retail

Retailers Plow Spending Into Social, Mobile

The nation’s biggest retailers upped their bets on both social media and mobile marketing this holiday season, according to consulting company BDO.

In the latest findings from its 2014 Retail Compass Survey of CMOs, it reports that retailers are spending more on holiday marketing, with budgets inching up 1.1%. (Last year, they reported a small decline.) And 49% of the 100 retailing CMOs it surveyed used mobile in some component of holiday strategy, compared with just 38% last year.

On average, those who are using mobile are increased their spending to 14% of the total holiday budget, up from 6% in 2012. And social got an even bigger boost, with 84% creating campaigns for various social media platforms. Social now accounts for 19% of all marketing efforts, up from 14% in 2013. 

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“More retailers are waking up and investing in mobile, and this year really signals a turning point in how they are vying for consumers’ attention during the peak holiday season,” says Natalie Kotlyar, partner in the Retail and Consumer Products Practice at BDO, in the report. “Mobile engagement is quickly becoming table stakes when it comes to winning over new customers and converting sales in November and December.”

About 76% are running Facebook campaigns, while Twitter was second-most popular among retailers, with 27% using that platforms.

The survey also finds that — thanks to the highly publicized breaches at such chains as Target and the Home Depot — customer cybersecurity is keeping them up at night, with 17% of the CMOs calling it their top concern. (Last year at this time, only 2% were that worried.) And instead of feeling the industry has become safer as a result of those attacks, 34% expect to see an increase in such events.

Of those who say they are changing their promotional strategies to even out the shopping experience across all channels — 25% of  the total — 100% say they now offer prices that are consistent in all channels, 85% are using what they think are consistent promotional strategies and 86% are expanding delivery options.

1 comment about "Retailers Plow Spending Into Social, Mobile".
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  1. Will Peters from AddShoppers, December 4, 2014 at 10:30 a.m.

    Great Article Sarah. Thanks for posting. With mobile/social becoming a leader in the omnichannel where do you see the internet of things plays in regards to marketing strategies? I believe there will be a fine line between intrusion and engagement. :)

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