Mobile commerce has gained momentum in the past twelve months. Even though the new year is ahead, mobile commerce is expected to rule the retail scene. From increased shopper engagement to sponsored data, marketers and developers can still lock in consumers after the holiday season. Below are the most anticipated mobile commerce trends for 2017.
As the m-commerce market tightens, competition will increase to keep shoppers engaged. According to Fiksu DSP data, 87 percent of smartphone users use less than 10 apps daily and 77 percent are likely to delete an app if they keep receiving an irrelevant ad. Developers will have to tap into user preferences to really resonate with consumers’ needs.
“Finding a user’s lifetime value is just as important as having high app-install rates,” Fiksu DSP CEO Mel Jackson said. “It is critical now more than ever to use ad formats that both target and resonate with users most likely to use your app long-term.”
Consumers are also not content with the ads they are receiving on m-commerce apps. Fifty-percent of consumers said the ads on m-commerce apps are not relevant to their preferences. To remedy this issue, developers could consider various shopper demographics, including millennials, and analyze how their app can connect with their lifestyles.
Despite many shoppers disliking m-commerce ads, millennials prove to be a boon for app developers. Thirty-three percent of this demographic said ads were their main reason for downloading an app to their smartphones and they are 26 percent more likely to click on mobile ads. Gen Y shoppers also are more likely to use apps longer—with 32 percent of this demographic more likely to use at least three apps for more than 15 minutes each day.
Ad revenue attribution
Decoding a consumer’s in-app behavior and overall lifetime (LTV) will no longer be a myth.
As in-app advertising continues to play a crucial role for m-commerce businesses, marketers will be able to connect mobile revenues to consumer-favored campaigns. AppsFlyer, a mobile attribution provider, recently released a new Ad Revenue Attribution solution, which will establish a more seamless revenue data extraction process for marketers.
According to App Annie’s “App Monetization Report,” in-app advertising revenue will grow to more than $70 billion by 2020. As ad revenue attribution increases into 2017, marketers will need to access revenue data immediately to boost campaign optimization and user segmentation.
“Mobile publishers want a 360-degree view of their marketing, and it’s crucial to measure the impact in-app advertising plays in driving user engagement and publisher monetization,” AdColony chief customer officer Bryan Buskas said. “The opportunity to inform better targeting, smarter user acquisition and more effective monetization through ad revenue tracking support is a step forward for both publishers and the overall ecosystem.”
Worldwide mobile operators, including AT&T, T-Mobile and Verizon, will make sponsored data mainstream on m-commerce apps next year.
U.S. mobile operators already provide free data services and other global mobile operators, including those Asia and Africa, have pursued sponsored data models for smartphone users.
Syntonic, a mobile platform services company, predicts more international mobile carriers will team up with content providers to reach approximately two billion mobile subscribers in upcoming years. On m-commerce apps, content providers can post advertisements with the help of mobile carriers. Both parties benefit and access m-commerce consumers with relevant sponsored data.
“In the next year, we anticipate more mobile carriers to adopt the dual roles of content provider and wireless network operator,” Syntonic CEO and co-founder Gary Greenbaum said. “The year 2017 will be an evolutionary landmark in the mobile industry, fueled by the explosive worldwide growth of mobile content services.