Consumer Spend on Mobile Hits Record Levels in Q1 2020

Consumer Spend on Mobile Hits Record Levels in Q1 2020

Mobile

On April 1, I blogged about some trends in mobile behavior based on a 2020 App Annie State of Mobile report. As if on cue, App Annie then revised its report to note the incredible surge in mobile usage during the first quarter of 2020 as people have practiced social distancing on a widespread scale. These numbers should convince businesses to invest in mobile advertising now more than ever:

  • Q1 2020 was the largest-ever quarter in terms of consumer spend on apps: $23.4 billion.
  • The number of new app downloads in Q1 totaled 31 billion, a 15 percent increase over the fourth quarter of 2019. As Tech Crunch reported, “That’s notable, given that the fourth quarter usually sees a big boost in app installs from holiday sales of new phones, and Q1 managed to top that.”
  • The United States and China were the largest contributors to consumer spend on the Apple iOS operating system.
  • Users of the Google Android operating system spent the most on games social, and entertainment apps, in large part due to Disney+ and Twitch.
  • The Top Five apps worldwide for Q1 based on downloads and consumer spend: TikTok, WhatsApp Messenger, Facebook, Instagram, and Facebook Messenger.

All of that time people devote to managing their lives with mobile devices creates opportunities for businesses to engage with customers. The key is to create a sustained presence and to be mindful of using tone appropriate for the times we’re living in right now.

At True Interactive, we have deep experience helping businesses thrive on mobile. For instance, for Snapfish, we launched a digital media campaign that combined major platforms such as the Google Display Network with mobile-centric display networks that serve up ads to consumers on mobile devices. Revenue from mobile app installs grew 343 percent year over year during the holiday season. Mobile app installs grew 23 percent during the same period. Overall, Snapfish saw a 756-percent return on ad spend. Meanwhile, Snapfish saw a 56-percent decrease in costs per install.

For more insight into our work with Snapfish, read this case study. For more insight into responding to the surge in mobile activity, check out my recently published blog post, “Why Mobile Will Power Your Marketing Future.”

Contact True Interactive

Mobile is where the action is. Are you getting in on it? Contact us.

Photo by Rob Hampson on Unsplash

Why Mobile Will Power Your Marketing Future

Why Mobile Will Power Your Marketing Future

Mobile

For businesses, engaging with mobile should not be a matter of if, but when. And according to App Annie’s The State of Mobile 2020 report, sooner is better than later. The report underscores how important it is for businesses to connect with their customers on mobile. Here are some stats that resonate:

Mobile Is a Way of Life

  • According to the report, consumers downloaded a record 204 billion apps in 2019. Annual downloads have grown 45 percent in the three years since 2016, and six percent year over year. As App Annie points out, this growth is especially impressive because it excludes re-installs and app updates.
  • Also of note: in 2019, people spent roughly three hours and 40 minutes a day on mobile, a 35 percent increase over 2017.

People Are Spending on Mobile Apps

  • Consumers are opening their pocketbooks to engage with mobile—and not just with games. App store consumer spending hit $120 billion in 2019, up 2.1 times from 2016. Although games comprise 72 percent of all app store spend, subscriptions in non-gaming apps leapt from 18 percent share in 2016 to a solid 28 percent in 2019.

Mobile Is Where People Go to Be Entertained

  • Time spent on sports apps such as ESPN grew by 30 percent from 2017 to 2019.
  • Mobile gaming is, hands down, the world’s most popular form of gaming. In 2019, mobile games enjoyed 25 percent more spend than all other gaming combined.
  • New entrants like Disney+ are heating up consumer interest—and competition—in the streaming industry. For right now, consumers seem happy to double-dip: close to 25 percent of Netflix’s iPhone users also used Disney+ in Q4 2019, for example. That’s the highest overlap of users among top video streaming apps in the United States.

YouTube and TikTok Are Exploding

  • YouTube enjoyed a staggering 980 percent growth in worldwide active users from December 2017 to December 2019. And as we recently blogged, the platform is an advertising giant, to boot.
  • App Annie calls it the “TikTok Tidal Wave”: time spent on TikTok, which as a social networking app and entertainment source poses a double threat, grew 210 percent year over year in 2019. TikTok is also drawing interest from brands; as we have noted, the platform is an ideal place to demonstrate a lighter side through funny videos or challenges.

