Presentation

DIGITAL
IQ
INDEX
®
STUDY PREVIEW:
MOBILE
PARIS | MARCH 23, 2016
BENCHMARKING DIGITAL PERFORMANCE
RESEARCH
BENCHMARKING
EDUCAT ION
UPCOMING RESEARCH
March
April
May
Digital IQ Index®:
Digital IQ Index®:
Digital IQ Index®:
Activewear U.S.
Beauty: U.K.
Beauty: France
Digital IQ Index®:
Intelligence Report:
Digital IQ Index®:
Hotels
Instagram
vs. Snapchat
Beauty: Germany
Intelligence Report:
Amazon
Insight Report:
Activewear: U.K.
Intelligence Report:
Mobile
Insight Report:
Activewear: D.E.
Intelligence Report:
Data & Targeting
UPCOMING EVENTS: EUROPE
BRIEFING
BRIEFING
BRIEFING
BRIEFING
BEAUTY: EU
BEAUTY: EU
P aris
London
SNAPCHAT VS.
INSTAGRAM
SNAPCHAT VS.
INSTAGRAM
April 7th
London & P aris
Genev a
May 10th & 11th
June 8th
April
4th
MOBILE BRIEFING 2016
KEY THEMES
MOBILE IS BULK OF DIGITAL TIME
Time Spent per Day by Device
U.K. Adults, 2013–2017E
Desktop/Laptop
Mobile
Tablet
00:50
00:55
MOBILE =
00:44
00:36
00:20
00:55
01:14
01:34
01:55
02:12
02:07
02:11
02:14
02:17
02:19
2013
2014
2015
2016
2017
Source: eMarketer, September 2015
57%
APAC MARKETS HAVE CRACKED CODE
Retail Mobile Conversion Rates
U.S. Indexed to 100, 2015
300%
250%
200%
150%
100%
50%
0%
Japan
Source: Criteo
Korea
U.K.
Germany
U.S.
Russia
France
Spain
Italy
Brazil
CROSS-DEVICE FAVOURS DESKTOP
Cross-Device Share of Retail E-Commerce Transactions
Including Ultimate Transaction Device
Q4 2015
69%
Cross-Device
Transactions
37%
Single-Device
Transactions
63%
31%
Ultimately Transacts
on Mobile
Ultimately Transacts
on Desktop
Nearly four-in-ten e-commerce purchase journeys occur across multiple devices,
but only 31% of cross-device purchases ultimately transact on mobile.
Source: Criteo, Q4 2015
WHY? CHECKOUT PAINS
Factors that Would Influence U.S. Digital Buys to Purchase on Mobile
September 2015, Percent of Respondents
◼ Checkout Related
Easier checkout
39%
Alternative payments (e.g. Apple Pay)
34%
Full product selection
33%
Clear and well-sized images
32%
One-click checkout
29%
Quicker connection speeds
25%
Sufficient product information
23%
Faster mobile searches
Pre-populated profile information
Shared profile across channels
Source: MarketLive, October 2015
22%
14%
12%
BRANDS HAVE YET TO OPTIMIZE
Mobile Site Checkout Average Number of Fields, By Vertical
2016, n=43 Retailers, 15 Beauty Brands, 20 Fashion Brands, 18 Sportswear Brands
◼ Text Field ◼ Native Dropdown Field
16.3
12.9
31%
27%
Source: L2 Inc.
13.3
14.2
26%
30%
73%
69%
74%
70%
Retail
Fashion
Sportswear
Beauty
FRICTIONLESS CHECKOUT
Fashion: Cole Haan Introduces Apple Pay in Mobile App
May 2015
Mobile
Site
Mobile
App
3
1
Req. Fields
10+
0
Total Clicks
15+
2
Steps from Cart
CONTENT REQUIRES OPTIMIZATION
Estée Lauder Mobile Optimized Foundation Finder
Estée Lauder’s mobile site features a simple, intuitive tool designed with mobile in mind.
TUTORIALS MOVE TO MOBILE
Bobbi Brown: Mobile-Optimized Video Tutorials
Videos are broken down into
shorter segments.
Viewers can choose from models
of different skin tones.
Steps are broken out with an
option to add products to cart.
