ninthdecimal mobile audience q3 2013 insights report€¦ · ninthdecimal mobile audience insights...

NinthDecimal Mobile Audience Q3 2013 Insights Report

NinthDecimal Mobile Audience Insights Report Q3 2013

Source: NinthDecimal, Q3 2013NinthDecimal.com

Research OverviewDevice Ownership and Usage 2

Consumer CPG Path to Purchase Behaviors 3-11

Mobile Ad Performance 12-13

Connected Device Trends & Adoption 14-15

Worldwide Location Highlights 16-17

Our Q3 report focuses on understanding how mobile is transforming consumers’ path to purchase behaviors with respect to the CPG vertical. The report examines consumers’ location & mobile adoption and behaviors, as well as connected device adoption and Wi-Fi usage trends.

Several important industry insights were identified: the first examines how the proliferation of mobile devices is changing the way people shop. The second examines how consumers use their devices for pre-shopping activities, and key influencers of their purchase decisions both in-store and elsewhere. The third area highlights the continued growth of mobile devices for connecting to public Wi-Fi.

Launching this quarter is the market’s first Mobile Ad Effectiveness Benchmark, which leverages NinthDecimal’s Location Conversion Index™, the mobile industry’s most accurate drive-to-location metric. For the Benchmark we measured the effectiveness of our Q3 drive-to-location campaigns across several verticals. On average our clients’ mobile ad campaigns drove a 44 percent increase in in-store foot traffic over regular store visits during the campaign flight.

Key findings include:

• 65% of consumers add products to their shopping list as the result of seeing an ad.

• 69% of consumers want to enhance their shopping experience by having information from the retailer sent to them on their mobile devices while in-store.

• Device ownership has increased 67% since 2011, with consumers owning on average 3.9 devices.

•Smartphones are consumers’ device of choice for grocery shopping activities throughout the path to purchase, from creating a shopping list to using the device in-store.

• Mobile devices grew 21% YOY from 56% to 68% of public Wi-Fi connections.

Source: NinthDecimal, Q3 2013

1

Mobile ads drove an average of 44% lift in store visits

44%



Device Ownership and Usage

How many devices do you own?

DEVICESDEVICES

On average consumers own:

On average consumers own:

Q3 2013Q2 2011

increase in number of devices owned

Which device do you prefer to use for grocery shopping activities?

39%

67%

3.92.4

31%

70%

30%

70% of consumers prefer using their mobile device over a laptop for grocery shopping activities

• Consumers own an average of 3.9 devices, a 67% increase from Q2 2011 to Q3 2013.

• Mobile device adoption is influencing consumer path to purchase.

Source: NinthDecimal, Q3 2013 Source: NinthDecimal, Q3 2013

2

Smartphone Tablet Laptop



Mobile is Transforming the Path to Purchase for Grocery Shopping

Which device do you prefer to use for each of the following activities?

Preparing my shopping list

Posting about my favorite brands on

social media

Following my favorite brands on

social media

Looking up nutrition facts

Browsing for recipes

Using in-store to help me shop

An average of two thirds of consumers prefer mobile devices over laptops for grocery shopping activities

• Smartphones are the most influential of the devices for the first and last step of the path to purchase.

• Rapid mobile adoption continues to impact laptop decline, with an average of 28% using laptops for grocery shopping activities.

60%

83% 71% 69% 65% 59% 85%

23%

17%

38%

33%29%

36%33%

21%

64%

33% 32%38%

21%

31%35%

41%

15%

Smartphone Tablet Laptop Source: NinthDecimal, Q3 2013

3



of consumers have CPG or food apps on their

mobile device

50%

50% of consumers have downloaded at least one CPG or food app on their mobile device

• CPG retailer apps are the most-downloaded (32%), and the most likely to be used (70%).

• Food or recipe apps are downloaded almost as much as CPG retailer apps, with a 54% usage.

• Branded CPG apps are the least popular (12%).

Do you havethe following apps?

If so, which do you use?

CPG retailer app

Food/recipe app

CPG brand app

32%

26%

12%

Of that 32%

Of that 26%

Of that 12%

70% - CPG retailer app18% - Food/recipe app6% - CPG brand app6% - None



Consumer CPG-Related App Usage


4



51%

49%88%

12%

30%

9% 8%

3%

If so, how?Do you create a shopping list?

49% of consumers use their mobile device for creating a shopping list vs. 51% who still prefer a hand-written list

• Grocery shopping lists are still an integral part of the path to purchase, with 88% of consumers creating them.

