Mobile Trends & Innovations

Meital Yachin | December, 2017

• Mobile is the beating heart of almost any activity today. Content

consumption, social correspondence and commerce, are

increasingly taking place on mobile devices.

• The report examines where, when, how, what, and why global

users use mobile today – and what marketers are doing to respond

to this behavior.

Introduction

• Mobile is becoming the key device throughout the omni-channel path to purchase.

Consumer Trends:Path to purchase decision making

Awareness/ Research & Consideration• Location Based offers

• VR / AR

• Reviews

• Video

Purchase• Mobile wallet/ Payment apps

• Service, chats, bots

• Voice search

• Virtual assistants

Loyalty & CRM• Instant messaging

• Gamification

• Clubs & coupons

• Data analysis

• According to Think With Google, consumers are looking for

immediate solutions “right here, right now” and mobile is

becoming more relevant than ever as a result.

• Mobile helps people make decisions. According to Google,

mobile searches for “best” have grown 80% in the past

two years.

• Convenient, seamless experiences and instant

experiences continue to be top priority.

Consumer Trends:Path to purchase decision making

• Google’s “Consumer Barometer” found that 35% of US consumers go online via

smartphone, rather than computers / tablet; 33% go online equally via smartphone and

computer/tablet and only 21% prefer to use the computer/tablet over the smartphone.

• Globally, GSMA data (April, 2017) found that in 2016, 65% of the world’s population

had a mobile subscription – a total of 4.8 billion unique mobile subscribers. By 2020,

almost 860 million new subscribers will be added, taking the global penetration rate to

73%.

Market Trends: Why mobile is more Important than ever

Market Trends: Mobile Penetration by Region

Number of mobile (cellular) subscriptions worldwide from 1993 to 2017

(in millions)

Source: ITU (Statista): Worldwide; 1993 to 2017

34 56 91 145 215 318492

740962

1,1591,418

1,765

2,205

2,745

3,368

4,030

4,640

5,290

5,890

6,261

6,661

6,9967,184

7,5117,740

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

'93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17*

Mobile

subscrip

tio

ns in

mill

ions

• Global mobile social network penetration rate as of January 2017, by region

Market Trends: Mobile Social Penetration by Region

Statista, Source: We Are Social; Tencent; Facebook; Vkontakte; Wikipedia; IAB Singapore: Worldwide; January 2017

58%

57%

52%

47%

46%

45%

42%

34%

34%

34%

13%

12%

4%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

North America

East Asia

South America

West Europe

Central America

Oceania

Southeast Asia

East Europe

Global Average

Middle East

South Asia

Africa

Central Asia

Penetration rate

Market Trends:Instant Messaging Platforms

Source: ITU (Statista): Worldwide; 1993 to 2017

• Messaging app are evolving into marketing and a commerce platforms.

• The rapid growth in the use of messaging platforms continue with the growth of

mobile penetration. According to GSMA report from 2017, the total user base stood

at ~ 3.6 billion at the end of 2016, suggesting that the majority of the just under 5

billion mobile subscribers across the world are using messaging apps.

• WhatsApp (owned by Facebook today) was the first messaging platform to reach 1

billion users, subsequently followed by Facebook Messenger.

1,000

1,000

877

846

300

300

249

217

100

100

49

0 500 1000 1500

WhatsApp

Facebook Messenger

QQ Mobile

WeChat

Skype*

Snapchat**

Viber*

LINE

BlackBerry Messenger (BBM)

Telegram

Kakaotalk

Most popular global mobile messages apps as of January 2017, based on number of monthly active users (in millions)

1.58

1.82

2.01

2.182.34

2.48

0

0.5

1

1.5

2

2.5

3

2016 2017 2018* 2019* 2020* 2021

Num

ber

of users

in

bill

ions

Number of mobile phone messaging app users

worldwide from 2016 to 2021 (in billions)

Market Trends:Instant Messaging Platforms

• Text is the preferred communication

method in the US, with 50% of internet

users prefer to communicate via text

messages. Voice comes next, with 37%.

Younger consumers are especially fond

of messaging apps.

• Today, messaging platforms allow users to

communicate also through voice call, voice

messages and video calls, providing the

customers an “all in one” platform and

thereby reaching as many users as possible.

Mobile communication preference of internet users in the

United States as of August 2017

50%

37%

4%

8%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Text Voice Video Don't know/noopinion

Share

of

respondents

Mobile communication preference of internet users in the United States as of August 2017, by age group

26%

62%

3%

9%

40%

52%

3%

6%

54%

34%

3%

9%

62%

27%

5%

6%

61%

20%

7%

12%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

Text

Voice

Video

Don't know/no opinion

Share of respondents

65+ 55-64 45-54 30-44 18-29

Source: Morning Consult, 2017

• Facebook’s Messenger is evolving into a

group collaboration platform, helping users

share plans and programs.