Social Media on Mobile Is as Strong As Ever

  • Social isn’t going anywhere. App Annie notes that 50 percent of time on mobile is spent on social and comms apps like Snapchat. As a result, apps like Snapchat are thriving: as we recently blogged, Snapchat continues to grow, even in a competitive landscape.
  • Meanwhile, use of Nextdoor has grown 65 percent from December 2017 to December 2019 in the United States, demonstrating an interest in social networking at a local level.

Gen Z Is Rocking Mobile

  • Gen Z are digital natives, and as such lead all other demographics in terms of mobile use. According to the App Annie report, Gen Z has 60 percent more sessions per user in top apps than older demographics. And 98 percent of Gen Z own a smartphone.

Implications for Businesses

  • If you are advertising on mobile already, don’t put your advertising on pause during the coronavirus pandemic. Phone carriers such as AT&T are reporting a surge in mobile usage as more people work from home.
  • That said, you may find yourself adapting your mobile campaign at this time: say, by discussing community building activities that will keep your brand front of mind when the crisis subsides. Sensitivity to the current crisis is key. And patience. Elijah Whaley, the CMO influencer marketing agency Parklu, notes of brands who proceed carefully and wisely through the coronavirus era, “When [consumers] start spending again they are going to spend with you.”
  • Capitalize on YouTube and TikTok. These apps are only going to increase in popularity as more Gen Zers come of age. TikTok is just sorting out its ad products, but, as we’ve noted, YouTube already offers strong advertising options.

Contact True Interactive

Mobile is where the action is. Are you getting in on it? Contact us.

Photo by Daan Geurts on Unsplash

How Instagram Is Making It Easier for Brands and Influencers to Collaborate

How Instagram Is Making It Easier for Brands and Influencers to Collaborate

Mobile

Instagram understands the appeal—and power—of influencers, and is releasing a new feature, Branded Content Ads, that helps businesses capitalize on that appeal. As Instagram announced in a blog post, Branded Content Ads makes it possible for businesses to use Ads Manager to promote branded content as an ad in their Instagram feeds. Furthermore, businesses can use targeting tools to specify demographics and measure the results: who’s responding, and how many people read the post. Branded Content Ads is a win-win for both advertisers and influencers, especially micro-influencers.

A Win-Win

By tapping into the authenticity of influencer content, and the buzz that content can create, businesses stand to create more awareness for their brand or product. This new tool is especially suited to companies who already know how to work with micro-influencers, such as Swedish watch-maker Daniel Wellington, which already has a strong micro-influencer outreach and does little traditional advertising at all. In a recent micro-influencer campaign, the company thought outside the box and reached beyond lifestyle and fashion Instagrammers to partner with pet lovers. The result? An account that focused—successfully—on the Internet community’s love for cute animals. Pet owners shared images of themselves and their favorite animal friend, with a Daniel Wellington watch always prominently featured somewhere in the mix. Branded Content Ads will provide a company like Daniel Wellington one more tool to work with by allowing the company to take an influencer’s organic post (with the permission of the influencer) and share that post as branded content on the Daniel Wellington Instagram account. Branded Content Ads will also make such a campaign easier to manage and track.

Of course, influencers also benefit from the larger audience that can result from business/influencer collaboration. And because the new Instagram feature allows businesses to target a specific audience and use performance measurement tools to track response, influencers might not only grow but even make some discoveries about their personal brand in the process. This is especially relevant to micro-influencers looking to expand their reach. Consider someone like Christian Caro, a top micro-influencer whose roughly 6,000 followers track his exuberant photos of life in So-Cal.

If he wanted to grow his audience beyond his current Instagram followers, he could capitalize on this new feature and partner with a brand dedicated to topics such as lifestyle, food, or fashion, which overlap with his photography. By contrast, a mega influencer such as Kim Kardashian West, who has 141 million followers, may not benefit as much from this program because she’s clearly doing just fine building an audience on her own.

Keeping It Real

Instagram has laid out specific instructions to help businesses and influencers work together and maintain transparency. Steps include:

  • Businesses must grant permission for the influencer to tag their business in the influencer’s branded content post.
  • As noted, businesses must secure permission from the influencer to promote the post as an ad.
  • Once an ad is created, it is reviewed and approved by Facebook, after which it will appear in the Instagram feeds of the designated audience. Note that businesses won’t be able to manage or delete likes and comments that appear on a promoted branded content post.
  • Once an ad is live, businesses will have access to standard ad reporting metrics.

Eager to learn more about how your business can work with Instagram—and influencers? Contact us.

