A “Mobile First” strategy is more important than ever. It requires more than merely transferring a general e-commerce experience into a mobile format as it is more instant and local, and it enables leveraging of the mobile device’s features, such as the camera. Proximity, personalization and loyalty are the three key themes for mobile in 2018.

1. Mobile Trends & Innovations
Meital Yachin | December, 2017

2. • Mobile is the beating heart of almost any activity today. Content
consumption, social correspondence and commerce, are
increasingly taking place on mobile devices.
• The report examines where, when, how, what, and why global
users use mobile today – and what marketers are doing to respond
to this behavior.
Introduction

3. • Mobile is becoming the key device throughout the omni-channel path to purchase.
Consumer Trends:
Path to purchase decision making
Awareness/ Research & Consideration
• Location Based offers
• VR / AR
• Reviews
• Video
Purchase
• Mobile wallet/ Payment apps
• Service, chats, bots
• Voice search
• Virtual assistants
Loyalty & CRM
• Instant messaging
• Gamification
• Clubs & coupons
• Data analysis

4. • According to Think With Google, consumers are looking for
immediate solutions “right here, right now” and mobile is
becoming more relevant than ever as a result.
• Mobile helps people make decisions. According to Google,
mobile searches for “best” have grown 80% in the past
two years.
• Convenient, seamless experiences and instant
experiences continue to be top priority.
Consumer Trends:
Path to purchase decision making

5. • Google’s “Consumer Barometer” found that 35% of US consumers go online via
smartphone, rather than computers / tablet; 33% go online equally via smartphone and
computer/tablet and only 21% prefer to use the computer/tablet over the smartphone.
• Globally, GSMA data (April, 2017) found that in 2016, 65% of the world’s population
had a mobile subscription – a total of 4.8 billion unique mobile subscribers. By 2020,
almost 860 million new subscribers will be added, taking the global penetration rate to
73%.
Market Trends:
Why mobile is more Important than ever

6. Market Trends: Mobile Penetration by Region
Number of mobile (cellular) subscriptions worldwide from 1993 to 2017
(in millions)
Source: ITU (Statista): Worldwide; 1993 to 2017
34 56 91 145 215 318
492
740
962
1,159
1,418
1,765
2,205
2,745
3,368
4,030
4,640
5,290
5,890
6,261
6,661
6,996
7,184
7,511
7,740
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
'93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17*
Mobilesubscriptionsinmillions

7. • Global mobile social network penetration rate as of January 2017, by region
Market Trends:
Mobile Social Penetration by Region
Statista, Source: We Are Social; Tencent; Facebook; Vkontakte; Wikipedia; IAB Singapore: Worldwide; January 2017
58%
57%
52%
47%
46%
45%
42%
34%
34%
34%
13%
12%
4%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
North America
East Asia
South America
West Europe
Central America
Oceania
Southeast Asia
East Europe
Global Average
Middle East
South Asia
Africa
Central Asia
Penetration rate

8. Market Trends:
Instant Messaging Platforms
Source: ITU (Statista): Worldwide; 1993 to 2017
• Messaging app are evolving into marketing and a commerce platforms.
• The rapid growth in the use of messaging platforms continue with the growth of
mobile penetration. According to GSMA report from 2017, the total user base stood
at ~ 3.6 billion at the end of 2016, suggesting that the majority of the just under 5
billion mobile subscribers across the world are using messaging apps.
• WhatsApp (owned by Facebook today) was the first messaging platform to reach 1
billion users, subsequently followed by Facebook Messenger.
1,000
1,000
877
846
300
300
249
217
100
100
49
0 500 1000 1500
WhatsApp
Facebook Messenger
QQ Mobile
WeChat
Skype*
Snapchat**
Viber*
LINE
BlackBerry Messenger (BBM)
Telegram
Kakaotalk
Most popular global mobile messages apps as
of January 2017, based on number of monthly
active users (in millions)
1.58
1.82
2.01
2.18
2.34
2.48
0
0.5
1
1.5
2
2.5
3
2016 2017 2018* 2019* 2020* 2021
Numberofusersinbillions
Number of mobile phone messaging app users
worldwide from 2016 to 2021 (in billions)

