Mobile Shopping Framework Study 2010

Mobile FrameworkHow consumer internet and shopping

behavior will shape the mobile space

November 2010

2Yahoo! Presentation, Confidential

Why?

Yahoo!, in partnership with Nielsen, wanted to create a framework around Mobile Internet Category Users and behaviors

Measurement: Use quantitative means to benchmark and measure mobile behaviors and attitudes in general and by category over time

Categories: Better understand the behaviors of Mobile Internet Category Users both in general and across a set of 12 product/advertising categories

Comparison: How category/shopping attitudes and usage differ among those accessing on the mobile platform versus those accessing only a PC

Shopping: Current and future lower and upper funnel shopping mobile penetration

Mobile Activities: Shopping outcomes tried, successful (or not), and interested in. Actions taken as a result of those shopping outcomes. What sources were used? And, how much time do they spend doing research, etc.

Mobile Attitudes and Experience: Attitudes overall and experience while looking up category level information (i.e. impulsiveness, boredom, active shopping, etc.)

Mobile Advertising: Stated category recall, attitudes, and preferences

How?


WHO 8,384 respondents ages 13-645,313 were Mobile Internet Category Users:

• Own a mobile device with access the Internet • Access information related to at least one of 12 product categories

3,071 were PC Internet Category Users:• Own a desktop/laptop/tablet PC with Internet access • Access information related to at least one of 12 product categories• PC Internet shoppers could not access any category information on

a mobile device but could still own a mobile phone

HOW 25-minute-online-survey

WHEN June 2010

DIG CON ENT DINE C ELEC FIN TRAV APPARL HEALTH FOOD/ BEV BEAUTY HOME AUTO

Mobile Base 937 678 663 451 570 370 370 272 282 283 227 210PC Base NA 454 320 313 293 224 258 264 251 234 223 237

4

What are we covering?

Sizing the Mobile Category Market

Mobile Consumption Basics

Mobile Category Activities

Understanding the Core Principles that Impact Mobile Category Usage

How Mobile Category Information Impacts Purchase

Understanding more about Mobile Advertising



What we learned What it means

Mobile is still very much seen as a secondary platform for shopping. However, mobile and non-mobile users alike say they are interested in accessing more mobile

shopping information in the next 12 months.

There is a tremendous opportunity for retailers and advertisers to help transform mobile into a full-fledged shopping platform.

More advanced shopping activities—including scanning barcodes, managing a shopping cart, purchasing gift

cards, and making purchases have high failure rates but also have high interest rates (by about a half or more).

There seems to be significant latent demand for mobile couponing and the incorporation of barcode scanning and other key mobile shopping activities pressing the need for better services on mobile devices (to encourage usage and acceptance).

Mobile shoppers are highly engaged with advertising—one out of five mobile shoppers who have seen

advertising say they always look at it. However, mobile advertising opportunities tend to be more unsuccessful.

The small screen lends itself to more noticeable advertising, but formats need to become more sophisticated. This also suggests the need for partners that are more sophisticated and experienced in mobile.

Nearly one in three mobile shoppers who have tried to respond to an ad have not had success,

It is of utmost importance that, regardless of content or format, ads be as easy as possible for users to interact with.

Along with being the least likely to see and react to related advertising, financial, dining, and digital content

shoppers also have lower agreement with most advertising-related statements.

These high incidence categories have somewhat normalized their advertising behavior. Lower incidence categories have more engaged users.

The vast majority of Internet mobile users also watch TV at the same time.

There are substantial cross-promotional opportunities to reach mobile internet users.

Where do we go from here?

What we learned What it means

Mobile’s value is less dependent on consumer involvement within the category (whether it is cheap or

cared a lot about) than on the need and impulse to make the purchase—especially when not near a PC.

It doesn’t matter how expensive or how important the product is - advertising can showcase both small and big-ticket items.

Those who use popular categories are more likely to just use those categories while those who are niche users

tend to use a variety.

These niche mobile Internet users are the early adopters of this behavior and it is important that we better understand their profile.

Smaller categories have the highest percentage of users saying they plan to do the same/more upper to lower funnel activities on their mobile device in the next 12

months.

It’s not just about digital content, dining and entertainment. Lower incidence categories provide the greatest opportunity for portals and developers to maximize.

Healthcare, home improvement, and auto have the lowest mobile usage relative to PC usage.

These are the categories that are currently relatively underserved, and provide the greatest opportunity to content developers.

Mobile application usage is highest in categories that are mature purchasing engines on the PC (entertainment,

financial, and digital content).

If this pattern holds true, clothing and electronics could be the next successful mobile categories.

More than half of category research lasts a day or less on a mobile device. Auto and home improvement have the

longest research times, and dining the shortest (with 68% of those users making decisions same day).

Mobile could shorten the research and purchase process compared to PC. This could typically turn a longer research process on the PC to more impulse.


Where do we go from here?

Sizing the Mobile Category Market

8

Only a third of data mobile phone users have seen advertising on their devices

Yahoo! Presentation, Confidential

Sizing the Category According to Nielsen Mobile Advertising Report

56.3

106.3

65.3Non-data users

Data users not exposed to adver-tising

Data users ex-posed to advertis-ing 35%

Saw a mobile phone ad

228MMobile Phone

Users

Source: Nielsen Mobile Advertising Report, March 2010 | Mobile Data Users (n=31,409)

9

23%

21%

21%

19%

17%

16%

15%

14%

12%

12%

12%

10%

Mobile PC

Digital content for a mobile phone 38M 46M

Restaurants/dining 34M 85M

Entertainment items and content 34M 97M

Financial services 31M 95M

Consumer electronics and technology 28M 93M

Personal or vacation travel 26M 85M

Clothing apparel and fashion accessories 25M 92M

Healthcare or medical related 23M 93M

Packaged food and beverage 20M 74M

Beauty and personal care 20M 70M

Home improvement 20M 83M

Automobiles or automobile parts or accessories 16M 67M

Although mobile category info seeking is just starting, the scale and potential are large


Sizing the Category

How often do you use your Internet-enabled mobile device/computer to access any shopping-related information for the following types of products and services (which can include using your device to research products/services, look up information/reviews/ articles, notice or click on advertising, or make a purchase)? “Ever Access.”Base=Total online population. Category sizes based on incidences from Mobile Ad Framework survey and total US online population (13-64) of 164 Million. Source=Nielsen NetRatings.

