It’s no secret that 65% of downloads come from search, and Apple Search Ads has been helping developers acquire millions of users since it launched in 2016. Search ads can allow developers and marketers to drive impressions to users intending to download an app with the features, functionality, or competitor relevancy of their app. This is makes it one of the most effective ways to drive installs from more engaged and active users.
Marketing mobile apps can seem confusing if you’re not sure where to begin. Traditional methods, such as Google UAC and Apple Search Ads, are a great way to get started, but they’re not the only way. In fact, many developers find they’re not the most effective, either.
Game developers are gearing up for the Game Developers Conference 2018 in San Francisco. Many are excited to experience the expo, attend networking events and, of course, represent at the coveted Independent Gaming Festival and Game Developers Choice Awards.
The launch of the iPhone and the App Store in 2007 heralded a new era in mobile technology. More specifically, it led to the explosive growth of smartphones and related technologies such as app development.
The expansion of the smartphone space led to the creation of new terminologies and vocabulary specific to the industry.
Here are some of most common terms and acronyms in the mobile app space and mobile marketing:
Cost per install (CPI)
Cost per install (CPI) or cost per acquisition (CPA) is the money an advertiser/marketer pays an advertising network after a consumer downloads and installs a specific app.
This is irrespective of the number of impressions an app generates. It is important to note that some advertisers use the term cost per download (CPD) to refer to cost per install.
However, CPI and CPD are different terms because a consumer may download an application and fail to install it.
Cost per impression (CPI)
Cost per impression is the amount a marketer pays an ad display network whenever an online ad is displayed on a web user’s device.
Every time a consumer sees the ad, the display network counts it as one impression.
Nevertheless, cost per impression is highly controversial for several reasons. For instance, an ad could be displayed on a webpage part that is not easily visible to site visitors such as the footer section. As such, an advertiser could end up paying for ads that consumers never saw.
To resolve this problem, some modern CPI programs exclude actions such as page reloads and failure to scroll by the section where an ad is displayed.
Lifetime value (LTV)
Lifetime value or customer lifetime value (CLV) is a measure of the total worth of a customer to a business over a given period (usually over the entirety of a business relationship).
This is a key metric because it enables business owners to make reliable future operational plans and allocate their financial resources more appropriately.
Moreover, you can also use this metric to determine whether a young and growing business is financially viable over the long term.
Simply put, retention refers to the ability of a brand to attract repeat customers.
Retention is closely tied to the term “retargeting,” which refers to activities aimed at re¬-attracting customers who were loyal to a brand and abandoned it at some point in the past.
Some of the strategies businesses use to improve their retention rates include better service delivery, replying customer queries fast, competitively pricing goods and services and continuous innovation.
Cost per mile (CPM)
Cost per mile is the amount of money marketers pay ad display/delivery networks per 1,000 impressions.
Unfortunately, all impressions under this category are valid irrespective of whether a consumer takes an action or not. As such, most marketers do not consider CPM a reliable and effective marketing method.
In fact, tech savvy entrepreneurs use CPM impressions to keep their brands in front of consumer eyeballs. Nevertheless, you can include a CPM strategy in your marketing plan if prior usage resulted in high click through rates (CTRs).
Cohorts or cohort analysis is a mobile analytics technique that enables entrepreneurs/businesses to identify consumer segments that fit a specific description or fall into industry-specific/different categories.
In most cases, cohort analysis focuses on consumers that took a desirable action within a specific period. For instance, you can use cohort analysis to determine the number of unique mobile device owners who use your brand’s app monthly.
You can also use it to determine the average revenue per new, the number of repeat customers and churn rate. Most of the free and paid mobile analytics solutions have a cohorts feature.
A good example is Google Mobile App Analytics that has an easy to use cohort analysis feature (you can use it to evaluate the behavior of customer groups in relation to a common attribute).
Software development kit (SDK)
A software development kit is a toolkit that programmers and developers use to create mobile apps.
As such, it contains all the tools required to build a fully functioning application including supported programming languages, relevant libraries, coding language documentation, and a few examples.
Although there are platform agnostic SDKs, some are platform-specific, meaning they only support the development of apps unique to a platform or mobile OS ecosystem. Of course, some SDKs support open source or paid software design tools.
In fact, Apple’s mobile SDK supports a programming language called Swift that was designed solely for developing iOS, OS X, tvOS, and watch OS apps.
What’s more, Apple has released the Swift programming language under an open source license, meaning programmers and developers can tweak its source code to suit their app development needs.
Application programming interface (API)
Application programming interface (API) is probably the most widely mobile technology term. In simple words, an API is a set of protocols, rules, and commands that govern the way different software tools/programs should interact with each other.
The aim is to enable one software programs to access and deploy the functions of another program using a universally applicable set of rules/commands.
