commerce

iOS Drives The Vast Majority Of E-commerce Mobile Traffic

Source: https://intelligence.businessinsider.com/welcome

iOS users are much more active on their devices than Android users, judging by traffic to U.S. e-commerce websites.

iOS accounted for over 70 percent of e-commerce websites’ mobile traffic last quarter, according to Monetate, which includes international visitors in its data.

Android, with a commanding 65 percent of global mobile platform market share last quarter—more than three times that of iOS— drove a relatively weak 23 percent of traffic. 

Apple’s strength is partly the result of the iPad’s continued dominance in the tablet market. The iPad accounted for 89 percent of tablet traffic and is the largest single driver of mobile traffic, reflecting tablets’ strength as a consumption device.  

However, even among smartphones, which drive more overall traffic than tablets, the iPhone drove 61 percent of e-commerce traffic last quarter to Android’s 38 percent. (Android had a 72 percent global smartphone market share to the iPhone’s 14 percent.)   

It’s unclear why Android users are so much less active on their devices, but it is probably also why app developers make four times as much money on iOS and significantly favor the platform.

Ecommerce Traffic By platform

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Wednesday, November 28th, 2012 news No Comments

Mobile Traffic To E-commerce Sites Doubled In The Past Year

Source: https://intelligence.businessinsider.com/welcome

Smartphones and tablets continue to drive an increasing share of e-commerce traffic.  

According to Monetate, mobile accounted for 18 percent of e-commerce traffic in the third quarter, up from 8 percent a year prior.

Smartphones drove a larger share of traffic than tablets, which reflects their increased penetration and perhaps the popularity of “showrooming,” when consumers use their smartphone in-store to compare prices.

Retailers, both online and brick-and-mortar, have to heed consumers’ changing shopping habits. According to IBM, mobile accounted for 16 percent of Black Friday online sales this year, up from 9.8 percent a year ago.

(For more information on mobile commerce, and how brands can win, read our special report.)  

Ecommerce Traffic By Device

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Tuesday, November 27th, 2012 news No Comments

Guess What Percent Of Black Friday Online Sales Came From Twitter Referrals?

Source: http://www.businessinsider.com/black-friday-online-sales-from-twitter-referrals-2012-11

New Twitter Logo

What percent of online sales on Black Friday do you think came from Twitter referrals?

How about Facebook?

While you’re pondering those questions, here are some other factoids from a report on Black Friday online sales by IBM:

  • The average Black Friday online shopper bought 5.6 items per order. That’s down 13% from last year. It’s also down 40% from Friday, November 16th, a week earlier. Hard to know what to make of that.
  • The average shopping “session” length was 6 minutes and 39 seconds. That’s down about 10% from last year. Compare that to the average hellish shopping session in a physical store, and you’ll see why ecommerce is continuing to grow as a percent over overall retail sales.
  • The “conversion rate” of online shoppers–the percentage of those who visited the site who actually bought something–was 4.58%. That’s up 9% from last year.
  • Mobile devices (smartphones and tablets) accounted for 16% of sales. That’s up from 10% last year.
  • Mobile devices accounted for 24% of site traffic. That’s up from 14% last year.
  • iPads accounted for 10% of site traffic, up from 5% last year.
  • iPhones accounted for 9% of site traffic, up from 5% last year.
  • Android phones and tablets accounted for 5.5% of site traffic, up from 4% last year.

The key observations here would seem to be:

  • Mobile is ! continui ng to grow rapidly as a percentage of traffic and sales, but it’s not taking over by any means.  6 years into the smartphone era, with smartphones now accounting for more than 55% of U.S. handsets, traffic to mobile sites (including traffic from tablets) is still less than 25% of overall traffic.
  • Apple devices continue to crush Android devices in terms of commerce engagement. Android users just don’t seem to do all that much with their gadgets.

And now to social referrals…

It wasn’t long ago that many people were arguing that Facebook was eventually going to be bigger than Google. Word of mouth, after all, is the most powerful form of marketing known to man. And people lived on Facebook, so they would soon be shopping on Facebook. And so forth.

Well, so far, anyway, that ain’t happening.

  • Only 0.68% of Black Friday online sales came from Facebook referrals–two-thirds of one percent. That was a decline of 1% from last year.

And how about Twitter?

A couple of years ago, people were excited about Twitter’s potential as a commerce platform, too.

But Twitter’s impact on ecommerce, it seems, is zero.

