The IBM study is proof that consumers are using their mobile devices to shop. The study also compared how Christmas mobile shopping compared to previous years.

“For the really smart retailers, the holiday season paid out with the rise of mobile consumers,” said John Squire, chief strategy officer of IBM Smarter Commerce, Armonk, NY.

Holiday spike
The IBM study looked at mobile usage over two days – Dec. 25 and Dec. 26.

On Dec. 25, 14.4 percent of all sales that IBM observed were made via a mobile device, which is up from 5.3 percent in 2010 –  a 172.9 percent increase.

Mobile traffic in general increased by 117.8 percent year-to-year on Christmas Day.

Of all Web traffic, iPads claimed seven percent of device share, iPhone devices totaled 6.4 percent and Android accounted for five percent of usage.

As a group, online sales grew 16.4 percent year-over-year on Christmas Day.

In addition to Christmas Day, consumers also spent more time and money via mobile the day after Christmas.

Online sales increased 27.8 percent year-to-year for Dec. 26.

Mobile traffic made up 16.4 percent of Web visits the day after Christmas, which is up 109.3 percent from 2010.

Sales from a mobile device accounted for 11.3 percent of all Web sales the day after Christmas, compared to 4.3 percent in 2010.

Mobile shift
IBM’s findings is only the latest piece of data showing that consumers are increasingly using mobile to shop.

Earlier this holiday season, San Francisco-based research firm released a study that found that online retail dollars that can be attributed to mobile increased from 1.87 percent in April to 3.74 percent in December (see story).

Going forward, 2012 is expected to be a year of innovation for mobile commerce.

“We expect mobile to increase – there are more mobile devices now and retailers can be expected to build out the mobile shopping experience,” said David Selinger, CEO of RichRelevance, San Francisco.

Mr. Selinger also said that retailers can expect to see more use of interactive mobile initiatives, including check-ins, deals and games in 2012.

Additionally, eMarketer predicts that mobile commerce will total $11.6 billion in 2012, which is up from 2011’s projected $6.7 billion.

“Mobile has been growing since January, and our expectation is that we will see more overall online engagement coming in through mobile devices in the next year,” Mr. Squire said.

“There are big implications for retailers to think about the best ways to promote their products and their overall experience online for smart consumers who are using smartphones and tablets,” he said.

The non-profit foundation said it had “negotiated a significant and mutually beneficial revenue agreement” with Google for the next three years.

Some analysts had predicted Google would back out of the deal as it tries to grow the market share of its Chrome browser.

Mozilla relies heavily on the income generated by search partnerships.

“Under this multi-year agreement, Google Search will continue to be the default search provider for hundreds of millions of Firefox users around the world,” said Gary Kovacs, Mozilla’s chief executive.

Alan Eustace, Google’s senior vice-president of search, said: “Mozilla has been a valuable partner to Google over the years and we look forward to continuing this great partnership in the years to come.”

The foundation said the exact terms of the deal would not be disclosed.

In its accounts for 2010, the Mozilla Foundation said it earned $121.1m (£77m) from agreements with Google, Microsoft and others. The Google agreement was thought to make up about 85% of that amount.

The previous deal, which ran out in November, was signed before Google’s Chrome browser had gained a presence in the so-called “browser war”.

Some internet monitoring organisations suggest Chrome has overtaken Firefox to become the world’s second most widely used browser, behind Microsoft’s Internet Explorer.

Many put this down to lavish advertising campaigns undertaken by the search giant across the world.

Chrome’s launch and subsequent growth has now put it in direct competition with Firefox, yet Google remains financially responsible for Mozilla’s survival.

But Whit Andrews, an analyst for Gartner, was not at all surprised by Google’s decision to continue backing the browser.

“What Google really wants is more advertising on the internet. It’s very simple. If it drives more ads on the internet, they’re into it.

“Google want the shelf space. There’s a shelf sitting there and they’ve got a product. The fact that the shelf is with a competitor, they don’t really care. The alternative is that another competitor gets the shelf.”

Firefox 9, the Mozilla browser’s latest incarnation, was launched on Tuesday. Mozilla said it was “30% faster” than previous versions – a problem that has been cited by many users switching to Chrome.

AC

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