Global brand and retail spend on digital marketing activities will reach $200bn this year, an increase of 15 per cent on 2014 levels, according to new research from Juniper Research.
The study, Digital Retail Marketing: Loyalty, Promotions, Coupons & Advertising 2015-2019, found that almost 70 per cent of the net increase on digital marketing spend this year would be concentrated on mobile and tablet devices, as brand strategies evolve to deliver campaigns within an omnichannel digital environment.
According to the research, factors behind the migration to smartphones and tablets include their ability to enable timely, targeted, personalised campaigns, to enhance customer engagement and to analyse the relative success of campaigns. It found that, in the case of mobile coupons, redemption rates were typically significantly higher and costs per redemption much lower than for traditional mechanisms such as direct mail or newspaper coupons.
Additionally, the report highlights the potential for using predictive analytics on the wealth of online data generated through consumer activities on websites and social media. It found that predictive analytics is increasingly being used in real time, with retailers able to tailor advertising and product promotion while a customer is browsing their websites.
However, the research also cautions that brands need to develop marketing strategies to cater for an audience which increasingly media meshes or media stacks: that is, uses multiple screens simultaneously for digital activities which may or may not be related.
It also stresses the importance of maximising the potential of digital media throughout the entire retail lifecycle rather than purely to drive product awareness and/or one-off footfall to stores. According to research author Dr Windsor Holden: “The beauty of mobile and online marketing channels is that they can play an active role throughout the retail lifecycle, from product discovery to product purchase, enhancing customer value through personalised promotions.”
There’s more information about the report here.