The App Argument - The One Thing You Can't Afford to Leave Out of Your Marketing Strategy This Year

January 12, 2016 by

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Assuming recent trends continue, by 2019 we should expect to see nearly 75% of digital ad spending spent on mobile. Why? While it’s more complex than just a few statistics, the following make a strong case. In 2015, marketers began to wise up to the fact that people are spending more time on mobile phones than on their laptops/desktops. So, they matched eyeballs for marketing dollars, and, they did this even though mobile conversions are still lower than other devices.

 

So -  in essence, this is a cautionary tale.

 

Here are some statistics to demonstrate why you need to pay attention to this trend right now.

If you haven’t already, you need to start (read: continue - because at this rate of change, it will be hard to play catch up) optimizing your marketing plan for mobile.

In 2014, a report by KPCB showed that marketers were not spending ad dollars relative to the amount of time spent on mobile. In other words  - mobile phones (tied for second place with the internet/desktop), were where people spent most of their screen time (mobile has since surpassed internet/desktop). And yet, advertisers were not spending money to market there.
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It is important not to overlook this very important fact. That this surge of mobile activity could be largely in part due to the fact that 86% of time spent on mobile - is time spent in mobile apps.

Enter 2015 - looks like a very different story. According to a 2015 study by eMarketer, marketers got the hint. The percentage of digital mobile as spending skyrocketed to 49%, nearly mirroring people’s behaviors. The study also made some future projections - that by 2019 nearly 75% of ad budgets will be spent on mobile.

So - these marketers are running after the trend, reactively marketing and playing catch up with buyers behavioral changes. Still, I’d say they caught up pretty quickly.

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So if everyone’s doing it, should you be?

 

Here is one big reason you don’t need to sound the alarm right away.

One, conversions rates on mobile devices are still relatively lower than on desktop and tablets. According to this 2014 Q4 report from monetate desktop, tablets, and Kindle Fire conversions outpace others at about 3% while smartphones and iphones converted at .8% and .85% respectively.

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Here monetate updated this data showing conversion rates by platform further into the future, through Q3 2015. It looks like, while iPhone conversions are still converting a lower rates, conversion rates across desktop, tablets and iphones are coming closer and closer together.

 

(Interesting aside to note iphone conversions increasing at a much faster rate than other smartphones - something to keep in mind when digging deeper into your mobile plan)
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So - what have we learned?

 

People are spending more and more time on mobile (duh!), marketers are catching up and spending money to get these people’s attention, but conversion rates on mobile still have a little catching up to do.

Conversion rates on tablets, desktop and mobile are trending to cross paths. Trends point to conversions on mobile behaving in the same way most mobile trends have gone … up.

Importantly -  of all the time spent on mobile devices, most of this time is spent in mobile applications. So, if you’re poised to do just one thing this quarter (or year, if you’re a small business with limited budget) in regards to your mobile plans - focus on the app. 

If you don’t have the in house resources, check out this post on the 16 best app tools to make your own app - without a bit of code!

 

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