Beacons and proximity marketing programs are set to impact $7.5 billion in U.S. Millennial spending this holiday season, according to data from inMarket, the world’s largest beacon proximity and location intelligence platform.
Beacons are BLE devices that connect with partnered mobile apps that are in proximity, even if the app is closed and the phone is in the user’s pocket. inMarket’s beacon platform reaches a ComScore-verified 38 million monthly shoppers in thousands of U.S. retail locations— including retail’s largest beacon deployment at thousands of individual stores.
Millennials spend an average of $600 billion per year in the U.S., and are expected to spend $1.4 trillion per year by 2020. inMarket currently reaches 15% of U.S. Millennials, and 38% of U.S. millennial moms through top beacon-enabled apps including CheckPoints, List Ease, Epicurious, Viggle and Favado.
The opportunity for brands to reach shoppers via mobile proximity goes well beyond the holidays. As U.S. food and beverage companies have lost $18 billion in market share over the past five years, many are turning to mobile to generate new revenue streams.
In 2015, the top five product categories to benefit from in-store proximity engagements were:
Over the Counter (OTC) Medication
Wine & Spirits
Category rankings are based on average incremental spending driven with inMarket proximity campaigns in 2015. inMarket has worked with hundreds of major brands since its launch in 2010.
“We live in a mobile-first world, and it’s up to marketers to stay in front of their audiences across channels. Our mobile proximity platform is a conduit to reach Millennials with relevant messaging at key points in their path to purchase,” said Kevin Hunter, president, inMarket. “We saw a lot of test-and-learn across various industries in beacon tech in 2014 and early 2015. Now, we are seeing the savviest marketers benefit from hypertargeting and contextual mobile experiences for consumers, both in-store and before she shops.”