The mobile retail market is set to exceed $12 billion by 2014, driven by one-to-one marketing and the rapid uptake of smartphones, a report from Juniper Research claims.

The researcher found that the mobile retail sector – defined by Juniper as comprising mobile coupon redemption values, smart poster fees and advertising expenditure – would initially be dominated by coupons. However, it noted that mobile advertising expenditure would exceed coupon redemption values by 2013 as digital adspend is increasingly transferred into the mobile space.

Increasingly, the retailing industry and brands are becoming aware of, and implementing the mobile device into the retail cycle. Report co-author, Howard Wilcox, said: "Retailers have recognised that, even ahead of their wallets, people will usually make sure they do not leave home without their mobile device. The mobile channel offers merchants the opportunity to differentiate from their competition and acquire customers that become loyal."

Meanwhile, additional factors such as the growth of the mobile web, the availability of high speed mobile broadband networks, and the ever-growing usage of SMS were offering retailers, brands and merchants new opportunities to communicate with customers and potential customers and to offer the ability for them to shop by mobile.

Other findings from the Juniper report include: 

• For brands and retailers, mobile offers the ability to change campaigns quickly (for example by time of day), and crucially the ability to track the success and customer acquisition rates.
• Usage of the mobile in a live shopping situation can be particularly effective – for example for product price comparisons.
• While the mobile will be an effective channel for younger users who organise their lives around their mobile phones, older demographic groups are likely to be less receptive to using their mobiles in a retail situation.

The Mobile Retail whitepaper and further details of the study ‘Mobile Marketing & Retail Strategies: Advertising, Coupons & Smart Posters 2009-2014′ can be freely downloaded from www.juniperresearch.com