eMarketer forecasts that proximity mobile payments—including any technologies that allow mobile users to pay for goods and services at the point of purchase with their phones—will increase greatly in the coming years, based on favorable expected consumer adoption trends.

NEW YORK, NY (October 17, 2012)—Proximity mobile payments are not yet very popular in the US—eMarketer estimates that such point-of-sale payments using a mobile phone as a payment device, whether via near-field communications or other contactless technology, will total just $640 million this year. But that’s an increase of 283% over last year’s even smaller base, and a number that will rise a further 234% by the end of next year.

By 2016, proximity mobile payments will have exploded in the US, and total transaction value will hit $62.24 billion.

These estimates are based on the following key assumptions:

• In the near term, light mobile payment users experimenting with low-dollar purchases will dominate the mobile payment audience; a smaller segment of heavy users who habitually buy their daily coffee, for example, with a mobile payment system will increase over the forecast period.
• The significant jump in total and per-user spending over the forecast period will be driven by consumers adopting mobile payments for medium-priced purchases such as groceries, gas and fast-casual dining. eMarketer views this type of habitual consumption as crucial for moving mobile payments into the mainstream.
• The increased activity among these regular users is contingent on a number of factors, including the assumption that more mainstream merchants will accept mobile payments of some kind; the experience of using a mobile payment platform will be sufficiently convenient and add enough value to encourage repeat use; and concerns about security and smartphone battery life will gradually ebb as consumers grow more familiar with the different systems available. Absent these conditions, the market may not develop as predicted in the model.
• By the same token, in the event that hardware and infrastructure impediments are resolved in a shorter timeframe, and clear “winners” emerge in the mobile payments ecosystem—factors that may help drive adoption on both the merchant and consumer side—the proximity payments opportunity could be significantly greater.

Although the US market holds significant promise in terms of the sheer volume of mobile payment transactions, it is likewise characterized by fragmentation. eMarketer believes the number and scope of the different mobile payment solutions currently available or preparing for launch in the next six to 12 months will have contradictory effects on the market. On the one hand, more solutions, and the media attention they bring to the mobile payments segment in general, will raise awareness for consumers and merchants. On the other, the sheer number of choices will present a challenge for both groups, but for merchants in particular, who may incur significant costs in choosing one solution over another, especially in cases where a solution entails new point-of-sale hardware.

eMarketer evaluated data from dozens of research firms and studies to develop its forecasting model for proximity mobile payments.

Many research forecasts look at the global mobile payments opportunity, even though country-specific regulations mean that most solutions function on a local level at this stage. A number of US companies eMarketer spoke with, including digital platforms and financial services firms, said they were looking at markets outside of the US, but acknowledged that their offerings would have to be tailored to the specific consumer and merchant demands of those countries.

eMarketer also incorporated data on device and infrastructure adoption into its model, including information on shipments of NFC-equipped mobile phones and implementations of a more robust contactless payment structure that comprises NFC as well as non-NFC-based solutions.

Defining mobile payments and NFC technology

Mobile commerce vs. mobile payments: eMarketer distinguishes between remote payments for physical or digital goods—purchases from Amazon.com on the mobile browser or via the Amazon mobile app on a smartphone, for instance—and payments for goods at the point of sale—the purchase of a cup of coffee at a local café, for example. This latter type of transaction, often characterized as a proximity or contactless payment, is the eMarketer definition of a mobile payment, which may be made through a range of mechanisms. These include the browser, apps, SMS or hardware-based channels such as near field communications (NFC). As a rule, mobile payments occur in real time in the real world, whereas mobile commerce refers to purchases that occur in the digital world.

NFC: This technology employs radio waves to transmit information between two objects. For example, consumers who have an NFC chip on their smartphone are able to transmit payment information stored on the device to a POS reader across a distance of up to 4 inches. NFC can also be used for applications beyond “tap-and-go” proximity payments, including the transmission of all sorts of marketing content.

About eMarketer

eMarketer is the authority on digital marketing, media and commerce, offering insights essential to navigating the changing, competitive and complex digital environment. By weighing and analyzing information from different sources, eMarketer provides businesspeople, marketers and advertisers with the most complete view of digital marketing available.
www.eMarketer.com

Media Contact:

Clark Fredricksen
Vice President, Communications, eMarketer
Tel. 212-763-6056
Twitter

Transacting is becoming common mobile banking activity

NEW YORK, NY (October 17, 2012)— As smartphone and tablet penetration continues to rise, so too does the use of mobile banking, bill paying, money transfer, remote check deposit and other personal money-management services, according to a new eMarketer report, “Bigger Money on the Small(er) Screen: How Smartphones and Tablets Change the Way Consumers Manage Their Finances.” On-the-go consumers are turning more frequently to their devices to keep tabs on their money and conduct increasingly complex financial transactions—simply because they can.

