Three Rules For Luxury Mobile Monetization

By Amy Vale

What’s the first thing that comes to mind when you think of the word “luxury”? For me, it’s usually exquisite craftsmanship, beauty, privilege and a sense of exclusivity. Wealthy Americans, better known as that group of consumers earning a minimum of $150,000 a year, are apt to use their mobile devices for all kinds of activities associated with the purchase funnel. According to a study by The Luxury Institute and Plastic Mobile, 60% of wealthy Americans owned a smartphone, of which more than 80% had downloaded an app. The study goes on to show that mobile luxury shoppers are most interested in using apps to gain access to discounts. 46% of those who had downloaded or planned to download any mobile app said they expected a luxury app to provide them with a loyalty program. Early access to sales was the second-highest anticipated app feature, at 45%. For publishers and app developers, understanding these consumer perceptions will go a long way in serving up mobile advertisements onto smartphones and tablets that are relevant, engaging and, most importantly, deliver consistent revenue. Now, let’s look at three ways luxury publishers and app developers can maximize their monetization strategies.

Integrate banner ads into mobile-optimized luxury sites

The biggest benefit of a mobile-optimized site is that it can be used in conjunction with many mobile functions. So understand the type of ad content that will appeal and resonate with luxury mobile shoppers. For example, don’t try to do too many things with mobile banner ads. Less is more. Focus on one clear call-to-action that will increase clicks, downloads and eventually revenue. By doing so, publishers and app developers will be well on their way to monetization.

Deliver exclusivity via “insider access”

Luxury connotes a sense of exclusivity and “insider access.” Leverage that quality by serving mobile ads with exclusive content via rich media and mobile video. By serving mobile ads that are entertaining, engaging and, most importantly, let mobile luxury shoppers experience “never seen before” content will be an effective monetization strategy for publishers and app developers. In the case of luxury carmaker LandRover, video has proven to be a key piece of their mobile-focused advertising strategy. During the pre-launch of its 2012 Range Rover Evoque, Land Rover introduced a mobile app called Pulse of the City and also created an interactive online movie in hopes of entertaining and informing its early-adopter, tech-savvy target audience.

Leverage “appvertising” within gaming apps

Earlier this year, Juniper Research released its “MobileAdvertising: Messaging, In-App and Mobile Internet Strategies 2012-2017” report highlighting what brands are doing well, and not so well, to monetize apps and mobile sites. The report projects that in-app mobile advertising spend will reach $10.4 billion by 2017. Clearly, apps aren’t going anywhere any time soon, so understanding where, when and how to serve up mobile ads within apps is most important for publishers and app developers right now. One tactic to create a consistent funnel of revenue for app developers is to deliver ads within gaming apps. As recently as a few weeks ago, Toyota’s luxury brand Lexus hedged its mobile bets on video ads within the gaming app Gems With Friends. Video ads of the new Lexus ES model are served to Gems With Friends players, and then connect Gems With Friends players to the Lexus Facebook page. What’s important to understand is that not every gaming app will be the right place for publishers and app developers to serve up ads. Figuring out the right time, the right place and the right message will make monetization feel much more attainable for app developers. 

Why Mobile Political Ads Are Here To Stay

By Amy Vale

The political landscape has changed considerably over the last several years, especially when you look at where and how people vote. Historically, people voted at polling stations located near their homes or offices, and it was standard practice for voters to receive “house calls” from political constituents looking to drum up support for a specific socio-political issue and fundraise. That’s all begun to change with the proliferation of smartphones and tablets and consumers’ increasing dependence on these small screen devices. Now people are using these devices to research social, political and economic issues affecting the country and the world, read news about political candidates, and even promote fundraising events.

In the context of this year’s Presidential Election, mobile is one channel that’s already getting the attention and advertising dollars of both Obama and Romney in their race to win the hearts and votes of Americans. So what’s the draw for publishers and app developers to make the most of mobile political ads? What are the best ways to monetize mobile political ads? According to eMarketer, video will account for 5.8%, or $151.5 million, of the year’s $2.61 billion total mobile ad spending in the U.S.

