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Mobile Commerce

Mobile Commerce is the Next Generation of E-Commerce

An increasing percentage of transactions are occurring via mobile devices on mobile commerce websites. In fact, as of 2015, 29.7% of e-commerce spending takes place on mobile devices in the United States. What does this mean? Retailers need to have a mobile optimized website if they expect to perform well against their competitors.

Mobile ready sites are important any day of the year, but a bigger impact can be seen on retail holidays like Black Friday and Cyber Monday. On these days, more than ever, it is crucial that retail stores have a user friendly mobile website. As more and more smartphones are landing in the hands of consumers, it will be essential that every competitive company or brand has a mobile optimized website.

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Mobile Apps

Consumers have recently made two decisions. First, they are more willing to use their mobile device over their desktop or laptop. Second, they are more likely to spend time in mobile apps instead of the mobile web, if they are given a chance. Consumers’ preferences are changing how businesses think about their company’s strategy.

Apps are practically becoming a requirement for businesses in categories like news, productivity, retail, travel, and more. Starbucks is a great example of a company that has made a useful app for their consumers. At the end of Q3 in 2014, the company had 6 million mobile app transactions weekly. One year later (Q3 of 2015) 9 million mobile transactions are being processed every week.

Mobile optimized websites are also powerful, but the effect can be clearly seen for local business searches. In 2013, 38% of people surveyed said they were more likely to contact a local business if they had a mobile optimized site. Just two years later, 61% of people, asked the same question, said mobile optimized sites made a difference. Mobile ready sites are a necessity as the number of searches including “near me” increases at a steady rate.

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Mobile Advertising

Mobile advertising has taken off and based on the projections, it is here to stay.

An increasing number of companies each day are dedicating more money into a mobile advertising budget as they try to reach their target audience on their most personal device. Radio, print and TV ad spending is going down while digital, specifically mobile, ad budgets are growing, based on a study done by eMarketer. Even when compared to other digital forms of advertising (display, online video, social media, and paid searches) mobile has a great lead.

It’s not just for the United States, other countries are seeing the same trend with mobile internet advertising. North America saw $31.53 billion in mobile internet advertising revenue in 2015. Asia and Japan saw $25.44 billion in mobile ad revenue in 2015. These numbers will continuously grow because of the precise targeting that mobile marketing offers.

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Social Media

We all know that social media is here to stay.

Individual people, small organizations, and complex corporations have social media accounts. At the end of 2015, Facebook has 1,591,000,000 users that log in at least once a month on their mobile device. This number has been consistently growing and isn’t expected to stop any time soon. People want to stay up to date on their social networking, especially on the device that is usually within arms reach.

The leading social app shouldn’t be a shocker to most. Facebook is in front of US millennials for an average of 25.7 hours a month (comScore). Instagram is in second place demanding 7 hours, while Snapchat and Tumblr are a close third and fourth place with 5.9 and 5.7 hours a month accordingly. Twitter ends up in fifth with millennials spending three and a half hours in the app a month.

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Introduction to Mobile

When it comes to mobile, there are statistics that are simply amazing.

Mobile devices are landing in the hands of a growing percentage of the population. As of Q3 in 2015, almost 78% of Americans, over the age of thirteen, own a smartphone (comScore). It’s not shocking that we spend a lot of time digesting digital media. According to a study done by eMarketer, in 2015, US adults consumed almost 5 ½ hours of digital media each day, with close to 3 of those hours being through a mobile device.

If digital media is being consumed at such a high rate, when will mobile get its fair share of advertising budgets? In 2014, mobile only received 8% of total advertising spending. Since mobile advertising is so much more effective when compared to radio, tv or print ads, money could easily be shifted from these conventional forms of advertising to the fresh media that is mobile.

With mobile marketing, you can ensure that your ads are being placed in front of your target consumer. This is unlike traditional media such as print, radio or tv. With these conventional forms of media, marketers can’t guarantee the message is relevant to the audience it reached.
Mobile is a powerful marketing tool that many companies haven’t utilized yet. A complete mobile strategy includes placing ads on social media, on mobile-optimized websites, and in apps. To extend these ad placements, your message can be sent out through text messages or through ringless voicemail.