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Digital Retail Marketing Upside to Reach $199.4 Billion

Only the most conservative laggard marketers have yet to embrace digital trends. Global brand and retail spend on digital marketing activities will reach nearly $200 billion in 2015, that's up by 15 percent on 2014 levels, according to the latest market study by Juniper Research.

The study observed that nearly 70 percent of the net increase on digital marketing spend this year would be concentrated on the mobile channel, as legacy brand strategies evolve to deliver campaigns within an omni-channel digital environment.

According to the research, factors behind the migration to smartphones and media tablets include their inherent capabilities to enable timely, targeted and personalized marketing campaigns.

That being said, retailer marketers will still need to seek ways to enhance customer engagement and to analyze the relative success of their efforts.

In the case of mobile coupons, redemption rates were typically significantly higher and costs per redemption much lower than for traditional mechanisms -- such as direct mail or newspaper coupons.


Additionally, the study findings highlight the potential for using predictive analytics on the wealth of online data generated through consumer activities on websites and social media.

Juniper observed that predictive analytics was increasingly being used in real time, with retailers able to tailor advertising and product promotion while a customer is browsing their websites.

However, Juniper believes that brands need to develop marketing strategies to cater for an audience which increasingly media meshes or media stacks -- that is, uses multiple screens simultaneously for digital activities which are either related or unrelated.

"The beauty of mobile and online marketing channels is that they can play an active role throughout the retail life-cycle, from product discovery to product purchase, enhancing customer value through personalized promotions," said  Dr Windsor Holden, research director at Juniper Research.

Juniper also stressed the importance of maximizing the potential of digital media throughout the entire consumer retail buyer's journey, rather than purely to drive single product awareness and/or one-time visits to stores.

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