Brands Spend An Average Of $23 To Drive Each Store Visit
In-app ads appear the most effective at driving foot traffic, according to a new report from Cuebiq.
Brands spend an average of $23.05 to drive each incremental store visit, but not all digital ad spending is created equal: According to research from Cuebiq’s Footfall Attribution Benchmarks report, in-app ads appear particularly successful at driving in-store visits, generating 19-49 percent uplift and outperforming web ads.
In terms of how consumers spend their time on mobile, this stands to reason: In 2017, eMarketer reported that while consumers are using fewer apps than ever, time in core apps is skyrocketing — and mobile web time is on the decline. Mobile apps account for an estimated 84.9 percent of total mobile time spent, with mobile web browsing comprising only the 15.1 percent remainder.
“Our analysis of hundreds of campaigns that ran in 2017 provides granular insight into what is really working for driving retail traffic and what the actual cost and ROI for marketers is,” said Antonio Tomarchio, CEO of Cuebiq. “This analysis is helping brands better understand and plan campaigns, while giving a… view into how they stack up against category averages and their competitors.”
This doesn’t mean that relevant, targeted mobile ads don’t have a place — especially in certain verticals, like convenience stores. In fact, a combination of rich media and location ad targeting last holiday season helped RaceTrac generate a 47 percent lift in traffic at the gas station convenience store chain’s 450 outlets across the southern United States.
But time spent in dedicated mobile apps is specific and “sticky” — meaning that brick-and-mortar retailers looking to boost store visits should look into allocating spend in this area where appropriate.
In terms of brands creating mobile apps, with consumers using fewer than before, not every store will benefit from launching a new app now. But for those who already have one, it’s a safe bet that the regular users are repeat, loyal customers — and the data and engagement possibilities here are also significant.
As RueLaLa’s Feng Chang put it earlier this year, “we don’t want our main, engaged members shopping on Rue La La — instead, they’re going be shopping on the app. So, we focus the mobile/desktop web experience mostly that new user, and the app for the repeat, loyal user. For us, that’s the best allocation of our resources, and I think [that’s] an important takeaway for others as well.”