Despite rapid adoption of the iPad and other tablet computers, 59 major retailers surveyed by Forrester Research for Shop.org will allocate on average only 3.9 percent of their total interactive marketing budgets this year to mobile advertising.
The data point was one of several findings in the 2012 State of Retailing Online survey Forrester produces for Shop.org, the digital division of the National Federation of Retailers.
“Retailers have been apprehensive about committing to bigger mobile commerce and advertising budgets because consumer behavior and the device landscape are changing so quickly,” said Forrester Research Vice President and Principal Analyst Sucharita Mulpuru. “E-commerce on desktops and laptops took time too. But eventually, we expect that retailers will grow their mobile marketing budgets to address the fact that the mobile channel has unique aspects, like location-triggered messaging, that can be compelling ways for brands to connect with shoppers.”
Tablets like the iPad generated 3.2 percent of respondents’ online transactions in 2011, compared to 1.5 percent for smartphones. While the numbers are small, Forrester is forecasting 60 million American will own a tablet computer by the end of the year, while its competitor IDC expects tablet computer shipments to grow 54 percent worldwide. Moreover, nearly half the survey respondents reported their average order value via a tablet computer is now higher than traditional web sales.
“Retailers must continue to look for unique ways to elevate their brand in such a competitive market. Tablets and mobile devices offer the perfect answer, with opportunities to create specialized apps, drive web sales and create an engaging and convenient shopping experience,” said Shop.org Executive Director Vicki Cantrell. “Overall, we expect smartphone shopping adoption rates to stay low but fully believe tablet sales will continue to change how retailers garner the attention of new and current customers.”
