When consumers use a free app, they are resigned to encountering ads. Smart marketers focus on the in-app ad experience as a way to turn consumer resignation into delight.
Once upon a time, mobile apps fell into one of two camps. Either they were free and loaded with ads, or they required a subscription and showed users few or no ads. The new world of mobile apps is based on a hybrid model. Apps publishers are maximizing their revenue and profits by selling subscriptions to consumers and selling ad space to marketers.
If your clients are using mobile apps to connect with consumers, they should be aware of a few important details. The pandemic has changed how consumers interact with apps. And the economics of apps have changed as well.
Consumers and App Interaction During the Pandemic
During the pandemic, consumers signed up for apps that suited the new normal. That meant they were looking at fewer travel apps, but they installed more photography (28%) and health and fitness (28%) apps. At this point, the average consumer spends three hours and 47 minutes every day engaged with apps on their mobile devices. In comparison, consumers spend only about 25 minutes a day using browsers on their mobile devices.
Their app time breaks out as:
- Audio 0:59
- Social networks 0:52
- Video 0:46
- Games 0:26
- Messaging 0:24
- Other 0:16
Realizing that consumers spend plenty of time on mobile devices, marketers have moved their ad dollars to the channel. The year-over-year increase in mobile ad spending for 2020 has been revised downward from $123.59 billion to $112.09 billion, primarily because of the pandemic. Mobile will continue to draw a growing percentage of ad money in 2021 and beyond. And eMarketer analysts that 85% of mobile ad spending takes place in apps.
Once the pandemic is behind us, consumers will hold onto some of the commitments they made when they were socially distancing at home. They’ll continue digital service subscriptions to music (72%), fitness and wellness (64%), news (58%) and digital learning (54%). Most of these subscriptions involve a fee for use. But you’re likely selling in-app ad space for these content providers.
In-App Ad Experience
Consumers are increasingly aware of the ad load in their favorite apps. Developers believe that some ad types are more likely to be used in apps going forward:
- Rewarded video ads 22%
- Playable ads 21%
- Rich media/interactive ads 21%
- Offer wall ads 12%
- Interstitials 12%
- Native ads 12%
Why are rewarded video ads at the top of the list? " 'Rewarded video provides user-value exchange and enables the user to actually benefit from that time they’ve just spent in engaging with the video ad,' said Anala Prabhu, growth product marketing manager at Facebook Audience Network."
Your clients shouldn’t waste any opportunity to target prospects and customers through their mobile apps. Help them understand who responds to ads in this environment. You’ll find the answers on the AudienceSCAN profiles available from AdMall by SalesFuel.