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Mobile retail marketing spend to reach $15B by 2016: study

November 9, 2011

Retailers are stepping up their mobile commerce efforts

Mobile retail marketing is predicted to rake in $15 billion in 2012, a 50 percent growth from 2011, according to a study from Juniper Research.

The growth in retailer mobile initiatives will be initiated by mobile coupons, deals and rewards. The study also looked at particular mobile channels that will be popular for 2012 and how marketers can grow existing mobile efforts.

“In 2012, SMS will be the hot channel for mobile coupons, and mobile Internet for advertising,” said David Snow, senior analyst at Juniper Research.

“In both channels mobile apps are on the rise but the “an app is not a strategy” applies – they will have their day later,” he said.

Juniper Research is a research and analytics firm that focuses on global technology trends.

Clicks and bricks
The purpose of mobile for retailers is to bridge the digital world with in-store traffic, but according to the Juniper study, it is getting more difficult to tell the difference between online retailers and bricks-and-mortar stores.

This is partly due to the increase in mobile payments, and the study predicts rapid growth with mobile point-of-sale technology and NFC innovations in 2012.

In particular, NFC will play an important role with NFC-embedded posters and as a digital wallet.

Additionally, retailers will see a rise in programs that tie in with rewards and loyalty programs.

For example, a recent study from mobile solution company Hipcricket found that 33 percent of consumers are interested in joining a mobile loyalty program.

In particular, mobile coupons made up 50 percent of mobile retail marketing spend in 2011 and are projected to make up 75 percent of the mix in 2012.

Ad on mobile
The study also looked at how mobile retail spend will break down between countries.

China and the far East are expected to receive 55 percent of the mobile retail marketing spend in 2012.

North America is predicted to get 18 percent of retail mobile marketing spend, and Western Europe will get 17 percent.

The rest of the spend will be divided up between central and western Europe, which will receive 2 percent, and the Indian subcontinent will receive 3 percent.

Rounding out the mix will be the rest of Asia Pacific with 2 percent of total mobile retail marketing spend, and Africa and the Middle East is 2 percent.

“Mobile marketers now have a considerable repertoire of mobile marketing channels and targeting techniques available to them to design effective retail marketing campaigns for their clients,” Mr. Snow said.

“This presents not only many opportunities, but also an increasing challenge to make the right selection for specific campaigns,” he said.

Final Take
Lauren Johnson is editorial assistant on Mobile Commerce Daily, New York

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