Groupon, LivingSocial Already are “Mobile First”

The mobile web and mobile computing and applications experience is destined to be more driven by commerce than was the PC web, if only because mobile web and mobile apps really mean smart phones that are “always” carried with a person. That means mobile web queries have a higher likelihood of being used to plan commerce-related activities.

Also, a smart phone is an intentional “communications” device, not just a computer. And communications frequently are used to plan and coordinate activities with other people.

Beyond that, there already are signs that mobile devices are being used for both remote and local retail commerce. On the remote front, mobile retail and travel spending grew by 80 percent in 2011 and is expected to more than double by the end of 2012, Forrester Research says.



By 2017, mobile commerce is expected to quadruple, Forrester Research argues. Travel is currently, and will continue to be, a significant portion of this total spend.

Nonetheless, local retail (mobile payments, in particular) will be among the fastest-growing categories, reaping approximately $25 billion worth of transaction value in 2017.

Consumers will spend about half of that  on media products, which currently dominate the retail landscape. Over time, apparel and consumer electronics spending will see rapid growth, but media products will continue to lead mobile retail spend.



When Groupon announced its Q2 earnings, the growing importance of mobile transactions was notable. “With nearly a third of North American transactions in July originating from mobile devices, we are quickly becoming one of the largest mobile e-commerce companies out there,” said Groupon CEO Andrew Mason.

While mobile is still considered a rounding error for many digital businesses, there is broad acknowledgement that it is rapidly increasing in importance, comScore argues.

Groupon and LivingSocial, for example, are already attracting larger audiences on mobile devices than via the traditional desktop web.

Groupon’s July 2012 mobile web + app audience (age 18+ on iOS, Android and RIM platforms) was 17.8 million visitors, while its comparable desktop audience was 12.4 million.

LivingSocial had a total mobile audience of 8.8 million visitors compared to 7.3 million on desktops. The point is that mobile transactions for those two services already are mostly mobile.