M-shopping creates a $15bn opportunity for retail marketing and advertising in 2012
A new report from Juniper Research has found that value of mobile retail marketing will reach $15 billion globally by 2012 as digital ad spend moves to mobile and mobile coupons gain acceptance – a growth of 50% over 2011. Mobile retail marketing spend in North America and Western Europe is accelerating faster than in the Far East and China.
The report found 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.
The report stresses, 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."
The report also found that mobile PoS technology and NFC Proximity Marketing are areas of rapid innovation.
The Mobile Retail Marketing whitepaper is available to download here