Should you Increase your Mobile Advertising Spending?
Our time spent on mobile devices is growing daily. Mobile will become very soon the most used media in the world. Today, an American adult spends on average about two hours and 54 minutes each day on their mobile phone while spending two hours and 12 minutes on their computer. Some studies show mobile already exceeds both desktop.
This is why Anglo-Saxon advertisers have begun focusing their marketing budget on mobile advertising. Next year, mobile ad spending will outpace the desktop in the US. Advertisers in the UK and Canada have also increased significantly their mobile ad spending against desktop, whereas other European countries lag behind.
Why does it make sense to increase ad spending on your mobile apps today?
- Time spent by users: figures differ among studies, but every study shows a significant increase in time spent on mobile vs. desktop or TV.
- Application use: 86% of the time spent on mobile is within apps. Moreover, time spent on apps continue to grow. This trend shows how well apps continue to dominate mobile web.
- User Engagement: an application is a permanent bookmark in the user’s device. When a user installs an app, his engagement is stronger and more durable than for a mobile website. Applications also have obvious advantages such as their use offline, browsing and UX, etc.
- American retailers have already turned their ad spending budgets to mobile: they spent $6.65 billion in mobile ads in 2015. And other sectors are following this trend: mobile is an attractive option for all companies in search of performance.
The mobile advertising industry has improved significantly between 2010-2015. Even if the level of maturity has still not reached that of the desktop where almost 100% of media buying are programmatic, mobile advertising now offers technologies that deliver high performance levels.
The main benefits of mobile advertising (vs. TV & desktop)
- Deeper user information: mobile applications do not use the ubiquitous cookie, but they are able to read every device’s unique ID. Users of an app are identified personally and data on their usage are saved for long. There are a number of databases on the market allowing to crunch data between apps to target interesting audience.
- Audience targeting: many acquisition sources offer more sophisticated targeting possibilities on mobile compared to desktop (accurate geolocation, users who have already paid using similar applications, etc.)
- Organic traffic uplift: When you acquire mobile users, your ranking on the app-stores increase. Your application appears higher in its category, and your keywords perform better: you can generate at least between 10-30% additional organic traffic. The extra organic traffic generated with advertising is unique on mobile: it does not exist on desktop.
- Performance: tracking tools such as Adjust, Tune or Appsflyer) allow to precisely measure behaviours and events within the application, such as registrations, purchases, page views, clicks etc. These events are measured for each user and for each acquisition source. Tracking tools allow a great assessment of the performance of acquisition campaigns on each source, and ultimately positive ROI.
- Re-targeting is also efficient on mobile: it is possible to reactivate a user with a specific message, such as a price promotion or new content. Performance of retargeting is often high: it aims at reactivating users who have already downloaded the application but have not opened it for a length of time. These are users who once had a good engagement.
Your application is certainly in competition with millions of applications on the stores, just like your website is facing more than a billion other sites. But the good news is that there are efficient tools to acquire profitable new users for your application!