Tag: mobile advertisments

Mobile marketing boosts in-store sales

A study has shown that 55 percent of retailers feel that smartphones are sending shoppers into stores.

A new survey conducted by RSR Research has revealed that brick and mortar retailers don’t necessarily feel that smartphones are working against them, as mobile marketing is working effectively to send foot traffic back into their shops.

This has also taken some of the edge off the threat that some have felt from e-commerce giants.

The responses to the survey showed that 55 percent of businesses feel that mobile marketing is sending more consumers into their stores in order to make purchases there, in person. At the same time, they also stated that this new advertising channel could make things more challenging for them along the way, if it is to grow into a larger part of doing business. So far, the largest challenge that it presents is actually the capability for stepping into mobile, in addition to actually wanting to boost online traffic while meeting the demands of customers that are associated with making those changes.

The survey results also pointed out that there are differing opinions on mobile marketing among businesses.

Mobile Marketing increases in-store salesThe survey pointed out that there are two different categories of businesses, which they called “laggards” and “winners”. They explained that, depending on the type of business, the companies are likely to have different priorities with regards to the use of mobile advertising. The report on the survey explained that the companies that are in the “laggards” category, half feel that not knowing the expectations of the consumer in terms of smartphone ads could be the biggest challenge. Comparatively, only 38 percent in the “winners” category felt the same way.

Moreover, among the “winners”, 44 percent were focused on engaging with different groups of consumers in order to push sales upward. Furthermore, 21 percent felt that it was possible that mobile technology could be moving too fast to keep up. Equally, among the “laggards”, 20 percent said that they wanted to engage with customer groups and 0 percent felt that tech was moving too rapidly.

Both groups of businesses felt that mobile marketing was becoming an increasingly important tool and that it would only rise in its popularity over time.

Popular Hipcricket mobile marketing firm files for bankruptcy

The company’s assets have now been acquired for $4.5 million by SITO mobile.

Recent reports have shown that the Bellevue, Washington based mobile marketing company, Hipcricket, has now filed for bankruptcy as an independent company and that SITO Mobile has now acquired its assets for $4.5 million.

Hipcricket filed for bankruptcy protection, last week, despite its 21 U.S. patents and $26.7 million in annual revenues.

SITO Mobile was quick to recognize the opportunity and acquired all of the mobile marketing firm’s assets. According to its CEO, Jerry Hug, “Consistent with our goal to accelerate our growth, if completed, the acquisition of Hipcricket will bolster our services and solutions and increase our revenue from a customer base which would then include 38 of the Fortune 100 companies.”

The Hipcricket mobile marketing company’s press release announced that acquisition was its best direction.

Mobile Marketing - Time is UpIn the release the CEO of Hipcricket, Todd Wilson, explained that selling its assets in a court-approved agreement was “the most viable option to protect our human capital and maximize recovery for our stakeholders.” Filing for bankruptcy was a decision that the company made in order to “facilitate the sale”.

The press release explained that throughout the process of filing for Chapter 11, as well as during the acquisition process, Hipcricket believes that its typical daily operations will remain the same, subject to the “first day” motions approval by the Court. Hipcricket is also working to obtain approval from the Court in order to be able to keep up its current payroll and benefits program, in addition to maintaining the cash management system that is already in place. It wants to be able to keep up its typical daily business activities.

To make it possible for the company to keep up those operations throughout the acquisition period, the press release explained that SITO Mobile has agreed to provide debtor-in-possession (DIP) financing of up to $3.4 million to Hipcricket. All of this, of course, is subject to court approval, but at the time of the writing of this article, those were the intentions of the two companies that are involved in this acquisition.