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High Performance
App Marketing
BIG
BRAND
STRATEGIES
For Mobile App Marketing
10
The time for big brands to get strategic about marketing their apps is now.
Mobile apps are no longer standalone entities for big brands. What were now seeing is brands integrating mobile apps into their business models and their overall
marketing strategies -- to build closer customer relationships and drive business.
Its no longer enough for brands to just have an app (or a suite of apps) and
promote it through traditional channels. Now that brands recognize the impact
mobile apps are having on business, their focus is shifting to employ a strategic
marketing approach to their apps.
All this means that big brands are starting to treat their apps as more than just
another channel theyre treating them as a business. And theyre getting serious
about marketing their apps, by putting the marketing resources behind them and
incorporating apps as part of their ongoing strategy.
of revenue. Comparatively,
it took 11 months to achieve
that following the launch of
our mobile website. What
mobile doesespecially the
Top-tier brands like Coca Cola, Sephora, Wal-Mart, and many more are all
publically talking about the central role apps play in their marketing strategy.
Here, well describe what some of those brands are doing, how theyre doing it,
and outline 10 strategic moves brands are employing to get more strategic about
their mobile apps.
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By implementing a rich
mobile app, Nordstrom
can engage and transform
customers from occasional
visitors to loyal customers by
having them download the
app for faster, more frequent
and higher value experiences
whether they are at home,
on the go or in a Nordstrom
store. In doing so, Nordstrom
will drive incremental sales,
increase customer loyalty and
learn more about consumers
buying behavior to serve them
better in the future.
Luxury Daily,
November 17, 2011 9
The challenge:
Their online user base is shifting to mobile
Smaller competitors were threatening to disrupt their business
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1. E
ffort and execution matter
2. K
eep testing and optimizing
3. F
ind your ideal rank
The company runs a steady, continuous campaign, targeting the ideal user
across an array of different traffic sources including leading ad networks,
social channels, and real-time bidding exchanges (RTB). They also develop
high quality creative assets, track their ROI through to the last dollar, and
occasionally use a burst strategy, putting out an extra blitz of ads to
maximize results when needed.
No matter how good campaign results are, its essential to test new ideas
and traffic sources. This client uses Fiksus optimization technology and
performance data to make ongoing optimization decisions, keeping cost-peracquisition low while finding ideal customers. They also dedicated 10% of their
monthly budget to testing new ideas and channels, many of which eventually
make their way into the core marketing stream.
As well discuss, every app has an optimal sweet spot in the app stores, and
its not necessarily as high as you can afford to stay. This client has figured
out what rank gives them the best ROI and how it changes over time. To get the
most out of your app marketing dollars, you need to determine this optimal rank
and what you need to spend to stay there.
Some of these lessons may be unfamiliar to marketers new to mobile. But thats just
the start lets take a look at how mobile app marketing differs from online and
traditional marketing.
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Unfamiliar channels
Of course, brands with large customer bases can drive app installs through
traditional customer touch points and promotion. But to quickly reach the massive
volumes of app users required for success in this space, marketers depend on
mobile advertising networks, such as Googles AdMob, Apples iAd, and emerging
sources such as real-time RTB exchanges.
Many brands are now promoting their apps through these dedicated app
marketing channels because they are by far the most effective way to capture
high volumes of new users quickly. But how do you decide which networks to
work with? What method do they use for ad tracking? Do you have to integrate
SDKs from several networks? How do you deal with all the different reporting
formats? These are brand new challenges that marketers need to address to
have success.
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Targeting challenges
Due to both technology limitations and privacy concerns, mobile ad targeting isnt
as sophisticated as what marketers are used to in the traditional online marketing
world. Marketers used to precise demographic targeting will have to adapt to new
technologies and approaches for reaching those users that can help you achieve
the best performance and ROI.
Even when you succeed in getting your app downloaded, it doesnt mean the
customer will actually use it. Only a fraction of downloads convert into
productive users.
