An Extraordinary Technique in Retail Advertising

Social, local and mobile are three remarkably disruptive technologies which, when unified, can revolutionize retail advertising. The integration of these tactics is increasingly (and fondly) referred to as “SoLoMo.” These previously independent channels have converged, bridging the retail and eTail worlds and providing unparalleled opportunities to target consumers.

Credit the adoption and penetration of smart phones, which is now right around 45% among the United States’ wireless subscriber base. Their enhanced capabilities have radically changed consumption behavior. They are quickly becoming the preferred device for searching the Web, interacting with social networks and connecting with local businesses. For any skeptics who feel that the smaller sized screens present a barrier, following are a few stats that warrant consideration:

• Mobile phones will overtake PCs as the most common Web access devices worldwide by 2013 [Gartner]
• 91% of Mobile internet access is to socialize (compared to 79% on desktop) [Microsoft]
• Facebook reported having over 425 million monthly active mobile users during December 2011, accounting for nearly half of its worldwide user base
• Mobile search volume is up 130% year-over-year [Google]
• Half of all local searches are performed on Mobile devices [Microsoft]

Other metrics are worth noting. In Q4 of 2011, mobile search advertising among retailers was up 269% year-over-year according to IgnitionOne, the highly reputable New York-based digital marketing firm. After all, some 90% of purchases are made within 20 miles of the home. Sixty-five percent of mobile users use their device to find a business before making an in-store purchase. And 52% of adult wireless subscribers use their phones in stores to help with purchasing decisions. In the social arena, 90% of consumers trust recommendations from people they know.

Savvy retailers recognize that when applied strategically, SoLoMo can transform traditional B2C relationships. This synergetic blend of marketing tools enables retailers to engage, connect and interact with consumers ubiquitously. By implementing mobile, they ensure that consumers can reach their business anytime, from any location. In leveraging social, they can nurture personal relationships and capitalize on the viral nature of this medium. And by targeting on a local level, they can guarantee higher ROI by captivating audiences (those closest to purchasing) with truly relevant offers.

The bottom line: the SoLoMo triple-play empowers retail advertisers to reach the right audience, at the right time, with more compelling messaging.