3Q &
KCDMA
The State of the State for 2015
and Beyond
What are we talking
about today?
• Market Overview
• The growth of mobile advertising
• mCommerce: how do we really buy
on our phones?
• Mobile Web vs. Native App: what
does it mean for shopping?
• How to optimize mobile for
holidays – Q&A
3Q Digital
Hi!
3Q Digital
Just like pants, we all put our phones on in the same way…
Source: http://www.jeffbullas.com/wp-content/uploads/2015/02/mobile-marketing-trends-1.jpg
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The Rise of Mobile:
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The Rise of Mobile:
YoY January investment by device – lead generation-focused
client
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The Rise of Mobile:
2014 – large top-line conversion growth driven by mobile
Mobile now accounts for 29% of eCommerce in the US and 34% of global transactions. It is
expected to rise to 33% and 40% respectivelySource:
by EO
2015.*
http://www.criteo.com/resources/mobile-commerce-q1-2015/#sthash.tI6VgZlw.dpuf
3Q Digital
The Players Have Changed
• Twitter – 80% of Twitter’s 284 million monthly
users access via their mobile device
• Pinterest – 75% traffic comes from mobile.
Introduced app Pins accessible via iPhone or
iPad
• Tumblr – 65% of user base accesses content on
a mobile de vice
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300 BILLION
apps have been
downloaded
since the launch
of the App Stores
What are our expectations of our phones & tablets?
Utility
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Productivity
Entertainment
Trends for 2015
Engagement &
Personalization will rule
We must stop asking, Is
this the year of mobile?
Instead, we need to look
deep and say, how badly
will my brand suffer this
year because we aren’t
mobile?
Mobile ad revenue and
demand will only increase;
the arms race is on, and
there will be only a few
winners and many, many
losers
Consolidation. Hey, it’s still
complicated
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The Mobile Ad Landscape: Well, this looks simple, right?
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Amid this mess, where do you find your mobile customers?
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Android Overtakes iOS
But remember that iOS is going to be where your commerce bread is
buttered!
Source: Opera Media Works Q1 2015 Report
3Q Digital
What are consumers doing on their phones while
second screening? You’d be surprised…
Source: http://www.nielsen.com/us/en/insights/news/2014/living-social-how-second-screens-are-helping-tv-makefans.html
3Q Digital
It’s almost 2016. What isn’t Mobility disrupting?
•
Native Apps are starting to dominate Automotive – Just check out Edmund’s app
•
B2B Mobile is no longer an afterthought, it’s essential
•
Retailers embrace showrooming & the sky isn’t falling; It’s ‘webrooming,’ the mobile assisted shopper
•
Drugstores provide much needed utility to customers through their phones
•
IoT: Our toys are beginning to provide function and now we need to earn trust on a 38MM screen
•
QSR, Food & Beverage transform mobile loyalty into loyalty-and-customization-everywhere
•
Google, Facebook, Twitter & Pinterest are all rolling out ‘Buy Now” buttons
•
Retailers acknowledge that mobile and omnichannel are now table stakes – what are their innovation
strategies to always stay one step ahead of the curve?
•
CRM, Personalization, Measurement & Analytics become the back bone of any true mobile
experimentation
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The Big Question: We’ve got news for you, it ain’t just Mobile
Over the past
four years,
usage on all
device types
has grown,
desktop
included. So
mobile has not
grown not at
the expense of
desktop, but
rather in
addition to it.
- Kristine
Schachinger
Source: http://searchengineland.com/mobile-search-need-perspective-222386
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The Big Question
Pre-2014
Post-2015
Should I do mobile?
What is my mobile revenue strategy?
Are my customers really there?
My customers are using my competitors
What’s my WAP site?
App, mWeb, Desktop + Something
special
What banners should I buy?
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DSP, DMP, CPI, Networks, Native, Costper-engagement
Let’s talk about apps…
Mobile App Install Revenue is Roughly 30% of the Entire
Mobile Ad Market
Source: Business Insider Intelligence: The Mobile App-Install Ad Report 1.26.15
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When it comes to app installs and mobile ad revenue, who are the
biggest and best players?
Then, there’s EVERYONE ELSE!