9. Market Trends:
Instant Messaging Platforms
• Text is the preferred communication
method in the US, with 50% of internet
users prefer to communicate via text
messages. Voice comes next, with 37%.
Younger consumers are especially fond
of messaging apps.
• Today, messaging platforms allow users to
communicate also through voice call, voice
messages and video calls, providing the
customers an “all in one” platform and
thereby reaching as many users as possible.
Mobile communication preference of internet users in the
United States as of August 2017
50%
37%
4%
8%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Text Voice Video Don't know/no
opinion
Shareofrespondents
Mobile communication preference of internet
users in the United States as of August 2017,
by age group
26%
62%
3%
9%
40%
52%
3%
6%
54%
34%
3%
9%
62%
27%
5%
6%
61%
20%
7%
12%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
Text
Voice
Video
Don't know/no opinion
Share of respondents
65+ 55-64 45-54 30-44 18-29
Source: Morning Consult, 2017

10. • Facebook’s Messenger is evolving into a
group collaboration platform, helping users
share plans and programs.
• According to Facebook, “We think of
Messenger as being like the new social
living room for the world, where people can
hang out, share, chat, play games or buy
things, while still being able to reach nearly
everyone, wherever they are. We now
think we are combining two tools of the
past — the telephone directory (the way
we used to find people) with the Yellow
Pages (the way we used to find
businesses).”
• “Messenger Broadcast” is a new self-serve
mass-messaging interface that lets
businesses send marketing messages to
users. Facebook confirmed to TechCrunch
that it’s testing the feature internally, but
hadn’t trialed it to the public or with
businesses as of late last month.
Market Trends:
Instant Messaging Platforms
• “With the help of M, people
will be able to send stickers,
share their location, make a
plan, start a poll (in group
conversations), save content,
wish people a happy birthday
and initiate voice and video
calls.”

11. Market Trends:
Instant Messaging Platforms
• In December 2017, Facebook started rolling out a preview of Messenger Kids in the
USA, a new app that “makes it easier for kids to safely video chat and message with
family and friends when they can’t be together in person”. According to Facebook,
“after talking to thousands of parents, associations like National PTA, and parenting
experts in the US, we found that there’s a need for a messaging app that lets kids
connect with people they love but also has the level of control parents want.”
• In addition to video chat, kids can send photos, videos or text messages to their parent-
approved friends and adult relatives, who will receive the messages via their regular
Messenger app.

12. Market Trends:
Instant Messaging Platforms
• In March, Instagram rolled out an expanded shopping experience, focusing mostly on
apparel, jewelry and beauty products, based on the fact that 80% of its users follow a
business account on the network. The platform started on Novemeber, 2016.
• Retailers, including Kate Spade, JackThreads and Warby Parker, share posts that have
more depth, making it easier for Instagrammers to review, learn about and consider the
items that interest them. Each post has a “tap to view” icon at the bottom left of a photo.
When tapped, a tag appears on various products in the post—showcasing up to five
products and their prices. Once a tag is selected a new detailed view of the product
opens.

13. • As a result of the growth in text as a preferred communication method, more services
and industries are undergoing changes.
Market Trends:
Instant Messaging Platforms
Talkspace is an online therapy platform that
allows customers to get a psychological
therapy through text messages.
"With Talkspace, you can send a therapist text
messages, audio messages, as well as picture
and video messages in a private, text-based chat
room. Talkspace stands out because of the
affordability, anonymity and convenience it
provides”.
• A collaboration between Facebook Messenger
and OpenTable allows costumers to make
reservations at more than 40,000 restaurants
worldwide through Messenger.
• “We hope this service helps diners more easily
collaborate on dining plans by sharing restaurant
suggestions and coordinating a reservation all in
one place” (OpenTable).

