Trends on Mobile Use This Holiday Season

(1)

Trends on Mobile Use

This Holiday Season

A NIELSEN/HARRIS POLL ABOUT CONSUMERS AND MOBILE MARKETING

KEY INSIGHTS

1

SMARTPHONE OWNERS ARE USING THEIR PHONES THIS HOLIDAY SEASON:

3 out of 4 smartphone owners who plan on doing any holiday shopping this year, plan to use their phones for part of their gift-finding and buying experience.

Among all smartphone owners, searching for an item in a search engine to find a local retailer topped the list of mobile activities for holiday shopping this season, with 2 out of 5 (39 percent) saying they plan to use their smartphone for this. Sending a picture of a potential gift to a friend or family member came at a close second (38 percent), followed by searching for a coupon for the store they’re in (33 percent).

2

MILLENNIALS ARE THE MOST ACTIVE MOBILE USERS THIS HOLIDAY SEASON:

Of those smartphone owners who plan to do holiday shopping this season, young men ages 18-34 (91 percent) and women ages 18-18-34 (85 percent) said they plan to use their smartphones while shopping this holiday season.

3

PARENTS ARE THE SECOND MOST ACTIVE MOBILE USERS THIS HOLIDAY SEASON:

86 percent of dads plan to use their smartphones for holiday shopping this year, with “use my phone to look for an item in a search engine to find a local retailer” (54 percent) topping their list. While dads are searching for retail locations, mobile moms selected “take pictures of potential gifts to text and get opinions from friends/family” as the top mobile activity, with nearly half (48 percent) saying they plan on it.

4

CONSUMERS KNOW WHAT THEY WANT:

Make it local:

As device owners become sophisticated, local information becomes an important part of the mix 8 out of 10 (82 percent) of smartphone owners say it is at least somewhat important for them to be able to access local information/activities via an app. In addition, nearly 9 out of 10 (87 percent) smartphone owners say it is at least somewhat important that they can use their smartphone to search for a retail location.

Purchase on the go:

68 percent of smartphone owners find it at least somewhat important to make a purchase on the phone.

Customized content is king:

9 out of 10 smartphone owners know their online purchase and shopping history data is used for customized ads and only 23 percent of them do not want retailers or credit card companies to use this data under any circumstances.

5

BRING OUT THE BEACONS!

Though a relatively new technology, over half of all phone owners sureveyed said they were familiar with in-store beacons, and 15% said they had engaged with them.

(2)

How Smartphone Owners Are

Shopping This Holiday Season

75% OF THOSE SMARTPHONE OWNERS SHOPPING FOR

THE HOLIDAYS WILL USE THEIR PHONES TO DO SO

Qyou plan to use your smartphone for For which of the following, if any, do when you are out doing your holiday shopping this upcoming season?

BASE

Smartphone owners who plan on doing any holiday shopping this season

WILL BE USING SMARTPHONE FOR HOLIDAY SHOPPING THIS YEAR (NET) 75%

NONE–I WILL NOT BE USING MY SMARTPHONE FOR HOLIDAY SHOPPING THIS YEAR. 25%

n=1,092

AT 39%, SEARCHING FOR A LOCAL RETAILER

TOPS THE LIST MOBILE ACTIVITIES

n=1,181 0%

To look for an item in a search engine (e.g., Google, Yahoo!, Bing) to find a local retailer To take a picture of a potential gift to text to friend

or family member for their opinion To search for a coupon for a store I am in To search for a coupon for an item/brand I plan to purchase To check availability of items at specific, local retailers To scan an item’s QR code using an app to compare prices at other stores/online To use my phone to make a purchase For something else

39%

5% 10% 15% 20% 25% 30% 40% 45%

38% 33%

32% 28% 24% 14%

(3)

Men Vs Women And How

They Plan To Shop

OUT OF ADULTS UNDER THE AGE OF 45,

SMARTPHONES WILL BE A MAJOR PART OF

COMPLETING HOLIDAY SHOPPING THIS SEASON

Q Do you plan to use your smartphone for when you are out doing your holiday shopping this upcoming season?

