1. Conclusions based on the results of
Q4 2013
By Mohamed El-Deeb
Mobile Commerce
and Digital Marketing
2. Lessons from 2013 Holidays season
The Holiday of 2013 was unique to the U.S market because of several coincidences
resulting in a shorter-than-usual shopping season combined with the cold weather
that kept shoppers indoors. Retailers compensated by starting holiday deals earlier
this year, extending online deals season as well.
The outcomes from this nontraditional season brought the attention to a new era
in retail marketing that involves online sales (and mobile in particular) as well as the
digital marketing with the underlying focus on social networks.
According to Ecommerce Quarterly (EQ4 2013); sales results for this season
showed a 12% growth of online retail sales growth over that of 2012, while overall
retail growth was only 4.1%.
Only one in five online purchases were made on a mobile device (phone and tablet)
in 2012, while in 2013, it is one in three, growing approximately 50%. And with
mobile comes social networks, which also had a role in shaping 2013 retail climate.
Not Digital Marketing, but Brand Building
However, this increased importance of online commerce and the associated digital
marketing should not be treated as a separate discipline apart from the traditional
marketing efforts.
As proclaimed by Procter & Gamble’s global brand building officer, what matters
most in today’s digital marketing success is the creative idea and other brand
building efforts rather than the tools and technology involved in digital marketing.
So, a successful marketer should have a mindset that looks at digital marketing as
an integral part of the overall marketing campaign efforts of the organization. Thus,
digital marketing is a mean not a goal.
Mobile Commerce and Digital Marketing
Tools for future marketplace
3. MobileTakeover
In Q4 2013, one out of three visits to ecommerce websites came from
either a tablet or smartphone—up from one out of five last year— and,
overall, mobile ecommerce orders grew 102% year-over-year and
accounted for 4.22% of holiday ecommerce orders.
But, if we compare average order value of online purchases, we note that
the true mobile superstar of the holidays is the tablet.
This shows that tablets are comparable to desktops and laptops in that
shoppers will buy on them, whereas consumers are more likely to use
smartphones to browse.
Mobile optimization has to be a crucial part of marketing strategy and all
messages should render properly across all screens and devices. Using
responsive or fluid design increases mobile openings and engagement.
As Peter Fader says, “despite Android’s dominance over iOS in terms of
devices market share, Apple products delivered more sales. When we look
at all things that people using iOS did, it’s clear that it’s much more
profitable and attractive than Android.”
Website Trafic byDevice
73.21%
14.58%
12.21%
81.62%
9.55%
8.83%
Q4 2013 Q4 2012
Traditional
Tablet
Smartphone
MOBILE
COMMERCE
102%
Mobile Commerce and Digital Marketing
2013
2012
22.98%
Year Over Year Increase
Traditional
2013
2012
17.27%
Year Over Year Increase
Tablet
2013
2012
.50%
Year Over Year Increase
Smartphone
$164.13
$133.45
$153.44
$130.84
$129.42
$128.75
Average Order Value byDevice
(November& December)
EcommerceHolidayHighlights
4. Social media is becoming increasingly crucial for ecommerce success
too, while it may not have the critical significance of mobile. Also, due to
the volatile nature of social media, it is important to understand its true trends to
engagewithuserswhere theyaremostactive.
For example, traffic originating from social sites increased 13.9% from
2012 to 2013, but there’s been a 15% drop in social conversion rate (from
.87% in 2012 to .74% in 2013). This might be a result of Facebook’s declining
traffic. With around 75% of social traffic derived from Facebook, its
decline had a major role on the drop of conversion rate of social media
as a whole.
On the opposite end, Pinterest conversion rate rose to 29.8% in just one
year. According to a recent survey by the Harvard Business Review, a full
21% of Pinners have bought an item after pinning,repinning it, or liking it.
Mobile Commerce and Digital Marketing
PINTEREST
CONVERSION
RATE
30%
Social Networks Impact
One of the major marketing differentiating competencies is to keep delivery
promises with the right quantity, quality and time as per the order. That is
why more retailers are trying to minimize their lead time – the time
between order and delivery. Online commerce allows for keeping an
updated stock of the quantities and varieties available for purchase and the
expected time of delivery.
The capabilities of mobile and tablet devices allows for location based
targeting, which was not possible before in traditional online commerce
platforms.
Some retailers are implementing a combination of in-store and online
commerce channels – usually called click-and-mortar. Online retailers must
bridge the gap between both channels to keep the same shopping
experience through real-life and personalized marketing efforts.
Targeted marketing messages through social media or emails should
provide continuity of experience through the online store, keeping a
consistent feel.
Online Commerce vs. brick-and-mortar
5. References
1.Ecommerce Quarterly – EQ4 2013: Holiday Roundup, a monetate publication (December 2013)
2.P&G Brand Officer Says 'Digital Marketing Is Dead‘, Stephen Lepitak, The Drum (September 2013)
3.How Pinterest Puts People in Stores, Harvard Business Review (August 2013)
Mobile Commerce and Digital Marketing