Blog #4: Personalized Topic Report

For the last blog we created our digital ecosystem. It got me wondering, of the content that we consume and the platforms we use to consume it (i.e. Facebook, Twitter, national magazine websites, national TV broadcast websites, or blogs/forums) how much of it is consumed via a mobile device? Looking at some of the other students Close To Me profiles, a few added their smartphone as things that they “couldn’t live without” or were included in the “what I care about” circles. Over the course of this semester I have become increasingly interested in the connection people have with their mobile devices and how that is changing the advertising environment. 

The advertising graduate program encourages the students to choose an emphasis. After my last two internships and the trends of the industry, I have decided to focus on digital media and digital metrics. This semester I am enrolled in a digital metrics class that features guest speakers from the industry each week. Earlier this year, one of the guest speakers who worked as a Digital Strategist at an advertising agency, spoke about consumer purchasing behavior on mobile devices. She expressed that mobile purchasing is still not a typical practice and according to a Mashable article in June of this year, less than 10% of U.S. Internet users are mobile shoppers. Additionally, it is difficult to track consumer behavior to determine what will help encourage these consumers to go beyond price comparisons and coupons to actual purchases on mobile. In such a digitally connected and mobile friendly world, I often find myself wondering why people are hesitant to make purchases using their mobile devices? This trend has grown over the years, and more and more people are taking the step towards purchasing things via mobile, but it has still not become a mainstream habit. The conversion rates are increasing gradually but true adaption of this behavior is yet to be seen. 

 We will check our bank account, share our personal feelings and thoughts on social platforms, spend hours browsing retail mobile sites and Google anything we fancy, but when it comes to the actual purchase we are still hesitant. There is a disconnect with the role that the mobile device plays in our every day life and the trust we have in that very same device (most people would say security is the largest concern with mobile purchasing.) Mobile phones have absolutely been integrated into the shopping experience and have been adapting the way consumers conduct price and product comparisons, utilize coupons and as an overall shopping research tool, driving consumers back to stores or to desktops to complete the transactions. A Google Think study shows the impact mobile is having on the shopping experience both in-store and remotely. But, they reported that of all the shopping activities the consumers participated in, only 19% used their mobile phone to make a purchase. 

How can companies develop a mobile site or mobile app that creates a friendly environment for consumers to purchase on their smartphones? Additionally, there are certain items that people are unlikely to ever purchase via their mobile phone, for example a couch, so other creative methods must be developed. If there is not a way to create conversions on the mobile phone, how are companies bridging the gap by directing the customers to go into the store, or to their personal computers or to call in and order the item? And how can they measure that behavior? In my opinion, I think this could be a great opportunity to apply the theories of this class. Key consumer insights regarding mobile behavior have helped lead companies create their current methods for combating this issue. There are certain companies that have created a pretty solid framework for creating a mobile integrated shopping experience (not necessarily mobile purchasing) with their consumers, some of which include Starbucks and Amazon. 

I am interested in digging deeper into the companies that are having success with converting customers on mobile. And what types of products are consumers willing to purchase on their phone? What types of motivations and incentives are there for mobile purchasing? There are still a lot of unanswered questions for me, but so far I have been able to find many studies and resources about this topic. One of my concerns is that the research on this topic will be grouped with tablet devices. Although I agree that they are similar experiences, I want to focus exclusively on the mobile (smartphone) experience, as I feel that is where an opportunity for true innovation lies. 

Resources: 

http://www.webpagefx.com/blog/internet-sales/ecommerce-purchasing-habits-conversion-rates-smartphones-tablets/

http://www.marketingprofs.com/articles/2013/11721/five-steps-to-highly-effective-social-mobile-campaigns

http://mashable.com/2013/09/16/mobile-shopping/

http://www.google.com/think/research-studies/mobile-in-store.html