Mobile to drive mCommerce, location-based advertising and personalised messaging this year
Mobile technologies, and smartphones in particular, are now a key driver of digital interaction including shopping, but also marketing strategies such as location-targeted ads or personalised messages.
eMarketer estimates that the UK will have 43.6m smartphone users in 2017, ranking third worldwide for smartphone penetration. 81% of UK mobile phone users are smartphone owners this year. In addition, tablet usage is also predicted to grow and reach 68.5% in usage.
With 30% of smartphone users now checking their devices in the middle of the night, mobile usage has changed fundamentally. Indeed, mCommerce has become a major trend over the last year and is set to grow in 2017. Estimates suggest that there will be over 40m of shoppers on mobile devices. That’s 89% of the UK’s digital shoppers.
Mobile transactions are also increasing fast, with mCommerce sales in the UK having reached £5.5bn in 2016. By 2020, sales will have shot up to £25.74bn. The total share of mobile in UK retail commerce is set to rise from 6.3% to 7.6% in 2017 alone.
Another important focus this year will be location advertising. Though controversial at times, given data collection and quality concerns, 2017 is likely to be a groundbreaking year for location technologies. Pinpoint suggests that 72% of UK marketers were already using location mobile ads in 2016 and another 21.3% plan to do so in 2017.
Among the biggest challenges in location marketing are finding the right audiences and having confidence in location data.
Challenges in location-based mobile marketing
In addition, personalised ads are likely to experience a boosted presence this year. Given the growing awareness that personalised advetising provides better results, marketers are keen to jump on board.
Indeed, a Mailjet study in 2016 noted that individualised email influenced 40.2% of UK internet users to click for further information. Click-through rates were generally higher for personalised ads.
UK marketers also noted that more emails were opened when personalised and sales and consumer satisfaction increased accordingly. A mere 1% of advertisers rejected the benefits of individualised messaging.
Personalisation is key