As we're all no doubt aware, the era of the mobile consumer has well and truly arrived. There are roughly 2,000 posts a day* about it, looking at the shift to mobile use for search, the growing reliance on mobile as a connective device, the need to reach consumers where they're at - and predominantly, they're on mobile devices.
We get it, right? Mobile is crucially important, and that importance is expanding every day as people become more comfortable with mobile devices and more willing to make purchases via mobile, etc.
Facebook, of course, is also well-aware of such trends, and they've been working to position their platform as the place for mobile marketing. Facebook introduced 'Instant Articles' earlier this year, with a key selling point for publishers being faster load time, and thus, an improved experience for their mobile audiences. Facebook's new ad offering 'Canvas' is effectively a mini, branded mobile app within a Facebook ad. Facebook's using its unmatched reach and excellent mobile functionality as a key draw for advertisers, and now, The Social Network has released new data on the mobile shift - but the figures highlight a few different angles on mobile trends that are not as commonly known. While, on the surface, the data may show a clear trend, Facebook's dug a little deeper to look at the logic behind some of the more widely covered shifts.
It's Not the Size of the Basket...
In a new post on the Facebook IQ Insights blog, Facebook's Direct Response Product Marketing Director, Kelly Graziadei, and Facebook IQ's Head of Consumer Insights Research, Helen Crossley, examine the three of the most common questions marketers ask about how to succeed in mobile commerce. Those questions are:
- How can I increase mobile basket sizes?
- Should I invest in an m-site or an app?
- What should I expect in the future in terms of m-commerce?
Crossley offers some great insights into the questions, and looks at not just the surface trends, but the underlying reasons as to why they exist. For instance, on the first question of increasing mobile basket size - while Facebook's internal data definitely does reflect that people buy more, on average, via desktop, Crossley suggests there's more to it than that:
"Several different factors account for the lower basket size on mobile phones. For instance, there's a good number of people who buy on mobile phones who don't have daily access to tablets and desktops, so they're likely to have less disposable income and are probably spending less. There are also a good number of quick, low-consideration transactions that are happening on mobile phones that would be lower in basket size no matter where people purchase."
Crossley then notes that their research has suggested it's not so much that people are more willing to spend more on desktop than mobile, it's more about the different audiences on both and factoring in those variances in order to understand the purchase paths of your audience. Crossley notes that in a test, where the options were controlled so users were buying from the same categories on desktop and mobile, the basket sizes were on par, suggesting it's not the device that's the differentiating factor in the process, but the options available, and the audience you're reaching.
Crossley advises marketers to "stop obsessing about mobile basket sizes and start focusing on the friction points that are stopping some people from buying on mobile at all."
"Once you get more people shopping on mobile, that's what's going to increase those mobile basket sizes," Crossley says.
Mobile Site versus App?
Crossley also addresses the common question about whether brands should invest in a mobile site or an app.
"In looking specifically at mobile purchases, we found that 58% are on m-sites and 42% are on apps. When we examined basket sizes on an m-site versus an app, we found people spend 43 cents in app to every $1 spent on m-site."
Despite this, Crossley says, a recent survey also found that shoppers prefer apps over m-sites because of the improved shopping experience in app, including the ability to hold payment information, which streamlines the process.
So people like apps more, yet spend more on m-sites. Confusing right?
"Again, this is only half of the story. In examining the number of transactions on m-sites versus in apps over the course of 6 months, we found that there are fewer transactions on m-sites and more on apps for people who are frequent mobile shoppers.
If someone's a frequent shopper, they're more likely to be an in-app shopper. If someone is coming to a retailer for the first time or only buy once in a while, they're more likely to be an m-site shopper."
This finding makes perfect sense - people who are repeat buyers and are looking to make regular purchases, they're going to be more attuned to your offerings and business, and thus, more likely to interact via an app. People making one-off purchases, however, who have no need to be staying in touch or getting regular updates from your business, are more likely to go with an m-site.
While the logic is relatively clear, it's interesting to see the main numbers contextualized, providing more understanding beyond the wider trends alone. This is similar to stats on app use more generally - research by Nielsen released earlier this year showed that people are now spending more than 85% of their time on mobile devices in apps, which is a strong case for brands developing their own apps, right? Well maybe not - further examination shows that while apps are where people are spending their time, only five apps, on average, are seeing significant use. The context is just as important as the data in understanding the actual trend.
Crossley's advice to marketers considering an m-site or app?
"I would say to determine your primary goal. Is it about driving customer acquisition? Or is it about driving frequency and loyalty? Use the answer to direct your investment in your mobile commerce experience."
On the Future of M-Commerce
Looking into the future of mobile marketing, Crossley says that within 5-10 years everyone will be a mobile shopper.
"Millennials, who make up the Thumb Generation that grew up swiping their thumbs across screens, are going to continue to drive this growth. The Thumb Generation is more likely to conduct commerce-related activities on their mobile devices than the older generations who came of age exerting control through a mouse or a remote. For instance, 83% of Millennials research products on their smartphone compared to 66% of Gen Xers (the Mouse Generation) and 25% of Boomers (the Remote Generation). 69% of Millennials buy products on their smartphone compared to 53% of Gen Xers and 16% of Boomers."
Crossley advises marketers to be aware of the trends, but also, to focus on the people behind them and look for correlations that are true to the nature of your customers and what people are looking for from your brand. Those wider trends are important, no doubt, and you can see from the above graphic that the influence of mobile is only set to increase, but it's important to also consider the context behind why people are doing things the way they are, and how they're looking to connect with your business.
*unconfirmed and totally made up stat