10

There is room for even greater growth in the future of mobile category developmentFuture: I am interested in using mobile internet to look up…

Now let’s think about the next 12 months. Regardless of whether or not you do this now please tell us how interested you are in using an Internet-enabled mobile device to access any shopping-related information for the following types of products and services (which can include using your device to browse, research products/services, look up information/reviews/articles, notice or click on advertising, or make a purchase)? “Extremely/very/somewhat interested.”Base=Mobile/PC Internet shoppers.Yahoo! Presentation, Confidential

Entertainment items and content

Restaurants/Dining

Digital content for my mobile phone

Consumer electronics and technology

Personal or vacation travel

Financial services

Clothing, apparel and fashion accessories

Healthcare or medical

Packaged food and beverage

Beauty and personal care

Home improvement

Automobiles or automobile parts or accessories

73%

73%

73%

66%

61%

58%

57%

48%

47%

46%

44%

41%

56%

54%

38%

50%

41%

42%

42%

39%

34%

30%

35%

32%

Mobile: Current Users

PC: Non-Mobile Internet users

11

Category Overlap

Those who shop in niche categories are likely to be shoppers in nearly every other category


Category Incidence 23% 21% 21% 19% 17% 16% 15% 14% 12% 12% 12% 10%Digital Content -- 76% 68% 74% 81% 78% 86% 85% 90% 90% 90% 90%

Entertainment 58% -- 64% 65% 84% 77% 86% 84% 92% 90% 92% 94%

Dining 53% 62% -- 66% 71% 88% 88% 89% 94% 87% 94% 91%

Financial 40% 46% 51% -- 61% 68% 70% 74% 79% 75% 83% 77%

Electronics 44% 51% 49% 52% -- 68% 79% 80% 88% 85% 90% 89%

Travel 35% 40% 52% 50% 54% -- 65% 73% 80% 72% 85% 85%

Clothing 31% 43% 36% 43% 60% 55% -- 77% 79% 92% 81% 76%

Health 28% 34% 38% 39% 51% 50% 60% -- 74% 72% 77% 76%

Food/ Bev 26% 31% 34% 40% 47% 47% 61% 67% -- 76% 75% 69%

Beauty 26% 31% 27% 36% 48% 47% 62% 68% 72% -- 70% 71%

Home Improvement 23% 27% 32% 37% 47% 48% 54% 63% 68% 69% -- 71%

Auto 23% 26% 32% 33% 40% 47% 53% 56% 64% 61% 74% --

At/above average Below average

How often do you use your Internet-enabled mobile device/computer to access any shopping-related information for the following types of products and services (which can include using your device to research products/services, look up information/reviews/ articles, notice or click on advertising, or make a purchase)? “Ever Access.”Incidence Base=Total online population. Cross-tab base: Mobile Internet Users within that Category.


Mobile internet users skew younger, non-white, higher income & educated, rural and suburban and are less likely to own a PC

Mobile Internet User

PCInternet User

Male 51% 47%Female 49% 53%13-24 (Net) 28% 20%25-34 (Net) 27% 19%35-44 (Net) 21% 19%45-54 (Net) 15% 23%55-64 (Net) 9% 19%MEAN AGE 34.52 39.71

White 76% 82%Yes, of Hispanic origin 13% 7%Black or African-Am 11% 9%

Average Income (Thousands) 78.09K 55.37K

Yes, Children 42% 33%

Urban 30% 23%Suburban 55% 49%Rural 15% 28%

College or more 51% 39%Some college 30% 35%High school 12% 17%

Mobile Internet User

PCInternet User

RIM BlackBerry 25% 16%Apple/iPhone 22% 2%Samsung 14% 24%LG 9% 23%Motorola 9% 15%HTC 7% 4%

AT&T 34% 22%Verizon Wireless 25% 33%Sprint/Nextel (Net) 17% 19%T-Mobile 12% 9%

DEVICE OWNERSHIP:PC/Laptop computer 79% 100%Smart/Feature Phone (Net) 94% 49%

Smartphone/PDA 64% 10%Advanced features 43% 40%

MP3/portable media player 61% 48%Handheld gaming device 32% 21%Basic mobile phone 15% 45%Tablet PC 6% 1%

Demographics of high incidence categories also differ compared to PC users within that category


More female About the same as PC More male More female More male

More likely younger Same average age More likely younger More likely younger More likely younger

More likely non-white More likely non-white More likely non-white More likely non-white More likely non-white

Higher income Higher income Higher income Higher income Higher income

More likely Parents More likely Parents More likely Parents More likely Parents More likely Parents

More likely Married More likely Married More likely Single More likely Married and Single More likely Single

More likely to have graduated college or

more


more


more


more


more

More likely to be AT&T subscriber





13

Demographics – Mobile has more … vs. PC (Within category)

And, demographics of low incidence incidence categories differ compared to PC category users


More likely male More likely male More likely male More likely male More likely female More likely male

More likely younger More likely younger More likely younger More likely younger More likely younger More likely younger

More likely non-white More likely non-white More likely non-white More likely non-white More likely non-white More likely non-white

Higher income Higher income Higher income Higher income Higher income Higher income

More likely Parents More likely Parents More likely Parents More likely Parents More likely Parents More likely Parents

More likely Single More likely Single More likely Married More likely Single More likely Single More likely Single

About the same have completed college or

more


more


more


more


more


more







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Demographics – Mobile vs. PC (Within category)

Mobile Attitudes & Consumption Basics


Mobile is critical in daily life but many say mobile Internet could be betterI agree with the following…

Please indicate how much you agree or disagree with each of the following statements. “Agree.” Base=Mobile Internet Users 16

I like being able to use the Internet on my mobile device, but it could be better

My cell phone is critical in my daily life

I can browse the Internet whenever I want thanks to my mobile device

I browse the Internet more often because I can use my mobile device

69%

68%

66%

46%


Mobile also complements PC usage and enhances the internet experienceI agree with the following…

Please indicate how much you agree or disagree with each of the following statements. “Agree.” Base=Mobile Internet Users 17

I sometimes visit a site on my mobile device and follow-up on my PC

I sometimes visit a site on my PC and follow-up on my mobile device

Mobile Internet is more convenient than home connections

I visit different sites on my mobile device than I do on my PC

Mobile technology is more exciting than PCs

Browsing the Internet on my phone is as easy as on my PC

59%

34%

30%

29%

28%

26%

18

Usage is high throughout the day – with peaks starting after lunchMobile Internet Usage by Time of Day


6 to 9am 9 to 12pm 12 to 4pm 4 to 6pm 6 to 8pm 8 to 11pm 11 to 1am 1 to 6am

43%58%

66%71% 71%

64%

29%

17%

26%

58%

70% 69% 70%65%

40%

23%

WeekdaysWeekends

18

What times of the day do you typically use the Internet or web-enabled Internet applications on your mobile device? Base=Mobile Internet Users.