14. • A collaboration between
Messenger and Uniqlo
offers consumers a
convenient and fun way to
shop with Facebook
Messenger.
• “Uniqlo IQ” - IQ is Uniqlo's
smart new chatbot, allows
consumer to chat with a
sales person and complete
the purchase via the app.
Market Trends:
Instant Messaging Platforms - Chatbots

15. Market Trends:
Instant Messaging Platforms - Chatbots
• Louis Vuitton has launched a chatbot on Facebook
Messenger that advises shoppers on products, aiming
to provide meaningful feedback during the busy holiday
period.
• The bot is powered by mode.AI, which has also
previously partnered with the likes of Levi’s with its
artificial intelligence, visual search and machine
learning technology.

16. Market Trends:
Mobile Commerce
41.71
56.67
80.94
115.92
156.43
206.53
267.26
335.84
0
50
100
150
200
250
300
350
400
2013 2014 2015 2016 2017* 2018* 2019* 2020*
RevenueinbillionU.S.dollars
• US mobile retail sales were expected
to reach $ 156.43bn in 2017,
according to eMarketer.
• The company expects mobile
commerce to constitute over half of e-
commerce sales by 2021, with $
335.84bn.
• According to Google, shoppers are
researching on mobile to determine
which stores they should visit to get
what they need, more than ever.
U.S. mobile retail commerce sales as percentage of
retail e-commerce sales from 2017 to 2021
34.5%
39.6%
44.7%
49.2%
53.9%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
2017 2018* 2019* 2020* 2021*
Shareofe-commercesales
Source: eMarketer
Mobile retail e-commerce sales in the United States
from 2013 to 2020 (in billion U.S. dollars)

17. Market Trends:
Mobile Commerce
The number 1 reason for mobile shopping is convenience.
IAB; On Device Research, Worldwide; July 22 to August 17, 2016; 18 years and older; 3,800; mobile
users who have purchased a product or service on mobile in the past 6 months
49%
46%
34%
26%
23%
20%
18%
11%
10%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
It was convenient
To save time
To get the best price possible/to save money
Couldn't find it in store
To get something immediately/didn't want to wait
For entertainment
It's safer than carrying cash
It's the only way for me to purchase items online
Advertising prompted me
Share of respondents
Reasons for mobile shoppers to purchase products via smartphone or tablet as of
August 2016

18. Market Trends:
Mobile Commerce
A ComScore survey found that the
most popular feature of a retailer’s
app is mobile coupons. Other
important factors are high-quality
product images and product
reviews.
Retailers are increasingly launching their own
combined loyalty and payment apps.
In the US, Target launched its own mobile
payments, called “Wallet”, in the Target app.
Wallet combines digital savings—Cartwheel
offers and Weekly Ad coupons—with the 5
percent REDcard discount. And, coming soon,
guests also will be able to store and redeem
Target GiftCards with Wallet. According to the
company, “Wallet in the Target app makes
checkout easier and faster than ever.”
50%50%49%48%47%
44%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Mobile couponsHigh-quality
product images
Product
reviews
Product search
with relevant
results
Access to
loyalty
points/status
Ability to check
store inventory
Shareofrespondents
Most popular features of retail brand apps according to
digital shoppers in the United States as of February 2017
comScore; UPS; United States; January 10 to February 28,
2017; 5,189