• According to Facebook, “We think of

Messenger as being like the new social

living room for the world, where people can

hang out, share, chat, play games or buy

things, while still being able to reach nearly

everyone, wherever they are. We now

think we are combining two tools of the

past — the telephone directory (the way

we used to find people) with the Yellow

Pages (the way we used to find

businesses).”

• “Messenger Broadcast” is a new self-serve

mass-messaging interface that lets

businesses send marketing messages to

users. Facebook confirmed to TechCrunch

that it’s testing the feature internally, but

hadn’t trialed it to the public or with

businesses as of late last month.

Market Trends:Instant Messaging Platforms

• “With the help of M, people

will be able to send stickers,

share their location, make a

plan, start a poll (in group

conversations), save content,

wish people a happy birthday

and initiate voice and video

calls.”

Market Trends:Instant Messaging Platforms

• In December 2017, Facebook started rolling out a preview of Messenger Kids in the

USA, a new app that “makes it easier for kids to safely video chat and message with

family and friends when they can’t be together in person”. According to Facebook,

“after talking to thousands of parents, associations like National PTA, and parenting

experts in the US, we found that there’s a need for a messaging app that lets kids

connect with people they love but also has the level of control parents want.”

• In addition to video chat, kids can send photos, videos or text messages to their parent-

approved friends and adult relatives, who will receive the messages via their regular

Messenger app.

Market Trends:Instant Messaging Platforms

• In March, Instagram rolled out an expanded shopping experience, focusing mostly on

apparel, jewelry and beauty products, based on the fact that 80% of its users follow a

business account on the network. The platform started on Novemeber, 2016.

• Retailers, including Kate Spade, JackThreads and Warby Parker, share posts that have

more depth, making it easier for Instagrammers to review, learn about and consider the

items that interest them. Each post has a “tap to view” icon at the bottom left of a photo.

When tapped, a tag appears on various products in the post—showcasing up to five

products and their prices. Once a tag is selected a new detailed view of the product

opens.

• As a result of the growth in text as a preferred communication method, more services

and industries are undergoing changes.

Market Trends:Instant Messaging Platforms

Talkspace is an online therapy platform that

allows customers to get a psychological

therapy through text messages.

"With Talkspace, you can send a therapist text

messages, audio messages, as well as picture

and video messages in a private, text-based chat

room. Talkspace stands out because of the

affordability, anonymity and convenience it

provides”.

• A collaboration between Facebook Messenger

and OpenTable allows costumers to make

reservations at more than 40,000 restaurants

worldwide through Messenger.

• “We hope this service helps diners more easily

collaborate on dining plans by sharing restaurant

suggestions and coordinating a reservation all in

one place” (OpenTable).

• A collaboration between

Messenger and Uniqlo

offers consumers a

convenient and fun way to

shop with Facebook

Messenger.

• “Uniqlo IQ” - IQ is Uniqlo's

smart new chatbot, allows

consumer to chat with a

sales person and complete

the purchase via the app.

Market Trends:Instant Messaging Platforms - Chatbots

Market Trends:Instant Messaging Platforms - Chatbots

• Louis Vuitton has launched a chatbot on Facebook

Messenger that advises shoppers on products, aiming

to provide meaningful feedback during the busy holiday

period.

• The bot is powered by mode.AI, which has also

previously partnered with the likes of Levi’s with its

artificial intelligence, visual search and machine

learning technology.

Market Trends: Mobile Commerce

41.7156.67

80.94

115.92

156.43

206.53

267.26

335.84

0

50

100

150

200

250

300

350

400

2013 2014 2015 2016 2017* 2018* 2019* 2020*

Revenue in

bill

ion U

.S. dolla

rs

• US mobile retail sales were expected

to reach $ 156.43bn in 2017,

according to eMarketer.

• The company expects mobile

commerce to constitute over half of e-

commerce sales by 2021, with $

335.84bn.

• According to Google, shoppers are

researching on mobile to determine

which stores they should visit to get

what they need, more than ever.U.S. mobile retail commerce sales as percentage of

retail e-commerce sales from 2017 to 2021

34.5%

39.6%

44.7%

49.2%

53.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

2017 2018* 2019* 2020* 2021*

Share

of

e-c

om

merc

e s

ale

s

Source: eMarketer

Mobile retail e-commerce sales in the United States

from 2013 to 2020 (in billion U.S. dollars)

Market Trends: Mobile Commerce

The number 1 reason for mobile shopping is convenience.

