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IN BRIEF
Mobile phones to be ‘fourth
Online advertising
channel’ for retailers
sales house opens
Mobile phones are quickly joining physical stores, websites and
catalogues as an important retail channel, a new study by
Cisco IBSG has found. branch in Dublin
The company’s third annual e-commerce study suggests
that mobile devices represent a major growth opportunity for Significant
the retail industry and will become a ‘fourth channel’ for rev-
growth in Ire-
enue. This new channel is being bolstered by the rise of social
land’s online
advertising mar-
networking and advanced mobile technologies, which have
ket has prompted
redefined the online experience and are enabling retailers to
a major UK new
capture new sources of revenue by implementing mobile
media advertis-
strategies. ing firm to estab-
The study showed that 42pc of retailers provide the ability to
lish an Irish pres-
view product information on a mobile device through reformat-
ence. Online
advertising sales
ted web pages or specific mobile pages. Some 15pc offer the
house eType has
ability to purchase or complete inventory queries via mobile
launched here
handsets, while 10pc are using SMS to provide information or as a partnership
answers to customers’ queries. Some 6pc have web pages
between Visual-
and a URL specifically designed for mobile use.
ise and UK-based
Media Initiatives
“Mobile presents a revenue opportunity for retailers and
Group (MIG).
opens up a new era of multi-channel retail,” said Dick
The Irish online
Cantwell, vice-president of IBSG’s Retail/CPG Practice. “Multi-
advertising mar-
channel retailing has morphed into a web of shopper touch- ket showed 65pc
points across stores, catalogues, mobile devices and the inter-
growth in revenue
net. Retailers must start offering shoppers an ‘interconnected
in 2007, accord-
ing to the Inst-
shop’ if they are to take advantage of the mobile opportunity.”
itute of Advert-
The Cisco IBSG study assessed 45 retailers from North
Ciaran FitzGerald ising Practition-
America and Europe. It found that the top 10 overall ers in Ireland.
e-commerce sites were
Amazon.com, Best Buy, Sears, Circuit
The internet advertising market in the UK is predicted to
City, Quelle, Otto, Macy’s, FNAC,
Bol.com and Argos Home
overtake TV in revenue within the next few years and similar
growth is expected in Ireland, said eType Ireland’s managing
Retail Group.
director Ciaran FitzGerald.
Forrester Research estimates that online sales will reach
The company will be chaired by Michael Quilty, who has had
US$204bn in 2008 and US$335bn by 2012. E-commerce
a 25-year career in advertising both in Ireland and abroad.
accounts for 6pc of all retail sales in the US.
Mobile social networking — the next big thing?
Mobile access to social networking sites is on the increase in France, Spain and Germany, but on a par with the US, where
Europe and the US, with close to 2pc of mobile subscribers in 4.1 million people or 1.6pc of the total mobile subscriber base
many countries logging on via their handheld device. now access sites like Facebook and MySpace using their
In the UK, some 810,000 mobile subscribers, or 1.7pc of all phones.
mobile users in the country, visited social networking sites via In the US,
MySpace.com, the leading social networking site
their phone during the first quarter of this year, Nielsen figures among PC users, is also the most popular mobile internet social
indicate. networking site. The site logged 2.8 million unique mobile users
This was twice as high as in major European countries like in December 2007.
10 Marketing Age May/June ’08e
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