The retailer is running mobile banner ads within Pandora to promote the new campaign. In addition to driving consumers in-store, the company is also giving away tickets to several lucky winners to go and see the Versace for H&M event in New York.

“Retail locations are where transactions occur and tapping mobile to alert nearby consumers about a special offer or new product announcement is a very good idea,” said Wilson Kerr, director of business development and sales at Unbound Commerce, Boston.

“As such, special offers and announcements can be targeted at consumers who, by their actual real-time location, are far more likely to act upon that message, visit a store and convert a purchase,” he said.

Mr. Kerr is not affiliated with H&M. He commented based on his expertise on the subject.

H&M did not respond to press inquiries.

New collection
Mobile ads highlight the upcoming Versace for H&M collection are meant to get as many consumers as possible in-store to see it in person.

The company is also adding an incentive – tickets to an event to preview the collection – to get consumers enticed and give them a reason to click on the ad.

The H&M ads also let consumers sign up for the company’s newsletter and are a good way for the retailer to remarket to its opted-in consumers in the future.

“There are more Web-connected devices in the U.S. than there are people,” Mr. Kerr said. “Mobile is everywhere and people use their smartphones while they shop.

“According to Google, 78 percent of consumers prefer a mobile commerce Web site over an application they have to download,” he said. “Retail and mobile are converging and mobile already is in-hand.”

Past endeavors
H&M is no stranger to mobile.

Last year, the company promoted its new collection within the MyTown iPhone application.

The MyTown game enabled players to unlock rewards and earn points by checking-in from real-world shops and locations (see story).

Additionally, H&M was able to raise interest in its new Spring collection, “The Garden Collection,” and drive traffic both in-stores and on the mobile site via a multichannel mobile campaign (see story).

“As long as a retailer has online sales capability, they should actually make more margin by selling products through mobile commerce, since items do not have to be stocked and, as such, inventory problems are sidestepped,” Mr. Kerr said.

“Items can be shipped to the consumer or made available for in-store pickup, after the mobile commerce sale has been converted,” he said.

Final Take
Rimma Kats is staff reporter on Mobile Commerce Daily, New York