News

Digital marketing spend to jump big by 2020

May 27, 2016

A new Juniper Research study predicts spend on digital retail marketing will double by 2020, hitting $362 billion. Spend hit $174 billion last year, according to an announcement.

Bluetooth beacon deployments will be a prime driver, as retailers tap the technology for coupon redemption programs.

Macy's as well as a slew of other legacy retailers, are already embracing beacons and the research firm expects nearly 1.6 billion coupons to be sent to consumers by 2020. That's a robust jump from 11 million this year, notes the research firm.

"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," said research author Lauren Foye. "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."

Another big trend in play for the next several years is a move toward "hyper-personalization," states the report, as a way to boost customer loyalty. Juniper points to Netflix as one example of how the strategy is in play. The streaming content provider states recommendations via hyper personalization accounted for 60 percent of rentals in 2014.