MORE TIME SPENT WITH APPS
Share of U.K. Time Spent Using Mobile Internet
% of Total, March 2015
Browser
19%
App
81%
Source: eMarketer, September 2015
BUT NOT WITH RETAILERS
Share of U.K. Time Spent Accessing Mobile Content
% of Total, March 2015
Social Media
31%
Entertainment
14%
Games
14%
News/Information
Retail
Source: eMarketer, June 2015
6%
5%
THE APP CHALLENGE
Number of Retailer Applications Consumers Use on Smartphone
Past Three Months, n=511
39%
27%
21%
10%
3%
0
Source: Forrester, July 2015
1 or 2
3–5
6–10
10 +
PENETRATION VARIES
Share of Digital Retail Sales Transaction via Mobile App
According to Retail Executives in Europe, Percent of Respondents
October 2015
0-5%
21%
6-10%
10%
11-20%
20%
21-30%
28%
31-40%
41-50%
Source: Urban Airship, February 2016
13%
8%
WHAT ARE CONSUMERS LOOKING FOR
Shopping Behaviours, In-App vs. On Retailer Mobile Site
Using Retailer App
Using Retailer Mobile Site
45%
Locate store or check hours
31%
Read product reviews
Purchase product
30%
Check status of an order
30%
33%
Find a coupon
Check product availability in-store
26%
Learn about in-store event
23%
26%
19%
Use stored loyalty card in-store
Make payment in-store
50%
28%
Compare prices
7%
7%
12%
66%
45%
43%
40%
39%
34%
Only loyalty / payment behaviours over-index or are at parity with consumers in-app.
Source: Forrester, July 2015
…OMNICHANNEL STILL LAGS
Timeframe for Full Mobile App Integration into Omnichannel Strategy
As Expected by European Retail Executives
October 2015
25+ Months
2%
Apps Are Not Part
of Our Strategy
4%
13-24 Months
7%
We're There
24%
6-12 Months
33%
In the Next 6
Months
30%
Source: Urban Airship, February 2016
NEW LOYALTY OPPORTUNITIES
"Apple Pay automatically presents the right card so you never miss a reward”
– Jennifer Bailey, VP of Apple Pay
June 2015
EXPLORING WHERE TO INVEST
Advantages of Mobile Web vs. Mobile Apps
Mobile Web
✓
Mobile App
Overall Traffic
Time Spent
✓
$
Development Cost
$$$
✓
Maintenance
✓
Device Compatibility
Mobile Payment
✓
Loyalty Card Integration
✓
Camera/Accelerometer Integration
✓
STORES DRIVE SCALE
Number of App Store Reviews vs. Number of Store Locations
Select U.S. & U.K. Brands / Retailer Apps, March 2016
N=55
Fashion
App Store Reviews
80 K
Retail
Overperformers
Sportswear
Walmart
Walgreens
Best Buy
60 K
Target
Under
Armour
40 K
Victoria’s
Secret
Gucci
CVS
Forever21
20 K
Next
Gap
Home Depot
Rite Aid
Zara
K
K
1K
2K
3K
4K
5K
6K
7K
8K
9K
Number of Store Locations
BRANDS = PRIMARILY MOBILE WEB
EU Beauty: Brand Investments in Mobile
Percentage of Brands, January 2016
All
iOS App + Mobile Site
iOS App Only
Android + Mobile App
Android Only
Mobile Site Only
iOS App + Android App
None
UK (n=81)
France
(n=68)
Germany
(n=61)
9%
2
%
15%
58%
5%
4%
2%
3%
1% 5%
12%
7%
4%
56%
68%
16%
26%
7%
ADVERTISING TIPPING POINT
U.K. Mobile Ad Spending as Share of Total Digital Ad Expenditure
2014–2018E (in $ billions)
Other Digital Ad Spend
Mobile Ad Spend
$20
$0
2014
2015
2016
2017
2018
% of Digital Ad $
31.3%
40.5%
49.2%
56.9%
64%
% of All Media $
14.7%
20.1%
25.5%
30.7%
35.8%
Source: eMarketer, September 2015.
TWO COMPANIES OWN THE FUTURE
Net Mobile Internet Ad Revenue Share Worldwide, by Company
% of Total Mobile Internet Ad Spending Worldwide, 2015
34%
49%
17%
Source: eMarketer, September 2015
CONSUMERS SEARCH ON PHONES
France: Keyword Search Volume, by Device, Year-over-Year
n=208 non-branded keywords (e.g., “Mascara”)
2014-2015
Tablet
16%
Desktop
50%
Mobile
34%
2015-2016
Tablet
15%
Desktop
39%
Search is moving to mobile, up 35% since last year.
