How mobile will enrich retail?

Chris Childs, Managing Director of TabMo in the UK, notes that mobile advertising occupies a worthy place in the promotion of the retail segment.

Now you will not surprise anyone with the opportunity to make a call without being tied to a place. Mobile phones have become an integral part of modern realities. Our life revolves around mobile devices, we are used to being in touch all the time, and the inability to be online gives us discomfort.
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Devotion to the device

According to Flurry Analytics , the time spent in mobile devices increased by 117%, while in the UK 16% of the adult population uses only the mobile Internet on smartphones or tablets.

This trend could not miss advertisers. A recent study by Digital Ad Spend, conducted by PwC, revealed that £ 8.61 billion was spent on digital advertising last year, including advertising on mobile devices, which was 30.5% and showed the highest level of growth. Concentration on mobile has already given its positive results. For example, in the UK, online sales grew by 11% in March of this year, the number of transactions on smartphones doubled (IMRG Capgemini's eRetail Sales Index).

Gift for retailers

It is easy to guess why the mobile has become a real gift for the retail segment. Constantly being in pockets / bags, mobile devices allow companies to constantly influence user purchases through push notifications of applications, advertising, newsletters and other marketing channels. Now making a few small purchases during the day is quite a common story.

In addition, mobile advertising allows you to combine location data with context. On the way to work, we are greeted by a mass of advertisements that in one way or another influence further purchase decisions. Mobile brings this effect to a new level.

Creative - the path to success

Advertisers should not forget about different target groups of the public and, accordingly, about different creative solutions for each of them. For example, a travel agency can launch an advertising campaign about tennis games on weekends, family holidays, or as an option for leisure during a business trip - and each ad must correspond to a specific audience.

Likewise with the retail trade in clothing - advertisements should be created along several lines - clothing for men / women, sportswear, underwear, etc. Variations can be many - for example, to promote raincoats and rubber boots during the rainy season in St. Petersburg or hats and sunglasses - with the onset of heat in Sochi.

Mobile is time for yourself

Mobile devices - personal user space. This understanding suggests several important points. Advertisements broadcast on mobile devices are perceived as personal and do not carry a tough negative component.

37% expect to receive the most relevant advertisements on their mobile devices, while 40% of users want creative advertising.

However, it is still a double-edged sword. 51% of respondents perceive advertising more intrusive if it is broadcast on smartphones and not on desktops or tablets. Moreover, almost half of the people surveyed by Quantcast (data from the “Mobile & Me - The Remodelled” report) said that inappropriate advertisements only create a negative impression of the brand.

To summarize, mobile advertising can be effective only in the case of a competent marketing strategy. And brands have many opportunities to use this channel to the maximum.

Mobile needs money

According to Forrester's 2016 Mobile and App Marketing Trends, only 20% of marketers are satisfied with the level of mobile channel financing in their companies. Often, a mobile is considered as an addition to marketing activity, and not as an important part of the marketing mix, which brings tangible results with a combination of methods and tools. And while mobile advertising will be treated as a secondary channel, it will not be able to unleash its full potential .

Curse of the “last click”

One of the difficulties in measuring the feasibility of investing in mobile advertising is relying on the “last click” (this is currently the best available method of measurement). For example, a retailer can spend a “round” amount on a mobile advertising campaign and at the same time does not determine why the buyer visited the store, thanks to mobile ads or after seeing a TV advertisement. And if the retailer cannot clearly measure the effectiveness of each advertising channel, it is difficult for him to justify significant advertising expenses, including for a mobile. It is for this reason that when it comes to the distribution of the budget for advertising, traditional TV-type channels and printed materials are given priority.

Mobile ads work. The confirmation of these words can, at a minimum, be an advertising campaign that TabMo conducted for a major music retailer. In a short period, the company allocated the entire advertising budget to mobile only activity. Such a seemingly risky decision led to an increase in sales by key positions.

Mobile will still show itself

Mobile is still considered a “newcomer” to digital marketing. But in order for companies to move to a new level, they need to stop viewing mobile advertising as a crazy child or teenager. This is a fully conscious adult, who, judging by the results of the research, can bring significant profits to retail companies. As the mobile market grows, marketers should use the medium as fully and efficiently as possible. Advertisements should involve users, and not cause them a negative for brands. On the way to this are three main components: good creatives, precise targeting and detailed post-measurement of results.

Total:

To effectively use mobile advertising, it is not necessary to adhere to a strategy exclusively mobile first. Each advertising channel contributes to the promotion of goods, and most importantly - to catch the balance in the allocation of the budget.

And how is the budget distributed in your company? What share is spent on mobile / traditional advertising channels? Share your answers in the survey and comments.



BYYD • Mobile Advertising Platform