By Per Pettersen on May 17, 2014
MOBILE RETAIL SALES JUST SHY OF $60 BILLION IN THE U.S. : According to research firm Javelin mobile shopping spending increased 188% in 2013 to $59.7 billion out of a total of $263 billion of spend — meaning mobile shopping, which includes tablets, was 23% of the total ecommerce sales.
MOBILE TO SURGE TO 54% OF ALL E-COMMERCE OR $293 BILLION BY 2018: Forrester’s recent prediction is an amazing growth figure and speaks to revolution in personal computing that is currently under way.
Larger screen sizes, better mobile experiences, 4G expansion, and aging millennials switching to using tablets are and will continue to be key drivers for this growth. In fact tablets are predicted to be be a whopping $219 billion and mobile phones “only” $74 billion. Smartphones still outnumber tablets 2 to 1 but as more and more users adopt larger “tablet style” devices and overtake todays smartphones in four years.
It is not only user changes that are driving this growth. Retailers should get some credit as well. In our recent survey of leading brands’ priorities, 47% of brands named mobile as their primary focus. This focus is translating into more streamlined shopping experiences on in the mobile environment either with sleek shopping apps or highly optimized mobile web experiences. Many retailers are lagging here however and with these staggering growth predictions even further streamlined experiences for mobile users. Streamlining can come through apps, simplified payment methods,or optimized mobile-web experience. Retailers should acknowledge the need to create a relevant and seamless shopping experience for customers wherever they are.
While getting the experiences in order should be a high priority, strategically investing in building media expertise and learnings in the mobile advertising should also be top of mind. Our opinion is that brands and agencies should stop looking at mobile as a separate channel and integrate tools, workflow, and teams to look at e-commerce advertising and sales as one integrated whole — independent on the purchasing device.
Overall very exiting times for all of us in digital advertising and a good time not to snooze on mobile initiatives!
Per Pettersen started Impact Radius in 2008 with a vision of creating a unified cross channel digital marketing platform. As CEO he is responsible for the company’s vision, strategy and execution. You can reach him at firstname.lastname@example.org.