Mobile Retail Market Will Boom by 2014
Juniper Research is reporting in a new study that one-to-one marketing allied to the rapid proliferation of smartphones will be among the key drivers of a mobile retail market boom which is anticipated to exceed $12 billion by 2014.
The 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 advertising spend is increasingly transferred into the mobile space. According to report co-author Howard Wilcox, “Retailers have recognized 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.”
Other findings from the Juniper report include:
• For brands and retailers, mobile offers the ability to change campaigns quickly (for example by time of day), and crucially the ability to track the success and customer acquisition rates.
• Usage of the mobile in a live shopping situation can be particularly effective – for example for product price comparisons
• While the mobile will be an effective channel for younger users who organise their lives around their mobile phones, older demographic groups are likely to be less receptive to using their mobiles in a retail situation