19

Usage is both in and out of home – with 2 in 5 using in the bathroomMobile Internet Usage Locations - Access Frequently/Occasionally


Please think about when you are in the following locations. When you are in each location below, how often do you access the Internet on the mobile device you use most often? “Frequently/occasionally.” Base=Mobile Internet Users.

At a hotel At school

At work

At a restaurant/café/bar At a social gathering/function

At a concert In a movie theater

In the car On a subway/train/bus

Outdoors Waiting on a line

In a store At a mall

At home At the dinner table in my home

In my bedroom In my living room

Watching TVIn a bathroom

63%46%

66%

65%58%

29%29%

66%49%

69%67%

63%58%

84%36%

68%75%

71%41%

Out 93%• On the go 89%• Retail 71%

Home 89%

19


Mobile Internet allows for usage about the same as PC or more across a variety of locationsMobile/PC Usage Locations - Access Frequently/Occasionally

Please think about when you are in the following locations. When you are in each location below, how often do you access the Internet on the mobile device/PC or Laptop you use most often? “Frequently/occasionally.” Base=Mobile Internet or PC Users.

71%75%

66% 68%63%

46%

36%41%

74%66%

52% 49%

32%28%

17%

5%

MOBILE PC

20

21

Mobile PC or Laptop

35%51%

36%20%

16% 22%

13% 7%

NeverRarelyOccasionallyFrequently

The majority of mobile users access mobile Internet while watching TVAccess Internet while watching TV


Please think about when you are in the following locations. When you are in each location below, how often do you access the Internet on the mobile device/PC Laptop you use most often? “Frequently/occasionally.” Base=Mobile Internet /PC Users.


1 in 5 search for more information related to the commercials they saw Content they are browsing while watching TV

What are you typically doing while you are on your mobile device while watching TV? Base=Mobile Internet and PC users who use it while watching TV.

Communicating with a friend or family member via texting

Updating/reading social networking sites

Browsing content on the internet not related to what I’m watching

Communicating with friend/family member via email

Using mobile applications

Browsing content on the internet related to what I’m watching

Doing Internet searches/looking up information related to a commercial that I saw

Communicating with friend/family member via IM

56%

40%

37%

33%

33%

24%

23%

19%

53%

70%

49%

28%

32%

22%

NA

NA

Mobile PC

23

At a store At a mall

21%10%

41%

38%

23%

23%

15%29%

Never

Rarely

Occasionally

Frequently

9 in 10 have accessed the mobile web at a storeAccess Internet while at a store at the mall


Please think about when you are in the following locations. When you are in each location below, how often do you access the Internet on the mobile device you use most often? “Frequently/occasionally.” Base=Mobile Internet Users.

24

Communicate with a friend or family member via texting

Take and/or send a picture of a product/product details to a friend or family member

Communicate with a friend or family member via email

Communicate with a friend or family member via IM-ing

Help you shop or get information about a product/service

Use or request a coupon

Scan a barcode

Browse for content not related to what I was in the store/mall for

Play a game

70%

48%

44%

25%

38%

20%

15%

35%

24%


In-store usage is about communication and product information Mobile activities while at a store or mall

You mentioned that you use your Internet-enabled mobile device within a store or a mall. Do you ever use it in a store or mall to do the following? Base=Mobile Internet Category Users. who access it in a store or mall.

Shopping Activities49%

25

Digital content for my mobile phone

Financial services

Entertainment items and content

Restaurants/Dining

Consumer electronics and technology

Personal or vacation travel

Packaged food and beverage

Clothing apparel and fashion accessories

Healthcare or medical related

Beauty and personal care

Home improvement

Automobiles, parts or accessories

44%

33%

30%

27%

24%

22%

20%

18%

17%

17%

17%

16%

3 in 4 have downloaded mobile apps clearly showing an interest


What kinds of mobile applications are they using?

Now we’d like you to think about what specifically you currently do (or have done) for each of the following product categories using your computer or laptop. Please select all that apply for each. “Used an application on my mobile device.” Base=Mobile Internet Users.

75%Have Downloaded

An App

26

It’s something I’m interested in

It looks entertaining

I’m passionate about the content

Finding information when I need it

Finding information in my local area

Help me search for a product or service

User reviews

Help me throughout my shopping process

Professional reviews

It’s free

Recognizable and trusted brand

Recommendations from friends or family

75%

53%

49%

60%

52%

47%

44%

37%

36%

75%

54%

45%

PASSION

INFO & PURCHASE

OTHER

Purchase and passion drive usage and downloads of applicationsWhat’s important in your decision to download an app?

How important are each of the following in your decision to download an app to your internet enabled mobile device? “Extremely/very important.” Base=Mobile Internet Users who download apps.


Mobile Shopping Penetration

28

We asked mobile internet users about the categories they use…

Automobiles or automobile parts or accessories (such as repair info/tips, tires, tools, wheels, engines, brakes, etc.)

Beauty and personal care (such as shampoo, make-up, perfume, grooming, beauty tips, etc.)

Clothing apparel and fashion accessories (such as style tips, jeans, shirts, outerwear, kids clothing, jewelry, footwear, sizing info etc.)

Consumer electronics and technology (such as cell phones, digital cameras, computers, gaming consoles, GPS, etc.)

Entertainment items and content (such as DVDs, games, music, concert/movie tickets, TV shows/clips, etc.)

Financial services (such as banking, paying bills, financial calculators etc.)


Packaged food and beverage (such as groceries, snack items, recipes, cooking tips, etc.)

Healthcare or medical related (such as services, remedies, medication, healthy eating, etc.)

Personal or vacation travel (such as airline tickets, hotels, car rentals, etc.)

