NinthDecimal Mobile Audience Q Insights Report
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1 Q Insights Report
2 Research Overview Device Ownership and Usage 2 Consumer CPG Path to Purchase Behaviors 3-11 Mobile Ad Performance Connected Device Trends & Adoption Worldwide Location Highlights % Mobile ads drove an average of 44% lift in store visits Our Q3 report focuses on understanding how mobile is transforming consumers path to purchase behaviors with respect to the CPG vertical. The report examines consumers location & mobile adoption and behaviors, as well as connected device adoption and Wi-Fi usage trends. Several important industry insights were identified: the first examines how the proliferation of mobile devices is changing the way people shop. The second examines how consumers use their devices for pre-shopping activities, and key influencers of their purchase decisions both in-store and elsewhere. The third area highlights the continued growth of mobile devices for connecting to public Wi-Fi. Launching this quarter is the market s first Mobile Ad Effectiveness Benchmark, which leverages NinthDecimal s Location Conversion Index, the mobile industry s most accurate drive-to-location metric. For the Benchmark we measured the effectiveness of our Q3 drive-to-location campaigns across several verticals. On average our clients mobile ad campaigns drove a 44 percent increase in in-store foot traffic over regular store visits during the campaign flight. Key findings include: 65% of consumers add products to their shopping list as the result of seeing an ad. 69% of consumers want to enhance their shopping experience by having information from the retailer sent to them on their mobile devices while in-store. Device ownership has increased 67% since 2011, with consumers owning on average 3.9 devices. Smartphones are consumers device of choice for grocery shopping activities throughout the path to purchase, from creating a shopping list to using the device in-store. Mobile devices grew 21% YOY from 56% to 68% of public Wi-Fi connections. 1
3 Device Ownership and Usage Q On average consumers own: 2.4 DEVICES How many devices do you own? Q On average consumers own: 3.9 DEVICES Which device do you prefer to use for grocery shopping activities? 30 % 39 % 70 % 67 % increase in number of devices owned 31 % Smartphone Tablet Laptop 70% of consumers prefer using their mobile device over a laptop for grocery shopping activities Consumers own an average of 3.9 devices, a 67% increase from Q to Q Mobile device adoption is influencing consumer path to purchase. 2
4 Mobile is Transforming the Path to Purchase for Grocery Shopping 60 % Which device do you prefer to use for each of the following activities? 64 % 38 % % 38 % 33 % 33 % % % 29 % % 31 % 41 % 23 % 17 % 21 % 21 % 83 % 71 % 69 % 65 % 59 % 85 % 15 % Preparing my shopping list Posting about my favorite brands on social media Following my favorite brands on social media Looking up nutrition facts Browsing for recipes Using in-store to help me shop Smartphone Tablet Laptop An average of two thirds of consumers prefer mobile devices over laptops for grocery shopping activities Smartphones are the most influential of the devices for the first and last step of the path to purchase. Rapid mobile adoption continues to impact laptop decline, with an average of 28% using laptops for grocery shopping activities. 3
5 Consumer CPG-Related App Usage Do you have the following apps? If so, which do you use? CPG retailer app 32 % Of that 32% 70% - CPG retailer app 18% - Food/recipe app 6% - CPG brand app 6% - None 50 % Food/recipe app 26 % Of that 26% 29% - CPG retailer app 54% - Food/recipe app 9% - CPG brand app 8% - None of consumers have CPG or food apps on their mobile device CPG brand app 12 % Of that 12% 37% - CPG retailer app 27% - Food/recipe app 25% - CPG brand app 11% - None 50% of consumers have downloaded at least one CPG or food app on their mobile device CPG retailer apps are the most-downloaded (32%), and the most likely to be used (70%). Food or recipe apps are downloaded almost as much as CPG retailer apps, with a 54% usage. Branded CPG apps are the least popular (12%). 4