Apple Showcases Its Augmented Reality Tools at WWDC

Apple Showcases Its Augmented Reality Tools at WWDC

Marketing Mobile

When is the next Pokémon GO going to come along to make everyone love augmented reality (AR)?

This is the question on the minds of many technology watchers who are waiting for another AR breakthrough. But applications like Pokémon GO don’t happen very often. The real value of AR comes from people and businesses using it to share immersive experiences that complement our lives rather than making us drop everything and focus on AR.

Perhaps that’s why Apple has been careful to sell AR as an evolutionary tool that will enrich how we live, whether through practical application or content that engages. At Apple’s annual Worldwide Developers Conference (WWDC) Apple accentuated tools that should make AR easier to use – perhaps not glamorous developments, but important ones.

ARKit Update

For example, Apple announced an update to ARKit, its software development toolkit for AR (and competitor to Google’s ARCore). Among other improvements, ARKit will capture the motion of a person in real time with a single camera. As Apple noted, by understanding body position and movement as a series of joints and bones, you can use motion and poses as an input to the AR experience — placing people at the center of AR. Apple also announced human inclusion, meaning that AR content realistically passes behind and in front of people in the real world, making AR experiences more immersive.

Those improvements matter because for AR to attract advertisers and consumers, it has to offer something different beyond what anyone can experience in a 2D world. As it stands, AR is catching on with advertisers. According to eMarketer, global augmented reality ad revenues are expected to rise from $779 million in 2019 to $1.2 billion in 2020 and $2.6 billion in 2022 – not a huge number, but higher than $166.7 million generated in 2017. Most of that money is coming from display advertising. Making AR more powerful and immersive will build more momentum.

Making AR Easier

Apple did something else: made AR easier to develop. With new Reality Composer and RealityKit tools, developers will be able to create AR apps easier on Apple’s operating system. As Apple noted, Reality Composer helps anyone create AR apps even if you lack 3D experience.

But responses to the news have been underwhelming, partly because Apple is restricting these tools to its own operating system. But another reason is that journalists seem to be waiting for that next AR killer app to capture their imagination, and software development tools are not going to do that. Perhaps the AR version of Minecraft will be the next killer app. Meanwhile, advertisers will continue to create AR that engages, such as Toyota’s new AR experience and Snapchat’s ongoing AR features. People may not use AR every day, but when they do, they remain highly engaged. Apple isn’t creating engagement – but it’s giving businesses tools to do so.

For more information on how to build advertising that engages consumers through digital, contact True Interactive.

Image source: https://www.apple.com/newsroom/2019/06/highlights-from-wwdc-2019/

Google Capitalizes on Mobile with Outstream Video Ads

Google Capitalizes on Mobile with Outstream Video Ads

Mobile

Google’s recently launched outstream video ads are the right format at the right time.

The ads appear as auto plays on mobile devices without sound, with users activating sound by tapping on the video. According to Google, mobile is key to the success of the outstream format: “Over the past year, we’ve been working on a way to extend the reach of your video campaigns to people beyond YouTube, especially as they spend more and more time interacting with applications and sites on their mobile devices . . . Outstream ads drive incremental, cost-efficient and viewable reach beyond YouTube.”

By capitalizing on the growth of mobile, Google is building its presence in the right place. As we noted in a recent blog post, Mary Meeker’s Internet Trends 2018 report revealed that U.S. adults are online 5.9 hours per day, and more than half of our time spent on mobile. Mobile is our preferred way of being online.

In a new column for Adweek Social Pro Daily, I share insight into outstream video ads and their importance to Google in light of the company’s problems keeping inappropriate content off YouTube. I think you’ll find the column to be useful. Please check it out and contact us to discuss how to incorporate video into your advertising strategy.

Google Creates a Mobile-First World with Accelerated Mobile Pages

Google Creates a Mobile-First World with Accelerated Mobile Pages

Mobile

Google continues to create a mobile-first future. The company’s 2015 algorithm update known as Mobilegeddon resulted in mobile-optimized websites ranking higher in search results. And recently Google announced it will extend Accelerated Mobile Pages (AMP) to all AdWords advertisers globally.

AMP is an open-sourced project that Google designed and rolled out in 2016 to make mobile web pages load faster. Recently Google analyzed landing page performance of 900,000 mobile landing pages. As page load time increases from one second to seven seconds, the probability of a mobile site visitor bouncing more than doubles. For every one second delay in page load time, conversions can fall by up to 20 percent.

