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app marketing best practices for the 2016 holiday season

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APP MARKETING BEST PRACTICES FOR THE 2016 HOLIDAY SEASON Actionable Insights for Q4 2016 Based on Data from Q4 2015
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Page 1: app marketing best practices for the 2016 holiday season

APP MARKETING BEST PRACTICES FOR THE

2016 HOLIDAY SEASONActionable Insights for Q4 2016 Based on Data from Q4 2015

Page 2: app marketing best practices for the 2016 holiday season

Intro

In its US Holiday Ecommerce Preview 2016, eMarketer predicts eCommerce will surge 17.2% in Q4 – with mobile being the main driver of this trend. In fact, the analyst firm forecasts that mCommerce in the US will rise by 43% in 2016, driven by a 78% spike in sales via smartphones. With these numbers, it is imperative that mobile marketers ensure their strategy is firmly in place this holiday season. This applies particularly to apps which, according to Criteo, beat mobile browsers at every stage in the funnel.

To help shopping and gaming app marketers be at the top of their game, we’ve analyzed app install and purchase data from the 2015 US holiday season. Based on this data, we’re offering actionable insights to inform smart decision-making for Q4 2016 so your holiday season can be a resounding success!

Page 3: app marketing best practices for the 2016 holiday season

Duration September 28, 2015 -

January 11, 2016

• In-app purchases represent the number of purchase events recorded• Conversion rates are of type click-to-install• Data was grouped by week with each data point representing total installs

in the week starting on the date in question

About The Study

CountryUnited States

Scope50 million installs from over 500

shopping & gaming apps

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ShoppingThe Data Story From Q4 2015

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KEY OBSERVATIONS

• App marketers shift into high gear in Q4, ramping up their UA campaigns for iOS shopping apps from the second week of October – leading to a 175% increase in the number of non-organic installs

• The peak in purchase events (+60% vs. mid-November) during Thanksgiving, Black Friday and Cyber Monday trails the peak in non-organic installs by four to five weeks

• Purchase activity drops sharply (-38%) after the peak November weekend and continues to decline for the rest of Q4

• App install campaigns slow down before Christmas and then rise again by 50% during and after the holiday and New Year’s

• Organic activity peaks in mid-October and again during Thanksgiving, Black Friday and Cyber Monday; it then drops and rebounds only during Christmas

App Installs & in-App Purchases By Week(US, Q4 2015)

iOS Shopping

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iOS Shopping

Non-Organic App Installs & Conversion Rate(US, Q4 2015)

KEY OBSERVATIONS

• For shopping app marketing campaigns, the week before Veterans Day is the most competitive of the season (+62% vs. October). After this date, there is a steady decline in number of non-organic installs until Christmas

• During the week of Christmas, competition intensifies again as app marketers target new devices, leading to a 50% rise in non-organic installs

• With the increase in ad spend in early November, conversion rates take a massive hit; as non-organic installs rise, the number of users who install an app after clicking on an ad plummets, and recovers only slowly in the following weeks

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Android Shopping

App Installs & in-App Purchases By Week(US, Q4 2015)

KEY OBSERVATIONS

• In 2015, the two major peaks for in-app purchase events on Android phones were around Cyber Monday and Christmas (+42% and +24% vs. mid-November, respectively); unlike iOS users, this indicates that Android owners used their phones for last-minute shopping before the end of the year

• Non-organic activity continues to rise, peaking during Halloween and early November (+23% vs. October) as marketers seek max lead time ahead of Thanksgiving, Black Friday and especially Cyber Monday when the number of purchases jumps 42%

• Organic and non-organic traffic show very similar patterns: peaking around Halloween and then dropping gradually until Christmas, after which there is a significant decline in the number of organic installs (non-organic activity takes a dive only on the second week of Q1)

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Android Shopping

Non-Organic App Installs & Conversion Rate(US, Q4 2015)

KEY OBSERVATIONS

• UA efforts for Android shopping apps surge during the week before Veterans day with the number of non-organic installs up nearly 150% vs. September

• A second, smaller peak of paid installs occurs 3-4 weeks before Christmas, after an initial drop around Thanksgiving

• Contrary to the findings on iOS, a higher rate of UA activity doesn’t negatively affect Android conversion rates

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1. Lead-up to end of November peak is a critical time for UA. High install activity in October and November pays off come Thanksgiving, Black Friday & Cyber Monday. This is the time to run UA campaigns to make the most of the peak period.

2. More lead time → more data → better engagement. Preparation for the end of November peak period is of the utmost importance. The more lead time you have to properly onboard new app users the more you can potentially know about them. This can help you be much more effective in your engagement efforts when they matter most.

3. Push engagement across channels during peak period. The peak in purchases at the end of November means that you need to be aggressive across your engagement channels, whether via paid retargeting, push messaging and / or email. Consumers will be more open to such aggressive outreach during a shopping rush.

4. Constantly monitor ROI when it matters most. With the cost of UA and retargeting likely to mirror high demand during peak periods, it is important to remember that high cost is not a concern if the return is higher, especially with returns that are far more immediate. Monitor media cost constantly throughout the peak weekend and measure the return to ensure you are as effective as possible.