Restaurants/Dining (such as casual, fast food, bakery/café’s, fine dining or local restaurants in your area)

Home improvement (such as tips, designing-related, furnishings, accessories, repair items, indoor/ outdoor, garden, etc.)

Digital content for my mobile phone (ringtones, apps, music)

To keep up-to-date on news or deals

To help me make a final decision

To help me narrow down the selection

To help me learn more

To hear about or discover a product and service

44%

42%

43%

45%

35%

62%

71%

74%

78%

51%

PCMobile

29

Currently, the PC experience still offers a better experience through the funnel…Mobile & PC – In the Purchase Funnel – Net of all Categories

How useful is using your mobile device/PC to help you with each of the following aspects of your browsing or research process for <<CATEGORY>>? “Extremely/very helpful” summary.Base=Mobile/PC Internet shoppers.Yahoo! Presentation, Confidential

50-54% plan to do more or the same

on mobile in the next 12 months across

the funnel

Dig. Con. Ent. Dining Elect. Finance Travel Apparel Health Food/Bev Beauty Home Auto

To hear about or discover a product and

service34% 34% 32% 37% 26% 31% 38% 45% 36% 41% 40% 38%

To help me learn more 39% 44% 43% 52% 36% 44% 47% 53% 50% 50% 49% 54%

To help me narrow down the selection 35% 40% 46% 47% 32% 43% 46% 45% 55% 52% 52% 43%

To help me make a final decision 38% 38% 41% 46% 29% 43% 48% 48% 46% 47% 45% 49%

To keep up-to-date on news or deals 41% 42% 36% 47% 40% 44% 48% 52% 48% 49% 48% 47%

30

How useful is using the Internet or applications on your mobile device to help you with each of the following aspects of your browsing or research process for <<CATEGORY>>? Base=Mobile Internet Category Users.

…with great opportunities and strides needed in higher incidence categoriesMobile Usefulness in Purchase Funnel



To hear about or discover a product

and service46% 48% 45% 50% 47% 46% 40% 48% 53% 53% 50% 55%

To help me learn more 47% 48% 45% 52% 49% 46% 46% 47% 54% 56% 53% 57%

To help me narrow down the selection 47% 49% 47% 51% 52% 49% 49% 51% 55% 56% 59% 61%

To help me make a final decision 48% 49% 47% 48% 50% 47% 52% 51% 55% 57% 56% 57%

To keep up-to-date on news or deals 52% 52% 51% 57% 54% 53% 55% 58% 62% 61% 61% 66%

31

Over the next 12 months, which will you be using more to do each of the following for <<CATEGORY>> information/products/ services, a computer or an internet-enabled mobile device?Base=Mobile Internet Category Users.

Categories that have lower incidence also have the greatest ramp for future growthStated Future Use of Mobile in the Purchase Funnel (More or About the Same as PC)



32

56%

50%

45%

45%

41%

33%

23%


For researching, mobile is great for convenience, especially when not near a PCI agree with the following… – Net of all Categories

Regardless of whether or not you do this now, please tell us how much you agree or disagree with each of the following statements about researching <<CATEGORY>> purchases using a mobile device. “Agree.”Base=Mobile Internet Category Users.

Proximity to PC64%

Speed/Convenience65%

Mobile is good for doing research when I’m not near a computer or laptop

I only research purchases on a mobile device when I’m not near a computer

It’s good for researching unplanned purchases

Mobile is good for doing time-sensitive research

Mobile is good for researching impulsive purchases

I only research purchases on a mobile device when it’s faster than using a computer

It’s the most convenient way to research purchases

33


Proximity to PC 57% 66% 69% 68% 57% 69% 73% 67% 63% 61% 63% 61%

Speed & Convenience 55% 60% 66% 69% 58% 71% 74% 69% 67% 68% 68% 64%


For higher incidence categories it is about proximity, while lower is about convenience


I agree with the following…


34

31%

31%

27%

23%

30%

23%


A third think they will be doing more research because mobile enables themI agree with the following… – Net of all Categories


I do more research overall because I can use my mobile device

I think I’ll be researching more purchases on a mobile device in the future

It’s no different from researching a purchase on a computer

It’s the most convenient way to research purchases

It’s too difficult to do research

It doesn’t seem safe/secure to research


43% 45%

68%

33%41% 37% 40% 42% 42% 42%

29% 30%

26%32%

20%

41% 23% 36%38% 31% 27%

37%46% 42%

8%9%

6%

12%

13%

17% 8% 12% 15%9% 13% 14%

23%14%

6%14%

23%10% 14% 15% 16% 12% 12% 14%

Less than a day 1 day-1 week More than 1 week None

Typically, consumers spend less than a week using their phones to research

How much time did you spend researching <<CATEGORY>> information or products or services on your mobile device? Base=Mobile Internet category Users.

How much time did you spend researching?

19.3

13.8

17.6

25.1

17.6

31.6

26.0 25.6

19.7

24.425.8

28.5

Travel and auto have the longest average mobile research sessions, while dining has the shortest

36Yahoo! Confidential

On average, how much time did you spend on each session related to browsing or researching on your mobile device for <<CATEGORY>> information or products or services? Base=Mobile Internet category Users.

Length of Mobile Research Session – Mean in Minutes

37

3 in 5 use internet via PC to complement their mobile category research


Other sources used when looking up category info – Net of all Categories

What other sources besides using your mobile device did you typically use when browsing or researching <<CATEGORY>> information/products/services? Select all that apply. Base=Mobile Internet Category Users.

Internet using my PC/Laptop

Family, friends, or colleagues

TV

Magazines

In-store displays

Newspapers

Professional(s)

Salespeople

Informational brochures

Radio

Books

800 or toll-free number

59%

43%

26%

25%

21%

18%

15%

14%

13%

12%

10%

9%

38


Internet 53% 64% 60% 64% 51% 72% 62% 61% 54% 55% 56% 57%

Family or friends 36% 49% 54% 44% 31% 51% 44% 43% 40% 44% 40% 34%

TV 18% 39% 20% 35% 17% 23% 29% 26% 34% 29% 27% 23%

Magazines 15% 30% 17% 29% 16% 27% 44% 28% 31% 43% 27% 22%

In-store displays 16% 23% 9% 33% 10% 7% 42% 15% 39% 38% 37% 18%

Newspapers 9% 22% 21% 17% 19% 22% 18% 17% 26% 18% 20% 21%

Professional(s) 5% 8% 13% 16% 21% 17% 14% 40% 8% 25% 25% 23%

Salespeople 13% 13% 2% 23% 8% 6% 23% 11% 14% 22% 26% 26%

Brochures 7% 11% 10% 15% 14% 23% 9% 25% 14% 12% 20% 13%

Radio 7% 21% 12% 15% 8% 11% 8% 11% 14% 16% 8% 10%

Books 5% 10% 3% 11% 10% 17% 8% 20% 13% 11% 18% 11%

800 or toll-free number 7% 7% 5% 8% 12% 20% 5% 15% 10% 11% 11% 10%

What other sources besides using your mobile device did you typically use when browsing or researching <<CATEGORY>> information/products/services? Select all that apply. Base=Mobile/PC Internet Category Users.

