Tag: mcommerce

Mobile commerce isn’t hurting U.S. brick and mortar shops

Forecasters had previously predicted that shopping over smartphones would cut back on in-person purchases.

As mobile commerce continues to become increasingly popular among retailers and consumers, alike many forecasters had expected that this would start to negatively impact the amount of shopping that would be occurring in brick and mortar store locations, but recent data is showing that this is not the case.

Many store owners were becoming afraid that mcommerce might have represented their demise.

That said, despite the fact that mobile commerce is growing ever stronger, it is online shopping as a whole that poses the real threat to in-person shopping. A new Gallup poll has indicated that purchasing over smartphones and tablets hasn’t had any real impact on the buying habits at brick and mortar locations, when it comes to the majority of consumers in the United States. In fact, most people who took part in the poll stated that there has been no change in the shopping that they do within actual retail store locations.

This indicates that the growth of mobile commerce is occurring specifically within the online space.

Among the respondents, 59 percent said that they have not altered their retail store shopping. An additional 22 percent said that they shop in-person more often now, because of their smartphones and tablets. That said, 19 percent said that they are shopping less frequently at retail store locations.Mobile Commerce - Shopping

As e-commerce becomes stronger, retailers with brick and mortar locations have found that they are experiencing an increasing level of challenges. This is partially due to the fact that their online competition – particularly giants such as Amazon – have notably lower overhead costs, simply due to the very nature of what they are. This can, according to officials from Gallup, allow those online stores to offer the exact same products at meaningfully lower prices.

Another poll that was conducted by Gallup during the holiday shopping season identified “showrooming” as a potential threat, as consumers have a look at a product in a retail store and then compare prices on their smartphones and purchase it over mobile commerce for the lowest cost. That said, as of yet, retailers seem to be embracing the power of mobile marketing and mcommerce and don’t seem to be experiencing any harm from its existence and popularity.

More people are using mobile commerce to make travel plans

A rise in mobile device usage could be good news for travel advertisers.

Based on the findings of a recent study that was conducted by Millennial Media, the leading independent audience platform in digital advertising, mobile commerce may be very promising for travel advertisers because more consumers are using their smartphone, tablets and other similar mobile gadgets for travel purposes, such as researching, booking trips and hotels, and engaging in other travel-related activities.

Mobile consumers are devoting more of their time to engaging in mobile activities using diverse devices.

Millennial Media’s Travel Report has found that this trend has resulted in an increase in the use of mobile in relation to travel. According to the study, of the total digital advertising spending in the travel sector, m-commerce sales are responsible for 12 percent of it and it is on the rise. According to eMarketer, by 2017 it is predicted that US travel mobile commerce sales will be $55.5 billion, which is a 247 percent increase from the $16 billion of last year.

The report, which is part of Millennial Media’s Mobile Intel Series, offers travel advertisers mobile insight and guidance. It provides an in-depth look at the major traveling trends that occurred across the globe throughout 2013. Specific focus was placed on how travel brands have utilized m-commerce to target and immerse consumers, as well as which brands are investing in advertising strategies that target travel and mobile markets.

The main travel mobile commerce audience is men between the ages of 25 and 44.

Mobile Commerce - Travel PlanningIn addition to this finding, the study also said that consumers who used their mobile devices for research and booking travel used more than one gadget. Also, consumers are utilizing mobile for the different steps of the travel process, including researching their options, attractions and accommodations, as well as booking trips via their smartphone, tablet, etc. They also use their mobile during their travels to help them get around and even for writing reviews of their experiences once they are over.

According to the report, “Consumers expect a mobile-friendly experience when accessing travel content. Seamless integration across devices, such as saving account information, mobile boarding passes, and consolidated itineraries gives travellers the mobility they need to stay connected on the go, which in turn helps attract, engage, and retail loyal mobile travel consumers.”

To take advantage of the current trends, the report suggests that travel brands and advertisers need to invest in mobile commerce by growing their mobile sites, so they can offer users an engaging and mobile friendly experience.