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Mobile Retail Marketing

Mobile Retail Marketing

Advertising, Coupons & NFC Shopping 2011-2016

Publisher: Juniper Research
Date Published: 08/11/2011
Category: Mobile Commerce
No of Pages: 110
Coverage: Global - 8 Key Regions ‡
 

Overview

·         Latest Mobile Retail Developments

·         NFC/Coupons/Advertising Forecasts

·         Mobile Retail Ecosystem Explained


This report investigates the various tools, techniques and mobile channels available to mobile marketers to influence the mobile shopper. The NFC Shopping, Mobile Coupons and Mobile Advertising markets are analysed in depth and supported with regional growth forecasts for each sector. The report surveys the development of the mobile retail market from the standpoint of both the consumer and retailer, whether in physical or online stores.

In addition to market analysis of the mobile retail ecosystem, brands, retailers, mobile marketing agencies, POS vendors and MNOs will find relevant strategic recommendations for key and adjacent players. This study encompasses not only the unique position of mobile in bridging the online and physical retail divide; it also illustrates to readers the dramatically changing nature of the consumer's mobile retail journey and its implications for the retail industry.

Benefits of this Report:

  • Quantified revenue sizing for the mobile coupons, NFC smart posters and mobile advertising markets supported by mobile coupon redemption rates, NFC smart poster downloads and mobile advertising spend per user.

 

  • Identification of new retail marketing developments including "clicks and bricks" players, NFC shopping initiatives and mobile shopping assistant apps.

 

  • Updates on 12 significant retail marketing players together with drivers and constraints for each key retail marketing sector.

 

Table of Contents

Executive Summary
Mobile Retail Marketing Defined

1.1 Report Scope........................................................................................................ 21

1.2 Mobile Commerce............................................................................................... 22

Figure 1.1: Mobile Commerce Market Segmentation................................................................................ 22

1.2.1Mobile Payments..................................................................................................... 23

1.2.2 Mobile Retail Marketing.......................................................................................... 23

Figure 1.2: The Retail Customer Journey.................................................................................................... 23

1.2.3 Mobile Coupons & Vouchers and Mobile Loyalty................................................... 24

1.3 The Mobile Phone as a Retail Channel........................................................... 25

1.4 The Changing Customer Mobile Experience................................................ 26

1.4.1 The Mobile Retail Channel..................................................................................... 27

Figure 1.3: The Mobile Device in the Retail Customer Journey............................................................. 27

Figure 1.4: Mobile Location Services Applied to Retail............................................................................ 27

1.4.2 The State of Multichannel Retail Marketing............................................................ 28

Figure 1.5: Google/Ipsos Smartphone User Study - Multichannel Retail
Purchase Process.............. 28

1.4.3 Recent Trends in the Mobile Retail Experience...................................................... 29

i. Tablets................................................................................................................................................................. 29

Figure 1.6: River Island
Tablet Shopping App........................................................................................... 29

ii. Mobile POS........................................................................................................................................................ 29

Figure 1.7: AisleBuyer Mobile
App............................................................................................................... 30

iii. Mobile MicroStores.......................................................................................................................................... 30

Figure 1.8: NFC Mobile
Microstore Shopping at  Leclerc, Nice............................................................. 30

1.5 The Mobile Retail Market.................................................................................. 31

1.5.1 The Evolution of the Mobile Retail Market............................................................. 31

Figure 1.9: Mobile Retail Market Evolution................................................................................................. 31

1.5.2 Mobile Retail Market Forecasts.............................................................................. 32

Figure 1.10: The Mobile Retail Opportunity ($m)  Split by Smart Posters, Coupons &
Advertising 2011-2016           32

Table 1.1: The Mobile Retail Opportunity ($m)  Split by Smart Posters, Coupons &
Advertising 2011-2016 33

Figure 1.11: The Mobile Retail Opportunity ($m) Split by 8 Key Regions
2011-2016..................... 33

Table 1.2: The Mobile Retail Opportunity ($m) Split by 8 Key Regions
2011-2016........................ 34

Mobile Retail Market Development

2.1 eCommerce & mCommerce Players............................................................. 35

2.1.1 eBay Mobile............................................................................................................ 35

Figure 2.1: eBay Mobile Shopping................................................................................................................ 36

Figure 2.2: eBay Inspiration Shop................................................................................................................. 36

2.1.2 Amazon.................................................................................................................. 37

Figure 2.3: Amazon Mobile Shopping.......................................................................................................... 37

2.2 Mobile Marketing Agencies & Loyalty Specialists....................................... 38

2.2.1 5th Finger................................................................................................................ 38

Figure 2.4: 5th Finger In-Store Mobile Lifecycle.......................................................................................... 38