6 How Consumers Use Mobile Devices for Grocery Shopping Do you create a shopping list? If so, how? 12 % 88 % 51 % 49 % 30 % Yes No 9 % 8 % 3 % Handwritten list On a mobile saved as a note In a shopping app ed to myself In a recipe app 49% of consumers use their mobile device for creating a shopping list vs. 51% who still prefer a hand-written list Grocery shopping lists are still an integral part of the path to purchase, with 88% of consumers creating them. Apps are significantly less important in creating shopping lists, with 9% & 3% using shopping or recipe apps, respectively. 5
7 How Consumers Make Grocery Purchase Decisions 62 % What information would get you to add a product to your shopping list? 54 % 48 % 29 % 46 % 37 % 35 % 28 % 27 % 36% 33 % 21 % 29% 9 % 13 % Sales, coupons, or Recipes for a Nutrition A list of nearby stores Reviews of the special offers food item information where the product product is available Female Male Sales and special offers are the biggest product influencer for both men & women A video using the product Women are 29% more likely than men to be influenced by sales, and 46% more likely to be influenced by recipes. Men are 33% more influenced than women by proximity to product retailer. Men are equally influenced by recipes and proximity to product retailer. 6
8 Mobile Ads Influence Grocery Purchase Decisions 47% of consumers have tried a new CPG product or new brand as the result of seeing a mobile ad If you saw a mobile ad for a relevant new CPG product, how likely are you to add it to your shopping list? 65 % 48 % 47 % 26 % 17 % 9 % Very likely 65% of shoppers add products to their shopping list as the result of seeing a mobile ad 47% of shoppers have tried a new product or CPG brand as the result of seeing an ad. One quarter of shoppers claim ads are unlikely to influence their grocery list. Somewhat likely Not likely Never 7
9 Consumer Mobile Device Usage for Grocery Shopping Do you use your mobile device in-store? 49 % 35 % 16 % 51 % 4.4 Average times per month shoppers use their devices in-store % Smartphone Tablet None Men Women 37 % Number of times per month shoppers use their mobile device in-store 14 % 9 % 6 % 5 % 4 % 4 % 3 % 2 % 12% % of consumers use their device in-store, with over 2x as many preferring a smartphone over a tablet Women use their device while grocery shopping 27% more than men. 51% use their device 1-2 times per month while grocery shopping. 12% use their device 10 to 20 times per month while grocery shopping. 8
10 Key Consumer Purchase Decision Influencers 28 % What information on your smartphone or tablet is most likely to influence your purchase decision while in a grocery store? 20 % 15 % 12 % 11 % 8 % 6 % Receiving a coupon for a product in-store Sale item notification Seeing an ad for a product Receiving a push notification on my mobile device Searching for recipes Searching for nutrition info Searching for product reviews Brand/Retailer-initiated activities (69%) Consumer-initiated activities (31%) 69% of consumers purchase decisions are influenced by store or brand marketing promotions 48% are influenced by coupons and sale items. Shoppers are significantly more influenced by push marketing over consumer-initiated search. 9
11 Consumer Mobile Coupon Usage How do you use mobile coupons for grocery shopping? 25 % 12 % 24 % Print it & bring it into the store 9 % 76 % Save it in my Save it as an image Save it directly to my grocery card Save it in a shopping app Save it in a mobile wallet 9 % 11 % 10 % I don t use mobile coupons 76% of consumers use mobile coupons, indicating a shift of mobile s influence with grocery shopping 51% save mobile coupons on their phone in some format. 25% still print coupons and bring the hard copy to the store. 10
12 How Consumers Would like to Use Mobile Devices In-Store 47 % 43 % What would you like to be able to do in-store on your mobile device to make grocery shopping easier? 38 % 34 % 33 % 22 % Set reminders of what to buy No scanning mobile coupons at checkout Add items directly to my shopping list from any content Add items directly to my shopping list from a recipe Sync my shopping list across all my grocery and recipe apps Save recipes to my calendar 47% of consumers want to use their mobile for shopping list reminders 43% of consumers want easier mobile coupon redemption. Over one third of consumers want an easier way to manage their shopping list. 11