BASE

n=1,092

Total M18–34

0% 20% 40% 60% 80% 100%

25%

75% 9%

91% 17%

39%

61% 45%

55% 46%

54% 15%

85% 20%

80% 31%

69%

37% _44%

56% 63% 83%

F18–34

M35–44 M45–54 M55–64 M65+ F35–44 M45–54 F55–64 F65+

NONE–I WILL NOT BE USING MY SMARTPHONE FOR HOLIDAY SHOPPING THIS YEAR

WILL BE USING SMARTPHONE FOR HOLIDAY SHOPPING THIS YEAR (SUB-NET)

n=1,092

FEMALES AGED 18-34 WILL USE THEIR

SMARTPHPHONES TO SEARCH FOR A COUPON

IN-STORE THIS HOLIDAY SEASON; MALES AGED 18-24 ARE

LOOKING FOR CONVENIENCE OF AVAILABILITY OF

AN ITEM; 37% OF THESE MILLENNIAL MALES PLAN TO

PURCHASE WHILE USING THEIR PHONE

Q Do you plan to use your smartphone for when you are out doing your holiday shopping this upcoming season?

BASE

To search for a coupon for a store I am in To search for a coupon for an item/brand I plan to purchase

To check availability of items at specific, local retailers

To use my phone to make a purchase

TOTAL

M18–34

M35–44

F18–34

F35–44 36%

41% 29%

52% 43% 35%

31%

16%

37% 15%

23% 11%

52% 41%

29% 25%

44% 45% 42% 34%

(4)

Dads And Moms*

CHILDREN UNDER THE AGE

OF 18 IN THEIR HOUSEHOLD

*

FOR DADS, SMARTPHONES ARE USED TO SAVE

TIME/MONEY; 48% WILL CHECK AVAILABILITY

OF AN ITEM, AND 46% WILL SEARCH FOR A

COUPON FOR A STORE THEY ARE IN

QFor which of the following, if any, do you plan to use your smartphone for when you are out doing your holiday shopping this upcoming season?

BASE

Smartphone owners who will be using their smartphone for holiday shopping this year

86% OF DADS PLAN ON USING THEIR

SMARTPHONE FOR HOLIDAY SHOPPING

THIS YEAR; 75% OF MOMS

QFor which of the following, if any, do you plan to use your smartphone for when you are out doing your holiday shopping this upcoming season?

BASE

Smartphone owners who will be using their smartphone for holiday shopping this year

68% 86%

75%

0% 20% 40% 60% 80% 100%

TOTAL DADS MOMS

TOTAL

DADS

MOMS

n=1,181 n=130 n=220

TOTAL

DADS

MOMS

n=1,181 n=130 n=220

To look for an item in a search engine (e.g., Google, Yahoo!, Bing) to find a local retailer To take a picture of a potential gift to text to friend or family member for their opinion To search for a coupon for a store I am in To search for a coupon for an item/brand I plan to purchase To check availability of items at specific, local retailers To scan an item’s QR code using an app to compare prices at other stores/online To use my phone to make a purchase For something else

39%

54% 35%

38%

52% 48% 33%

32%

46% 42% 28%

48% 29%

24% 35% 14%

29% 16%

11% 13%

14%

25%

46% 47%

(5)

What Consumers Want

MAKE IT LOCAL: 82% OF SMARTPHONE OWNERS WANT

ACCESS TO LOCAL INFORMATION, 87% OF THEM WANT

TO SEARCH FOR A LOCAL RETAILER AND 58% WANT TO

MAKE A PURCHASE ON THE PHONE

Q How important, if at all, is it for you to be able to do each of the following activities on your cell phone/ smartphone? Summary Of At Least Somewhat Important

BASE

Cell phone/smartphone owners

0% 20% 40% 60% 80% 100%

Text message Across the Internet Search for a retail location Access local information/activities via an application (app) Access social networks (e.g., Twitter, Facebook, Myspace) Make a purchase

Pay for something at a store using my phone instead of a credit card Location-based social networking (e.g., checking in on Foursquare

85% 96% 76%

95% 69%

87% 63%

82% 55%

70% 53%

68% 44%

58% 34%

44%

n=1,181

TOTAL

SMARTPHONE OWNERS

THE NEED FOR LOCAL INFORMATION HAS INCREASED

BY 3 POINTS SINCE 2012

Qfor you to be able to do each of the How important, if at all, is it following activities on your cell phone/ smartphone? Summary Of At Least Somewhat Important

ACCESS LOCAL INFORMATION/ ACTIVITIES VIA AN APP

AT LEAST SOMEWHAT IMPORTANT (NET) EXTREMELY/ VERY IMPORTANT/ IMPORTANT (SUB–NET) EXTREMELY/ VERY IMPORTANT (SUB–SUB–NET)

0% 20% 40% 60% 80%

100% +15 POINTS FROM 2012

+3 POINTS FROM 2012

82% 62%

33% 47%

25% 63%

(6)

What Consumers Want Continued

THE NEED TO SEARCH FOR A RETAIL LOCATION

HAS INCREASED BY 2 POINTS SINCE 2012

Qfor you to be able to do each of the How important, if at all, is it following activities on your cell phone/smartphone?

