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2012 Mobile Commerce Explosion – Part 1

03/05/2012

All My Favorite Brands Have M-commerce

Holiday 2011 saw a significant uptick in mobile commerce (M-commerce) activity, with consumers increasingly using smart devices to both research products and complete transactions. It now appears 2011 was a only a dress rehearsal for the seismic shift about to occur in 2012.

We at Thought-Tech believe M-commerce could be the biggest thing to consumerism since the dot com boom of 2000. Why do we believe so? The 2012 M-commerce explosion is the direct result of the convergence of four distinct trends happening right now. When combined these trends point directly at a significant increase in M-commerce.

Here’s what we see:

Online Spending Growing Big Time – Online shoppers in the United States will spend $327 billion in 2016, up 45 percent from $226 billion this year and 62 percent from $202 billion in 2011, according to a projection released last week by Forrester Research Inc. In 2016, e-retail will account for 9 percent of total retail sales, up from 7 percent in both 2012 and 2011, according to the report, “U.S. Online Retail Forecast, 2011 to 2016“, by Forrester analyst Sucharita Mulpuru. That represents a compound annual growth rate of 10.1 percent over the five-year forecast period.

Smartphone Tipping Point – As of February more Americans owned smartphones rather than basic mobile phones. Nearly half, or 46 percent, of Americans aged 18 and older owned a smartphone as of February while 41 percent owned a basic mobile phone and 12 percent did not own a mobile device, according to a survey released March 1st by The Pew Research Center’s Internet & American Life Project.

THE Place To Be – 2012 will see 159 million mobile Internet users in the USA. That’s nearly 51 percent of the US population according to US Census department figures as of July 2011.

Mobile Advertising Projections Trending Way Up – eMarketer has upwardly revised its mobile ad revenue projections for 2012. The revision comes as a results of Apple’s blowout holiday quarter where the company sold 37 million iPhones and 15 million iPads Previously eMarketer thought mobile ads would bring in just under $2 billion. The new projection says that US mobile ad revenue will reach $2.6 billion in 2012. That’s a nearly $1 billion jump! Search will form nearly half of the mobile ad spending.

This is a pile of evidence suggesting that retailers, service providers…well, any business trying to sell something, will want to have a plan for M-commerce or at least some compelling reasons not to participate. I can’t think of any. Can you?

Part 2 tomorrow is about what you should do and how you should do it – to take advantage of M-commerce…that is.

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