Brazilians and M-Commerce 2014
0 likes428 views
The document provides an analysis of mobile marketing and mobile commerce (m-commerce) in Brazil based on online surveys and discussions. It finds that while mobile devices are widely used to research products and prices, most consumers still prefer completing purchases on a PC due to perceptions of better interfaces, multi-tab browsing, and security. Mobile advertising is most effective when it provides interesting, personalized content, but users strongly dislike unauthorized ads. Top products for m-commerce are tickets, virtual goods, and food delivery, though safety concerns still present a barrier compared to online shopping via PC.
Brazilians and M-Commerce 2014
- 2. Index 1. Methodology 1. Used Methodologies 2. Who we talked to 2. Audience profile 3. Mobile marketing 4. M-commerce 1. Use of devices 2. Mobile purchasing 3. Safety 4. Future M-commerce 8. Conclusions
- 4. Used Methodologies 1 – Online Survey: • Tool used to obtain statistic relevant data that as a sample represent the universe to be analyzed. • For this study an online survey was applied with 17 closed end questions (including demographics) and duration of approximately 10 minutes. 2 – Online Community: • This methodology is recommended to explore and understand in depth the questions related to signs, motives, desires, incentives and barriers that are usually harder to get to in a rational way and require a more active approach.
- 5. Who we talked to 1- Online Survey: • Men and Women • Classes ABC (Brazil Criteria) • 15 to 65 years old • Location: Brazil (mix of different areas) • Who own mobile devices (either tablets or smartphones) • Who go online through these devices Sample: 450 people
- 6. Who we talked to 2- Online Community: • Men and Women • Classes BC • 21 to 32 years old • Who go online at least 4 times a week • Who go online through mobile devices • Locations: PR, RJ, SP, PE and RS. Sample: 10 people
- 8. Audience Profile 32 years old Is the average age of respondents 30% 38% 18% 14% 15 to15 26 to 35 36 to 45 46 to 65 40% 60% Base: 450 Surveys. Screener: 15 to 65 years old Age Groups:
- 9. Audience Profile SEC* Monthly Income 2% 12% 28% 34% 19% 5% A 1 A 2 B 1 B 2 C 1 C 2 5% 11% 38% 25% 12% 9% More than R$ 14.500 From R$ 7.250 to R$14.499 From R$ 2.900 to R$ 7.249 From R$ 1.450 to R$ 2.899 Up to R$ 1.449 Did not answer Base: 450 surveys. Screener: classes ABC. / *SEC determined based on the Brazil Criteria.
- 10. Audience Profile Location distribution: Base: 450 surveys.
- 11. Ownership of Mobile Devices 50% Own a smartphone + a tablet 96% 54% Smartphone Tablet Base: 450 surveys. Question: “Do you own any of the following devices?” (MA) Tablets are already part of more than half the audience’s lives
- 13. Mobile advertising is more negatively criticized than complimented on. Voice messages are the least liked among them, followed by banners within games and SMS.
- 14. Mobile Marketing Types of advertisement that are seen the most X audience opinion: 27% 47% 30% 26% 12% 33% 71% 73% 53% 70% 74% 88% 67% 29% Liked It Did Not Like It 85% 74% 66% 65% 44% 24% 5% SMS Website Banner App Banner Game Banner Voice Message/Call SMS Flash Bluetooth Base: 450 surveys. / Question: “Have you seen or received in your smartphone or tablet any of the following types of advertisement listed below?” (MA) / Question : “Thinking of the types of advertisement you have seen, which ones you liked and which you did not?” SMS is the most received mobile advertising format by the audience.
- 15. The most important issues regarding mobile advertising disapproval are: • Unauthorized advertising (mostly SMS) • Irrelevant content • The feeling of being invaded • The exaggerated frequency of those ads • Insecurity regarding virus contamination or hacking (especially with banners) Mobile Marketing – Negative Aspects Question: “Among the types of advertisement you DID NOT LIKE to see on your mobile device, what were the reasons not to like the format?” (MA) Unauthorized advertising is the main complaint about mobile advertising.
