Captivating Connections.

apps vs. mobile web.

When it comes to using apps vs. the mobile web, which one do you rely on and access via your mobile devices?

Personally, I tend to rely on the tried and true apps I have found to love and rely on, like Maps and HopStop. However, when something is outside my knowledge base, I have no issue tapping open the mobile web and doing a quick search to get what I need.

While both apps and the mobile web are increasing in popularity, according to Niesel, apps are beating out the mobile web or time spent. In fact, "the amount of time spent with apps versus the mobile Web increased to 81% from 73% a year ago."

What else did they find?

- The average time spent on apps per day has changed in the last year, up two minutes to 39 minutes.

- People are dividing their attention across a wider selection of apps; the proportion of time spent among the 50 most popular apps declined from 74% to 58% in the last year.

- However, the top 5 apps (Facebook, YouTube, Android Market [now Google Play], Google Search and Gmail) remain unchanged from a year ago. Perhaps related to the people spreading time over a more diverse group of apps is the fact that the average number of apps per smartphone has risen, from 32 to 41.

the race is on: tablets vs. smartphones

According to new research from Adobe Systems Digital Index group, "The share of Web site traffic on tablets grew more than 300% in the past year." In fact, "Tablets' share of Web site traffic will exceed smartphone traffic by early 2013, reaching 10% of total Web site traffic in 2014."

This rapid growth makes total sense; as more and more people aquire tablets, more and more people are going to use them to go online.

What's interesting is that "the study suggests that traffic from tablets to Web sites will surpass that from smartphones in 12 months." The evidence they're using?

- "Within one year of the iPad launch in Q2 2010, tablet visits represented 1% of total Web site visits, reaching 4.3% of total visits one year later, up more than 300%."

- "Compare this with the first two years of the iPhone market entry, when smartphones accounted for 0.5% of total Web site visits, taking nearly three years to reach 1% of total visits."

We know smartphones are becoming increasingly popular, as are tablets. Both are attractive for different reasons, and both offer different forms of mobility and on-the-go functionality. I get that the arguement being made here is that, "for each visit to a brand's Web site made with a smartphone, four visits are made using a tablet." That may make sense; the way tablets tend to be used right now is for leisure, which includes surfing the web and browsing sites in a more lean-back manner. When you're on the web via your smartphone, it tends to be with a specific purpose in mind, and you may be relying on apps or specific search destinations more than just perusing a brand site. This also has to do with the fact that tablets tend to be used more in the home, while smartphones are used pretty much everywhere.

I'd even argue that, while more brand web site visits are being made via tablet, that the smartphone visits end up having a stronger 'ROI' so to speak, since these visits tend to be done with purpose and potential action in mind.

What do you think?

 

is content bad for your budget?

There's something about seamlessly buying and downloading content like music, movies, and books that makes you forget you're actually spending (real) money on it. I used to be a major offender of, um, filesharing music, and now I can't stop buying random songs from iTunes. It all seems pretty harmless - a song here, a song there - until I get my bill and I realize just how much I racked up.

For some reason, until I get the bill, I forget I'm actually spending money on the content, and probably don't need all these songs I won't listen to after a week. Part of me thinks "meh, it's less than 1 or 2 dollars," while another part of me thinks "isn't that how people ruin their budgets? By minor purchases here and there?"

I'm not the only one concerned about this. According to AICPA, "more than 40% of Americans download and pay for digital content, and they’re spending more money on them than they ever have."

But do they have this money to spend? Jordin Amin, chair of the AICPA’s national CPA financial literacy, says it best when he says, “one of the concerns we have is that it’s very easy to make these purchases without a budget or an overall financial plan.”

It's true. Do people not 'count' content they download as a real purchase because it's not in tangible DVD, book, or CD form? One could argue that it's cheaper to buy a song vs. an album, or a digital version of a book than a physical paperback, but do we justify more purchases when they are only a tap or swpire away?

What do you think?

eCommerce isn't the only thing growing as mCommerce dials up the heat.

We know eCommerce is becoming increasingly popular (see my earlier post here). However, part of that reason is due to consumer investment in and comfort with web-enabled portable devices like tablets and smartphones.

It makes sense, then, that if eCommerce is growing, so too is mCommerce. In fact, the Consumer Electronics Association (CEA) "estimated that nine out of 10 U.S. consumers own a tablet, smartphone or a cell phone, amounting to 216 million mobile device owners. More than one-third (37%) of mobile users are engaging in some form of mobile commerce -- either shopping and/or purchasing online or in physical stores, or using coupons or gift cards."

What are consumers most likely shopping for on mobile devices?

- Music (43%)

- Movies (38%) ------> Note how music and movies are things that can be insta downloaded and used immediately vs. a tangible item!

- Events/ticketing (37%)

- Clothing/footwear (36%)

- Books (35%)

And what about spending? "Men are expected to outspend women in mobile purchases this year, by $677 to $489. Among age groups, those 35-44 are projected to spend the most at $664 on average, while people making over $75,000 annually will spend $686 via mobile devices."

