Mobile Web Survey, Wave 9 Eclipse of the desktop

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1 Nucleus Mobile Web Survey Wave 9 June 2015 Mobile Web Survey, Wave 9 Eclipse of the desktop July 2015

2 survey summary; eclipse of the desktop Inexorable rise of mobile places desktops in the shade Average mobile traffic across 12 websites in sample 2

3 mcommerce follows mobile browsing growth pattern While the rate of growth for mobile browsing tapers, transactions take off Growth of mobile browsing, transactions and revenue *Data for revenue and transactions unavailable pre

4 luxury continues to lead but mainstream brands catch up Luxury sites continue to lead but optimised mass market brands see fastest mobile growth 4

5 Android slowly eroding Apple s domination of web browsing Apple maintains dominant lead but share erodes to 73.74% Android grows its share to 22.39%, up from 19.5% 6 months ago Windows OS third with just 2.91% share 5

6 ios continues to draw luxury consumers; Android growing mass ios users are most attracted to luxury travel brands but Android grows a 30% share of mass market brands 6

7 iphone becomes favourite web browsing device iphone overtakes ipad as larger screens and responsive websites encourage smartphone browsing especially during the daily commute Transactions follow browsing behaviour with iphone booking revenue up 83% year-on-year *iphone and ipad figures as a percentage of total mobile browsing, transactions & revenue 7

8 survey timeline; mobile traffic hits 50%+ traffic share The Nucleus Mobile Web Survey studies 12 UK and international travel websites. Fieldwork for Wave 9 took place on 30 th June 2015 with a total user base of 2.4 million user sessions. 8

9 survey summary; mobile browsing growth steadily climbing Wave 9: Mobile browsing between June 2011 and June

10 Round-up of recent research 1010

11 rise in smartphone subscriptions Smartphone subscriptions rose by 23% globally in 2014 and this rise is set to continue, particularly in developing regions such as South America, Asia and the ME/ Africa Ericsson s latest Mobility Report predicts that by % of all phone subscriptions will be for mobile broadband In the US, 10% of Americans are smartphone-dependent as they own a smartphone with internet, but do not have broadband at home Ericsson Mobility Report Feb 2015 Ericsson Mobility Report June 2015 Pew Internet.org 11

12 importance of Responsive Web Design (RWD) In May 2015, Bing joined Google in announcing their decision to tag and rank Mobile-friendly websites Bing and Google examine a website s navigation, readability, scrolling and mobile device compatibility to assess its mobile friendliness Websites not meeting their mobile friendliness criteria will be demoted on search results leading to loss of traffic Criteo found that there is a 110% uplift in conversion rates when travel sites are optimised for mobile Findings from Neoteric UK 2015 survey neotericuk.co.uk Bing webmaster blog Google Webmaster Central 21/04/15 tnooz.com 12

13 mcommerce continues to grow globally Japan continues to lead the way in terms of mcommerce, with 61% of all ecommerce transactions predicted to come from mobile devices by Q According to Criteo s recent survey, in Japan, shoppers view 3x more products on smartphones than the US, as well as having a completion rate of almost 4x that of the US In the West, the UK is strongest in terms of mcommerce, on its way to reaching 50% of mobile transactions by mid 2016 Criteo State of Mobile Commerce Q

14 mcommerce should be a priority for retailers No longer are mobile devices just for browsing, as a report from VoucherCodes and CRR* reveals that 15% of UK consumers use their mobile as a primary shopping device Adobe s quarterly digital brief illustrated the growth of mobile-friendly designs, revealing a 12% increase from 2014 in both RWD and mobile optimised sites Many sites are still missing out on the mobile market, with CRR reporting the top reasons that put consumers off mcommerce: Slow loading pages (64%) Websites that freeze (49%) Too many products to sift through (46%) Security (43%) Poor payment options (35%) *The Centre for Retail Research Internetretailing.net/Vouchercode & CRR Adobe/Econsultancy quarterly digital brief 14

15 UK commuter commerce is now 62% of total mcommerce spend The CEBR* has reported that the UK mcommerce market is set to be worth 14.95bn by the end of 2015, whilst the US mcommerce market will be worth 57.7bn A report from Zapp and CEBR reveals that commuter commerce alone accounts for 9.3bn per year in the UK, with Londoners spending an average of 44 per week Meanwhile, commuters outside of London aren t far behind, spending 36 a week on average during their commute Commuter Commerce is now a significant phenomenon for retail brands to target * Centre for Economics and Business Research US mcommerce 57.7bn EU mcommerce 40.3bn UK mcommerce 14.9bn Internetretailing.net Telemedia-news.com 15

16 time spent on mobile web also eclipses desktop in US In the USA, time spent on the mobile web continues to grow while desktop/laptop has plateaued Americans now spend almost 3 hours a day on the mobile internet, more than desktop and laptops combined For the first time, in March 2015, mobile overtook desktop as the single platform users share of the total digital population with 11.3% of the US digital population using only mobile devices to browse the web Comscore.com 16

