Already, 33 per cent of smartphone users have made a purchase on mobile, and for those who dont buy directly from their hand-held device, it remains an important part of the path to purchase.
Retailers are seeing 20-30 per cent of web traffic coming from mobile, as consumers browse and research from the comfort of the sofa or train seat, before maybe going in-store to buy – and this is only going to grow. But how can retailers embrace the future of this consumer led revolution from a marketing perspective?
I believe that retailers integrating mCommerce into their business model must develop a mobile marketing strategy in the same way that they would have pumped resources into traditional marketing ventures for traditional retail. Understanding and opting for the right strategy for a target audience will by key. Here are four
Location-based ads
These ads work because they are relevant. They drive footfall by blending digital and the high-street. Retailers with bricks and mortar stores who want to drive footfall and influence spend can deliver a relevant ad, tailored to an individual, based on their location, in real-time. The sports fan with a weakness for flashy kit is going to welcome a personalised 30 per cent discount code for the latest pair of designer sports shoes, as he walks past the sports clothing outlet, for example.
The ads work by harnessing location data gathered from sources such as GSP level data or IP address analysis. So, consumers who are out and about on the high street can be targeted with relevant ads, offers and messages based on where they are geographically. These consumers will be ready and willing to respond because they are already readily mixing their digital and real worlds – texting, WhatsApp-ing, QR code scanning and browsing online as they go about their day.
Retargeted mobile ads
We know that retargeting on desktop has worked for retailers – 95 per cent of users leave a site without making a transaction, but once retargeted, they are 70 per cent more likely to complete a purchase. Until recently, retargeting on mobile has been impossible due to strict mobile privacy regulations, but now, new technology has been developed in compliance with these regulations – leaving retailers with unprecedented marketing opportunities.
Weve found that retargeted mobile ad campaigns generate, on average, an impressive 40 per cent conversion rate from previously abandoned leads. So, as more and more mobile users turn to their mobiles and tablets for convenient browsing and buying experiences, it makes sense for retailers to meet them where they are in a position to be influenced whilst in the purchasing mind-set. Mobile retargeting enables retailers to engage positively with those 60 per cent of mobile shoppers who leave their mobile shopping basket agonisingly full, but who do not complete the purchase.
Mobile-specific affiliate networks
Retailers used to create brand awareness by reaching out to the masses with online, out-of-home, TV and print ads. A recent study by Accenture reveals that 69 per cent of internet users gain access through a mobile device – suggesting the masses have most definitely made a move to mobile and that retailers who want to share their brand with them must do the same.
The traditional advantages of web-based affiliate marketing – cost-effective customer acquisition and brand awareness building – are now available in the mobile sphere. Mobile-specific affiliate networks enable retailers to run fully-targeted international campaigns with the transparency to see which sites are generating the most successful leads, so that the frequency of ads on a particular site can be increased or decreased accordingly. Mobile users in 220 countries, equating to a potential 60bn monthly impressions, can be reached.
In-app ads
Opportunities for in-app advertising are soaring, as users become increasingly loath to pay too much for an app download, driving prices down and the need for revenue from ads up. Facebook announced it would be offering in-app ad space back in October, and LinkedIn is currently testing smartphone ads in new mobile apps. And, with one seventh of the world’s population on Facebook, and more and more users downloading the app, the opportunities for retailers are extensive.
The ads appear within users Facebook news feeds, providing prime placement for ads with engaging content. Facebook reports that in-app ads are experiencing 50 per cent higher clickthrough rate and significantly higher conversion rates than ads on normal mobile channels.
Retailers can take advantage of these ads, using them to target an audience at a personal level at a time when they are relaxed and willing to browse. The consumer has taken the action to download the app and is choosing to engage with it – ready to click through to more entertaining, informative content. By ensuring the ad is well suited to the app it sits inside, the consumer is more likely to engage.
Enter the omnichannel age
By taking advantage of the latest cutting-edge mobile advertising technologies, retailers can develop an omnichannel marketing strategy to complete the omnichannel path-to-purchase experience. And, mobile ads remain relatively cheap compared to other outlets such as TV and the web. What’s not to like?
Simon Wajcenberg is CEO of Clash Group