- 16. Mobile Marketing – Negative Aspects The reasons why the audience does not like each of the types of advertising: (multiple answers) SMS Base: 276 SMS Flash Base: 74 Voice Message/ Call Base: 173 Website Banner Base: 174 Game Banner Base: 216 App Banner Base: 207 “I did not authorize this type of advertisement” 72% 76% 68% 59% 60% 60% “The content was not interesting” 67% 57% 57% 56% 62% 62% “I have felt invaded” 68% 73% 70% 31% 44% 40% “The frequency for this kind of message is too high” 55% 32% 25% 57% 60% 61% “I was afraid I was getting a virus or being hacked” 39% 54% 26% 63% 59% 58% “There was no option to erase or close the ad” -- 45% -- 46% 58% 53% “The content was not personalized” 39% 39% 38% 39% 40% 39% “I thought the time was not good” 47% 41% 46% -- -- -- “The ad was not interactive” 34% 46% 35% 30% 32% 31% “It had a bad visual” 33% 35% -- 30% 41% 38% “I could not find how to interact with the ad” 24% 32% 24% 22% 23% 27% Question: “Among the types of advertisement you DID NOT LIKE to see on your mobile device, what were the reasons not to like them?” (MA)
- 17. Mobile Marketing - Compliments The most important approval aspects of mobile advertising were: • Interesting content • The option to erase or close the ad (mostly with banners) • Nice visual (banners) • Personalized content Question: “Among the types of ads you LIKED to see in your mobile devices, what were the reasons for liking them?” (MA) Interesting content is what makes people interested in mobile advertising.
- 18. Mobile Marketing - Compliments Reasons why the audience LIKES each type of advertisement: (multiple answers) SMS Base: 104 SMS Flash Base: 36 Voice Message/ Call Base: 23 Website Banner Base: 157 Game Banner Base: 75 App Banner Base: 87 “The content was interesting” 75% 50% 74% 66% 51% 56% “There was an option to close or erase the ad” 40% 44% 22% 66% 59% 47% “The visual was nice” 25% 33% -- 62% 61% 54% “The content was personalized” 33% 42% 22% 47% 33% 33% “I have felt like there was no real risk of viruses or being hacked” 41% 28% 26% 33% 40% 33% “The ad came in as a good opportunity for me time wise (I was actually thinking of buying the product or service)” 30% 25% 22% 45% 32% 25% “The ad had a level of interaction” 16% 22% 26% 45% 37% 33% “I actually authorized the ad to be displayed” 38% 25% 17% 22% 27% 24% Question: “Among the types of ads you LIKED to see in your mobile device, what were the reasons for liking them?” (MA)
- 19. Mobile Marketing - Interests Mobile Ads triggers mainly these actions: • Clicks • Interest on the product or service • Page views for the advertisers’ websites • Information seeking on the product or service Website banner is what makes audience engage the most though mobile devices. Question: “Considering all those ad types you saw on your mobile device, have you at least once got interested in the product or service advertised?” (MA) Clicking on the ad is the most commonly triggered action among consumers.
- 20. Mobile Marketing - Interests Actions based on interest for mobile ads: (multiple answers) SMS Base: 381 SMS Flash Base: 110 Voice Message/ Call Base: 197 Website Banner Base: 333 Game Banner Base: 292 App Banner Base: 295 “I have clicked on the ad” 20% 22% 13% 56% 23% 26% “I have gotten interested in the product or service announced” 18% 19% 11% 55% 23% 25% “I have viewed the announcer’s website” 16% 22% 12% 54% 19% 19% “I have searched more information on the product or service” 17% 15% 13% 50% 18% 22% “I have subscribed to get more content (Through Facebook likes, e-mails or SMS)” 14% 15% 8% 36% 13% 16% “I have bought or downloaded the product or service being advertised” 9% 7% 6% 36% 19% 20% “I have told a friend about it” 10% 14% 8% 32% 14% 14% “I have interacted with the ad” 9% 11% 10% 35% 12% 12% “I have emailed the advertiser” 9% 12% 5% 30% 8% 8% “I have called the advertiser” 10% 12% 10% 23% 3% 7% “I have texted the advertiser” 18% 18% 5% 10% 7% 6% Question: “Considering all ad types you saw on your mobile device, have you ever taken interest in a product or service advertised?” (MA)
- 22. Mobile devices are used a lot in the purchasing journey, although it is using a PC that shoppers usually finish the purchase.
- 23. 97% 96% 92% 79%81% 66% 26% 54%42% 37% 21% 22% Devices Usage Only 27% of those who use smartphones use it for shopping. Among tablet owners the number is bigger: 38%. Activities performed by the audience X devices used 98,4% 97,8% 92,2% 83,6% Seek information about products or services Price comparison for product or services Shopping Internet Banking Usage Base: 450 Surveys. Question: “What tasks do you perform with each device?” (MA) Smartphones and tablets combined are more used than PCs to seek information and for price comparison.