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But the challenges remain the same:
• Discovery
– Creative Messaging & Audience
Targeting
• Crowded Ecosystem – Differentiation
• Retention – 66% of app users open an
app between 1-10 times only
• Measurement – 67% start shopping on 1
device and continue on another
• ROAS and cost
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Source:Number of appsasof JuneandJulyfor AppleandAndroid,respectively;Nanigans’clientresultsasof October2012;
Facebookinternal data for Q2’2013andAppAnnietop grossing appslist endof Q2’13; Localytics,July2013.
How are brands buying app installs?
•
•
•
•
•
•
CPI
CPD
CPC
CPM
CPP
CPL
We lean on these methods, but
we lean forward into a CPQE
model (cost-per-qualifiedengagement)
3Q Digital
And how much do they cost? (Hint: it’s only going up)
Mobile App User Acquisition Costs
Because install ads perform well
and have a clear ROI, they are
popular among marketers, and the
demand means they are more
expensive than other formats.*
(Source: Business Insider Intelligence: The Mobile App-Install Ad Report 1.26.15
Fiksu Coster Per Install Index)
3Q Digital
It’s not about just acquiring users. What is unique enough to make them loyalists?
Read: What is so compelling that a user will open your app more than once?
Source: Liftoff Mobile App Engagement Index Q4 2014
3Q Digital
Liftoff Mobile App Engagement Index Q4 2014: Social, Commerce, Finance & Travel
• Companies spent an average of $9.45 to acquire a registered user from mobile app install ads
• CPAs for non-transactional post-install events, including registering and sharing, decreased in
December, while CPAs for transactional events (making a reservation, purchasing, and
subscribing) increased
• The cost to acquire a registered user on iOS was 23.4% more expensive than on Android
Source: Liftoff Mobile App Engagement Index Q4 2014
3Q Digital
The difference between iOS & Android
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eCommerce Example
Analysis:
•
The install-to-registration rate for new users
of eCommerce apps was 70.6%, and the
install-to-first-purchase rate was 2.3%
•
The median cost to acquire a first-time
purchaser from app install ads was $167.13,
with a range of $30 to $400
•
In eCommerce apps, we see a significant
drop-off from registration to first purchase.
This is likely due to friction around paying on
mobile
Source: Liftoff Mobile App Engagement Index Q4 2014
3Q Digital
The Hard Truth About YOUR App
70% of apps fail
Assume that your app will fail and work like hell to avoid it
Optimization is key – “In the world of mobile applications, there
are no user manuals, and the consumer is expected to know how
to use an app the second they download it.”*
Paid Acquisition is not BS, but you must get it right to make it
truly work for your brand
(Source: Mobilemarketer.com)
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Of Course, It Means Nothing If You Don’t Measure!
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Planning: Best Practices
For marketers responsible for building a profitable mobile user base,
there are several things you can do to align your paid media mobile to
your revenue goals:
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–
Map out the key conversion events inside your app/site that align with
your revenue goals
–
Track conversions by campaign including ad creative, placement, and
user demographics
–
Profile users who successfully complete high-value post-install events,
and use this data to perform lookalike targeting in future app-install
campaigns
–
Use real-time bidding and programmatic buying to target ads on a peruser basis and maximize your marketing spend
3Q’s Mobile Approach – Get It Right From the Start
•
•
•
•
•
What is the GOAL of your mobile business? Establish
this early, and always be agile and iterative. Your
goals will change!
#1 thing you can do to have a successful app is to
MAKE IT GOOD! Sucky apps, well, they SUCK!
Competitive analysis – what are your competitors
doing right and wrong? You do not need to reinvent
the wheel
Get enough users to monetize (again, goes back to
goals)
Make sure that they’re the RIGHT kind of users to
monetize well!
3Q Digital
Concluding Thoughts
•
•
•
•
•
•
Lots of factors to consider
Mix of paid, owned and earned
Fully embrace owned and earned as you begin paid
Consider launching around new phone/OS updates
You must be bi-OS, but concentrate on where your users are
Creative, placement, app store ranking, optimization – these
all matter. Do not underestimate
• Don’t chase good money after bad; don’t spend a lot of
money buying bad users
– Spend good money at an optimal price buying qualified
and engaged, lucrative users
3Q Digital