According to a recent industry study, more than a quarter of downloaded apps
are used only once, and then abandoned.11 If your app marketing generates too
many downloads by non-engaged users, your results will take a significant hit.
Fortunately, there are integrated tracking and optimization technologies that help
marketers identify the traffic sources that drive more than just downloads
but quality, loyal users.
App marketing also requires balancing an entirely new set of marketing goals
from achieving a certain rank within app stores, to acquiring users that actually
use your app, to a target cost-per-install. These are new types of goals for many
marketers, and require new measurement approaches.
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Store dynamics
Where do users search for apps? Overwhelmingly, they use the two major app
marketplaces: Apples App Store and Google Play. As an app marketer you need
to understand and address new dynamics associated with the app stores such as
achieving optimal rank, understanding the relationship between ad spend and
organic users, and the factors that drive rank in each store.
Organic users
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allthingsd.com, 9.24.2012 12
10
10. Establish A Feedback Loop With App Development And Business Stakeholders
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1. B
ring App Stakeholders Together
As One Team
Who owns your app marketing strategy?
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2. P
ut Dedicated Marketing
Resources Behind Your App
Apps are revenue-generating vehicles and deserve dedicated marketing
resources. Capturing and maintaining app market share requires marketing
resources, just like any other product. Its no longer enough to simply market
your apps at your traditional customer touch points. To build market share,
brands must go out and get app users through proactive marketing and this
takes resources.
According to the Mobile Marketing Association, marketers currently allocate
less than one percent of their marketing budget to mobile advertising. However,
based on the MMAs detailed ROI analysis of mobile, the optimal percentage of
a marketing budget to spend on mobile is seven percent, on average, and up to
nine percent for brands with higher app involvement.13
Many big brands have started to put the necessary budget and staff behind the
marketing of their apps, and those are the two key components. It takes people
power to manage the strategy and execution across the many mobile app marketing vehicles, and as the MMA describes, the scope of the mobile app opportunity
also deserves a significant app marketing budget, separate from other channels.
App marketing budgets should also be planned for ongoing promotion. Limited-time burst campaigns can quickly boost an apps rank and drive downloads,
but the effects dont last. To maintain visibility in the app marketplaces and bring
in new users on a continual basis, your app promotion needs to be ongoing.
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-- Sandy Culver,
Consumer Marketing Director,
Lowes Home Improvement 14
3. S
et App-Oriented Marketing Goals
As with any marketing program, mobile app
marketing programs should be measured against
specific, measurable goals. App marketing
presents an entirely new range of marketing goals,
with different corresponding strategies and tactics.
R
ank Reach (and maintain) a target app store rank, either overall
and/or in-category
L
oyal user acquisition Drive downloads from users that make
a purchase, use the app repeatedly, or take other actions that
support your overall app strategy
D
ownloads Generate a certain number of app downloads on
a daily/weekly/monthly basis
C
ost-per-download Stay below a threshold cost to
generate downloads
R
evenue Hit targets for revenue generated directly through the app
O
rganic user acquisition Acquire a target number of organic users
those who download the app without paid marketing influence
K
ey performance indicators Post-download user actions:
repeat use, clicks, session length, clicks to online store, in-app
purchase, other
Competition Achieve higher app store rank or more downloads
that competitors
N
ew customer acquisition Acquire a target number of
new customers
E
xisting customers Generate a target number of downloads
from existing customers
G
eography Generate a target number of downloads in key
geographies
Velocity Meet defined metrics within specific timeframes
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4. M
arket Your App On
Mobile Media
Some brands with large customer bases are confident that they can drive a lot of
users simply by promoting apps through their existing customer touch points, such
as stores, web sites, or traditional mass media channels. However, many marketers
have found that promoting their apps through these channels is no longer enough.
