Worldwide ownership of smartphones has doubled in the past year and Ireland is no exception to the growth. Nearly half of all Irish adults now own a smartphone and this is only going to increase. But what does this mean? Well for consumers, it means everything. Red C’s Trendsetters study point to smartphones and consumers going everywhere together. One person was quoted as saying: “I feel lost without it – it makes my life convenient and means that I always have a great source of information and entertainment at my fingertips”.

With this strong attachment comes an opportunity for marketers to speak clearer, louder and more directly to customers and potentially more importantly, non-customers. So what is acceptable and unacceptable to consumers? How much is too much? More importantly, what information and news do they actually want to receive from brands on their smartphones?

Internet users in Ireland spend an average of 20 hours online per week, compared to 18 hours globally and 29 hours in Western Europe, with six hours spent on social media sites. This extensive browsing provides marketers with a huge opportunity to connect directly with consumers in a real-time environment. From web-browsing to apps to push notifications, we have found that savvy smartphone users are already familiar with the current ways we speak to them and, for the most part, are willing to play the game, albeit to an extent.

Trendsetters tells us there is a thin line between getting the information consumers want and blanket location-based marketing, a concept cautiously regarded by smartphone users. Sample quote: “I could be walking 20 metres from a restaurant with a great meal deal and not realise it, but if they could contact me as I’m walking by, that would be great. The problem I can see is that if every business in the city had this type of marketing, then you would not be able to take two steps down a street without your phone hopping mad.” The dilemma for marketers – how do we tap into what consumers want without generating chaos?

What’s the compromise? They would like marketers to become smarter, so the technology used can identify when they are looking for information and then for marketers to send them details which they actually want there and then. For instance, if a consumer uses a search engine to look for restaurants in a particular area, they welcome being contacted and would be more than happy to receive alerts from a restaurant on in their search area on deals etc.

Similarly, if they searching for a particular product online, they want brands to communicate with them and tell them how to find it – what stores stock their brand locally and if it is available.

If communications are relevant, then consumers will listen, but if they are bombarded with information when they are not looking, they will ignore messages.

CONSUMERS LOVIN’ IT Fast food giant McDonald’s has embraced mobile marketing in Ireland. The potential for retailers and entertainment outlets is considerable as smartphones are used as a wallet.

Ultimately consumers are relying on their smartphones to make their lives easier. They want their smartphone to turn on the heating before they get home, hook their phone up to their fridge and cupboards so they can see what stocks they have and tell them what meals they can make during the week from the foods they have just bought. They want their smartphones to manage their daily routines, so the opportunities are there for marketers to make life easier.

Where does the future lie? We already know that the smartphone is reducing the weight of the lady’s handbag nationwide. It is being used as a phone, camera, diary, mirror, shopping list, book, radio, MP3 player, map. Next on the list the wallet. Cash, credit cards, bus/train tickets, loyalty cards, membership cards can all potentially be replaced with enthusiasm.

The first step to the wallet replacement has already been made. One in three Irish adults are already using mobile banking with another 39 per cent willing and wanting to use it, if it were available to them. Moving one step further to the actual mobile wallet – one in every four smartphone users worldwide are using a mobile wallet, with 62 per cent of Irish consumers currently using, or willing to use, their phone as their wallet in the near future.

So how do we move this forward? First and foremost, we need to reassure consumers that it is safe. Security is key to the widespread adoption of the mobile wallet. Consumers expect their mobile providers and banks to guarantee the security of their money and more so, they expect it to be tried and tested before they will take the leap. They want to make sure their mobile wallet is safe in the event they lose their phones – a common occurrence in Ireland.

The potential for smartphones as a marketing tool is sizeable. Irish consumers are open to communication from brands on their smartphones where it can provide instant, relevant and of real immediate benefits. But avoiding a deluge of push notifications and location-based messaging is key to achieving proper brand engagement.

ciara.durkan@redcresearch.ie

Ciara Durkan is an associate director at Red C Research & Marketing