In a previous post from our Mobile Web Advantage series, we explored the various ways that mobile web builds on existing habits. In this post, we will drill down into mobile commerce, which refers to the buying and selling of products and services through a mobile device. Mobile commerce is experiencing such explosive growth that many retailers are rushing to create mobile websites to capitalize on this trend and satisfy their mobile-savvy customers.
Smartphones are rapidly becoming ubiquitous within the mobile population. There are approximately 429.7 million global smartphone subscribers; this number is expected to increase to 1.2 billion by 2015. Furthermore, the global m-commerce market is expected to reach $119 billion by 2015. As this ecosystem expands, customers will begin to expect more and more options for satisfying their shopping needs while on-the-go. Both e-commerce and more traditional brick-and-mortar companies will need to keep up with their consumers by ensuring that their website is usable from a mobile device.
Major brands are beginning to see tremendous growth in the percentage of their business transacted over mobile. For example, in 2010, eBay sold $2 billion worth of merchandize via its mobile channels, tripling its 2009 results. This number is expected to double to $4 billion in 2011. As recently as last month, eBay stated that it expects to process $3 billion in mobile payments via PayPal in 2011, up from $700 million in 2010.
Mobile ticketing, a subset of mobile commerce, is a growing market as well. According to Juniper Research, mobile ticketing transactions are expected to exceed $100 billion worldwide by 2012. Fandango, a leader in the mobile ticketing space, now sees 20% of ticket sales coming through mobile. In fact, 19% of the recent Harry Potter opening weekend revenue of $169 million (that’s $32 million in two days if you’re doing the math) was generated from mobile devices. Fandango’s mobile site, which was developed with the assistance of Trilibis, allows users to search for movies playing in their area in real-time and to buy tickets. In some theaters, users can even hand their phone to the ticket taker for scanning. No standing in line, and no dealing with the clerk or the kiosk. (more…)