retail, mobile and ooh

Retail, Mobile and OOH

See Notes Pages for Details

Retail, Mobile and OOH• Retail Status

- Stores, E-Commerce and M-Commerce- Category comparisons- Why consumers prefer to purchase in store

• Mobile’s Role - Researching > Buying- Mobile Influence Factor for Retail Stores

• OOH & Mobile- Immediacy- Review, Locate, Compare and Convert- OOH Mobile Poster Interactions - EE Partnership

Online retail is growing at a fast pace but by far the majority of retail purchases still take place in stores

OOH drives consumers online but its key USP is driving in store due to proximity to retailers

High street retailer sales hit by online at Christmas

M-Commerce is perceived as threatening high street retailers… but Mobile could actually be a blessing in disguise

Online accounts for spent on Retail in GB

2008 2009 2010 2011 2012 2013 20140

2

4

6

8

10

12

4.46

7.18.7 9.4

10.5 10.7

%

Source: Retail Sales Jan 2014 – Office National Statistics

Internet as a % of all Retail Sales(January Monthly Figures for Each Year)

11%89%

over £1 in £10

- Almost treble that of 2008

Almost £9 in £10 still takes place in stores

Need to consider all months in the year - Online Sales are always higher at Christmas

2009 June

2009 Dec

2010 June

2010 Dec

2011 June

2011 Dec

2012 June

2012 Dec

2013 June

2013 Dec

0

2

4

6

8

10

12

14

5.66.9 6.4

8.57.7

9.48.5

10.99.7

11.7

Source: Retail Sales 2014 – Office National Statistics

Internet as a % of all Retail Sales(June and Dec Monthly Figures for Each Year)

+ 23%

+ 33%+ 22% + 28%

+ 21%

Stores still generate by far the majority of all Retail Sales yet E-Commerce and M-Commerce are growing significantly faster

Source: Deloitte Mobile Influence 2013

The High Street and Out of Town Shopping Malls are the predominant place of purchase for most categories

OOH is ideally suited to influence purchases on both the High Street and Out of Town locations

EE data identifies hotspots forconsumers accessing websites/apps on their smartphones when OOH & is targeting pedestrians

Source: Retail Sales Jan 2014 – Office National Statistics

Category Average Weekly Sales (£billion)

% Online

ALL RETAIL £6.4bn 10.7%

Predominantly Food Stores £2.7bn 3.7%

Non-specialised stores (department stores)

£0.5bn 10.5%

The Textile, clothing and footwear stores

£0.7bn 12.1%

Household goods stores £0.6bn 5.6%

Other stores £0.8bn 7.7%

Non-store retailing (Stalls, markets, mail order &

retailers that sell mainly online)

£0.4bn 66.1%

Fuel Stores £0.7bn -

Official Figures from the ONS highlight the importance of stores for most product categories although online is growing

Stores in High Street locations are still the main place of purchase for consumers

Source: Deloitte Consumer Review 2013 “Re-inventing the role of the High Street)

Where do you shop for the following categories?

And stores in Out of Town locations are key for several product categories

Source: Deloitte Consumer Review 2013 “Re-inventing the role of the High Street) Where do you shop for the following categories?

Purchasing & Delivery options across categories demonstrate the range of opportunities for consumers and retailers

Source: Deloitte Consumer Review 2013 “Re-inventing the role of the High Street)

The High Street is the main location for - Services: Banks, GPs, Hairdressers- Leisure: Cafes, Restaurants, Bars

OOH has a proximity to Services & Leisure facilities that no other traditional ATL media can achieve

The High Street is the predominant place to access services

Source: Deloitte Consumer Review 2013 “Re-inventing the role of the High Street)

Where do you usually go to access the following services or activities?

The High Street is also the predominant place to access health/beauty services & Leisure activities

Source: Deloitte Consumer Review 2013 “Re-inventing the role of the High Street) Where do you usually go to access the following services or activities?

