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BizReport : Ecommerce archives : December 30, 2016

Retailers: Trends that will impact you next year

One expert believes there are three trends that will impact where retailers need to put their advertising dollars in 2017 - chatbots, in-app spending, and data. Here's why.

by Kristina Knight

The Chatbot Opp

"With Facebook leading the charge, chatbots finally mainstreamed in 2016. Among retailers and advertisers, mobile chatbots have been a hot topic. They're increasingly perceived as an alternative to apps for brands as they're not challenged by some of the discovery issues in app stores. They can also work across platforms and mobile devices by integration with popular messenger services. Chatbots signal a unique new form of "one-to-one" communications between brands and target audience. They reflect a more conversational and personal approach to commerce and engagement that consumers seem to crave more than ever. And as their capabilities grow in 2017, driven by companies like Facebook and Microsoft, we could be poised for a surge in end-user adoption," said Nels Stromborg, EVP, Retale.

In-App Spend

"Doom and gloom are common themes in advertising - but ad fraud and viewability are the real deal. The World Federation of Advertisers reported that marketers could waste more than $50 billion a year by 2025 due to endemic bot fraud. On the viewability side, even Google admits that nearly 60% of the ad impressions served across its network are never seen. The key distinction here, however - these numbers are largely focused on desktop display. Mobile is primed to benefit as marketers continue to be concerned about fraud and viewability issues on PCs. In-app advertising will especially see growth given its built-in advantages in safeguarding against bots and viewability. (Examples - app store vetting, user registration data collected at download, in-app ads can be seen without scrolling, etc.)," said Stromborg.

Data Activation Challenges

"Retail marketers have a love affair with data. They're collecting, analyzing and optimizing customer data. But, the challenge isn't necessarily in these areas. Now, retailers are faced with difficult task of activating against that data - implementing it to improve their business and grow revenue. Retailers want to have a "one customer view" through their datasets, isolating and predicting the buying behaviors of customers across channels, as well as the best media channels to reach those customers most efficiently. This is another way to streamline operating costs and develop more efficient go-to-market strategies," said Stromborg.

Tags: retail predictions, retail tips, retail trends, Retale

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