Not “basically zero.”

Zero.

  • Commerce site traffic from Twitter accounted for exactly 0.00% of Black Friday traffic. That was down from 0.02% last year.

So much for the idea that Twitter or Facebook’s business models are going to have much to do with commerce.

SEE ALSO: Here’s Why You Will Instantly Dump Your Cable Company To Get Google Fiber

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Monday, November 26th, 2012 news No Comments

Facebook Has 126 Million Mobile-Only Users

Source: https://intelligence.businessinsider.com/welcome

An increasing number of Facebook’s users are coming online exclusively through mobile devices. According to the company’s latest financial statements, the number of mobile-only Facebook users rose to 126 million at the end of the third quarter, up from 102 million a quarter prior.

Mobile-only users also account for a larger share of new mobile users. Mobile-only users were 39 percent of new mobile users added in the quarter, up from 35 percent in the second quarter.

Expect the proportion of mobile-only new users to keep rising, for two reasons: the growth of smartphones in the developing world, and increased access to Facebook through feature phones.

As Quartz reported, Facebook joined with carriers to roll out a text-only version on feature phones worldwide. Facebook Zero allows consumers to access Facebook without incurring data charges.

Facebook’s next billion users will likely include a substantial number of mobile-only consumers, raising the stakes on mobile monetization efforts. In terms of Facebook Zero, mobile advertising is not the most likely avenue to monetization. Text ads would be difficult to integrate. Also, audiences on feature phones aren’t likely to entice major brands. As Quartz points out, other strategies might include commerce or micropayments.

Facebook Mobile-Only

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Friday, October 26th, 2012 news No Comments

Facebook Has 126 Million Mobile-Only Users

Source: https://intelligence.businessinsider.com/welcome

An increasing number of Facebook’s users are coming online exclusively through mobile devices. According to the company’s latest financial statements, the number of mobile-only Facebook users rose to 126 million at the end of the third quarter, up from 102 million a quarter prior.

Mobile-only users also account for a larger share of new mobile users. Mobile-only users were 39 percent of new mobile users added in the quarter, up from 35 percent in the second quarter.

Expect the proportion of mobile-only new users to keep rising, for two reasons: the growth of smartphones in the developing world, and increased access to Facebook through feature phones.

As Quartz reported, Facebook joined with carriers to roll out a text-only version on feature phones worldwide. Facebook Zero allows consumers to access Facebook without incurring data charges.

Facebook’s next billion users will likely include a substantial number of mobile-only consumers, raising the stakes on mobile monetization efforts. In terms of Facebook Zero, mobile advertising is not the most likely avenue to monetization. Text ads would be difficult to integrate. Also, audiences on feature phones aren’t likely to entice major brands. As Quartz points out, other strategies might include commerce or micropayments.

Facebook Mobile-Only

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Friday, October 26th, 2012 news No Comments

Facebook Has 126 Million Mobile-Only Users

Source: https://intelligence.businessinsider.com/welcome

An increasing number of Facebook’s users are coming online exclusively through mobile devices. According to the company’s latest financial statements, the number of mobile-only Facebook users rose to 126 million at the end of the third quarter, up from 102 million a quarter prior.

Mobile-only users also account for a larger share of new mobile users. Mobile-only users were 39 percent of new mobile users added in the quarter, up from 35 percent in the second quarter.

Expect the proportion of mobile-only new users to keep rising, for two reasons: the growth of smartphones in the developing world, and increased access to Facebook through feature phones.

As Quartz reported, Facebook joined with carriers to roll out a text-only version on feature phones worldwide. Facebook Zero allows consumers to access Facebook without incurring data charges.

Facebook’s next billion users will likely include a substantial number of mobile-only consumers, raising the stakes on mobile monetization efforts. In terms of Facebook Zero, mobile advertising is not the most likely avenue to monetization. Text ads would be difficult to integrate. Also, audiences on feature phones aren’t likely to entice major brands. As Quartz points out, other strategies might include commerce or micropayments.

Facebook Mobile-Only

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Friday, October 26th, 2012 news No Comments

Here’s How Consumers Are Shopping With Their Phones

Source: http://www.businessinsider.com/bii-report-heres-how-consumers-are-shopping-with-their-phones-2012-9

shopping mobile

Mobile devices are playing an increasingly large role in commerce.

In a special report out from BI Intelligence, we analyze patterns around all types of mobile behavior, including how people use their phones to shop.