Aside from their phones, the Internet and WOM are integrated into their search for category info



Other sources used when looking up category info

Internet using my PC/Laptop

Family, friends, or colleagues

TV

Magazines

In-store displays

Newspapers

Salespeople

Informational brochures

Radio

Books

800 or toll-free number

MEDIA

WORD-OF-MOUTH+INTERNET

TRADITIONALINFORMATION/IN-STORE

And rely on different and sensible sources of information

39What other sources besides using your mobile device did you typically use when browsing or researching <<CATEGORY>> information/products/services? Select all that apply. Base=Mobile/PC Internet shoppers.Yahoo! Presentation, Confidential

CORRESPONDENCE MAP*: Other sources used when looking up category info

*Interpretation Note:The closer the attribute

to the category the higher the association

or correlation.

Mobile Principles

41

Mobile Principles

LOCATION refers to the importance that consumers place on mobile ads which are relevant to their current location.

ASAP refers to wanting to finish what they were doing as quickly as possible.

GOAL ORIENATION refers to users knowing exactly what they were doing and actively shopping and looking up category information.

TAKING MY TIME refers to users taking their time to complete what they were done.

ATTENTIVENESS refers to users giving their full attention to the category information

PASSION refers to passion that they feel about the category information they were seeking.

BOREDOM refers to when consumers experience boredom when accessing this content.

ROUTINE refers to the general routine that they go about accessing this type of category information.

TRUST refers to the experience of accessing a trusted source on their mobile device. Safety and security means it’s currently lacking and important for that category.

42

Mobile Digital Content

Entertainment Dining

Electronics Financial

Travel Apparel

Health Food & Bev

Beauty Home

Improvement Auto

Understanding the principles can help tune advertising performance across categories


Table above is based on above average scores or correspondence analysis on each of the mobile principles.


Mobile experiences and mindset differs by category

Gave my full attention to the information that I accessed

Actively shopping/looking up info

Knew exactly what I needed to do and achieved it

Wanted to finish as quickly as possible

Took my time to complete what I was doing

Accessed Info as part of general routine

Exploring and no specific goal to accomplish

Accessed info because I was bored

I was using trusted site/app

Accessed info is a passion of mine

Correspondence Map*: Describes Mobile Experience With Category

Using the scale below, please tell us how well each statement describes your experience while you are using your mobile device for <<CATEGORY>> information or products or services. Base=Mobile Internet category Users.

PASSION

NO GOAL

BOREDOM

ACTIVE AND ATTTENTIVE



or correlation.

44

Mobile advertising needs to keep location and geography in context across categoriesMobile Location Based-Advertising


65% 69% 68% 67%62%

67%77%

64%

75% 78% 76%71%

27% 23%27% 27%

20%

35% 32%26%

35% 34%28%

34%

Mobile ads relevant to my current location (% Important) Mobile ads are helpful at finding geo-graphically relevant information (% Agree)

Using the scale below, please tell us how well each statement describes your experience while you are using your mobile device for <<CATEGORY>> information or products or services. Please tell us how important the following types of ad features are to you when it comes to <<CATEGORY>> advertising on your mobile device. “Extremely/very/somewhat important.” Base=Mobile Internet Category Users.

45

Actively Shopping/Looking up Information With a Goal

Goal orientation is strong for dining, apparel, CPG, and auto categories…

Using the scale below, please tell us how well each statement describes your experience while you are using your mobile device for <<CATEGORY>> information or products or services. Base=Mobile Internet category Users.


40%44%

48%

43%

38%

43%47% 46%

44%47%

43%

50%

26%

33%

44%41%

25%

39% 40%

34%

39% 40% 41% 41%

I knew exactly what I needed to do and I achieved itI was actively shopping/looking up category information

32% 33%

38% 39%36%

39% 39%41%

31%

34% 34%

42%

I gave my full attention to the category information I was accessing

46

Gave Full Attention

Attentiveness varies by category…

Using the scale below, please tell us how well each statement describes your experience while you are using your mobile device for <<CATEGORY>> information or products or services. Base=Mobile Internet Category Users. .


45%49%

55%

48%45% 47% 47% 48% 48% 48% 46% 45%

28%32%

29%

34%

28%

39%41%

32%30%

38% 37%40%

I wanted to finish what I was doing as quickly as possible

I took my time to complete what I was doing

47

The Element of Time

…which impacts the urgency consumers are willing to invest in info seeking



34%

30%

19%

30%

23%

33%

45%

29% 28%

38% 37%35%

37% 37%

18%

28%

14%

26%

35%

23%

30%

38%

26%

30%

I was just exploring and did not have a specific goal to accomplishI accessed category information because I was bored

48

Just Exploring and Bored

Consumers are willing to explore apparel, entertainment, food/bev, auto, and home



45%49% 48% 46%

39%

55% 55%

48%46% 44% 46%

49%

26% 26% 27%24%

20%

29% 28%

33%

28%23%

35%

22%

39% 39%

45%

40%

30%

43%

36%

43%

38% 37%

42%

27%

I was using a website or mobile application I trust (% Describes Experience) Mobile is safe/secure to make purchases (% Agree) Mobile is safe/secure to research (% Agree)

49

Trust & Safety and Security

Trust critical for travel & apparel and safety & security is vital for finance & auto



20% 21% 20%

30%

26%29% 30%

21% 22%

29%

22%

32%

16%19%

14%

30%

15%

20%

29%

18% 19%

28%

19%

26%

I accessed category information as part of my general routineAccessing category information is a passion of mine