As both a complement to online money management and a unique channel in its own right, mobile is dramatically changing how people interact with their financial institutions. Banks, brokerages, credit card companies, payment processors and other financial providers that make it easy for their customers to do business via mobile have the potential to cultivate and retain loyal customers, create new revenue streams and gain long-term competitive advantage.

Recent research on the number of people in the US who use mobile banking—the most widely studied mobile financial service—has returned estimates in the range of 15% to 38%, depending on the population being studied and the research methodology. The actual percentage, however, is probably in the 21% to 23% range of US mobile phone users.

Alongside the rapid rise of smartphones—and tablets—mobile banking adoption will grow quickly. In June 2011, Javelin Strategy & Research found that US consumers’ use of mobile banking rose 63% between 2010 and 2011, from 35 million adults to 57 million. The firm further predicted 111 million mobile banking users—51% of total mobile phone users—by 2016.

Mobile banking has been steadily evolving from an informational channel to one in which consumers conduct a variety of transactions.

“First, online banking made a lot more information and data available to the end user,” said Michele Janes, senior business leader for global mobile products at Visa. “Then, on-the-go consumers became accustomed to receiving transaction alerts, accessing balance information, looking up receipts and doing other simple tasks from their phones. But now we’re seeing consumers take that behavior a step further and starting to transact.”

Results from the January 2012 Federal Reserve study support this evolution. While the most popular mobile banking activities were still checking up on account balances and recent transactions, it found significant use of the mobile channel for transactional activities, such as paying bills, transferring funds and depositing checks.

As banks and investment institutions offer more robust mobile banking technology and tools—including person-to-person transfer, mobile remote deposit capture and on-the-go trading capabilities—consumers have shown that they are ready and willing to quickly adopt these new offerings. Many of these consumers, especially those in the younger demographic, in fact, demand it.

The full report, “Bigger Money on the Small(er) Screen: How Smartphones and Tablets Change the Way Consumers Manage Their Finances,” also answers these key questions:

• What finance-related activities are most popular on smartphones and tablets?
• How are smartphones and tablets changing the way consumers manage their finances?
• What’s next in the mobile space for banks, brokerages and other financial providers?

About eMarketer

eMarketer is the authority on digital marketing, media and commerce, offering insights essential to navigating the changing, competitive and complex digital environment. By weighing and analyzing information from different sources, eMarketer provides businesspeople, marketers and advertisers with the most complete view of digital marketing available.

www.eMarketer.com

Media Contact:

Clark Fredricksen
Vice President, Communications, eMarketer
Tel. 212-763-6056
Twitter

Moms more likely to own smartphones, tablets compared to general consumers

According to a new eMarketer report, “The Mobile-Social Mom: Speeding the Trend Toward ‘Mobile First’,” if you want to know who is moving over to mobile social media, look no further than mom. eMarketer estimates that as many as half of all moms with children under 18 in the household will use mobile devices to access social networks in 2012.

Moms are on the leading edge of a behavioral shift that has marketers and social networks scrambling. They may soon become the first demographic group who will use the mobile phone or tablet more often than the computer to access social networks.

The change is happening due to a number of factors. Moms are highly likely to own one of these mobile devices. February data from Arbitron and Edison Research found that 61% of total US moms surveyed owned a smartphone in 2012, ahead of the 44% of total consumers who owned one. The percentage of moms who own a smartphone has grown enormously over the past couple of years. As recently as 2009, just 8% of moms had one, according to Arbitron.

Tablet ownership also trends higher for moms compared to the population as a whole. Arbitron and Edison found in their February 2012 study that just over one in five US moms had one, compared to one in six total consumers.

And these mobile devices allow moms to log in more frequently: Arbitron and Edison found that 46% of US social networking moms surveyed visited social networks multiple times per day in 2012, up from 37% in 2011 and 32% in 2010. Mom may not have time for long visits to social networking sites but mobile allows her to snack throughout the day, whenever she has a spare moment.

As moms start to put mobile first for social media, they are changing the rules of the marketing game. The report addresses the key challenges marketers face in keeping up, answering important questions such as:

• Who is the Mobile-Social Mom?
• Why do moms turn to mobile devices for social interactions?
• How can marketers reach these women?

