Last year was a spectacular year for the mobile advertising industry and it doesn’t seem to be slowing down anytime soon. Mobile ad spend is up 430 percent since 2013, and with more than 2 billion smartphone users worldwide, it’s becoming clear that the future of digital marketing is mobile. Globally, eMarketer predicts mobile will account for 71 percent of all digital spend (and 32 percent of all media) by 2020.
As we continue through 2017, here are three resolutions marketers should work to keep throughout 2017:
Realize Mobile Remarketing is the New CRM
Retaining users and keeping them engaged is more important than simply driving app downloads. According to a study from Localytics, after 30 days only 6 percent of people who installed an app were still using it. This is a big problem in the app ecosystem as retention rates continue to trend downward each year. In 2016, retention rates went from 42 percent to 37 percent, while cost of acquiring new users rose 117 percent.
Two years ago, advertisers were primarily concerned with acquiring as many new users as possible, but as data started coming in as many as 23 percent of users were abandoning the app after opening it just once. Mobile remarketing has become a central strategy for businesses today and is emerging as the new age CRM platform to customize value propositions for users across the lifecycle. In a fiercely competitive environment where smartphone users and app downloads continue to increase, marketers should shift their mindset to measure success based on outreach to lapsed and new users, ensuring apps are continuously used.
Vow to Unlock the Potential of Emerging Markets
Emerging markets present a tremendous opportunity for mobile advertisers. It’s estimated that advertising in emerging markets will be a $300 billion business by 2020. With mobile penetration nearing 80 percent in the US the market here is quite crowded, and it’s a good idea for brands to look closer at emerging markets.
Of all the emerging markets, China is the most exciting, fastest growing with a huge audience, and great purchasing power. According to iResearch, China’s mobile advertising industry has maintained grown more than 160 percent in recent years with advertising revenue expected to exceed $43.5 billion in 2018 up from $13.1 billion in 2015.
As internet usage and smartphone penetration skyrockets in emerging economies, advertisers cannot ignore the opportunity and scale these markets provide.
Embrace the Fact that AR & VR Are Set to Gain Momentum
The success Pokémon GO saw last year generated widespread interest from consumers in augmented and virtual reality apps, but this is just the beginning. As AR and VR become widespread, more developers will begin working in the space, and apps will expand beyond gaming and move into mainstream. The possibilities range from using a VR experience to test drive a car, to retail shopping via VR-enabled transmission to distance learning programs.
According to IDC, it’s estimated that the virtual reality sector reached $5.2 billion last year and is expected to grow to $162 billion in 2020. These numbers will continue to push brands to create revolutionary products over the coming years, and marketers should begin to think about incorporating virtual reality ads into their strategies.
With the constant advances in technology, marketing strategies that worked last year may not be as effective this year. Marketers should always be on the lookout for the next cutting-edge tech trend, and work throughout the year to push the boundaries and stay ahead of the competition.