Digital retail marketing spend is set to double from $174 billion in 2015 to $362.1 billion by 2020, according to new data from Juniper Research. The study predicts that whilst the digital retail marketing industry will continue to be dominated by advertising revenues, coupon contributions will see strong growth – driven by the rise of Bluetooth beacons.

Beacons, which locate a smartphone using Bluetooth technology, use transmitters to push pertinent content and information to devices which have Bluetooth enabled. A number of leading US retailers have implemented beacon networks, including Macy’s, who has installed more than 4,000 across its stores.

The report, ‘Digital Retail Marketing: Coupons, Advertising & Consumer Engagement 2015-2020’, forecasts that almost 1.6 billion coupons will be delivered annually to consumers via beacon technology by 2020. This is an increase from just 11 million this year, as retailers seek to develop proximity marketing campaigns throughout their stores.

The Juniper study also explores the shift towards hyper-personalisation. A number of retailers are already using this method to create individualised customer engagement, including Netflix, who claims that recommendations made via hyper-personalisation data accounted for 60 per cent of its rentals in 2014.

Lauren Foye, author of the Juniper research, noted: “Beacons are set to provide a boost to retailers, as we see major players promote in-store offers and deals through mobile devices, targeting consumers while they are shopping. Coupled with loyalty schemes and rewards, retailers have clear potential to monetise those setting foot in their stores.”

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