Research conducted by Pagtel in partnership with E.life Group.

2. Index
1.Methodology
1.Used Methodologies
2.Who we talked to
2.Audience profile
3.Mobile marketing
4.M-commerce
1.Use of devices
2.Mobile purchasing
3.Safety
4.Future M-commerce
8.Conclusions

4. Used Methodologies
1 –Online Survey:
•Toolusedtoobtainstatisticrelevantdatathatasasamplerepresenttheuniversetobeanalyzed.
•Forthisstudyanonlinesurveywasappliedwith17closedendquestions(includingdemographics)anddurationofapproximately10minutes.
2 –Online Community:
•Thismethodologyisrecommendedtoexploreandunderstandindepththequestionsrelatedtosigns,motives,desires,incentivesandbarriersthatareusuallyhardertogettoinarationalwayandrequireamoreactiveapproach.

5. Who we talked to
1-Online Survey:
•Men and Women
•Classes ABC (Brazil Criteria)
•15 to 65 years old
•Location: Brazil (mix of different areas)
•Who own mobile devices (either tablets or smartphones)
•Who go online through these devices
Sample: 450 people

6. Who we talked to
2-Online Community:
•Men and Women
•Classes BC
•21 to 32 years old
•Who go online at least 4 times a week
•Who go online through mobile devices
•Locations: PR, RJ, SP, PE and RS.
Sample: 10 people

8. Audience Profile
32 years old
Is the average age of respondents
30%
38%
18%
14%
15 to15
26 to 35
36 to 45
46 to 65
40%
60%
Base: 450 Surveys.
Screener: 15 to65 years old
Age Groups:

9. Audience Profile
SEC*
Monthly Income
2%
12%
28%
34%
19%
5%
A1
A2
B1
B2
C1
C2
5%
11%
38%
25%
12%
9%
More than R$ 14.500
From R$ 7.250 toR$14.499
From R$ 2.900 to R$ 7.249
From R$ 1.450 to R$ 2.899
Up to R$ 1.449
Did not answer
Base: 450 surveys.
Screener: classes ABC. / *SEC determined based on the Brazil Criteria.

10. Audience Profile
Location distribution:
Base: 450 surveys.

11. Ownership of Mobile Devices
50%
Own a smartphone + a tablet
96%
54%
Smartphone
Tablet
Base: 450 surveys.
Question: “Do you own any of the following devices?” (MA)
Tablets are already part of more than half the audience’s lives

13. Mobile advertising is more negatively criticized than complimented on. Voice messages are the least liked among them, followed by banners within games and SMS.

14. Mobile Marketing
TypesofadvertisementthatareseenthemostXaudienceopinion:
27%
47%
30%
26%
12%
33%
71%
73%
53%
70%
74%
88%
67%
29%
Liked It
Did Not Like It
85%
74%
66%
65%
44%
24%
5%
SMS
Website Banner
App Banner
Game Banner
Voice Message/Call
SMS Flash
Bluetooth
Base: 450 surveys. / Question: “Have you seen or received in your smartphone or tablet any of the following types of advertisementlisted below?” (MA)/ Question : “Thinking of the types of advertisement you have seen, which ones you liked and which you did not?”
SMS is the most received mobile advertising format by the audience.

15. Themostimportantissuesregardingmobileadvertisingdisapprovalare:
•Unauthorizedadvertising(mostlySMS)
•Irrelevantcontent
•Thefeelingofbeinginvaded
•Theexaggeratedfrequencyofthoseads
•Insecurityregardingviruscontaminationorhacking(especiallywithbanners)
Mobile Marketing –Negative Aspects
Question: “Among the types of advertisement you DID NOT LIKE to see on your mobile device, what were the reasons not to like the format?” (MA)
Unauthorized advertising is the main complaint about mobile advertising.