Consumers still prefer to shop in physical stores for :- Experience- Discovery- Convenience- Interaction- Promotions- Design/ Aesthetics

Why consumers still prefer to shop in stores

Source: Paco Underhill – The Science of Shopping

Discovery The adventure of finding things that weren’t researched/planned - Impulse shopping is exciting

Convenience / Changing Priorities Stores are still the most convenient place to purchase formany product categories. Many decisions also don’t warrant as much thought as they did in the past so convenience is key

Touch / The Senses We now live in a tactile deprived society so consumers still like to experience the material world first hand to make decisions

Source: Paco Underhill – The Science of Shopping

Interaction Consumers still like to get advice from people face to face and in store best environment for this

In Store Promotions / Bargains Recession has lead to a value conscious consumer constantly looking out for in store offers. With the threat of e-commerce, retailers now have more sales than ever

Packaging With the abundance of choice, consumers now look more and more to designs/aesthetics to help them make decisions

Why consumers still prefer to shop in stores

Retail, Mobile and OOH• Retail Status

- Stores, E-Commerce and M-Commerce- Category comparisons- Why consumers prefer to purchase in store

• Mobile’s Role - Researching > Buying- Mobile Influence Factor for Retail Stores

• OOH & Mobile- Immediacy- Review, Locate, Compare and Convert- OOH Mobile Poster Interactions - EE Partnership

Online sales on mobile platforms have increased significantly in the last year alone but increase is driven more by tablets than smartphones. Most online purchases are still made via PCs / laptops

When OOH drives consumers online to make a purchase, it is more than likely the sale was made on a desktop

Mobile (Smartphone/tablet) as a sales platform

Q2 2012 =

Q2 2013 =

Source: 2013 Capgemini and IMRG

MOBILE (SMARTPHONE / TABLET) AS A % OF ONLINE SALES

11.6%

X 2

23.2%

has doubled over the last year

Tablets are driving this growth more than smartphones- but desktops make up the majority of online purchases

Source: Affiliate Window Data for October 2013

Oct 2012 11.2%

Oct 201322.7%

X 2

7.9% 14.6% 77.5%

MOBILE (SMARTPHONE / TABLET) AS A % OF All ONLINE SALES

Smartphone Tablet Desktop

Smartphones role in the consumer journey is much greater as a Store Sales Influencer than as a sales platform as consumers do Mobile research which influences the purchase decisions they make

OOH can be the trigger for consumers to research products or services on their smartphones

Mobiles role in the consumer journey is greater as a “stores sales influencer” than as a sales channel

Source: Deloitte Mobile Influence 2013 (Sample 2,013)

Mobile Influence Store Factor

“Retailers need to shift their attention

from mobile as a sales channel to

viewing mobile as a driver of store

sales”

2013 2017 (Predicted)

Consumers using mobiles on shopping trips are both more likely to purchase (convert) and spend more

Source: Deloitte Mobile Influence 2013 (Sample 2,013)

Consumers using their smartphoneseither before or during shopping tripswere more likely to make a purchase

And they spend more on average

The “Mobile Influence Factor” varies by retail category but for all it will grow significantly over the next few years

OOH drives consumers onto their smartphones to research all retail categories but for many brands this is becoming a commercial necessity rather than a nice to have

A “Mobile Influence Factor” can be calculated and applied to different categories

Source: Deloitte Mobile Influence 2012/2013

“Mobile Influence Factor” = % Store Sales where Smartphones

influenced sale during shopping journey

ElectronicCategory Example

(2012)

Total buying

population

Ownsmartphone

Use for store

related shopping

Use for specific

retailcategory

Frequency use for

specific category

MobileInfluence

Factor

58% 46% 52%77% 10.7%X X X

The Mobile Influence factor varies by category

Source: Deloitte Mobile Influence 2013

Used smartphones

to shop

Frequency of use

for category

Mobile Influence

Factor 2013

PredictedMobile Influence

Factor 2017

Electronic/Appliance

Sports, Toys, Games, Hobbies

Furniture/Home Furnishings

Health/Personal Care/Pharmacies

Food / Beverage

Convenience Store / Petrol Station

AVERAGE(WEIGHTED)

Source: Deloitte Mobile Influence 2012

Mobile Influence factor by category (2012)(Categories not measured in 2013 Survey)

Used smartphones

to shop

Frequency of use

for category

Mobile Influence

Factor 2012

PredictedMobile Influence

Factor 2016

Books and Music stores

65% 43% 7.4% 18.7% - 23%

Clothing /Footwear /

Accessories

62% 36% 5.9% 14.9%- 18.3%

Department Stores

63% 34% 5.8% 14.6% - 17.9%

Smartphone owners spend 15 hours a week doing research on their mobiles, most of which leads to purchases in store rather than online

If OOH creative is engaging enough to drive a consumer to research on their smartphone then the chances of it converting to a purchase in store are high

