Mobile ads that utilize GPS targeting allows for increased relevancy, with customers more likely to click a mobile ad applicable to their location.
Mobile can and should be used to increase in-store sales and become part of the traditional marketing mix, according to a report from mobile marketing agency Fetch, which found 66 percent of shoppers surveyed would be driven in-store by a mobile ad coupon.
The survey, which was conducted among more than 300 U.S. adults ages 18–60 in order to uncover the impact of mobile devices on brick-and-mortar retail, found although mobile advertising is still in its infancy, one in four Americans has visited a store as a result of receiving a mobile ad.
Coupons remain a key tool for marketers, with 63 percent of smartphone owners saying they are more likely to click on a mobile ad that offers a coupon to a nearby store.
Mobile ads that utilize GPS targeting allows for increased relevancy, with 45 percent more likely to click on a mobile ad that is applicable to their location.
Users are also increasingly open to receiving targeted advertisements, with 54 percent declaring that it is useful to receive mobile ads based on their smartphone’s product search history.
This finding indicates relevancy is the key to success with mobile advertising, as targeted ads based on location and purchasing history have proven to be more effective when driving users to shop in-store.
"Some retailers are still wary of the mobile revolution as they deem it to have a negative affect on their brick-and-mortar retail sales, but our study concludes that when retailers embrace mobile, they can reap the benefits," Guillaume Lelait, vice president of of North America for Fetch, said in a statement. "Mobile devices are a means to connect and stay engaged with consumers during the entire shopping process, from pre-store to in-store to post-store experiences."
More than half (54 percent) of survey respondents said they would like to receive push notifications about current in-store promotions, while 65 percent would appreciate mobile coupons being delivered when they are in-store.
Nearly two-thirds (65 percent) said that they appreciate mobile ads delivered to their smartphone while they are in the appropriate store, with 61 percent admitting that a mobile ad including a coupon would motivate them to make an in-store purchase.
In addition, the survey indicated management of the post-store experience in order to encourage subsequent visits is crucial for retailers looking to build brand loyalty with their customers.
Social media is a key engagement platform as 42 percent of consumers have become interested in brands based on a social media post, with 26 percent saying they post on social media platforms about brands they purchase from, the survey found.
"Once a consumer leaves a store, the mobile engagement does not stop there, as building a post-store experience and remaining engaged with users is crucial to building brand loyalty," Lelait continued. "Retailers can build long-lasting relationships with consumers through retargeting, loyalty programs, social media campaigns and a strong mobile customer service."