Who buys looks at the display before

The smartphone is always with us - even when shopping. But what role does the mobile device play in the buying process and how is it used? To answer these and other questions, xAd, provider of location-based mobile advertising in real time, surveyed a total of 1'300 smartphone users aged 18 and over in Germany in March 2016.

Result: The smartphone is used in a situation- and location-specific manner and mobile advertising plays an important role in initiating purchases - if certain aspects are taken into account.

"Our first mobile study for Germany proves that smartphones play an important role in the customer journey of consumers - be it in information gathering and decision making, as well as in the actual purchase," says Johannes Paysen, Country Manager Germany at xAd. "In addition, it shows that local retail also benefits significantly from mobile ads and can significantly increase customer flows and sales. The decisive factor is that ads are relevant to consumers and provide them with added information value. Those who take this into account and additionally display their offers based on location and situation will quickly notice the positive effects."

In the beginning was the smartphone: use in the purchasing process

The smartphone plays a particularly important role at the start of the customer journey. Forty-nine percent of respondents use their smartphones at the beginning of the purchase process - this is also the best moment for companies to influence the decision-making process. But 55 percent also use their smartphones in the "consideration" phase to include brands and stores in their closer selection. If a purchase is made, 27 percent do so on the move. Once the mobile search has started, two-thirds of respondents actually complete the purchase. Consumers hardly seem to be able to wait for the product they are interested in to be purchased, as 73 percent would like to complete the purchase on the same day as the search. Only three percent want to wait longer than a month. Afterwards, seven percent share their experiences with the purchase and/or product on social networks via smartphone.

Smartphone users regularly call up mobile ads

Mobile ads meet with a high level of approval among respondents. At 56 percent, more than half say they have clicked on mobile ads within the last 30 days. They generally feel most attracted to ads that match their interests and are therefore relevant, or that contain coupons or other offers. In each case, 20 and 18 percent respectively state that they would be most likely to click on such an ad. However, there are differences between the advertising sectors. Within the last 30 days, 35 percent of respondents have called up a mobile ad from the fashion & apparel, travel, video and computer games sectors, while the food industry and beauty & wellness are at the bottom of the scale with 19 and 22 percent respectively.

Relevance, brands and news count - testimonials do not

When an ad is called up, brands and news are the decisive point for 29 percent each. Interestingly, just as many say that they have only clicked on an ad by mistake in the course of their search for information. Respondents are also open to new incentives: a quarter look at relevant advertising that has nothing to do with their original search. Famous faces, on the other hand, play only a minor role. Celebrities as advertising personalities encourage only twelve percent to look at an ad. Respondents react allergically to a lack of relevance and uninteresting products. At 51 and 44 percent, they are the most frequently given reasons for not paying attention to a mobile ad.

In addition, interesting ads lead to further interactions. Once an ad has been called up by the user, 34 percent of them look at the store's website and 23 percent search for further information on the advertised product. 17 percent find their way to the local store.

He who looks, buys - also locally on site

If an ad has been viewed, 19 percent also buy the product, while 20 percent redeem a coupon or special offer. Another 21 percent at least consider making the purchase. The purchase itself takes place in the store for 24 percent, 34 percent remain loyal to their smartphone here as well, and 39 percent switch to their PC for the transaction.
Furthermore, 52 percent of those surveyed said that they would always visit a local store after searching for a particular product category. However, retailers have to live with the fact that price comparisons are popular and 36 percent look locally to see if they can find a cheaper offer. On the other hand, they can be pleased about the range of movement of their potential customers. Only nine percent expect the store to be within walking distance and 29 percent are prepared to drive more than five kilometers. For 31 percent, distance plays no role at all in finding the right offer.

Other interesting results:

Location-specific user behavior

Information gathering is primarily done at home: At 56 percent, the majority of study participants are at home when they search for information about a business or product of interest to them via smartphone

Share of information procurement from the road: Only one in five, on the other hand, is on the move when doing so, 18 percent are already in the store and one in ten is using the time at school or work to consider their purchase intentions

Information sought at home: At home, 49 percent search for the address of the store that interests them, 21 percent look for details about products or services

Searched information on the go: Outdoors, most seem to already know where they want to go: Only 23 percent look for the business address, a third (36 percent) find out about product details and services

The most popular and the least used search queries

The information most frequently searched for by consumers on mobile is:

Price comparison and information (64 percent)
Websites of online retailers for product and brand comparison (50 percent)
Product tests to support decision-making (47 percent)
The least used measures are:
Calling the store for additional information (15 percent)
Arrange reservations and meetings (17 percent)
Asking friends for advice via social media (19 percent)

Satisfaction: Overall, 57 percent are satisfied with mobile search results and only seven percent are dissatisfied