Hélène Queriault, VP Operations at Addict Mobile, tells us her vision for mobile marketing in 2017.
How is mobile market doing at the start of 2017?
Almost 10 years after the launch of the Appstore in 2008, the application and mobile advertising market is still growing fast: +64% at Q4 2016. Advertising budgets are switching from traditional media (print, TV, digital) to mobile, which is consistent with the increased time spent on smartphones and tablets. The budget spent on mobile is split 81% within apps and 19% on mobile websites, which is again consistent with time spent on apps vs. mobile websites; trends show an even greater part for apps in 2017.
What were for you the highlights of 2016 in mobile marketing?
– In terms of advertising inventory, 2016 clearly saw the weight of SEO (search campaigns) increase, with both the continuous improvement of Google and the launch of Apple Search Ads in the US, which we hope will be available worldwide soon in 2017.
– In terms of advertising formats, the trend of 2016, which will certainly be confirmed in 2017, reflects a diversification towards more interaction and dynamism.
o Facebook focuses on more videos, new canvas format, slideshows, etc.
o There are globally more videos , on all channels
o We see new formats growing, such as Playable ads or dynamic formats like HTML5, even though volumes are still limited.
– We also noticed a strong increase of retargeting in 2016; numerous apps are now mature with large installed basis of users. Our clients’ issues now lie in the loyalty and re-engagement of the existing users, just as much as they do in the conquest of new users. We have gone from a 90-10 split between acquisition – retargeting at the end of 2015, to an average of 70-30 at the end of 2016. Some projects even reach now up to 80% of retargeting. A sharp use of data allows to display specific ads to specific profiles of users, with top performances.
– And finally, a less glorious and yet striking trend of 2016: the increase of fraud on all channels (excluding Facebook), especially during S2. Fraud covers a variety of use cases: false traffic from bots, re-routed traffic from undesired countries, click spamming and fraud on the organic traffic… Fraudulent traffic represents up to 30% of bill paid by advertisers. It is vital to use effective prevention and detection technologies.
And what are your vision for 2017? Do you see Facebook be a monopoly in mobile marketing?
Facebook is certainly a key player of mobile marketing (see our article on this subject). Last year we spent up to 50% of our acquisition budgets on Facebook. This is a very large portion…but it also means that there are 50% outside of Facebook!
– In 2016, we saw Google coming back in the race for performance on mobile app installs. Google now accounts for about 10% of our budgets, and will be a major partner for us in 2017.
– Apple has launched Search Ads advertisements in the US Appstore, with very encouraging results and performances. Apple will also be a key partner in 2017.
– On top of the latter there are over a hundred other players (adnetworks, affiliates, DSP, other social networks…), with nice performances and volumes, as long as you use an automated management tool such as Addict Mobile’s platform to run and optimize hundreds of campaigns.
– 2017 will be the year of data; DMP (Data Management Platform) is a super-trendy word. The idea is to be able to profile your users, in order to 1/ acquire look-alike users and 2/ re-engage your users with dedicated messages according to their profile.
o Addict Mobile’s DMP aims to offer the same targeting capabilities and look-alike audiences as Facebook, on all the other channels: display and video, affiliates, DSP, etc…
o Similarly in retargeting, the collected data is used to categorize your users (with the device’s ID), according to different profiles, in order to re-target them with dedicated messages on all levers: agencies, affiliates, DSP…with very good performances! Furthermore, it Is thanks to this targeting and retargeting effort that the performances finally become interesting on the RTB programmatic inventory.
As a mobile marketing expert, if you had three wishes for 2017, what would they be?
I wish we could dream and improve for 2017:
– The way marketers measure profitability of their mobile marketing: beyond CPI (cost-per-install) and basic purchase-per-install, we need to calculate long term profitability, including the additional organic traffic and LTV (Life time value) over 6 months, sometimes 1 year.
– I would love to see even more performance platforms emerge! LinkedIn, Pinterest, Spotify, Snapchat and Periscope opened exciting beta, but still mostly for branding campaigns. I hope performance models will expand in 2017!
– And last but not least, I would dream of a more sophisticated attribution model than the current 7 days last click. The attribution tools may one day offer us the ability to better analyze the contribution of each impression to each install and eventually action within an app.
2017 promises to be an explosive year in mobile marketing! Make sure you seize all opportunities, working with powerful acquisition technologies.
For more information, you can visit the Addict Mobile site here.
Posted: February 1, 2017