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M-commerce has great potential for marketers
Marketing News |
Businesses are constantly looking for new ways to engage with consumers and raise awareness of their products and services. Companies can use a variety of channels for brand-building purposes, including print media, TV, radio, the internet and outdoors, and increasingly, mobile solutions.
The rise of m-commerce has created a new opportunity for companies to connect with their target audience. With an increasing number of people using smartphones and tablet computers on a daily basis, the potential value of mobile marketing continues to increase. If businesses can master the art of advertising on handheld media, they can tap into a young, aspirational demographic that is ready to be shaped.
Marketers can reach consumers throughout the day, bringing promotions to them wherever they are, rather than relying on individuals to discover the brand. Advertisers can also target groups more effectively with tailored content, helping to raise response rates. Ultimately this can result in a significant boost to revenue, as well as reducing costs.
According to figures from Barclays Corporate, consumers will spend almost £20 billion per year via mobile devices by 2021, compared to just £1.3 billion today. This is a major growth area, and successful mobile advertising can help gain a share of this industry revenue. The firm expects food and groceries to remain the largest purchases for consumers 'on the go', with electrical goods coming in second place.
Personal care, which includes hair care, beauty, dental and baby products, are expected to enjoy the strongest growth over the decade, with m-commerce sales rising from £63 million in 2011 to £3.1 billion within a decade. Mobile advertising will help drive growth in this area, as marketers reach consumers on their handheld devices, and then encourage purchases through the same platform.
Richard Lowe, head of retail and wholesale at Barclays Corporate, commented that m-commerce is still a relatively niche channel, currently accounting for just 0.5 per cent of total retail spend. "However, with little new shop space coming into play, the real growth opportunities lie on the virtual high street and those retailers which are prepared to invest will be at a significant advantage to the competition," he added.
Barclays Corporate forecast that, over the next five years, m-commerce will enjoy growth of 55 percent, the fastest of any retail channel. This compares to expected growth of eight per cent for online sales and 1.6 per cent for in-store sales. The growth of mobile sales will, in part, be driven by increases in smartphone penetration and technological improvements such as 4G and Near Field Communications, the firm stated.
Mr Lowe said stores have been "the mainstay of retail" for centuries and this is not about to change, particularly for those purchases which require a high-level of customer interaction such as clothing and footwear. "The real value to be found in m-commerce is through its role as a multi-channel integrator and the indirect sales boost it generates by connecting physical stores with online," he added.
But in order for consumers to engage with products and services using mobile technology, they need to be aware of them. This is where mobile advertising has a crucial role to play in the coming months and years.
Posted by Stephen Wilkinson
Marketing Recruitment Agency - 12.5% Fee / 3 Month, 100% Rebate - Transparent Recruitment Fees Since 1999.
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