As the race to the White House heats up over the next few months, we’re seeing an increase in the use of mobile video and rich media ads within mobile sites and apps like Pandora and Facebook. The reason being is simple – both are smart ad-supported channels that reach millions of mobile users daily. By serving political ads that are engaging, relevant and entertaining within these apps and mobile sites, publishers and developers can effectively drive an increase in clicks, conversions and revenue. eMarketer estimates that by the end of 2012, nearly 82 million Americans will access a social media site on their mobile device. In fact, over 70% of music listening on Pandora happens on mobile, or “off the computer,” (in July, total listening hours hit 1.12 billion), and Facebook said last month that 543 million, more than half of its users, access Facebook from a mobile device. If there’s one thing we can be sure of, it’s that mobile political ads are here to stay and can create a consistent revenue stream for publishers and app developers.

Of course, one of the biggest assets of mobile devices is the ability to target users based on their location, time of day, device type and device features. For mobile political ads, the monetization that can result from delivering intuitive, targeted mobile ads across smartphones and tablets is very important. For example, mobile ads targeting voters in a typically “blue”, or Democratic state such as New York, will likely have higher engagement rates.

Last, but certainly not least, it’s important for publishers and app developers to pay close attention to the actual design and user experience of mobile political ads themselves. Less is more. Instead of pushing multiple messages through a banner ad, it’s better to focus on one particular call-to-action. With consumers apt to want information fast and delivered easily, the user experience should be a top priority in delivering mobile political ads. So, ensure that banner ads support this type of mobile usage/behavior to drive deeper and longer engagement (thus resulting in that all important metric – revenue and ROI).

What types of innovation would you like to see in mobile political ads? Would you be more responsive to a mobile ad that positioned a candidate in a negative light? How do you plan to use your smartphone and tablet in the days leading up to the Presidential Election? Tell us on our Facebook and Twitter pages.

Rejuvenate Your Health & Fitness App Monetization Strategy

By Amy Vale

There are over 40,000 health and fitness apps out there, and that number is climbing fast. Not to mention, these healthy apps are expected to bring in $1.3 billion in 2012, according to a Research2Guidance report. If you have any doubts or skepticism as to just how lucrative the health and fitness app market really is, take a look at these numbers. About 33% of people with smartphones in the U.S. tracked their diet or their exercise routines with their mobile devices, a comScore representative told the New York Times in April. comScore said that for tablet users the numbers climb a bit: 35% used the devices to track diet and 39% used tablets like the iPad to track their exercise. Clearly, the time is ripe for publishers and app developers to grow their mobile revenue through health and fitness app advertising.

Gone are the days when publishers and app developers rely on pay-per-download apps as their sole source of revenue. While the Freemium model isn’t going anywhere, we’re seeing a shift in the monetization tactics used to generate revenue from mobile apps, specifically using in-app ads and in-app purchases. First, health and app developers need to dig into the who, what, where and why their apps are being used. Who are the targeted “power” users of these apps? How likely are users to view and interact with ads that appear in health and fitness apps? What types of information and content is of interest to these users and what ad format would drive deeper engagement? By answering these questions, app developers can serve up ads that are more relevant, targeted and engaging. As a result, mobile traffic and revenue will undoubtedly surge.

Of course, we can’t ignore a huge “power” market for health and fitness apps – mobile moms. Moms are often referred to in the medical community as “Chief Health Officer”, and today’s mom has an even greater reliance on her smartphone or tablet to keep her family healthy, wherever she may be. Recently, our mobile ad network Mojiva released its “Moms on Mobile” report, which revealed that one-third of moms own a connected device and they spend an average of 6.1 hours a day on their smartphones – that’s more than the time spent reading magazines, watching TV or listening to the radio. Plus, 62% of these mobile moms use shopping apps and 46% took action after seeing a mobile ad. To this group of “power” users, mobile is more than just another channel; it’s an essential component of their everyday routine. These connected moms are sleeping with their mobile devices next to their bed andthey’re scrolling through emails and social updates first thing in the morning. They’re tracking their family’s health and fitness goals on these small screens (i.e. calories burned, miles run, healthy recipes). And they’re even using the devices to research more serious health conditions such as Diabetes and Heart Disease. According to a Baby Center study, one in three moms used her smartphone for health purposes, compared to 22% of the general population. Further, a Baby Center “Dr. Mom Study” showed that nine out of 10 moms who own smartphones used the devices to research health conditions.

