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Report: Mobile commerce to surge 42%

BY DSN STAFF

SEATTLE — Between 2013 and 2016, mobile shopping will increase 42%, compared to regular e-commerce's 13%, according to Coupofy.com, a database of online coupon codes.

Mobile users will also spend a total of $600 billion in 2018, a 300% growth from 2014's $200 billion. China, Mexico and the United States are the top three countries where shopping via app is more popular than via browser. In the United States, 72% of shoppers use an app, whereas 54% use a browser.

Denmark, Norway, Sweden, China, and Spain are leading mobile commerce growth, each seeing a rise of around 50% in mobile shopping, Coupofy said. India and Taiwan saw a 60% increase between 2012 and 2014, as mobile devices became more prevalent among their populations.

Amazon.com is leading the charge in mobile commerce, with 110% growth in 2014, earning revenues of $16.8 billion. The company is followed by Apple ($14 billion), Jingdong Mall ($5.8 billion), Google Play ($4.4 billion) and QVC ($1.86 billion).

Populations in Asia are set to account for almost of half of mobile spending by 2018, Coupofy said. About 68% of all Chinese online consumers say they have already shopped with a smartphone.

The most lucrative mobile commerce market is computer/TV/multimedia, with an average order value of $212, according to Coupofy. Apple users spend on average $15 more than Android users per transaction, while Tablet users spend $36 more than their smartphone cousins. Men spend $24 more than women, but women spend the majority of their money on clothing and accessories, while men prefer sports products.

See the infographic below for more insights from Coupofy.

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Report: Digitally distributed coupons increases in H1 2015

BY DSN STAFF

MINNEAPOLIS — The number of digitally distributed coupons for consumer packaged goods brands on key websites increased by 16.7% in the first half of 2015, according to a report from Kantar Media.

Food areas — especially the dry grocery area — accounted for the increase, according to Darcy Douglas, director of Marx Account Solutions at Kantar.
                                  
“This fluctuation may signal a shift in the way manufacturers are leveraging digitally distributed coupons to target shoppers online,” Douglas said. “Manufacturers often apply different strategies and tactics to their digital promotions, compared to print promotions, and will adjust digital promotions on the fly, depending on how quickly shoppers respond to digital incentives across various websites.”

In H1 2015, incentives that retail channels offered on digitally distributed coupons reached $1.72 across all areas and retail channels — a 4.2% increase year over year, according to Kantar. But incentive levels varied markedly among different retail channels.

“Incentives are a critical part of a digitally distributed promotion, and misaligning your incentives could mean the difference between a brand offer being clipped or printed or just ignored,” Douglas said.

The dollar channel websites had the lowest level of incentives in H1 2015, at $1.41. This level was 27% below the incentives offered on mass channel websites and “significantly below” drug channel websites, which offered the greatest incentive at $1.94, the report said.

“Promotion incentive tactics should not be ignored in the dollar channel,” Douglas said. “It is critical for companies planning digital promotions to understand how incentives and investment levels compare across different channels, and know how these programs could impact their brands and categories.”

Understanding incentives and investment levels requires close analysis.

“Determining the right digital incentive level takes partnership with a retailer, knowledge of the product and an analysis of which websites are performing best in the drug channel,” Douglas said. “And, to really deliver value, a brand should understand your competitor’s incentives, across the same websites.”

In the vitamins category, the dollar channel balanced lower incentives with increases in coupon activity, according to Kantar. Average face value remained at $1.86 — significantly below the average incentive of $3.43 seen in the mass channel in H1 2015.

Estimated expenditures, on the other hand, experienced over 600% growth during that period, while drug and mass channel websites growth actually saw declines in H1 2015, Kantar said. These significant increases allowed the dollar channel to actually outspend mass in the vitamin category.

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Throwback Thursday: Where’s the beef?

BY DSN STAFF

According to The New York Times, Burger King is looking to make a truce with its perennial competitor, McDonald’s, in honor of nonprofit Peace One Day’s International Day of Peace. In full-page ads, Burger King is offering to run a restaurant on Peace Day staffed by employees from both chains.

In honor of the potential partnership here, DSN offers a look back at the days of less cordial relationships among burger makers, with the iconic 1984 Wendy’s commercial. If you could only eat one last hamburger, what would it be? Leave your responses in the comments below.

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[email protected] says:
Aug-27-2015 11:52 am

In-N-Out Burger: Open and shut.

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