Those of you who have seen my latest iPanel Insights presentation know there are some barriers to mCommerce, such as limitations and capabilities of the devices itself (screen size, browser capabilities, etc.) as well as a general sense that consumers are getting more comfortable, but are not quite there yet, when it comes to make purchases via smartphones and tablets.

What do you think? Do you engage in mCommerce?

by 2016, nearly eCommerce will make up 10% of spending.

A new Forrester report confirms what we've been seeing with eCommerce: It's only getting bigger as more and more people get online, get web-enabled devices, and get more comfortable shopping on them.

By 2016, Forrester estimates that "U.S. ecommerce sales to reach $327 billion -- up from roughly $200 billion in 2011."

So what's fueling this growth, asides the aforementioned increase in smart devices like tablets and phones?

- New shopping formats, including flash sales and subscription models (think Gilt Groupe)

- Online loyalty programs (Think CardStar app)

- Aggressive promotional offers from Web retailers

What do you think is adding to this trend? How have you seen it manifest itself among your friends and family?

 

does (screen) size matter?

According to Chadwick Martin Bailey (CMB), when it comes to content, consumers aren't so picky about their screen size. This is quite different from research we have seen the past few years, which note that consumers have been increasing their comfort around different sized screens but still had their preferences.

CMB found that "58% of people who viewed programming on a tablet did so in their homes -- and of these, 63% did so even though the program they were watching was available on their televisions." Meanwhile, while "74% of consumers ages 16-29 had watched programming online, 39% of consumers 50-75 had also watched a television program or movie online. And their preferred method of watching such programming is either through a network Web site (27%) or Netflix (24%). Only 12% of consumers said they watched through their TV provider’s Web portal (such as Comcast’s Xfinity.com)."

What does this mean? Peter Fondulas, founder of Fondulas Strategic Research, which worked on the project with CMB, explains that “the big media companies have been comforted in this notion that the biggest available screen is always going to win in any situation. That may have been true a while ago, but people have become more open to devices and may even prefer [smaller screens] in some situations.”

What do you think?

tablet owners WANT eCommerce (for reals)

 

I've been working on some research with our MediaVest tablet community recently looking at the idea of eCommerce. While much of the usage of eCommerce via tablet (does that make it tCommerce?) reflects a lot of the data made public (slow and steady adaptation), it doesn't mean that consumer interest isn't increasing, and that they want to see more of it. In fact, the more prevelant it becomes may impact how quickly tablet users begin adapting it.

According to GfK MRI’s research, "70% of tablet owners who read digital magazines on their devices said they would like to be able to buy items simply by clicking on ads in the digital magazines. Almost as many -- 67% -- said they would like to see ads in digital magazines that are personalized to address their interests."

This could be a great way to provide an even more engaging and dynamic experience!

can ultrabooks outpace tablets?

According to Juniper Research, the hot item at CES, "ultrabooks -- the fast, thin, lightweight laptops designed to take on the MacBook Air -- will grow at three times the rate of tablets over the next five years."

The caveat? "However, tablet volume will remain higher, with 253 million expected to be shipped in 2016, compared with 178 million ultrabooks."

It will be interesting to see what Intel, who claims trademark on the "Ultrabook" term, does to compete against Apple and the established MacBook air. Exciting!

who is the tablet shopper (hint: it's not a dude).

Accprding to Zmags, "more consumers who own tablets tend to like to shop, and make more spontaneous purchases than consumers who do not own tablets, the survey finds. Tablet owners also tend to be more intent on making purchases."

So who are these shoppings?

"14% of consumers who own tablet computers, such as an iPad or Android device, classified themselves as spontaneous shoppers compared with 9% of those who do not own a tablet. 9% of tablet owners said they were addicted to shopping, compared with 3% of those not owning a tablet. More tablet owners—9%--said they tend to buy luxury items than non-tablet owners, 3%, the survey found.

Tablet owners are more likely to shop for certain products than others. Electronics, at 53% of all respondents, topped the list of most-preferred products to buy using a tablet, followed by books, 41%, toys, 39%, clothing, 27%, and music, 33%."

What else?

"The survey also found that the typical tablet owner is 40 years old with an average annual household income of $63,000. 52% of tablet owners are women and 81% of all tablet owners use Facebook. On average, a tablet owner spent $325 during the survey period."

What does this mean for you? According to Sean Ford, Zmags chief operating of “We’re seeing a rise in the importance of the tablet as true vehicle to drive commerce."

thanks to gift givers everywhere, tablet & E-Reader owners doubled this holiday.

It was a big holiday for tablets & eReaders!

According to Pew Internet & American Life Project, "the share of U.S. adults who own tablet computers nearly doubled from 10% to 19% during the holiday season, fueled in part by the launch of less expensive devices like the Kindle Fire and Barnes & Noble’s Nook Tablet."

Even more impressive, "e-reader ownership also jumped from 10% to 19% between mid- December and mid-January, while the proportion of Americans with either type of device climbed from 18% to 29%."