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.