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Home » Digital Retail Marketing Spend to Exceed $360Bn By 2020

Digital Retail Marketing Spend to Exceed $360Bn By 2020

May 26, 2016
Juniper Research

The study found that whilst 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 BLE (Bluetooth Low Energy, or Bluetooth Smart) signals, use transmitters to push pertinent content and information to devices which have their Bluetooth enabled. Several leading U.S. retailers have now deployed beacon networks, with Macy’s having installed more than 4,000 in its stores.

Significant opportunity exists: Juniper forecasts that almost 1.6 billion coupons will be delivered annually to consumers via beacon technology by 2020. This is up from just 11 million this year, as retailers seek to develop proximity marketing campaigns in and around their stores.

Research author Lauren Foye said: “Beacons are set to provide a boost to retailers, as we see major players promote in-store offers and deals though mobile devices, targeting consumers whilst they are shopping. Coupled with loyalty schemes and rewards, retailers have clear potential to monetise those setting foot in their stores, aiding in promoting more traditional bricks and mortar retail.”

Juniper also believes that there is significant potential for “out of home” proximity advertising, with beacons starting to be rolled out on buses, tubes and taxis, targeting locations which see high footfall.

From Personalisation to Hyper-personalisation
Successful brands will be those that capitalise on the wealth of data available on consumer habits and interests, leading to the implementation of targeted advertising.

However, taking this one step further, Juniper observes a shift to hyper-personalisation: where companies effectively create individualised engagement across all brand offers, thereby reinforcing the scale of customer loyalty. A number of retailers already utilise this method; Netflix, for example, stated that recommendations made via hyper-personalisation data accounted for 60 percent of its rentals in 2014.

Other key findings:

• Over 80% of all coupons issued will be on mobile devices by 2020, as opposed to under 20% on PCs & laptops.

• The impact of ad blocking technologies will see the equivalent of almost 10% of global digital advertising revenues lost by 2020.

Juniper Research provides research and analytical services to the global high-tech communications sector, providing consultancy, analyst reports and industry commentary.

Source: Juniper Research

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KEYWORDS consumer packaged goods E-Commerce/Omni-Channel High-Tech/Electronics Retail
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