How Mobile Apps Have Changed Marketing

The huge shift in daily content consumption has also been led by the app revolution.

I want to talk about something amazing, something that has slowly chipped away and made it into the lives of everyone with a smartphone device. It’s across every aspect of our lives and has influenced businesses, lifestyles, retail spending, entertainment, and even the way we communicate with our friends, family and peers.

Practically everything you do now has in some way or another been influenced by it. It’s what I like to call ‘The day the App ate the industry’ but before I talk about that, I thought I would start with some context.

There has been a monumental shift in the way brands market in 2017.

There has been a monumental shift in the way brands market in 2017. This shift has been due to the huge conversion of content consumption in many industries traditionally built on a desktop based business models, with audiences now quickly transitioning to mobile web, and in recent times apps.

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From 2014 to 2015 we (as in everyone with a smartphone) added 58 new minutes per day spent on those devices – bringing the total daily time spent on average 3 hours and 40 minutes. This was at the end of 2015.

Jump forward to 2017 and this number is 5 hours a day on average. This huge shift in daily content consumption has also been led by the app revolution. Of those 5ish hours 90% of that time each day is spent in App.

You might think back to when you didn’t spend 5 hours a day on your mobile devices.

You might think back to when you didn’t spend 5 hours a day on your mobile devices, the transition hasn’t happened overnight. Nor can we pin point a time and think that was the influential groundbreaking change that occurred to influence others, rather a culmination across multiple industries and consumer behavior led to where we are today.

These industries have all had huge influential brands create great apps over the years; users of course have transitioned to this, followed, as we know by the advertising dollars (with Global online Ad spend to surpass US$200Bn in 2017 according to Zenith’s Advertising expenditure report).

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‘Build it and they will come’ or in my opinion ‘Build it well with good UX and they will come’. Throughout this transition we have also seen a huge development in the way in which ads are delivered, and what ads are performing in 2017.

Entertainment, retail, and travel all followed suit and realized the huge potential of the app industry.

So how did it all start? As I mentioned there is no definitive App, brand and or industry that started this transition for us all. But we do have some clear leaders that pushed us along. I like to look at the music and gaming industry for pioneering the app world. Games were really the first winners in the mobile revolution. The industry was eaten up very quickly in 2008 and 2009.

Mictchell_1

By: Simon Khalaf, SVP and Lali Kesiraju, Analytics Manager

Social networking and messaging apps followed shortly after and with huge success due to a couple of small companies you might know; namely Facebook, and Twitter. Entertainment, retail, and travel all followed suit and realized the huge potential of the app industry and the engagement this format could have with consumers.

TV and Media are really the laggards here and rightly so, Free to Air TV in the Australian Market like many others is still particularly strong, traditional media in most markets are struggling to transition from the large ad spend in print and TV to a digital economy. Monetization of their content is by far one of their biggest challenges.

Screenshot 2017-05-05 09.34.01

By: Chris Klotzbach, Head of Product Marketing Yahoo Mobile Developer Suite

As technology has developed, so to have the metrics and ways advertising is delivered. Traditional based display (Banners) were the clear choice of marketers prior to the mobile web revolution, some would argue the MREC making its way into mobile web was the lazy man’s alternative. Advertising dollars have always flocked to audience, and more specifically will follow users where they are most engaged.

The standout new forms of native in app, and mobile web provide modern marketers with a new ad format that does not break user experience.

The standout new forms of native in app, and mobile web provide modern marketers with a new ad format that does not break user experience. ‘Pencil’ and or ‘Large Card’ ad units are now the preferred monetization ad experience modern publishers are utilising. Custom content, and or content marketing was huge two/three years ago – with brands telling unique stories. These unique stories are still creating the best cut through, however the form and function in which they are delivered have changed substantially.

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Marketers now need to include a sound strategy that includes a mix of traditional based display, combined with new elements of custom content and native ad delivery. The huge opportunity in the media industry is right now, as users are consuming traditional content through new means, this will open up an industry to huge growth potential, specifically for the early adopters to this app based world. Publishers and or traditional media houses that adapt to this will see the greatest benefit not only from brands and advertisers, but their core users.

So what’s the next industry about to be engulfed? We can see that messaging & social apps, sport, business and finance have all had huge growth in terms of sessions and app users YOY. When we look at more mature app industry’s we actually see a decline in sessions i.e. Gaming and News who have reached critical mass.

Screenshot 2017-05-04 15.31.49

By: ChrBy: Simon Khalaf, SVP Yahoo Inc

What were the pioneers in the App revolution are now slowly loosing sessions and time spent to other apps. So where can we expect the biggest growth? I predict in Media and Entertainment, what do you think?

 

https://nativeadvertisinginstitute.com/blog/mobile-apps-marketing/

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