Is Mobile Showrooming Over-Hyped?


Is Mobile Showrooming Over-Hyped?

Study Finds Only 6 Percent of Consumers Exhibit Mobile Showrooming Behavior While Shopping In-Store

NEW YORK, NY and TORONTO, CANADA — Mobile showrooming is not as prevalent as recent reports have indicated, according to research being conducted by Nielsen for the ongoing xAd/Telmetrics U.S. Mobile Path-to-Purchase Study. The report found that 77 percent of smartphone retail shoppers ultimately making their purchases in-store versus going online to try and find a cheaper price. In addition, one-third of consumer’s online shopping time is now spent on smartphones and tablets.

“Showing the power of mobile, consumers are beginning to use their mobile devices exclusively for their retail shopping and research needs,” said Monica Ho, vice president of marketing, xAd. “As a result, both online and brick and mortar retailers must understand how to integrate this fast growing media into their overall marketing spend with the right message, at the right time to the right customer.”

Most Mobile Retail Searchers Convert; Many Within the Hour

More than half (55 percent) of mobile retail shoppers ultimately make a purchase, and immediacy is important with over 30 percent of smartphone users and 25 percent of tablet users intending to make a purchase within an hour. Tablet shoppers, however, generally have longer purchase cycles with deeper research intent as 41 percent take a month or longer to make a purchase.

Mobile Showrooming Overhyped

As only 6 percent of smartphone users conducted their most recent mobile retail search in-store and 77 percent complete their purchases in-store, the findings indicate the premise of mobile showrooming is overstated for the overall retail category. Select categories of shoppers slightly over-index on their in-store mobile retail research including Electronics (7.1%), Groceries (6.7%) and Home Goods (6.6%) while only 4.7 percent of Apparel, Drug and Beauty Goods shoppers search their devices in-store. Mobile shoppers are in fact using their devices for comparison-shopping before and after an in-store visit with 50 percent of mobile users beginning their retail shopping on mobile and 1 out of 4 mobile shoppers leveraging their device throughout the purchase process.

Location Paramount for Smartphone Shoppers While Tablet Shoppers Search for Promotions

Smartphone and tablet shoppers exhibit different research intent with smartphone users considering location most important while coupons/offers (21 percent) and reviews (18 percent) are top of mind for tablet users. The research also indicates:

  • The majority of smartphone users expect retailers to be within five miles of their location (57 percent)
  • 1 out of 4 smartphone users consider proximity of the retail business location the most important factor when looking for information via mobile device
  • Contact information is a critical need for smartphone users with more than 1 out of 3 shoppers looking specifically for retailer details such as a phone number.

“Our retail findings confirm that shoppers are demanding locally relevant business information when making a retail purchase decision,” said Bill Dinan, president of Telmetrics. “With more mobile shoppers using mobile exclusively and throughout their online shopping experience, marketers must ensure campaigns include local info and timely promotions to help convert the nearly 60 percent of consumers that are undecided.”

About the Study

More Than 33 Million Americans Use Their Mobile Phone for Shopping-Related ActivitiesThe behavioral data is part of a greater study, which is the first to measure what consumers report they are doing via mobile devices and capture their actual preferences and behaviors across the Retail, Gas/Convenience, Banking/Finance and Insurance categories. Results from the 2nd Annual U.S. Mobile Path-to-Purchase Study are based on data from an online survey of 2,000 U.S. smartphone and tablet users and actual observed consumer behaviors from Nielsen’s Smartphone Analytics Panel of 6,000 Apple and Android users. The study will also include three additional releases of specific market findings for the Banking/Finance, Gas/Convenience and Insurance categories.

Free Trend Report: Why Location Is the New Currency of Marketing

Free Trend Report: Why Location Is the New Currency of MarketingFinding effective ways to deliver branded messages in today’s complex media environment is one of the biggest challenges facing advertisers. Traditional methods of advertising have become less effective as consumers spend less time in places where marketers have traditionally had an advantage in reaching them. In addition, consumer attention has fragmented across multiple channels as media options and device platforms increasingly diversify.

Active consumers spend money, and while they are going about their daily routine, they are also actively looking for information. According to Google, more than 50% of all mobile searches have local intent, and 17% of search happens while consumers are on the go.

Digital Out-of-Home (DOOH) advertising, also known as Digital Place-based (DPb) media, utilizes strategically placed, networked digital signage displays to reach on-the-go consumers while they are outside of their home with highly targeted messages. Location-based mobile and digital out-of-home media are part of a larger multiscreen ecosystem that effectively amplifies brand messages to create a deeper level of engagement with active consumers.

Why Location Is the New Currency of Marketing is aimed at CMOs, media buyers and strategists and provides insight into why marketers are increasingly shifting their advertising dollars to these rapidly emerging media platforms.

Highlights from Why Location Is the New Currency of Marketing include:

  • The Connected Consumer
  • Leveraging the Moment
  • Multiscreen Campaign Planning
  • Amplifying Reach With DOOH Media

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