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Mobile has higher redemption rates and lower costs

Global brand and retail spend on digital marketing activities will reach US$200 billion this year, up by 15% on 2014's levels, according to a market survey from Juniper Research.

The survey, entitled 'Digital Retail Marketing: Loyalty, Promotions, Coupons & Advertising 2015-2019', observed that nearly 70% 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 capabilities to enable timely, targeted, personalised campaigns, to enhance customer engagement and to analyse the relative success of campaigns. It noted 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 highlighted the potential for using predictive analytics on the wealth of online data generated through consumer activities on websites and social media. It observed that predictive analytics was 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 claimed 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 are either related or unrelated.

It also stressed 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."

Sources: Juniper Research / The Marketing Factbook.
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Have you seen Easy Ways To Make Marketing Pay?

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