Navigating the Pitfalls of Digital Advertising: Why Retailers and Brands Need a New Approach

As digital consumer behaviours evolve, so do the challenges faced by retailers and brands in their advertising efforts. Despite increased investments in digital ads, email, and SMS marketing, many companies struggle with diminishing returns due to saturated platforms and soaring costs.

This blog examines these hurdles and introduces a strategic pivot to Apple and Google Wallet push notifications—a cost-effective, direct, and impactful alternative.

The Challenges of Conventional Digital Marketing:

  1. High Competition and Ad Fatigue: Digital spaces are crowded. The average consumer sees over 5,000 ads per day, leading to ad fatigue. This saturation makes it increasingly difficult for any single message to stand out, reducing the overall effectiveness of online campaigns.
  2. Rising Costs: The cost of digital advertising is climbing. Platforms like Google and Facebook have seen significant increases in advertising costs over recent years, squeezing marketing budgets and forcing brands to seek more cost-effective avenues.
  3. Low Engagement with Emails and SMS: While email and SMS were once kingpins in direct marketing, open and engagement rates have declined. Consumers are overwhelmed with messages, leading many to ignore or unsubscribe from email lists and SMS alerts, reducing their viability as standalone marketing strategies.
  4. Difficulty in Tracking ROI: Measuring the exact return on investment (ROI) from broad digital campaigns can be elusive. Many brands struggle to link specific sales or engagement back to individual ads, making it challenging to justify ongoing or increased ad spend.

The Solution: Push Notifications via Apple and Google Wallets:
Brands can easily distribute content via promotions or digital loyalty cards in the mobile wallet these days. This is achieved with platforms like Litecard supporting pre-built Point of Sale (POS) and Customer Relationship Management System (CRM) integrations such as Shopify, Salesforce, ERPLY, Teamwork Commerce, Apparel21 and more. Using this technology, brands can achieve:

  1. Direct and Personalised Engagement: Unlike traditional digital channels, push notifications through mobile wallets allow brands to bypass the noise. Notifications appear directly on a user’s phone screen, providing a direct line of communication that is both immediate and personalised.
  2. Cost-Effectiveness: Sending a push notification via a mobile wallet incurs significantly lower costs (with the right provider) than sending SMS or email blasts, not to mention the high costs associated with paid digital ads. This makes it an economical choice for ongoing customer engagement.
  3. Increased Open Rates: Wallet notifications boast impressively high open rates compared to emails and SMS. This is due to the non-intrusive yet prominent nature of these notifications, which are perceived as timely and relevant by recipients.
  4. Seamless Integration of Offers and Vouchers: Distributing vouchers and special offers via mobile wallets not only ensures that these deals are seen but also stored conveniently on the user’s device. This increases the likelihood of redemption, directly driving sales.

Statistics: According to MobIndustry, in the retail and eCommerce sector, push notifications are almost 2x more effective than SMS and 14x more effective than email marketing.

Wrap up: For retailers and brands facing escalating costs and diminishing effectiveness of traditional digital advertising, email, and SMS – Apple and Google Wallet features such as push notifications offer a compelling alternative. This approach cuts through the digital noise, delivering personalised, direct, and cost-effective marketing solutions. Now brands can continue the conversation and create a 1-to-1 conversation with new and existing customers.

Is your brand ready to revolutionise its marketing strategy? Contact Litecard today to harness the power of mobile wallet technology and drive real engagement and returns from your marketing efforts.

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