New report shows that spending in the IT sector has changed due to the rise of mobile payments
The growing adoption of smartphones and tablets has powered the evolution of commerce. More consumers than ever before are now involved in mobile commerce, the process through which smartphones and tablets are used to shop for and purchase products, both online and in physical stores. A new report from Technavio shows that the growth of mobile commerce has changed spending habits in the global information technology (IT) market. More organizations in this market are focusing their investments on new technologies that can make mobile payments more convenient.
Report shows that companies are investing more in mobile technology
According to the report, the growth of the mobile commerce market has spurred companies to invest more heavily in mobile technology, such as NFC and Bluetooth. More companies are investing in new IT solutions to enhance their technological capabilities and allow them to engage mobile consumers more effectively. These IT solutions may help companies keep pace with the rapidly evolving mobile space, where consumers are often considered quite fickle and difficult to connect with.
Better data may help companies connect with their mobile customers more effectively
Companies interested in mobile commerce have begun to collaborate with companies like IBM and Oracle in order to better understand the needs of mobile consumers. These organizations are providing valuable analytical data that can help companies form better mobile services in the future. These companies are also beginning to invest more heavily in data security, which has been something that mobile consumers have been concerned with for several years.
Banks will be investing more aggressively in mobile commerce in the coming years
Technavio predicts that a substantial portion of the spending on mobile commerce solutions will come from the banking sector. Banks have been investing in digital solutions for years, hoping to provide mobile customers with the services that they need. With rising demand for mobile commerce support, many banks are beginning to feel pressure to adapt to a world that is becoming more mobile-centric.
Geolocation technology using searches and advertising are taking off in the country, says TechNavio.
A technology focused global research firm called TechNavio Research has now released a report that has shown that the increasing penetration of smartphones and other mobile devices has fueled a considerable growth in the American location based marketing and search market.
The firm has forecasted that from last year through 2018, there will be a compound annual growth rate (CAGR) of 43.01.
Location based marketing uses a mobile device owner’s specific position – as reported by that device – to promote brands, products and services that are in close proximity to that individual. Over the last few years, it has increasingly become the standard for smartphones and tablets to be GPS enabled, and those devices are achieving greater popularity among consumers. In the United States, it was reported, last year, that there was a 65 percent penetration rate for smartphones that were enabled with GPS technology.
It is expected that by 2016, over 90 percent of devices will be capable of supporting location based marketing tech.
According to the TechNavio vice president, Faisal Ghaus, “The huge number of smartphones being used in the US acts as a catalyst for the incremental adoption of mobile LBS applications such as location discovering, friend finder and location-based advertising, shopping and networking.”
Companies have recognized that there is potential value in providing consumers with advertising that is based on their specific location and have been increasingly adopting location based services in order to appeal to those shoppers.
Among the large businesses currently testing campaigns that employ this technology are PepsiCo Inc., Starbucks Corp. , and L’Oreal Inc. The latter of those companies has already launched a pilot campaign to test the cost effectiveness of this technology when compared to other electronic media as well as traditional print advertising.
Ghaus pointed out that as location based marketing costs are relatively low when compared to many other forms of advertising, “enterprises are witnessing cost benefits from related marketing activities and transferring these benefits to their customers.” This can also assist businesses in better understanding their customers so that more relevant and attractive deals can be offered.
