Careful with those IAB numbers on mobile purchasing

18 October 2010

Some interesting numbers in from the IAB this morning with an attention grabbing headline that 23 million people in the UK are already using their mobile phones to make purchases.

That seemed a lot - about half the population using mobile to make purchases is a big number. But what is this?  The IAB says that 51% of mobile owners (23 million people) are  using their device to make payments, redeem coupons or research products and services. Wait a minute, researching a product or service counts as using your phone to make a purchase?

It seems so. The IAB survey found that 43% of respondents had used mobile to conduct research for a purchase, whilst 40% have used their mobile phone to check shop details such as contact information, location and opening hours.

Now, I'm open to the view that this could represent a missed opportunity for retailers - if someone is looking for a location then clearly there's an opportunity for some sort of transaction - but I think it's a stretch to say that that represents "using their mobile phones to make purchases".

So how many people are actually buying real things using their phone as the payment mechanism? Well, 37% of people reported that they have used their phone to buy something, but that includes ring tones, download content, apps, anything through PSMS etc. It also seems to be a historical number, capturing anyone who has ever used their phone to buy something.

And yet here's Alex Kozloff, mobile manager at the Internet Advertising Bureau providing this little quote: "Almost half of mobile users are making purchases."

You're probably going to see this number bounced around the news sites and Twitter today. But remember that that "almost half" is in fact 37% - and even that number seems to be to total number of people who have ever used their phone to buy anything.

IAB PRESS RELEASE:
23 million people in the UK already using their mobile phones to make purchases
New research from the Internet Advertising Bureau – the trade association for online and mobile advertising – reveals that mobile commerce has already become widely adopted in the UK, with 51% of mobile owners (23 million people) using their device to make payments, redeem coupons or research products and services. The study shows once again the urgent need for retailers to catch up with the mobile consumer and enhance the user experience to ensure they don’t miss out on sales.
The study – based on a nationally representative sample of over 1000 mobile owners and carried out by work research - was designed to investigate genuine consumer engagement with m-commerce in the UK. It found that 43% of respondents had used mobile to conduct research for a purchase, whilst 40% have used their mobile phone to check shop details such as contact information, location and opening hours. Usability was found to be key, with those who find research easy 16% more likely to make a purchase than those who don’t.
The study shows just how significant the mobile phone now is within the path to purchase, as well as how increasingly sophisticated mobile consumer behaviour has become, showing that:
Consumers are buying already. 37% of people have used their mobile to purchase a service/product direct to their phone bill. Within this, 32% have paid for downloaded content, 21% have used a shortcode to pay for a product/service, and 13% entered a phone number to pay for a product/service.
Average spend is high. 27% of mobile owners have used mobile to purchase via cards, bank details or PayPal. This includes buying an a p through an app store (21%), via mobile website (19%) and via an app itself (15%). Consumers purchasing via these means are spending an average of £12.20 each time.Mobile is convenient. 42% of consumers who made a purchase on mobile did so because they felt it was the easiest option. The mobile phone has also become a essential part of personal admin, with a fifth of mobile users (21%) already using coupons and vouchers on their mobile, with 23% having used their mobile phone as a ticket for events or travel.
Smartphones are driving growth.Smartphone users were found to be 63% more likely to engage in m-commerce than all users. Of those mobile users who had not engaged with mobile commerce, 35% were simply unable to because their current handset did not allow it.
The mobile consumer is spontaneous. Of those consumers who had made a purchase via their mobile device, around a third (31%) did so due to a spontaneous or impulsive decision. A quarter of people (25%) liked the experimentation factor of purchasing via their mobile phone.
Alex Kozloff, mobile manager at the Internet Advertising Bureau said: “Whilst m-commerce is on the radar for many retailers, our research highlights the need for more urgency in terms of developing a mobile presence and ensuring the user experience is as smooth and secure as possible. Almost half of mobile users are making purchases, and of those who don’t, half again are certain they will in the future, so investment in a solid mobile retail presence is essential. The IAB is committed to helping these brands adapt, providing a steady stream of research and guidelines to facilitate a better understanding of the mobile consumer.”