Spending by brands on digital retail marketing will more than double over the next four years, according to research outfit Juniper Research.

In its study called “Digital Retail Marketing: Coupons, Advertising & Consumer Engagement 2016-2020”, the company argues that spending will increase from $US174 billion in 2015 to $US 362 billion by the end of the decade. However, adblocking technology is likely to impact almost ten per cent of global digital ad revenues by 2020.

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It also found that, while the digital retail marketing industry will continue to be dominated by advertising revenues, coupon contributions will see strong growth — driven in part by the rise of Bluetooth beacons.

Bluetooth bites

According to the authors, “Beacons, which find the location of a smart device using BLE (Bluetooth Low Energy, or Bluetooth Smart) signals, use transmitters to push pertinent content and information to devices which have their Bluetooth enabled. Several leading US retailers have now deployed beacon networks, with Macy’s having installed more than 4,000 in its stores.

Significant opportunity exists: Juniper forecasts that almost 1.6 billion coupons will be delivered annually to consumers via beacon technology by 2020. This is up from just 11 million this year, as retailers seek to develop proximity marketing campaigns in and around their stores.

Lauren Foye, the report’s author, said “Beacons are set to provide a boost to retailers, as we see major players promote instore offers and deals though mobile devices, targeting consumers whilst they are shopping. Coupled with loyalty schemes and rewards, retailers have clear potential to monetise those setting foot in their stores, aiding in promoting more traditional bricks and mortar retail.

And the researchers also argue that there is significant potential for ‘out of home’ proximity advertising, with beacons starting to be rolled-out on buses, tubes and taxis, targeting locations which see high footfall.

Personalisation becoming Hyperpersonalisation

Juniper predicts a shift to hyperpersonalisation that will see companies effectively create bespoke, individualised engagement across all brand offers, thereby reinforcing the scale of customer loyalty. “A number of retailers already utilise this method; Netflix, for example, stated that recommendations made via hyperpersonalisation data accounted for 60 per cent of its rentals in 2014.

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