2017-02-22 | Article written by David Ismailov

How does mobile enrich retail?

No surprise it is now possible to make a call without being tied to a place. Mobile phones have become an integral part of today's realities. Our life revolves around mobile devices, we are now always in touch, and the impossibility of being online gives us discomfort.

Devotion device

According to Flurry Analytics, the time spent in mobile devices increased by 117%, while in the UK 16% of the adult population only use the internet on their smartphone or tablet.

This trend could not miss advertisers. A recent study "Digital Ad Spend", conducted by PwC, revealed that digital advertising spent £8.61 billion in 2015, including advertising on mobile devices, which amounted to 30.5% and showed the highest growth rate. Focusing on mobile already yielded positive results. For example, in the UK, online sales were up 11% in March last year and the number of transactions on smartphones doubled (IMRG Capgemini's eRetail Sales Index).

Gift for retailers

It is easy to see why mobile became a gift for the retail segment. Constantly being in the pockets/bags, mobile devices enable the company to constantly influence the purchasing decisions of users via push-notification applications, advertising, newsletter and other marketing channels. Making a couple purchases during the day is the normal thing to do.

In addition, mobile advertising allows you to combine location data with context. On the way to work we met plenty of advertisements that somehow affect the future buying decisions. Mobile transfers this to a whole new level.

Creativity - the path to success

Advertisers should not forget about the different target groups and the public. Especially the different creative approaches for each of them. For example, a travel agency can run an advertising campaign about tennis games on the weekends, on family holidays or as a leisure option during a business trip - and each ad must comply with a certain audience.

The same goes for sales of clothing - advertisements should be created in several ways - clothing for men/women, sportswear, underwear, etc. There can be a number of variations. For example, promoting raincoats and rubber boots during the rainy season in St. Petersburg, or a hat and sunglasses with the onset of summer in Sochi.

Mobile - the time for yourself

Mobile devices - the personal space of users. This understanding implies a few important points. Mobile ads are broadcasted to mobile devices, which are perceived as personal and do not carry any negativity.

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

However, it is still a double-edged sword. 51% of respondents perceive ads more persuasive if it is broadcasted on smartphones, rather than on the desktop, or tablet. Moreover, almost half of the people surveyed by Quantcast (data of the report "Mobile & Me - The Remodelled"), said that inappropriate ads only create a negative impression of the brand.

To sum everything up, mobile advertising can be effective only if the marketing strategy is competent. Brands have a lot of opportunities to use this marketing channel to the maximum.

Mobile needs money

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

The curse of the "last click"

One difficulty measuring the viability of investments in mobile advertising is the reliance on the "last click" (currently the best existing measuring method). For example, a retailer can spend a large sum on a mobile ad campaign, but will not be able to determine why the customer visited the store - was is because of the mobile ads, or after seeing a TV advertisement. If the retailer can not accurately measure the effectiveness of each advertising channel, it is difficult to justify a large ad spend, including mobile. For this reason, when it comes to the distribution of the advertising budget, the priority is placed on traditional channels such as TV and print materials.

Mobile ads are working. The confirmation of these words may be, at least, the advertising campaign, which was carried out by TabMo for a large music retailer. Within a short period of time, the company has distributed the entire advertising budget on a mobile-only campaign. This seemingly risky decision led to an increase in sales in key positions.

Mobile will show it self

Mobile is still considered a "rookie" in digital-marketing. In order for companies to go to the next level, they need to stop looking at mobile advertising as a child or a teenager. It is already a quite conscious adult who, judging from the results of different researches, can bring significant profits to retailers. Referring to mobile market growth, marketers should use the environment as efficiently as possible. Ads should get people involved, not cause them to think negatively about brands. On the way to this there are three main components: good creatives, precise targeting and detailed post-measurement.

Bottom line:

To take advantage of mobile advertising, you should not necessarily need to adhere to the strategy of “mobile first” exclusively. Each advertising channel contributes to the promotion of the goods, and the main thing is to catch the balance in the allocation of the budget.