19. Market Trends:
Mobile Commerce
63%
51%
40%
37%
36%
35%
25%
20%
17%
11%
9%
1%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
Online stores (Amazon, Wal-mart, etc.)
Coffee shop (Starbucks, Dunkin` Donuts, etc.)
Fast food restaurant (Chik-fil-a, McDonald`s,…
Grocery store/supermarket
Car service/Taxi (Uber, Lyft, etc.)
Entertainment (music, movies, etc.)
Gas (Exxon Mobil, Speedway, etc.)
Games (Clash of Clans, Mobile Strike, etc.)
Speciality retail store (Best Buy, Office…
Transportation (mass transit, parking fees,…
Car sharing services (Zipcar, Car2go,…
Other, please specify
Share of respondents
Vantiv; Socratic Technologies; United States; June 2017; 25 years and older; 169 Respondents; used mobile phone to
make purchases
Which types of apps did you use in the past 3 months
to pay for goods or services through your mobile
phone?
Retailer apps are important for payment, loyalty – and data. Mobile wallet is on the
rise, with Apple Pay and PayPal on top.
Which mobile wallets have you used to pay at
checkout with your mobile phone in the past 3
months?
40%
40%
28%
24%
11%
11%
10%
10%
7%
3%
2%
2%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0%
Apple Pay
PayPal (using it in the store & not
through the internet)
Starbucks app
Android Pay
Walmart Pay
Chase Pay
Samsung Pay
Visa payWave
Masterpass by Mastercard*
Wells Fargo Wallet
Microsoft Wallet
Another mobile wallet, please specify
Share of respondents

20. Market Trends:
Apps vs. browsers
• US mobile shoppers prefer mobile
websites over mobile apps across all age
groups; however, most consumers don’t
have a preference.
• For younger consumers (18 to 24 years
old), the website option is relatively more
popular.
• However, in reality, 92% of time spent in
mobile is through apps, led by Facebook.
Where do you prefer to purchase from
when using a mobile phone or tablet?
Mapp Digital: United States; August 2016; 18 to 64 years; 1,765]
0.0%
50.0%
100.0%
150.0%
200.0%
250.0%
300.0%
350.0%
Mobile website Mobile app No preference
Shareofrespondents
Total 18-24 years 25-34 years 35-44 years 45-54 years 55-64 years

21. Market Trends:
Apps vs. browsers
23%
8%
10%
9%
8%
6%
21%
16%
22%
12%
10%
12%
6% 6%
19%
15%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Zero
apps
1 app 2 apps 3 apps 4 apps 5 apps 6-10
apps
11+
apps
Shareofrespondents
April 2016 April 2017
How many mobile retail apps do you currently
have on your smartphone?
comScore, United States; April 2016 and 2018; 18
years and older
• Retailers are increasingly offering apps to
maintain a foothold on the consumers’
mobile. 51% of US shoppers in a Fluent/
eMarketer survey (Jan. 2017) said they make
the majority of their mobile purchases
through apps, while 49% said they do so on
mobile websites.
74.15
33.68
27.77
24.65
22.05
19.3
13.32
13.17
11.57
8.12
8.08
7.1
5.73
5.61
5.29
0 20 40 60 80
Amazon
Walmart
Groupon
eBay
shopkick
Checkout 51
Wish
letgo
Walgreens
Kroger
OfferUp
Target
Ebates Cash Back &…
Flipp by Flipp Corp
Domino's Pizza USA
Million unique visitors
Most popular mobile shopping apps in
the United States as of July 2017, by
monthly users (in millions)
Verto Analytics ,United States; July
2017; 18 years and older

22. • According to eMarketer, the US wearables market is developing less than expected, with
just 24.7% change between 2015 and 2016, reaching 15.8% of population.
• eMarketer attributes the findings particularity to smart watches, which have “failed to
impress consumers”.
Device Trends:
The wearable debate
• Fitness and health are still the stars of the
consumer wearable market; and according to
Tractica, they will shift from general wellness
to medical connectivity – diagnosis and care.