When it comes to health and fitness apps, it’s all about the user experience. Is it engaging? Does it provide useful and relevant health tips and information? How often do users use the app? Much in the same way the user experience impacts how users engage with an app, this same “usability” factor should be taken into consideration when serving up ads within an app. For instance, rich mobile ad units, such as expandable banner ads, click to social and video, can meet these “usability” needs and, in doing so, ensure that publishers and app developers achieve optimal ROI and deliver against their KPI metrics.

In addition, in-app purchases are also being hailed as a smart and effective monetization route. According to a recent study conducted by IDC and Appcelerator, 50% of developers say that in-app purchases will be the most important monetization strategy, tying with app store sales. In the case of health and fitness apps, a lot can be learned from gaming app developers who create ongoing revenue streams through in-app purchases, also referred to as “tokens” or “power ups.” Much like Words With Friends and Angry Birds, power users are fiercely loyal and will be more receptive to make in-app purchases once they’ve used the app more than 10 times. These in-app purchases, or “tokens,” can be redeemed for a number of “goods,” including gym discounts and exercise video packs. The more relevant and targeted these in-app purchases are, the greater likelihood they will make money long-term for publishers and app developers.

Health and fitness apps are here to stay, that’s for sure. What remains to be seen is how publishers and app developers will turn what some may call a “fad” into a long-term, lucrative business that deliver real revenue and ROI. 

iOS 6 Software: A Boon For Mobile Revenue

by Amy Vale

Apple fans all over the world are waiting with bated breath for the release of the new iPhone 5. Images of the new device and snippets of information continue to be leaked, but there’s still some time before we’ll hold the latest iPhone in our hands. With a host of incredible new developments and features, the iOS 6 software has the potential to boost mobile revenue (in big ways) for publishers and app developers.

To begin with, the iPhone’s Siri voice-recognition technology is expected to undergo some massive improvements. The new software will allow users to launch applications and games directly from within Siri, thus opening the door wide for mobile monetization. As a result, we anticipate seeing more advanced functionality and features within apps in general, and in turn this will allow publishers and app developers to serve up in-app ads that are smart, engaging and relevant to users’ needs, and a better ROI on their marketing dollars.

The new software also plans to make significant changes to Facebook access and bring about more complete integration with other apps and device features across the board. Some of the changes will include accessing Facebook from within the iOS 6 platform itself-which will integrate seamlessly via Siri, the Notifications Center, status updates and more, so users can share their favorite apps across social networking sites. All of these updates in time will allow publishers and app developers to get more bang for their buck with the use of in-app ads and in-app purchases on the new iPhone 5.

As another example, Fly Over is Apple’s new map application, a 3D photographic model of cities in the same vein as Google Earth. Not only will this new app be a big feature of the iPhone 5, but the iOS 6 software has also fully integrated Siri into the rest of the device’s features so the maps are voice-navigation compatible. Apple has also wisely tied this into millions of businesses so it will be easy for users to get information or read customer reviews from, for example, Yelp while still using the map app. From publishers’ and app developers’ perspective, this feature could be a platform for new forms of mobile targeting.

The reports are also saying that new software plans to use geo-fencing technology to upgrade the phone call features of the iPhone. For example, users can be reminded to call a particular person when they have left or arrived at a particular location. It will be interesting to see how publishers and app developers leverage specific parameters of mobile targeting, including day-parting, geo-location, contextual keywords, device type and device feature, to serve up ads and boost clicks, impressions and revenue. Targeting isn’t the only path for monetization with this new iOS 6 software; we already know that video viewing and social networking on Smartphones are on the rise. In fact, eMarketer estimates that by 2016, more than 110 million Americans – or one-third of the total U.S. population – will watch video content on a mobile phone at least once per month. Perhaps we’ll see mobile ads served up on the iPhone’s hugely popular video-calling application – FaceTime.

Lastly, another great iOS 6 feature is a new app that lets users merge all of their passes and tickets into one location. Essentially, users can store their movie tickets, boarding passes and store cards in one single location. What’s more is that when users enter a movie theater, their movie ticket will pop up on the small screen of their mobile device. This poses a huge opportunity for publishers and app developers to serve up ads across iPhones that are specifically targeted and relevant to where users are located, what they’re doing and what types of content they prefer to engage with.

How can iOS6 create ongoing revenue streams for publishers and app developers? Is monetization a top priority for publishers and app developers leading up to Apple’s anticipated release of the iPhone 5? Feel free to tell us your thoughts here, or on our Facebook and Twitter pages.