50

Category Passion and Routine

…most notably because they are more categories of passion or routine for consumers



Mobile Internet Shopping Category Activities

52

Used search

Downloaded a ringtone

Downloaded an app

Downloaded a game

Downloaded music

Used search

Movie times

Look at pictures

Download music, TV schedules

Social sharing of content via

text

Restaurant locator

Menu look up

Used search

Decided where to eat

Connected with others via

email

Click to call

Used search

Store information

Product price comparison

Reviews

Request a coupon

Social shopping

Check balance

Pay bills

Used search engine

Click to call

Retailer information

Looked for Finance App

Used search

Weather

Travel destination information

Transportation

Compare prices

Deals and offers

Social traveling

Specific Tasks by Category – Tried & Successful


Earlier you said you’d accessed <<CATEGORY>> shopping information. What specifically did you do on your Internet-enabled mobile device, and what are you interested in doing? Base=Mobile Internet Category Users. Top Activities Listed outside of visiting a website with some responses netted together.

53

Used search

Got store information

Apparel pictures

Compare prices

Social shopping

a key

Used search

Researched symptoms &

causes

Looked for a doctor

Homeopathic remedies

Learned about medication

Used search


Recipes

Compare prices

NutritionalInformation

Click to call

Used search engine


Compare prices

Read reviews

Some social shopping


Used search engine

Comparison Shopped

Requested a coupon

Looked for a deal

Used search

Dealer information

Compare car prices

Safety information

Financing

Look up promotions

Specific Tasks by Category – Tried & Successful


Earlier you said you’d accessed <<CATEGORY>> shopping information. What specifically did you do on your Internet-enabled mobile device, and what are you interested in doing? Base=Mobile Internet Category Users. Top Activities Listed outside of visiting a website with some responses netted together.

Search engines, social networking, and general consumer portals are used most for category info


Search engines (e.g., Google, Yahoo, Bing etc.)

Social networking (e.g., MySpace, Facebook)

General consumer portals (e.g, Yahoo!, AOL, MSN, etc.)

General news (e.g., NY Times, CNN)

Stores/retailers (e.g., Walmart or Sears)

Online video (e.g., YouTube, Yahoo! Video)

Online-only retailers (e.g., Amazon.com)

Category retailer/stores

Category brand or manufacturer sites

Shopping comparison (e.g., Yahoo! Shopping, Google Checkout)

Category reviews

Category emails (e.g. sent daily, weekly, etc.) that I signed up for

Online auction (e.g., Ebay)

Coupon/discounts (e.g., couponcabin.com)

Category discussion boards/blogs

Weekly or Sunday circulars

Magazine (e.g., Real Simple, Cosmo)

Full-length TV programming online (e.g.,Hulu)

74%53%

51%45%

44%44%

42%41%

39%39%

35%33%32%

28%26%

23%23%23%

Mobile Websites/Applications Visited & Used– Net of all Categories

And which of the following online sources did you use or access on your mobile device when browsing consumer electronics/technology information/products/services? Please tell us if it was via the internet using your browser or an application installed on your mobile device. Base=Mobile Internet Category Users

Visited a website

Used a search engine


Compared products or services

Compared prices of products or services

Read professional reviews for products or services

Read user reviews

Looked at pictures of products/services

Created/managed a shopping cart or list

Looked for/purchased gift cards or certificates

Watched an online video

91%

86%

79%

67%

67%

61%

59%

58%

48%

47%

46%

96%

91%

85%

82%

83%

70%

65%

76%

48%

48%

50%

For those who tried or are interested we see mobile activities approaching similar rates to PC


Shopping Activities Tried or Interested in – Net of all Categories

Mobile PC

Earlier you said you’d accessed <<CATEGORY>> shopping information. What specifically did you do on your Internet-enabled mobile device,/PC or Laptop and what are you interested in doing? Base=Mobile Internet Category Users. Or PC Internet Users

Made a Purchase (Net)

Used or requested a coupon

Looked for deals, coupons, offers or promotions

Took and sent a picture of product /details to others

Communicated with someone about ___ via email

Communicated with someone about ___ via IMing

Interacted with ads w/in search results

Interacted with online ads

Interacted with video ads

Communicated with someone about ___ via texting

Click-to-call automatic routing

Looked for/downloaded apps to my mobile device

Scanned a barcode

62%

62%

61%

59%

57%

44%

44%

42%

40%

63%

60%

59%

60%

66%

74%

76%

34%

44%

24%

54%

46%

39%

… with social shopping, deal hunting, and advertising being a part of the mobile experience


Mobile PC

Shopping Activities Tried or Interested in – Net of all Categories


More advanced shopping mobile activities have high failure rates

Responded to/viewed/clicked on ___ video adsScanned a barcode

Looked for/purchased ___ gift cards or certificatesWatched an online video about ___ products/services

Created/managed a shopping cart or list for ___ products or services Communicated with someone about ___ via IMing

Responded to/viewed/clicked on ___ ads Responded to/viewed/clicked on ___ ads within mobile search results

Used or requested a coupon Made ___ purchases on my mobile phone

Looked for ___ deals, coupons, offers or promotionsLooked for/downloaded ___ apps to my mobile deviceRead professional reviews for ___ products or services

Read user reviewsCompared ___ products or services

Compared prices of ___ products or services“Click to call”

Communicated with someone about ___ via emailLooked at pictures of ___ related products/services

Took and sent a picture of ___ product/product details to a others Communicated with someone about ___ via texting

Got store informationUsed a search engine

Visited a website

37%34%

33%32%

31%31%31%

30%29%29%

26%25%

23%23%

22%21%21%21%

20%18%

16%13%

12%9%

Mobile Shopping Outcomes – Unsuccessful Activities (Among Those Tried)



Made a purchase offline/online/mobile (NET)

Used a search engine for more info

Looked online for more info

Posted a comment/updated social networking site

Told a friend, family member or colleague

Went to a retailer/store/distributor for more information

Called a toll-free or 800 number

Considered buying product/services

Entered a contest or sweepstakes

Used a coupon

Downloaded apps to my mobile device

Recommended product/service to someone else

Forwarded a link or video to others

Thought more favorably about a brand or product

Read or wrote on a blog

None of the above

43%36%

24%22%22%20%20%19%

17%15%15%15%14%13%12%

23%

67%61%

50%18%

33%33%

21%41%

39%36%

23%18%

28%14%

8%

Mobile elicits action from category users, though at a lower incidence than PC

Which of these actions have you ever taken as a result of browsing or researching <<CATEGORY>> information or products or services on your mobile device/PC or Laptop? Please select all that apply. Base=Mobile Internet Category Users or PC Internet Users. 58Yahoo! Presentation, Confidential

Actions Taken After Accessing Mobile Category Information

Mobile PC

Mobile Purchase Drivers


13%

38%

28%

21%

Never

Rarely

Occasionally

Frequently51%Frequently orOccasionally Buy After Research

When consumers use their phone to research, ½ the time they plan on making a purchaseAfter researching on mobile, I purchase product/service…(via any method)

When you are browsing or researching in general, how frequently would you say you do each of the following using your Internet-enabled mobile device? “Browse or research using my mobile device first and then purchase afterwards.” Base=Mobile Internet Users.


