Retail executives are expecting to make more investments in mobile marketing this year than in prior years while nearly 40 percent of executives surveyed in a recent poll expect mobile to garner 50 t0 1o0 percent of their company’s marketing spend.
The survey, conducted by RetailMeNot Inc., involved more than 200 retail marketing executives who are authorized to make spending decisions on marketing. The survey was a centerpiece of a study released today by the company titled “The Rise of Mobile Marketing Spend in Retail.”
In the report, 87 percent of those polled said they expect to “invest more in mobile marketing in 2016.”
“Marketing spend is set to increase across all channels, but mobile leads the pack,” the researchers noted. “Retail decision-makers are poised to increase marketing spend across both online and offline channels, with mobile budgets set to grow the most.”
Of those surveyed, 73 percent plan to increase non-mobile digital advertising spend while 62 percent expect to increase their offline advertising spend, which would include media channels such as TV, catalogs and print newspapers.
Marissa Tarleton, chief marketing officer of North America at RetailMeNot, said leaders in retail marketing “have been increasingly investing more in digital media through mobile channels, and attribution capabilities are helping them to better understand the real net positive impact of these investments.”
Other notable results from the survey showed that 76 percent of respondents “believe that while they are getting some value out of mobile marketing.” However, the researchers noted that there is “still considerable upside potential for increased returns on their investments.”
“The majority of those surveyed, though, feel that their efforts are on pace with other middle-of-the-pack industry retailers at 53 percent,” the researchers said adding that “to stand out from the crowd, nearly 4 in 10, or 39 percent of retailers are ready to make mobile a major component of their budget, at 50 to 100 percent of their budgets.”
The increase in marketing spend comes at a time when retailers are relying on their mobile marketers to drive mobile as well as in-store traffic, the researchers said noting that 74 percent of retailers’ “mobile marketing teams surveyed in 2016 reported being responsible for digital promotions that drive both online and in-store sales, compared to just 64 percent in 2014.”
“The findings of this study corroborate what we are hearing from our retail partners, including how many traditional marketers are struggling to make the shift as fast as possible while working to measure and understand the impact of these investments,” Tarleton said.