- 24. Devices Usage Reason for PC preference when it comes to shopping: • Easiness to browse • Better interface of shopping portals • The possibility to open multiple tabs makes price comparison easier. • The feeling of security. “Up until now I have never actually finished a purchase through the smartphone, although the device is one of the most used to decide what I want to buy: I research and compare prices” (Fernanda, 24) “I have already downloaded those deal-of-the-day website apps (such as Peixe Urbano) or price comparison (such as Buscapé or Bondfaro) but I rarely use them. I do not think they are so easy to use as the PC version. I say this because I really like to open multiple tabs at the same time to compare everything” (Gimene, 31) The PC is seen as practical, easy and safe for shopping purposes.
- 25. Mobile Shopping 57% 67% 2013 2014 60% 37% 32% 24% 10% 33% Store Website Paying Services (eg: Buscapé, Pay Pal, Pagseguro) App Store (eg: App Store, Google Play) Shopping App SMS (ex: SMS content on soccer, horoscope, etc.) Have never purchased anything Have shopped through mobile devices: The way mobile shopping happened: Base: 450 Surveys. / Question “How did you shop using your mobile device??” (MA) Source 2013: Research “Jovens brasileiros e o mundo mobile (Brazilian Youth and the Mobile World”, E.life and Pagtel, June 2013. Most purchases on mobile devices are made directly on store websites.
- 26. Mobile Shopping - Motivations 46% 40% 39% 30% 26% 25% 21% 15% 13% 11% 10% 9% "It is more practical" "I have seen an Ad elsewhere (PC, TV, Magazine, Newspaper,… "I have seen the Ad on a website/app/game on my mobile device" "The purchase for for the smartphone or tablet itself (apps, content)" "I use purchasing or payment apps" "Browsing is good" "I can compare and purchase all with the same device" "I have family of friends who have purchased" I have received the Ad through the smartphone" "I feel safer than purchasing through the computer or physical store" "The language used in the mobile device is simpler"" I am part of a fidelity program for mobile shopping" Reasons why audience decides to buy through mobile devices: Base: 300 Surveys. Questions: “Why did you decide to have this purchase (or purchases) through the mobile device?” (MA) The main motivation for shopping is practicality although advertisement can serve as a strong stimulus as well.
- 27. Mobile Shopping - Barriers 69% 43% 32% 29% 18% 12% 7% 7% 7% 1% "I would rather shop through the PC' "I don't think it is safe" "The website is either not mobile adapted or too small" "The screen is small" "The keyboard is confusing and not practical" "I think it is complicated" "I don't have a credit card" "I do not like to shop online, I like to go to the stores" "I have tried but have experienced problems or could not make it" "I was not aware of this possibility" Reasons why audience decides not to purchase through mobile devices: Base: 150 Surveys. Question: “Why do you not shop through your mobile devices?” (MA) Among those who have never purchased anything through mobile devices, most are actually online shoppers. Security and browsing experience were mentioned as barriers.
- 28. Mobile Shopping – Pros and Cons Advantages of shopping through mobile devices: • Practicality • Convenience • Possibility of comparing product price comparison within stores Disadvantages of shopping through mobile devices: • Internet speed and overall connection quality • Interface and browsing on mobile devices • Lack of good apps to research prices and purchase things online “3G connection and wi-fi tend to be unstable, so I am afraid it might happen to lost connection during the purchasing steps” (Fernanda, 24) “I think the purchasing apps still have a lot to be improved. Maybe in a couple of years it will be better” (Bruno B., 23) “There are still so many bugs on some apps, websites that are not mobile-ready. There is also the research and trust issues” (Larize, 25) A Speed of mobile connection is a concern when shopping through the devices.
- 29. Mobile Shopping- Products Products considered most suitable for mobile shopping and purchasing: LEIZURE AND CULTURE GOODS VIRTUAL ITEMS FOOD 61% Tickets 52% Electronics 55% Virtual Content (Online music, apps, digital books) 44% Food Delivery 47% Cultural Products (Books, CDs, DVDs) 36% Clothing and Footwear 18% SMS Content (Horoscope, soccer news) 25% Bar, Club or Restaurant Bill 26% Tourism (Plane tickets, hotels, packages) 33% Home Appliances 15% Virtual Currency (e.g.: Bitcoin) 15% Supermarket Purchases 13% Furniture and Decoration Base: 450 Surveys. Question “Which products or services do you think are most suitable for mobile shopping and purchasing?” (MA) Tickets and virtual content are the items considered the most suitable for mobile shopping and purchasing.
