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Will Mobile be King in 2013? Analyzing the Present and Predicting the Future!

Mobile Marketing January 3rd, 2013

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mobilegraph

In 2012 we saw the tremendous growth of smartphones. In this post I will be analyzing the current market share and will be predicting the future of mobile in 2013 based on present statistics.

Let’s Analyze current mobile market share:

From the chart it’s clear that the market is presently dominated by Android. Apple comes in second with surprisingly a much lower percentage. The last three Blackberry, Windows Phone 7 and ‘other’ phones make up the remaining percentage.

Let’s now analyze how people use their mobile phones:

The data shows that mobile phones are used mainly for playing games, checking weather conditions and Maps/search and social networking (the area most relevant to marketers). The percentage of mobile phones as a marketing platform is increasing each year.

Let’s analyze the percentage of people who have purchased using a smartphone (US & Canada only):

Data Source: Google http://www.thinkwithgoogle.com

The statistics show purchases made in year 2012 for four countries. The data showcases the percentage of private smartphone users who use their device to access the internet and those who actually purchased something on their smartphone.

It was predicted in early 2012 that mobile will constitute more than 40%, of revenue, but the statistics at end of the year show the opposite. If mobile eventually generates more than 30% of revenue, then more attention can be given to the area.

What about search through Smartphones? Did people really search using their Smartphones as predicted? Let’s analyze the graph.

Data Source: Google http://www.thinkwithgoogle.com

This is very interesting; more than 60% of smartphone users use their phone for online search. This means the overall search from mobile is increasing and with the addition of voice-based applications like Apple’s Siri and a similar applications in Android, the percentage of people who search using mobile will surely increase.

The image below shows the total visits on an eCommerce site and the area highlighted in red is the total visits from Mobile. In 2012 the site got 17.56% of visits from mobile devices.

Here is the list of top 10 mobile devices which includes tablets.

Since the site is not optimized for mobile devices, the conversion rate over the year 2012 is very low, see the image below:

Ecommerce Conversion Rate


Facebook recently announced that in the third quarter of 2012, the company earned $150 million from mobile ads, 14% of its total revenue.

Pandora reported that in the second quarter 58% of its revenue, or $59 million, came from mobile ads. Twitter executives have said that on certain days, the social network earns a majority of its daily revenue from mobile ads.

Growth of mobile in 2012 for all business sectors was encouraging, those who have mobile versions of their website had the advantage and likely saw increased revenue as a result.

Prediction for 2013


Credit: (searchenginewatch.com)

Search percentage via Mobile increases and Mobile Optimization takes Centre Stage

Gartner predicts sales of smart devices (which include Smartphones & Tablets) will rise by $1.2 billion in 2013, after analyzing the present statistics I predict 1 in 3 paid clicks will come from a tablet or Smartphone and consumers will increasingly make purchasing decisions solely on their mobile devices.

2013 is the year where business should be allocating their resources to focus more on mobile sites. Recently I read a post by Avinash Kaushik which explains some of the best ways which should be kept in mind while optimizing a site for mobile.

Below is a example with images, he explains that he was searching for an online air ticket booking, and he gone through 3 websites, see below what he experienced:

(Credit: http://www.kaushik.net)

Above we see 3 websites which he analyzed; it’s very clear the only site which seems to be optimized for mobile is the third one. If we analyze the other two websites it’s clear that people visiting these two sites will have a much harder time booking tickets and some will likely become frustrated and abandon the process.

This is a great example that shows how important it is to make a user-friendly mobile site.

The Increase of mobile investment

With the increase of search through mobile, both publishers and advertisers will concentrate more on mobile devices. The percentage of social media mobile advertising will likely increase as well. As mentioned earlier, Facebook is getting 14% of its total revenue from mobile ads and more than half of its users access Facebook on their mobile device. This percentage is only likely to increase in 2013.

Increase in Online Mobile site building platforms

2012 we saw many startups which help average users create mobile sites quickly and easily. Many of them are paid and few are free of cost. As the mobile market is rapidly increasing many companies have created mobile site building platforms for users, one of the best in the industry is TechWyse’s InstantMobile which comes with a lot of added features including lead tracking solution with customer support.

Conclusion

I am not a prophet, just someone who likes to look at past and present statistics in an effort to predict the future. As we know, the rate of mobile and internet penetration has increased year over year and the market will only continue to grow in the future. As marketing professionals we must focus on the customer experience. When a customers is satisfied, the lead is nurtured and when leads converts business grows!

Post By Christy (32 Posts)

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I have over 4 years of Internet Marketing experience. I prefer to focus on Analytics, CRO, SMM, Local SEO and Link Earning. Search has become more localized and personalized over time and this is exciting to me. Companies who are able to capitalize on these changes will eventually emerge on top.

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