Beacons, Proximity Marketing To Drive $7.5 Billion in Millennials’ Holiday Shopping
The impact of location-based targeting this season will be felt through the rest of the year on even the most mundane consumer/retailer interactions, inMarket says.
Retailers’ use of beacons and proximity marketing initiatives are expected to account for $7.5 billion in U.S. Millennial spending this holiday season, according to data from location targeting platform inMarket.
As inMarket, whose beacon platform reaches a comScore-verified 38 million monthly shoppers in thousands of U.S. retail locations, expands its use of location-based predictive analytics and targeting program, dubbed “Quantum Receptivity,” the use of proximity in tandem with mobile and omnichannel marketing has become a clear focus for retailers such as Macy’s, Lord & Taylor Target, GameStop, and JCPenney.
The reason for the proximity push is in large part meant to respond to mobile-centric Millennials, who spend an average of $600 billion per year in the U.S., and are expected to spend $1.4 trillion per year by 2020, inMarket notes. The proximity marketing provider stresses its own ability to connect retailers and younger shoppers, as it claims to currently reach 15 percent of U.S. Millennials, and 38 percent of U.S. millennial moms through beacon-enabled apps including CheckPoints, List Ease, Epicurious, Viggle, and Favado.
Beacon Benefits Beyond The Holidays
The circling of marketers and shoppers during the holiday season serves as microcosm for the ways brands and consumers interact during the rest of the year. The marketing moves also influence more quotidian shopping activities largely unrelated to the season of gift-giving.
“We live in a mobile-first world, and it’s up to marketers to stay in front of their audiences across channels. Our mobile proximity platform is a conduit to reach Millennials with relevant messaging at key points in their path to purchase,” said Kevin Hunter, the proximity marketing vet who was named president of inMarket earlier this month. “We saw a lot of test-and-learn across various industries in beacon tech in 2014 and early 2015. Now, we are seeing the savviest retailers benefit from hyper-targeting and contextual mobile experiences with consumers, both in-store and before she shops.”
As U.S. food and beverage companies have lost $18 billion in market share over the past five years, many are turning to mobile to generate new revenue streams. In 2015, the top five product categories to benefit from in-store proximity engagements within inMarket’s system were:
- Deli Items
- Over the Counter (OTC) Medication
- Wine & Spirits
- Non-Alcoholic Beverages