The Use and Future of Applications for Mobile

MarketingRebecca Booker

W.P. Carey School of BusinessBarrett, the Honors College

Source: http://www.yadonia.com/services/mobile-application-development

Overview

• Data surrounding current application marketing

• Analysis of 3 brands

• Modeling framework

• Recommended strategy for Nutella USA

Objective

Determine how companies use mobile applications to successfully engage

consumers and lead to product purchases

Background of Mobile Applications and Mobile Marketing

• Mobile Marketing: any marketing activity conducted through a ubiquitous network to which consumers are constantly connected using a personal mobile device

Source: Mashable

Source: “The 2015 App Marketing Guide”

21%

Amount of time on mobile has increased

Background of Mobile Applications

• First apps introduced in 2008

• Apple’s App Store had 500 apps at launch• Microsoft had 18,000

• App Store = 1.2 million apps

• Google Play store = 1.3 million apps

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Mobile Application Marketing Metrics

• 3 that matter• Re-engagement• Goal-achievement• App uninstalls/ push notification opt-outs

• 3 that don’t• App installs/downloads• Number of push notifications sent• Negative app reviews

HTML5 vs. Native Apps

HTML5• Efficiency• Easy to make• Cost-effective

Native Apps• Visual appeal• User friendly

iOS vs. Android

http://tech.co/ios-vs-android-app-development-consumer-experience-comparison-2014-02

iOS vs. Android

iOS

• App Store saw 60% more revenue

• Brings 5x more revenue per download

• American preference

• Many app developers located in the U.S

• Most apps launched on iOS first

Android

• 60% more app downloads worldwide

• Emerging markets

• 81% of world’s smartphones

• Lower socioeconomic class

• Developing app costs 2-3 times more

Success Metrics for Mobile Applications

Engagement

Personalization

Acquisition

Acquisition

• Acquisition: the process of driving users to install an application and/or use the application through either paid or organic marketing1

1http://www.slideshare.net/kissmetrics/mobile-app-optimizaiton-for-aar-39

Engagement

http://sirseth.net/interaction/

Create Engagement

• Push messages• Special offers• Make information more accessible

• In-app messaging• New information• App updates• Sales• Reward programs

Retention Varies By App Category

https://mixpanel.com/blog/2013/11/04/trends-report-the-new-standards-for-mobile-app-retention/

Indicators of Interaction

CTRs Conversion Rates

Impressions

Personalization

http://www.digitalclaritygroup.com/highly-effective-personalization/

Personalization

• Personalize and segment content

• A/B testing

• Location-based information

• Personalized push messaging

Personalization

2XPersonalized push messaged opened

Personalization

94%

Amount of users searching for location

information

Case Studies

Taco BellLive Mas

Taylor Swift

Unstaged

L’Oreal ParisMakeup Genius

Taco Bell: Acquisition

http://investorplace.com/2015/01/free-taco-bell-tacos-yum-stock/

App: “Live Mas”

http://incitrio.com/live-mas-taco-bells-breakthrough-mobile-app/

Hour-by-hour ranking

http://www.appannie.com/apps/ios/app/taco-bell/rank-history/#vtype=hour&countries=US&start=2014-10-28&end= 2014-10-28&view=rank&lm=3

Taylor Swift – 1989: Engagement

http://en.wikipedia.org/wiki/1989_(Taylor_Swift_album)

App: American Express’ “Unstaged”

http://www.mobilemarketer.com/cms/news/content/19152.html

App Download Ranks

http://www.appannie.com/apps/ios/app/933296264/rank-history/#vtype=day&countries=US&start=2014-11-11&end=2015-03-22&device=iphone&view=rank&lm=3

Pairing with other mobile brands

http://www.sugarscape.com/music/news/a1071810/taylor-swift-unleashes-her-inner-cat-lady-as-she-previews-new-1989-album-track-in-diet-coke-commercial-watch/

L’Oreal Paris: Personalization

http://www.loreal.com/brands/consumer-products-division/loreal-paris.aspx

App: Makeup Genius

http://www.whowhatwear.com/loreal-makeup-app

App Features

http://beautyreportbyb.com/product-reviews/loreals-new-makeup-genius-app/

Social Media Integration

Instagram: @lorealparisusa

App Download Rankings

http://www.appannie.com/apps/ios/app/862302859/rank-history/#vtype=day&countries=FR,US&start=2014-05-15&end=2015-03-23&device=iphone&view=rank&lm=3

Customized Mobile Advertising: Ombre

http://www.mobilemarketer.com/cms/news/advertising/17982.html

http://www.mobilemarketer.com/cms/news/advertising/17982.html

Key Takeaways

• Acquire• Integrate app launch with other marketing

strategies

• Engage

• Personalize

• Collect data on how, when, where consumers are using the app

Recommendation: Nutella USA

http://www.nutella.it/it/siti-nutella

Brand Background and Introduction

• Made in Italy in 1940’s

• Owned by Ferrero

• “A delicious blend of fresh hazelnut, skim milk, cocoa”

• #1 spread in Europe

• Markets itself with a healthy lifestyle

Current Mobile Strategy

• “WakeApp!”• Italian• Hasn’t been updated since 2013• Doesn’t integrate the product

http://a4.mzstatic.com/us/r30/Purple2/v4/69/b9/43/69b943c1-407e-2495-bfbc-c18fcc9daa35/icon175x175.png

“WakeApp!”

http://www.appannie.com/apps/ios/app/wakeapp!/

“WakeApp!” Stats

http://www.appannie.com/apps/ios/app/wakeapp!/app-ranking/#type=best-ranks

Mobile Site

Previous Online Ads

*as of 3/24/15 at 2:30 PM

Social Media Stats

• Facebook: 29 M

• Twitter: 146.5 K

• Instagram: 65.2 K

• Pinterest: 4,585

• Tumblr: ?

• Vine: no account, Vine 1, Vine 2

Recent Competition

http://theconfectioneryindustrynews.com/tag/nutella/

Hershey’s Targets Millennials

http://www.whatsongisinthatcommercial.com/1930s/hersheys-spreads-commercial-song/

Millennial Appeal

• Millennials don’t want to eat what their parents ate

• “…running rampant on college campuses as a substitute for peanut butter”

• “Nutella On The Go”

• Niche appeal

• European background, with American culture

“Millennials Seek Fresh Tastes and Flavors | Millennial Marketing”

Nutella + Millennials

http://believe-in-remedy.cciqn.com/post/112959610589

Brand Strategic Objective and Goal

• Drive sales

• Target Millennials, ages 13-25• Potential life-long customer• Smart phone usage, 83% ownership

Recommended Tactics +

Technologies

Acquisition

• Social Media

• Exclusivity• Code on inside of jar• Invite 2 people to use the app

• Drive Demand• Coupons • Nutella Points

Engagement

• Social environment

• Nutella interacts with users

Personalization

• Profile

• Favorites

• Up vote / down vote

Other Suggestions

• Optimize site for mobile

• Utilize influencers• Vloggers• Cooking bloggers

Source: Baer 96

Conclusion

• Importance of mobile apps

• Estimated 309 billion apps in 2016 (131 billion in 2014)

• Sink or swim