Smartphone Becoming Primary Computing Device

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The most recent forecast from IDC predicts that the smart devices market will grow 15.6% in 2014. This would have the smart device market reaching close to 1.8 billion devices. This growth is expected to be lead by smartphone growth as PC and tablet sales expectations have been lowered slightly. IDC further estimates that shipments will grow to 2.4 billion units in 2018 and expects smartphone shipments to outpace total PC shipments by more than 6 to 1 in 2018.

“Apple’s iOS-ification of Mac OS, and Microsoft’s implementation of Modern UI throughout different form factors are clear indicators that we’re living in a mobile-first world,” states Jitesh Ubrani, IDC Research Analyst.

Further illustrating the move to smartphones as users primary devices are usage numbers. The amount of daily time spent on mobile devices is now outpacing TV in the U.S. (according a newly-released 2014 AdReaction study from Millward Brown).  On average U.S. users now spend 151 minutes per day on smartphones and only 147 on average in front of TVs. In China users spend an average of 170 minutes per day on their devices.

xAd and Telmetrics 2nd Annual UK Mobile Path-to-Purchase Study states that up to 46 percent of UK consumers now use mobile devices as their primary medium for purchase decision making, while one in four use mobile devices as their exclusive shopping research device. Mobile applications and mobile web sites are becoming more important than ever as they are becoming consumers primary point of contact with brands.

Growth of Mobile Services Benefits Businesses

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Continuing along with mobile’s rapid growth, mobile payments continue to grow at a rapid rate. Adyen’s Mobile Payment Index shows 20% of all payment transactions coming from Adyen’s global network are now generated on mobile devices. This is about a 66% increase over 2013 numbers.

“Customers are no longer talking about ‘taking a chance’ in the mobile market like they were a few short years ago,” says Kimber Johnson, Managing Director of Pacific App Design, “Now mobile applications and mobile commerce are an established channel and the focus is on how to improve the quality of the sales channel.”

Additionally, 70% of global merchants now say they are processing mobile payments. As the services grow so do sales. The sale of Digital goods such books and streaming content saw growth of 6.2% according to Adyen.

RTB.com states they have had a 36,000% revenue increase from 2011-2014. Illustrating the growth potential in the mobile marketplace.

“Services created for the mobile market are experiencing huge growth as they mature with the industry,” continues Mr. Johnson, “We are seeing businesses benefit as those services mature. Additional options and improved payment options are helping businesses improve their mobile presence.”

Many Users Want Improved Contact with Brands

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In a recent survey conducted by Contact Solutions, researchers found that mobile shoppers want more contact than many retailers are currently giving them. Based on study results, nearly three-fourths of shoppers said they would use mobile applications that offered a live chat option to users.

The survey points out that many consumers would like more enhanced forms of contact with retailers and brands via mobile channels.

“To start meeting the needs of customers, retailers must develop a strategy that provides consumers with a positive, interactive engagement with the brand,” says Kimber Johnson, Managing Director of Pacific App Design. “While mobile applications have been a great way to access information, retailers need to see apps as more of a two way communication tool.”

The survey goes on to detail other findings that support this conclusion, such as the feeling many shoppers had they can’t solve problems via mobile.

“Proactively acting to offer the shopping experience that consumers are looking for will set brands apart from their competitors,” concludes Mr. Johnson.

Keys to Mobile Commerce 2.0

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What do consumers want when shopping from mobile applications?

In a recent study designed to look at mobile shopping, Catalina found that what shoppers want in a mobile commerce experience is quite simple: they want to save time and money without extra hassle. Their survey was based on a nationwide survey of 1,000 smartphone owners who are also the primary grocery shopper within their respective households.

Mobile applications have changed the way we look at retail as we can now shop using just a few touches of our fingers. The next wave of mobile applications that are being designed with a shopper-centric approach will accelerate adoption of mobile shopping by providing content that is relevant to individual shoppers.

“We are seeing shopping experiences grow from the catalog approach that mirrored catalogs into personalized shopping experiences that save consumers time and cater to their interests,” says Kimber Johnson, Managing Director, Pacific App Design. “Relevant content is enhancing user experiences and savvy shoppers are gravitating towards the retailers and brands that are delivering the shopping experience that consumers want.”

Mobile commerce is an area where brands are actively working to deliver better shopping experiences so brands can’t wait to act.  Study data shows that about two-thirds of primary household shoppers have already used their smartphone on a shopping trip. These users are rapidly forming preferences.

Mobile Propels New Video Advertising Thinking

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As viewers are changing how they watch not only movies and tv programming but online content, brands need to understand how to integrate advertising. Mobile applications and mobile web sites are leading the charge as mobile media continues to develop and along with that, new rules are being developed for marketing and advertising.

Data from Vindico indicates that nearly two thirds of current video ads go unseen. By following some simple suggestions businesses will see better returns on their video advertising budgets.

First, ads need to be placed at the top of the screen above the fold.  Ads below the fold may run without viewers ever seeing them.

Second, make sure you are advertising on sites that have limited advertising. Heavy ads on sites limit viewer interest but more importantly, the more ads per page, the longer the page will take to load, and users will turn away.

Third, advertisers must understand that users have different habits on smartphones and they aren’t as likely to consume long-form content. Advertisers are now opting for short videos. Think about Vine – that’s how consumers are choosing to experience and share video content right now.

Looking at the mobile form factor and usage trends allows advertisers to develop an advertising plan that works with what people are currently doing rather than relying on outdated thinking.