Figure 2.5: RedShop Mobile
Platform.......................................................................................................... 39

2.3 Smartphone App Developers........................................................................... 39

2.3.1 ShopSavvy.............................................................................................................. 39

Figure 2.6 ShopSavvy...................................................................................................................................... 39

2.3.2 Digby...................................................................................................................... 40

Figure 2.7: Digby Rich Retailer Branded App............................................................................................ 41

2.3.3 Shopkick................................................................................................................. 42

Figure 2.8: The ShopKick App...................................................................................................................... 42

Figure 2.9: ShopKick Store
Hardware......................................................................................................... 42

2.4 Mobile POS Vendors........................................................................................... 43

2.4.1 Square.................................................................................................................... 43

Figure 2.10: Square Card
Reader................................................................................................................. 43

2.5 Retailers & Merchants........................................................................................ 44

2.5.1 Nordstrom............................................................................................................. 44

Figure 2.11: Nordstrom Mobile Website.................................................................................................... 44

2.5.2 Brooks Brothers & Digby (US)............................................................................... 44

Figure 2.12: Brooks Brothers Mobile Site.................................................................................................... 45

2.5.3 Tesco Home plus.................................................................................................... 45

Figure 2.13: Tesco Home Plus
Korea QR Code Campaign.................................................................... 45

2.6 Mobile Network Operators.............................................................................. 46

2.6.1 AT&T and Digby..................................................................................................... 46

2.6.2 Telenor, Telia Denmark and Scanbuy..................................................................... 46

2.7 Analysis.................................................................................................................. 47

2.7.1 Retail Shopping Channel........................................................................................ 47

Figure 2.14: Retail Shopping Channels........................................................................................................ 47

Figure 2.15: Retail Shopping Channels - Impact of Mobile..................................................................... 48

2.7.2 Mobile Retail Players.............................................................................................. 49

Figure 2.16: Mobile Retail Players................................................................................................................ 49

Mobile Coupons: Market Development Trends & Forecasts

3.1 Introduction.......................................................................................................... 51

3.2 The Mobile Coupon in Context........................................................................ 52

Figure 3.1: Mobile Coupon Roles................................................................................................................. 52

3.3 The Mobile Coupon Ecosystem........................................................................ 53

Figure 3.2: Closed Loop Couponing............................................................................................................ 53

3.4 Market Trends, Drivers and Constraints....................................................... 54

Figure 3.3: Mobile Coupon Market Trends, Drivers & Constraints....................................................... 54

3.4.1 Trends.................................................................................................................... 55

The Ecosystem Opportunity............................................................................................................................... 55

Brands, Merchants and Retailers getting Onboard........................................................................................ 55

Enter the Payments Providers............................................................................................................................ 55

Operators Excluded?............................................................................................................................................ 56

Driving Towards User Loyalty............................................................................................................................ 56

Figure 3.4: Google Wallet Home Screen.................................................................................................... 57

3.4.2 Drivers................................................................................................................... 57

i. Economic Downturn......................................................................................................................................... 57

ii. Convenience...................................................................................................................................................... 57

iii. Social Networking............................................................................................................................................ 57

Figure 3.5: Twitter User Coupon Service................................................................................................... 58

iv. Smartphone Growth & User Experience.................................................................................................... 58

v. The Rise of the Mobile App............................................................................................................................ 58

Figure 3.6: iCircular Coupons App.............................................................................................................. 59

vi. NFC Coupons.................................................................................................................................................. 59

Figure 3.7: Jiepang NFC Smartposter........................................................................................................... 59

vii. Tablets & eReaders......................................................................................................................................... 59

Figure 3.8: Kindle Coupon............................................................................................................................ 60

viii. Enhanced Security......................................................................................................................................... 60

ix. Paper & Online Coupon Dissatisfaction..................................................................................................... 60

x. Cost Savings & Environmental Benefits........................................................................................................ 60

xi. Proximity Marketing........................................................................................................................................ 61

xii. Multiple Channel Synergies.......................................................................................................................... 61

xiii. Instant Campaigns......................................................................................................................................... 61

xiv. Smart Targeting............................................................................................................................................. 61

Figure 3.9: Kiip Game Reward...................................................................................................................... 62

Figure 3.10: Coupon Targeting Platform Example.................................................................................... 63

xv. Smart Offers.................................................................................................................................................... 63

Figure 3.11: The ‘Scratch & Save' Coupon................................................................................................. 63

Figure 3.12: The ‘Countdown' Coupon...................................................................................................... 64

xvi. Higher Redemption Rates............................................................................................................................ 64

