New data from Juniper Research has found that spending on digital retail marketing is set to increase from $174 billion in 2015, to $362.1 billion by 2020.
Digital retail marketing spend, 2015-2020 (Million $)
Source: Juniper Research, May 2016
According to Juniper’s latest research, Digital Retail Marketing, Coupons, Advertising & Consumer Engagement 2015-2020, by Lauren Foye, while the digital retail marketing industry will continue to be dominated by advertising revenues, coupon contributions will see strong growth, driven in part by the rise of Bluetooth beacons.
Beacons, which find the location of a smart device using Bluetooth Low Energy, or Bluetooth Smart signals, use transmitters to push pertinent content and information to devices which have their Bluetooth enabled. Several leading US retailers have now deployed beacon networks, with Macy’s having installed more than 4,000 in its stores, says the report.
The report says that there is significant potential for ‘out of home’ proximity advertising as well, with beacons starting to be rolled-out on buses, tubes and taxis, targeting locations which see high footfall.
Almost 1.6 billion coupons will be delivered annually to consumers via beacon technology by 2020, forecasts Jupiter, up from just 11 million this year, as retailers seek to develop proximity marketing campaigns in and around their stores, says the report.
Lauren Foye, research author, added “… beacons… provide a boost to retailers… promoting in store offers and deals… targeting consumers though mobile devices while… shopping… promoting more traditional bricks and mortar retail… ”
Taking this one step further, the study found a shift to hyper-personalization, where companies effectively create individualized engagement across all brand offers, reinforcing the scale of customer loyalty. A number of retailers already utilize this method; Netflix, for example, stated that recommendations made via hyper-personalization data accounted for 60% of its rentals in 2014.
Concluding, the report says that other key findings include:
For additional information from Jupiter Research, please visit here for download access to Digital Retail Marketing ~ Beacons Signal the Future.