Shift in online spending
The value of digital goods and services consumed has shifted, according to new research with a decline in low spend items by 6% and high spend items (+$150 or equivalent) jumping to 39%.
This is according to the findings of MEF, in its third annual 13-Country Global Consumer Survey 2013.
The report reveals the behaviour and attitudes of mobile media users from across the globe in developed and growth markets, giving unprecedented data and intelligence in to consumer engagement via mobile in 13-countries, including South Africa.
Carried out in partnership with On Device Research, the expanded annual study included Kenya, Nigeria and UAE for the first time with the total sample extending 10,000 consumers.
The study found that while the number of actual purchases may be falling in volume, the value of individual purchases is going up. High spend purchases jumped with low spend items (under $15.99) down from 43% in 2012.
‘High spenders’ are most prolific in Nigeria, Mexico and Kenya reflecting the mobile-first ecosystems in these regions, the report said.
It also found that 65% of all mobile media users have purchased goods or services from their mobile device, however trust is an even greater barrier to mobile content and commerce adoption than ever cited by 40% of 2013 respondents.
The research noted a fall in purchase volumes of digital content for the first time from 54% of mobile media users in 2012 to 42% in 2013.
Globally, there is a growing trend towards purchasing physical and perishable goods with 25% of users globally happy to shop on mobile for these items.
The study analyses both developed and growth markets namely Brazil, China, India, Indonesia, Kenya, Kingdom of Saudi Arabia, Mexico, Qatar, South Africa, UAE, UK and US.
MEF said that a discernible shift in the purchasing of digital goods is characterised by a new breed of super apps that are displacing one off purchases – for music or video for example – with longer term subscription based services or apps and games offering months of immersive gameplay, typifying in-app purchase business models and long term player engagement.
“This is not limited to developed markets; the report found a significant number of consumers in growth market regions are moving past the premium content phase and into a space defined by smartphones and apps,” MEF said.
Andrew Bud, MEF Global chair said: “MEF’s 2013 annual study vividly illuminates the worldwide emergence of Mobile 3.0, the next phase in the evolution of mobile content and commerce.
“In Mobile 3.0, mobile has become the primary tool for engagement and transaction in consumers’ digital lives, creating exciting new opportunities and challenges. As an industry, we must continue to work to reduce the barriers to this growth, and especially to ensure trust and confidence in the ecosystem and its business models.”
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