For instance, social networking sites (Facebook, Twitter, and LinkedIn), B2C platforms (Uber and Airbnb), and business solutions (Salesforce and Slack) have APIs that developers and programmers can use to access specific resources like consumer data.
Some APIs also enable web users to access server-side resources such as login details (usernames and passwords). Moreover, APIs have become popular and essential because you can use them to build a business on top of another established company’s web platform.
For example, Salesforce allows developers to access its API and use it to build business solutions that are hinged on its cloud-computing infrastructure.
Key performance indicator (KPI)
A key performance indicator (KPI) is a metric used to measure the performance of a brand or its ability to achieve pre-defined goals.
KPIs vary widely depending on market/industry segment, target audience, type of goods/services on offer, and business size.
Examples of common mobile KPIs include total app downloads, revenue per user (RPU), monthly active users (MAUs), LTV, session length, cost per lead, traffic-to-lead ratio, and lead-to-customer ratio.
The growth of mobile marketing and mobile app development has led to the creation of industry-specific terms and acronyms.
Examples of popular mobile terms include CPI (cost per install), CPI (cost per impression), LTV (lifetime value), CPM (cost per mile), cohorts, SDK (software development kit), API (application programming interface), and KPI (key performance indicators).
Pause to look around and you’ll see the same thing practically everywhere you go — people staring into their phones.
For companies trying to promote products or services, these people are all potential customers. If developed correctly, a strong mobile marketing campaign can provide a company a lasting return.
Companies thinking about implementing a mobile marketing strategy can learn numerous lessons from some of the most successful campaigns to date.
Successful Mobile Marketing Campaigns
Statistics show that approximately 84% of companies don’t have a formal mobile marketing strategy, however, some have found enormous success by implementing one.
Two of the most triumphant mobile campaigns to date were developed by Starbucks and Nivea.
Starbucks Mobile App
Their mobile application, aptly named Starbucks, allows the customer to see a store locator, a rewards program, and gift card information.
The company found that they could best engage their customers by offering special bonuses and incentives like birthday gifts, discounts, and complimentary beverages. This strategy helps customers engage because they are constantly using the app to receive free stuff.
Everyone loves free stuff.
Starbucks also seamlessly incorporated a loyalty program into their app. They found that users are likely to continue buying beverages with the goal of earning a free one.
As a result, the company is able to continuously gather information about their customer base and buying habits. The incentive program works by collecting stars each time a purchase is made. When customers collect a certain number of stars, they can redeem them for more benefits or prizes.
Another important element of the mobile campaign was the addition of short message service marketing (SMS). Audiences can fill out surveys sent through the phone and, with each survey filled out, more stars are given to the customer.
The latest feature to be added to their mobile Starbucks app is Mobile Order and Pay. This allows a customer to pay in advance before picking up the actual beverage.
It is estimated that 7 million people are currently signed up to the Starbucks mobile application, and that sales have increased 22%.
Lesson Learned from Starbucks
Perhaps the most important lesson to be learned from this app is to research the motives of your customers.
Be aware of how you can make the customer happy while guiding them towards buying something at the same time.
Understand the desires of your customers and use them to your advantage.
By using mobile tactics to reward their patrons, Starbucks has increased customer retention, lifetime value, and loyalty.
The app also entices the audience to participate in surveys for stars.
Most people fill out the surveys because they know it will bring them one step closer to earning another paid reward. Without the app, chances are slim that customers would take the time to fill out anything, depriving the company of valuable marketing information.
Another example of an amazing mobile marketing campaign is the Nivea Sun Kids range app.
The Nivea ‘protection ad’ wasn’t just a mobile project. It combined mobile marketing with print ads to create a one-of-a-kind campaign.
Print advertisements in magazines had a removable “protect strip”, similar to a wristband, to be placed around the child’s arm, when they were out at the beach.
Then the parents download the mobile app, which communicated with the arm bracelet. If the child strays too far outside the range of the bracelet, the app beeps, alerting the parents that their child is wandering away.
The campaign was developed by Brazilian ad agency FCB and has generated tons of excitement for it’s out of the box thinking.
Lessons to Be Learned from Nivea
This campaign was so successful because it makes the customers feel like they’re genuinely being helped, not merely sold to.
Nivea thought of a campaign that didn’t focus strictly on it’s products. It focused on what their customers wanted — the protection of their children from getting lost and sunburned.
They are still receiving requests for wristbands and skyrocketing sales associated with the campaign are an added bonus.
Clearly, preparation is the key to a successful mobile marketing campaign. The most important lessons learned from these two successful campaigns are:
– learning what your customer wants and needs
– being able to gather information on their purchasing habits
– making them feel involved and part of the process
– gaining their loyalty and trust
If all these objectives can be achieved, your mobile marketing campaign is sure to be a hit. Study other successful, and unsuccessful, campaigns to learn as much as possible, and be able to adapt to the ever growing mobile consumer market.