Access The Full Report By Signing Up For A Free Trial Today>>

So, how are consumers using their phones in the shopping process? 

The report is full of charts and da! ta that can be easily accessed, downloaded, and put to use.

In full, the report also looks at:

To access BI Intelligence’s full report on Mobile Usage, sign up for a free trial subscription here.

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Tuesday, September 11th, 2012 news No Comments

The App Store Era’s Real Success Story

Source: https://intelligence.businessinsider.com/welcome

Mobile gaming is one of the fastest-growing categories in the sector, led by Apple’s iOS platform and Google’s Android. In particular, social mobile gaming, enabled by always-connected smartphones and the “freemium” revenue model, is particularly strong.

Huge opportunities exist both for small, independent developers and large, established gaming companies. But despite recent momentum, it could be many years before mobile gaming overtakes console gaming in revenue.

The Big Picture

Videogaming is a large and growing industry. Global revenue from videogame software is expected to reach $70 billion worldwide, up from $52 billion in 2011, according to research firm DFC Intelligence. Mobile is expected to contribute 25 percent of that revenue, with PCs generating 39 percent and console-based gaming generating 35 percent.

State Of The Art

Gaming dominates today’s smartphone app economy. In a recent check of Apple’s iPhone App Store, games represented 55 percent of the top 200 paid apps, 33 percent of the top 200 free apps, and 70 percent of the top 200 highest-grossing apps—by far the biggest category. Similarly, in a recent check of Google’s Play store for Android, games represented about 75 percent of the top 200 highest-grossing apps.

iPhone games charts

Of these highest-grossing games, the majority are free, generating revenue through in-app commerce of virtual goods. On the iPhone, for instance, almost 75 percent of the top 140 highest-grossing games were totally f! ree to d ownload, generating all of their revenue through in-app purchases. (Note: Apple does not include advertising revenue and non-iTunes revenue in its calculations.)

The precise amount these apps earn varies by app and by day, but top-10-grossing iPhone apps regularly generate $50,000 to $200,000 in sales per day, a leading app publisher tells us. For more, see the BII report, “How In-App Commerce Drives App Store Success.”

Top-grossing games in each store cover many genres, including collectible virtual cards (Mobage’s Rage of Bahamut), simulations (EA’s The Simpsons: Tapped Out), cards/casino gaming (Poker and Slots by Zynga), social turned-based games (Zynga’s Matching With Friends and Scramble With Friends) and car racing (NaturalMotion’s CSR Racing). Minecraft, a popular computer game, also has top-20 grossing apps in both the iPhone and Android app stores.

Who’s Playing?

One of the driving forces behind mobile gaming is that its audience is broader than hardcore PC or console gaming: It’s attracting a younger and more female audience than traditional gaming, according to a 2011 report from Flurry, a mobile analytics company. That said, the average mobile social gamer also earns over 50 percent more money than the average American, is more than twice as likely to have a college degree, and is more likely to be white or Asian, according to Flurry’s research. The mass-market appeal means mobile gaming has a larger potential audience than PC or console gaming. (More demographic info here from Moco! Space. Also, see this BII chart.)

A Challenge And Opportunity For Incumbents

Mobile gaming has already proven to be a big opportunity for new players like Rovio (of Angry Birds fame) and established gaming firms.

Many of the big videogame firms, including Electronic Arts and Zynga, already have a solid foothold in mobile. But despite a larger potential audience and relative success in the form of multiple hits in the top-grossing lists, mobile still lags in revenue. That’s partially because mobile games cost less, and partially because social games monetize worse on mobile than on the web.

Electronic Arts, for example, generated just 7 percent of its overall revenue from mobile last quarter. But that represented 21 percent year-over-year growth, EA’s second-fastest-growing category after PC gaming. (EA overall declined 4 percent year-over-year. All figures citing GAAP revenue.) Still, the majority of EA’s revenue still comes from Xbox and PlayStation games sold in retail boxes.

EA revenue by type charts

Zynga did not disclose its mobile revenue, but said its mobile footprint increased fivefold year-over-year to 33 million daily active users. Executives admitted that its mobile games monetize poorly relative to web games—generally less than half the r! ate. But they also said that game mix plays a role, adding that one game—Zynga Poker—monetizes as well on mobile as on the web. (“We see no structural reason that mobile can’t monetize as well as the web in the long run.”)

