Consumer confidence in mobile commerce at all time high: BuzzCity Study

BuzzCity issues its latest quarterly report on the current trends dominating the global mobile advertising industry. The report reveals the appetite for mobile commerce is at an all-time high, with consumer confidence diminishing previous fears over security of payments - 3% compared to 27% a year ago.

Dr KF Lai, CEO of BuzzCity comments on this shift:  “It is clear that consumers are now far more receptive to mobile commerce than ever before; this comes as a result of continuous education by the mobile industry to overcome concerns such as trust and security, combined with falling data costs and increased capabilities of smartphones and tablets.”

The unstoppable proliferation of mobile devices, along with the convenience they provide, has put online stores and the ability to compare and research purchases directly into the hands of consumers.

BuzzCity’s research illustrates how shoppers are using their phones to “browse and buy” – search engines and social media are a major source of information, along with 14% using review and comparison sites, and 17% relying on friends’ recommendations. However, mobile advertisements are still influencers to a purchase with 17% claiming to have been persuaded to buy via an ad. With this wide range of mobile touch points brands need to continue to develop an optimum shopping experience, in order to reap the rewards of all that mobile commerce has to offer.

This latest report highlights a key factor in the mobile purchasing chain – convenience.  With 74% of consumers using mobile for last-minute purchases, linked to the increasing prevalence of mobile vouchers and QR codes to drive people to connect mobile with the offline world.

BuzzCity’s research explores the impact, this increased consumer confidence has had on m-commerce, and that there has been a shift in what people are buying - not only purchasing digital products for their phones in the form of entertainment content (video, games, music) but also physical products (clothes and electronics).

Dr KF Lai comments on the report:  “Mobile is now the first screen for many. Our research shows that there are many influences involved in consumers’ decisions when shopping via a mobile device.  Marketers must ensure that they put strategy before tactics and take into consideration user behaviour as well as multi-screen viewing. Any brand embarking on global campaigns should bear in mind that consumer reliance on these services can differ greatly by region, and merchants need to understand these cultural nuances by localising content strategies and apportioning resources accordingly.”

Other highlights of the report include:

• India saw four quarters of double digit growth and closed off with a year-on-year growth of 46%.
• While Nokia remains top device in India, its dominance is being challenged by Samsung
• Mobile surfing expected to grow in India as smartphone penetration increases beyond 25%.