Mobile ads and circulars prove particularly effective for retail

It may be time for retailers to start thinking about chucking the print circulars and begin focusing more on mobile promotions. In-app advertisements may reap better results for retail than other industries.

Approximately 74 percent of mobile shoppers viewed circulars in the last 30 days, according to a study from permission-based mobile company Retale and location insights and mobile ad intelligence provider Placed.  The companies surveyed 11,000 mobile users on their shopping habits and found that half of those users looked at circulars from within a mobile app. And of those who used only print circulars, just 23 percent said they preferred that format to digital.

"For the savvy retail marketing executive this is very good news: A familiar ad format, well known for driving in-store traffic, is now also increasingly being consumed across digital channels," Retale President Pat Dermody said.

The majority, 82 percent, of shoppers use such promotions to help them plan their trips to the store. In fact, the only place they don't often look at circulars is in the store itself, where just 13 percent have viewed the ads.

That presents an opportunity for growth, even for retailers with robust mobile campaigns, according to mobile audience intelligence company NinthDecimal. In its quarterly "Mobile Audience Insights Report," the company found that retailers get 51 percent more store traffic as a result of mobile campaigns than other industries. And while 61 percent of shoppers said they would prefer to receive mobile promotions while in-store, less than half say those ads are actually served to them.

Part of the challenge for retailers could be the difficulty in accurately targeting ads to shoppers in-store, whether it's figuring out who might be interested or their physical location. Many retailers are still trying to figure out how best to approach mobile, even large chains like Whole Foods (NYSE:WFM), which has been slow to develop a mobile app.

Continued improvements to hyper local targeting could go a long way to helping retailers push out the relevant messaging that shoppers desire.

For more:
-See this Retale press release
-See this App Developer Magazine story

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