Mobile devices, especially smartphones, have become an almost inevitable part of consumers' daily lives. Consumers have come to rely on these devices for nearly every aspect of their daily lives, including mobile commerce (m-commerce).
According to a December 2022 Morning Consult poll, more than 60% of U.S. adults believe mobile shopping is essential for the convenience of online shopping. Although not as important as home delivery, free shipping, and free returns, mobile ranks high among the reasons U.S. consumers shop online.
The increasing use of smartphones by consumers for shopping makes it imperative for retailers and online marketplaces to create well-designed, easy-to-use experiences on both mobile websites and apps. It's highlighted. According to eMarketer's June 2023 forecast, US mobile phone users will spend on average just three hours and fifteen minutes (3:15) per day on their phones in 2024. It will be.
As smartphone usage increases, m-commerce sales will also increase. U.S. retail m-commerce sales are expected to reach $558.29 billion in 2024, accounting for 7.4% of total retail sales, according to eMarketer's November 2023 forecast. Furthermore, m-commerce is estimated to account for 44.6% of total US retail e-commerce sales in 2024.
This guide details the various m-commerce trends that retail and commerce marketers need to know to reach their target audience.
Smartphones and social media use go hand in hand, as Instagram, TikTok, and other platforms are primarily app-based. According to eMarketer's June 2023 forecast, US mobile phone users will spend an average of 1:14 minutes per day on social networks.
Since social media serves as a discovery point for new products (from brand accounts, influencer content, and sponsored ads), it makes sense to add shopping functionality to social platforms. Shoppable media enables seamless purchasing through branded content and advertising (such as videos and still images) with direct access to product pages and links to purchase directly within apps and retail sites. can.
Shoppable media is powering U.S. m-commerce by making social commerce easier and more streamlined, allowing consumers to go from consideration to purchase in just a few clicks.
To encourage shoppers to make in-app purchases, some social platforms are introducing native checkout tools. For example, Instagram Checkout allows users to save payment details in the app. When you're ready to make a purchase, Instagram will auto-fill your information to complete the transaction. However, users are reluctant to complete purchases within the app.
Because of this consumer hesitation, Pinterest has taken a different approach to social commerce through its partnership with Amazon. Shoppable ads on Pinterest take users to her Amazon listings for featured products to purchase. His October 2022 SimplicityDX survey found that nearly three-quarters of consumers ages 16 to 24 prefer to buy directly from retailers. Data privacy is a concern, but consumers prefer to rely on established retailers for transactions, shipping, and delivery.
However, the introduction of TikTok Shop in 2023 highlights the potential of social commerce. According to Jungle Scout, nearly 70% of Gen Zers are willing to buy products directly on TikTok, even though social buyers in the U.S. are smaller than meta Facebook and Instagram.
On TikTok, influencers play a key role in social commerce momentum. For example, TikTok shop listings and affiliate links give TikTok influencers the opportunity to leverage their marketing by participating in those deals.
Influencers are points of discovery in themselves, encouraging their followers to buy the products featured on their accounts. According to Izea's 2023 Influencer Marketing Trust Survey, 50.2% of US internet users in 2022 purchased a product they saw an influencer using.
Despite consumers trusting influencers' product recommendations, influencer-led live shopping events streamed on apps like TikTok, Instagram, and Twitch are not as prevalent in the U.S. as they are in China. do not have.
According to a December 2022 Coresight Research study, less than a quarter (23%) of U.S. livestream viewers purchase a product during a live shopping show. Slightly more viewers buy a product recommended by the host (29%) or a featured product after the live broadcast (34%).
CThe commerce potential of connected TV
In addition to spending time on mobile devices for commerce and other activities, consumers are also increasingly watching connected television (CTV). By 2024, U.S. viewers will spend just over two hours each day watching her CTV content.
As CTV viewership grows, so does ad spending for brands and retailers, opening the door for CTV ad formats to lead to m-commerce opportunities. eMarketer predicts that his CTV ad spending will exceed his $30.1 billion in 2024.
By comparison, in 2019, when this forecast was first launched, viewers spent less than an hour (0:57) on CTV and ad spend was just under $7 billion.
For example, retail media partnerships have driven shoppable CTV as brands look for ways to close the gap between awareness and purchase.
During Super Bowl LVII in February 2023, Instacart partnered with Anheuser-Busch InBev to create a shoppable TV ad for the Michelob Ultra brand leading up to game day.
The ad featured famous athletes and included a QR code directing viewers to Michelob Ultra's Instacart page. From there, viewers could purchase beer and other staple snacks for their Super Bowl viewing party.