• Apps are significantly less important in creating shopping lists, with 9% & 3% using shopping or recipe apps, respectively.

In a recipe app

In a shopping

app

E-mailed tomyself

On a mobile saved as a

note

Hand-written

list

NoYes

How Consumers Use Mobile Devices for Grocery Shopping



5



62%

48%29%

46%

33%

54%

37% 35%

28% 27%

36%

21%

29%

9%13%

Female Male

Sales and special offers are the biggest product influencer for both men & women

• Women are 29% more likely than men to be influenced by sales, and 46% more likely to be influenced by recipes.

• Men are 33% more influenced than women by proximity to product retailer.

• Men are equally influenced by recipes and proximity to product retailer.

How Consumers Make Grocery Purchase Decisions

What information would get you to add a product to your shopping list?

Sales, coupons, orspecial offers

Recipes for a food item

Reviews of theproduct

A video usingthe product

Nutritioninformation

A list of nearby stores where the product

is availableSource: NinthDecimal, Q3 2013

6



17%

48%

26%

9%

If you saw a mobile ad for a relevant new CPG product, how likely are you to add

it to your shopping list?

47% of consumers have tried a new CPG product or new brand

as the result of seeing a mobile ad

65% of shoppers add products to their shopping list as the result of seeing a mobile ad

• 47% of shoppers have tried a new product or CPG brand as the result of seeing an ad.

• One quarter of shoppers claim ads are unlikely to influence their grocery list.

NeverNotlikely

Somewhatlikely

Verylikely

47%

Mobile Ads Influence Grocery Purchase Decisions



7

65%



37%

14%

9%6% 5% 4% 4% 3% 2%

12%

1 3 52 4 6 7 8 9 10-20

Do you use your mobile device in-store? Average times per month shoppers use their devices in-store

Number of times per month shoppers use their mobile device in-store

16%

51%35%49%

4.45.6

27%

8

Smartphone Tablet NoneMen Women

51% of consumers use their device in-store, with over 2x as many preferring a smartphone over a tablet

• Women use their device while grocery shopping 27% more than men. • 51% use their device 1-2 times per month while grocery shopping. • 12% use their device 10 to 20 times per month while grocery shopping.

Consumer Mobile Device Usage for Grocery Shopping


Source: NinthDecimal, Q3 2013Source: NinthDecimal, Q3 2013


Source: NinthDecimal, Q3 2013NinthDecimal.com 9

28%

20%

15%

6%

12% 11%

8%

69% of consumers’ purchase decisions are influenced by store or brand marketing promotions

• 48% are influenced by coupons and sale items. • Shoppers are significantly more influenced by push marketing over consumer-initiated search.

What information on your smartphone or tablet is most likely to influence your purchase decision while in a grocery store?

Receiving a coupon for a product

in-store

Sale itemnotification

Brand/Retailer-initiated activities (69%) Consumer-initiated activities (31%)

Searching forrecipes

Searching fornutrition info

Searching for product

reviews

Seeing an ad for a product

Receiving a push notification on

my mobile device

Key Consumer Purchase Decision Influencers




25%

12%

76%

10%

9%

11%

9%

24%Print it & bring it into the store

Save it in my e-mail

Save it as an image

Save it directly to my grocery card

Save it in a shopping app

Save it in a mobile wallet

I don’t use mobile coupons

76% of consumers use mobile coupons, indicating a shift of mobile’s influence with grocery shopping

• 51% save mobile coupons on their phone in some format. • 25% still print coupons and bring the hard copy to the store.

Consumer Mobile Coupon Usage

How do you use mobile coupons for grocery shopping?


10



What would you like to be able to do in-store on your mobile device to make grocery shopping easier?47%

43%

38%

22%

34% 33%

47% of consumers want to use their mobile for shopping list reminders

• 43% of consumers want easier mobile coupon redemption. • Over one third of consumers want an easier way to manage their shopping list.

How Consumers Would like to Use Mobile Devices In-Store

Set reminders of what to buy

No scanning mobile coupons

at checkout

Sync my shopping list across all my grocery

and recipe apps

Save recipes to my calendar

Add items directly to my shopping list from

any content

Add items directly to my shopping list

from a recipeSource: NinthDecimal, Q3 2013

11



Auto

Restaurant

Health

Retail

ServiceLocations*

% of total CPGEngagementsLocation Type

1-2 miles from store

<1 mile from storeIn-store 2-5 miles

from store5-10 miles from store

10-25 miles from store

+4%+12%

+20%

-1% +1% -36%

2.7%3.4%5.8%28.3%46.4%

Consumer Brand Engagement: Mobile Ad Performance

Where do CPG ads perform the best by proximity? Where are consumers engaging with CPG ads by location type?

