Mobile Shopping Creates a $15B Opportunity
The value of mobile retail marketing will reach $15 billion globally by 2012 as digital ad spend moves to mobile and mobile coupons gain acceptance, according to a new report from Juniper Research. This is a growth of 50 percent over 2011.
The New Face of Shopping
It is well-known that the smartphone, and more recently the tablet, has increased the capabilities of both the modern shopper and the mobile retail marketer. The marketer now has new marketing channels to attract the mobile shopper, but equally the shopper has more access to competitive product and pricing information before making a purchase.
In addition, traditional boundaries between physical (‘bricks and mortar’) retailing and online retailing are blurring as mobile bridges the gap; fundamentally disrupting the ecosystem with a new breed of ‘clicks and mortar’ retailing initiatives emerging.
Marketing Channel Choice
The report stressed, however, the importance of mobile marketers using the most appropriate mobile marketing channels to connect with the mobile shopper and the danger of assuming that the mobile app is the answer to every requirement. It also stressed the need to obtain subscriber opt-in to gain trust and lead to ongoing loyalty.
According to report co-author David Snow, “Mobile retailing is undergoing rapid change. We are starting to see an ‘arms race’, as the power of the mobile channel equips both the shopper and the retailer with capabilities they never had before. Each side has to keep up with the other and gain an advantage in order to clinch the purchase transaction in their favour.”
Other findings from the report include:
Going Mobile for the Holidays
- Mobile POS technology and NFC Proximity Marketing are areas of rapid innovation.
- Mobile retail marketing spend in North America and Western Europe is accelerating faster than in the Far East and China.
Another joint national survey from the Mobile Marketing Association (MMA) just reported that more consumers are planning to use their mobile device to make a purchase this holiday season than ever before.
That survey of 1,000 consumers found that more than half (62 percent) would be willing to make a purchase on their mobile device this holiday season if prompted by coupons, discount offers, text alerts, gift cards or loyalty points. In a similar survey conducted by Sybase 365 a year ago, only 32 percent of respondents said that mobile incentives would encourage them to make a purchase on their device.