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What’s working in mobile July 2020
Post-pandemic channel trends
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Takeaways
1: Brands should review their mobile payment capabilities. The rise of e-commerce during the pandemic accelerated the acceptance of digital payment apps. UK grocer Sainsbury’s saw a surge in usage of its in-store shopping app, SmartShop.
2: Mobile gaming has become an attractive space for brands exploring new channels for engagement. Gaming advertisers enjoy the full attention of audiences, offering the opportunity to create rich and interactive media experiences.
3: Gaming is no longer a boys’ club. Activision Blizzard Media, owner of games including Call of Duty and Candy Crush, revealed that 40% of its 400 million users are female. Brands including Maybelline are using gaming to reach female buyers.
4: Creating ‘meme-able’ moments can help your brand to drive culture. Mobile audiences turn to TikTok for positivity, humour and entertainment. e.l.f. Cosmetics achieved success with an campaign on TikTok promoting social distancing.
5: Brands failing to provide users with a great mobile experience will get left behind. During COVID-19, Starbucks China continued to take online orders through its Mobile Order & Pay app, allowing customers to order in advance for in-person pickup.
6: Mobile provides brands with the opportunity to reach highly-engaged individuals with personalised, hyper- targeted messages and offers. Mobile and apps featured in the media mix for half the shortlisted ads for the 2019 WARC Media Awards.
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Global mobile ad market: The big picture
Post-pandemic channel trends
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Global, Annual growth in ad investmentMobile media is proving resilient
Mobile marketing has suffered less that traditional media during the pandemic.
That is not to say the channel has been immune to the impact of client budget cuts caused by the onset of recession.
COVID-19 dragged digital spend into decline for the first time ever in April 2020, according to WARC’s Global Marketing Index, with GMI registering a further drop for mobile spend in May.
However, mobile media is still expected to grow by 6.1% globally in 2020. Note: Data are net of discounts, include agency commission and exclude production costs.
SOURCE: WARC Data, Adspend Database
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Note: Data are net of discounts, include agency commission and exclude production costs. SOURCE: WARC Data, Adspend Database
Global, Mobile ad investment, US$ billionsE-commerce fuels boost to mobile spend
Brands are redirecting investment from other channels into mobile.
WARC Data forecasts that mobile’s share of the total global advertising market will grow to 35.8% in 2020, up from 31% in 2019 – and continue to grow into 2021.
With brands focused on re- adjusting strategies in light of the recent surge in e- commerce spend, mobile display, apps and games are perfectly placed to capture an increase in performance marketing spend.
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Global, Mobile ad investment, Share of online spendMobile is winning share from desktop
As well as stealing ad dollars from traditional media, mobile continues to outperform desktop.
Mobile’s share of online spend continues its upwards march, with WARC Data forecasting a year-on- year increase in share from 64% to 67.5% in 2020.
This outlook is echoed by PubMatic, which claims that mobile was much less affected by COVID-19, suffering only a 15% post- impact dip in ad spend, compared with desktop ads, which fell 25%.
Note: Data are net of discounts, include agency commission and exclude production costs. SOURCE: WARC Data, Adspend Database
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Mobile Other online devices
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What’s working in mobile: Insights
Post-pandemic channel trends
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Sainsbury’s ‘SmartShop’ app
1. Consumers adopt mobile payments
COVID-19 has accelerated the adoption of digital payment technologies.
UK grocer Sainsbury’s saw a surge in usage of its in-store shopping app, SmartShop. The app allows users to pick up and scan products and then skip checkout queues, thereby helping them to maintain a distance from other shoppers.
By May, almost a third of the retailer’s total sales were being processed via SmartShop.
The latest research from GlobalWebIndex found that nearly one-in-two people (46%) plan to shop more online, with 37% of global respondents expecting to use mobile payments more frequently after the COVID-19 outbreak is over.
Unsurprisingly this attitude is most prevalent in younger, Gen Z-aged respondents. However, just under a fifth of Baby Boomers (19%) agree they will be using payments apps more often in future.
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2. Online gaming media comes of age
Mobile gaming has become an attractive space for brands exploring new channels for engagement.
App analytics platform Sensor Tower found China saw the most rapid growth in the rate of gaming app downloads early in the pandemic, near-doubling (+89%) during the 30 days before the 200th COVID-19 case and the 30 days after.
Mobile gaming now accounts for over one-tenth of online activity in China, and the market will be worth $72.6bn globally in 2020.
Global, Gaming app downloads during COVID-19 Millions and % change, before/after the day of 200th case
Note: Chinese data is Apple App Store only, all other markets include Google Play. SOURCE: Sensor Tower, Data Digest Q1 2020
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WHSmith: Pop Up Books
2. Online gaming media comes of age
Book retailer WHSmith drove sales and footfall through a gamification strategy in the United Arab Emirates.
With the average Arab Emirati child reading for just six minutes a year, WHSmith wanted to rekindle the passion for reading among them and reverse declining book sales.
It selected popular mobile games and remodelled a range of globally renowned children’s
books as gamified short stories that gave rewards upon completion.
The stories were released across popular gaming apps over the course of a year, and targeted based on the age of children and which games they were interested in.
98% of the stories were read until the end, footfall increased and sales rose by 11%, generating a ROI of 20:1.
