Mobile Targeting for Retail: Capitalizing on Real-Time Data
The back-to-school season is winding down and retailers are now gearing up for the holiday season. As they determine which strategies will provide the best advantage, it’s clear they must show an aptitude in one area to be truly successful: mobile marketing.
Retailers must understand that mobile marketing isn’t just a competitive advantage anymore, it’s a requirement.
According to a comScore study, mobile platform devices such as tablets and smartphones have found to exclusively bring in one out of every three monthly visitors to the average digital retailer website. In fact for many consumers, it’s the only channel through which they engage with a retail brand. If retailers aren’t adequately set up for mobile applications, they could be losing one-third of their potential customers.
Although mobile commerce provides immense opportunities for retailers, it’s imperative they still know their target customers and how those customers prefer to engage with their mobile devices. Yet, these consumers will still be out on the roads this holiday season, pounding the retail pavement searching for the best gifts and the best deals. Retailers can help direct this on-the-go search by not only optimizing their mobile sites, but by using location-based mobile advertising.
Location-based mobile advertising is growing quickly as retailers are delivering influential call-to-action messages through deals, offers, specials and other custom content. Real-time location data has provided them with tools needed to target customers while they are on-the-go. Verve Mobile revealed in a past study that campaigns using targeting applications such as geoaware and geofencing more than doubled from 17% in 2011 to 36% in 2012, and that these location-based campaigns were two times more effective than those not using them. These campaigns allowed retailers to display mobile advertisements while customers were close to a certain location or within a predefined area in order to drive traffic to a specific store and increase conversions.
If companies are looking to test possible mobile marketing campaigns, the time to do so is now. Compared to traditional media sources, mobile advertising is relatively low, and has been generally more cost effective than desktop advertising. However, this will inevitably change as mobile usage overtakes desktop. Google announced earlier this year that the low expense of mobile advertising won’t last long, and may ultimately overtake desktop as a revenue generator. Facebook as well claims the cost of mobile ads is more than desktop, and will look to reverse this by charging more money for its mobile ad solutions.
As retailers continue to explore and implement mobile marketing solutions to drive foot traffic to their stores, they must be set up with the best tools to do so. ShopperTrak provides people counting technology that enables retailers to accurately measure and assess the effectiveness of their location-based campaigns. Using our in-store analytics allows them to accurately discern in real-time which elements of the campaign are contributing to its success in order to optimize the best decisions.