Author: Mintel Group Ltd.
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Mobile Advertising and Shopping - US - July 2014
Scope and Themes
 
What you need to know 
Dramatic gains are being seen in both mobile shopping sales and mobile advertising sales, based upon the increasing penetration of smartphones and tablets, the increasing screen size of smartphones, and the increasing computing power of smartphones and tablets. This report explores how mobile shopping and research habits differ from online shopping and research conducted on PCs, to better understand how consumers approach remote shopping overall. The report also explores where smartphones and tablets are used to access the internet, the reach of mobile ads, and attitudes and response to mobile ads. 

Definition 
This report covers both advertising and shopping conducted on mobile phones and tablets. For the purposes of this report, advertising includes the following types of marketing:

●	Banner ads on websites
●	Ads embedded in videos, apps, games, and between songs on internet radio stations
●	Paid search results
●	Ads in social network or new portal feeds
●	Paid tweets, texts, and email
●	Insertions in social network feeds

For the purposes of this report, mobile shopping is defined as sales to consumers of merchandise conducted via the internet using a mobile phone or a tablet. It covers web-only (“pure-play” retailers) as well as the online operations of brick-and-mortar retailers. The focus of this report is on tangible objects that require pick-up or delivery. Digital media, travel, entertainment tickets, insurance policies, and other products that are not tangible are not the main subject of this report. Prescription drugs may be included in sales figures, but is also not a sector otherwise covered explicitly in this report. 

Consumer data for this report cover adult usage and attitudes only. This report builds on the analysis presented in Mintel’s Online and Mobile Shopping – US, June 2013, Online Shopping – US, June 2014, and Mobile Advertising – US, July 2013. 

Data sources
Sales data
Historical revenue presented in this report shows sales for ads placed on smartphones, feature phones, and tablets. Historical sales data are from the IAB (Interactive Advertising Bureau), via its annual report produced with research conducted by PwC (PricewaterhouseCoopers). Mobile shopping historical sales and forecast presented are eMarketer data. 

Consumer survey data
For the purposes of this report, Mintel commissioned exclusive consumer research through GMI to identify consumer attitudes and behaviors toward online shopping. Mintel was responsible for the survey design, data analysis, and reporting. Fieldwork was conducted in May 2014 among a sample of 2,000 adults aged 18+ with access to the internet.

Mintel selects survey respondents so that they are proportionally balanced to the entire US adult population based on the key demographics of gender, age, household income, and region. Mintel also slightly oversamples – relative to the population – respondents that are Hispanic or Black to ensure an adequate representation of these groups in Mintel’s survey results. Please note that Mintel’s exclusive surveys are conducted online and in English only. Hispanics who are not online and/or who do not speak English are not included in Mintel’s survey results.

Mintel has also analyzed data from Experian Marketing Services, using the Fall 2013 Experian NHCS Adult Study 6-month. The study was carried out April-December 2013, and the results are based on the sample of 11,620 adults aged 18+. For trending, the following older surveys have also been used: 

●	Experian Marketing Services Fall 2009, April-December 2009: results based on 11,702 adults aged 18+
●	Experian Marketing Services Fall 2011, April-December 2011: results based on 12,106 adults aged 18+
●	Experian Marketing Services Fall 2012, April-December 2012: results based on 12,305 adults aged 18+

While race and Hispanic origin are separate demographic characteristics, Mintel often compares them to each other. Please note that the responses for race (White, Black, Asian, Native American, or other race) will overlap those that also are Hispanic, because Hispanics can be of any race. 

Abbreviations and terms
Abbreviations
The following abbreviations are used in the report: 

IAB | Internet Advertising Bureau
OS | Operating System
NCS | National Consumer Study (Experian Marketing Services)
NHCS | National Hispanic Consumer Study (Experian Marketing Services)
PC | Personal computer, including any computer regardless of its brand or OS (ie including Apple computers, Linux, etc)

Terms
The following terms are used in the report: 

Hyper local | A limited geographic distance smaller than a metropolitan area that can be viewed as a single entity, such as an urban neighborhood, retail district, or shopping mall.
Geo-fence | A virtual perimeter for a physical geographic location.
Late majority | The fourth group to adopt technology in the diffusion of innovations model described by Everett Rodgers, typically associated with penetration for adoption rising from 50% of the population through to a penetration of 83% of the population.
Mobile | Refers to smartphones, tablets, and the activities conducted on them. EG mobile shopping refers to shopping conducted on a smartphone or a tablet.
Native ad | Ads provided in a format “native” to other non-ad pieces of the user’s information/entertainment experience (eg an ad played within a news portal’s feed of listed articles).
Net neutrality | The principle that internet service providers should be legally mandated to treat all data on the internet equally.
Omni-channel | Approach to retailing that embraces the idea that the same consumer will be interacting with a retailer across a wide array of channels, including mobile devices, in-store shopping, PCs, direct mail, and email.
Online | Refers to behavior conducted on the internet, regardless of which type of device is used to access the internet.
Permission marketing | Marketing in which prospective customers have given their consent in advance to receiving materials. Typically used to distinguish voluntary brand engagement from involuntary “interruption marketing,” such as television and radio ads.
Phablet | A phone with a screen size of 5 inches or larger that makes it a crossover product similar to the size of small tablets.

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