The Winning Curve

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Justin Adler

Understanding Mobile Commerce

After much anticipation mobile ad spend soared significantly over desktop in 2015. With over $30 billion spent on mobile advertising, it dominated about 52% of digital ad spend. By 2018 mobile is projected to account for over half of all internet advertising - which is a staggering number that shouldn’t be ignored.

So how can marketers take full advantage of mobile advertising moving forward?

Understand the Gap

Of all the ecommerce in the US, mobile currently accounts for about 30 percent (or $104 billion). By 2020 this number will catch up to the expectations for mobile spend, increasing to a whopping $284 billion.

Since so much budget is being poured into mobile advertising, it’s easy to assume that mobile ecommerce has the highest conversion rates and revenue. That’s currently not the case, and a sizeable gap between ad spend and revenue has set in. The gap is set to organically decrease however, as consumers become more receptive to mobile ads and ecommerce.

Measure Impact

While smartphones play a crucial role in online purchasing, they’re not the only devices being used in the ecommerce funnel. When consumers are considering a more expensive or important purchase, they’re less likely to just use their phone. Mobile is generally used to do research on a product, but desktop or tablet are often the final purchase touch point. This multi-device scenario makes it difficult to know the true role that mobile plays in the purchase process.

When trying to measure the impact of mobile ads, these consumer behaviors should be considered. While desktop and tablet traffic is shifting to smartphones, those devices still report higher conversion and revenue. Since consumers generally know what they’re looking for once they switch to a personal computer, it’s easy to assume they were already influenced by mobile advertising and research.

Study Mobile Trends

Consumers interact with their smartphones totally different than a personal computer. On average an American adult interacts with their phone around 150 times a day, which already sets mobile behaviors in a different realm than desktops/laptops. Smaller, non-voice interactions account for over 4 hours of time daily.

Mobile behaviors also tell us that consumers are more likely to convert during their morning or evening commutes than during the day. This is a clear indicator for marketers to act on these behaviors in order to guide users towards mobile checkout at the opportune moments.

By adapting to the trends of the mobile user like time of day useage, location, and past purchasing history, advertisers can better optimize their campaigns.

Mobile Optimization

Mobile conversion is totally different than desktop and should be treated as such by marketers. Since many users have been deterred by complicated mobile checkout experiences, brands should be focussed on creating a simplified and organic process. Whether it’s creating a simple checkout experience or optimizing campaigns, it’s crucial to be in-tune with mobile trends in order to stay ahead of the game. By adapting to the new mobile ecosystem, marketers will understand the gap between ad spend and revenue and what it means for mobile impact.


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