3.4.2 Constraints............................................................................................................. 64

i. Privacy................................................................................................................................................................. 64

ii. Managing the Coupon on the Phone............................................................................................................ 65

iii. POS Redemption Technology....................................................................................................................... 65

iv. Marketeer & Retailer Mindset........................................................................................................................ 65

v. Retailer POS Investment.................................................................................................................................. 66

vi. Retailer Redemption Logistics....................................................................................................................... 66

vii. Success Measurements................................................................................................................................... 66

viii. Over-Success & Retail Dependency........................................................................................................... 66

ix. Rural Markets................................................................................................................................................... 67

3.5 Mobile Coupon Market Forecast..................................................................... 68

3.5.1 Mobile Coupon User Base...................................................................................... 68

Figure 3.13: Mobile Coupon
User Base (m) Split by 8 Key Regions
2011-2016................................ 68

3.5.2 Mobile Coupons Issued By Mobile Marketing Channel........................................... 69

Figure 3.14: Mobile Coupons Issued (%) Split by Mobile Marketing Channel
2011-2016................ 69

3.5.3 Total Number of Mobile Coupons Redeemed......................................................... 69

Figure 3.15: Total Number of Mobile Coupons Redeemed Per Annum
(m)  Split by 8 Key Regions 2011-2016         69

Table 3.1: Number of Mobile
Coupons Redeemed Per Annum (m)  Split by
8 Key Regions 2011-2016        70

3.5.4 Total Mobile Coupon Redemption Value................................................................ 70

Figure 3.16: Total Mobile Coupon Redemption Value ($m) Split by 8 Key
Regions 2011-2016.... 70

Table 3.2: Total Mobile Coupons Retail Redemption Value ($m)  Split by 8 Key Regions 2011-2016           71

3.5.5 Redemption Rate.................................................................................................... 71

Figure 3.17: Mobile Coupon Redemption Rate (%) Split by 8 Key Regions
2011-2016................... 71

NFC Retail Marketing: Vendors & Smart Poster Market Forecast

4.1 Introduction.......................................................................................................... 73

Figure 4.1: Suipo Smart Poster...................................................................................................................... 74

4.2 NFC & FeliCa Technology................................................................................. 75

4.2.1 Technology............................................................................................................. 75

Figure 2.1: Typical NFC Implementation.................................................................................................... 76

4.2.2 NFC Forum Interview............................................................................................. 77

Figure 4.2: Uses of NFC................................................................................................................................. 77

Figure 4.3: N Mark Logo................................................................................................................................ 78

4.2.3 NFC in the Device.................................................................................................. 78

i. Embedded........................................................................................................................................................... 78

ii. SIM....................................................................................................................................................................... 78

4.2.4 Interim NFC Form Factor Solutions....................................................................... 79

Figure 4.4: Integration Phase Comparison - NFC and Mobile Broadband.......................................... 79

i. NFC Stickers....................................................................................................................................................... 79

Figure 4.5: Twinlinx My-Max NFC Sticker.................................................................................................. 80

ii. NFC SD Card.................................................................................................................................................... 80

Figure 4.6: Giesecke & Devrient NFC SD Card........................................................................................ 80

Figure 4.7: DeviceFidelity In2Pay microSD NFC Solution....................................................................... 81

iii. NFC Case or Sleeve for Smartphones......................................................................................................... 81

Figure 4.8: NFC Case for iPhone.................................................................................................................. 81

iv. SIM Card Adaptations..................................................................................................................................... 81

v. NFC POS Merchant Payment Device Adaptations.................................................................................... 82

Figure 4.9: VeriFone PAYware Mobile Enterprise..................................................................................... 82

4.2.5 FeliCa..................................................................................................................... 82

Figure 4.10: FeliCa to Global Mobile NFC Roadmap............................................................................... 83

4.3 NFC Retail Marketing Drivers & Constraints............................................... 83

Figure 4.11: NFC Drivers and Constraints................................................................................................. 83

4.3.1 NFC Drivers........................................................................................................... 83

i. Customer Response.......................................................................................................................................... 83

ii. Transaction Efficiency & Growth................................................................................................................... 84

iii. Infrastructure Availability............................................................................................................................... 84

iv. MNO Plans and Successes............................................................................................................................. 84

v. Widespread NFC Applications...................................................................................................................... 84

vi. Queue Busting.................................................................................................................................................. 85

vii. One to One Marketing.................................................................................................................................. 85

viii. Smartphone Growth..................................................................................................................................... 85

4.3.2 NFC Constraints..................................................................................................... 85

i. Device Availability............................................................................................................................................. 85

ii. POS Acceptance............................................................................................................................................... 86

iii. User Support.................................................................................................................................................... 86

4.4 NFC Market Development............................................................................... 87

4.4.1 Regional Prospects................................................................................................. 87