16. Mobile Marketing –Negative Aspects
The reasons why the audience does not like eachof thetypesof advertising:
(multiple answers)
SMS
Base: 276
SMS Flash
Base: 74
Voice Message/ Call
Base: 173
Website Banner
Base: 174
Game Banner
Base: 216
App Banner
Base: 207
“Idid not authorize this type of advertisement”
72%
76%
68%
59%
60%
60%
“The content was not interesting”
67%
57%
57%
56%
62%
62%
“I have felt invaded”
68%
73%
70%
31%
44%
40%
“The frequencyfor this kind of message is too high”
55%
32%
25%
57%
60%
61%
“I was afraid I was getting a virus or being hacked”
39%
54%
26%
63%
59%
58%
“There was no optionto erase or close the ad”
--
45%
--
46%
58%
53%
“The content wasnot personalized”
39%
39%
38%
39%
40%
39%
“I thought the time was not good”
47%
41%
46%
--
--
--
“Thead was not interactive”
34%
46%
35%
30%
32%
31%
“Ithad a bad visual”
33%
35%
--
30%
41%
38%
“I could not find how to interact with the ad”
24%
32%
24%
22%
23%
27%
Question: “Among the types of advertisement you DID NOT LIKE to see on your mobile device, what were the reasons not to like them?” (MA)

17. Mobile Marketing -Compliments
Themostimportantapprovalaspectsofmobileadvertisingwere:
•Interestingcontent
•Theoptiontoeraseorclosethead(mostlywithbanners)
•Nicevisual(banners)
•Personalizedcontent
Question: “Among the types of ads you LIKED to see in your mobile devices, what were the reasons for liking them?” (MA)
Interesting content is what makes people interested in mobile advertising.

18. Mobile Marketing -Compliments
Reasons why the audience LIKES each type of advertisement:
(multiple answers)
SMS
Base: 104
SMS Flash
Base: 36
Voice Message/ Call
Base: 23
Website Banner
Base: 157
Game Banner
Base: 75
App Banner
Base: 87
“The content was interesting”
75%
50%
74%
66%
51%
56%
“There was an optionto close or erase the ad”
40%
44%
22%
66%
59%
47%
“The visual was nice”
25%
33%
--
62%
61%
54%
“The content was personalized”
33%
42%
22%
47%
33%
33%
“I have feltlike there was no real risk of viruses or being hacked”
41%
28%
26%
33%
40%
33%
“Thead came in as a good opportunity for me time wise (I was actually thinking of buyingthe product or service)”
30%
25%
22%
45%
32%
25%
“The ad hada level of interaction”
16%
22%
26%
45%
37%
33%
“I actually authorizedthe ad to be displayed”
38%
25%
17%
22%
27%
24%
Question: “Among the types of ads you LIKED to see in your mobile device, what were the reasons for liking them?” (MA)

19. Mobile Marketing -Interests
MobileAdstriggersmainlytheseactions:
•Clicks
•Interestontheproductorservice
•Pageviewsfortheadvertisers’websites
•Informationseekingontheproductorservice
Website banner is what makes audience engage the most though mobile devices.
Question: “Considering all those ad types you saw on your mobile device, have you at least once got interested in the product or serviceadvertised?” (MA)
Clicking on the ad is the most commonly triggered action among consumers.

20. Mobile Marketing -Interests
Actions based on interest for mobile ads:
(multiple answers)
SMS
Base: 381
SMS Flash
Base: 110
Voice Message/ Call
Base: 197
Website Banner
Base: 333
Game Banner
Base: 292
App Banner
Base: 295
“Ihave clicked on the ad”
20%
22%
13%
56%
23%
26%
“I have gotten interested in the product or service announced”
18%
19%
11%
55%
23%
25%
“Ihave viewed the announcer’s website”
16%
22%
12%
54%
19%
19%
“I have searched more information on the product or service”
17%
15%
13%
50%
18%
22%
“I have subscribed to get more content(ThroughFacebook likes, e-mails or SMS)”
14%
15%
8%
36%
13%
16%
“I have boughtor downloaded the product or service being advertised”
9%
7%
6%
36%
19%
20%
“I have told a friend about it”
10%
14%
8%
32%
14%
14%
“I have interacted with the ad”
9%
11%
10%
35%
12%
12%
“I have emailed the advertiser”
9%
12%
5%
30%
8%
8%
“I have called the advertiser”
10%
12%
10%
23%
3%
7%
“I have texted the advertiser”
18%
18%
5%
10%
7%
6%
Question: “Considering all ad types you saw on your mobile device, have you ever taken interest in a product or service advertised?” (MA)

