Spend on digital retail marketing is set to increase from $174bn (£120bn) in 2015, to $362.1bn (£248bn) by 2020, according to a new study which predicts
Juniper Research’s ‘Digital Retail Marketing: Coupons, Advertising & Consumer Engagement 2016-2020’ report found that while the digital retail marketing industry will continue to be dominated by ad revenues, coupon contributions will see strong growth, driven in part by the rise of Bluetooth.
Beacons, which find the location of a smart device using Bluetooth signals, use transmitters to push pertinent content and information to devices which have their Bluetooth enabled.
The report claims significant opportunities exist, predicting that almost 1.6 billion coupons will be delivered annually to consumers via beacon technology by 2020. This is up from just 11 million this year, as retailers seek to develop proximity marketing campaigns in and around their stores.
Research author Lauren Foye added: “Beacons are set to provide a boost to retailers, as we see major players promote instore offers and deals though mobile devices, targeting consumers while they are shopping. Coupled with loyalty schemes and rewards, retailers have clear potential to monetise those setting foot in their stores, aiding in promoting more traditional bricks and mortar retail.”
Juniper also believes that there is significant potential for out of home proximity advertising, with beacons starting to be rolled-out on buses, tubes and taxis, targeting locations which see high footfall.
Successful brands will be those which capitalise on the wealth of data available on consumer habits and interests, leading to the implementation of targeted advertising, Juniper states.
However, taking this one step further, Juniper observes a shift to hyperpersonalisation: where companies effectively create bespoke, individualised engagement across all brand offers, thereby reinforcing the scale of customer loyalty.
A number of retailers already utilise this method; Netflix, for example, stated that recommendations made via hyperpersonalisation data accounted for 60% of its rentals in 2014.
Meanwhile, over 80% of all coupons issued will be on mobile devices by 2020, as opposed to under 20% on PCs and laptops.
One note of caution: the impact of ad blocking technologies will see the equivalent of almost 10% of global digital advertising revenues lost by 2020.
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