IAB; On Device Research, Worldwide; July 22 to August 17, 2016; 18 years and older; 3,800; mobile

users who have purchased a product or service on mobile in the past 6 months

49%

46%

34%

26%

23%

20%

18%

11%

10%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

It was convenient

To save time

To get the best price possible/to save money

Couldn't find it in store

To get something immediately/didn't want to wait

For entertainment

It's safer than carrying cash

It's the only way for me to purchase items online

Advertising prompted me

Share of respondents

Reasons for mobile shoppers to purchase products via smartphone or tablet as of

August 2016

Market Trends: Mobile Commerce

A ComScore survey found that the

most popular feature of a retailer’s

app is mobile coupons. Other

important factors are high-quality

product images and product

reviews.

Retailers are increasingly launching their own

combined loyalty and payment apps.

In the US, Target launched its own mobile

payments, called “Wallet”, in the Target app.

Wallet combines digital savings—Cartwheel

offers and Weekly Ad coupons—with the 5

percent REDcard discount. And, coming soon,

guests also will be able to store and redeem

Target GiftCards with Wallet. According to the

company, “Wallet in the Target app makes

checkout easier and faster than ever.”

50%50%49%48%47%44%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Mobile couponsHigh-qualityproduct images

Productreviews

Product searchwith relevant

results

Access toloyalty

points/status

Ability to checkstore inventory

Sh

are

of

resp

on

den

ts

Most popular features of retail brand apps according to

digital shoppers in the United States as of February 2017

comScore; UPS; United States; January 10 to February 28,

2017; 5,189

Market Trends: Mobile Commerce

63%

51%

40%

37%

36%

35%

25%

20%

17%

11%

9%

1%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

Online stores (Amazon, Wal-mart, etc.)

Coffee shop (Starbucks, Dunkin` Donuts, etc.)

Fast food restaurant (Chik-fil-a, McDonald`s,…

Grocery store/supermarket

Car service/Taxi (Uber, Lyft, etc.)

Entertainment (music, movies, etc.)

Gas (Exxon Mobil, Speedway, etc.)

Games (Clash of Clans, Mobile Strike, etc.)

Speciality retail store (Best Buy, Office…

Transportation (mass transit, parking fees,…

Car sharing services (Zipcar, Car2go,…

Other, please specify

Share of respondents

Vantiv; Socratic Technologies; United States; June 2017; 25 years and older; 169 Respondents; used mobile phone to

make purchases

Which types of apps did you use in the past 3 months

to pay for goods or services through your mobile

phone?

Retailer apps are important for payment, loyalty – and data. Mobile wallet is on the

rise, with Apple Pay and PayPal on top.

Which mobile wallets have you used to pay at

checkout with your mobile phone in the past 3

months?

40%

40%

28%

24%

11%

11%

10%

10%

7%

3%

2%

2%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0%

Apple Pay

PayPal (using it in the store & notthrough the internet)

Starbucks app

Android Pay

Walmart Pay

Chase Pay

Samsung Pay

Visa payWave

Masterpass by Mastercard*

Wells Fargo Wallet

Microsoft Wallet

Another mobile wallet, please specify

Share of respondents

Market Trends:Apps vs. browsers

• US mobile shoppers prefer mobile

websites over mobile apps across all age

groups; however, most consumers don’t

have a preference.

• For younger consumers (18 to 24 years

old), the website option is relatively more

popular.

• However, in reality, 92% of time spent in

mobile is through apps, led by Facebook.

Where do you prefer to purchase from when using a mobile phone or tablet?

Mapp Digital: United States; August 2016; 18 to 64 years; 1,765]

0.0%

50.0%

100.0%

150.0%

200.0%

250.0%

300.0%

350.0%

Mobile website Mobile app No preference

Share

of

respondents

Total 18-24 years 25-34 years 35-44 years 45-54 years 55-64 years

Market Trends:Apps vs. browsers

23%

8%

10%9%

8%

6%

21%

16%

22%

12%

10%

12%

6% 6%

19%

15%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Zeroapps

1 app 2 apps 3 apps 4 apps 5 apps 6-10apps

11+apps

Sh

are

of re

sp

on

de

nts

April 2016 April 2017

How many mobile retail apps do you currently

have on your smartphone?

comScore, United States; April 2016 and 2018; 18

years and older

• Retailers are increasingly offering apps to

maintain a foothold on the consumers’

mobile. 51% of US shoppers in a Fluent/

eMarketer survey (Jan. 2017) said they make

the majority of their mobile purchases

through apps, while 49% said they do so on

mobile websites.74.15

33.68

27.77

24.65

22.05

19.3

13.32

13.17

11.57

8.12

8.08

7.1

5.73

5.61

5.29

0 20 40 60 80

Amazon

Walmart

Groupon

eBay

shopkick

Checkout 51

Wish

letgo

Walgreens

Kroger

OfferUp

Target

Ebates Cash Back &…

Flipp by Flipp Corp

Domino's Pizza USA

Million unique visitors

Most popular mobile shopping apps in

the United States as of July 2017, by

monthly users (in millions)

Verto Analytics ,United States; July

2017; 18 years and older

• According to eMarketer, the US wearables market is developing less than expected, with

just 24.7% change between 2015 and 2016, reaching 15.8% of population.

