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

Three Ways to Capitalize on Amazon Search

Three Ways to Capitalize on Amazon Search

Amazon

We already know that Amazon is the Number One website for people to do product searches: according to a 2018 Jumpshot report, from 2015 to 2018, Amazon overtook Google in this area, with Amazon growing to claim 54 percent of product searches while Google declined from 54 percent to 46 percent. Now we know something more. According to Marketplace Pulse, a majority of Amazon searches—78 percent, in fact—are nonbranded. Instead of pinpointing a specific company like lululemon, say, many customers are making broad searches such as “yoga pants for women” and seeing what comes up.

This data demonstrates the opportunity that exists — indeed, just how wide open the playing field on Amazon is for businesses that sell products there. People are searching with intent on Amazon: they want to buy something. But they haven’t yet decided on what to buy. And here’s where the savvy marketer can make inroads.

Amazon Is Growing as an Ad Platform

The data also underscores just how big Amazon has become as an advertising platform. As we recently blogged, Amazon continues to grow, and is biting into other companies’ share of the spoils. eMarketer’s report that Amazon is projected to capture 8.8 percent of U.S. digital ad spending in 2019 is telling. So was the GeekWire article from January 2019, which discussed record 2018 profits for Amazon, and gave props to advertising for contributing to that success. According to GeekWire, “Fueling its bottom line is Amazon’s growing advertising arm that generates revenue by charging companies to promote their products on Amazon properties.”

Three Ways to Capitalize on Amazon Searches

How can a business take advantage of these developments? That is, what sort of strategy should businesses embrace in order to capitalize on the possibilities Amazon affords?

1 Advertise on Amazon

First of all, make sure you advertise on Amazon and that you know how to do so. Familiarize yourself with the complete listing of Amazon Advertising offerings.

And check out our blog. We’ve published numerous posts to help businesses understand Amazon’s many advertising options, including:

  • Sponsored ads, the pay-per-click (PPC) advertising approach that takes a shopper directly to a product page or brand site within Amazon. Sponsored ads are available to sellers, venders, book venders, and Kindle Direct Publishing.
  • Video ads, which complement display ads by expanding beyond a single image to tell a compelling story. Video ads can be used to target a certain audience on Amazon as well as Amazon-owned and third-party sites (e.g., Twitch) and devices.
  • Display ads, which, like video ads, can be employed to reach people in a specific target audience.

Additionally, be aware that Amazon is constantly refining and improving its advertising offerings and creating new ones. Stay abreast of the changes.

2 Make Sure You Have Good Reviews on Amazon

Reviews carry a lot of weight and can help you. According to an oft-cited 2012 Nielsen release, 70 percent of respondents had some or complete confidence in online reviews of products, whether they knew the reviewer or not. Online reviews also tap into basic human psychology. In a description of Dr. Robert Cialdini’s six principles of persuasion, the Influence at Work website describes consensus as the phenomenon where “people will look to the actions and behaviors of others to determine their own . . . especially when they are uncertain.” Note that in the case of consensus, at least online, more is more. Five hundred positive reviews will impress consumers more than three will, no matter how glowing those three reviews happen to be. Ask customers to review you.

3 Be Aware That Advertising on Amazon Is Not a Slam-Dunk

Amazon has flooded its site with its own private label products. Understand Amazon’s generic product strategy — it’s huge —especially if you are a commodity brand such as a seller of batteries, vents, or paper towels. You’ll have to work hard.

There’s a lot of money to be made on Amazon. If you already have products there, know how to capitalize on Amazon’s tools to attract customers. If you don’t, think about making that happen.

Contact True Interactive

True Interactive knows how to build your business via advertising on Amazon in context of broader online advertising strategies. Want to learn more? True Interactive can help. Contact us.

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.

Advertiser Q&A: What Is a Micro-influencer?

Advertiser Q&A: What Is a Micro-influencer?

Social media

As we discussed in a recent blog post, celebrities are not the only game in town when brands want to include influencers in their advertising campaigns. Micro-influencers are also useful and usually less expensive. Increasingly, our clients are reaching out with questions about them. We thought we’d take a moment to answer some of those questions—and help clarify who these micro-influencers are and why they are important.

