We’re reaching the tipping point in mobile commerce

Think people don't convert when they receive email on a mobile phone? Think again, advises columnist Jason Warnock, and he's got the stats to back up his contention.

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Have you noticed what’s going on with mobile? Mobile revenue is at a record high, as more and more consumers use their smartphones to complete purchases.

Although positive sentiment toward mobile commerce has been building for several years, we may finally be approaching the tipping point — the moment when the marketplace accepts mobile as a primary purchasing channel.

Mobile commerce trends in email marketing

Over the past three years, we’ve seen a groundswell of consumer acceptance of mobile commerce. Although the upsurge in mobile cuts across a range of marketing channels, it’s particularly evident in email marketing.

In the last three months of 2015, Yesmail Interactive (my employer) conducted research to quantify the role mobile plays in email marketing. The data showed that more than half of all email opens (51.7 percent) now happen on a mobile device.

But consumers aren’t just opening emails on their smartphones — they’re interacting with email content in ways that generate increased revenue for brands.

Desktop vs. mobile clicks

Mobile has steadily gained ground on desktops when it comes to share of clicks.

While desktops accounted for nearly two-thirds of all clicks in 2013, the number of clicks originating from mobile devices is now roughly the same as those originating from laptops and traditional desktop units.

Q4 2013 Q4 2014 Q4 2015
Desktop Clicks 63.1% 59.4% 50.8%
Mobile Clicks 36.9% 40.6% 49.2%

Desktop vs. mobile CTO rates

There’s also evidence that mobile users rely on their devices to interact with the brands that market to them.

The click-to-open (CTO) rate for desktops has continually declined, falling from 21.6 percent in 2013 to 15.3 percent in 2015. But over the same time period, the mobile CTO rate has risen from 10.3 percent to 13.0 percent, a sign that consumers are more comfortable clicking on the offers they receive via mobile emails.

Q4 2013 Q4 2014 Q4 2015
Desktop CTO 21.6% 20.3% 15.3%
Mobile CTO 10.3% 12.6% 13.0%

Desktop vs. mobile average order volume (AOV)

When it comes to revenue, mobile is quickly closing the gap on laptops and desktops. Mobile currently delivers more than 30 percent of all email-driven orders and more than 25 percent of all email-driven revenue. AOV for mobile grew by 15 percent year over year, compared to 13 percent for desktop.

Q4 2014 Q4 2015
Desktop AOV $116 $132
Mobile AOV $90 $105

Why is the tipping point happening now?

Mobile transactions and revenue are growing in leaps and bounds. But what changed? Why are consumers suddenly more open to using their mobile devices to complete purchases and interact with marketing content?

Although consumers’ relationship with mobile technology is complex, it’s fair to say that the rise of mobile commerce can be attributed to a combination of consumer behaviors and improvements in mobile technology.

Global device shipments

Consumers’ love affair with mobile technology continues to flourish. Earlier this year, Gartner released global research predicting modest growth in all categories of devices over the next couple of years, but the sheer number of mobile phones in the marketplace dramatically overshadows the numbers of PCs and tablets combined.

2015 2016 2017 2018
PCs (desktops + laptops) 290 million 287 million 299 million 312 million
Tablets 196 million 195 million 196 million 198 million
Mobile Phones 1,910 million 1,959 million 1,983 million 2,034 million
Source: Gartner Worldwide Devices Shipments by Device Type, 2015-2018, released Jan 2016

The evolution of the smartphone

The demand for mobile devices and the meteoric rise of mobile purchase behaviors didn’t happen in a vacuum. They were enabled by hardware innovations that have dramatically improved the user experience.

In a recent Marketing Land column, I charted the evolution of the iPhone to showcase the screen and resolution advances that paved the way for today’s mobile user experience.

iPhone iPhone 3G iPhone 4 iPhone 5 iPhone 6 iPhone 6 Plus
Screen Size 3.5” 3.5” 3.5” 4” 4.7” 5.5”
Resolution 480×320 480×320 960×640 1136×640 1334×750 1920×1080

 

In email marketing, all signs seem to confirm the idea that we’re reaching the tipping point for mobile commerce. From opens to clicks to conversions, mobile has closed the gap and is on track to supplant desktops as consumers’ primary purchase channel.

For marketers, the issue now isn’t whether to invest in mobile email, but how much. Although there are no easy answers to the question of resource allocation between mobile and traditional email, brands’ marketing spend needs to start to reflect the fact that mobile has earned a seat at the grownups’ table.


Opinions expressed in this article are those of the guest author and not necessarily MarTech. Staff authors are listed here.


About the author

Jason Warnock
Contributor
Jason Warnock is the vice president of market intelligence and deliverability for Yesmail Interactive. A seasoned digital marketing veteran, he spearheaded the development of the Yesmail Market Intelligence tool that tracks the campaigns of competitors across eight digital channels, including email and social media. Warnock has designed and executed successful technology and business strategies for several Fortune 500 companies.

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