17 Nucleus Mobile Web Survey Wave 9, June 2015 study methodology and sample This is Nucleus 9th wave, six-monthly snapshot of mobile browsing on travel websites. The sample comprised 12 travel websites from mass market brands to high-end luxury, including both UK and international brands with global audiences. Total unique visitor sample for the 12 websites was 2.4m unique visitors during fieldwork for the month of June 2015, compared to 1.5m in January Android market share includes specific Android devices plus unspecified devices which may inflate the statement of Android OS share. Some analytics packages, such as Google Analytics, include various mobile devices in its mobile tracking, such as Xbox and Wii. These and all minor mobile operating systems and devices, of which there are many, are consolidated in other. 17

18 Website by website 1818

19 Website 1 partly responsive design Insight 1 The average spend on smartphones is beginning to equal desktop, with a 395 difference in the average purchase value on this site compared to 1,200 a year ago Insight 2 Since rolling out responsive templates, this website has increased mobile traffic to 54.9%, up from 47% this time last year Insight 3 This site has always been very popular with Apple users, however it is now attracting a wider audience of Android browsers. Traffic from Android is now 26.9% The majority of traffic to website 1 now comes from mobile devices. As the smartphone market continues to grow, this website shows the largest increase in Android browsers with 22% of all revenue coming from non-ios devices. 19

20 Website 2 responsive design Insight 1 Although ios is still the dominant mobile OS for this site, accounting for 83% of mobile traffic, Android and Windows devices are increasing their mobile traffic share Insight 2 Mobile traffic from iphone has increased to 33% from 22% in January this year. Commuter browsing has helped push this figure up, as users choose to browse with smartphones on their daily commute Insight 3 Despite the growth in iphone use, ipad still accounts for the majority of mobile traffic %. This could be due to an older affluent target demographic for this luxury website Although website 2 s mobile traffic hasn t quite reached the majority, at 48.4% it is well on its way. Its high price tag holidays do attract an older demographic who are more comfortable browsing via desktop and larger screened devices as shown with the high traffic from ipad. 20

21 Website 3 non-responsive Insight 1 iphone has overtaken ipad on this luxury site but in terms of bookings ipad remains slightly ahead at 43% and iphone 41% Insight 2 Average smartphone spend is now higher than tablets and only 3% lower than desktop spend Insight 3 Mobile traffic has passed the halfway mark accelerating visitor growth which is up 25%. Applying responsive design to this website would ensure an even larger percentage of mobile visitors Mobile now accounts for 51.9% of total traffic and 18% of total revenue. This site has a high percentage of visitors from the US and Asia with Asia ahead of the western market in terms of smartphone spending. 21

22 Website 4 non-responsive Insight 1 iphone has overtaken ipad as the mobile device of choice, but Android and Windows has eroded ios s lead Insight 2 Windows mobile devices account for 4.9% of total traffic Insight 3 Website 4 is an old non mobile-friendly site due to be re-launched shortly as a fully responsive site which should transform its appeal to smartphone users Mobile penetration has grown marginally to 40.77%, a slow increase perhaps due to the site s mobile unfriendliness. ipad traffic is declining, being replaced by a growing iphone market. Other operating systems including Windows are also eroding Apple s dominant share of mobile traffic. 22

23 Website 5 non-responsive Insight 1 Average spend on both smartphone and tablets are higher than desktop, which is impressive for a site that is not deemed as mobile-friendly Insight 2 Unlike many other websites, ios has succeeded in increasing its market share, currently sitting on 81%. Meanwhile Android s share has fallen to just 15% Insight 3 Although Windows mobile devices account for just 3% of mobile traffic, they account for a third of total revenue from mobile. We ve seen in our survey that higher traffic and transactions from Windows devices are common for hotels with a large business clientele This site has actually seen a 9% fall in mobile traffic. As it is non mobile-friendly it is most probably a victim of lower Google search rankings on mobile devices which has led to a decline in traffic. Positive points are that mobile transactions and revenue have increased, demonstrating on even non-optimised sites consumers are looking to use mobile for the full booking journey. 23

24 Website 6 responsive Insight 1 Website 6 has experienced a 73% increase in mobile revenue over the last 6 months Insight 2 iphone consolidates its lead as the mobile device of choice for this site, accounting for 54% of all mobile traffic. iphone now makes up a third of transactions made on mobile Insight 3 Together, smartphone and tablet transactions have increased by over 60% in the last 6 months demonstrating the value of a responsive website A rising conversion rate and increased mobile browsing activity shows that a responsive web design will pay dividends. Average mobile traffic continues to increase, hitting 43%, of which, 54% of visitors access the website via iphone. 24

25 Website 7 responsive Insight 1 This luxury hotel website had the highest share of mobile traffic at 58.8% - benefitting greatly from a mobile-friendly responsive web design Insight 2 Apple s ios devices continue to be the device of choice for visitors, accounting for 77% of mobile traffic a finding we expect to see on a luxury site Insight 3 For the first time on this site iphone has surpassed ipad in mobile traffic - increasing it s traffic share in 6 months from 37% to 43% This website demonstrates the importance of responsive web design, with mobile traffic making up almost 60% of all traffic. ios continues be the OS of choice, which is common for luxury brands. Within ios iphone has now overtaken ipad as the most popular browsing device. 25