22. Mobile devices are used a lot in the purchasing journey, although it is using a PC that shoppers usually finish the purchase.

23. 97%
96%
92%
79%
81%
66%
26%
54%
42%
37%
21%
22%
Devices Usage
Only 27% of those who use smartphones use it for shopping. Among tablet owners the number is bigger: 38%.
Activities performed by the audience X devices used
98,4%
97,8%
92,2%
83,6%
Seek information aboutproducts or services
Price comparison forproduct or services
Shopping
Internet Banking Usage
Base: 450 Surveys.
Question: “What tasks do you perform with each device?” (MA)
Smartphones and tablets combined are more used than PCs to seek information and for price comparison.

24. Devices Usage
Reason for PC preference when it comes to shopping:
•Easiness to browse
•Better interface of shopping portals
•The possibility to open multiple tabs makes price comparison easier.
•The feeling of security.
“Up until now I have never actually finished a purchase through the smartphone, although the device is one of the most used to decide what I want to buy: I research and compare prices”
(Fernanda, 24)
“I have already downloaded those deal-of-the-day website apps (such as PeixeUrbano) or price comparison (such as Buscapéor Bondfaro) but I rarely use them. I do not think they are so easy to use as the PC version. I say this because I really like to open multiple tabs at the same time to compare everything”
(Gimene, 31)
The PC is seen as practical, easy and safe for shopping purposes.

25. Mobile Shopping
57%
67%
2013
2014
60%
37%
32%
24%
10%
33%
Store Website
Paying Services (eg: Buscapé, Pay Pal, Pagseguro)
App Store (eg: App Store, Google Play)
Shopping App
SMS (ex: SMS content on soccer, horoscope, etc.)
Have never purchased anything
Have shopped through mobile devices:
The way mobile shopping happened:
Base: 450 Surveys. / Question“How did you shop using your mobile device??” (MA) Source 2013: Research“Jovensbrasileirose o mundomobile(Brazilian Youth and the Mobile World”, E.lifeandPagtel, June2013.
Mostpurchasesonmobile devicesare madedirectlyonstorewebsites.

26. Mobile Shopping -Motivations
46%
40%
39%
30%
26%
25%
21%
15%
13%
11%
10%
9%
"It is more practical"
"I have seen an Ad elsewhere (PC, TV, Magazine, Newspaper,…
"I have seen the Ad on a website/app/game on my mobile device"
"The purchase for for the smartphone or tablet itself (apps, content)"
"I use purchasing or payment apps"
"Browsing is good"
"I can compare and purchase all with the same device"
"I have family of friends who have purchased"
I have received the Ad through the smartphone"
"I feel safer than purchasing through the computer or physical store"
"The language used in the mobile device is simpler""
I am part of a fidelity program for mobile shopping"
Reasons why audience decides to buy through mobile devices:
Base: 300 Surveys.
Questions: “Why did you decide to have this purchase (or purchases) through the mobile device?” (MA)
The main motivationfor shopping is practicality although advertisement can serve as a strong stimulus as well.

