Retailers to spend 200 billion dollars on digital marketing this year

Consumers around the globe are turning to their mobile phones or tablets for their online shopping fix as brands and retailers alike spend record amounts on digital marketing. According to new research from marketing consultancy firm Juniper Research, global brands are set to spend 200 billion dollars this year on digital marketing actives, a 15 percent increase from 2014.

The firm observed that close to 70 percent of the net increase on digital marketing spend this year would be targeted to mobile and tablet devices, as more and more labels develop their online strategies to ensure a seamless omnichannel experience for consumers.

Research found the leading factors behind the move to targeted marketing via smartphones and tablets included the capabilities to offer a well-timed, personalised campaigns to enhance customer engagement and to analyse the success of campaigns.

“The beauty of mobile and online marketing channels is that they can play an active role throughout the retail lifecycle,” comments research author Dr Windsor Holden, “from product discovery to product purchase, enhancing customer value through personalised promotions.”

Research also found that with the use of mobile coupons, redemption rates were usually significantly higher and costs per redemption much lower than traditional marketing campaigns, such as newsletters or mail coupons.

Juniper Research noted that predictive analytics were increasingly being used by brands in real time, with some retailers tailoring advertisements and product promotion whilst a customer is browsing their website.