Source: Google AdWords Keyword Planner Tool.
Mobile
46%
SEARCH GAME IS DIFFERENT
Desktop vs. Smartphone Search Results for “Calvin Klein”
◼ Calvin Klein Brand ◼ Retailer
DESKTOP
SMARTPHONE
PLAs, where present, take the top slot in mobile search results – making visibility even more critical
as search shifts increasingly to the smartphone device.
THE FUTURE OF THE PLA
Step 1
Step 2
Step 3
IN-APP MEDIA: FACEBOOK TAKES ALL
Facebook App: Rank Among Users in Terms of Total Time Spent
Relative to Other Apps, U.S., 2015
48%
22%
9%
1
2
3
6%
4
4%
2%
2%
1%
1%
1%
5
6
7
8
9
10
Facebook is the number one app by time spent for nearly half it’s smartphone user base,
accounting for 26h per month of time spent among millennials.
Source: Criteo, 2015
4%
11+
FACEBOOK MEDIA STRATEGIES
M•A•C Cosmetics: Drive-to-Retail Content Strategy
Sponsored Video
Mobile Appt. Booking
Merchandising Look-Based Applications
M•A•C Cosmetics tapped into the trend of look-based makeup content,
and facilitated handoff to vertical retail with robust mobile appointment booking.
FACEBOOK MEDIA STRATEGIES
NARS: Instant Articles + New Ad Formats
Accelerometer 360 Ad Experience
Native Content / Facebook Articles Partnership
NARS partnered with Teen Vogue for native placements within Facebook Instant Articles content,
in addition to being an early adopter of new accelerometer-enabled 360 ad units.
PROGRAMMATIC BUYING
Unique Brand Ads vs. Relative Impressions
October 2014 – 2015
Direct
Indirect
22%
30%
78%
Desktop
70%
Mobile
Watches
& Jewelry
Source: Pathmatics
44%
45%
56%
Desktop
55%
Mobile
Apparel
58%
42%
Desktop
49%
45%
51%
54%
Desktop
Mobile
73%
Beauty &
Skincare
64%
58%
36%
27%
Mobile
42%
Home & Gift
Desktop
Mobile
Accessories &
Shoes
FINDING THE CONSUMER
Tide + Walgreens: Geo-Local Targeted Mobile Ads
October 2015
Tide & Walgreens teamed up to serve
geo-targeted mobile ads with
personalized coupons when they entered
the geo-fence around a Walgreens store.
Source: CoFactor, October 2015
OTHER CPG STRATEGIES
Simple Skincare: #TestTheWater UGC Campaign Ad
February 25, 2016
Targeted interactive ad allows consumer to “swipe away
makeup” on model and view the campaign video
Click-through page allows consumer to
upload photo or view gallery
OTHER CPG STRATEGIES
Degree vs. Dove Mobile Ad Strategies
In-App Takeover Ad Facilitates Guided Selling
and Retailer Online / Offline Handoff
Dove Pop-Up Video Ad Units
Drive Trial of New Products
OTHER EXPERIMENTATION
UGG: Full-Screen Mobile Pop-Up with Swipe-able Product Gallery
AD BLOCKING: TANGIBLE IMPACT…
Percentage of Display Creatives & Impressions on Mobile
December 1, 2014–November 30, 2015
n=62 Big Box Retailers
% of Mobile Creatives
% of Mobile Impressions
iOS 9 Ad Blocking Announced
30%
25%
20%
15%
10%
5%
0%
Mobile ad impressions relative to desktop have dropped from a high of 25% to just 7%
following the implementation of native iOS ad-blocking.
Source: L2 Inc., Pathmatics
LIMITED IMPACT OF IOS AD BLOCKER
Impact of Mobile Ad Blockers on Mobile Time Spent
Must Browse in Mobile Web
Using Safari Browser
Ad Blockers
8%
Mobile
Web
12%
Mobile Apps
88%
With Ad Blocker Installed
Safari
42%
Other
Browser
58%
No Ad Blockers
92%
Only 0.4% of aggregate time spent on mobile is expected to be impacted by the iOS ad blocker.
