A recent Morgan Stanley study found that 91 percent of United States citizens have a mobile device nearby just about every minute of the day and night. This means that consumers are able to conduct business, shop, and search for deals quickly and effectively, according to Jim Yu, the founder and CEO of BrightEdge. Yu recommends that businesses utilize the growing mobile economy this holiday season to drive business, increase profits, and broaden their consumer bases.
The International Telecom Union announced that there will be more mobile phones in 2014 on the planet than people. The mobile tech boom is changing how marketers operate and, also, raising consumer expectations. Today’s consumer not only seeks, but also demands, that retailers offer personalized and convenient shopping experiences.
Firms that have noticed the shift and incorporated mobile technology into their business and marketing plans have seen increased consumer traffic. In fact, according to Yu, as smartphone use catches up—and he believes, will surpass—desktop use, marketers who have included this technology into their strategies will likely see significantly improved business results.
For example, a key indicator of the path the market is taking is Cyber Monday, the largest annual, online shopping event. Last year’s, according to projections issued by ComScore, generated $1.46 billion. Of that, more than half—$750 million—was attributed to mobile sales. Yu suggests marketers move now to invest in mobile and secure customers before the holidays hit.
“We believe more users may connect to the Internet via mobile devices than desktop PCs within five years,” said Mary Meeker, leader of Morgan Stanley’s global tech research team. “We use a data-rich, theme-based framework for thinking about how the rapidly emerging and changing mobile Internet may evolve,” Meeker added.
The Morgan Stanley “The Mobile Internet Report,” found that the mobile Internet cycle is the fifth such cycle in the past five decades and that this cycle is in its infancy. Traditionally, successful businesses in each cycle tent to create increased market capitalization over the prior cycle. Morgan Stanley analysts found that the mobile Internet is gaining speed at a rate that is outpacing the desktop Internet and believes that, in the next five years, more users will connect to the Internet via mobile, not desktop, devices. In fact, dramatic growth in the mobile Internet is expected via 3G, social networking, video, VoIP, and what Morgan Stanley describes as “impressive” mobile devices.
Apple and Facebook are expected to make enormous strides in how they manage user and developer engagement and in the ways in which their users connect and communicate, Morgan Stanley indicated in its report. According to Yu, “The key to ongoing mobile success is to listen to your customers and constantly optimize to match their needs.”
Yu, Jim. “Why Mobile Is Your Money Maker This Holiday Season“, The Huffington Post. November 8, 2013.