Figure 4.12: Market Development Prospects 2011-2012 for 8 Key Regions...................................... 87

4.4.2 Selected NFC Retail Market Players....................................................................... 87

i. Telefonica, Visa Europe
& La Caixa (Spain)................................................................................................. 88

Figure 4.13: Sitges Mobile Shopping............................................................................................................ 88

ii. Ingenico.............................................................................................................................................................. 89

Figure 4.14: Ingenico Tellium Pass Plus NFC POS Terminal.................................................................. 89

iii. VeriFone............................................................................................................................................................ 89

Figure 4.15: VeriFone VX Evolution POS Device..................................................................................... 89

iv. More Magic....................................................................................................................................................... 90

v. Think&Go NFC................................................................................................................................................. 90

vi. ViVOtech........................................................................................................................................................... 91

4.5 NFC Smart Poster Market Forecast............................................................. 92

4.5.1 Smart Poster Product Information Download Forecast.......................................... 92

Figure 4.16: Total Number of NFC Smart Poster Downloads
(m)  Split by 8 Key Regions 2011-2016          93

Table 4.1: Total Number of NFC Smart
Poster Downloads (m)  Split by 8 Key
Regions 2011-2016 93

4.5.2 NFC Smart Posters Total Fee Value....................................................................... 93

Figure 6.6: NFC Smart Posters
Total Fee Value ($m) p.a. Split by 8 Key Regions 2011-2016........ 94

Table 6.4: NFC Smart Posters
Total Fee Value ($m) p.a. Split by 8 Key Regions 2011-2016......... 94

Mobile Advertising: Campaigns & Market Forecast

Executive Summary...................................................................... 9

ES1 Introduction........................................................................................................... 9

ES2 Mobile Coupons.................................................................................................. 11

ES3 NFC Retail Marketing....................................................................................... 13

ES4 Mobile Advertising............................................................................................. 15

ES5 Mobile Retail Market Forecasts..................................................................... 17

ES6 Recommendations............................................................................................. 19

Mobile Retail Marketing Defined

1.1 Report Scope........................................................................................................ 21

1.2 Mobile Commerce............................................................................................... 22

Figure 1.1: Mobile Commerce Market Segmentation................................................................................ 22

1.2.1Mobile Payments..................................................................................................... 23

1.2.2 Mobile Retail Marketing.......................................................................................... 23

Figure 1.2: The Retail Customer Journey.................................................................................................... 23

1.2.3 Mobile Coupons & Vouchers and Mobile Loyalty................................................... 24

1.3 The Mobile Phone as a Retail Channel........................................................... 25

1.4 The Changing Customer Mobile Experience................................................ 26

1.4.1 The Mobile Retail Channel..................................................................................... 27

Figure 1.3: The Mobile Device in the Retail Customer Journey............................................................. 27

Figure 1.4: Mobile Location Services Applied to Retail............................................................................ 27

1.4.2 The State of Multichannel Retail Marketing............................................................ 28

Figure 1.5: Google/Ipsos Smartphone User Study - Multichannel Retail
Purchase Process.............. 28

1.4.3 Recent Trends in the Mobile Retail Experience...................................................... 29

i. Tablets................................................................................................................................................................. 29

Figure 1.6: River Island
Tablet Shopping App........................................................................................... 29

ii. Mobile POS........................................................................................................................................................ 29

Figure 1.7: AisleBuyer Mobile
App............................................................................................................... 30

iii. Mobile MicroStores.......................................................................................................................................... 30

Figure 1.8: NFC Mobile
Microstore Shopping at  Leclerc, Nice............................................................. 30

1.5 The Mobile Retail Market.................................................................................. 31

1.5.1 The Evolution of the Mobile Retail Market............................................................. 31

Figure 1.9: Mobile Retail Market Evolution................................................................................................. 31

1.5.2 Mobile Retail Market Forecasts.............................................................................. 32

Figure 1.10: The Mobile Retail Opportunity ($m)  Split by Smart Posters, Coupons &
Advertising 2011-2016           32

Table 1.1: The Mobile Retail Opportunity ($m)  Split by Smart Posters, Coupons &
Advertising 2011-2016 33

Figure 1.11: The Mobile Retail Opportunity ($m) Split by 8 Key Regions
2011-2016..................... 33

Table 1.2: The Mobile Retail Opportunity ($m) Split by 8 Key Regions
2011-2016........................ 34

Mobile Retail Market
Development

2.1 eCommerce & mCommerce Players............................................................. 35

2.1.1 eBay Mobile............................................................................................................ 35

Figure 2.1: eBay Mobile Shopping................................................................................................................ 36

Figure 2.2: eBay Inspiration Shop................................................................................................................. 36

2.1.2 Amazon.................................................................................................................. 37