What is a micro-influencer?

A micro-influencer is someone who commands a smaller audience — anywhere from 2,000 to about 50,000 followers— on a social media channel like Facebook or Instagram.

Micro-influencers tend to be everyday people (as opposed to celebrities). But they know a lot about a specific topic. That expertise inspires loyalty in their community of followers, who look to them for recommendations, likes, and dislikes.

Take The Brothers Buoy: Brooklyn-based Jackson (who writes the copy) and Graham (who shoots the photos) have taken it upon themselves to turn people on to good places to eat in New York and beyond. Their sass and humor have earned them about 8,000 followers, along with some healthy respect (e.g., they’ve worked with Condé Nast Traveler).

Why do micro-influencers matter?

In short, they have street cred (see the Condé Nast Traveler reference, above). And micro-influencers tend to enjoy high levels of engagement. They may not be breaking records in terms of the size of their audience, but the followers they do have really love them and interact, a lot.

In fact, a smaller following makes it possible for micro-influencers to maintain a personal connection with their fans: as Adweek reported, engagement usually dips the more followers an influencer attracts. Perhaps because of the high levels of engagement, micro-influencers project an authenticity—and inspire a level of trust—that is sometimes hard for celebrity influencers to sustain.

Another bonus: micro-influencers tend to be less expensive for businesses working on a budget, and may give a business more bang for its buck. Smart Insights notes that micro-influencers are 6.7 percent more cost effective than their higher-profile colleagues. And as IZEA points out, a business might reach more people working with several micro-influencers who charge less but enjoy a powerful connection with loyal followers, as an alternative to maxing out the entire budget on a single post from one celebrity influencer.

What are some tips for working with micro-influencers?

  • First identify the goals for your campaign, then begin researching potential micro-influencers. Influencers have different personalities and communication styles; look for someone who feels like a good fit. Consider factors such as their audience and how the influencer connects with that audience. Are their tone and approach suitable for your own brand?
  • Once you’ve found an influencer who seems like a good match, establish a connection. Follow them on their social channels, leave comments, and engage meaningfully before reaching out about a collaboration.
  • When you do reach out, contact the micro-influencer via their direct email, and demonstrate that you are indeed familiar with their work—and a fan. Since you’ve already established a connection, that familiarity, not to mention the admiration, will likely come naturally.
  • Finally, don’t micromanage the micro-influencer. Remember, one reason micro-influencers are popular is because their audiences trust them to be real. Feeding micro-influencers lines or opinions defeats the purpose of the collaboration—and can backfire if followers suspect inauthentic content.

Interested in learning more about micro-influencers and how a collaboration might benefit your business? Contact True Interactive.

Instagram Explodes as an Influencer Outreach Platform

Instagram Explodes as an Influencer Outreach Platform

Marketing Social media

Influencer outreach is alive and well. Recently, Adweek reported on Instagram’s Ashley Yuki, Instagram’s interests products lead, who said that 69 percent of Instagram users come to the app to interact with celebrities, and 68 percent visit Instagram to interact with influencers.

Instagram’s Growing Presence

This is major news, given the growth Instagram has been enjoying. According to statistics portal Statista, the number of monthly active Instagram users exploded between January 2013 and June 2018, from 90 million to 1 billion. And as digital marketing agency Omnicore reports, as of September 2018, daily active Instagram users had reached 500 million. Other telling stats from Omnicore include:

  • Six in ten online adults have Instagram accounts.
  • 6 million Instagram users are from the United States.
  • 80 percent of Instagram users come from outside the United States.

When you do the math, one thing becomes clear: Instagram users represent a large market. It’s a market with an interest in celebrities. And that’s a powerful endorsement for the practice of influencer outreach.