13 Consumer Brand Engagement: Mobile Ad Performance Methodology: To compare in-store versus near-store ad performance, we analyzed the overall ad performance across a vertical, and identified a lift or decline in performance based on proximity to store locations within that vertical. In-store Where do CPG ads perform the best by proximity? <1 mile from store 1-2 miles from store 2-5 miles from store 5-10 miles from store miles from store +4 % +12 % +20 % -1 % +1 % -36 % Where are consumers engaging with CPG ads by location type? Location Type Service Locations* Retail Health Restaurant Auto % of total CPG Engagements 46.4 % 28.3 % 5.8 % 3.4 % 2.7 % * Service Locations are defined as places where consumers take care of household errands, but are not necessarily retail locations. Service locations include: dry cleaners, shoe shiners, locksmith, pet groomers, etc. 74.7% of CPG ad engagements occur in service or retail locations Ads perform best when consumer is within 5 miles of the grocery store. Ad performance significantly declines when consumers are 10 miles away or further. 12
14 Mobile Ad Effectiveness Benchmark: Measuring Drive-to-Location Methodology: We benchmarked all drive-to-location campaigns in Q to measure the overall success of mobile in driving foot traffic to stores. We established a normal visit rate for the general population to the retail locations as an index of 100. Then we compared visits of both audiences exposed to the mobile campaigns as well as similar control groups not exposed to the campaigns. The result measures only the incremental visits driven specifically by mobile advertising*. 44 % Average lift in incremental store visits driven by a Mobile Advertising Campaign 11x 144 More total store visits by mobile targeted audiences % 44 % BRAND LOCATION 11x General population visit index Similar audience control group, not exposed % Lift Exposed vs. General Population: 44% % Lift Exposed vs. Control: 29% Source: NinthDecimal s Q3 Location Conversion Index Advertiser-targeted audience, exposed Audiences targeted with drive-to-location campaigns had 11x the number of store visits (normal and incremental) vs non-exposed populations Source: NinthDecimal s Q3 Location Conversion Index *To learn more about our methodology visit 13
15 Connected Device Trends: Public Wi-Fi Usage How are consumers connecting to Wi-Fi? 16 % 19 % 22 % 24 % 23 % 21 % Growth in the percentage of mobile connections, year over year 40 % 39 % 38 % 40 % 45 % 44 % 42 % 40 % 36 % 32 % 27 % Decline in the percentage of laptop connections, year over year Q Q Q Q Q Laptop Smartphone Tablet Mobile devices grew 21% from 56% to 68% of Wi-Fi connections year over year Q3 had the largest increase in smartphone usage than any other quarter in the last year. 68% of all public Wi-Fi usage was represented by mobile devices, with smartphones at 45% & tablets at 23%. Laptop usage decreased to 32%, a relative decrease of 27% year over year. 14
16 Connected Device Trends: U.S. Highlights Top 10 Wi-Fi Mobile Devices: Q Top Wi-Fi Mobile OS: Q Q3 Rank Mobile Device Top 10 Q % of Ad Requests Q Rank % Change in Market Share Q3 Rank Mobile Device OS Q % of Ad Requests Q Rank % Change in Market Share 1 Apple iphone 37.3% % 2 Apple ipad 21.1% % 3 Samsung Galaxy S III 7.9% % 4 Apple ipod Touch 5.4% % 5 Samsung Galaxy S II 2.9% 5-9.2% 6 Kindle Fire 1.9% 6-0.7% 7 Droid Razr 4G 1.9% % 8 Samsung Galaxy S IV 1.7% % 9 Samsung Galaxy Note II 1.7% % 10 Samsung Galaxy Tab I 1.2% % 1 ios 64.9% % 2 Android OS 32.7% % 3 RIM OS 1.2% % 4 Windows OS 0.8% % 5 Other OS 0.5% % Samsung accounts for 4 of the top 10 devices connecting to public Wi-Fi for the third quarter in a row The iphone and ipad remain in the top 2 spots, despite the ipad losing 31.7% market share. The Kindle Fire continues to remain the strongest challenger to the ipad in the tablet market segment, but the Samsung Galaxy Note II is not far behind. ios and Android continue to dominate the market as the top Wi-Fi mobile operating systems Android is consistently increasing market share for the third fourth in a row. Windows OS saw an increase of 33.3% while RIM continued to decline. No device running RIM or Windows OS makes the top 10. Note: NinthDecimal measurement includes all mobile device types in order to provided complete view of how the on-the-go audience is connecting. * OS: Operating System. 15