Figure 2.3: Amazon Mobile Shopping.......................................................................................................... 37

2.2 Mobile Marketing Agencies & Loyalty Specialists....................................... 38

2.2.1 5th Finger................................................................................................................ 38

Figure 2.4: 5th Finger In-Store Mobile Lifecycle.......................................................................................... 38

Figure 2.5: RedShop Mobile
Platform.......................................................................................................... 39

2.3 Smartphone App Developers........................................................................... 39

2.3.1 ShopSavvy.............................................................................................................. 39

Figure 2.6 ShopSavvy...................................................................................................................................... 39

2.3.2 Digby...................................................................................................................... 40

Figure 2.7: Digby Rich Retailer Branded App............................................................................................ 41

2.3.3 Shopkick................................................................................................................. 42

Figure 2.8: The ShopKick App...................................................................................................................... 42

Figure 2.9: ShopKick Store
Hardware......................................................................................................... 42

2.4 Mobile POS Vendors........................................................................................... 43

2.4.1 Square.................................................................................................................... 43

Figure 2.10: Square Card
Reader................................................................................................................. 43

2.5 Retailers & Merchants........................................................................................ 44

2.5.1 Nordstrom............................................................................................................. 44

Figure 2.11: Nordstrom Mobile Website.................................................................................................... 44

2.5.2 Brooks Brothers & Digby (US)............................................................................... 44

Figure 2.12: Brooks Brothers Mobile Site.................................................................................................... 45

2.5.3 Tesco Home plus.................................................................................................... 45

Figure 2.13: Tesco Home Plus
Korea QR Code Campaign.................................................................... 45

2.6 Mobile Network Operators.............................................................................. 46

2.6.1 AT&T and Digby..................................................................................................... 46

2.6.2 Telenor, Telia Denmark and Scanbuy..................................................................... 46

2.7 Analysis.................................................................................................................. 47

2.7.1 Retail Shopping Channel........................................................................................ 47

Figure 2.14: Retail Shopping Channels........................................................................................................ 47

Figure 2.15: Retail Shopping Channels - Impact of Mobile..................................................................... 48

2.7.2 Mobile Retail Players.............................................................................................. 49

Figure 2.16: Mobile Retail Players................................................................................................................ 49

Mobile Coupons: Market
Development Trends & Forecasts

3.1 Introduction.......................................................................................................... 51

3.2 The Mobile Coupon in Context........................................................................ 52

Figure 3.1: Mobile Coupon Roles................................................................................................................. 52

3.3 The Mobile Coupon Ecosystem........................................................................ 53

Figure 3.2: Closed Loop Couponing............................................................................................................ 53

3.4 Market Trends, Drivers and Constraints....................................................... 54

Figure 3.3: Mobile Coupon Market Trends, Drivers & Constraints....................................................... 54

3.4.1 Trends.................................................................................................................... 55

The Ecosystem Opportunity............................................................................................................................... 55

Brands, Merchants and Retailers getting Onboard........................................................................................ 55

Enter the Payments Providers............................................................................................................................ 55

Operators Excluded?............................................................................................................................................ 56

Driving Towards User Loyalty............................................................................................................................ 56

Figure 3.4: Google Wallet Home Screen.................................................................................................... 57

3.4.2 Drivers................................................................................................................... 57

i. Economic Downturn......................................................................................................................................... 57

ii. Convenience...................................................................................................................................................... 57

iii. Social Networking............................................................................................................................................ 57

Figure 3.5: Twitter User Coupon Service................................................................................................... 58

iv. Smartphone Growth & User Experience.................................................................................................... 58

v. The Rise of the Mobile App............................................................................................................................ 58

Figure 3.6: iCircular Coupons App.............................................................................................................. 59

vi. NFC Coupons.................................................................................................................................................. 59

Figure 3.7: Jiepang NFC Smartposter........................................................................................................... 59

vii. Tablets & eReaders......................................................................................................................................... 59

Figure 3.8: Kindle Coupon............................................................................................................................ 60

viii. Enhanced Security......................................................................................................................................... 60

ix. Paper & Online Coupon Dissatisfaction..................................................................................................... 60

x. Cost Savings & Environmental Benefits........................................................................................................ 60

xi. Proximity Marketing........................................................................................................................................ 61

xii. Multiple Channel Synergies.......................................................................................................................... 61

xiii. Instant Campaigns......................................................................................................................................... 61

xiv. Smart Targeting............................................................................................................................................. 61

Figure 3.9: Kiip Game Reward...................................................................................................................... 62

Figure 3.10: Coupon Targeting Platform Example.................................................................................... 63

xv. Smart Offers.................................................................................................................................................... 63

Figure 3.11: The ‘Scratch & Save' Coupon................................................................................................. 63