What This Means for Q4 2016

iOS Shopping

Page 10: app marketing best practices for the 2016 holiday season

iOS Shopping

What This Means for Q4 2016

5. Android and iOS are very different animals so plan accordingly. Non-organic Android installs peak on Cyber Monday and the heightened activity period extends beyond that to the following week. For iOS, however, the peak occurs on Black Friday and is limited to 2 weeks.

6. Diversify media sources to maximize return. The more media placement options you have, the more room exists for ongoing, data-driven optimization so you pay the lowest possible cost and gain the highest possible return. By maximizing your reach to a larger user base, you also maximize the chances of addressing new, relevant users, which can help in keeping your conversion rates up (make sure your media partners can offer sharp targeting otherwise your conversation rate will suffer).

7. Christmas is not the peak of app shopping. Delivery considerations, holiday preparations and mainly a shopping-packed weekend at the end of November mean most consumers – other than last minute shoppers – are much less likely to shop during the lead up to Christmas.

8. Take advantage of the new phone install rush on iOS. Start the new year with a volume of new users who installed apps on their new iPhones

9. On iOS, organic installs trail non-organic installs. App marketers on iOS can benefit from strong organic install numbers in Q4 even as they reduce their ad spend. While organic and non-organic installs on Android develop mostly in parallel, a higher initial investment on iOS can potentially pay off later in the quarter.

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GamingThe Data Story From Q4 2015

Page 12: app marketing best practices for the 2016 holiday season

iOS Games

App Installs & in-App Purchases By Week(US, Q4 2015)

KEY OBSERVATIONS

• Purchase activity for iOS gaming apps surges by +140% at the beginning of Q4

• The number of in-app purchases increases a further 85% prior to and during Halloween, followed by another peak on Thanksgiving and Black Friday

• Unlike non-organic activity, the number of organic installs picks up significantly on Thanksgiving and Black Friday (+50% vs. November average)

• Christmas time is jolly for iOS gaming app marketers with a huge spike in non-organic installs (+100%), an impressive increase in organic installs (+65% and a 22% rise in the number of in-app purchases (all compared to the Oct.-Nov. average)

Page 13: app marketing best practices for the 2016 holiday season

iOS Games

Non-Organic App Installs & Conversion Rate(US, Q4 2015)

KEY OBSERVATIONS

• After a sharp ramp-up period at the beginning of the quarter, app install campaigns continue at a fairly consistent rate until Christmas

• As app developers invest heavily to ensure that their apps are present on new devices activated around Christmas, non-organic installs rise by 106% within the span of two weeks

• Similarly to the development of non-organic installs, conversion rates for iOS Games remain stable throughout Q4, with spikes at the beginning of the quarter, after Halloween, and particularly around Christmas, when the rate jumps 45% (compared to pre-Christmas period)

Page 14: app marketing best practices for the 2016 holiday season

Android Games

App Installs & in-App Purchases By Week(US, Q4 2015)

KEY OBSERVATIONS

• Similar to iOS, purchase activity for Android gaming apps increases drastically from the beginning of Q4, with an impressive jump of +110%

• Apart from some peaks around Halloween, Thanksgiving, and Christmas, the number of in-app purchase events remains relatively stable across Q4

• While organic and non-organic installs follow largely the same pattern, there is a major spike in organic traffic around Christmas and New Year’s

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Android Games

KEY OBSERVATIONS

• Gaming app marketers on Android focus their UA efforts around special holidays: Halloween, Thanksgiving, and Christmas

• Just like on iOS, the week of Christmas is the most contested when it comes to user acquisition – but the spike is less pronounced, with an increase of only 28% compared to two weeks before

• For Android games, we see a negative correlation between non-organic installs and conversion rates; as more non-organic installs are being generated, the conversion rate drops, while recovering quickly after non-organic installs peak

Non-Organic App Installs & Conversion Rate(US, Q4 2015)

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What This Means for Q4 2016

1. User acquisition campaigns and in-app spending go hand in hand. While some app categories have long gaps between installs and in-app purchase events, Gaming tends to benefit from short lead times before a purchase is made. This means that app marketers can see the revenue impact of their campaigns early on and improve performance of individual campaigns based on this data.

2. Make use of themed holidays. Gaming revenues spike around holidays with easily recognizable, compelling themes – Halloween, Thanksgiving, Christmas. This is even more true if players have more free time than usual available. As a consequence, themed in-app items and special holiday promotions can create an extra push in revenue before the year is over.

3. Push engagement across channels during peak periods. To make the most of in-app purchase peaks during Halloween, Thanksgiving and Christmas, be aggressive across your engagement channels – paid retargeting, push messaging – and offer gamers compelling reasons to play your game and spend money.

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What This Means for Q4 2016

4. Beat the rush around Christmas. While Christmas is an important time for app marketers, it is also the most competitive time of the year. The battle for newly activated devices is certainly relevant, but don’t forget to make use of the opportunities before – and after – this major holiday.

5. Diversify media sources to maximize return. Expanding your media portfolio can give you increased flexibility and more room to shift budgets and optimize your campaigns.

6. Constantly monitor ROI when it matters most. At times of high demand, the cost of running UA and retargeting campaigns also spikes. However, remember that high cost is not a concern if the return is higher. Monitor media cost constantly (all the time) throughout peak periods and measure the return to ensure your bottom line is maximized.

Page 18: app marketing best practices for the 2016 holiday season

For more data studies on mobile apps go to

www.appsflyer.com/library


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