SEARCH FOR A RETAIL LOCATION AT LEAST SOMEWHAT

IMPORTANT (NET) EXTREMELY/ VERY IMPORTANT/ IMPORTANT (SUB–NET) EXTREMELY/ VERY IMPORTANT (SUB–SUB–NET)

87% 64%

37% 49%

28% 69%

TOTAL SMARTPHONE OWNERS n=1,832

0% 20% 40% 60% 80% 100%

THE NEED TO MAKE A PURCHASE ON THE PHONE

HAS INCREASED BY 6 POINTS SINCE 2012

Qfor you to be able to do each of How important, if at all, is it the following activities on your cell phone/smartphone?

MAKE A PURCHASE AT LEAST SOMEWHAT

IMPORTANT (NET) EXTREMELY/ VERY IMPORTANT/ IMPORTANT (SUB–NET) EXTREMELY/ VERY IMPORTANT (SUB–SUB–NET)

68% 50%

29% 39%

22% 53%

0% 10% 20% 30% 40% 50% 60%70% 80%

(7)

Customized Content Is King

9 OUT OF 10 PEOPLE KNOW THAT THEIR DATA IS

BEING USED TO CUSTOMIZE ADVERTISING

Qregularly use data on what you have Retailers and credit card companies purchased or searched for online in order to send you customized advertising. Which of the following statements, if any, best describe how you feel about this?

BASE

KNOW DATA IS BEING USED IN THIS WAY (NET) I DID NOT KNOW MY DATA WAS BEING USED IN THIS WAY

82% 86% 90% 94% 96% 100%

12% 10%

88% 90%

ONLY 23% OF THESE USERS DO NOT WANT

RETAILERS OR CREDIT CARD COMPANIES TO

USE THIS DATA UNDER ANY CIRCUMSTANCES

Q Retailers and credit card companies regularly use data on what you have purchased or searched for online in order to send you customized advertising. Which of the following statements, if any, best describe how you feel about this?

BASE

TOTAL

SMARTPHONE OWNERS

0%

15%

20%

25%

30%

35%

I am ok with this, but have concerns about who has access to this data, and the extent to which it can be used

Under no circumstances do I want this data used, and if possible, I opt out from receiving these types of ads or offers

I have neither positive nor negative reactions to this

I like this because it makes the ads more useful

I did not know my data was being used in

this way n=1,832

29% 32%

25% 23%

21% 21%

12% 12%

10% 14%

(8)

TAKEAWAYS

Alert Shopper V is a survey of American consumer activity related to mobile phones. The survey has been fielded 5 years in a row on a projectable sample of the U.S. Population, and as a result, hosts a rich set of unique data.

Done in conjunction with the Harris Poll, which is now owned by Nielsen, this year the survey explores bold new technological territory and shows that Americans are ready and willing to be contacted by beacons when in store, give up their credit cards in favor of paying with their phones and are using mobile technology phones to interact with retailers.

This holiday season will be a banner year for mobile inspired commerce,especially with location triggered mobile ads. Consumers show little sensitivity to privacy issues related to the use of location data.

METHODOLOGY

Harris Poll Methodology

This survey was conducted online within the United States by Harris Poll on behalf of Placecast from October 17-21, 2014 among 2,066 adults ages 18 and older (among which 1,832 are cell phone/smartphone owners, 1,181 are smartphone owners, 130 are smartphone owning dads with children under 18 in their household and 213 are smartphone owning moms with children under 18 in their household). The 2012 study was conducted from February 16-20, 2012 among 2,262 U.S. adults ages 18 and older (among which 1,952 are cell phone/ smartphone owners and 919 are smartphone owners). This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated.

Bring Out The Beacons

52% OF RESPONDENTS ARE FAMILIAR

WITH IN-STORE BEACONS AND 15% OF

THEM HAVE ENGAGED WITH THEM

AT LEAST ONCE

Q How often, if ever, have you engaged with each of the following mobile apps or technologies this year? In-store beacons

BASE

TOTAL SMARTPHONE OWNERS

0% 10% 20% 30% 40% 50%

60% _52%

15% 20%

57% _{EVER HEARD OF IT (NET)}

EVER USED IT (SUB-NET)