27. Mobile Shopping -Barriers
69%
43%
32%
29%
18%
12%
7%
7%
7%
1%
"I would rather shop through the PC'
"I don't think it is safe"
"The website is either not mobile adapted or too small"
"The screen is small"
"The keyboard is confusing and not practical"
"I think it is complicated"
"I don't have a credit card"
"I do not like to shop online, I like to go to the stores"
"I have tried but have experienced problems or could not make it"
"I was not aware of this possibility"
Reasons why audience decides not to purchase through mobile devices:
Base: 150 Surveys.
Question: “Why do you not shop through your mobile devices?” (MA)
Among those who have never purchased anything through mobile devices, most are actually online shoppers. Security and browsing experience were mentioned as barriers.

28. Mobile Shopping –Pros and Cons
Advantages of shopping through mobile devices:
•Practicality
•Convenience
•Possibility of comparing product price comparison within stores
Disadvantages of shopping through mobile devices:
•Internet speed and overall connection quality
•Interface and browsing on mobile devices
•Lack of good apps to research prices and purchase things online
“3G connection and wi-fitend to be unstable, so I am afraid it might happen to lost connection during the purchasing steps”
(Fernanda, 24)
“I think the purchasing apps still have a lot to be improved. Maybe in a couple of years it will be better”
(Bruno B., 23)
“There are still so many bugs on some apps, websites that are not mobile-ready. There is also the research and trust issues”
(Larize, 25)
A Speed of mobile connection is a concern when shopping through the devices.

29. Mobile Shopping-Products
Products considered most suitable for mobile shopping and purchasing:
LEIZURE AND CULTURE
GOODS
VIRTUALITEMS
FOOD
61%
Tickets
52%
Electronics
55%
VirtualContent (Onlinemusic, apps, digital books)
44%
Food Delivery
47%
CulturalProducts (Books, CDs, DVDs)
36%
Clothing and Footwear
18%
SMS Content (Horoscope, soccer news)
25%
Bar, Club or Restaurant Bill
26%
Tourism (Planetickets, hotels, packages)
33%
Home Appliances
15%
Virtual Currency
(e.g.: Bitcoin)
15%
Supermarket Purchases
13%
Furniture and Decoration
Base: 450 Surveys.
Question“Which products or services do you think are most suitable for mobile shopping and purchasing?” (MA)
Tickets and virtual content are the items considered the most suitable for mobile shopping and purchasing.

30. Loyalty Programs
•Themainadvantageasseenbytheaudienceisthepossibilityofexchangingthepointsfordiscountsinthenextpurchasesorforgift-cards.
•Ontheotherhand,prizescanbeunattractiveanditmaytakealongwhiletogetenoughpoints.
•Valuable discounts in tickets
•Points take a long time to expire
•Cost-effective
•Valuable gif-cards
•Easiness to get and exchange points
•Easiness to transfer points, exchange them.
•Practicality
“I can be wrong, but I have the feeling that I do not spend enough to get a good amount of points to exchange for something nice, so it is a worthless task.I also get the impression that I would not find really interesting prizes when the time of the exchange were to arrive.”
(Ivy, 29)
Good part of the audience have heard of loyalty programs for online/mobile transactions but few of them are active users of them.

31. M-commerce is still seen as less safe than shopping online through the PC. A trustworthy sales point and look and feel of the website are still key for this security perception.

32. Safety
•The audience think of online shopping done through the PC as trustworthy because it is easier for them to see that they are in a safe environment –lock symbol and https domains are part of that readable codes.
•Shopping through unknown sites/apps, those they haven’t used before, are avoided.
•ReclameAquiis an important source of sales points reputations.
•The interface for shopping portals for mobile is influential on the purchasing decision.
“Since we are supposed to have caution when buying things through the smartphone I avoid sites I am not familiar with already”
(Bruno B., 23)
“I believe that the unsafe aspect for the mobile comes from the lack of minimal certification, on the internet most websites show their level of security and even use add-ons to ‘keep the environment secure’”
(Giovani, 21)
Safety is a barrier for m-commerce.

