NEW YORK: With more retailers deploying beacons, proximity marketing is expected to deliver increased engagement and conversion this holiday season, especially with the millennial demographic.
According to inMarket, a beacon platform that claims to reach 38m monthly shoppers across the US, beacons and proximity marketing programs will influence $7.5bn of millennial spending over the next few weeks.
"We saw a lot of test-and-learn across various industries in beacon tech in 2014 and early 2015," said Kevin Hunter, president of inMarket. "Now, we are seeing the savviest marketers benefit from hypertargeting and contextual mobile experiences for consumers, both in-store and before she shops."
He added that millennials were the most desirable demographic for marketers, "and beacons plus proximity tools – when coupled with app scale – can provide access to interested shoppers at their most receptive times".
"The significance of $7.5bn really is that marketers can impact this millennial spending while the shopper is in-store, ready to buy," he said.
On the inMarket platform itself, the top five product categories to benefit from in-store proximity engagements in 2015 were deli items, over-the-counter medication, wine and spirits, non-alcoholic beverages and snacks.
These rankings were based on average incremental spending driven with inMarket proximity campaigns during the year.
"Proximity tends to be an excellent way to engage shoppers about new or timely products," Hunter said.
"While we can't comment on campaigns that are in-progress, we do have a number of major brands using the technology to drive awareness and sales for holiday-themed products."
Mobile Marketer named one of these as Philips Norelco, the consumer electronics brand, which is running a campaign aimed at driving traffic into the men's grooming aisle to pick up an electric shaver as a gift.
Data sourced from inMarket, Mobile Marketer; additional content by Warc staff