Brands are now committing an ongoing portion of their overall marketing spend to
promoting their apps where mobile users are: mobile advertising networks and
real-time bidding exchanges. Advertising on these dedicated mobile media
channels is the fastest way to build and sustain a large user base.
Its true that most users find apps in the app stores but discoverability of any one
app among thousands of competitors isnt something you can count, no matter how
well-known your brand is.
The impact of mobile ad buys cannot be underestimated. Apps with high app store
rankings and market share are almost always backed by continuous marketing in
the form of paid media buys through mobile advertising networks and real-time
bidding exchanges. These dedicated mobile channels enable brands to achieve
an initial rank boost then maintain that rank over time to drive discoverability
and installs.
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We launched an iPhone
app in the United States
about a year and a half ago.
It is now processing around
15% of all the WesternUnion.
com transactions that go out
from the US. Europe will be
the next area where we roll
this out.
Gregg Marshall,
Global Head of Sales and Business
Development, Mobile Transaction
Services, Western Union 15
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5. T
arget Optimal Store Rank
Mobile media advertising will drive users to download your app. But its just as
important to reach users who are browsing the app store for new apps and
the way to do that is to get your app into the top of the store rankings. If youre
not near the top, youre not likely to be seen, never mind downloaded.
John Dillon,
Vice President of Brand Marketing
& Product Development, Dennys 16
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Optimal rank
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Rich Lesperance,
Director of Digital Marketing and
Emerging Media, Walgreens 17
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luxurydaily.com, 12.12.12 18
7. U
se Optimization Technology
To Drive Marketing Performance
Optimization is one of the most
critical components of your app
marketing program.
This is because mobile ad targeting is not as sophisticated as what youre used to when working with traditional
marketing vehicles. As you plan your mobile media buys,
there are limited targeting criteria to help you determine
which ad networks will cost-effectively deliver the
largest number of downloads, which will drive loyal
users who spend money, and which will merely
consume your budget.
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Too often, app marketers treat optimization as an afterthought. As programs run and they see that theyre not
getting the results they had hoped for, they scramble to
figure out how to readjust their mobile ad spend.
Characteristics to seek in an
optimization solution
There are five characteristics to consider when choosing an optimization solution:
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Characteristics to seek in an
optimization solution
4. Enables Broad Media Deployment
The optimization engine is integrated with ad
networks and real-time bidding exchanges to
enable optimization across your entire media buy
simultaneously. It can also identify new media
sources that are highly likely to perform well.
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8. C
hoose a Proven Mobile
Marketing Technology Partner
As you get strategic about your mobile app marketing, youll want to partner
with one or more vendors that provide technology solutions for app marketing.
Traditional advertising agencies may have considerable expertise in user
acquisition and brand marketing, but as weve described, mobile marketing
demands very specific expertise and technology.
Coca-Cola executive Tom Daly recently emphasized this idea, saying that one
of his main goals for 2012 was finding and connecting with the best partners
for mobile marketing. He mentioned that mobile marketing is a different skill
set than digital marketing, and that his focus then and now was on finding
partners who know how to really collaborate so he could invest in the best
and execute on his vision for mobile.19
MillerCoors Director of Digital Marketing Steve Mura echoed the point,
describing how you need the right partners to help you win in the mobile
space. We need someone who lives and breathes mobile, he said, both for
technology and for mobile media management.20
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One of the reasons these big brand executives are so eager to find partners for
their app marketing is the range of technologies and skills required to succeed
with mobile marketing:
App usage analytics Software that tracks and reports on how your
app is being used.
Optimization Technology that uses algorithms to optimize your advertising to the marketing sources that deliver the best price/performance.
If your agency manages your app marketing programs, you may want to explore
with them the subject of partnering with a high performance mobile app
marketing platform provider to help them drive results for your business.
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10. E
stablish a Feedback Loop with App
Development and Business Stakeholders
You can do a great job marketing your app but, at the end
of the day, if the app doesnt provide value to your users
and doesnt work well, the app will not be successful.