33. Safety
Key factors that make/would make audience more confident when it comes to purchase security:
Trusting the brand for the website, app or app store.
The types of payment available
Security terms published on the website or app.
Inserting a personal password.
Visual recognition through image.
80%
47%
37%
15%
User reviews on the store, product or service.
Biometrics recognition (Digital Print).
Voice recognition.
56%
39%
20%
12%
Base: 450 Surveys.
Question“Which factors make (or would make) you feel safe when mobile shopping?” (MA)
Trusting the sales channel is what most makes the consumer feel safe when purchasing through mobile devices.

34. Safety
Whatcanbedonetoimprovetheperceptionofsecurityamongconsumers:
•Securitycertificationformobiledevices(theequivalenttolocksonthebrowsers).
•Positiveevaluationfrompeers.
•Improvementontheinterfaceofshoppingportalsformobile.
•Lackofpop-upsmakethewebsitefeelmoretrustworthyandmakesbrowsingeasier.
“Websites with a lot of ads/links do not seem reliable, mainly those with weird pop-ups. So I look for stores that are more well-known”
(Fernanda, 24)
“I have never purchased anything through my smartphone or tablet, but I guess I would only do it through an app. When I am on a website it is easier to look for signs that the page is secure. I am afraid I would not be able to identify those signs through the mobile device”
(Ivy, 29)
According to consumers’ perceptions apps feel safer than websites.

35. Payment Platforms
•Thelackoftrusttowardstheapporwebsitecanbeovercomeincaseawellknownpaymentplatformisusedforthetransaction,suchasPayPalorPagSeguro.
“Today there are websites that offer a warranty and make you feel safer purchasing online, even if you don’t have previous experience with it. For example Paypalonly pays the sender after you get your merchandise and even will refund you in case of any problem.”
(Monique, 24)
“I try to always buy from websites that are known, I also research ReclameAquibeforehand and also opinion blogs. I also try to make the transaction through payment platforms such as PagSeguroand PayPal”
(Gimene, 31)
Payment platforms mediate the transaction and are considered relevant security criteria when for shopping.

36. Virtual Currency
•Onlineandmobilepaymentprogramsarenotusedalot.
•VirtualcurrencyBitcoinisknownbysomebutthereisalackofinformationonhowitactuallyworks.
“I have read something about Bitcoin but I do not really recall how it works so I would not feel safe using it, I would rather get more information about it. I have never heard of payment using SMS nor have I heard of virtual money (sounds like ‘fake money’ to me)”
(Ivy, 29)
“I have never heard of SMS payment… Bitcoin yes, I have heard of but I do not know how it works”
(Bruno B., 23)
There is still a lack of trust when it comes to virtual transactions, especially when it comes to SMS and virtual currencies.

37. According to the audience perception, virtual commerce in the future will provide a realistic shopping experience. M- Commerce, through mobile and wearable devices will dominate the business.

38. Future M-Commerce
Theaudiencebelievesthattechnologywilladvancetoapointproductvisualizationwillbeenhanced– withholographicimagesandaugmentedreality– makingshoppingonlineclosertotherealthing.
“I hope shopping becomes more realistic, maybe when buying a product online I will be able to print it at home in my 3D printer and never to depend on mail delivery again...”
(Fernanda, 24)
“The virtual shopping experience today has a lot of room for improvement when compared to the physical stores, I do not know how much e- commerce channels think of that when trying to improve their experiences”
(Ivy, 29)
Interacting with the product is what could be improved in this virtual shopping experience.