The use of QR codes is rapidly increasing as marketers seek to create more interactive and trackable experiences. According to his August 2022 forecast from eMarketer, in 2024 he expects 97.8 million U.S. consumers to use his QR scanners on smartphones, and that number will increase to 100 million by 2025. expected to exceed that of humans.
Although not limited to CTV or linear TV, QR codes can be used to access additional information and are often used to guide users to the point of purchase.
Because consumers often multitask, such as using their smartphones while watching TV, marketers are looking beyond linear TV to CTV to create engaging ad formats that drive m-commerce. You need to put effort into it.
In-store mobile usage and commerce
Smartphones have become central to the omnichannel shopping experience, as more consumers use their mobile phones to shop in-store.
According to a March 2023 study by Airship and Sapio Research, nearly 80% of consumers worldwide visit a retailer's website on their smartphone when shopping in-store, and 74% use a retailer's app. I'm using. While in the store, consumers may use their mobile phones to compare prices, read reviews, and access digital points cards and coupons.
Shoppers have come to expect smartphone-like functionality to be integrated into physical stores.
Retailers must prioritize smartphone optimization and in-store mobile integration. Features such as “scan and go”, QR codes, and AR have the potential to provide seamless and engaging omnichannel experiences.
To meet consumer expectations, in-store digitization is bringing the best aspects of online shopping into physical retail spaces. It will ultimately change the way consumers discover, engage with, and purchase products.
For example, some retailers are experimenting with mobile integrations such as digital wayfinding with location tracking to help find the right aisle or shelf for a product, and digital merchandising that provides shelf ratings and reviews. . These mobile-friendly add-ons increase in-store engagement while influencing product consideration and ultimately purchase.
In-app mobile commerce
As consumers continue to use mobile devices in commerce environments, marketers must adopt mobile-first strategies to improve the shopping and checkout experience.
Mobile apps are popular among consumers and have continued to increase in adoption since the COVID-19 pandemic, which saw a noticeable increase in app usage. According to Adjust's March 2023 report, consumers around the world spent 12% more time on m-commerce apps in 2022 compared to 2021.
But not just any m-commerce app will do. Consumers are attracted to apps that add value to their shopping experience. According to his April 2023 study by Scanbot, features such as loyalty programs (63.4%) and exclusive offers (62.5%) are considered most valuable to U.S. consumers.
Similarly, incorporating user-friendly app features such as real-time inventory updates, click-and-collect functionality, and detailed product information increases value for omnichannel shoppers.
Buy now, pay later (BNPL) payment options are also gaining traction among mobile shoppers. BNPL services such as Klarna and Afterpay are popular due to their flexible repayment terms, app-based shopping, and simple user experience.
mobile proximity payment
Mobile proximity payments, enabled by digital wallets like Apple Pay and Google Pay, can increase basket size and frequency of shopping while streamlining shopping.
The proximity mobile payments space is maturing as the technology becomes more mainstream. Consumers are also becoming more confident when purchasing via smartphone.
With the exception of PayPal, U.S. adults are evenly divided on whether to use mobile payment apps online or in stores. According to CivicScience data from July 2023, more than a third of users (36%) use PayPal online compared to using the app in-store. He is 29% of users.
As the space continues to mature, mobile wallet providers will compete for user loyalty. According to a study by McKinsey & Company, approximately 30% of customers plan to use three or more digital wallets in the next few years. To increase loyalty, providers offer various features such as BNPL options, loyalty points cards, event ticketing, etc. so that users do not have to move from one wallet to another to meet their needs. must be incorporated.
By generation, Generation Z is more likely to pay using their smartphone. As this mobile-first generation reaches its economic peak, Gen Z will continue to drive new payments growth. According to eMarketer forecasts, nearly 20 million Gen Z will adopt proximity mobile payments in the next few years, reaching 46.2 million by 2027. Predicting Gen Z expectations and shopping behavior is essential for retailers who want to win long-term loyalty.
By understanding payment behavior, retailers can better identify what payment options to accept at digital and physical points of sale. For example, merchants are increasing the acceptance of her BNPL payment method online and in stores, as more consumers prefer to pay this way. According to eMarketer's July 2023 forecast, BNPL spending is expected to reach $124.82 billion by 2027.
Benefits of m-commerce for retailers, advertisers, and consumers
- Collect data about shopper behavior and preferences
- Better manage your customer experience
- Improving engagement and communication with consumers
- Track consumer locations to determine purchasing patterns
- Reach a wider audience
- Improved product discovery
- Appeal to consumers on the go (purchase in just a few clicks)
