Posts Tagged ‘mobile marketing’





Back to School Shopping and eCommerce

Posted on July 26, 2013 at 10:41 am

As the summer winds down and a new school year is on the horizon, it’s time for parents to get their children ready for another year of learning. Over the past few years, the event of “back to school” shopping has turned into a lengthy retail holiday of its own, with parents expected to spend over $26 billion dollars on back to school shopping in 2013. 54% of this spending go towards apparel (including shoes), 31% to electronics, and 15% to school supplies.

So what is the role of back to school eCommerce? Here are a few things to know…

  • Mobile and tablets are now a key component in back to school shopping – Many parents are turning to their mobile and tablet devices not only to shop online but also for comparative shopping. Budget-conscious parents often check online retailers while back to school shopping at physical stores to make sure they are getting a good deal. In fact, 37% of parents stated they will do more comparison shopping online and on mobile devices for back to school than last year.

 

  • Digital coupons are becoming more important to parents – Sometimes overlooked in the past by some parents, coupons are making a bit of a comeback. Gone is the process of scouring newspapers and circulars for coupons as modern parents have begun loading coupons directly onto their rewards cards or to be scanned on their mobile devices. Omni-channel retailers are taking note and making these promotions easy and accessible for parents, even for parents who aren’t very tech-savvy.

 

  • Back-to-school shopping is starting early – In a recent survey by the NRF, 49% of parents stated they will begin their back to school shopping at least one month before school starts, with just 22% of parents set to begin their shopping one to two weeks before school starts. Only 5% of parents will go back to school shopping the week school starts or later. With so many parents starting back to school shopping early and at different times it appears retailers can deploy multiple promotions to attract a wide array of customers to their site and stores.

 

  • Teens spend their own money on back to school – In a recent survey by Shop.org, parents expect teens to spend an average of $44 of their own money online on back to school items in 2013. Although brands should be cautious, an effective strategy for marketing to and reaching these teens can be opt-in text message marketing campaigns, which have a high open rate, especially if the text message contains a relevant coupon code or promotion.

 

  • Don’t forget about back to college students – While back to school initiatives are often targeted at parents with children of younger ages, parents of a college student actually spent $220 more last year sending their children back to college than back to school parents. Dads also tend to be the big spenders when it comes to back to college students, spending almost $250 more on average than moms. Depending on the audience and customers of a brand, a back to school marketing effort may not apply – but back to college marketing could be an applicable and successful initiative.

 

In conclusion, back to school shopping continues to evolve. Mobile and tablets are now becoming a major component for shopping online or showrooming, and parents are becoming more accustomed to digital offers and promotions. Brands should consider multiple promotions targeted at multiple customer segments as both parents and students will be making back to school purchases.  Although it may not receive the notoriety of the holiday season, back to school can be a key time of year for retailers to grow their presence and brand both online and offline.

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The Consumer Packaged Goods Industry and eCommerce

Posted on July 10, 2013 at 9:38 am

It wasn’t very long ago when ordering beauty products or household goods online was considered strange. Now, according to a recent survey by the Grocery Manufacturers Association, 40% of member companies within the association are expected to sell direct-to-consumer online in the future, up from 24% last year. As eCommerce has evolved, so have the expectations of consumers to not only find but also order products online. As a result of this, more consumer packaged goods (CPG) companies are launching eCommerce initiatives, some for the very first time, to meet the expanding needs of their consumers. Here are a few ways CPG companies are evolving to meet these needs…

  • Digital ad spending in the CPG industry is trending upward – A reason for the shift in more CPG manufacturers selling direct-to-consumer through eCommerce sites is the increased digital ad budgets of major CPG brands. More consumers are clicking on digital ads, resulting in the need for a digital location for these ads to click through to. In fact, according to eMarketer, U.S. CPG companies are expected to spend $5.3 billion on digital ads by 2017, experiencing a double-digit growth percentage over the next 5 years.

 

  • Consumers have become more receptive to e-mails from CPG manufacturers – Even over the past 12 months, consumers have become more open to e-mail marketing around CPG brands and their products. According to Experian, the open rate for CPG-related e-mails has increased by 21% from 2012 and the amount of eCommerce revenue directly tied to CPG brand e-mails has increased by 15%. Additionally, both the bounce rate (down 31%) and unsubscribe rate (down 18%) have declined significantly for CPG brands over the past year.

 

  • CPG manufacturers are using mobile to reach younger consumers – With the evolution of mobile technology, more CPG brands are looking to utilize mobile to reach a younger audience. The average consumer who engages with CPG content on mobile devices is led by females (53%) and approximately half of consumers engaging with mobile CPG content are between the ages of 25 and 44. While traditional marketing methods continue to work well for older consumers, this “middle-age” demographic is becoming accustomed to acquiring information when and how they want to on their mobile devices. This demographic is also becoming more likely to engage in mobile commerce instead of using their mobile devices only for product information or showrooming.

 

  • Some CPG manufacturers still value product awareness over digital transactions – Some CPG manufacturers are unique from many traditional online retailers in the sense that most of their product sales come from third-party stores, both online and offline. Product awareness and communication has traditionally been vital to the success of CPG brands, which has resulted in some CPG brands launching “micro-sites” focused on eCommerce as a way to get more information and learn about their consumers. While these sites may not be a pillar of business for CPG manufacturers, it creates an opportunity for CPG companies to cater towards tech-savvy consumers and maximize their marketing efforts by expanding their audience (e-mail, social media, etc.) directly through information obtained via eCommerce transactions.

 

 

In conclusion, the CPG and eCommerce industries have a unique and evolving relationship. While it may be several years until some CPG brands see online sales as a major contributor to their bottom line, the information and experience gained from having an eCommerce site has the potential to become invaluable. As CPG manufacturers look at their analytics and towards the future, it’s becoming more and more apparent that expanding their digital footprint into the world of eCommerce could be vital to the success of some CPG brands moving forward.

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4 Things to Know About the Mobile Ad Industry

Posted on February 8, 2013 at 10:30 am


Mobile Ad Example

Many online retailers are still attempting to fully understand the concepts and capabilities mobile devices bring to their industry. With the mobile landscape ever-changing, mobile advertising has been at the forefront of growth within the retail industry. Although 9 out of 10 online retailers have a mobile strategy, according to Forrester less than half of retailers currently use mobile display ads, a percentage which will likely increase in the coming years.

With both the digital and traditional advertising industries in a constant state of change, here are four things to know about the mobile ad industry…
1) The mobile ad industry is growing around the world – Few industries are growing at the same speed as the mobile ad industry.  According to Gartner, mobile ad revenue around the world is expected to increase to $11.4 billion this year, an 18.8% increase from last year ($9.6 billion) - last year the U.S. led all countries in mobile ad revenue with over $2 billion spent. Gartner also forecasts that global ad revenue from mobile devices will reach $24.5 billion by the end of 2016, almost three times the revenue generated last year. (more…)

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