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Mobile Advertising and Shopping - US - July 2015

Mobile Advertising and Shopping - US - July 2015

With rapid adoption of smartphones and tablets, mobile ad sales and mobile shopping are both seeing dramatic growth: Mobile ad sales grew 76% in 2014 and 41% in 2015. Mobile shopping sales grew 57% in 2014 and 32% in 2015.

Even so, mobile commerce represents only 22% of total online sales, and mobile ads carry only 31% of total online ads. Online shoppers continue to prefer the PC over mobile, and the majority of smartphone users would likely prefer an ad-free experience. However, penchants for mobile shopping and interests in mobile ads vary sharply between demographic groups, as delineated in the surveys conducted for this report.

This report looks at the following areas:

PCs still preferred for shopping
Small screens dominate away from home
Bright spots in mobile ads often unwelcome


OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The issues
Figure 1: US mobile ad sales as share of total online ads, 2010-20
Figure 2: Home and away from home use of PCs, tablets, and phones for internet access, March 2015
Figure 3: Attitudes and behavior related to mobile engagement, March 2015
The opportunities
Figure 4: US mobile ad sales and forecast, at current prices, 2010-19
Figure 5: Use of couponing apps and QR codes, March 2015
Figure 6: Exposure to mobile ads, selected demographics, March 2015
Figure 7: Clicks and purchases in response to mobile ads, selected demographics, March 2015
What it means
THE MARKET
What you need to know
Rapid adoption swells sales
Shopping preference, ad aversion keep PC dominant
Continued growth ahead
Market size and forecast
Ad dollars follow eyes and ears to mobile
Figure 8: US mobile ad sales and forecast, at current prices, 2010-19
2020 mobile shopping sales forecast at $200 billion
Figure 9: US mobile shopping sales and forecast, at current prices, 2010-20
Market perspective – Mobile ads
Mobile 31% of online ads
Figure 10: US mobile ad sales as share of total online ads, 2010-20
Bright spots in smartphone ads largely unwelcome
Market perspective – Mobile shopping
2019 share of online shopping to reach 31%
Figure 11: US mobile shopping sales as share of total online shopping, 2011-19
Figure 12: Preferred device for shopping online, March 2015
Figure 13: Average order size for shopping online, March 2015
Figure 14: Frequency of shopping online via phone, tablet, and PC, March 2015
Market factors
Ownership of smartphones and tablets
Figure 15: Smartphone and tablet ownership, March 2015
Video, price comparison to propel ads
Figure 16: Mobile web usage, April 2012-December 2014
Figure 17: Home and away from home use of PCs, tablets, and phones for internet access, March 2015
KEY PLAYERS
What you need to know
eBay and Amazon far in lead
Relying on web slows growth
Social and search enter commerce
What’s working?
eBay and Amazon dwarf competition
TV and mobile a perfect fit
Figure 18: Global mobile shopping sales of selected retailers, 2013-14
Mobile ad leaders growing faster than full market
Figure 19: Net US mobile display ad revenues, by company, 2013-14
What’s next?
Ad sellers board mobile shopping
Augmented reality apps
Casting hardware takes mobile to big screen
Connected cars offer new ad opportunities
Figure 20: Use of mobile internet radio in the car, by gender and age, March 2015
Investing in the tablet
What’s struggling?
Mobile apps required
Figure 21: Mobile sales growth and share of selected retailers without apps, 2013-14
Twitter MAU growth slowing
THE CONSUMER
What you need to know
Reach of mobile ads rises
Apps gaining steam
High levels of positive response to mobile ads
Exposure to mobile ads
Clear trend upward in reach of mobile ads
Figure 22: Gains in exposure to mobile ads, by type of ad, May 2014-March 2015
Limited reach suited to immediate calls to action
Figure 23: Types of ads seen on a smartphone or tablet in past month, March 2015
Reaching young families and Hispanics
Figure 24: Exposure to mobile ads, selected demographics, March 2015
Response to mobile ads
Substantial efficacy in spite of dim attitudes
Figure 25: Responses to mobile advertising in past month, March 2015
Improved response among men, younger ages, Hispanics
Figure 26: Clicks and purchases in response to mobile ads, selected demographics, March 2015
Frequency of mobile shopping
Larger households and young men most active
Figure 27: Frequency of shopping online via phone, tablet, and PC, March 2015
Product categories purchased on mobile
PC retains edge on larger purchases and clothing/accessories
Figure 28: Categories purchased on PC, phone, and tablet, March 2015
Larger households more likely to buy consumables via mobile
Figure 29: Purchase of consumables via phone, by household size, March 2015
Preferences between apps and websites
Near split in usage
Figure 30: Use of apps vs web for smartphone shopping, March 2015
Figure 31: Use of apps for smartphone shopping, selected demographics, March 2015
APPENDIX
Data sources and abbreviations
Data sources
Fan chart forecast
Abbreviations and terms
RESEARCH METHODOLOGY
US Research Methodology
Consumer research
Social Media Research
Trade research
Statistical Forecasting

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