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The Mobile Revolution

Sangita RaySangita Ray

Posted on Friday, September 23rd, 2011

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.

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3 Responses for "The Mobile Revolution"

  1. Donna Sutton September 23rd, 2011 at 10:11 PM

    The apps available for the shopper today are plentiful and when you are looking for the right one to help you with your grocery shopping it can be overwhelming. But just like shopping, if you take the time to test and compare, you’ll find they are exactly what they say they are – “personal assistants”.

    The shopping list apps are a great way to build your shopping list simply by scanning in barcodes and they help keep your pantry stocked so you never run out of anything! They can save you a ton of time when it comes to searching for the right store for the best price and deal because they will actually search online for the best price and store for the items you are shopping for! They will even search for coupons/offers online!

    You can even find apps that will sync with your room-mate or spouse’s phone so you can divide and conquer the shopping list, and later you can run analysis on your shopping list items to see how you are doing from a budget standpoint, or perhaps you need to see what types of groceries you spend the most of your money on (um, like junk food and you need to cut back…). The sky’s the limit in my opinion.

    Technology is coming at us so fast and we have to keep up. The newest thing I’ve noticed is the QRC – or Quick Response Code. A square block “barcode” printed on packages by manufacturers that is meant to provide product details, education or offers or deals to the consumer. When you scan it with your smartphone – provided you have the app – it will either provide you with some text, or take you to a web-site to give you information. This isn’t widely used yet, but it’s coming to a product near you soon!

    I can’t wait until my smartphone downloads ALL of my frequent shopper cards (you know, those 20 or 30 plastic cards in your purse or wallet), and all of my (paper) coupons and then I want to pay at the register with it! Let’s DO IT! Thanks for a great topic and article Sangita!

  2. Sangita Ray September 26th, 2011 at 2:05 PM

    Absolutely Donna. Shopping and specifically bargain hunting has become so much easier with these great shopping apps. I no longer have to run from store to store comparing prices, or wonder if the hot deal I am looking at might not be as hot as the one offered across the street. And most of these apps are free too. Two of my favorites are “Shop Nearby” and “Coupon Sherpa”. Using Shop Nearby, you can find out which stores near you carry the products you’re looking for and compare prices. Coupon Sherpa helps you find coupons while on the go. Just show the coupon on your phone and it’ll scan at the register!

  3. Donna Sutton September 26th, 2011 at 6:43 PM

    I just came across a very cool app that takes the “personal” shopping experience to yet another level. It’s called “Honest Label” and this allows you to scan a barcode and it will tell you the precise information and nutrition information, accurate serving size of the product!

    You can even customize the app to send a warning flag to you in the event an item has an ingredient in it that you are not supposed to have in your diet! How great is that?