There’s a major disparity between where companies spend their marketing money and consumers spend their leisure time.
That was the message from Vaibhav Vohra, senior director/solution owner, of SAP during a presentation at the WWD Digital Forum.
In 2010, he said, consumers spent 40.9 percent of their time watching television and 3.7 percent of their time on mobile devices. But by 2014, that number had shifted to 36.5 percent of their time spent watching TV and 23.3 percent of their time using mobile.
In order to better align with consumer habits, businesses need to find a way to speak directly to the shopper. “You want to target an audience of one,” he said.
This strategy can help companies break through the clutter that is already clogging cyberspace.
But it’s not easy.
Vohra revealed that only 1 percent of branded apps have gotten more than 1 million downloads. Only 19 percent get more than 1,000 downloads and 80 percent get less than 1,000.
Instead, the “silver bullet” that is needed today revolves around getting close to customers and understanding their individual shopping habits.
Shoppers today are checking prices and getting reviews while they’re in the aisles, spending an average of four minutes on their mobile devices while in stores.
To most effectively market to these people, retailers must work hard to identify who they are, where they live, their interests and income and where they go after they leave their store.
“The future of digital marketing is putting footfalls on maps,” he said.
Knowing all these details can also help retailers with their real estate planning as their ponder their growth.
This knowledge will also create a fundamental shift in marketing methods. Instead of just continuing to work with ad agencies to try and gauge how effective ads are, retailers and brands can now have that information at their fingertips by evaluating consumer data.
“Understand the audience of many so that you can segment to the audience of one,” he said.