Mobile marketing is a key driver for in-store purchasing, according the latest study from RetailMeNot, the digital offers marketplace. But there’s a discrepancy between the promotional content retailers provide and the personalised offers consumers would like to see. The Impact of Mobile Marketing on Retailer Sales study highlights this divide between consumer time spent on mobile devices and advertising spend, based on two studies conducted among shoppers and retailers by Kelton Global.
This market gap presents a $25bn opportunity for retailers in the US as consumers are spending 24% of their time using their mobile devices, but ad spend hasn’t caught up.
Discrepancy between ad spend and consumer time spent
What marketers may be missing out on becomes even more clear when taking an in-depth look at what consumers are using their mobile devices for. 83% are researching products using their smartphones and 77% have made a purchase over the last six months. (Figure 2.1) 91% of smartphone users are researching retailers on a monthly basis. (Figure 2.2) In addition, the study found that consumers are interested in receiving promotional content from retailers with emails being the key driver (66%), followed by video ads (62%) and shopping apps or websites (61%). (Figure 2.3)
Smartphone users are interested in retail promotions on their devices
Michael Jones, Senior VP, retail and brand solutions, RetailMeNot, says:
“Mobile promotions are influencing in-store purchases. What this data also suggests is that mobile is heavily influencing all channels, and almost equally so. It is imperative that retailers increase their reach on their mobile channel through their own efforts and by building out their ecosystem of partnerships that can deliver new customers and reengage a lapsed customer.”
Shoppers who crave personalisation are also happy to share more information about themselves such as their favourite stores (60%), gender (56%) and age (53%). When it comes to sharing personal data, men and millennials are happiest to do so.
Men and millennials happy to share data
Consumers who are looking for good deals are happy to redeem their mobile promo offers across a variety of channels, led by in-store (29%), mobile (26%) and on computer redemption (20%).
Mobile offers are being redeemed across various channels
On the retailer end, shop owners are generally on board with an always-on marketing approach to mobile. 47% said they used mobile display and search advertising and 31% are employing video ads. However, whilst many haven’t yet turned their mobile tactics into a broader cross-channel strategy to incorporate physical stores and other devices, the majority of retailers agree that mobile advertising will be a priority for them in the near future.
Retailer use of mobile marketing formats
Retailmenot recommends that retailers turn to their customers to spot ideas for creative content and employ ways to advertise that aren’t interruptive as well as choose single-code for targeted offers. Choosing the right marketing partner is also of growing importance especially when it comes to measurement. It pays to consider all forms of mobile measurement.