Mobile Offers Are Shaping the Marketing Landscape: Report
By Rose Anthony
Mobile offers are more popular than ever before, with 104 million mobile coupon users in the US alone, says a report from Koupon Media.
This growth is happening between the shifting retail landscape and more digital channels than ever. Marketers are exploring new, innovative ways to deliver personalized, data-driven, omni-channel experiences that bridge the gap from online to in-store sales. As a result, Koupon Media says major brands and retailers are fundamentally changing the way they think about marketing to consumers.
Here are the key insights and trends that are shaping the retail landscape and the mobile offer industry in 2017:
Cross-Channel Distribution Drives Success: The number of digital channels used to deliver an offer has an exponential impact on its success. Campaigns that use as many as seven or more channels see an average of more than 200 million offer views. Koupon Media found that offers delivered through multiple channels like mobile app, social, online ads and more had an exponential impact on the overall reach and success of an offer campaign.
Offers Drive Ad Engagement by 200 percent: Studies show that customers are more likely to engage with ads that promote a mobile offer. For advertisers, mobile offers have introduced an entirely new way to boost performance of campaigns. Last year there were a 14 percent in clicks on a Facebook past that included a call to action like an offer, and 49 percent of customers say they prefer online ads to take them to a mobile coupon page.
Data-Driven Mobile Offers: Leveraging data to deliver more targeted marketing messages has always been a priority for marketers. New studies show how important this is for mobile offers, too. Forty-three percent of advertisers spent more than half of their ad budget targeting a specific audience; 17 percent increased purchase likelihood for customers that receive a targeted marketing message; there was a 36 percent increase in redemption rate if an offer was targeted to reach a specific audience.
Small Format Retail Outpacing Larger Retail: In 2015, small format retail stores in the drug, dollar and convenience channels outgrew larger format stores such as Target and Walmart by almost 400 percent. A shift to online shopping, paired with changing demographics, is driving growth in small format stores. As the industry takes notice, mobile offers are emerging as the go-to solution for marketing to customers shopping in smaller stores.
“Marketers often want to know whether their product is a good fit for a mobile offer campaign,” stated the report. “The answer of course is that it depends. A lot can determine the success of a campaign from the level of discount to retailer participation and over all distribution. Aside from these factors, there are some product categories that seem to naturally outperform peers in mobile offer campaigns.”
As an example, the report lists offers for food and beverage products because they generally provide a healthy balance of reach and engagement.
“The type or structure of an offer remains one of most important aspects to launching a successful campaign,” the report stated. “Free campaigns continue to perform well above peers, while campaigns that require a customer to buy something first through a ‘buy-one-get-one’ structure have slightly less redemption rates.”