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The online gaming industry has long strived to challenge the “myth” of gamers as spotty teenage boys
Activision Blizzard Media, which owns games including Call of Duty and Candy Crush, reports that 40% of its 400 million-plus users are female.
A recent survey of mothers aged between 20 and 54 in the US, UK, France and Germany found that over 90% play
mobile games at least once a week. Nearly three-quarters play on a daily basis.
Motivations for playing include relaxation (58%) and socialising (37%) and gaining “a few moments to myself” (45%) – all important emotional aids for consumers, particularly during the pandemic.
However, this audience is notably less likely to self-identify as being ‘gamers’.
Activision Blizzard’s ‘Gamer Mom’ audience
3. Targeting female gamers
SOURCE: Activision Blizzard Media, ‘Mom’s Got Game’
of ‘gamer moms’ play mobile games daily
74% play PC or laptop games daily
38%
play console games daily
33% self-identify as ‘gamers’
48%
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Maybelline: QQ Dancing
3. Targeting female gamers
Cosmetics brand Maybelline partnered with QQ Dancing to increase sales among female gamers in China.
The company created a facial- scan feature, with which women could scan their faces via smartphone cameras and instantly have their features reflected in their game avatar.
They could customise their avatar, and even virtually try on Maybelline lipstick shades using the app. Users were then
led to Maybelline’s e-commerce store to purchase the products.
Consumers could also experience QQ Dancing in real life via outdoor pop-up stores across the country.
This became a hit with women in lower-tier cities, driving a sales uplift for the brand. The campaign achieved 150 million impressions in the game and more than 10,000 girls visited 24 Maybelline pop-stores across 10 cities.
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Creating, a ‘meme-able’ moment, such as a TikTok hashtag challenge, can help your brand to drive culture.
Mobile audiences turn to TikTok for positivity, humour and entertaining content. The video platform saw a 27% increase in engagement between February and March 2020, according to data from Obviously.
TikTok’s strength lies in its ability to react to events as
they happen and respond with tailored content. It is also an effective way for brands to create loyalty and engagement amongst younger consumers.
e.l.f. Cosmetics achieved success with an influencer-led TikTok campaign. It promoted social distancing by remixing a well-known iLL Wayno song, ‘Eyes.Lips.Face’, highlighting the basic measures consumers could take to stop the spread of coronavirus.
e.l.f. Cosmetics: Eyes.Lips.Face.Safe
4. Creating ‘meme-able’ moments
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5. Mobile UX impacts sales
Brands failing to provide a great mobile experience will be left behind.
GlobalWebIndex found that 71% of global consumers spent more time on their mobiles during the pandemic than previously. Brands that don’t monitor the speed and quality of their mobile sites will lose customers.
Deloitte Digital research into brand mobile site data showed that a mere 0.1 second improvement in load time can influence UX. Conversions grew by 8% for retail sites and by 10% for travel sites on average.
Device usage % who say they’re spending more time using devices since the start of the COVID-19 outbreak
SOURCE: GlobalWebIndex, Coronavirus Research May 2020
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Starbucks China’s online experience
5. Mobile UX impacts sales
Brands including Starbucks and Levi’s have used mobile apps to maintain customer acquisition and engagement during the pandemic.
In the case of Starbucks China, it allowed consumers to order products through its Mobile Order & Pay app. Customers could order in advance or pay at stations outside stores for in-person pick-up.
The company has also established a delivery
partnership with Alibaba.
Starbucks China has rolled out a succession of online retail experiences, such as Starbucks Now and Starbucks Delivers, which includes mobile order, tracking, payment, loyalty and e-gifting.
In Q1 2020, mobile orders in China accounted for 15% of Starbuck’s total revenue, up 10% from the previous quarter. Delivery accounts for 9% of those sales.
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6. Mobile’s hyper-targeted potential
Mobile advertising provides brands with the opportunity to reach highly engaged individuals with personalised, hyper- targeted messages.
The channel is rising up the agenda for advertisers – mobile and apps featured in the media mix for half the shortlisted entries for the 2019 WARC Media Awards.
Brands can use mobile location data from consumers that opt-in to deliver ‘moments’ to drive purchase behaviour.
Media used – 2019 shortlist vs. 2018 shortlist (selected media)
SOURCE: WARC 2020 Media Strategy Report
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Next steps
1 Get the basics of mobile marketing right.
Before investing in gamified apps and clever TikTok content, marketers should ensure the mobile experience they are offering is acceptable to consumers.
Do apps and mobile sites take too long to load? Is the path to purchase overly complex? These issues must be addressed as a matter of priority.
2 Understand the potential of mobile payments.
The marked uplift in online shopping may have been prompted by COVID-19, but the behaviour change is expected to long outlast the pandemic.
Mobile payment technology has been growing in popularity for some time, and may soon become a must-have for brands selling direct to consumers.
3 Find out if your brand would benefit from engaging with gamers.
Recent research has revealed the scale of the female gamer audience, especially when it comes to mobile games. The myth of the spotty teenage boy in his bedroom may soon be banished for good.
Online gaming advertising is a quickly-maturing channel, and one brands ought to explore.
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Contact us
Cathy Taylor Commissioning Editor, US
David Tiltman VP Content, WARC
Lena Roland Managing Editor, WARC Knowledge
Alex Brownsell Senior Media Editor
Anna Hamill Senior Editor, Brands
Catherine Driscoll Commissioning Editor
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