* Service Locations are defined as places where consumers take care of household errands, but are not necessarily retail locations. Service locations include: dry cleaners, shoe shiners, locksmith, pet groomers, etc.

74.7% of CPG ad engagements occur in service or retail locations •Ads perform best when consumer is within 5 miles of the grocery store. •Ad performance significantly declines when consumers are 10 miles away or further.


12

Methodology: To compare in-store versus near-store ad performance, we analyzed the overall ad performance across a vertical, and identified a lift or decline in performance based on proximity to store locations within that vertical.



Audiences targeted with drive-to-location campaigns had 11x the number of store visits (normal and

incremental) vs non-exposed populations

Mobile Ad Effectiveness Benchmark: Measuring Drive-to-Location

13

11x

Methodology: We benchmarked all drive-to-location campaigns in Q3 2013 to measure the overall success of mobile in driving foot traffic to stores. We established a normal visit rate for the general population to the retail locations as an index of 100. Then we compared visits of both audiences exposed to the mobile campaigns as well as similar control groups not exposed to the campaigns. The result measures only the incremental visits driven specifically by mobile advertising*.

•% Lift Exposed vs. General Population: 44%

•% Lift Exposed vs. Control: 29%

44%29%

General population visit

index

100111

144

Similar audience control group, not exposed

Advertiser-targeted audience, exposed

Source: NinthDecimal’s Q3 Location Conversion Index™

Source: NinthDecimal’s Q3 Location Conversion Index™

44% 11xAverage lift in incremental store visits driven by a Mobile Advertising Campaign

More total store visits by mobile targeted audiences

BRAND LOCATION

*To learn more about our methodology visit www.NinthDecimal.com/advertisers/location-conversion-index



21%How are consumers connecting to Wi-Fi?

Q3 2013Q3 2012 Q4 2012 Q1 2013 Q2 2013

TabletSmartphoneLaptop

16% 19% 22% 24% 23%

40% 39% 38% 40% 45%

44% 42% 40% 36% 32%

Growth in the percentage of mobile connections,

year over year

Decline in the percentage of laptop connections,

year over year

27%

Connected Device Trends: Public Wi-Fi Usage

Mobile devices grew 21% from 56% to 68% of Wi-Fi connections year over year

•Q3 had the largest increase in smartphone usage than any other quarter in the last year. •68% of all public Wi-Fi usage was represented by mobile devices, with smartphones at 45% & tablets at 23%. •Laptop usage decreased to 32%, a relative decrease of 27% year over year.


14

Q3 2012



Top 10 Wi-Fi Mobile Devices: Q3 2013 Top Wi-Fi Mobile OS: Q3 2013

1 Apple iPhone 37.3% 1 + 15.6%

2 Apple iPad 21.1% 2 - 31.7%

3 Samsung Galaxy S III 7.9% 3 + 14.4%

4 Apple iPod Touch 5.4% 4 - 13.5%

5 Samsung Galaxy S II 2.9% 5 - 9.2%

6 Kindle Fire 1.9% 6 - 0.7%

7 Droid Razr 4G 1.9% 10 + 200.9%

8 Samsung Galaxy S IV 1.7% 27 + 754.5%

9 Samsung Galaxy Note II 1.7% 8 + 15.2%

10 Samsung Galaxy Tab I 1.2% 7 - 25.1%

1 iOS 64.9% 1 + 1.8%

2 Android OS 32.7% 2 + 3.3%

3 RIM OS 1.2% 3 - 23.1%

4 Windows OS 0.8% 4 + 33.3%

5 Other OS 0.5% 5 + 156.4%

Q3Rank

Q3Rank

Mobile Device Top 10 Mobile Device OSQ3 2013% of Ad

Requests

Q3 2013% of Ad

Requests

Q2 2013Rank

Q2 2013Rank

% Change in Market Share

% Change in Market Share

Note: NinthDecimal measurement includes all mobile device types in order to provided complete view of how the on-the-go audience is connecting. * OS: Operating System.