- 30. Loyalty Programs • The main advantage as seen by the audience is the possibility of exchanging the points for discounts in the next purchases or for gift-cards. • On the other hand, prizes can be unattractive and it may take a long while to get enough points. • Valuable discounts in tickets • Points take a long time to expire • Cost-effective • Valuable gif-cards • Easiness to get and exchange points • Easiness to transfer points, exchange them. • Practicality “I can be wrong, but I have the feeling that I do not spend enough to get a good amount of points to exchange for something nice, so it is a worthless task. I also get the impression that I would not find really interesting prizes when the time of the exchange were to arrive.” (Ivy, 29) Good part of the audience have heard of loyalty programs for online/mobile transactions but few of them are active users of them.
- 31. M-commerce is still seen as less safe than shopping online through the PC. A trustworthy sales point and look and feel of the website are still key for this security perception.
- 32. Safety • The audience think of online shopping done through the PC as trustworthy because it is easier for them to see that they are in a safe environment – lock symbol and https domains are part of that readable codes. • Shopping through unknown sites/apps, those they haven’t used before, are avoided. • Reclame Aqui is an important source of sales points reputations. • The interface for shopping portals for mobile is influential on the purchasing decision. “Since we are supposed to have caution when buying things through the smartphone I avoid sites I am not familiar with already” (Bruno B., 23) “I believe that the unsafe aspect for the mobile comes from the lack of minimal certification, on the internet most websites show their level of security and even use add-ons to ‘keep the environment secure’” (Giovani, 21) Safety is a barrier for m-commerce.
- 33. Safety Key factors that make/would make audience more confident when it comes to purchase security: Trusting the brand for the website, app or app store. The types of payment available Security terms published on the website or app. Inserting a personal password. Visual recognition through image. 80% 47% 37% 15% User reviews on the store, product or service. Biometrics recognition (Digital Print). Voice recognition. 56% 39% 20% 12% Base: 450 Surveys. Question “Which factors make (or would make) you feel safe when mobile shopping?” (MA) Trusting the sales channel is what most makes the consumer feel safe when purchasing through mobile devices.
- 34. Safety What can be done to improve the perception of security among consumers: • Security certification for mobile devices (the equivalent to locks on the browsers). • Positive evaluation from peers. • Improvement on the interface of shopping portals for mobile. • Lack of pop-ups make the website feel more trustworthy and makes browsing easier. “Websites with a lot of ads/links do not seem reliable, mainly those with weird pop-ups. So I look for stores that are more well-known” (Fernanda, 24) “I have never purchased anything through my smartphone or tablet, but I guess I would only do it through an app. When I am on a website it is easier to look for signs that the page is secure. I am afraid I would not be able to identify those signs through the mobile device” (Ivy, 29) According to consumers’ perceptions apps feel safer than websites.
- 35. Payment Platforms • The lack of trust towards the app or website can be overcome in case a well known payment platform is used for the transaction, such as PayPal or PagSeguro. “Today there are websites that offer a warranty and make you feel safer purchasing online, even if you don’t have previous experience with it. For example Paypal only pays the sender after you get your merchandise and even will refund you in case of any problem.” (Monique, 24) “I try to always buy from websites that are known, I also research Reclame Aqui beforehand and also opinion blogs. I also try to make the transaction through payment platforms such as PagSeguro and PayPal” (Gimene, 31) Payment platforms mediate the transaction and are considered relevant security criteria when for shopping.
- 36. Virtual Currency • Online and mobile payment programs are not used a lot. • Virtual currency Bitcoin is known by some but there is a lack of information on how it actually works. “I have read something about Bitcoin but I do not really recall how it works so I would not feel safe using it, I would rather get more information about it. I have never heard of payment using SMS nor have I heard of virtual money (sounds like ‘fake money’ to me)” (Ivy, 29) “I have never heard of SMS payment… Bitcoin yes, I have heard of but I do not know how it works” (Bruno B., 23) There is still a lack of trust when it comes to virtual transactions, especially when it comes to SMS and virtual currencies.