26 Website 8 adaptive Insight 1 Website 8 has seen a dramatic increase in mobile traffic in the last 12 months, now passing the 50% tipping point to reach 51.6% Insight 2 Mobile revenue has increased 394% in the last 6 months alone with the average mobile spend almost doubling in the same period Insight 3 Despite Apple devices remaining the most popular with 63% of mobile traffic other operating systems are increasing their market share, with Android growing to 32% and Windows 2.5% This site is our most successful in terms of mobile transactions. With high average spend values and a large percentage of bookings from mobile, this site confirms our findings that mobile transactions and revenues are set to follow mobile browsing growth patterns. 26

27 Website 9 adaptive Insight 1 Although Windows OS only makes up 2.5% of total mobile browsing, Windows devices account for 16% of total mobile revenue more than Android devices possibly due to a high % of business travellers Insight 2 This site has seen the largest increase in mobile traffic share in 6 months, from 33.6% to 50.4% Insight 3 Like the majority of our sites, iphone has overtaken ipad as the most popular ios browsing device however a higher percentage of transactions are still via ipad, demonstrating that smartphone conversion still trails tablets As ios s dominance in mobile traffic share falls on this site, Windows and Android use increases with Windows devices carving-out good levels of mobile revenue. Although more transactions are made on ipad over iphone, average transaction values are relatively similar across all devices demonstrating users comfort with completing high value bookings on smaller screens. 27

28 Website 10 responsive Insight 1 36% of all transactions on this site are made on mobile devices: 8.4% come from smartphones; and 27% from tablets Insight 2 As the average purchase values for this mass market site are at the lower end of our surveyed brands, we can see that average spend on desktop is not substantially higher than that of tablets and smartphones Insight 3 Conversion rate on this travel site is 2.6%, the highest in our study and relatively high for an ecommerce travel site possibly due to a mobile optimised booking flow The number of mobile transactions on this mass market site have increased hugely in the last 6 months, from 15% of total transactions in January 2015 to 36% today as a result, revenue from mobile has risen to 34.8% of the total. This site has the lowest ios share, supporting our contention that ios is favoured by premium and luxury brand followers. 28

29 Website 11 responsive Insight 1 This site attracts the highest percentage of iphone users within our entire survey, reaching 61.4% of all mobile browsers. Commuter browsing is quite likely to have pushed iphone s share much higher than that of the ipad Insight 2 This is one of only two sites in our survey where ios share continues to grow. With a predominantly US market we can see Apple products are still the dominant device in this region Insight 3 This site has the lowest share of Android users within our survey at only 7.5%. Windows users have risen to 2.2% ios continues to reign supreme for this luxury site, increasing its mobile traffic share to 89.93%. Within this figure iphones are the most popular device with the new iphone 6 s more tablet-like screen dimensions, iphone is eating into the ipad market share. 29

30 Website 12 responsive Insight 1 A larger array of high quality, well designed Android devices has helped to increase the Android mobile browsing share for this hotel site to 25.5% Insight 2 Smartphones continue to be the device of choice for users of this site. With a high proportion of business clientele we can see the importance of being able to book and browse on the move to fit purchases around a hectic schedule Insight 3 As expected for a well optimised mobile site, the majority of web traffic now comes from Mobile devices - at 54.1% Growth in iphone use again outpaces ipad. This fully responsive site achieves a very healthy mobile browsing share which has been above the 50% mark since June it currently stands at 54.12%. 30

31 Nucleus mobile website capabilities Nucleus is the world s first integrated brand+digital+intellectual property consultancy, specialising in creating and capturing value from integrated brand projects in the travel, luxury and financial services sectors. With leading-edge experience of responsive design and mobile websites and apps, Nucleus can provide insight and advice on digital strategy, brand experience and mobile development. For more information, please contact Hannah Mills on +44 (0) or hmills@nucleus.co.uk Website 31

32 previous Nucleus research Previous Nucleus surveys and articles: Is this the beginning of the end of the PC era January-2015.aspx 32

33 list of references Adobe Quarterly Digital Intelligence Briefings, April 2015 Bing webmaster blog: Comscore.com: Criteo, State of Mobile Commerce: Growing like a weed Q Ericsson Mobility Report: On the pulse of the networked society, February 2015 Ericsson Mobility Report: On the pulse of the networked society, June 2015 Google Think Insights: Google Webmaster blog: Google Webmaster blog: Internet retailing.net: 33

34 list of references Mary Meeker, KCPB Internet Trends 2015 Code Conference: My Customer: Pew Research Centre U.S. Smartphone Use in 2015 : Retailmenot.com: online_retailing_in_us_europe canada.pdf Telemedia-news.com: Tnooz.com: 34

35 Nucleus Mobile Web Survey - Wave 9 Eclipse of the desktop Nucleus Ltd John Loftus House Summer Road Thames Ditton Surrey KT7 0QQ, UK Contact: Hannah Mills hmills@nucleus.co.uk +44 (0)