“It is not enough for companies to simply add mobile to the mix,” said eMarketer. “They must consider moms’ social media usage holistically and plan their marketing accordingly—not only taking account of when and where they use social media, but also how and why.”

Digital Grabs Greater Share After Global Ad Spending Passes Half-Trillion Mark

NEW YORK, NY (October 10, 2012)—eMarketer, in collaboration with Starcom MediaVest Group (SMG), today released its annual Global Media Intelligence report on media trends in major markets worldwide, for brands to use as they plan advertising budgets and strategy for 2013.

According to the report, China is set to become the world’s second-largest advertising market in 2013, and the second-largest digital advertising market the following year, behind the US. As a result, Asia-Pacific is expected to surpass North America in total ad spending in 2014, thanks to extraordinary growth rates in internet and mobile internet usage, as well as rapid growth in digital advertising spending.

Some other key findings include:

• Globally, spending on advertising will rise from $538.75 billion in 2012 to $676.17 billion in 2016, as the advertising industry has proved quietly resilient despite ongoing economic hurdles worldwide.
• Much of the growth is coming from Asia-Pacific, where, eMarketer estimates, more than 1 billion people will use the web at least once per month in 2012—nearly 47% of the global total. By 2016, this audience will number almost 1.4 billion. Asia-Pacific will be home to some 2.15 billion mobile phone users this year. In China alone, the mobile consumer base will top 1 billion in 2014.
• Asia-Pacific is currently the global leader in mobile advertising, with projected mobile ad spending of $2.56 billion this year. But North America is fast becoming the world’s leading hotspot, expanding twice as fast as Asia-Pacific. During the next four years, global spending on mobile ads will leap from $6.6 billion to $25.3 billion.
• The UK has long been a cutting-edge market for online advertising and marketing. ZenithOptimedia indicated that spending on internet ads surpassed TV ad spending in 2011, to become the leading category; this gap will widen despite a modest revival in TV spending between 2012 and 2016. eMarketer estimates that digital ad spending will represent 35.7% of the entire UK ad market in 2012 and continue to gain share throughout the forecast period. By 2016, digital platforms are expected to account for a hefty 44% of all ad spending.
• Economically, Latin America has shone brightly. But media spending in the region is small compared to more mature regions, though growing fast. Ad spending in Latin America topped $30 billion in 2011, eMarketer estimates, and will reach nearly $35 billion in 2012, a rise of 12%.
• Eastern Europe has suffered from the financial turmoil afflicting many of its neighbors to the west. The resulting slowdown has come at a bad time for the advertising sector—and for digital advertising in particular, which arguably hasn’t yet achieved critical mass in several countries.
• eMarketer estimates that media ad spending in the Middle East & Africa will reach $17.8 billion in 2012—less than one-tenth of the North American total—and approach $23 billion in 2016. Ad spending per person in the region will remain among the very lowest in the world.
• But social networking is growing faster in the MEA than anywhere else—thanks partly to the central role played by social sites during the Arab Spring. Some 70.2% of the region’s internet users will use social media this year, according to eMarketer projections. But that group will represent just 11% of the MEA’s entire population.

According to eMarketer president Lisa Church, the latest edition of the report “is the most comprehensive Global Media Intelligence report eMarketer has ever produced.”

The “2012 Global Media Intelligence” (GMI) report has more than 270 pages, with nearly 700 charts covering media trends in six major regions worldwide—Asia-Pacific, Eastern Europe, Latin America, the Middle East and Africa, North America, and Western Europe—and provides snapshots of 40 countries identified as core markets. The latest edition contains dedicated coverage for seven more markets than the 2011 edition, as well as forecasts on media usage and advertising spending for 17 additional markets.

“It is wonderful to continue our collaboration with eMarketer to provide deeper insights on more markets to our clients, and help them allocate their media dollars more effectively globally, across all channels,” said Kate Sirkin, executive vice president of research at Starcom MediaVest Group.

SMG helped identify and gather data for local and core global markets included in the report.

The Global Media Intelligence report is typically eMarketer’s most popular report annually. After seeing record interest among marketers for both the 2010 and 2011 Global Media Intelligence reports, eMarketer expects the new report will be its most popular report ever, as many eMarketer and SMG clients are currently in the process of finalizing media strategies for 2013.

“Demand for information about media trends in emerging global markets is at an all-time high,” said Church. “It’s gratifying that eMarketer and SMG have been able to work together again to meet the growing needs of our clients.”

eMarketer has expanded its global coverage significantly in the past year—doubling both the number of forecasts it produces annually and the size of its research team. The company opened a subsidiary in the UK earlier this year.

