Bangkok--22 Jul--Grayling
Online shopping on the rise; consumers expect more from retailers to purchase in store
Thailand is the 9th biggest mobile advertising market in the world according to the latest quarterly report on the mobile internet by BuzzCity.
This ranking is based on the more than two billion banner ads delivered to 12.4 million Thais in the second quarter of 2014, representing a 30% (year-on-year) growth rate in mobile advertising volume. Year-on-year growth for the first quarter was 42%.
“The data confirms Thailand as one of the fastest developing digital economies in the world. And as smartphone penetration grows from its current 60 percent level, we expect more advertisers to keep increasing their digital presence through banner ads, apps, mobile sites, and more, to connect with customers,” said Wararin Phoonuch-Aphai, BuzzCity’s Country Manager for Thailand.
The dramatic growth in mobile advertising is supported by changing trends in online shopping globally and in Thailand.
Mobile is the driving force in online shopping
An in-depth report from BuzzCity, commissioned by the Mobile Marketing Association (MMA) reveals that more people than ever before are shopping online and on their mobile devices. Nearly half of mobile users (48%) made purchases online regularly. In addition nearly 1 in 5 browse products online before buying in stores. Taken together, more than 70% of mobile consumers shop online.
Mobile as a shopping channel is now on a par with PCs and a key to driving the change in consumer shopping behaviour.
In some countries, mobile has become the most dominant shopping channel. This is highly apparent in the Asia Pacific region where mobile leads the way for shopping, as more of the population turn to mobile as their primary device. A third (32%) shop with their mobiles compared to a fifth (21%) with PC’s in the region. Further growth in mobile is expected as nearly one in three (30%) of those surveyed said that they would consider using their mobiles for shopping.
Rohit Dadwal, Managing Director (APAC) at MMA comments “Mobile as a channel has evolved very quickly but the challenge for marketers is to create a seamless shopping experience across all the channels to ensure that consumers are getting a consistent brand message and identity.”
The explosive rise of mobile as a shopping channel appears to have caught many retailers off guard. The survey records that more people are leaving stores without making a purchase for a variety of reasons. At least 22% left stores for a better deal online compared to 13% last year and 27% could not find what they wanted in stores compared to 14% in 2013. Overall, fewer customers are engaging with shop assistants and consequently not making it to the tills, which should signal strong alarm bells for retailers.
Dr KF Lai, CEO and founder of BuzzCity comments “We know that consumers are driven by mobile in the first instance, but mobile first shouldn't mean mobile only for retailers”.
Lai continues “Consumers are changing the way they choose their purchases - it has become more complex and will continue to evolve. The survey highlights mobile’s potential to undermine traditional brand power and the imperative for marketers to maintain the relevance of their message across all digital media.”
Thais Embrace Online Shopping and Browsing
59% of the Thai consumers surveyed said they shopped online, with one in four, using their mobile phone to purchase goods and services.
In addition, Thai shoppers are using their mobile devices to make better informed purchasing decisions - 24% of those surveyed said they use their mobile phones in-store to get product advice from friends or family, and 29% said they clicked online to read product reviews.
Clothes and accessories (38%) are the most popular products bought online, followed by groceries (25%), electronics/computers (18%), and books and music (15%).
In terms of the most popular phones used in Thailand, Nokia is number one (37%), Samsung is number two (36%) and Apple is third (4%). By June 2013, 60% of mobile surfers used smartphones to access the Internet.
The survey was conducted in April and May 2014 amongst 3590 respondents from 26 countries including 11 Asia Pacific markets. Results are published in the The BuzzCity Report Volume 4 Issue 3