With AMP, Google decided to improve engagement in a mobile world. According to Google, by May 2017,  brands had published more than 2 billion pages with AMP, cutting their page times to less than 1 second. Advertisers such as Johnson & Johnson reported increased engagement to AMP pages.

What Google is doing now is supporting AMP landing pages in AdWords search campaigns globally. Consequently, all advertisers will be able to point mobile search ads to Accelerated Mobile Pages. Eventually AMPs will rank higher in search results as more businesses point to them with their ads.

The spread of AMP is significant because:

  • Google is responding to consumer behavior. More people do mobile searches than desktop searches, and people using mobile devices expect content delivered faster and simpler.
  • AMP demonstrates Google’s influence on advertisers. Google has the scale and reach to enact changes that influence how advertisers act. And Google is willing to do so by making a better user experience: pages that load faster.

I suggest that advertisers get familiar with the Google toolkit for using AMP for AdWords a tactical measure. As a strategic move, understand how your own customers are using mobile – not just with text searches but with voice searches. Optimize your site experience accordingly. Mobile is a behavior influencing how all brands and people interact. Google is responding to that behavior, and so should you. Contact True Interactive to ensure that your digital experience is mobile. We can help.

Image source: stateofdigital.com

Tips to Make Your Landing Page Mobile Friendly

Tips to Make Your Landing Page Mobile Friendly

Mobile

When Google announced in 2015 that more Google searches were taking place on mobile devices than on computers in 10 countries (including Japan and the United States), marketers experienced the beginning of a major shift in the way they reach their target audiences.

Since 2015, mobile has become an even larger piece of the search puzzle. (According to Hitwise, mobile searches account for 58 percent of all search activity in the United States.) Businesses (including True Interactive) continue to refine our digital strategies, including search campaigns, to better align with an increasingly on-the-go search audience. Meanwhile, Google has made great strides sharing features that that allow businesses to better target the mobile search segment. Those features include mobile bid modifiers, mobile preferred ad copy, the ability to show ads in mobile apps, and location extensions, among others.

In addition, Google continues to change its algorithms to reward content that is optimized for mobile – which means businesses need to make it a higher priority to ensure that their landing pages are mobile friendly.

Optimizing the Content of Your Landing Page

Optimizing your landing page for mobile means understanding first that behind every mobile device is a person. People using their mobile phones for search purposes are often literally on the go. The mobile audience is composed of busy, multi-tasking, need-it-done-now people. It is important to respect their limited time and attention.

This insight has an impact on how you view your landing page. For example, instead of directing customers to a home page containing a wide variety of products or services, look to more closely align keywords and ad copy. This strategy helps better define the searcher’s intent and will ensure they are directed to a landing page that most closely fits their search query.

For example, if someone searches for “women’s Nike cross-training shoes,” the best experience for the searcher would be to land on a page specifically displaying women’s Nike cross-training shoes versus a page displaying all women’s cross-training shoes or all Nike shoes.

You might be tempted to simply drive ads to a general landing page and have users drill down to specific pages, which is certainly the quickest and easiest way to integrate your digital ads with your landing page content. But doing so will hurt your conversion rates. Searchers typically find it more difficult to navigate sites using small mobile screens instead of larger desktop/laptop monitors. If your ad drives traffic to a landing page that requires multiple clicks before the searcher reaches their ultimate destination, the likelihood of the interaction ending in a conversion decreases with each subsequent click.

A Client Example

For example, for one of our clients, a hotel, we performed a test with searchers who were looking for “hotel discounts.” First, we drove those searchers to a home page that contained general information about the hotel, as well as a link to the “special offers” page. Then we tested an alternative landing page that sent searchers directly to a special offers page – resulting in a marked improvement in conversion rates.

It seems obvious that people searching for hotel discounts are most interested in seeing current deals offered by the hotel. By sending people searching for hotel discounts directly to the special offers page, we eliminated the risk of them leaving the website before checking out the special offers page.  We also saved searchers the effort of locating the link to the special offers page and a few extra clicks as well – a big plus for people looking to complete a transaction quickly and easily on their mobile devices.

Not all keywords are specific enough to truly understand a searcher’s intent, but for those keywords that contain more modifiers, make sure you are taking full advantage and directing searchers to the most appropriate landing page. Remember, for the on-the-go, mobile audience, time is money. A few modifications to landing pages will save your customers time, and help boost your bottom line. Contact True Interactive. We’re here to help you build your brand.

Image source: Brodie Vissers