Mobile and Internet Shopping to Replace One-Third of Retail and Catalogue Purchases This Christmas

DURHAM, N.C.--(BUSINESS WIRE)--Nov. 30, 2005--

Motricity Survey Reveals That 83% of Consumers Plan to Use the Internet and Mobile Devices to Purchase Christmas Gifts

“As the leader in the mobile retailing space, we believe that what has been learned from online behavior over the years can be directly applied to the mobile market”

Motricity, the leading global provider of mobile content and solutions, in conjunction with Greenfield Online, today announced the results of a Mobile and Online Shopping survey that indicate a shift in consumers buying patterns - from traditional retail and catalogue shopping, to purchasing goods online and through mobile devices. Over 80% of respondents plan to purchase gifts on the Internet or via a mobile device during the holiday season. These findings are consistent with a similar survey conducted in the U.K., which concluded that 77% of respondents will use the Internet and/or a mobile device to shop during Christmas.

"Our research indicates that more people than ever will be shopping online this Christmas and that the clear winners will be the retailers who have managed to make the most of their online presence and become truly multi-channel," said Ryan Wuerch, Chairman and CEO of Motricity.

Other survey findings include:

-- Almost 50% of respondents plan to spend more than $100 when purchasing gifts online for Christmas

-- Nearly 50% of consumers surveyed shop at different stores/brands when purchasing online or via mobile devices

-- 53% of respondents indicated that they would use online shopping more if they could accumulate loyalty points

Almost 40% of respondents said Internet and mobile shopping have replaced other shopping means, confirming an emerging trend that mobile devices are becoming the new storefront. According to Motricity's survey, 60% of respondents plan to spend up to $200.00 on goods and services via mobile devices or online during the Christmas season, compared to 45% who will purchase the same amount in retail stores.

Furthermore, 50% of respondents said they tend to go to different stores and brands when shopping online, which could result in a loss of consumer traffic for brick and mortar retailers during the Christmas shopping season. This behavior is mirrored in Europe, where 49% of respondents shop at different stores online. Based on the survey results, it is estimated that traditional retailers in the U.K. will likely lose up to 37.5 % of Christmas business to online-only vendors such as Amazon.com and eBay. And while only one-third of respondents believe that more discounted prices can be found online, these statistics show that mobile and online shopping are quicker, easier and hassle-free. In fact, 53% of respondents said they would use online and mobile shopping even more if they could accumulate loyalty points and other various discounts. Today, 34% of respondents are already enrolled in personalized loyalty and rewards programs.

"As the leader in the mobile retailing space, we believe that what has been learned from online behavior over the years can be directly applied to the mobile market," said Wuerch. "Great content or products were not enough to accelerate ecommerce adoption. But broad content selection and an easy, fun means of online shopping, combined with trusted methods of payment, helped drive-up the adoption rate. Mobile shopping is just catching on in the U.S., and there is tremendous opportunity for content providers and wireless carriers to take advantage of this new distribution channel."

About Motricity

As the world's leading mobile content and solutions provider, Motricity's technology and solutions enable consumers to receive the right mobile content, at the right time, everytime. By offering technology and services that unify the mobile content ecosystem, Motricity creates compelling user experiences and delivers more profitable mobile content offerings for partners such as Cingular, Verizon Wireless, China Unicom, O2, Amazon.com, palmOne and a network of consumer websites, including eReader.com and PalmGear.com. Motricity is headquartered in Research Triangle Park, N.C., and has offices in Beijing, London, Munich and San Francisco. For more information, please visit www.motricity.com.