17 Worldwide Location Highlights: Public Wi-Fi Locations Worldwide public Wi-Fi locations: Worldwide quarterly growth in public Wi-Fi locations: 682, , , , , , , , , YTD Q Q Q Q Worldwide public Wi-Fi locations grew by 186% since 2009 Worldwide public Wi-Fi locations declined by.09% from Q2 to Q due to database updates. Annual growth of.7% from Q to Q
18 Worldwide Location Highlights: Public Wi-Fi Locations Q3 Rank Country Q Number of Locations Q Rank % Change Public Wi-Fi business models: U.S. Q % 1 South Korea 186, % 2 United Kingdom 182, % 3 United States 143, % 4 China 104, % 5 France 35, % 6 Taiwan 24, % 7 Russian Fed. 16, % 8 Japan 15, % 9 Germany 15, % 10 Sweden 9, % 90.2 % Paid Free Public Wi-Fi business models: Worldwide Q % 77.2 % Paid Free Free public Wi-Fi locations saw an 8.6% increase from 83.0% in Q2 to 90.2% in Q3* U.S. free Wi-Fi hotspots have significant growth over the last year from 81.3% to 90.2%, an 11% increase**. South Korea remained in the #1 spot for the fourth quarter in a row, despite not adding any new hotspots The U.K. came in second, with nearly as many public Wi-Fi hotspots as South Korea. The U.S. saw the largest increase in Wi-Fi hotspots, increasing 3.6% to 143,616. *Source: NinthDecimal, Q **Source: NinthDecimal, Q
19 The Q3 Insights Report highlights recent mobile market audience usage trends offering advertisers insights they can apply to their mobile strategies and campaigns. This quarter focused on the Consumer Packaged Goods vertical. NinthDecimal is the leading location-powered mobile advertising and data platform. Used by major retailers and marquee brands across verticals, NinthDecimal leverages proprietary historical and present location data to engage advertisers desired audiences across all mobile devices at scale. Our ROI-driven approach and unique data platform integrates our Wi-Fi and mobile location big data to deliver true one-to-one mobile audience targeting at four times higher performance over traditional mobile targeting or geofencing. NinthDecimal has been an innovative leader in evolving mobile advertising and delivering mobile audiences since Today our ad technology is powered by our location big data platform of over 20 billion location tags from more than 850 million devices. Launching this quarter is the market s first Mobile Ad Effectiveness Benchmark, which leverages NinthDecimal s recently announced Location Conversion Index (LCI ), the mobile industry s most accurate drive-to-location metric. In this report we measured the effectiveness of our Q3 drive-to-location campaigns across several verticals. NinthDecimal s LCI offers marketers the ability to measure the ROI of their mobile spend by providing the actual increase of in-store visits directly attributed to their mobile ad campaign. Methodology: NinthDecimal s Mobile Audience Insights Report research is based on data compiled from a survey of more than 1,400 randomly selected mobile users, as well as the billions of data points from NinthDecimal s proprietary Wi-Fi and mobile advertising platform. Location Conversion Index measures ROI by finding the normal visit rate for the general population, then comparing it against audiences both exposed and not exposed to mobile campaigns in order to measure incremental store visits. The survey data was collected in September 13 while the platform data analyzed and Mobile Ad Effectiveness Benchmark results were from Q Quarterly public Wi-Fi location rankings and business model distributions are based on the final day of the quarter.
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