Computers led with an AOV of $115.74, compared to $113.15 for tablet tablets and $112.73 for smartphones.
[Editor's note: Monetate's previous report covering Q1 had found tablets converting at a higher rate than computers, while data from this latest report indicates that the opposite was true for Q1. The discrepancy owes to a different random sample of clients being used for each quarterly report.]
Among tablets, the iPad continued to boast the highest conversion rate (2.6%) during the second quarter, with Android (2%) also out ahead of the Kindle Fire (1.6%). The iPad also sported the highest average order value ($114.18), outpacing Android ($101.22) and Kindle Fire ($91.84).
The iPhone re-assumed the lead in conversion rates among smartphones, just exceeding 1%, and putting some distance between itself and Android (0.88%) and Windows (0.77%) phones. i! Phone tra! ffic also ended up with the highest average order value, of $114.45, followed closely by Windows ($112.36) and Android ($109.52).
All told, smartphones (9.7%) and tablets (12.4%) together accounted for more than 1 in 5 e-commerce visits during Q2, up from about 15% a year earlier. In the past year, tablets have overtaken smartphones in terms of e-commerce traffic share, with the gap between the devices steadily increasing.
The iPad continues to dominate tablet e-commerce traffic to the tune of 90.6% share, while the iPhone also retains its lead (62.7% share) of smartphone visits.
Similarly, while 36% regularly conduct in-store searches when looking at products priced at less than $50, 62% do so for products priced at $250 and up.
Besides price point, the study also finds that the frequency of in-store searches ranges significantly by product category. Respondents most commonly conduct in-store mobile searches for electronics and appliances (83% doing so almost always or frequently) and books and music (67%), with fewer do so for automotive (52%) and food and beverage (50%) products.
There are some intriguing results in the study’s section regarding the discount rates at which M-shoppers would consider buying online (these responses limited to US respondents). Almost 6 in 10 respondents would consider buying online if they could get a 10% discount on a $500 item. But a 10% discount on a $200 item would only persuade 50% to consider buying online, while swaying only 28% of those shopping for a $50 item. These results align with previous research from parago, which found that for an equal discount rate, consumers would be about 20% more likely to switch to an alternative online option (in this case Amazon) that provides larger dollar savings. The results from that study suggested that the focus on dollar savings over discounts could be attributable to a calculus regarding shipping costs.
These trends have held for some time, with search easily besting the other sources for traffic in Q1 and Q4 2012, and email sporting the best conversion rates. The latest data suggests that conversion rates are declining for search traffic, while remaining generally steady for email and social. In terms of e-commerce visits, Q2 marked the lowest share in at least 5 quarters for both social and email.
Meanwhile, search continues to have a leg-up on email and social in one other metric: average order value. During Q2, average order value for search traffic was $111.18, its highest point in several quarters, ahead of email ($99.93) and social ($86.80). While social trailed in this regard, it should be noted that its result this past quarter represented a significant 13% hike from an average value of $76.59 in Q1.
- The add-to-cart rate was significantly higher for traffic referred by email (1! 0.73%) th! an search (6.81%) and social (3.37%).
- Average page views was slightly higher for email than search traffic (8.84 and 8.71, respectively), both close to double social’s average (4.82).
Ad sales declined have been particularly pronounced in some industries. During the first quarter, for example, sales wer down by almost 20% year-over-year for the business, marketing and advertising (-19.97%), aviation, aerospace and military (19.75%) and electronic engineering (-19.62%) sectors. In fact, of the 22 sectors measured, only 7 posted increases. Only one sector – travel, business conventions and meetings – registered increases in ad sales throughout the first 4 months of the year.
Print continues to be one of the key B2B media and information revenue sources behind trade shows and events, but its contribution to overall revenues is declining. Last year, print accounted for 29% of revenues, down from 37% in 2008.
Smartphones alone account for 50% of online time for the two above-mentioned groups. Interestingly, while smartphones only account for a relatively small 25% of online time for Americans aged 50 and older, tablets grab 16% share, the highest among the age groups.
The share of internet time represented by mobile devices differs greatly from one category to the next. For example, together they account for just 24% of time online with the automotive category and 32% of time spent with TV sites (an outsized 20% of which is on tablets). By contrast, two-thirds of social media time goes to smartphones and tablets, as does 82% of online gaming time and 92% of online radio time.
The US’ “digital universe,” referring to the number of adults going online, is 194 million strong per month, per the report. Of those, about 63% (122 million) use both a PC and a mobile device, while PC-only! users nu! mber 58 million (30% share) and mobile-only 14 million (7% share). Those figures are heavily influenced by older internet users. While 17-22% of internet users aged 18-49 are PC-only, that figure jumps to 48% of those aged 50 and older.
While only 17% of online women aged 25-49 are PC-only, a greater proportion of online males of that age are so-called “screen jumpers” (mobile and PC users), at 74% share. That’s because a significant 14% share of women aged 25-49 are mobile-only.
Nielsen’s most recent study indicates that the 18-24 group, for example, watched a weekly average of roughly 21-and-a-half hours of traditional TV during Q2 2013, exactly one hour less than they did in Q2 2012. That equates to a little less than 9 minutes per day.
Of course, compared to two years ago (Q2 2011), the drop-off is more stark, reaching nearly 24 minutes per day, almost the length of a sitcom episode.
Traditional TV viewing by 18-24-year-olds has now dropped on a year-over-year basis for at least 6 consecutive quarters. Here’s what that decline looks like:
- Q2 2013 vs. Q2 2012: 9 minutes per day
- Q1 2013 vs. Q1 2012: 11 minutes per day
- Q4 2012 vs. Q4 2011: 20 minutes per day
- Q3 2012 vs. Q3 2011: 17 minutes per day
- Q2 2012 vs. Q2 2011: 15 minutes per day
- Q1 2012 vs. Q1 2011: 13 minutes per day
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
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