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:
• Tool used to obtain statistic relevant data that as a sample represent the universe
to be analyzed.
• For this study an online survey was applied with 17 closed end questions
(including demographics) and duration of approximately 10 minutes.
2 – Online Community:
• This methodology is recommended to explore and understand in depth the
questions related to signs, motives, desires, incentives and barriers that are
usually harder to get to in a rational way and require a more active approach.

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 to 65 years old
Age Groups:

9. Audience Profile
SEC* Monthly Income
2%
12%
28%
34%
19%
5%
A
1
A
2
B
1
B
2
C
1
C
2
5%
11%
38%
25%
12%
9%
More than R$ 14.500
From R$ 7.250 to
R$14.499
From R$ 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
Types of advertisement that are seen the most X audience opinion:
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 advertisement listed
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. The most important issues regarding mobile advertising disapproval are:
• Unauthorized advertising (mostly SMS)
• Irrelevant content
• The feeling of being invaded
• The exaggerated frequency of those ads
• Insecurity regarding virus contamination or hacking (especially with banners)
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 each of the types of 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
“I did 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 frequency for 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 option to erase or close the ad” -- 45% -- 46% 58% 53%
“The content was not personalized” 39% 39% 38% 39% 40% 39%
“I thought the time was not good” 47% 41% 46% -- -- --
“The ad was not interactive” 34% 46% 35% 30% 32% 31%
“It had 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
The most important approval aspects of mobile advertising were:
• Interesting content
• The option to erase or close the ad (mostly with banners)
• Nice visual (banners)
• Personalized content
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 option to 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 felt like there was no real risk of viruses or being hacked” 41% 28% 26% 33% 40% 33%
“The ad came in as a good opportunity for me time wise (I was actually thinking of buying
the product or service)”
30% 25% 22% 45% 32% 25%
“The ad had a level of interaction” 16% 22% 26% 45% 37% 33%
“I actually authorized the 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
Mobile Ads triggers mainly these actions:
• Clicks
• Interest on the product or service
• Page views for the advertisers’ websites
• Information seeking on the product or service
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 service advertised?” (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
“I have 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%
“I have 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 (Through Facebook likes, e-mails or SMS)” 14% 15% 8% 36% 13% 16%
“I have bought or 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 about
products or services
Price comparison for
product 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 Peixe Urbano) or price comparison (such as
Buscapé or 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 “Jovens brasileiros e o mundo mobile (Brazilian Youth and the Mobile World”, E.life and Pagtel, June 2013.
Most purchases on mobile devices are made
directly on store websites.

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 motivation for 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-fi tend 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 VIRTUAL ITEMS FOOD
61% Tickets 52% Electronics 55%
Virtual Content (Online
music, apps, digital books)
44% Food Delivery
47%
Cultural Products (Books,
CDs, DVDs)
36% Clothing and Footwear 18%
SMS Content (Horoscope,
soccer news)
25%
Bar, Club or Restaurant
Bill
26%
Tourism (Plane tickets,
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
• The main advantage as seen by the audience is the possibility of
exchanging the points for discounts in the next purchases or for
gift-cards.
• On the other hand, prizes can be unattractive and it may take a
long while to get enough points.
• 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.
• Reclame Aqui is 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
What can be done to improve the perception of
security among consumers:
• Security certification for mobile devices
(the equivalent to locks on the browsers).
• Positive evaluation from peers.
• Improvement on the interface of shopping
portals for mobile.
• Lack of pop-ups make the website feel
more trustworthy and makes browsing
easier.
“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
• The lack of trust towards the app or
website can be overcome in case a well
known payment platform is used for the
transaction, such as PayPal or
PagSeguro.
“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 Paypal only 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
Reclame Aqui beforehand and also opinion blogs. I also try to
make the transaction through payment platforms such as
PagSeguro and PayPal”
(Gimene, 31)
Payment platforms mediate the transaction and are
considered relevant security criteria when for
shopping.

36. Virtual Currency
• Online and mobile payment programs are not used
a lot.
• Virtual currency Bitcoin is known by some but there
is a lack of information on how it actually works.
“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
The audience believes that technology will advance
to a point product visualization will be enhanced –
with holographic images and augmented reality –
making shopping online closer to the real thing.
“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
Channels that will be used for shopping:
• Smartphones and tablets
• Google Glass
• Smart TVs
• Bluetooth
• Smart watches
Payment methods to be used:
• NFC Technology (Near Field Communication)
• Biometry or Eye Scan for user identification.
• Greater usage of virtual currency.
“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)
Google Glass is the most known
device. The potential for its
technology is seen by people and
they see themselves using the
device in the future.
On the other hand, Motorola’s
HC1 Headset, is seen as
fictional, not practical nor
discreet.
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. WHAT IS EXPECTED OF M-COMMERCE?
• Mobile Ads that makes people interested. The types of Ads should be reimagined to get the audience
to trust them. Interesting and personalized content with attractive visuals as well as the option to
close them have a positive impact among consumers.
• The complete purchase journey through mobile devices. Smartphones and tablets are key for the
initial steps of this journey but seldom they are used to finish the transaction. Security certification
and mobile-adapted interfaces are part of the path to gradually change this scenario.
• Loyalty programs that are appealing. Loyalty programs are still not trending for mobile devices. For
them to be seen as worthwhile the transactions should be made easier and prizes more attractive as
well as the scoring process which should be quicker.
Conclusions

44. WHAT IS EXPECTED OF M-COMMERCE?
• A wider usage of payment platforms and virtual currencies. Payment platforms that mediate
transactions can contribute for the brand when the platform brand is trustworthy. On the other hand,
virtual currencies should be advertised more to gain territory when it comes to public knowledge and
acceptance of it.
• The realistic shopping experience. Mobile and wearable devices are part of the collective imagination
when the topic is shopping in the future. In this sense the challenge of M-Commerce (as well as E-
Commerce’s) is to provide a realistic shopping experience for the consumer. Making use of
technologies such as augmented reality the audience would be able to have a virtual experience that
is closer to the sensorial experience that takes place in a physical shop.
Conclusions

45. Pamplona, 518 – 4º Floor
ZIP-CODE: 01405-000 – São Paulo – Brazil
(+55) 11 2339 4928