14 DAY TRIAL // The mobile retail market is expected to see impressive growth in the near future, courtesy of one-to-one marketing and the fast adoption of smartphones, a recent report from Juniper Research shows. According to the research firm, the mobile retail market is expected to reach $12 billion by 2014, driven by the aforementioned key factors and others more.
According to the Juniper Research report, the mobile retail sector, which includes mobile coupon redemption values, smart poster fees and advertising expenditure, is expected to be dominated by coupons in the beginning. However, the mobile advertising expenditure should exceed coupon redemption values by 2013, the research firm adds.
At the same time, the report notes that the retailing industry and brands are increasingly implementing the mobile device into the retail cycle. Howard Wilcox, report co-author, states, “Retailers have recognized 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.”
Other findings of the report include: - 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. - Usage of the mobile in a live shopping situation can be particularly effective - for example for product price comparisons - 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.
Juniper Research also reports that users are also offered increased possibilities to shop using their mobile phones. There are a wide range of factors that offer retailers, brands and merchants the possibility to communicate with customers, including the availability of mobile broadband networks, the growth of mobile web, or the increased usage of SMS.