Connected Device Trends: U.S. Highlights

Samsung accounts for 4 of the top 10 devices connecting to public Wi-Fi for the third quarter in a row

•The iPhone and iPad remain in the top 2 spots, despite the iPad losing 31.7% market share. •The Kindle Fire continues to remain the strongest challenger to the iPad in the tablet market segment, but the Samsung Galaxy Note II is not far behind.

iOS and Android continue to dominate the market as the top Wi-Fi mobile operating systems

•Android is consistently increasing market share for the third fourth in a row. •Windows OS saw an increase of 33.3% while RIM continued to decline. •No device running RIM or Windows OS makes the top 10.


15



Worldwide public Wi-Fi locations: 2009 – 2013

Worldwide quarterly growth in public Wi-Fi locations:

820,262

817,793

826,887 826,087

289,476

414,356

682,929

820,262 826,087

2009 Q4 20122010 Q1 20132011 Q2 20132012 Q3 20132013 YTD

Worldwide Location Highlights: Public Wi-Fi Locations

Worldwide public Wi-Fi locations grew by 186% since 2009

•Worldwide public Wi-Fi locations declined by .09% from Q2 to Q3 2013 due to database updates. •Annual growth of .7% from Q4 2012 to Q3 2013.


16



Public Wi-Fi business models: Worldwide Q3 2013

Public Wi-Fi business models: U.S. Q3 2013

1 South Korea 186,758 1 0.0%

2 United Kingdom 182,654 2 + 0.03%

3 United States 143,616 3 + 3.6%

4 China 104,106 4 0.0%

5 France 35,432 5 0.0%

6 Taiwan 24,147 6 0.0%

7 Russian Fed. 16,829 7 0.0%

8 Japan 15,735 8 0.0%

9 Germany 15,108 9 0.0%

10 Sweden 9,545 10 0.0%

Q3Rank

Country Q3 2013Number of Locations

Q2 2013Rank

% Change

Paid

Free

Paid

Free

22.8%

9.8%

77.2%

90.2%

Worldwide Location Highlights: Public Wi-Fi Locations

Free public Wi-Fi locations saw an 8.6% increase from 83.0% in Q2 to 90.2% in Q3*

•U.S. free Wi-Fi hotspots have significant growth over the last year from 81.3% to 90.2%, an 11% increase**.

South Korea remained in the #1 spot for the fourth quarter in a row, despite not adding any new hotspots

• The U.K. came in second, with nearly as many public Wi-Fi hotspots as South Korea. • The U.S. saw the largest increase in Wi-Fi hotspots, increasing 3.6% to 143,616.


*Source: NinthDecimal, Q2 2013**Source: NinthDecimal, Q3 2012


17

NinthDecimal Mobile Audience Insights Report Q3 2013The Q3 Insights Report highlights recent mobile market audience usage trends offering advertisers insights they can apply to their mobile strategies and campaigns. This quarter focused on the Consumer Packaged Goods vertical.

NinthDecimal is the leading location-powered mobile advertising and data platform. Used by major retailers and marquee brands across verticals, NinthDecimal leverages proprietary historical and present location data to engage advertisers’ desired audiences across all mobile devices at scale. Our ROI-driven approach and unique data platform integrates our Wi-Fi and mobile location big data to deliver true one-to-one mobile audience targeting at four times higher performance over traditional mobile targeting or geofencing. NinthDecimal has been an innovative leader in evolving mobile advertising and delivering mobile audiences since 2003. Today our ad technology is powered by our location big data platform of over 20 billion location tags from more than 850 million devices.

Launching this quarter is the market’s first Mobile Ad Effectiveness Benchmark, which leverages NinthDecimal’s recently announced Location Conversion Index™ (LCI™), the mobile industry’s most accurate drive-to-location metric. In this report we measured the effectiveness of our Q3 drive-to-location campaigns across several verticals. NinthDecimal’s LCI™ offers marketers the ability to measure the ROI of their mobile spend by providing the actual increase of in-store visits directly attributed to their mobile ad campaign.

Methodology:

NinthDecimal’s Mobile Audience Insights Report research is based on data compiled from a survey of more than 1,400 randomly selected mobile users, as well as the billions of data points from NinthDecimal’s proprietary Wi-Fi and mobile advertising platform. Location Conversion Index™ measures ROI by finding the normal visit rate for the general population, then comparing it against audiences both exposed and not exposed to mobile campaigns in order to measure incremental store visits.

The survey data was collected in September ’13 while the platform data analyzed and Mobile Ad Effectiveness Benchmark results were from Q3 2013. Quarterly public Wi-Fi location rankings and business model distributions are based on the final day of the quarter.

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