Tag: mobile shoppers

Nielsen research results show smartphone ads are getting the job done and send the message to the right people.

Results from a recent Nielsen research study are supporting the use of mobile marketing campaigns. As it turns out, the data indicates that these ads are highly effective in reaching targeted consumers.

In fact, some forms of mobile marketing ads are as effective – if not more so – than desktop advertising.

As this type of insight regarding mobile marketing campaigns is produced by more research firms, it is expected that spending on this advertising channel will keep rising. While some have said that this will be to the detriment of desktop ads, others have predicted that it’s more likely to impact more traditional methods of advertising – such as TV and print – before it reaches desktop.

Nielsen’s study on the effectiveness of this method analyzed data from 40,000 mobile marketing campaigns.

Those mobile advertising campaigns occurred at any time between April 2016 and June 2016. They were presented over a spectrum of mobile apps, websites and digital services. What Nielsen found was that this technique allowed the ads to reach 60 percent of their targeted consumers. That represents an improvement of 29 percent when compared to the same time during 2015.

The study went on to reveal that the effectiveness of mobile ad campaigns has a greater effectiveness for reaching:

• A more targeted audience – The campaigns targeting consumers aged 18 to 34 years successfully reached them 63 percent of the time over mobile. Comparatively, the rate over desktop was 53 percent. The Nielsen report suggested that this was due to the personal nature of mobile devices and the shared nature of computers.
• Women – Campaigns targeting women aged 18 to 49 years old were successful in doing so 53 percent of the time over mobile. Over desktop, that figure was 45 percent.

As shoppers use their smartphones to an increasing degree, mobile marketing campaigns are able to better reach their audiences. This allows for the placement of ads that are more relevant to consumers and will likely increase the use of this advertising channel, said Nielsen.

Industry analysts had predicted that Apple would kick smartphone wallets into gear but that might not be it.

When Apple Pay was launched, many analysts believed this would be the start of powerful mobile payments trends. They felt that Apple was the key to the mainstream adoption of mobile wallets. That said, that wallet app has now been available for about two years and adoption has been slower than anticipated.

Some analysts are now saying that the start of the widespread use of mobile payments won’t happen for some time.

A couple of years ago, mobile payments trends were expected to become the next big thing. By now, it would be commonplace to see shoppers using their smartphones in-store to pay for groceries, clothing and other purchases. It would be routine to use a mobile device instead of a credit card or debit card at a checkout counter.

However, mobile wallets have not taken off as expected. This has been the case both among mobile device users and among retailers. Now Fitch Ratings financial industry group director Michael Taino is predicting that the rate of adoption for mobile payments won’t just be slightly slower than expected. It will be much slower.

Taiano predicts that mobile payments trends won’t truly take off for multiple decades.

In an interview with Fortune magazine, Taiano was quoted as saying that “This could be a multi-decade change that occurs.” He said that the adoption by consumers and retailers may be similar to the experience seen in the growth of e-commerce. He pointed out that as large as e-commerce now is and as much as it has grown over 20 years, it still represents only 8 percent of retail spending in the United States.

Taiano recently published a report based on his conclusions and the evidence that has led him to make them. He underscored a number of barriers that have stood in the way of mainstream mobile wallet adoption.

One hurdle in the way of mobile payments trends progress has been the lack of incentive to consumers. Shoppers find credit and debit card use to be simple, familiar and accepted in the majority of places they shop. Therefore, at the moment they don’t have much motivation to change those easy and convenient habits.