REPORT: People Are Shopping Online, But They’re Buying Things In Person
Need to locate the closest electronics store, or find out who carries those black pants in a smaller size? Chances are, you’ll use your phone to look it up. These days, more and more people are using their smartphones to make retail decisions on the go, and marketers are taking notice.
In xAd’s annual report “Mobile’s Big Impact on Retail,” the mobile-location ad platform company examined how mobile commerce is changing the face of the retail industry. Mobile contributed to over $200 billion in offline and online sales in 2013. xAd found that 77% of smartphone-related transactions are actually happening within the store.
What does that mean for retail marketers? People are searching for things online, but they’re buying them in person. That’s why many retail marketers are relying on techniques like geo-targeting — targeting mobile ads to consumers based on their location — to draw consumers to brick-and-mortar stores.
Marketers are also shifting away from measuring ad success by how often consumers click on links. Instead, they’re studying what people do after that. For example, xAd discovered that after clicking on a link, people are most likely to look up directions or maps to the location. Information like this shows retailers how powerful mobile can be as an indicator of consumer behavior.
xAd’s white paper provides some key strategies on how retailers are using location-based mobile advertising to get customers into their stores. These include specific forms of geo-targeting such as:
- Loyalty Geo-Fencing: reaching target consumers who are in and around a specific retailer’s location.
- Competitive Geo-Conquesting: targeting customers while they are in and around a competitor’s retail location.
- Audience Targeting: targeting customers based on where they live, how much they make, and how much they’ve spent in the past.