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18pc of marketers already using beacons: Adobe

By
November 19, 2014

The Apple iBeacon logo

The Apple iBeacon logo

In a reflection of how quickly marketers have embraced beacon technology, 18 percent report that they are using beacons today in tests or active deployments, according to new research from Adobe.

Beacons and location awareness are adding another dimension to in-store digitization, with high expectations for their impact this holiday season. The research found that 55 percent of consumers find it useful to receive promotions on their mobile device while in a physical store.

“Eighteen percent of marketers said they are using beacons today in tests or active deployment and that rate is going to double in 2015,” said Ray Pun, strategic marketing manager at Adobe Mobile Solutions. “Across industries, folks are definitely very actively testing, deploying, thinking about location technology.

“Specifically, it makes sense for in-store because we are seeing that people are using the Internet in-store and in many cases using Wi-Fi to connect,” he said.

Smartphone conversions
Other finding from the research include that 34 percent of consumers have received a marketing promotion based on their location while 21 percent were unsure.

Additionally, 53 percent noticed retargeting efforts aimed at them.

Smartphone conversion rates are much higher when retailers offer digital wallet payment options such as PayPal, Amazon Payments, Google Wallet or Apple Pay, according to the research.

With in-store integrations for mobile payments often requiring the installation of new systems, the first big impact for Apple Pay could be felt online. Cart completion rates increase by 10 percent when digital wallet payment options are available, according the new data from the Adobe Digital Index.

Digital wallets
Key findings from the research include that 23 percent of purchases on smartphones use alternative payment methods compared to 16 percent on desktop and 19 percent on tablets.

The higher use of digital wallets on smartphones is attributed to the fact that consumers find it convenient not to have to enter credit card information while on the go and they do not feel as secure entering credit card information on mobile devices.

Adobe predicts Apple Pay will soon become the default alternative payment tool for many consumers using Apple devices.

Also, mobile conversion rates are expected to increase as digital wallets become more commonplace for online shopping.

App usage growth
Another key finding is that app usage growth on phones is 70 percent compared to just 35 percent on tablets.

By operating system, iOS represents 65 percent of app launches and Android just 34 percent. The average iOS app is used twice as long as the average Android app per launch.

Other findings include that 71 percent of consumers report that they like receiving personalized ads but 20 percent think such ads are not done well enough while 30 percent feel the ads are as tailored as they need to be.

Additionally, 20 percent feel today’s personalization efforts are too intrusive while 29 percent think ads should not be personalized at all.

“We expect with the introduction of things like Apple Pay, that these payment methods will be used more and therefore, the conversion rates that retailers will see in smartphones will continue to increase,” Mr. Pun said.

“Folks are starting to become more comfortable using digital payment options, especially on smartphones,” he said.

Final Take
Chantal Tode is senior editor on Mobile Commerce Daily, New York

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