Big data – in the form of predictive analytics – and consumers’ continued migration to tablets and mobile phones are prompting more brands to move money into digital advertising.
A new study from Juniper Research shows that global brand and retail spend on digital marketing activities will reach $200 billion this year, up 15% over 2014.
Nearly 70% of the net increase on digital marketing spend this year will focus on mobile and tablet devices, as brand strategies evolve to deliver campaigns within an omnichannel digital environment.
Juniper’s Digital Retail Marketing: Loyalty, Promotions, Coupons & Advertising 2015-2019 also found that brands are turning to smartphones and tablets because the devices enable timely, targeted, personalized campaigns that enhance customer engagement. The connected devices also allow brands and retailers to analyze the relative success of campaigns.
In the case of mobile coupons, for example, redemption rates were typically significantly higher and costs per redemption much lower than for traditional mechanisms such as direct mail or newspaper coupons.
Using data collected from consumer activities and social media also enables brands and retailers to use predictive analytics, increasingly in real time, enabling them to tailor advertising and product promotion while a customer is browsing their websites.
Juniper suggests brands need to develop marketing strategies to cater to an audience that increasingly uses multiple screens simultaneously for digital activities that are either related or unrelated, so-called media meshing or media stacking.
"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 personalized promotions,” said Windsor Holden, who authored the research.
Holden stressed that it was important to maximize the potential of digital media throughout the entire retail lifecycle rather than purely to drive product awareness.
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