Mobile Trends & Innovations 2016

Meital Yachin | September 2016

• Marketing Strategies

– Video

– Chats

– Gamification

– Instant Messages

– Social

• Mobile Technology

– Location Based &

Connected: Beacons,

RFID, QR Codes

– Virtual / Augmented

Reality

– Wearables

– Payment

• Mobile Commerce

– Research

– Mobile wallet

– Self service

This report aims to identify trends and innovations that are driven by

the rising mobile technology penetration, and includes examples for

marketers who are responding to those trends, mainly in regards to the

following aspects:

Introduction

“Mobile has forever changed the way we live, and it has forever changed

what we expect of brands. It has fractured the consumer journey into

hundreds of real-time, intent-driven micro-moments. Each one is a critical

opportunity for brands to shape our decisions and preferences.”

Three major engines drive

mobile marketing trends:

convenience, seamless

experiences and instant

experience.

Mobile Shapes Consumers Lives

Source: Google Think

• According to GSMA,

at the end of 2015,

there were 4.7 billion

unique mobile

subscribers globally,

equivalent to 63% of

the world’s

population.

• By 2020, almost

three-quarters of the

global population will

have a mobile

subscription, with

around 1 billion new

subscribers added

over the period.GSMA, “The Mobile Economy”, 2016

Market Trends | Mobile Penetration

• Today, more and more

people in the USA rely

on their mobile devices

for digital access.

• eMarketer expects that

in 2016, 11.7% of US

internet users will go

online exclusively

through a mobile device,

and that number will

continue to rise through

the forecast period

(2016 – 2020).

eMarketer, “US Internet Users Rely on Mobile Devices for Digital Access”, Mar 2016

Market Trends | Mobile Penetration

• According to Deloitte survey, 78% of global consumers have smartphones,

nearly 10% own wearables, and more than 50% have tablets.

• 7% of consumers own all three devices.

• Ovum estimates that the global market for Smartphones is forecast to grow

to around 2,053 million units by 2020. (Ovum, “The Future of E-commerce:

The Road to 2026”, 2016)

Deloitte, “Global mobile consumer trends: 1st Edition Mobile proves to be indispensable in an always-connected

world”, 2016

Market Trends | Mobile Penetration

Source: The Consumer Barometer , Google. 2016

Market Trends | Device Penetration

• The “Internet of things” is expected to further grow

with consumers intending to purchase IoT devices

in the future.

• Cisco estimates that

by 2020, there will

be 601 million

wearable devices

globally, growing

fivefold from 97

million in 2015 at a

CAGR of 44%.

Cisco, “Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2015–2020 White Paper”, Feb

2016

Market Trends | IoT

An online PwC survey to explore consumer behavior and

preferences towards wearables, USA, 2016, found that 45% of

consumers own a fitness band, and 27% own a smart watch.

PwC, “Total Retail Global Report” 2016

Market Trends | Wearable Tech

• 55% of consumers in England own a wearable device. The most

popular is a fitness band (49%) followed by smart watches (37%).

PwC, “Total Retail Global Report” 2016

Market Trends | Wearable Tech

• MILO, the malt drink beverage by

Nestle, have launched a wearable

– fitness tracker for kids, allowing

parents and the kids themselves

to track their activity.Royal Bank of Canada’s (RCB) app

allows payments through wearable

devices. Customers can now send

money, check balance and more from

their watch.

Market Trends | Wearable Tech

TechCrunck, “The future of mobile video is virtual reality” Aug 2016

• With new hardware available to individuals, and a growing body of

content to consume, virtual reality has experienced high growth in

recent years.

• Goldman Sachs estimates $6.9bn in VR Videogame revenue in

2020 and 11.6bn in 2025, with 216 millions users (Goldman Sachs,

“Global Investment Research” Jan 2016)

Market Trends | VR / AR Viewing

Ford has launched a virtual reality app. The app

allows the consumer to experience various

events related to the brand.

"Go behind the scenes, see automotive

superstars in action and get behind the wheel

with this 360-degree view into the world of Ford.“

Watch video

eBay has launched the "world's first" VR shopping

app, offering 12,500 products that shoppers can

browse, select and add to their shopping cart just

by moving their head. Once the app is

downloaded, it works with headsets like

Samsung's Gear VR.

Watch video

IKEA Catalog – the app allows the customers to see how

the furniture will look like in their homes before the

purchase, by using Augmented Reality technology.

Watch video

Market Trends | VR / AR Viewing

• The use of smartphone for standard voice calls has decreased, and as a

recent Deloitte report indicates, 76% of UK consumers used their smartphone

to communicate with others in a voice call in 2015, compared to 96% in 2012.

• Over the same period, other forms of data communication, such as Instant

Messaging, social networks and even email, have become more common.

Deloitte, “Deloitte Mobile Consumer 2015: The UK Cut Games of Phones”, 2015

Consumer Trends | Messaging Apps

• There is a growth in the

popularity of messaging

apps and eMarketer

predicts that by 2018, the

number of chat app users

worldwide will reach 2

billion and represent 80% of

smartphone users.

eMarkete, “Mobile Messaging Reach 14 Billion Worldwide in 2015” Nov 2015

Consumer Trends | Messaging Apps

• Consumer are most commonly checking

text messages and instant messages (IM),

first thing every day. (Deloitte, 2016)

Deloitte, “Global mobile consumer trends: 1st Edition Mobile proves to be indispensable in an always-connected

world”, 2016

Consumer Trends | Messaging Apps

• Hotels are offering guests the ability to text or message them, whether through their own proprietary apps, established messaging channels like WhatsApp or Facebook Messenger, or the use of third-party technologies.

