Mobile Advertising Just as Influential as TV in Purchase Process

Spectacled mature businessman using his smartphone while out and about

Independent mobile advertising platform, InMobi, has released the findings of its 2014 Mobile Media Consumption Report for Australia.

The report provides insights into changing trends in mobile media consumption habits. The report revealed that mobile commerce in Australia is on the rise, with 86 percent of respondents planning to participate in the next 12 months, an increase of 11 percent over 2013. Thirty-four percent believe that mobile has become a key factor impacting purchasing decisions, up from 27 percent in 2013.

“The rapid growth in smartphone adoption in Australia is creating a new wave of consumer behaviour that is changing the mobile landscape,” said Jon White, regional director and GM for InMobi in Australia and New Zealand.

“There are three clear trends driving this changing behaviour: users spending more time on their mobiles, the growing influence of mobile advertising and the rise in mobile commerce. Although mobile is impacting purchase behaviour, it is not yet being fully leveraged, providing plenty of opportunities for advertisers and marketers to take advantage.”

Top Trend #1: Australians are spending more time on mobile devices

Mobile is almost on par with television in terms of overall media consumption amongst the survey respondents, with the gap continuing to close. Significantly more users are now going mobile-only for their online access, shunning desktops and engaging in multi-screening behaviour if they do watch TV.

Key 2014 mobile media consumption statistics for Australia:

The average mobile user consumes 6.7 hours of media per day, with mobile (23.3 percent) almost surpassing television (23.8 percent) in terms of time spent.
Mobile is becoming an important companion particularly for in-between times – 86 percent use mobiles while waiting for something and 73 percent while lying in bed.
55 percent of mobile web users now use mobile as either their primary or exclusive means of going online, an increase from 40 percent in 2013.
However, time spent on mobile web represents only 10 percent of mobile usage, with 89 percent of time spent using apps.
Multi-screen behaviour is common – 89 percent of mobile web users engage in mobile activities (eg. social networking, text messaging) while watching TV, up from 66 percent in 2013.
Consumption of more general entertainment content, including music and videos, has risen sharply from 8 percent of time spent in 2013 to over 15 percent this year.

“It is generally understood that people tend to fill a lot of their downtime on mobile devices,” added Mr White.

“What our research indicates is that these downtime moments have become a huge opportunity for advertisers to reach their target audiences when they have the time, and the inclination, to consider new information.”

Top Trend #2: Mobile advertising is driving purchase behaviour at the same level as TV

Mobile has clearly emerged as an influential channel over consumer’s purchasing decisions from beginning to end. Fifty-five percent of mobile users in Australia are now as comfortable with mobile advertising as they are with TV or online advertising.

In response to mobile advertising:

69 percent have downloaded an application.
63 percent have visited the website of an advertiser.
51 percent have located an advertiser on a map.
50 percent have visited a store for more information.
44 percent have bought something via their mobile device.
40 percent have called an advertiser by clicking on the phone number in the ad.

Top Trend #3: Mobile commerce is rising, an increase of 11% expected this year

With smartphone penetration on the rise, more consumers than ever before are using their mobile devices to research product information and pick a retailer that best meets their needs during the buying process.

Mobile commerce insights include:

Mobile commerce is on the rise with 86 percent planning to conduct mobile commerce in the next 12 months, an increase of 11 percent over 2013.
65 percent have purchased something via their mobile device, with mobile commerce behaviour extending past digital goods, and now includes financial and physical goods.
34 percent believe that mobile has become a key factor impacting purchasing decisions, up from 27 percent in 2013.

“As the mobile landscape continues to evolve in Australia, the report has highlighted the power of the mobile platform and how it can have a real and measurable impact on a business,” said Mr White.

“Developing an understanding of the mobile behaviours of your target audience is key to building and refining a strong mobile strategy. By leveraging location tools, targeted mobile advertising and responsive websites, businesses can really drive consumer traffic and dramatically increase sales. It is the businesses that have taken steps to invest in mobile infrastructure that stand to win market share from competition, especially with Christmas this year looking to be a standout for mobile purchases.”

The 2014 Mobile Media Consumption report was published in conjunction with research partners Decision Fuel and OnDevice Research, to provide insights into changing trends in mobile media consumption habits.

The study includes data from 14,000 users across 14 countries, including 1,003 from Australia. The full global report is available for download on the InMobi Insights website here.

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