• eMarketer attributes the findings particularity to smart watches, which have “failed to

impress consumers”.

Device Trends: The wearable debate

• Fitness and health are still the stars of the

consumer wearable market; and according to

Tractica, they will shift from general wellness

to medical connectivity – diagnosis and care.

• The CES 2017 show demonstrated interesting wearable tech innovations. These

technologies demonstrated the way health technologies can improve lives.

Smart watch against sleep

apnoea. The watch can

recognizing the problem and

normalizing sleep. It improves

sleeping quality via a

personalized artificial intelligence

that learns about the user.

Monitoring temperature easily

TempTraq offers a patch-like

smart device, that monitors

temperature, records, and

sends temperature data to

mobile devices so caregivers

can track.

Smart glasses for the

visually impaired

Device Trends: Health and wellness wearables

Usage Trends: Voice search

• With the vast improvement in the quality of

digital voice assistant like Siri, we can see

users starting to prefer voice search.

• According to Survey made by Fivesight

Research, 13% of iOS respondents use

Siri as a primary search engine.

• Another finding is that 72% of all

respondents (Android and iOS) reported

they used virtual personal assistant in their

smartphone.

• According to Think With Google, in the

Google app, 20% of searches are now by

voice. Google is making it easier to use

voice search through its apps.

• In 2017, Starbucks launched voice ordering capabilities combining the Starbucks

mobile iOS app and the Amazon Alexa platform.

• The Starbucks Reorder Skill Amazon Alexa platform allows customers to order from

Starbucks by using their voice.

• Customers simply need to say “Alexa, order my Starbucks,” giving them the ability to

order their usual items from their store wherever they have an Alexa device.

Usage Trends: Voice search

Watch Video

• Mobile video’s role is increasing

in the path to purchase.

• A 35% increase in viewing on

mobile devices (smartphones

and tablets) to 28.8 minutes a

day, while viewing on fixed

devices (desktop PCs, laptops

and smart TVs) will rise by just

2% to 18.6 minutes a day

(Zenith)

Global mobile video traffic from 2016 to 2021 (in

terabytes per month)

Source: Cisco Systems, 2016

4,375,0007,225,123

11,415,329

17,564,661

26,067,686

38,148,326

0

5000000

10000000

15000000

20000000

25000000

30000000

35000000

40000000

45000000

2016 2017* 2018* 2019* 2020 2021*

Tra

ffic

in

TB

per

month

Usage Trends: Mobile video

• After Snapchat, Instagram, Skype, Facebook and Messenger,

YouTube is adding Stories. The new feature is called “Reels.”

The launch of the Reels beta was mentioned briefly in an

announcement today about the expansion of YouTube

Community tab to all creators with over 10,000 subscribers.

• The company told TechCrunch that Reels is intended to

introduce a new video format on YouTube that lets creators

express themselves and engage fans without having to post a

full video.

• According to LMBA (Location

Based Marketing Association),

Mobile Location-Based marketing

creates deeper and personal

relationships with customers.

• A survey by LMBA found that 25%

of the marketing budgets are spent

on location based marketing and

“more than 50% of companies say

they use LBM to target customers,

and that number is predicted to

increase significantly in 2017.”

• “Wi-Fi/GPS on smartphones are

the most commonly used LBM

technology because it's the easiest

way to gather accurate data”.

Marketing Trends: Location based ads

• Location-Targeted mobile ad spend is forecasted to

reach $ 32bn in 2021, compared to $ 12.4 bn in

2016, per BIA/Kelsey Industry watch.

• This growth translates to 38% of overall mobile ad

revenues in 2016, growing to 45% by 2021.

• Services include: Banner Display/Pop ups; Video;

Search Result; E-mail and Message; Social Media

Content; and Voice Calling

In conclusion…

• Convenience and seamless experiences continue to be in the heart of the

mobile experience.

• Communication, socializing, content consumption and commerce, have all

shifted into the mobile arena.

• “Mobile first” is more important than ever: when designing mobile experience,

we must take into account the special features of the mobile device – such as

the camera – and the immediacy of the usage behavior.

• Proximity, personalization and loyalty are the three key themes for

mobile in 2018.

Thank You!

The research was conducted by:

Meital Yachin

Schieber Research | Market Research & Competitive Intelligence

www.researchci.com | hamutal@researchci.com

More articles and researches on Carmelon Digital

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