In addition, even the most widely adopted app must be
updated regularly in order to provide new motivations
for users to engage with it. Marketers are in a unique
position to gain insights to improve the app, as well as
the business impact of the app.
App marketers can add strategic value to the app business by establishing a formal feedback methodology
with both the app business stakeholders as well as the
app development team. Set up a monthly or quarterly
feedback session with the stakeholders and review your
findings and recommendations.
There are a range of ways you can provide feedback:
Metrics reporting You can study metrics regarding app
downloads, store rank performance, cost-per-download,
organic lift, media source performance and other
marketing metrics to provide insights that can help
guide decisions.
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Checklist:
Developing
a Mobile App
Marketing
Plan
If your apps are strategic to
your business, they should
have the backing of a formal
marketing plan. Heres a
marketing template that you
can customize to match your
particular situation.
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16. Timeline
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Agency Support
Fiksu partners with advertising agencies to provide
access to the Fiksu app marketing platform, along
with expert support in a range of areas based on your
agencys requirements, including campaign planning
support, access to mobile media sources, optimization
technology and more.
Footnotes
Page 2
1
Page 3
eMarketer, Paid vs. Free Mobile App Store Downloads Worldwide, 2011-2016. September 11, 2012
ibid
4
http://www.growthink.com/content/10-incredible-mobile-marketing-statistics-every-entrepreneur-must-know
5
http://www.eweek.com/mobile/apps-marketing-and-the-cloud-gartner-predictions-for-2013/
6
http://www.comscore.com/Insights/Blog/The_Imminent_Mobile_Commerce_Avalanche
7
http://www.eweek.com/mobile/apps-marketing-and-the-cloud-gartner-predictions-for-2013/
8
Mobile First Look, 1/17/13, Coca-Cola: Mobile the closest you will get to your consumers
9
http://www.luxurydaily.com/nordstrom-builds-cross-channel-engagement-with-interactive-mobile-app/
2
3
Page 6
10
http://blogs.wsj.com/digits/2010/04/13/abc-sees-success-in-ipad-app/
Page 7
11
Page 8
12
http://allthingsd.com/20120924/ebays-mobile-momentum-100m-app-downloads-100m-items-listed/
Page 12
13
14
Page 16
15
eMarketer, Western Unions Mobile payments App Finds Its Niche, October 16, 2012
Page 19
16
eMarketer, Dennys Serves Up Loyalty with Launch of Mobile-Local App, July 12, 2012
Page 20
17
eMarketer, Walgreens Mobile Tactics Include foursquare and Store-Inventory App, November 5, 2012
Page 22
18
http://www.luxurydaily.com/starwood-boosts-mobile-booking-by-extending-spg-app-to-android/
Page 26
Mobile First Look, 1/17/13, Coca-Cola: Mobile the closest you will get to your consumers
Mobile First Look, 1/17/13, MillerCoors: Why mobile is a key social medium for the nations No. 2 brewer
21
eMarketer, Mobile Sales a Bigger Slice of Digital Revenues for Dominos in the UK, November 12, 2012
19
20
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High Performance
App Marketing
UK Office
Fiksu, Inc.
101 Arch Street, Suite 304
Boston, MA 02110
Phone: 855-463-4578
Email: sales@fiksu.com
Fiksu, Inc.
32 Percy Street
London, UK
W1T 2DE
Phone: +44 (0) 207 193 0512
Email: sales-uk@fiksu.com
Singapore Office
Fiksu, Inc.
137 Amoy Street
#02-01 Far East Square
Singapore 049965
Phone: +65 6372 9538
Email: sales-apac@fiksu.com
Copyright 2013 Fiksu. All rights reserved. Fiksu is a registered trademark and the Fiksu logo is a trademark of
Fiksu, Inc. Apple and the App Store are registered trademarks of Apple, Inc. All other trademarks mentioned herein
are the property of their respective holders.