Bad Press

The revelation is especially timely given the black eye influencer outreach suffered early in 2019. Twin documentaries about the disastrous Fyre Festival, Fyre Fraud, which aired on Hulu, and Fyre: The Greatest Party That Never Happened, on Netflix, discussed how influencer outreach was used to promote the festival as a cool, sexy event, only for the Fyre Festival to fall apart due to poor planning and unprofessional, unethical behavior. The strategic campaign ramping up to the event included spending millions on flying celebrity models down to the Bahamas so that the influencers could take pictures of themselves frolicking in paradise and post about the upcoming Fyre Festival. Additionally, on December 12, 2016, 63 influencers simultaneously posted an orange tile graphic to social media with the hashtag #FyreFest. That effort earned more than 300 million impressions in 24 hours.

The influencers were paid well for their troubles. Kendall Jenner, for example, earned a $250,000 fee, and no influencers brought in less than $20,000. But model Emily Ratajkowski was one of the only influencers to designate her post as an #ad, drawing criticisms that Fyre was misrepresented from the get-go. Post-festival, the backlash was fierce. Wired published a piece in May 2017—“Blame the Fyre Festival Fiasco on the Plague of Celebrity Influencers”—and The New York Times predicted “The Rise and (Maybe) Fall of Influencers.”

On the Rebound

FTC crackdowns, however, have subsequently had a positive impact on the credibility of influencer outreach. In a survey of 287 U.S. marketers, Influencer Marketing Hub found a huge change in attitude following the Fyre Festival debacle: “Less than half of our group (132 people) admitted they hadn’t paid much mind to the Federal Trade Commission’s regulations [regarding transparency of paid endorsements or other “material connections”] before Fyre Fest. In the wake of the fallout, though, and with the FTC already cracking down before Fyre Fest imploded, every single one of them stated that maintaining compliance will be a top priority.”

The Power of Micro-Influencers

The bottom line? Influencer outreach isn’t going anywhere. We recommend that businesses take a serious look at influencer outreach as a way of building their brands. The good news is, you don’t necessarily have to pay celebrities to build excitement: many brands are now turning to micro-influencers to drum up awareness. Well-known locally but not necessarily nationally for fitness, lifestyle, and other interests, micro-influencers typically enjoy more than 1,000 but much less than 100,000 followers, and hold sway in specific cities or regions. Consider individuals like Brendan Lowry, a Philadelphia-based micro-influencer with about 30,000 Instagram followers: his feed bursts with photos of the city beside sponsored posts endorsing local companies. If you can connect with people like Lowry, who maintain a high profile in a specific market, you may not get as much reach nationally, but you can get significant reach in specific markets that are of interest to you.

Influencer outreach is still relevant. And by doing some smart, targeted research, companies can find influencers across different markets who will be most effective for their needs. For more insight, contact True Interactive.

 

 

 

 

 

Facebook Seeks Transparency with View Ads

Facebook Seeks Transparency with View Ads

Social media

You might have heard that Facebook is testing an advertising format that makes it possible for businesses to see other businesses’ Facebook ads. And you might be freaking out. If so, relax. Facebook is becoming more transparent, but not at the expense of advertisers.

Here’s the context: Facebook recently discussed the testing of a new feature known as View Ads. With View Ads, anyone visiting a brand’s Facebook page can see all of the ads connected to that page regardless of who the brand is targeting with the ads. In other words, if you are a brand, your competitors can see all your ads and vice versa.

Facebook is reportedly rolling out the feature more broadly this summer. Regardless of the timing, brands should expect Facebook to implement more measures such as View Ads. Facebook has to become more transparent as a response to myriad controversies surrounding manipulation of the platform during the 2016 presidential election and mounting concerns about the platform’s trustworthiness.

Being able to view your competitors’ ads should not change your ad strategy, nor should the fact that competitors can see yours. The only reason to view competitors’ ads is to fine-tune your own approach so that your brand stands apart. But if you keep the focus of your attention on your customers and take care of your people, your competitors’ Facebook ads won’t matter. In addition, measures to make Facebook more transparent will ultimately help businesses that advertise on Facebook. Transparency is needed to build trust. And Facebook has a trust problem, to say the least.

For more insight into Facebook View Ads, check out my recently published column in Adweek Social Pro Daily. And contact us to understand how to build your digital brand.