The mobile explosion has many consumers immersing themselves in the technology. It’s no wonder various CPG behemoths are getting vested in mobile marketing. According to The Consumer Packaged Goods Industry’s Guide to Mobile Advertising, released by Microsoft advertising, 91 percent of the U.S. population today carries a mobile phone with one in four subscribers accessing the mobile web. By the third quarter of 2011, 49 percent of U.S. mobile subscribers will have a smartphone. Smartphones are transforming the shopping experience and emerging as the primary enabler of consumer shopping engagements.
In today’s mobile world, where everyone is constantly on the move, more and more shoppers are turning to their phones to research and compare product information and prices, find store locations and hours, locate discount coupons and special offers as well as make mobile purchases. Marketers have tapped into this demand and have turned it into an opportunity to transform the entire consumer engagement model by utilizing mobile technology to make marketing more context-aware, timely and personalized.
CPG companies, likewise, are currently exploring various mobile initiatives, including mobile websites, apps, text-messaging, search advertisements, banners and click-to-call functionality on their mobile sites. Some retailers and manufacturers have been very aggressive about mobile marketing while others are trying it on a brand by brand basis. CPG brands, such as CoverGirl, Tylenol and Cottonelle, have successfully used the mobile channel to build brand awareness and turn purchase intent into sales with their target audience.
Lastly, the ability to better track ROI of mobile campaigns is encouraging greater adoption of mobile marketing by various companies. According to digital marketing research company, Insight Express, mobile media outperforms online media in ability to drive purchase intent (170 percent increase) and brand favorability (85 percent increase) in the CPG sector. Greater acceptance of mobile initiatives by customers is also motivating CPG brands to increase their mobile marketing budgets. Microsoft also reported that mobile advertising spend is expected to reach $1.56 billion in 2013, up from $416 million in 2009.
Game-changing innovations will continue to surface in the retail world, generating additional opportunities for retailers and manufacturers to increase consumer loyalty, build sales and create a competitive advantage. In the long run, only the companies which are determined to be forward looking and embrace these trends will be able to sustain in this competitive landscape.