census 2010 data

Survey MethodologyThis survey was conducted online within the United States by Harris Interactive onbehalf of Placecast. Data was collected between February 16 and 24, 2012 among2,262 adults ages 18 and older, of whom 1,952 own a standard cell phone or

smartphone; between May 17 and 19, 2010, of whom 1,710 own a standard cell phoneor smartphone; and between July 20 22, 2009, of whom 1,729 were identified as cell

phone owners. Results were weighted as needed to reflect the composition of the U.S.adult population ages 18+ using targets for region, age within gender, education,household income and race/ethnicity. Respondents for this survey were selected from

among the Harris Poll Online (HPOL) database, which includes several million people

who have agreed to participate in Harris Interactive surveys. This online survey is not

based on a probability sample and therefore no estimate of theoretical sampling errorcan be calculated. For complete survey methodology, including weighting variables,

please contact Rachael Himsel Nunez at [email protected] Harris InteractiveHarris Interactive is one of the worlds leading custom market research firms, leveragingresearch, technology, and business acumen to transform relevant insight into actionableforesight. Known widely for the Harris Poll and for pioneering innovative research

methodologies, Harris offers expertise in a wide range of industries including healthcare,technology, public affairs, energy, telecommunications, financial services, insurance,

media, retail, restaurant, and consumer package goods. Serving clients in over 215

countries and territories through our North American, European, and Asian offices and a


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network of independent market research firms, Harris specializes in delivering researchsolutions that help us and our clients stay ahead of whats next. For more

information, please visit www.harrisinteractive.com.About PlacecastStarted in 2005, Placecast is a proven innovator in the arena of location-based

marketing. Placecast's ShopAlerts platform is an end-to-end mobile monetization

solution for mobile operators, payments companies, and brands. The service is designedto drive consumers into brick-and-mortar stores using mobile marketing with patented

geofencing technology.ShopAlerts has transformed the location-based marketing industry, taking home the

top prize for innovation awarded by the National Retail Federation. Over 130 brands, including The North Face, Starbucks, LOreal, Subway, Kohls, Kiehls,Kmart, HP, Chicos White House Black Market, JetBlue and SC Johnson have all runShopAlerts through Placecast and its partners. ShopAlerts is licensed by Telefonica

O2 in Europe and AT&T and DDR in the U.S. and is currently being used by millions of

carriers subscribers. In the U.S., ShopAlerts programs can be delivered across AT&T,

Sprint, Verizon and T-Mobile, reaching up to 268 million consumers.Placecast is backed by ONSET Ventures Quatrex Capital, and Voyager Capital.Media Contact for Placecast:Rachael Himsel [email protected] x 257


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mobile shopping set to explode, driven by 64milion subscribers

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