The Role of Mobile in the Path to Purchase of FMCG/Retail Products in Australia

June 2015

1. Research Objectives & Methodology

2. Key Findings

3. Mobile Media Behavior

4. The Mobile Path To Purchase of FMCG/Retail Products

5. Implications for Advertisers

6. Conclusion

CONTENTS

ABOUT THE RESEARCH

The customer journey and path to purchase has changed from a linear process to a more convoluted route, a change that can be largely attributed to digital technology. Digital and mobile technology imply that consumers are ‘always on’ and have the ability to shop and buy, anytime and anywhere. These channels are critical engagement platforms in the customer journey.

The path to purchase for mobile devices is entering its next era. To help Brand advertisers better connect with the people who matter to them, InMobi has partnered with YouGov to explore how the path to purchase has changed and what these shifts mean for mobile marketing. This study explores The Role of Mobile in the Path to Purchase of FMCG/Retail Products in Australia.

The InMobi Path to Purchase study is a comprehensive report that measures what consumers do on their mobile devices and captures actual preferences and behaviors. This study allows marketers to identify, understand, and engage with consumers along their journey.

Mobile Path to Purchase: FMCG/Retail Products, Australia

RESEARCH OBJECTIVEInMobi, in partnership with YouGov, conducted a study to explore consumers’ path to purchase of FMCG / Retail products, and in particular, examine the role mobile devices play within this purchase cycle.

The main objectives of this study were to:

1. Look at how consumers currently engage with their mobile devices and how this is changing

2. Gain an in-depth understanding of consumer behavior when browsing and shopping across multiple channels

3. Understand the impact of mobile advertising on the purchase funnel of FMCG/Retail products

4. Identify mobile activities that could engage consumers and drive the trial and purchase of FMCG/Retail products

RESEARCH METHODOLOGY

The study was developed by InMobi and YouGov. The sample was recruited via the YouGov proprietary online and mobile panel. It was based on a representative audience of smartphone and tablet usersAustralia

• Sample size: 876

• Gender ratio: 54% Male vs. 46% Female

• Respondents’ language: Local

• Fieldwork conducted between: February 2015 – April 2015

Survey Participants’ Demographics

MOBILE SAVVY USERS

Sydney, Melbourne, Brisbane, Adelaide, Perth, Hobart, Darwin, Canberra

KEY TAKEAWAYS

KEY TAKEAWAYS

• Mobile is the preferred medium of communication, entertainment, and information search among Australian smartphone users

• Mobile consumers are highly active on their devices in the shopping and retail environment, with at least 70% using a smartphone to shop while in a store. This presents opportunities to better synthesize digital and physical retail experiences

MOBILE PATH TO PURCHASE

• The path to purchase of consumers mainly starts with a brand or product oriented search and more than half the consumers who search for a product on their device end up buying the product

• In the future, 37% of smartphone users plan to use their mobile devices to purchase FMCG/Retail products

• 60% of Australian smartphone users who shop for FMCG/retail products get information from mobile apps

• Australian consumers find price comparison most helpful in purchase decisions, along with detailed product information

• Mobile ads drive purchase intent among smartphone users

Mobile Path to Purchase: FMCG/Retail Products, Australia

MOBILE MEDIA BEHAVIOUR AMONG AUSTRALIAN CONSUMERS

Mobile is the preferred medium of communication, entertainment, and information search among Australian smartphone users

Q3. Which device/s do you use most often for communication, shopping, finding information and entertainment? n = 876 respondents

Devices Preferred for Communication, Shopping, Information Search, and Entertainment

THE ROLE OF MOBILE IN THE PATH TO PURCHASE OF FMCG/RETAIL PRODUCTS IN

AUSTRALIA

Food and Dairy Products Top Australian FMCG/Retail Spending

Q5. Have you purchased the following FMCG/Retail products, in the past 3 months?n = 876 respondents

Purchases Over the Last 3 Months show that Australian Consumers Spend Heavily on FMCG & Retail Products

37% of Australian Smartphone Users Plan to Use Mobile Devices for FMCG/Retail Purchases in the Future

Devices Expected to be Used for FMCG/Retail Purchases over the Next 12 months

Q8. Thinking about the next 12 months, which device are you most likely to use to purchase FMCG/Retail products online?n= 876 respondents

21% 63% 16%

The Most Downloaded Apps by Australian Smartphone users Have Price Comparisons, Grocery Coupons, or Shopping Lists

As more FMCG & Retail apps and sites become available, Australian consumers use these apps with greater frequency. The top 3 apps downloaded are price comparison apps, grocery coupon apps, and barcode scanners

Types of FMCG/Retail Apps Downloaded

Q11. Which, if any, of the following features of mobile apps on FMCG/Retail products would you consider downloading and using, or have already downloaded? n= 876 respondents

Ads With Deals, Promotions, or Coupons are Most Preferred Among Australian Smartphone Users

Q15. Which of these ads on Retail/FMCG products would be most helpful to see on your mobile device?n = 876 respondents

Most Preferred Mobile Ad Formats for FMCG/Retail Ads

Ads with special deals or promotions (61%) and those featuring new products and services (40%) are the most preferred mobile ad formats

EMERGING TECHNOLOGIES

Australian Smartphone Users Are Split on Purchasing FMCG & Retail Products Via Virtual Grocery Stores

Q17. Thinking about the next 6 months, would you consider purchasing FMCG/Retail products through virtual grocery stores?n = 876 respondents

Likelihood of Purchasing FMCG/Retail Products Through Virtual Grocery Stores

31%

31%

36%

SALE

Yes

No

May be

How Do Marketers Keep Up?

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