Lucy, a Virgin Hotels App, enables

travelers to chat with guests and

concierge and ask for anything (extra

pillows, spa reservations, laundry pick-

ups, turndown service, valet and more),

without having to talk to anyone.

Consumer Trends | Messaging Apps

A collaboration between Facebook and Uber allows consumers to pay for the

ride and do everything they would normally do in the Uber app on Facebook

Messenger. How it works.

Consumer Trends | Messaging Apps

• Deloitte global Mobile Consumer survey shows that the primary

video use of smartphones is watching short videos (37%) in the

UK.

Deloitte, “Deloitte Mobile Consumer 2015: The UK Cut Games of Phones”, 2015

Consumer Trends | Video

Retailer Williams-Sonoma launched How-to and recipe videos on the brand's YouTube channel, in order to engage shoppers with video and mobile.

The results, according to Google Think:

• 70% increase in mobile sales year over year

• 51% overall increase in e-commerce sales year over year

• 20% higher return on ad spend

• 70% increase in click-through rate across Williams-Sonoma Inc. brands

Watch

video

Consumer Trends | Video

Source: Google Think

• Mobile technology is changing the

shopping experience. Shoppes

research before heading in-store

(gather ideas, research products,

and then search for local

information) and they also make

purchases by using their mobile.

• According to Google Think, 61% of

internet users start shopping on

one device but continue or finish on

a different one.

36% of consumers use their

smartphone to research about

products while visiting the store.

PwC, “Total Retail Global Report” 2016

Consumer Trends | M-Commerce

PwC, “Total Retail Global Report” 2016

Consumer Trends | M-Commerce

• Mobile devices have become a

payment tool and the use of

mPayment is increasing in

recent years.

• According to Deloitte survey,

47% of consumers in emerging

markets and 20% of consumers

in developed markets, reported

using their phones to make in-

store payments.

• Most consumers (54%) reported

using mobile payments

compared to 30% in 2012.

PwC, “Total Retail Global Report” 2016

Deloitte, “Global mobile

consumer trends: 1st

Edition Mobile proves to be

indispensable in an always-

connected world”, 2016

Market Trends | M-Commerce

• Macy’s already has a booming e-commerce presence with more than $6 billion in

online sales, ranked as the 7th largest online retailer in the US.

• “Our goal is to provide our shopper with the best experience in whatever way she

chooses to interact with us: mobile, desktop, store, or all of them together."

• Macy’s app allows consumers to shop in store or online, scan bar codes to get

product details, pricing info & customer reviews, app & pick it up the same day in

store and much more.

Macy’s is piloting a mobile

platform that enables

shoppers to ask product

questions

Market Trends | M-Commerce

• The Starbucks Mobile app shows the

closest Starbucks location, offers Mobile

Order & Pay, as well as the estimated

pick-up time for the order. video

Market Trends | M-Commerce

Hailo app is an app for locating and booking taxi cabs, featuring an automatic but user-verifiable payment function. The payment is embedded as a seamless part of the end-to-end interaction.

• In-app purchases within mobile apps can turn traditional physical

purchases into online purchases and combine purchase and

payment into a single tap, eliminating the step for payment

method selection.

Market Trends | M-Commerce

• Companies offer gaming features in their apps, in order to increase

consumer engagement.

Novo – AccorHotels group App. “Jump on Novotel beds and take your Smart Pillow all the way to the rooftop!”

Places by Le Club Accorhotels. “Stay at

one of our participating hotels and check

in with Places and you can collect points

and badges.” Video

Marketing Trends | Gamification

In the US, Porsche used image recognition technology to promote Outside

Magazine Model 718 Boxster.

Once readers downloaded the Blippar app, they could hold their phone over

the page, allowing an interactive game to pop up on their screen. From

there, users had a chance to race up Gotthard Pass, learn about the new

718 Boxster performance features, and record their best time.

The participant who got the most points won a visit to the Porsche

Experience Center could drive a real Boxster model 718.

Marketing Trends | Gamification

• Mobile technology has made it possible for companies to target

consumers and shoppers according to their locations, while allowing

shoppers to search for “near me” destinations.

• According to Google Trends, in 2015 there was a 2X increase in searches

for “near me” and “nearby”.

• A growing trend in location based marketing is Beacon technology, which

enables location awareness capabilities and a seamless, cross-channel

shopping experience.

KLM - free airport WiFi and

iBeacon technology are

deployed around the airport to

create a more streamlined

experiences for passengers

connecting or departing from

the Dutch airport.

Marketing Trends | Location Based

UK Retailer John Lewis uses location based technology. The app offers Click and Collect service – Once a customer is approaching the store,he/she is getting a text message asking whether he/she is coming to collect an item. When entering the store, the package is ready for pickup without waiting in line. Video.

Marketing Trends | Location Based

• California Fresh Market app lets shoppers scan their products and check out without having to pass through the cashier.

Marketing Trends | Service

Geek Squad is a network

application which provides service

for Best Buy customers. The

application features different

services, such as making an

appointment for repairs, checking

repair status ,contacting an agent ,

locating a store and more.

Marketing Trends | Service

• Three major engines drive mobile marketing trends: convenience,

seamless experiences and instant experience.

• The mobile market is rapidly evolving with innovative technologies

constantly made available to consumers.

• Compared to our report from 2014, it appears that Virtual /

Augmented Reality and technologies based on location have been

developing particularly rapidly.

• Marketers should consider leveraging the trend of video and instant

messaging to provide content and channels for the on the go

consumer.

In conclusion…

Thank You!

The research was conducted by:

Meital Yachin

Schieber Research | Market Research & Competitive Intelligence

www.researchci.com | hamutal@researchci.com

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