Useful Info for Getting Retailers to Advertise on Your Mobile App

Are your retail advertising partners not sure whether your mobile property is the right place for them to advertise? Do you keep hearing questions from them about whether people actual make purchases through their mobile phones? Here are some useful articles to help answer their questions. People are indeed doing product research and purchasing items on their mobile phones. We know from our earlier post that retailers are beginning to gain interest in mobile advertising, but these articles and statistics should help push them across the chasm. I hope this help and please let us know if there is anything we can do to help attract these advertisers for you.

1.) From an interview with Tracy Benson in March 3rd Mobile Marketer

Best Buy claims that its mobile traffic is increasing and actual conversion via mobile devices is strengthening.  While 3 percent of Best Buy’s online traffic is coming from mobile, the conversion rate is 25 percent higher on mobile than on its wired Web site.

Many customers are using its mobile platforms for research, around 30 percent, with 18 percent checking inventory using their handset.  Twenty-eight percent of consumers visiting the mobile platform are using it to make a purchase, and in-store pickup is a key value proposition.

Tracy Benson, senior director of interactive marketing and emerging media at Best Buy, Minneapolis, MN. “We’re one of the largest sellers of smartphones, so we have the benefit of seeing who’s buying the phone, which helps us understand how they’re using it and the adoption rates.

2.) From the Mickey Khan post on ETail West found in March 1st Mobile Marketer

Senior executives from REI, Wet Seal, Yesmail, Netbiscuits and moderator Marci Troutman of Siteminis suggested that retailers focus on five factors when designing a mobile site or application: a great search function, such as the one seen on Amazon’s mobile destinations; easy navigation that is drop-down, simple and intuitive; imagery that allows consumers to zoom in and out – a picture speaks a thousand words; a store location function that drives local traffic; and low-friction transacting capability – get the customer registered with contact and credit card details on the wired Web and then use the same email and password on mobile.

3.) Mobile Shopping in US Will Grow to $2.4 Billion this year. Found in February 17th Mobile Marketer

In the United States, mobile shopping rose from $396 million in 2008 to $1.2 billion in 2009, and ABI Research projects 100 percent growth this year to reach $2.4 billion in 2010.

4.) Smartphone Users Making Purchases Over The Phones. Found in January 4th Online Media Daily

Nearly four in 10 (37%) smartphone owners have bought something not mobile-related over their devices in the last six months, according to the third-quarter smartphone intelligence report from Web analytics firm Compete.


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Pew Research Center Study on the Participatory News Consumer

Yesterday, The Pew Research Center released a new report on the state of news consumers, specifically focusing on the behaviors and habits of digital consumers. What was interesting about this report was the focus that it put on mobile. Click here to be taken to the mobile section of the report. In summary the report finds the follow:

Some 80% of American adults have cell phones today, and 37% of them go online from their phones. The impact of this new mobile technology on news gathering is unmistakable. One quarter (26%) of all Americans say they get some form of news via cell phone today — that amounts to 33% of cell phone owners. These wireless news consumers get the following types of news on their phones:

Wireless news consumers have fitted this “on-the-go” access to news into their already voracious news-gathering habits. They use multiple news media platforms on a typical day, forage widely on news topics and browse the web for a host of subjects.

Among this subgroup of internet-using mobile phone users, Pew found that the vast majority get some kind of news online:

  • 72% check weather reports on their cell
  • 68% get news and current events information on their cell
  • 49% have downloaded an application that allows them to access news, weather, sports, or other information on their cell
  • 44% check sports scores and related information on their cell
  • 35% check traffic information on their cell
  • 32% get financial information or updates
  • 31% get news alerts sent by text or email to their phones
  • 88% say yes to at least one of the above

These are very interesting statistics and the report shows that mobile users and more engaged with their news brands and appreciate news more when it is highly interactive.

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Retailers are Ready to Spend on Mobile

Last week retail executives descended upon Palm Desert, California for the annual eTail West conference. ETail West is North America’s leading multi-channel retail event, so why is this of interest to Spreed, publishers and media executives? At the end of the week over 150 of the top executives opted in to stick around for an extra day and learn all about mobile advertising and marketing. This is the third retail conference that I have heard of that is putting an emphasis on retail and it is clear now that retailers are ready to embrace the mobile market.

Why are retailers now becoming attracted to mobile advertising? Mickey Khan of Mobile Marketer puts it best when he states that, “retailers are now open to the virtues of mobile marketing and commerce. Once again, consumers have led by indicating their new preferences for shopping, searching, emailing, photo-clicking, communicating and networking, game-playing and interacting with ads through mobile devices – on the couch or on the run.”

Publishers and media companies need to take this as a sign that times are changing. A number of companies have been holding off on an application strategy because they didn’t think they could fill the advertising inventory; this is clearly changing. Companies that already have an app should be making sure that their ad platform is conducive to the retail environment.

So what is Spreed doing to help our clients and prospective publishers and media companies attract retailers? Our ad platform he been built with our clients ad partners in mind. We offer a range of advertising options that are perfect for the retail environment. Firstly, we offer mobile flyers, which allow users to browse through a retailers entire catalog directly through a publishers applications.

Secondly, we are offering location based advertising which will connect readers to brick and mortar businesses as they approach them geographically. We know how many applications are being opened within the general vicinity of retail locations and these analytics can be very beneficial in closing leads and offering value. Both of these options have the potential to engage the users in a high value interactive setting and can offer great returns to advertisers.

We are excited to be hearing about the interest in the retail market and would suggest that all of our clients begin speaking to these prospective advertisers as well as Spreed about what the different ad opportunities are.

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January’s AdMob Report: iPhone Users More Willing To Buy Apps

January’s Admob report came out and there were some very interesting statistics that were released around app usage and user purchasing habits. Some of the more compelling statistics are:

  • iPod touch owners download an average of 12 applications a month, 37 percent more than iPhone and Android users who download approximately nine new apps. webOS users downloaded an average of six applications per month.
  • iPod touch users spent an average of 100 minutes per day using applications. webOS users spent an average of 87 minutes per day, followed by Android users at 80 minutes and iPhone users at 79 minutes per day.
  • iPhone represented 47 percent of US smartphone usage in AdMob’s network in January 2010, followed by Android, RIM and webOS devices at 39, seven, and three percent, respectively.

The most interesting statistic as it relates to newspapers and potential paid application was  that:

  • iPhone users continue to download more paid applications, with 50 percent of users purchasing at least one paid application a month compared to 21 percent of Android users.

What does this mean to publishers? Well it could mean that if you are looking to build apps for every platform it may make sense putting more emphasis on the iPhone. You can create a pretty basic Android app that simply reads the news, not invest a lot of money into it and give it away for free. However, on the iPhone if you invest more time and money on rich features you will see a greater return as users will be willing to pay for your application.

These finding make a lot of sense given the recent news from The Guardian. If the Guardian can charge $3.99 for their app and still get over 100,000 downloads in just 2 months, why can’t you? Running a trial with paid apps may make sense on the iPhone, at least for a short while to analyze acquisition rates.

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Congratulations to the Guardian

The UK’s Guardian is one of the most innovative newspapers in the world when it comes to digital media. About two months ago they launched their iPhone app which costs $3.99 in the iTunes app store. In only two months they have broken the 100,000 download mark which means they have made a staggering $400,000 – 30% that goes to Apple.

This is great news and something newspaper publishers around the world should be paying attention to. Not only does it prove that consumers want to read their news through native mobile applications, but it also proves that they are willing to pay for this privilege.

A big round of applause go to the entire Guardian Digital Team for their pioneering work in the mobile media ecosystem. Congrats!

Download the app here

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