Consumers spend over 15 hours a week on mobile research which influences store sales

Source: Nov 2013 Google Mobile Path to Purchase (Nielsen Research - 950 smartphone users, all of whom had made a purchase in the last 30 days)

Monday Tuesday Wednesday Thursday Friday Saturday Sunday

MobileWeb Time

MobileApp Time

Source: Nov 2013 Google Mobile Path to Purchase (Nielsen Research - 950 smartphone users, all of whom had made a purchase in the last 30 days)

Most products researched on mobiles are still primarily purchased in store

Where did you make your most recent purchase in the following categories?(9 different verticals: Restaurants, Food & Cooking, Finance, Travel, Home & Garden, Apparel & Beauty, Automotive, Electronics, Health & Nutrition)

Where did you make your most recent purchase in the following categories?

PurchasedIn-store

PurchasedOnline

(desktop/tablet)

PurchasedDirectly on

mobile

Those researching on smartphones usually go on to make a purchase

Source: Nov 2013 Google Mobile Path to Purchase (Nielsen Research - 950 smartphone users, all of whom had made a purchase in the last 30 days)

Convert to Purchase

77%

63%

59%

93%Of people who

have ever used mobile to research go on

to make purchase

When consumers are in store, mobiles could actually encourage them to make purchases there and then and reduce the effect of showrooming

Mobile showrooming fears for retailers“Showrooming” is the tactic of visiting a store to examine a product

with the intention of buying it elsewhere later

• Mobiles are commonly perceived as a threat to retailers regarding showrooming as they make it easy for shoppers to seek out better prices elsewhere & undermine the authority of store’s sales assistants

• 1/3 (33%) phone owners admit to showrooming • 1/5 (21%) phone owners have used their mobiles for showrooming

• But only 8% have purchased product researched in store on their mobile

• Mobiles can provide retailers with chance to reassert their influence

• Reassure on Price (Check price comparison)

• Reassure on Suitability (Seek opinions of friends/family, reviews)

• Mobile Coupons

• Improving Store Navigation

Source: 2013 TNS’s Mobile Life (Global)

Retail, Mobile and OOH• Retail Status

- Stores, E-Commerce and M-Commerce- Category comparisons- Why consumers prefer to purchase in store

• Mobile’s Role - Researching > Buying- Mobile Influence Factor for Retail Stores

• OOH & Mobile- Immediacy- Review, Locate, Compare and Convert- OOH Mobile Poster Interactions - EE Partnership

OOH Advertising and Mobiles have immediacy in common providing the opportunity for consumers to respond to triggers and desires instantaneously

OOH advertising generates 5 major types of response- both immediate and delayed

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Thinking about advertising you may have seen in places such as on the side of buses, on posters on the high street, in rail or tube stations, bars or shopping centres and by the side of the road. Have you taken any of the following actions in the last seven days?

Went online Word of Mouth Further Brand Consideration/Enquiries

Interaction / Mobile Response

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Both OOH & Mobiles have immediacy in common which maintains momentum on the consumer journey

Maps

MOBILE HELPS TO MAINTAINS MOMENTUM

DRIVING CONSUMERS TO THE NEXT STAGE IN

CONSUMER JOURNEY

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IMMEDIATE STORE VISITRESPONSE

Pricing

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Source: McKinsey Journey

When OOH & Mobiles Converge, this generates the highest level of engagement on the consumer journey

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RESPONSE

IMMEDIATE STORE VISITRESPONSE

Immediacy is key to converting to purchase after researching on mobile

Source: Nov 2013 Google Mobile Path to Purchase (Nielsen Research - 950 smartphone users, all of whom had made a purchase in the last 30 days)

NB. This varies significantly by category

Q: Usually how quickly after you begin engaging with your Smartphone are you looking to make a category purchase?

