The Battle for Smartphone Supremacy

Ist THE BATTLE FOR SMARTPHONE SUPREMACY Consumers are relying more on their smartphones to engage with brands, consume content, and make purchases. In fact, visits to leading ecommerce websites from smartphones have more than doubled in just one year. Although a debate rages on about which smartphone is the most popular, market share has come down to a two-horse race between Google's Android and Apple's iPhone. Increase in website 103% traffic from smartphones (Q2 2011-Q2 2012) 2012 GLOBAL SMARTPHONE MARKET SHARE O ANDROID O IPHONE BLACKBERRY Some of the largest gains in ecommerce website traffic come from iPhones and Android smartphones. WINDOWS O OTHER 5.2% Annual increase in traffic from iPhones: 6% 61% 7.2% 85%% Annual increase in traffic Q507 from Android smartphones: 20.5% ONLINE SHOPPING WITH SMARTPHONES While the use of Android smartphones seems to dominate the rival iPhone, there's a different story unfolding for ecommerce businesses with the iPhone garnering a larger slice of total website traffic. SMARTPHONE SHARE OF TOTAL WEBSITE TRAFFIC: 12.45% 15.41% IРНONE IPHONE Q1 Q2 1.7% 3.31% 707 2012 ANDROID 2012 ANDROID In addition to these website visits coming predominantly from U.S.-based consumers, the traffic gains from iPhones likely can be attributed to the October 2011 release of the iPhone 4S, as well as AT&T's announcement around the same time that it would offer the old iPhone 3GS for free with a contract and data plan (later raising the price to 99 cents). SHOPPING ACTIVITIES OF SMARTPHONE USERS Besides making a purchase, consumer smartphone behavior ranges from taking and sharing product photos to searching for the nearest location of a store. SMARTPHONE SHOPPING ACTIVITIES 37% 35'% 35% 33% 34% Л0 33% 227 /o 26% $. Send pictures of products Look up product info by store Text/call friends/family Make a purchase Search for store Research Take a photo of product product and price AVERAGE ORDER VALUE BY SMARTPHONE USERS: When smartphone users make a purchase, the amount they spend rivals that of buyers using more traditional desktop or laptop computers. In fact, the average order value (AOV) for iPhone users is only 5% less than Apple desktop or laptop computers. I $97.49 IPHONE $97.16 ANDROID FOCUS ON MOBILE MARKETING U.S. consumers spend almost 1 in every 10 ecommerce dollars using a mobile device. With that in mind, online marketers should consider testing new tactics to attract and engage consumers on smartphones, ultimately converting them to valuable customers. MOBILE MARKETING TACTICS CURRENTLY IN USE 460 Mobile versions of websites 45% Mobile apps APP 35%0 Mobile versions of email Mobile messaging campaigns 3270 27% Location-based targeting Tip: 1 out of 3 smartphone users shares their location. Try targeting “visitor location in context," including distance to brick-and- mortar stores, state sales tax status, UPS and FedEx shipping zones, closest competitor, country, and more. monetate SOURCES: COMSCORE I EMARKETER I IDC I MONETATE EQ I SHOP.ORG iPhone is a registered trade mark of Apple Inc. Follow @Monetate on twittery