Mobile Update: Black Friday

The first wave of information is in regarding mobile’s role in Black Friday/Cyber Monday revenue.  Below are some highlights.

The biggest news was that mobile revenue was over $1 billion by the end of Black Friday. That was a 33% increase from last year.  The most optimistic projections had revenue over $1 billion by the end of Cyber Monday.

PayPal reported that one-third of all payments on Black Friday were from smartphones.

Walmart reported that on Black Friday 70% of their online traffic was mobile. Target stated on Black Friday 60% of their online traffic was mobile.

On Thanksgiving, mobile revenue accounted for 40% of all sales and 57% of traffic. (MediaPost)

Amazon reported that mobile revenue on Thanksgiving topped last year’s Cyber Monday.

A very impressive week for mobile commerce.    Companies will continue to develop their mobile commerce platform.  Mobile’s advantage is the online buying cycle.  The consumer already uses mobile first to compare prices and check reviews.  Companies need to take advantage of those habits and help the consumers take the next step.  Consumers have always been ahead of companies in the demand for easy to use mobile commerce platforms. Companies need to catch up to smartphone users requests for the simple reason there is over $1 billion on the table.

Macy’s: They went to JC Penny

Urber Media published some interesting cross shopping affinity analysis.  It showed that Macy’s customers are twice as likely to visit a JC Penney location than Kohl’s.  Why is this important?

First, it shows that mobile advertising agencies are getting smarter about how they use their data.  Data is the real currency of mobile marketing.  Increasing CTR and ROI are very important and drive business.  But collecting data that the client can use for a cross-platform online/offline campaign is almost as valuable as a sale.

A campaign can be set up where Macy’s geofences all their locations (lat-long).  Captures the ID of all smartphones in store.  Places ads in apps.  Then places IDs of users that clicked on the app in a retargeting folder.  This retargeting folder is key as a separate campaign can be run to the captured IDs only.  These users have already expressed an interested in the offer and are at least 2x more likely to act on a purchase then a user that has not clicked on the banner.

But with the data like the type that Urber Media provides, Macy’s can now run a campaign targeting all JC Penney locations and place Macy’s ads in mobile apps on smartphones in a JC Penney store.  Then collect all the IDs of smartphone users that clicked on the ad and place them in a separate retargeting folder.

Why JC Penny?  Because in a Urber Media study that compared other retailers JC Penny was the most likely retailer that Macy’s customers would shop.  In comparison, Macy’s customers were twice as likely to be at a JC Penny then a Kohl’s.

The ability to target smartphone users in a set location and drill down to demographic is important but we should not overlook that the data collected can be used for retargeting and making offline advertising more efficient and effective.