As Q4 draws nearer, the mobile marketing space continues to buzz with record-breaking sales numbers and astounding opportunity. During H1 2020, and more specifically Q2, the coronavirus pandemic drove consumers to spend more time on their phones than ever before. But what does H2 hold for mobile marketers and their loyal users? How will the world’s state of constant uncertainty affect Q4 and its traditionally high seasonality for ecommerce and retail marketers? What changes will be felt industry-wide as Apple unveils its newest iOS update this fall? These questions are buzzing throughout the mobile marketing space, and Perform[cb] is here to provide insights into what the rest of 2020 may hold.
Apple’s ios 14 update and its effect on mobile marketing as we know it
Apple’s highly anticipated iOS 14 update is just around the corner. This update has been said to include revisions and changes to iPhone favorites such as iMessage, Siri, and Apple Maps. However, perhaps the biggest change to Apple’s operating system will be its addition of the Privacy Indicator and Data Tracking feature. This new feature called “App Privacy” will show users any and all personal information an app will ask for prior to using it. Said personal information will range from location to contact information, and beyond. App Privacy will notify users if an app is tracking their purchases, browsing data, contact and financial information. Additionally, this operating system update will introduce a small circle displayed in the top right corner of users’ devices if an app is utilizing the phone’s microphone or camera.
What does all of this mean for mobile marketers? iOS 14 will do away with the IDFA, Apple’s unique identifier, in favor of consumer privacy. This, along with a policy of transparency in ad tracking and the release of Apple’s own tracking solution, the SKAdNetwork, have some marketers concerned about the future of mobile attribution. But with a reputable network or agency partner, marketers can rest assured that the transition will be as seamless as possible.Perform[cb] has been busy working with Apple and all major MMPs to make sure that the shift to iOS 14 will be smooth for our clients. Each MMP has proposed slightly different solutions but, not only will Perform[cb] be ready for the transition, we are increasingly confident that our team will be able to serve our marketers and partners with little to no updates on their end.
How will Q4 2020 look for mobile marketers?
Q4 2020 has enormous potential for record-breaking online sales, specifically on mobile devices. This year has already yielded record-highs for numerous verticals in both the gaming and non-gaming app categories. Ecommerce sales, in particular, are projected to reach 14.5% of all sales, which is an industry high and the largest share increase in a single year. U.S. ecommerce sales are predicted to surge to 18% in 2020 – the largest increase in over a decade. A 2019 study estimates that 73% of ecommerce sales in 2020 will be made on a mobile device. Given that nearly three-fourths of all ecommerce sales will be made on mobile devices this year, marketers must ensure their sites are not only optimized but robustly designed for mobile traffic. Those marketers whose sites are not built for mobile transactions will lose out to their competitors.
Q2 is not typically known for high seasonality across many verticals, however, Q2 2020 yielded $27B spent on in-app purchases – another industry record. With consumer spending soaring during these historically low points in seasonality, the promise of even higher sales records during Q4’s holiday season hovers in the air.
Is the mobile boom here to stay?
The stay-at-home economy has driven users to spend more time on their mobile devices than ever before. According to a July 2020 report, unique mobile users increased by 66%, with the total number of unique mobile users growing by 121M globally over the past 12 months. Reports from Q2 2020 announced mobile app usage had increased by 40% year over year, with over 200B hours of mobile phone usage in April alone. Consumers downloaded over 35B new apps in Q2, establishing a new industry record. One could assume these industry highs will only last as long as Covid-19 goes without a vaccine; however, with new users and engagements reaching unprecedented heights on a daily basis, this influx in mobile usage could have a permanent place in our new normal.
Consumers continue to look to their mobile devices to make purchases from a wide variety of verticals ranging from Ecommerce and Health & Wellness to Education and Entertainment. As mobile marketers and partners navigate the murky waters of H2 2020, many unknowns remain. However, it is safe to say that mobile user engagement is at an all-time high and the opportunity for growth, for both advertisers and affiliates, has never been so prominent.