39. Future M-Commerce
Channelsthatwillbeusedforshopping:
•Smartphonesandtablets
•GoogleGlass
•SmartTVs
•Bluetooth
•Smartwatches
Paymentmethodstobeused:
•NFCTechnology(NearFieldCommunication)
•BiometryorEyeScanforuseridentification.
•Greaterusageofvirtualcurrency.
“I believe that in the future we will use NFC technology to pay for things and we will be able to centralize all services in a single account. I believe this will be done with smartphones, glasses, watches and with time we will use bigger devices less and less.”
(Madelaine, 26)
“As banks are using tokens e digital prints for clients I would conceive the idea that in 10 years I would be able to buy a lot of things in a lot of channels with just my thumb.”
(Rafael, 31)
When it comes to security there is a lot of expectations regarding greater protection of personal information.
Mobile devices will be key for future shopping journey.

40. Wearable Devices
“Maybe in the future more wearable technology will emerge and fill fit our daily lives. For now it still seems to me like science fiction devices.”
(Bruno F, 32)
“I have hard and even read about Google Glass. I guess it has a lot of potential when it comes to technology, I can see myself using it in the future without any problems. Other than the amazing potential for functionalities related to augmented reality I also think the discreet aspect is key for it to become more and more popular”
(Rafael, 31)
GoogleGlassisthemostknowndevice.Thepotentialforitstechnologyisseenbypeopleandtheyseethemselvesusingthedeviceinthefuture.
Ontheotherhand,Motorola’sHC1Headset,isseenasfictional,notpracticalnordiscreet.
Wearable devices are still seen as futuristic and fictional/unreal.

41. Wearable Devices
Positive Aspects:
•Immediate access to information without having to stop daily activities to get them.
•It will make people’s lives easier as it is convenient and practical for the user.
Negative Aspects:
•Price –at first it is meant for rich people only.
•Lack of security –People are reluctant to use these gadgets in public.
•Quality and price of mobile technologies.
•Excessive connection to the device.
“I do believe that the more discreet they are, the better, to have something getting people’s attention would not make me feel safe at all”
(Larize, 25)
“Sometimes it seems something really cool, out of science fiction movies, but sometimes I think it is too much and people should disconnect a little bit. Like when you forget your phone at home and you feel as if you lost a limb, you know? I guess that for those it will be even worse.”
(Ivy, 29)
Wearable devices will be part of our daily lives when the price paid for them is within everyone’s budgets.

43. WHATISEXPECTEDOFM-COMMERCE?
•MobileAdsthatmakespeopleinterested.ThetypesofAdsshouldbereimaginedtogettheaudiencetotrustthem.Interestingandpersonalizedcontentwithattractivevisualsaswellastheoptiontoclosethemhaveapositiveimpactamongconsumers.
•Thecompletepurchasejourneythroughmobiledevices.Smartphonesandtabletsarekeyfortheinitialstepsofthisjourneybutseldomtheyareusedtofinishthetransaction.Securitycertificationandmobile-adaptedinterfacesarepartofthepathtograduallychangethisscenario.
•Loyaltyprogramsthatareappealing.Loyaltyprogramsarestillnottrendingformobiledevices.Forthemtobeseenasworthwhilethetransactionsshouldbemadeeasierandprizesmoreattractiveaswellasthescoringprocesswhichshouldbequicker.
Conclusions

44. WHATISEXPECTEDOFM-COMMERCE?
•Awiderusageofpaymentplatformsandvirtualcurrencies.Paymentplatformsthatmediatetransactionscancontributeforthebrandwhentheplatformbrandistrustworthy.Ontheotherhand, virtualcurrenciesshouldbeadvertisedmoretogainterritorywhenitcomestopublicknowledgeandacceptanceofit.
•Therealisticshoppingexperience.Mobileandwearabledevicesarepartofthecollectiveimaginationwhenthetopicisshoppinginthefuture.InthissensethechallengeofM-Commerce(aswellasE- Commerce’s)istoprovidearealisticshoppingexperiencefortheconsumer.Makinguseoftechnologiessuchasaugmentedrealitytheaudiencewouldbeabletohaveavirtualexperiencethatisclosertothesensorialexperiencethattakesplaceinaphysicalshop.
Conclusions

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