Given that a reported 90 percent of a mobile user’s time is spent within apps, it’s no wonder marketers have doubled down on app advertising investments, with app spending outpacing that of mobile browser nearly 3‑to‑1. These investments are justified when data shows that almost 1 in 3 clicks on a social ad for a mobile app turn into an app install. Not only are budgets increasing, but new advertisers are also entering the space as app advertising has proven to be valuable, bringing more competition to the mobile app arena.
2016 is poised to be a banner year for apps. As more brands make the investment, it will be essential for marketers to maximize these efforts. Those who plan to leverage app ads should keep the following five lessons in mind.
1. Invest In Installs But Optimize Toward Lifetime Value
In the world of apps, getting an initial download from a user is only half the battle. In fact, the journey with your customer is only just beginning after the install as many apps go unused after the initial download. Continue to cast a wide net to attract new users into your brand’s app, but don’t ignore the post-conversion opportunities to continue to grow the relationship and build loyalty. Take advantage of the ability to drive re-engagement by deep linking to specific areas or actions within your app. Don’t solely fixate on cost per install metrics; invest in mobile app measurement technology to better account for the actions you want users to take within your app and optimize to drive those results. For example, Amwell, the consumer brand of American Well, sought to drive mobile app enrollments and online doctor visits through search marketing while enabling onsite and in-app event tracking. By optimizing toward both cost-per-enrollment and cost-per-visit goals, the team was able to better understand the lifetime value of enrollees and visitors.
2. Create Immersive Experiences
With competition on the mobile canvas growing, it’s increasingly important to focus on strong creative and engaging content. Video is an excellent option to demonstrate what your app experience is actually like for the user. This is the format music app developer Smule opted for to drive installs of its Sing! Karaoke app in cost-effective yet highly engaging way. A few tips: for auto-play ads, ensure your message is clear and easily understood, even without sound; otherwise, be sure your still image is captivating and that the first few seconds of the video hook viewers.
3. Understand The Nuances Between Devices, Publishers
When planning your app strategies, remember that there are lots of evolving factors to consider in your approach for your targeting and bidding. Between device platforms, iOS has demanded a premium over Android, but over the past quarters, we’ve seen that gap narrow. Kenshoo analysis also showed that Android users are more likely to click on a mobile app ad, but once they click, iOS users are more likely to install an app. There’s also vertical and country to keep in mind. Generally, cost per install for consumer apps comes in significantly lower than that of gaming. Depending on the countries you’re targeting, be prepared to spend within the U.S., where there’s more competition for clicks. Also, stay attuned to industry changes. Major publishers are constantly reconfiguring pricing models and ad formats to better serve advertisers’ needs. Facebook, recently adjusted their pricing model to better define click value, for example; this is likely to have an impact for advertisers in terms what they pay and when.
4. Diversify Your Marketing Tactics
Facebook has been a prominent publisher to help drive app activity for marketers, but new avenues of app promotion have emerged over the past year. Test and learn new formats and channels to maintain your competitive edge and understand the marketing mix that works for your brand. If you have an Android app, for example, try monetizing via Search Ads for Google Play, where you can aid the discovery of your app amidst the sea of the 1.6 million that are available. There are also opportunities across Instagram, Yahoo Gemini, and mobile networks to consider.
5. Provide Utility, Value
Last, but certainly not least, understand that all the advertising in the world won’t make users stick around if they don’t find some form of value in your app. The key to success is to make your app a part of a consumer’s regular mobile routine and prove your worth to keep consumers coming back.