In response to the evolution of trends in retail spending, stores will nearly double the amount of investment in retail mobile marketing over the next three years.
Retail mCommerce: Mobile & Tablet Marketing, Advertising & Coupon Strategies 2013-2017,a new study by Juniper Research, finds that the increased spending on mobile initiatives will be part of an overall effort to drive more in-store traffic and online sales.
Retail mobile market spending is expected to total $28 billion this year, and will grow to $55 billion in 2015. By comparison, the total was $18 million in 2012.
“Clearly, there is a marked migration of marketing budget into digital media, and as part of that migration, mobile’s proportion is markedly increasing,” said Dr. Windsor Holden, principal analyst at Juniper Research. “Mass smartphone and tablet adoption amongst end users leading to a surge in mobile and nomadic browsing, the development of mobile and couch commerce, the attendant decline in circulation of newspapers and many magazines and leading brands seeking out new ways of engaging with consumers – these are all factors which, in isolation or combination, mean that including mobile as a marketing channel is absolutely critical for brands and retailers.”
The report stresses that this increased spending will not only be used to promote consumer spending on mobile devices, but also to encourage in-store sales. Other reports have indicated that retail spending through proximity payments will be the fastest growing segment of mobile commerce from 2013 to 2017, so retailers must adapt and use mobile marketing in nearly all aspects of business.
“With eCommerce migrating to mobile and nomadic devices, ad spend on both tablets and smartphones is continuing to grow strongly as retailers (notably in North America and Western Europe) migrate their own spend to digital in general, and mobile in particular,” reports the study.
Mobile coupons are expected to be a big part of mobile marketing budgets, as they allow personalized and tailored messaging. This promotes a closer relationship between retailer and consumer, leading to repeat traffic and sales both online and in-store.
Mobile advertising will also be a focus of retailers in the coming years, particularly as they attempt to close the widening gap between brand advertising and transactional mobile advertising. Brand advertising is traditional advertising that attempts to keep the brand at the top of the customer’s mind without driving sales conversions or transactions. Transactional mobile advertising, however, uses location-based advertising to convert users where they are.
“For the major retailers we’re certainly talking about omnichannel – there is a need to marry their physical and digital assets,” Holden said.
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