Zynga’s March 2012 purchase of Draw Something and its publisher OMGPOP, however, highlights another trait of the mobile gaming ecosystem: The speed at which a game can become a hit and also lose its momentum. A look at Draw Something’s long-term grossing ranks in the iPhone App Store (via App Annie) and Facebook active user charts suggest Zynga purchased the game/company at the very peak of its popularity.

The question is whether established game publishers will be able to grow mobile revenues fast enough to compensate for declines elsewhere, or if they’ll be leapfrogged by newer, mobile-first and mobile-focused rivals. So far, it’s too early to tell.

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Tuesday, September 4th, 2012 Uncategorized No Comments

Uh Oh! Amazon Researchers Say Pinterest Doesn’t Generate A Lot Of Sales (AMZN)

Source: http://www.businessinsider.com/zappos-labs-pinterest-monetize-2012-8

Zappos Pin Pointing

Zappos Labs, the research arm of the Zappos online apparel site, has been experimenting with Pinterest—and the results are not encouraging.

Will Young, director of Zappos Labs, told Bloomberg that Pinterest users are far more likely to share a purchase than Twitter or Facebook users—but that shared items generate far less revenue than Twitter or Facebook.

This is a big problem for Pinterest, because the whole idea of the site is that it’s supposed to be better at monetizing social activity than Twitter or Facebook.

Young told Bloomberg that Zappos customers were 13 times likelier to share an item they bought with friends on Pinterest than on Twitter, and 8 times likelier than on Facebook.

But a post on Twitter generated far more revenue—$33.66 an order—than Facebook, at $2.08 an order, or Pinterest, at 75 cents an order.

That’s great news for Twitter, which will surely tout these figures as it makes a push for retail advertisers.

But it’s kind of bad news for Pinterest, which recently raised $100 million at a $1.5 billion valuation on the premise that its site—which is all about sharing beautiful images of things to buy—should be good at this kind of social commerce.

It’s not great news for Facebook, either, which has ambitions to make commerce a bigger part of the site than it is today.

!

A Pi nterest spokesperson whom we alerted to the study promised to look into it. We’ll update if we hear more.

One note: Amazon owns Zappos and Amazon.com is a rival of Rakuten a Japanese e-commerce giant that is also is an investor in Pinterest.

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Tuesday, August 28th, 2012 news No Comments

Rakuten Strategy In Pinterest Coup

Source: https://intelligence.businessinsider.com/welcome

social media traffic referrals

The announcement that Pinterest raised a lot of money at a billion-plus valuation was expected; less expected was the name of the lead investor: Rakuten, the Japanese e-commerce giant. 

This is a brilliant move for everybody involved. Here’s why:

  • Pinterest is building a monetization strategy based on driving ecommerce referrals: if you pin something you or someone else who follows you can buy it, and Pinterest gets a referral fee. From what we’ve been told, however, this still drives minimal revenue as Pinterest gets that referral income from a third party company, and because a lot of Pinterest activity is “aspirational” (you might “pin” a $20,000 wedding dress because it’s fabulous, but you’re not going to buy it). Turning Pinterest into a monetization engine would therefore require product optimizations, such as e.g. allowing brands to build stores inside Pinterest. That being said, Pinterest clearly has a lot of potential. As you can see from the chart above, from Capstone Investments’ Rory Maher, Pinterest already drives as much traffic as Twitter despite being years younger.
  • This is where Rakuten comes in. Rakuten not only has great e-commerce experience, being the biggest e-commerce company in Japan, it has experience at a very specific kind of e-commerce; what’s known as “B2B2C.” Rakuten’s website is like a “shopping mall” where thousands of small businesses set up storefronts that Rakuten manages and drives traffic to. Rakuten is not like Amazon, in that it’s not a store, but it’s also not like eBay, in that it’s not a pure marketplace. It’s something inbetween, that’s known as B2B2C, that allows businesses to sell to consumers via an intermediary. What’s more Rakuten, starved for growth in its home country, has been on an international warpath, buying leading European and American commerce startups for hundreds of millions of dollars and investing heavily in China.

In other words, Rakuten could teach Pinterest how to become this B2B2C powerhouse; how to become a fee-collecting intermediary for social commerce by figuring out how to connect shoppers and businesses and brands. This would be extremely profitable for everyone involved.

RELATED: Here’s Why Facebook Stores Aren’t Working →

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Thursday, May 17th, 2012 news No Comments

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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