Figure 3.12: The ‘Countdown' Coupon...................................................................................................... 64

xvi. Higher Redemption Rates............................................................................................................................ 64

3.4.2 Constraints............................................................................................................. 64

i. Privacy................................................................................................................................................................. 64

ii. Managing the Coupon on the Phone............................................................................................................ 65

iii. POS Redemption Technology....................................................................................................................... 65

iv. Marketeer & Retailer Mindset........................................................................................................................ 65

v. Retailer POS Investment.................................................................................................................................. 66

vi. Retailer Redemption Logistics....................................................................................................................... 66

vii. Success Measurements................................................................................................................................... 66

viii. Over-Success & Retail Dependency........................................................................................................... 66

ix. Rural Markets................................................................................................................................................... 67

3.5 Mobile Coupon Market Forecast..................................................................... 68

3.5.1 Mobile Coupon User Base...................................................................................... 68

Figure 3.13: Mobile Coupon
User Base (m) Split by 8 Key Regions
2011-2016................................ 68

3.5.2 Mobile Coupons Issued By Mobile Marketing Channel........................................... 69

Figure 3.14: Mobile Coupons Issued (%) Split by Mobile Marketing Channel
2011-2016................ 69

3.5.3 Total Number of Mobile Coupons Redeemed......................................................... 69

Figure 3.15: Total Number of Mobile Coupons Redeemed Per Annum
(m)  Split by 8 Key Regions 2011-2016         69

Table 3.1: Number of Mobile
Coupons Redeemed Per Annum (m)  Split by
8 Key Regions 2011-2016        70

3.5.4 Total Mobile Coupon Redemption Value................................................................ 70

Figure 3.16: Total Mobile Coupon Redemption Value ($m) Split by 8 Key
Regions 2011-2016.... 70

Table 3.2: Total Mobile Coupons Retail Redemption Value ($m)  Split by 8 Key Regions 2011-2016           71

3.5.5 Redemption Rate.................................................................................................... 71

Figure 3.17: Mobile Coupon Redemption Rate (%) Split by 8 Key Regions
2011-2016................... 71

NFC Retail Marketing:
Vendors & Smart Poster Market Forecast

4.1 Introduction.......................................................................................................... 73

Figure 4.1: Suipo Smart Poster...................................................................................................................... 74

4.2 NFC & FeliCa Technology................................................................................. 75

4.2.1 Technology............................................................................................................. 75

Figure 2.1: Typical NFC Implementation.................................................................................................... 76

4.2.2 NFC Forum Interview............................................................................................. 77

Figure 4.2: Uses of NFC................................................................................................................................. 77

Figure 4.3: N Mark Logo................................................................................................................................ 78

4.2.3 NFC in the Device.................................................................................................. 78

i. Embedded........................................................................................................................................................... 78

ii. SIM....................................................................................................................................................................... 78

4.2.4 Interim NFC Form Factor Solutions....................................................................... 79

Figure 4.4: Integration Phase Comparison - NFC and Mobile Broadband.......................................... 79

i. NFC Stickers....................................................................................................................................................... 79

Figure 4.5: Twinlinx My-Max NFC Sticker.................................................................................................. 80

ii. NFC SD Card.................................................................................................................................................... 80

Figure 4.6: Giesecke & Devrient NFC SD Card........................................................................................ 80

Figure 4.7: DeviceFidelity In2Pay microSD NFC Solution....................................................................... 81

iii. NFC Case or Sleeve for Smartphones......................................................................................................... 81

Figure 4.8: NFC Case for iPhone.................................................................................................................. 81

iv. SIM Card Adaptations..................................................................................................................................... 81

v. NFC POS Merchant Payment Device Adaptations.................................................................................... 82

Figure 4.9: VeriFone PAYware Mobile Enterprise..................................................................................... 82

4.2.5 FeliCa..................................................................................................................... 82

Figure 4.10: FeliCa to Global Mobile NFC Roadmap............................................................................... 83

4.3 NFC Retail Marketing Drivers & Constraints............................................... 83

Figure 4.11: NFC Drivers and Constraints................................................................................................. 83

4.3.1 NFC Drivers........................................................................................................... 83

i. Customer Response.......................................................................................................................................... 83

ii. Transaction Efficiency & Growth................................................................................................................... 84

iii. Infrastructure Availability............................................................................................................................... 84

iv. MNO Plans and Successes............................................................................................................................. 84

v. Widespread NFC Applications...................................................................................................................... 84

vi. Queue Busting.................................................................................................................................................. 85

vii. One to One Marketing.................................................................................................................................. 85

viii. Smartphone Growth..................................................................................................................................... 85