About eMarketer

eMarketer is the authority on digital marketing, media and commerce, offering insights essential to navigating the changing, competitive and complex digital environment. By weighing and analyzing information from different sources, eMarketer provides businesspeople, marketers and advertisers with the most complete view of digital marketing available.

www.eMarketer.com

Media Contact:

Clark Fredricksen

Vice President, Communications, eMarketer

Tel. 212-763-6056

Twitter

B2C ecommerce sales set to rise 14% in 2012

New York, NY (October 19, 2012) – “Online” has come to define the way most consumers in Canada socialize, communicate, bank and research. But when it comes to ecommerce, the online channel hasn’t developed commensurate with the internet appetite in the country, according to a new eMarketer report, “Canada Ecommerce: Vendors Compete and Innovate to Deliver Better Ecommerce Experiences.”

Not surprisingly, it has less to do with appetite than what’s being served. Compared to similarly connected nations, product assortment, payment paths and the number of online operators still trail in Canada’s ecommerce marketplace.

While many retail stalwarts in the country have dabbled in ecommerce, sustained success has been absent. But as large Canada-based retailers have begun to compete with US-based Canadian operators such as Amazon, online offerings have begun to expand, and creative solutions to supply chain difficulties have been implemented.

eMarketer estimates that 13.3 million consumers in Canada ages 14 and up made at least one online purchase in 2011. Modest, single-digit growth in the number of online buyers annually is expected to continue throughout the forecast period. Those buyers will spend a total of $21.45 billion on online purchases this year. Spending will rise by double-digit percentages each year through the end of the forecast period, when outlays will near $35 billion.

The oft-cited lag in ecommerce adoption in Canada is certainly true from a penetration perspective—as the online buyer numbers show—but once engaged, the level of participation is predictably strong from a highly connected public. In terms of the average spending per buyer, Canada will rank behind only the US, UK, Australia and Japan in 2012, outpacing average spend per buyer from G20 peers like Italy, France and Germany.

But what is the reason behind Canada’s lag in ecommerce adoption? This concern and other key questions are answered in the report, including:

• How does Canada compare to other mature countries in ecommerce adoption?
• What barriers are unique to ecommerce adoption in Canada?
• What strategies are being used to increase adoption?
• What companies in Canada are leading the way?

PHD Go

October 23rd, 2012

eMarketer analyst Noah Elkin will be moderating a panel for PHD’s Mobility Conference, PHD Go.

About PHD Go

What is it?

The week will be comprised of 10 (1-hour) sessions; one session each morning and one session each afternoon (Monday-Friday).  These sessions will be panels moderated by the PHD thought-leaders with 10 minutes dedicated to teeing up the topic, followed by a round table discussion with a handful of industry thought-leaders to answers questions and elaborate on the topics.

In between the morning and afternoon panels there will be a Mobility Experience Lab that will offer an opportunity for the agency and it’s clients to get a hands-on opportunity to engage with new mobile products, media experiences, and understand the relationship between mobile and other media channels (i.e. Mobile + OOH, Mobile + Print, etc.)

Why Does it Matter?

Our main goal is not only to educate our teams about the importance of mobile, but more so to involve everyone in the dialogue of mobility because it truly does affect us all.  No matter what focus area or department – TV, Print, Out-of-Home, Social, Online, Search – mobility is changing the way people engage with these channels.  And during this week we’ll address many of these areas with discussions led by department or practice heads, emphasizing our collective and unified approach to strategically achieve our clients’ marketing goals.

October 21st – 23rd, 2012

eMarketer chairman Geoff Ramsey will be moderating a CMO Roundtable on October 22nd, 2012.

About Rutberg Wireless Influencers

Wireless Influencers 2012 is the world’s premier multidisciplinary forum for senior executives to examine what’s next for wireless and digital media. Strictly limited to 500 participants, the closed-door, invitation-only, destination meeting is recognized for its exclusivity; retreat-style atmosphere; diverse, global, C-level attendee base; provocative, forward-looking content and boardroom-style discussion format; and the quality of its networking.

About eMarketer Chairman Geoff Ramsey

Geoff Ramsey is one of the most exciting visionaries in digital marketing today. As the chairman of eMarketer, Geoff is not only on the cutting edge of research trends and best practices, but he offers a rich understanding and big-picture perspective of the digital landscape and its impact on marketing and media.

