3 Things the Mobile Industry Can Learn From Ads in Games
As ubuquitous as the mobile industry is becoming, and as fast-changing of a world we live in, it’s important to sometimes PAUSE for a moment, and really look and ask – “is what everyone else is doing really working?” Often times, the ‘heard mentality’ takes its toll where firm after firm is following the others ‘best practicies’ from analysts who who get their data from the same set of people who are implementing the meteocur practices that are imposed by no other than themselves. The system goes around, and around..and marketers who are following the ‘best practices’ are really just following the ‘statuos quo’. As the saying goes, if you follow the heard – you’re bound to step in some sh#t.
Today we’re going to look at things we can learn from the mobile gaming industry, advertising in particular. So let’s jump into it.
Bye-bye Banner Ads
But really, when was the last time you PURPOSELY clicked on one of those small rectangular banners on the top or bottom of your screen?
It would be safe to say that 0.5% click-through rate (CTR) is probably from fat thumbs rather than consumer interest. Not to mention, app developers don’t actually like ruining their beautiful apps with what has become a necessary evil. There IS a better way to monetize your apps than with that small rectangle our eyes have been trained to overlook, and Mobile Game Devs have found it. Through native ad mechanics like: app discovery walls, proper product placement, and personas, developers have been able to seemly integrate their advertising. This not only leads to clicks, but action.
Engagement and downloads are actually often more than 350% higher than engagement of non-native (banner) ads. Freemium not only accounted for 76% of App revenues last year, but it’s really changing the app ecosystem.
Who Still Wants to Pay for Apps?
As stated above, 76% of App Revenues were a result of freemium, this left only 6, or 8% for Premium apps. The rest were Premium, with In-app purchases, obviously not accounting for revenue generated through advertising. Gaming companies were the first to adapt and master the art of making money from free apps with the freemium business model. With a ‘try before you buy’ approach implemented through virtual currency, developers have circumvented the need for pay to play. Additionally, it presents many opportunities for CPA, and CPI monetization strategies. The question at the end of the day is:
“Is a customer who is rewarded to engage with an ad as valuable as one who is not?”
Answer: It’s been proven both on and offline.
Direct Response is Key
Despite the fact that 30% of gamers are actually older women (as we discovered yesterday) big brands still want to reach this affluent young audience of teenage gaming masters when they’re deciding which credit card to get, car to buy, or razor to use. In fact, some brands have already began creating tailor-made branded games as a means of reaching this desirable segment, for instance: Teen Vogue’s game Teen Vogue Me Girl and Disney’s Brave-branded version of Temple Run or McDonald’s Mouth Off game.
Even though big brands continue to proliferate in mobile gaming, the majority of cross-promotion is still done between app developers.
Kevin is an Online and Mobile Marketing Strategist who has worked with companies of all sizes over the last 6 years. You can follow Kevin on any of the social platforms below.