46%

42%

41%

34%

32%

27%

21%

Convenience drives mobile category purchasing, so does impulse buysMobile purchase drivers

Regardless of whether or not you do this now, please tell us how much you agree or disagree with each of the following statements about making <<CATEGORY>> purchases using a mobile device. “Agree.”Base=Mobile Internet Category Users.

Speed/Convenience59%

Mobile is good for making purchases when I’m not near a computer or laptop

I only make purchases on a mobile device when I’m not near a computer

Mobile is good for making time-sensitive purchases

It’s good for making unplanned purchases

Mobile is good for making impulsive purchases

I only make purchases on a mobile device when it’s faster than using a computer

It’s the most convenient way to make purchases

Proximity to a PC56%


36%

34%

28%

24%

18%

However, a key drawback to more mobile purchases is security and ease of use…Mobile purchase drivers


It doesn’t seem safe/secure to make purchases

It’s too difficult to make purchases

It’s no different from making a purchase on a computer

I think I’ll be making more purchases on a mobile device in the future

I make more purchases overall because I can use my mobile device



It doesn’t seem safe/secure to make purchases

37% 34% 37% 40% 35% 40% 37% 37% 31% 36% 30% 37%

It’s too difficult to make purchases 31% 34% 37% 34% 32% 38% 37% 36% 34% 28% 33% 31%

It’s no different from making a purchase on a computer

25% 28% 25% 29% 25% 27% 31% 33% 25% 34% 25% 35%

I think I’ll be making more purchases on a mobile device in the future

19% 24% 23% 22% 20% 33% 30% 25% 26% 28% 24% 33%

I make more purchases overall because I can use my mobile device

13% 19% 14% 19% 17% 23% 23% 22% 20% 28% 17% 24%

…however, many plan to make more future purchases in low incidence categories


Mobile purchase drivers


Understanding Mobile Advertising


Reaction to advertising

39%

61%

YesNo

Saw category advertising during shopping process

When you see <<CATEGRORY>> advertising on your mobile device/computer, which best describes your general reaction?Base=Mobile/PC Internet shoppers who have been exposed to advertising.

Less than half remember seeing category advertising, most will look at ads on their phones Advertising Recall

20%

66%

14%

I never look at it

I sometimes look at it

I always look at it


34%39%

34%

46%

26%

40%43% 42%

49% 50%

41%48%

Chart Title

Using the scale below, please tell us how well each statement describes your experience while you are using your mobile device for <<CATEGORY>> information or products or services. Base=Mobile Internet Category Users.

Digital Content

Entertain-ment

LocalDine

Consumer Electronics Finance Travel Apparel Health FOOD/

BEV Beauty Home Auto

84% 83% 77% 88% 91% 87% 87% 89% 89% 97% 91% 82%

Recall seeing advertising

Always/sometimes pay attention to advertising

Less than half of mobile category information seekers see ads pertinent to categories they seekAdvertising Recall by Category I Pay Attention


I’m ok with advertising if it means that I can access content for free

After I see an ad, I sometimes look for more information

Ads have become more interesting than they used to be

Ads are more helpful at finding geo-graphically relevant information

I am more likely to click on ads that incorporate multimedia elements

I am more likely to click on ads that are simple text ads

46%

30%

29%

28%

22%

22%

Consumers understand that experiences aren’t free but have ad expectationsI strongly agree/agree with mobile advertising…


I’m ok with advertising if it means that I can access content for free

After I see an ad, I sometimes look for more information

Ads have become more interesting than they used to be

Ads are more helpful at finding geo-graphically relevant information

I am more likely to click on ads that incorporate multimedia elements

I am more likely to click on ads that are simple text ads

Auto

PRESENTATION

FREE CONTENT

QUALITY OF INFORMATION

Categories vary based on the quality of information and presentation of the mobile ad

Yahoo! Presentation, Confidential68

Correspondence Map*: Attitudes about Mobile Advertising



or correlation. Regardless of whether or not you do this now, please tell us how much you agree or disagree with each of the following statements about researching <CATEGORY> purchases using a mobile device. “Agree.” Base=Mobile Category Users.


Mobile ads that very clearly told me the price of the product Mobile ads that are straightforward and fact-based

Mobile ads that are informative Mobile ads that clearly spelled out the features and benefits

Mobile ads that are relevantUseful when I’m looking for certain information

Targeted just to me and relevant my interests or background

Mobile ads that give a short snapshot of information Mobile ads that contain a simple call to action

Mobile ads that are text based

Feel good or better about the brand in general Mobile ads that focus on the overall value and not price

Mobile ads that incorporate multimedia elements Mobile banner ads which include graphical elements

Mobile ads that are entertainingMobile ads that are memorable

Mobile ads which are more relevant to my current locationMobile ads that I can share with friends or family

41%40%

38%36%

37%37%

29%

31%26%

19%

25%18%

20%18%

35%27%

27%20%

53%Informative

48%Relevant

41%Simple

29%Branding

26%Graphical

Please tell us how important the following types of ad features are to you when it comes to <<CATEGORY>> advertising on your mobile device. “Extremely/very/somewhat important.” Base=Mobile Internet Category Users. .

