Mobile’s Hierarchy of Needs; Demands of the Tech-Savvy
by Hugh Williams on 30th Mar 2017 in News
ExchangeWire Research’s weekly roundup brings you up-to-date research findings from around the world, with additional insight provided by Rebecca Muir, head of research and analysis, ExchangeWire. In this week’s edition: Mobile’s hierarchy of needs; Demands of the tech-savvy; Guidelines driving top mobile ads; and Offline vs online retail.
Mobile’s hierarchy of needs
Apps make up 82% of total mobile minutes in the UK, new research by comScore suggests. APAC leads the way here, with apps representing 99% of mobile minutes in China, and 90% in Indonesia, while the US is at 87%.
The research also finds that UK consumers tend to use news apps most in the early morning (between 7am-10am), and social media apps later in the day (from 8pm-12am). Mobile is the go-to destination for most video viewers, representing 80% of YouTube video minutes for female audiences aged 18-34. Interestingly, male audiences of the same age only use mobile for 67% of their YouTube video minutes.
Referencing Maslow’s ‘hierarchy of needs’, the report suggests that food retailers, health, and apparel brands are those that need mobile most (food purchasing on mobile has outpaced the growth of general mobile usage).
Despite being high-value purchases, travel minutes are also shifting in the direction of mobile. The refined user experience of apps is growing their share at an even faster rate. In 2016, mobile made up 47% of digital travel category minutes, up from 42% in 2015.
Demands of the tech-savvy
Brick and mortar stores have to do more to satisfy tech savvy shoppers and improve the in-store experience, according to new research by Apadmi.
Nearly half (46%) now expect stores to offer free WiFi; and one-in-five shoppers want retailers to use technology that will provide a more tailored shopping experience while they browse in-store – like an app that notifies them of nearby offers or provides product recommendations or reviews.
Speed and convenience are top priorities for today’s high street consumer. Being able to pay for items through an app, to avoid queues, appealed to over a quarter of shoppers surveyed in the report.
If retailers cannot implement 'just walk out' technology, where customers can purchase items through an app without the need for cashiers, like that used by Amazon Go, consumers would, at a minimum, like to purchase products through an app and then pick up their items in-store (26%).
With one-in-ten UK consumers downloading more retail apps in the last 12 months than they did in the previous year, the research highlights the shift towards online and mobile technology and the need for retailers to now offer a unified, omnichannel experience.
Guidelines driving top mobile ads
The most effective mobile ads adhere to ten guidelines, according to a new study from On Device Research and Celtra.
The guidelines are as follows:
1) Logo presence on every frame is crucial
2) A human presence can engage
3) Product shots catch the eye
4) Placing branding at the top of the creative boosts ad recall
5) Be cautious with dual branding, as it can distract and confuse
6) A single clear message beats a text-heavy ad overloaded with information
7) Video grabs the user’s attention
8) Inject a little humour into your creative
9) A bit of interactivity holds the user’s attention
10) If you want to drive purchase, then, unsurprisingly, having a strong call to action helps
When applied to ODR’s entire database, it was discovered that two-thirds of mobile ads tested adhere to fewer than six of these guidelines. The research suggests that mobile ads get bad press – 60% of clicks on mobile banner ads are accidental, and 71% say that at least half of the ads they see disrupt their mobile experience. Following these guidelines can help solve this.
Offline vs online retail
Although traditional retail is far from dead, e-commerce is on the rise, according to a new whitepaper by Statista.
While e-commerce now makes up 8% of total US retail, offline retail still represents the overwhelming majority of sales (92%). However, this figure has fallen from 95% in 2012. Amazon’s popularity is crucial to this. More than a quarter (28%) of global respondents say they buy less offline because of the company. Its popularity is highest in Japan (39%) and the US (37%).
The more generic a product is, the greater its potential for e-commerce. Over two-thirds (68%) prefer to purchase books electronically, while only 24% will buy clothing and apparel in the same manner. The ability to shop 24/7 is more important than the power to compare prices in driving e-commerce’s popularity (58% vs 54%), while the main advantage of offline retail is the ability to see and touch items before buying (58%).
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