Consumers use their smartphones for - Reviews- Locations/directions- Opening hours- Inventory Checking- Making Reservations- Price comparison

Most consumers used smartphones/tablets to look up reviews, locations/directions and price comparison

Activities done on smartphone/tablet

in past 30 days

Restaurant Travel Automotive

Looked up reviews 58% 53% 37%

Looked up business location 64% 29% 43%

Looked up directions to business 49% 26% 29%

Looked up pricing info/compared prices 45% 70% 53%

Source: xAd/Telmetrics Mobile Path to Purchase Study 20132,000 UK Adults (Smartphone owners: 1,455, Tablet owners: 1,179)Engaged in activities relating to either Restaurant, Travel, Automotive categories in last 30 days

7 in 10 smartphone owners have used a Store Locator to find a store

Source: Nov 2013 Google Mobile Path to Purchase (Nielsen Research - 950 smartphone users, all of whom had made a purchase in the last 30 days)

Restaurants Electronics Apparel & Beauty

7 in 10 smartphone owners who regularly use mobile search have used Click to Call function often to find store information

Source: Google, Ipsos “Click to Call” Research September 20133,000 smartphone users aged 18-74 who use mobile search at least a few times week and made purchase in product category in last 6 months

Click to CallThe largest reasons for

“click to call” all demonstrate consumers

are interested in visiting a store

Click to Call reasons vary by category but most have a high level of store visiting intent

Source: Google, Ipsos “Click to Call” Research September 20133,000 smartphone users aged 18-74 who use mobile search at least a few times week and made purchase in product category in last 6 months

% who may call a business directly from a search for each task

Consumers have an appetite to use their smartphones to interact with OOH if it provides a real benefit to them often in proximity to the poster

Consumers see access to similar types of information as the main reasons to interact with posters using smartphones

Q: If you saw a poster advert that interested you, how likely would you be to use the NFC (Near Field Communications) technology on your mobile for the following

Source: Smartphone Real World Interactors 2012 (Posterscope/Clear Channel)Sample: 1,000 UK/US Smartphone users all ever used 1 of 7 Mobile Interaction Technologies

Proximity Interactive OOH is proven to generate sales

Voucher downloaded by 2,265 passengers from just one 6 sheet

Approximately 75 downloads a day

Proximity campaign London Luton Airport

17th Dec - 16th Jan 2010

Activating Bluetooth and accepting invitation from Burger King, airport visitors received 15% off their meals at the airport

EE data helps select poster sites providing

the advertisers with the best possible chance

their advert will evoke a consumer response

- Driving online on Mobile

- Driving in storeBoth

Mobile usage hotspots

Data

Re-inventing the approach to OOH planning using big data. In partnership with EE, using aggregated and anonymised location based mobile data to understand ‘hotspots’ of mobile web and app usage

EE Data provides information to plan in hotspots relevant to a particular category

Selecting sites in geographical locations which are hotspots for consumers accessing websites or apps relevant to a particular retailer category such as electronics,

= hyper-targeted posters that provide the featured advertiser with the best possible chance that their advert will evoke a consumer response

Fashion, Mobile & OOH Example

Fashion, Mobile & OOH • £1bn is spent in GB weekly on Fashion & Footwear and 11% of this

online so the vast majority is spent in OOH stores (ONS Nov 2013)

• 50% shop for clothing/footwear/accessories on the high street, 36% in town but not on the high street, 44% in out of town shopping centres and 41% online (Deloitte Consumer Review 2013)

• 59% of consumers buy clothing/footwear/accessories in store and take it home, 13% order online and collect in store

(Deloitte Consumer Review 2013)

• Consumers like to discover and purchase clothes on impulse • 60% of GB adults have bought clothes on impulse and 61%

like to try clothes before they buy them (OCS 2013)

• 2012 Mobile Influence Factor of 5.9% for Clothing/Footwear/ Accessories and this is predicted to grow to 15-18% by 2016

(Deloitte Mobile Influence Factor)

• Of all people who have ever used smartphones to help them shop, 62% have done this for the clothing/footwear/accessories category (Deloitte Mobile Influence Factor)

• Consumers want to make immediate purchases and 83% of those using mobile to research want to purchase within a day – demonstrating the desire to act immediately, often to visit stores

(Google Path to Purchase Study Nov 2013)

• Of the 63% of consumers who considered making a Fashion purchase 40% went on to buy something – 63% conversion rate

(Google Path to Purchase Study Nov 2013)

• 31% of smartphone owners have used a Store Locator to find a fashion store (Google Path to Purchase Study Nov 2013)

• 59% who use “Click to Call” for Retail want to check for business hours & 52% to inquire about inventory demonstrating a desire to visit stores (Google Click to Call Sept 2013)

• 84% smartphone owners would consider interacting with a poster with the mobile to get local information directions if they saw a poster that interested them - demonstrating a desire to visit a store

(Posterscope 2012 Smartphone Real World Interactors)

Fashion, Mobile & OOH