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M-Commerce Value Growing Fast,
But Uptake Remains Flat

m-commerce-growth.jpgA recent survey in the UK by the Internet Advertising Bureau (IAB) has found that the value of mobile transactions is rapidly increasing, although the overall uptake of mobile commerce remains relatively flat.

During the past year, the average value of mobile transactions has risen from £12.20 to £17.49, an increase of 43%.

However, no matter how exciting this rapid increase is, the good news is tempered by the fact that overall uptake of M-Commerce remains relatively flat. This suggests that while the confidence of users of m-commerce is increasing, the industry is not succeeding in attracting new users.

The IAB survey, done in conjunction with research agency Work, contacted 1,000 UK consumers to understand their attitudes towards mobile commerce. The study found that m-commerce is very widespread, with over half (52%) of those interviewed having bought an item on their mobile device in the past year.

m-commerce_quote1.gifEqually positive, there was a 7% year-on-year decline in those who preferred to purchase an item using their PC compared to a mobile device.

It also appears that mobile commerce is now becoming more of a mainstream purchasing channel for many users. 42% of those who purchased an item through their mobile device said it was “easiest way to do it”, indicating that the convenience of M-Commerce is at least getting through to consumers. This compares with 25% who claimed mobile purchasing was “an experiment”.

Finally, there was also some data relevant to the on-going “app vs. mobile site” debate.

  • 40% of m-commerce users would prefer to buy directly from a brand’s mobile site as opposed to an app (17%).
  • This preference for mobile site m-commerce is backed up by the fact that the average value of a transaction was £20.77 through a mobile site as opposed to £13.15 through an app.

alex_kozlofiab.gif“It has been interesting to see from this study that the same people who were using m-commerce a year ago continue to use it in 2011 — but this time are spending significantly bigger amounts on their mobile phone” says Alex Kozloff, senior mobile manager at the IAB.

Finally the report also suggested that marketers should pay particular attention to NFC, with 74% of consumers surveyed saying that this was a “good idea” after it was explained to them. The survey also looked at the products that consumers would be most happy to purchase via NFC, which were travel (57%), Entrance fees (51%) and drinks/snacks (49%).

Kozloff went on to say: “There is clearly a consumer appetite to use m-commerce in store, so it will be fascinating to see consumer adoption of NFC as the technology becomes more commonplace in the UK.”
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