IBM acquires mobile commerce and marketing firm
IBM is looking to bolster is presence in the mobile commerce sector. The technology firm recently acquired Xtify, a company that specializes in mobile payments and marketing. While IBM has not released any concrete information concerning the acquisition, Xtify has an extensive history of operations in the mobile sector. The company was formed in 2009 and has been facilitating mobile commerce and marketing services since then.
Demand for mobile services in growing among consumers
Mobile commerce has become a very competitive, yet attractive field for large companies like IBM. These companies see a great deal of promise in the mobile commerce sector, especially as more consumers gain access to smartphones and tablets. In emerging markets, these consumers are showing a great deal of interest in purchasing products and shopping from their mobile device. As such, companies are looking to take advantage of the growing popularity of mobile commerce by engaging consumers in dynamic ways and offering them new services. For large companies, one of the best ways to break into mobile commerce is to purchase a smaller company that already has a presence in the sector.
Mobile marketing is gaining momentum
While Xtify does offer mobile commerce support, the company also has a variety of marketing services. With more consumers becoming reliant on their smartphones and tablets, mobile marketing has become more important. Finding ways to connect with mobile consumers has been a difficult task, and IBM’s acquisition of Xtify may help smooth the learning curve.
Acquisitions help large companies compete in mobile commerce field
IBM already offers a variety of support platforms for e-commerce retailers, but the company has only recently begun participating in the mobile commerce space. While the company’s acquisition of Xtify may not translate into higher mobile commerce revenue, it could be a sign of how IBM plans to approach the sector in the future. These acquisitions are becoming more common as large companies work to compete with one another in the mobile commerce arena.
Mobile commerce experiencing strong growth in retail
IBM has issued a new report concerning the growth of mobile commerce in the retail sector. The report — “Online Retail Index” — shows that mobile commerce has been growing in popularity among mobile consumers that favor their smartphones and devices over traditional means of shopping. Many of these consumers have become very comfortable with the concept of shopping online but are becoming less likely to remain tethered to stationary computers while doing so. Mobile technology has allowed these tech-savvy consumers to shop wherever they are, enabling them to shop more frequently and, in some cases, spend more money.
Tablets contributing to expansion of mobile shopping
According to the IBM report, mobile commerce grew by 31% in the first quarter of this year, up from where it had been in the same period of 2012. The report notes that growing tablet use is a major contributing factor to the growth mobile commerce is experiencing. Many consumers consider tablets to be convenient mobile shopping platforms. Larger screens offer better functionality with conventional e-commerce sites, making these sites easier to navigate removing some of the problems consumers have had with purchasing products.
Online sales are becoming increasingly mobile
The report indicates that mobile commerce now accounts for 17.4% of all online retail sales. This is expected to grow in the future as more consumers become acclimated to the concept of mobile shopping and purchasing products with nothing more than their smartphones or tablets. IBM predicts that growth will be sustained by retailers’ ability to provide consumers with a positive shopping experience and their ability to cater to tablet users.
Interactive technologies help attract consumers to mobile commerce
The IBM report notes that the use of interactive technologies, such as augmented reality and QR codes, has helped boost the adoption of mobile commerce. These technologies have been able to engage consumers in a new and dynamic way, encouraging them to make purchases of products that they are most interested in. In the case of QR codes, consumers have been able to make use of retailer discounts at a higher frequency, as long as they purchase products from a mobile device.