23. • The CES 2017 show demonstrated interesting wearable tech innovations. These
technologies demonstrated the way health technologies can improve lives.
Smart watch against sleep
apnoea. The watch can
recognizing the problem and
normalizing sleep. It improves
sleeping quality via a
personalized artificial intelligence
that learns about the user.
Monitoring temperature easily
TempTraq offers a patch-like
smart device, that monitors
temperature, records, and
sends temperature data to
mobile devices so caregivers
can track.
Smart glasses for the
visually impaired
Device Trends:
Health and wellness wearables

24. Usage Trends:
Voice search
• With the vast improvement in the quality of
digital voice assistant like Siri, we can see
users starting to prefer voice search.
• According to Survey made by Fivesight
Research, 13% of iOS respondents use
Siri as a primary search engine.
• Another finding is that 72% of all
respondents (Android and iOS) reported
they used virtual personal assistant in their
smartphone.
• According to Think With Google, in the
Google app, 20% of searches are now by
voice. Google is making it easier to use
voice search through its apps.

25. • In 2017, Starbucks launched voice ordering capabilities combining the Starbucks
mobile iOS app and the Amazon Alexa platform.
• The Starbucks Reorder Skill Amazon Alexa platform allows customers to order from
Starbucks by using their voice.
• Customers simply need to say “Alexa, order my Starbucks,” giving them the ability to
order their usual items from their store wherever they have an Alexa device.
Usage Trends:
Voice search
Watch Video

26. • Mobile video’s role is increasing
in the path to purchase.
• A 35% increase in viewing on
mobile devices (smartphones
and tablets) to 28.8 minutes a
day, while viewing on fixed
devices (desktop PCs, laptops
and smart TVs) will rise by just
2% to 18.6 minutes a day
(Zenith)
Global mobile video traffic from 2016 to 2021 (in
terabytes per month)
Source: Cisco Systems, 2016
4,375,000
7,225,123
11,415,329
17,564,661
26,067,686
38,148,326
0
5000000
10000000
15000000
20000000
25000000
30000000
35000000
40000000
45000000
2016 2017* 2018* 2019* 2020 2021*
TrafficinTBpermonth
Usage Trends:
Mobile video
• After Snapchat, Instagram, Skype, Facebook and Messenger,
YouTube is adding Stories. The new feature is called “Reels.”
The launch of the Reels beta was mentioned briefly in an
announcement today about the expansion of YouTube
Community tab to all creators with over 10,000 subscribers.
• The company told TechCrunch that Reels is intended to
introduce a new video format on YouTube that lets creators
express themselves and engage fans without having to post a
full video.

27. • According to LMBA (Location
Based Marketing Association),
Mobile Location-Based marketing
creates deeper and personal
relationships with customers.
• A survey by LMBA found that 25%
of the marketing budgets are spent
on location based marketing and
“more than 50% of companies say
they use LBM to target customers,
and that number is predicted to
increase significantly in 2017.”
• “Wi-Fi/GPS on smartphones are
the most commonly used LBM
technology because it's the easiest
way to gather accurate data”.
Marketing Trends:
Location based ads
• Location-Targeted mobile ad spend is forecasted to
reach $ 32bn in 2021, compared to $ 12.4 bn in
2016, per BIA/Kelsey Industry watch.
• This growth translates to 38% of overall mobile ad
revenues in 2016, growing to 45% by 2021.
• Services include: Banner Display/Pop ups; Video;
Search Result; E-mail and Message; Social Media
Content; and Voice Calling

28. In conclusion…
• Convenience and seamless experiences continue to be in the heart of the
mobile experience.
• Communication, socializing, content consumption and commerce, have all
shifted into the mobile arena.
• “Mobile first” is more important than ever: when designing mobile experience,
we must take into account the special features of the mobile device – such as
the camera – and the immediacy of the usage behavior.
• Proximity, personalization and loyalty are the three key themes for
mobile in 2018.

29. Thank You!
The research was conducted by:
Meital Yachin
Schieber Research | Market Research & Competitive Intelligence
www.researchci.com | hamutal@researchci.com
More articles and researches on Carmelon Digital
Marketing website:
http://www.carmelon-digital.com