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Retail Technology, Retail technology News

Analyst: Mobile retail on the rise

Monday March 15 2010

Market to exceed $12 billion by 2014, driven by one-to-one marketing and smartphone adoption, Juniper Report finds

Market to exceed $12 billion by 2014, driven by one-to-one marketing and smartphone adoption, Juniper Report finds

 

A new report from Juniper Research has found that one-to-one marketing, allied to the rapid proliferation of smartphones, will be among the key drivers of a mobile retail market, which is anticipated to exceed $12 billion (£7.9 billion) by 2014.

 

The mobile marketing and retail strategies report found that the mobile retail sector – defined by Juniper as comprising mobile coupon redemption values, smart poster fees and advertising expenditure – would initially be dominated by coupons. However, it noted that mobile advertising expenditure would exceed coupon redemption values by 2013, as digital ad spend is increasingly transferred into the mobile space.

 

Increasingly the retailing industry and brands are becoming aware of, and implementing the mobile device into, the retail cycle. According to report co-author Howard Wilcox: “Retailers have recognised that, even ahead of their wallets, people will usually make sure they do not leave home without their mobile device. The mobile channel offers merchants the opportunity to differentiate from their competition and acquire customers that become loyal.”

 

Infrastructure development to fuel demand

 

Meanwhile, additional factors such as the growth of the mobile web, the availability of high-speed mobile broadband networks and the ever-growing usage of SMS were offering retailers, brands and merchants new opportunities to communicate with customers and potential customers and to offer the ability for them to shop by mobile.

 

The Juniper report also found that, for brands and retailers, mobile offers the ability to change campaigns quickly (for example by time of day), and crucially the ability to track the success and customer acquisition rates.

 

It also suggested the use of a mobile in a live shopping situation can be particularly effective, for product price comparisons, for example.

 

It also that, while the mobile will be an effective channel for younger users who organise their lives around their mobile phones, older demographic groups are likely to be less receptive to using their mobiles in a retail situation.