4.3.2 NFC Constraints..................................................................................................... 85

i. Device Availability............................................................................................................................................. 85

ii. POS Acceptance............................................................................................................................................... 86

iii. User Support.................................................................................................................................................... 86

4.4 NFC Market Development............................................................................... 87

4.4.1 Regional Prospects................................................................................................. 87

Figure 4.12: Market Development Prospects 2011-2012 for 8 Key Regions...................................... 87

4.4.2 Selected NFC Retail Market Players....................................................................... 87

i. Telefonica, Visa Europe
& La Caixa (Spain)................................................................................................. 88

Figure 4.13: Sitges Mobile Shopping............................................................................................................ 88

ii. Ingenico.............................................................................................................................................................. 89

Figure 4.14: Ingenico Tellium Pass Plus NFC POS Terminal.................................................................. 89

iii. VeriFone............................................................................................................................................................ 89

Figure 4.15: VeriFone VX Evolution POS Device..................................................................................... 89

iv. More Magic....................................................................................................................................................... 90

v. Think&Go NFC................................................................................................................................................. 90

vi. ViVOtech........................................................................................................................................................... 91

4.5 NFC Smart Poster Market Forecast............................................................. 92

4.5.1 Smart Poster Product Information Download Forecast.......................................... 92

Figure 4.16: Total Number of NFC Smart Poster Downloads
(m)  Split by 8 Key Regions 2011-2016          93

Table 4.1: Total Number of NFC Smart
Poster Downloads (m)  Split by 8 Key
Regions 2011-2016 93

4.5.2 NFC Smart Posters Total Fee Value....................................................................... 93

Figure 6.6: NFC Smart Posters
Total Fee Value ($m) p.a. Split by 8 Key Regions 2011-2016........ 94

Table 6.4: NFC Smart Posters
Total Fee Value ($m) p.a. Split by 8 Key Regions 2011-2016......... 94

Mobile Advertising: Campaigns & Market
Forecast

5.1 Introduction.......................................................................................................... 95

5.2 Mobile Advertising Campaigns......................................................................... 96

5.2.1 SMS Advertising Campaigns................................................................................... 96

5.2.2 MMS Advertising.................................................................................................... 96

i. Operators Move Towards Targeted, Opt-in Messaging............................................................................. 97

5.2.3 In-Content Download Advertising.......................................................................... 98

i. In-App Video Advertising................................................................................................................................. 98

a. Case Study: Coke Zero Facial Profiler....................................................................................................... 98

ii. Mobile TV and Video Advertising................................................................................................................. 98

5.2.4 On-Portal Advertising............................................................................................ 99

i. Banner Advertising............................................................................................................................................ 99

ii. Mobile On-Portal Search................................................................................................................................. 99

5.2.5 Ringback Tone Advertising................................................................................... 100

5.2.6 Apps as Advertising.............................................................................................. 100

5.2.7 Mobile Internet Advertising.................................................................................. 101

5.2.8 Idle Screen Advertising......................................................................................... 102

i. Case Study: Ford Taurus............................................................................................................................... 102

5.3 Mobile Advertising Drivers & Constraints................................................... 103

5.3.1 Drivers of Mobile Advertising............................................................................... 103

i. Audiences for Traditional Media Are Diminishing................................................................................... 103

ii. Brands Are Increasingly Pursuing Below The Line Strategies................................................................ 103

iii. Digital Budgets Are Increasing.................................................................................................................... 104

iv. Mobile is Personal......................................................................................................................................... 104

v. The Rise of the Smartphone......................................................................................................................... 104

vi. The Rise of the App Store........................................................................................................................... 105

vii. Increasing Mobile and 3G Penetration................................................................................................... 106

Table 5.1: Relative Reach of UK Media 2010.......................................................................................... 106

viii. ...Leads to Greater Mobile Internet Adoption...................................................................................... 106

ix. ... And Creates Exposure Opportunities................................................................................................ 107

a. Case Study: Barclaycard Waterslide Extreme........................................................................................ 107

Figure 2.1: Fishlab's Barclaycard-Branded Waterslide Extreme on the iPhone................................ 107

x. The Rise of M-Commerce............................................................................................................................. 108

xi. The Rise of Mobile Social Networking and Web 2.0............................................................................. 108

xii. Mobile Offers Location Awareness........................................................................................................... 109

xiii. Opt-In............................................................................................................................................................ 109

xiv. Advanced Targeting................................................................................................................................... 110

xv. Mobile Can Offer Detailed Metrics........................................................................................................... 110

xvi. Response Rates............................................................................................................................................ 110