A highly regarded speaker, Geoff keynotes at major industry events around the globe, as well as at Fortune 100 corporations including Google, Yahoo! and Visa. He is frequently quoted in The Wall Street Journal, Forbes, BusinessWeek and Advertising Age.

In 2011, Geoff received the ad:tech Industry Achievement Award, which honors individuals in the digital marketing space who have demonstrated consistent outstanding service, generated breakthrough ideas and fostered industry growth. His book, Digital Impact: The Two Secrets to Online Marketing Success (Wiley, 2011), co-authored with Vipin Mayar, has earned critical praise from industry leaders.

It’s been an exciting year at eMarketer so far. As we enter the fourth quarter, I wanted to share some of the improvements we’ve made to our coverage and platform over the past twelve months, and preview a few exciting things we’re working on for next year.

Expanding Coverage

In the past year, eMarketer has added an incredible amount of new coverage on key global markets, industries and platforms. Some notable facts:

• eMarketer now covers more regions and global markets than ever before. We now offer data and insights on nearly every major market in the world, as well as expanded coverage of Asia-Pacific, Brazil, China, France, Germany, Italy, Japan, Mexico, the United Kingdom, Western Europe and other key regions.
• Similarly, our coverage of major vertical markets and platforms has grown rapidly. We continue to increase our coverage of industries such as automotive, consumer electronics, consumer packaged goods, financial services, healthcare and pharmaceuticals, media and entertainment, restaurants, retail and travel. eMarketer also continues to scale its coverage of mobile, social media, search, display, video, DSPs and other platforms, as their importance grows in the marketplace.
• In order to meet your demands for knowledge across these industries and markets, eMarketer’s content team has grown rapidly. Our research group has doubled in size in the last year, while eMarketer has also hired interviewers, writers, analysts, editors, chart specialists and other key members, all dedicated to delivering quality information to clients using our team approach.
• Similarly, eMarketer opened a London subsidiary in the summer of 2012 to act as a base for our United Kingdom and European operations. We are adding more dedicated coverage of the UK than ever before, and next year, eMarketer expects to quadruple its output of reports on trends in the region, in addition to new forecasts, articles, interviews and case studies on UK-focused topics.
• Our forecasting team has more than doubled its output in the past year, adding forecasts on topics such as total, digital and mobile advertising spending, as well as ecommerce, online travel, mobile phone usage, smartphone usage and social network usage for major markets worldwide.
• eMarketer has also increased the number of published interviews with industry leaders by more than 30% this year, and is on track to publish more interviews with CMOs and decision-makers than ever before.

And that’s not all. Our recently released Global Media Intelligence report is the most comprehensive compilation of data on ad spending, media usage, mobile behavior and other trends that we’ve ever created.

But coverage is only part of the story. It’s equally important that this information is easy to access and use. That’s why we have an entire product team focused on one simple idea: Convenience.

Platform Improvements

eMarketer has a proven track record of continually improving its delivery, making it easy for you to get the information you need—whether you’re at your desk, rushing to a meeting or on a flight.

Years ago we made our database of reports, charts, articles and other information easy to search and browse. Then we made our information easier to share, download and present. We allowed you to star your Favorites and save them for later in folders, or share them with colleagues. Then we created custom Alerts so you get notifications whenever we publish information on the topics you care most about. Two years ago, eMarketer launched its mobile application—allowing you to keep up with the digital landscape anytime, anywhere.

Earlier this year, eMarketer launched the latest version of its client website—and it was the fastest, most customized, relevant user experience we’ve ever provided. It allowed you to tailor eMarketer to your needs, as can the person sitting next to you and the person across the hall.

As eMarketer expands its coverage of verticals, we’ve also made it even easier for marketers in several industries to find information relevant to their business needs. For example, when you view the topic page for a specific industry on eMarketer, you can now browse by any of four key marketing objectives with our Marketing Insights feature:

• Build brand awareness
• Acquire new customers
• Cultivate loyal customers
• Measure marketing effectiveness

We have an exciting group of other product enhancements expected to roll out soon, including:

• A new Digital World Atlas—providing you with better access to data on the countries you do business in
• A beautiful, new iPad application for eMarketer reports
• Further enhancements to personalized information delivery
• Improved data visualization and comparative estimates

And that’s only next year. eMarketer will improve its coverage and platform as digital media, marketing and commerce grows more vital to our clients—you. The point is, we pay close attention to your needs, we appreciate your business, and we feel honored to serve the best minds in digital marketing and media worldwide.

Best Regards,

Lisa Church, President