Smartphone adoption and one-to-one marketing to drive the market
One-to-one marketing and the smartphone adoption will be among the key drivers of a mobile retail market which is anticipated to exceed $12bn by 2014, according to a new report from Juniper Research.
The mobile marketing and retail strategies report found that the mobile retail sector – defined by Juniper as comprising mobile coupon redemption values, smart poster fees and advertising expenditure, would initially be dominated by coupons. However, it noted that mobile advertising expenditure would exceed coupon redemption values by 2013 as digital adspend is increasingly transferred into the mobile space.
According to Juniper Research, the retailing industry and brands are becoming increasingly aware of, and implementing the mobile device into, the retail cycle. Additional factors such as the growth of the mobile web, the availability of high speed mobile broadband networks, and the ever-growing usage of SMS were offering retailers, brands and merchants new opportunities to communicate with customers and potential customers and to offer the ability for them to shop by mobile.
In addition, mobile offers brands and retailers the ability to change campaigns quickly and the ability to track the success and customer acquisition rates. The usage in a live shopping situation can be particularly effective and can be an effective channel for younger users, while older demographic groups are expected to be less receptive to using their mobiles in a retail situation.
Howard Wilcox, co-author of the report, said: “Retailers have recognised that, even ahead of their wallets, people will usually make sure they do not leave home without their mobile device. The mobile channel offers merchants the opportunity to differentiate from their competition and acquire customers that become loyal.”