Source: The Mobile Majority
HOWEVER, ISP BLOCKING IS COMING
Source: The Mobile Majority
MOBILE BRIEFING 2016
INNOVATION
YVES ROCHER | ASDA | HOTEL TONIGHT | NIKE
FACILITATING OMNICHANNEL
Yves Rocher FR: Driving to Store Across Mobile
Search
In-App
1
2
3
1. Robust store
locator that
allows consumer
to filter by
appointment
type
2. In-App
Appointment
Booking
3. In-store mode
includes barcode
scanner, a
wishlist, and
loyalty card
synchronization
KEEPING THE CONSUMER IN-APP
Yves Rocher FR: In-App Loyalty Integration & Content
Loyalty Integration
1
Shoppable Product Tutorials
2
1. Quick-add
features to link
loyalty account
in-app
2. “Favorite
Products” section
links with
account and
includes barcode
scanner for instore use
3
4
3. Shoppable
video tutorials
keep the
consumer
engaged in-app
4. PDPs include
in-store
inventory,
reviews, and
option to add to
Favorite
Products
STICKINESS & SCALE
Yves Rocher FR: iPhone Download Ranks Estimated App Downloads
France: Shopping Category Download Rank
France
December 1, 2015 – March 15, 2016
February 2016
Yves Rocher
15,000
L'Oreal Paris (Makeup Genius)
<14,000
Nina Ricci
Source: App Annie
5,100
Nivea
<5,000
YSL Beauty
<5,000
La Roche Posay
<5,000
Thierry Mugler
<5,000
L'Oreal Paris (Instant Beauty)
<5,000
Giorgio Armani Beauty
<5,000
Bioderm
<5,000
Nuxe
<5,000
Source: Sensor Tower
INTEGRATION ACROSS CHANNELS
Yves Rocher leverages search (SEO / SEM) to drive to store locator and the app.
MOBILE BRIEFING 2016
INNOVATION
YVES ROCHER | ASDA | HOTEL TONIGHT | NIKE
ASDA: PUNCHING ABOVE WEIGHT
Big 4: Market Share of U.K. Grocery vs. Retailer App Store Rank
For U.K. Shopping Apps, February 2016
28%
Tesco
Sainsbury's
17%
ASDA
16%
Morrisons
Others (incl.
Ocado)
11%
3%
#26
App in Beta Mode
#24
N/A
#50
Despite having roughly half the market share of Tesco, the ASDA app ranks higher in the U.K. app store,
due to rigorous omnichannel iteration.
Source: Kantar Worldpanel, 12 Months ending November 2015
APP SHOPPING BEST PRACTICES
ASDA OMNICHANNEL ITERATION
ASDA: Select Omnichannel App Enhancements
Version
Select Feature Upgrades
2.0.7
”Have you forgotten” list reminders based on past orders
2.1
Click & Collect at select stores
2.2
Manage basket substitutions based on real-time product availability
2.3
Scan receipt for Asda Price Guarantee check
Automated mobile delivery reminders
2.4
Add items from a previous order to a new basket during checkout
2.5
Purchase an ASDA Delivery Pass subscription
2.6.1
Push notifications for offers and in-store events
2.8
2.10.1
Create shopping lists that track total cost / mark off items when shopping in-store
In-store mode including easy access to lists and scanner
Same-day delivery in select areas
EXCEEDING EXPECTATIONS
ASDA App Performance
Original Objective:
• 10% of online orders done in-app
ASDA today:
• Mobile now accounts for 18% of all
grocery home shopping sales;
90% of this from the app
• App shoppers are twice as likely
to become loyalists
• Shopping frequency for mobile is 1.8
times higher than desktop
Source: eConsultancy, March 2015
UNLOCKING NEW SCALE
June 2015: ASDA Automated Collection Point Pilot
Mobile QR codes, delivered via the ASDA app, have enabled a 24/7 unmanned click-and-collect depot,
where consumers can retrieve items via their phone.
OCADO’S ACHILES HEEL
Only three click-and-collect
locations, none in Central
London
Have to book deliveries >24
hours ahead of delivery
Mediocre app generates
more negative than
positive reviews (compared
to Asda’s 4 stars)
MOBILE BRIEFING 2016
INNOVATION
YVES ROCHER | ASDA | HOTEL TONIGHT | NIKE
MOBILE EXPLOSION IN TRAVEL
U.S. Digital Travel Sales, by Device
2014–2019E
Mobile
Desktop
79%
21%
2014
Source: eMarketer, November 2015
69%
64%
60%
56%
54%
31%
36%
40%
44%
46%
2015
2016
2017
2018
2019
DRIVEN BY SHORT STAYS
Device Share of Digital Hotel Bookings
By Duration of Hotel Stay
June 2015, Worldwide
Desktop
Smartphone
Tablet
1 Night
72%
2-7 Nights
77%
82%
7+ Nights
18%
10%
13%
10%
10%
8%
Low-consideration hotel stays (1 night only) see almost double the rate of mobile bookings
as high-consideration stays (1 week+).
