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mCommerce adoption will be driven by Women and Mature Users

India named as top performing mobile advertising region in BuzzCity’s latest quarterly report

BestMediaInfo Bureau | Delhi | January 18, 2012

BuzzCity’s latest quarterly report, released today, showcases the trends and forces in the mobile advertising industry. BuzzCity has seen a tremendous growth in the mobile ads served with a year-on-year growth of 139%. More than 126 billion ads were served in 2011, compared with 52 billion in 2010.

This time, last year, just three countries (India, USA & Indonesia) were serving in excess of a billion ads a quarter. However, by the end of 2011 another seven countries had broken into the Billion Club which includes UK, South Africa, Mexico, Saudi Arabia, Vietnam, Canada and Thailand.

BuzzCity has taken advantage of its global reach and level of traffic and surveyed consumers on their behaviour and attitudes towards mobile commerce and payments.  This has brought to the fore the following insights:

  • The industry has failed to communicate to consumers. 35% of users aren’t aware of the basic mobile transactions available.
  • Demographics are changing too. Although the majority of new mobile internet users globally are young males, female adoption of mobile web usage is growing globally – thereare nearly as many women as men using the mobile web
  • The proportion of mature users across the globe is growing; 15% are now over 35. The influence of this group is disproportionately high when mobile purchases are made. Users aged over 35 years made 19% of travel-related purchases, 23% of grocery purchases and 21% of household utility payments globally in the past six months.
  • When it comes to the type of transactions that are being made these are wide-ranging:
    • Services to stay connected - for example payments for phone credits are high in countries where the mobile is the primary point of access to the internet
    • Entertainment and lifestyle – items such as books, music and movies for home delivery as well as gadgets are all regularly purchased items, notable are Nigeria (31%), India (28%), UK (20%) and US (14%) all avidly buying these via their phones
    • Travel – consumers are keen to use their handsets to buy tickets and source hotel accommodation with growing usage in Saudi Arabia (21%), France (13%), Germany (11%), India (14%), South Africa (11%) and UK (10%).

Although these signs are very encouraging,it’s imperative that retailers provide reassurance on security, simplicity and the services availableso that m-commerce continues toflourish. Globally,users remain reluctant to engage in remote transactions, with 39% preferring to pay in person, and 21% preferring to charge purchases to their phones.The biggest barrier to m-commerce remains the lack of awareness of the tools and services available (35%), and concerns regarding security (27%).

“There are three missing elements, crucial to widespread adoption of mobile commerce,” said Dr KF Lai, CEO of BuzzCity. “They are communication, education and security. Users are not currently aware of the services out there. When they do come across such services, these simple processes are presented in a very confusing way. Banks and retailers will need to provide their customers with clear and unambiguous assurances about security.”

India continues to dominate BuzzCity’s charts throughout 2011, serving over 32 billion ads in the course of the year, to over 93 million unique users per month.

Dr KF Lai remarked: “The mobile industry has not only grown but matured, we are pleased to see yet more countries joining the Billion Club across our network and I have no doubt more will be joining in the near future. With more consumers gaining trust in mobile and brands taking advantage of spending power maturity the entire mobile ecosystem will benefit in coming months, ultimately paving the way for further demand for mobile and lifestyle content as well as mobile commerce offerings.2012 looks set to be an exciting year,” he said.

Info@BestMediaInfo.com

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