5.3.2 Constraints on Mobile Advertising Growth.......................................................... 111

i. Privacy............................................................................................................................................................... 111

ii. Fragmentation................................................................................................................................................. 111

iii. Lack of Optimisation..................................................................................................................................... 112

iv. An App Is Not A Strategy!.......................................................................................................................... 112

v. Customer Retention....................................................................................................................................... 112

vi. Handset Dimensions..................................................................................................................................... 113

vii. Cost of Data Services.................................................................................................................................. 113

viii. Reach/Visibility............................................................................................................................................. 113

ix. Need for Converged/Planned Campaigns................................................................................................ 114

x. Relevance......................................................................................................................................................... 114

xi. Spam................................................................................................................................................................ 114

5.4 The Market for Mobile Advertising............................................................... 115

5.4.1 Mobile Advertising in the Economic Downturn.................................................... 115

i. Expectations for Mobile Advertising............................................................................................................ 116

5.4.2 Market Development: Key Assumptions by Mobile Distribution Channel............. 116

i. SMS/MMS Advertising..................................................................................................................................... 116

ii. MMS Advertising............................................................................................................................................. 116

iii. In-Content Download Advertising............................................................................................................. 117

iv. Mobile Internet Advertising......................................................................................................................... 117

a. Mobile Internet Search Advertising.......................................................................................................... 118

v. Idle Screen Advertising.................................................................................................................................. 118

vi. Ringback Tone Advertising......................................................................................................................... 118

5.4.3 Total Mobile Advertising Expenditure: Current Market & Forecasts.................... 118

Figure 5.9: Total Mobile Adspend ($m) Split by 8 Key Regions 2011-2016..................................... 119

Table 5.2: Total Mobile Adspend ($m) Split by 8 Key Regions 2011-2016...................................... 119

Figure 5.10: Adspend ($) Per Mobile Handset per Annum Split by 8 Key
Regions 2011-2016... 120

Table 5.3: Adspend ($) Per Mobile Subscriber Per Annum Split by 8 Key
Regions 2011-2016.. 120

Companies Referenced

5th Finger, Aircel, Amazon, Apple , Aruba Networks, AT&T, Augme Technologies, Aurora Fashions, BBC, Belle Tire, Best Buy, Blockbuster, Blyk, BP, Brooks Brothers, BSNL, BT, Citi, Clear Channel, Coca Cola, Comet, Commidea, Coors Brewers, CouponCabin, Day's Inn, DeviceFidelity, Digby, Eagle Eye Solutions, eBay, Facebook, Fancharge, FeliCa, Fishlabs, Ford, Gemalto, Giesecke & Devrient, Google, Groupon, Hipcricket, Hypertag, IMImobile, i-movo, Ingenico, JAGTAG, Jo-Ann Fabric and Crafts, John Lewis Partnership, JoS. A. Bank, Karen Miller, KFC, Kiip, LivingSocial, Macy's, MasterCard, Mcdonalds,  Meteor, Microsoft, MillerCoors, Millicom, Milo, Mobiqua, Mobitel, Movaya Wireless, MTN, MTS, Navteq, Nearbuy Systems, Nestle,  Nokia, Nordstrom, NTT DoCoMo, O2, Optus, Orange, Orange FT Group, PayPal, PayWizard, Pipistrel, Point International, Poynt, Proxama, QT, RBS, RedLaser, Reliance, Reuters, RIM, Safeway, Samsung, Scanbuy, SCVNGR, Seibu Group, SFR, ShareSquare, ShopKick, ShopSavvy, Siemens Networks, SingTel, Sky, Sony, Spotzot, Star TV, StubHub, Tata, Telefonica, Telefonica-O2, Telenor, Telia Denmark, Telmap, Tesco, T-Mobile, Toys R Us, Twinlinx, Twitter, Venda, Verifone, Virgin, Virgin Active, Virgin Mobile, Virgin Money, ViVOTech, Vodacom, Vodafone, Walmart, Watchdata, WHERE, WIN Plc.,Yahoo!

Extra Info

‡ 8 key regions includes:

North America, Latin America, Western Europe, Central & Eastern Europe, Far East & China, Indian Subcontinent, Rest of Asia Pacific and Africa & Middle East.

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Key Questions

1.     What are the key strengths of mobile as a retail channel?

2.     What mobile marketing strategies are used today by leading "bricks and mortar" and online retailers?

3.     What are the underlying drivers and constraints of the mobile retail market and what are the emerging "game-changers"?

4.     How much is the mobile retail market worth today, by how much will it grow by 2016?

5.     What is the future of mobile couponing? What sort of targeting will increase redemption rates?

6.     How will NFC affect the mobile shopping experience?

7.     What are the primary distribution channels for mobile advertising?

 

Any Questions about this report please contact us.

 

Related Reports:

The Mobile Retail Marketing Briefing

Related Categories: Mobile Content & Applications

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