Source: Criteo, September 2015
*Note: Excludes in-app bookings
EARLY LEADER
May 2011: HotelTonight Raises $3.25M Series A Round
HOTELTONIGHT: EASE OF USE
Easy Search by Near Me
Book Up To a Week Out
Pay with Apple Pay
CATEGORY KILLER?
January 2015: Booking.com Entry into Mobile Same-Day
DAVID VS. GOLIATH
HotelTonight vs. Booking Now App Stats
February 2015
Hotel Tonight
Booking Now
$47.05
95
4.5
38
4.0
Number of Countries Where
App Has Been #1 in Travel
App Rating (All Versions)
$0.3
2
Estimated Valuation / Market
Cap* (Billions)
While digital typically rewards scale, HotelTonight’s early-mover advantage
and superior app experience has rewarded them, relative to (much) larger players.
*Priceline (Parent Company)
STICKINESS
iOS App Store Ranking: U.S. Travel Category
HotelTonight vs. BookingNow, February 2015–February 2016
Hotel Tonight
Booking Now
National TV Campaign
WHY? MOBILE FUNDAMENTALS
HotelTonight: Mobile Marketing Tactics
Mobile Display Ads
HotelTonight
Booking Now
$2,155
$0
$95 $233
2015 Desktop
2015 Mobile
Display Spend (k) Display Spend (k)
Source: Pathmatics
*Note: Booking.com Data
App-Based Retargeting
Responsive Design Emails
AND MOBILE-FIRST INNOVATION
HotelTonight: Mobile Innovation
UGC Photo Reviews
Mobile In-Stay Tech
Concierge Mobile Messaging
May 2013
June 2014
July 2015
MOBILE BRIEFING 2016
INNOVATION
YVES ROCHER | ASDA | HOTEL TONIGHT | NIKE
MOBILE CONTENT PLAY
Nike+ Training Club: Mobile Content Strategy
Nike+ Training Club App
Downloads in 2015
2M
Total Global Downloads
21M
Monthly Workouts
135
Global Trainer Network
600
N+TC includes the ability to create custom workout plans, based on goals and ability,
with workouts updated monthly.
“Women who are part of our service
ecosystem spend more than two times
with us than those who aren’t.”
– Trevor Edwards, President, Nike Brand
64
CAMPAIGN SPRINGBOARD
Nike Women: Margot vs. Lily Campaign
App Push Notifications
Offline Tie-Ins
New Content Hub
App push notifications used to launch
campaign content, including series preview
Campaign promoted
in Womens-Only Nike Stores
Driving to new Nike.com
content destination
MOBILE MEDIA
Nike Women: Margot vs. Lily Mobile Campaign Activations
Facebook Media
Facebook media was only
observed on mobile
Instagram Ads
Instagram video ads with
“Watch More” CTA
Snapchat Ads
Four unique ads via
Refinery29 Discover hub
In-App Content
N+TC app Sport
Feed integration
PLUS COMMERCE FUNDAMENTALS
Nike Women: Margot vs. Lily Mobile Digital Fundamentals
Retargeted Ads to Shop Looks
CRM
Retargeted Facebook media featuring gear
worn in the Margot vs Lily series
CRM strategy anchored by new
weekly newsletter for women
THE LATEST
Nike + Announcement, March 17, 2016
MOBILE BRIEFING 2016
CONCLUSIONS
CONCLUSIONS
Cross-Device Commerce
Make the mobile transaction process as simple as possible, but create a robust retargeting / cart
continuity strategy to funnel mobile browsing into purchase on other devices too (including in-store).
Winner Takes All
Mobile experiences are more tightly curated – from the number of retailer apps consumers
download, to the number of mobile search results they see. This disproportionately rewards
a small number of winners.
Bigger Problems…
Ad blocker impact may be over-hyped but now’s the time to experiment with non-traditional ads.
App or Site?
Unless you offer a compelling reason for building an app, its usually better to invest in a great mobile
optimised site.
Always Think Mobile
Brands must design content and guided selling experiences with a mobile-first approach
or risk investments being obsolete.
DIGITAL
IQ
INDEX
®