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The global state of the mobile app & push notification markets

Steve Olenski
Master Principal Sales Architect

On May 28, the webinar entitled Push Your Mobile Marketing Strategy Forward was held. Co-presented by Joe Pezzillo, Senior Director, Push Operations & Adoption, Oracle Responsys and Thomas Husson, VP & Principal Analyst, Forrester Research, Inc, it was broken into three topics.

The first topic was the global state of the mobile app & push notification markets.

Here are some key highlights:

Apps continue to dominate vs. mobile web

  • According to data from Flurry Analytics the time spent on apps has increased from 2013 to 2014 from 80% to 86% while conversely the time spent on the mobile web has decreased from 20% to 14%.
  • The increase in app usage can be traced to what Pezzillo refers to as "The App Ownership Experience" which essentially means the consumer can better replicate their experience in a traditional retail environment via an app than via the mobile web.

The “Wild West” has matured while cost has gone up

  • In the beginning, apps were literally built by hand. Today there are frameworks and generators to build apps at a much faster rate.
  • However, with this increased speed comes a significantly higher price tag. According to the AnyPresence Mobile Readiness Survey Report 2013, over 50% of respondents indicated they had spent between $50,000 and $500,000 to create an app.

As costs increase, so does the need to justify ROI

  • A joint study by the ANA (Association of National Advertisers) and MediaVest revealed that while 96% of marketers currently use or are planning to incorporate mobile marketing into their marketing mix  less than half report an ability to prove ROI.

Use of push notifications need to be tied to the purpose of an app

  • Marketers need to know 1) why to put push notifications in a given app and 2) what the app does.
  • There are three broad categories to consider:
  1. Free app monetization. You may offer a free app and are looking for an in-app monetization, which could be in the form of an indirect relationship with the brand or in-app purchase or in-app advertising.
  2. Direct sales. You may be offering an app for sale whereby the push notifications become part of the selling point of the app itself.
  3. Ecommerce. You may not be selling in-app purchases, but you are leading the consumer down a path to purchase.

Inherent expectations when it comes to push notifications 

  • Consumers today are very well aware of the usage of push notifications for marketing purposes. Digitally savvy consumers have come to expect push notifications adhere to the following three tenets:
  1. Relevant
  2. Timely
  3. Personalized

The global app ecosystem is evolving quickly

  • As you can see in the map below, the combined revenue from iOS platforms is largest in the US and many other countries while Google Play is beginning to pick up some steam in others.

Mobile Webinar PPT screencap

The browser is becoming less and less popular among mobile users

Mobile Webinar PPT screencap2

Many marketers have still not embraced push notifications

  • Of the top 100 retailers with a mobile app, 66% are actually sending push notifications, while the rest do not send pushes.

To hear the entire webinar please click here and look for the second part of this three-part series coming next week!

PLUS...  We are proud to announce the launch of the first-ever Mobile Orchestration Guide!

The premise is that mobile marketing has fundamentally shifted consumer behavior. Marketers have responded by using an assortment of tactics  SMS, push notifications and advertising but most are delivered in silos, creating fragmented experiences that frustrate customers.

The real opportunity lies in mobile orchestration: unifying mobile technologies and delivering experiences that speak to customers as individuals.

Our new guide provides expert guidance to get your mobile marketing orchestrated, from basic talking points to examples and steps you can take today.

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