Consumers want informative, relevant and simple mobile advertisingThe following is important when it comes to mobile advertising…



Informative 49% 52% 49% 54% 47% 56% 61% 54% 57% 63% 58% 57%

Relevant to Interests 45% 48% 44% 51% 38% 54% 59% 47% 55% 57% 53% 51%

Simple 36% 41% 39% 43% 33% 43% 48% 38% 42% 54% 47% 47%

Branding 24% 28% 27% 29% 24% 29% 38% 31% 37% 39% 33% 37%

Graphical/Multimedia 21% 26% 20% 30% 22% 23% 31% 29% 28% 35% 29% 33%

Please tell us how important the following types of ad features are to you when it comes to <<CATEGORY>> advertising on your mobile device. “Extremely/very/somewhat important.” Base=Mobile Internet Category Users. .

Depending on the category, advertising should be more graphical and branded


I strongly agree/disagree with mobile advertising…

Key Takeaways


Key Takeaways

Mobile has become a critical part of many users’ daily lives, but more than two-thirds still think the experience could be better. Nonetheless, consumers believe mobile complements PC by in a variety of ways including following up from research conducted on a phone or vice versa.

Mobile is by no means an exclusively out-of-home experience. While 93% of mobile internet users claim to have used mobile out of the home, a close 89% say they also use their mobile devices while in the home.

Since a television is on in many homes during non-work hours, 86% of mobile internet users (and 92% of 13-24s) are using their mobile devices simultaneously with TV consumption. A quarter of them say they are browsing content related to what they are watching, presenting a compelling opportunity for content providers and advertisers alike to complement the viewing experience on the mobile platform.

In-store mobile usage tends to be social in nature, particularly for younger mobile users—87% of mobile internet users are using their phones while brick-and-mortar shopping, with 70% of those texting friends or family and half sending picture messages about products under consideration. When they are using mobile phones in stores, shoppers seem to be looking less for information about a purchase and more for confirmation or opinions from friends and family.


Key Takeaways

Overall, mobile is still very much seen as a secondary platform for shopping (and shopping-related information). Across most categories, the PC market is currently 3-4 times the size of the mobile market. However, mobile and non-mobile users alike say they are interested in accessing more mobile shopping information in the next 12 months. There is a tremendous opportunity for retailers and advertisers to help transform mobile into a full-fledged shopping platform.

Furthermore, interest in using mobile to help the shopping process is clearly there—across all categories, 79% of mobile shoppers have either tried already or are interested in accessing store information; 67% comparing products and services; and nearly half responding to ads or making a purchase.

Mobile shopping is strongest in the categories of digital content, restaurants/dining and entertainment—all areas where we know the phone plays a key role. In the case of digital content, the phone is the consumption platform and the latter categories involve events outside the home where the phone is the primary communication/information channel.

Mobile shoppers are highly engaged with advertising—1 out of 5 mobile shoppers who have seen advertising during the shopping process say they always look at it. This rises to 27% in auto and 31% in home improvement (the two categories that also have the longest research times). When considering various attributes of mobile advertising, relevant, informational, and factual are more important attributes than rich media, entertainment value or social sharing. This is particularly true for auto, beauty, and apparel—although entertaining ads are also popular in these categories.


Key Takeaways

iPhone and Android users are more likely than Blackberry users to engage in both shopping and communication activities while in a store. They also have stronger interest across categories than Blackberry and Windows Mobile users do. Interest also typically skews younger and ethnic for most categories. These groups are also most likely to say the mobile platform is useful across all stages of the purchase funnel.

Specific mobile tasks consumers try on their mobile devices vary by category. However, there are common popular activities including using a search engine, comparison shopping, and reading professional and user reviews. Most activities tried on mobile are dwarfed by those same activities when tried on the PC. However, when you take into account those interested in the mobile activities we see that demand is high - with scores for mobile approaching and sometimes surpassing PC levels. As failure rates reduce because of better wireless networks and the adoption higher performing mobile devices (like Android, etc.) we'll see many of these mobile activities that have been tried increase.

By understanding mobile principles of location, goal orientation, attentiveness, boredom, passion and trust we can tailor our advertising by these experiences and mindsets. Categories that exhibit boredom principles are more entertainment and mobile digital focused while most others tend to be more goal-oriented. Categories in which users exhibit passion include consumer electronics, auto/parts, and apparel.

research?: [email protected]

mobile sales?:

[email protected]

B2B Insights, Yahoo!

Ashmeed Ali | Primary Lead

Edwin WongRadha Subramanyam

Mobile Sales, Yahoo!

Paul CushmanBrian MorelAlice Kim Hawari

Mandar Shinde

Gateley Meeker

David GillAaron Paquette

Jake Moskowitz

APPENDIX

Visited a website

Used a search engine


Compared products or services

Compared prices of products or services

Read professional reviews for products or services

Read user reviews

Looked at pictures of products/services

Created/managed a shopping cart or list

Looked for/purchased gift cards or certificates

Watched an online video

84%

75%

66%

48%

47%

41%

41%

42%

27%

24%

28%

7%

11%

13%

19%

20%

19%

18%

17%

22%

23%

18%

94%

88%

77%

73%

72%

56%

52%

68%

32%

26%

35%

2%

3%

8%

10%

10%

14%

12%

8%

16%

22%

15%

Mobile Tried

Mobile Interested

PC Tried

PC Interested

Demand is high for category mobile activities and approaches PC levels


Mobile Shopping Activities I’ve Tried or Interested In – Net of all categories

Mobile PC


Social shopping, deal hunting, and advertising are currently and will be a key part of the experience


Mobile Shopping Activities I’ve Tried or Interested In – Net of all categories

Made a Purchase (Net)

Used or requested a coupon

Looked for deals, coupons, offers or promotions

Took and sent a picture of product /details to others

Communicated with someone about ___ via email

Communicated with someone about ___ via IMing

Interacted with ads w/in search results

Interacted with online ads

Interacted with video ads

Communicated with someone about ___ via texting

Click-to-call automatic routing

Looked for/downloaded apps

Scanned a barcode

42%

33%

38%

42%

40%

26%

29%

28%

24%

47%

40%

39%

25%

20%

29%

23%

17%

17%

17%

15%

15%

16%

16%

20%

19%

34%

50%

52%

62%

19%

28%

13%

46%

37%

26%

17%

23%

14%

14%

16%

11%

8%

9%

12%

Mobile Tried

Mobile Interested

PC Tried

PC Interested

Mobile PC


Mobile Shopping Framework Study 2010

Technology

Transcript of Mobile Shopping Framework Study 2010