- 37. According to the audience perception, virtual commerce in the future will provide a realistic shopping experience. M- Commerce, through mobile and wearable devices will dominate the business.
- 38. Future M-Commerce The audience believes that technology will advance to a point product visualization will be enhanced – with holographic images and augmented reality – making shopping online closer to the real thing. “I hope shopping becomes more realistic, maybe when buying a product online I will be able to print it at home in my 3D printer and never to depend on mail delivery again...” (Fernanda, 24) “The virtual shopping experience today has a lot of room for improvement when compared to the physical stores, I do not know how much e- commerce channels think of that when trying to improve their experiences” (Ivy, 29) Interacting with the product is what could be improved in this virtual shopping experience.
- 39. Future M-Commerce Channels that will be used for shopping: • Smartphones and tablets • Google Glass • Smart TVs • Bluetooth • Smart watches Payment methods to be used: • NFC Technology (Near Field Communication) • Biometry or Eye Scan for user identification. • Greater usage of virtual currency. “I believe that in the future we will use NFC technology to pay for things and we will be able to centralize all services in a single account. I believe this will be done with smartphones, glasses, watches and with time we will use bigger devices less and less.” (Madelaine, 26) “As banks are using tokens e digital prints for clients I would conceive the idea that in 10 years I would be able to buy a lot of things in a lot of channels with just my thumb.” (Rafael, 31) When it comes to security there is a lot of expectations regarding greater protection of personal information. Mobile devices will be key for future shopping journey.
- 40. Wearable Devices “Maybe in the future more wearable technology will emerge and fill fit our daily lives. For now it still seems to me like science fiction devices.” (Bruno F, 32) “I have hard and even read about Google Glass. I guess it has a lot of potential when it comes to technology, I can see myself using it in the future without any problems. Other than the amazing potential for functionalities related to augmented reality I also think the discreet aspect is key for it to become more and more popular” (Rafael, 31) Google Glass is the most known device. The potential for its technology is seen by people and they see themselves using the device in the future. On the other hand, Motorola’s HC1 Headset, is seen as fictional, not practical nor discreet. Wearable devices are still seen as futuristic and fictional/unreal.
- 41. Wearable Devices Positive Aspects: • Immediate access to information without having to stop daily activities to get them. • It will make people’s lives easier as it is convenient and practical for the user. Negative Aspects: • Price – at first it is meant for rich people only. • Lack of security – People are reluctant to use these gadgets in public. • Quality and price of mobile technologies. • Excessive connection to the device. “I do believe that the more discreet they are, the better, to have something getting people’s attention would not make me feel safe at all” (Larize, 25) “Sometimes it seems something really cool, out of science fiction movies, but sometimes I think it is too much and people should disconnect a little bit. Like when you forget your phone at home and you feel as if you lost a limb, you know? I guess that for those it will be even worse.” (Ivy, 29) Wearable devices will be part of our daily lives when the price paid for them is within everyone’s budgets.
- 43. WHAT IS EXPECTED OF M-COMMERCE? • Mobile Ads that makes people interested. The types of Ads should be reimagined to get the audience to trust them. Interesting and personalized content with attractive visuals as well as the option to close them have a positive impact among consumers. • The complete purchase journey through mobile devices. Smartphones and tablets are key for the initial steps of this journey but seldom they are used to finish the transaction. Security certification and mobile-adapted interfaces are part of the path to gradually change this scenario. • Loyalty programs that are appealing. Loyalty programs are still not trending for mobile devices. For them to be seen as worthwhile the transactions should be made easier and prizes more attractive as well as the scoring process which should be quicker. Conclusions
- 44. WHAT IS EXPECTED OF M-COMMERCE? • A wider usage of payment platforms and virtual currencies. Payment platforms that mediate transactions can contribute for the brand when the platform brand is trustworthy. On the other hand, virtual currencies should be advertised more to gain territory when it comes to public knowledge and acceptance of it. • The realistic shopping experience. Mobile and wearable devices are part of the collective imagination when the topic is shopping in the future. In this sense the challenge of M-Commerce (as well as E- Commerce’s) is to provide a realistic shopping experience for the consumer. Making use of technologies such as augmented reality the audience would be able to have a virtual experience that is closer to the sensorial experience that takes place in a physical shop. Conclusions
- 45. Pamplona, 518 – 4º Floor ZIP-CODE: 01405-000 – São Paulo – Brazil (+55) 11 2339 4928