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Ecommerce Quarterly (EQ2 2014) Report shows 120 percent lift in mobile commerce traffic, indicates upward shift in mobile commerce revenue as smartphones overtake tablets in ecommerce traffic share
PHILADELPHIA, Pa. – Monetate, the leading provider of testing and targeting, email optimization and personalization solutions, announced the launch of its latest global Ecommerce Quarterly report (EQ2 2014). The latest EQ uncovers the most dramatic changes in mobile commerce to date, with mobile traffic skyrocketing 120 percent over the past year, overtaking traffic from tablets. By comparison, tablet traffic grew by 35 percent and desktop traffic remained flat.
While mobile traffic has increased, revenue driven by mobile transactions remains low. Monetate’s EQ2 shows that while mobile devices are now responsible for 16 percent of all ecommerce traffic, they continue to drive less than four percent of revenue. Moreover, a mobile customer’s visit to an ecommerce website has a 50 percent higher bounce rate, a 30 percent lower add-to-cart rate, and is 10 percent more likely to abandon cart.
However, there are indicators that revenue from mobile devices is on the rise. Once mobile customers are ‘ready to buy,’ they do it far faster than tablet or desktop customers (page views to purchase – mobile: 21.3; tablet: 35.4; desktop: 34.5). Mobile customers who navigate directly to ecommerce sites were more than twice as likely to complete a purchase than customers arriving from a search engine, and they were nearly three times more likely to convert than those who came through an advertising channel.
“Mobile commerce traffic is increasing dramatically as consumers become more comfortable shopping via mobile. It’s getting easier too, with increased screen sizes and mobile payment systems,” said Lucinda Duncalfe, CEO, Monetate. “But the low conversion rates imply that brands need to create more relevant, personalized mobile experiences to take advantage of the opportunity. Leaders will drive new revenue by delivering the right, personalized, experience for mobile consumers.”
In addition to ecommerce data, the EQ2 offers ‘takeaway’ advice for marketers and insight from thought leaders in the industry, including technology entrepreneur Gary Vaynerchuk and Jay Henderson, Strategy Director, IBM ExperienceOne.
“It’s safe to say that 2014 is the breakout year for mobile – at least from an ecommerce standpoint – but to really capture the tremendous opportunity, companies will need to rethink their mobile strategies, starting with assessing the customer and the customer’s context,” said Jay Henderson, Strategy Director, IBM ExperienceOne, and contributor to Monetate’s EQ2 2014. “It’s a fairly complex process that involves reworking sites, using data to improve navigation and deepen connections, and personalizing the mobile presence.”
The EQ2 also captured data on the social mobile commerce landscape, finding that while social drives just .12 percent conversion with an average bounce rate of 61 percent, social mobile customers have the highest average order value ($106.12) of any mobile customer segment. Still, social mobile commerce lags far behind other channels.
The EQ analyzes a random sample of over 7 billion online shopping experiences using “same store” data across each calendar quarter. Averages throughout the EQ are calculated across the entire sample. Key performance indicators, such as average order value and conversion rate, will vary by industry/market type. These averages are published only to support the analysis in each release of the EQ, and are not intended to be benchmarks for any ecommerce business.
Monetate, the global leader in personalization software for consumer-facing brands, enables marketers to create experiences with improved relevance for every customer, increasing their engagement and boosting business outcomes. Powered by artificial intelligence, the Monetate Intelligent Personalization Engine makes it easy to test and optimize, segment and target, recommend products, and even create true 1-to-1 omnichannel experiences. The company was recognized as an industry leader by two leading analyst firms in June 2018 and August 2018. Founded in 2008, with offices in the U.S. and Europe, Monetate is used by leading brands around the world and influences billions of dollars in revenue every year for QVC, Newegg, Timberland, Carnival, The North Face, and hundreds of other market leaders. Learn more at www.monetate.com.