Why mobile advertising?

Well, let me explain

80% of internet users own a smartphone

India is going to overtake U.S to become the second

largest smart phone market in the world with 200+ million users.

India’s web traffic is dominated by mobile phones(72%)

On average, SMS messages are read within 4 minutes.

So highly convertible.

But National Do Not Call registry allows users to stop receiving SMS based ads.

Nearly all phones produced now

are produced with a color screen and

capable of receiving MMS

messages.

MMS messages add a flavor to the

regular messages.

All the tiny banner ads and

pop-ups which you see while

surfing on mobile web browser.

Very unclear, slow to load,

frustrating.

Apps which we use on a daily basis,

related to brands or information etc..

Apart from texting and mailing, smart phones users increasingly use it for games, entertainment purposes, shopping etc..

42% time

spent on

games and

entertainment

31% time

spent on

social

network apps

Rest of time

spent on utility

apps, retail

stores and

other brands

Average app user has 36 apps installed on their

phones.

1 in 4 apps are used regularly

1 in 4 apps are never used

82% of the time spent on mobile phones is by

using apps

People value apps for their simplicity and the value they deliver

As of may 2015, there are 1.5 million apps for Android users. Apple’s app store has 1.4 million apps.

Of the average 36 apps on a smart phone, if 9 are used regularly then only 0.0006% apps are used in the vast app store.

Smart phone apps function offer simplicity to the operation.

Users say they use the apps as they “make their life simpler”

Airlines have apps to constantly monitor the flight status.

As more apps add convenience into their apps,

differentiation is not achieved.

Offering unique benefits is what users want.

Look at Tesco’s virtual store

Integrating social gifting into apps like Facebook has

helped users to send their friends promotional gift cards.

Facebook acquired the Swedish start up Wrapp for this

purpose

Most apps are removed immediately after their use, to ensure reengagement incentives have to be provided.

People show increased affinity towards free apps, offering coupons are other ways of giving incentives

Since most of the apps used on

smartphones are gaming apps,

companies like Red Bull have

designed games such as Red Bull X-

fighters and Red Bull air force.

A lot of computer programmershave entered the app industry asfreelancers, so the cost ofdeveloping apps has considerablyreduced.

So this makes apps a cost-effective way of advertising thanmany traditional advertisingmethods.

Internet usage vary among the world

North America is highest

with 88%and South

Asia is just

19%(lowest)

Net connection speeds vary too,

South Korea has the highest 25.3Mbps with

India lying on the other extreme with 2MbpsGlobal average is 4.5Mbps

So possibility of downloading apps

is less, most phones come with a set

of default apps which cannot be

uninstalled. Very less space

available on phones.

App based advertising is not for everyone.

Depends on the company’s objectives and the demographics they target.

Will have good success in developed nations.

For developing nations and particularly rural markets, new methods should be used.

In app advertising or developing games is one way to reach such markets.

Credits info and images

00 alex @flickr

Andreas@flickr

http://k-bridge.org/wp-content/uploads/2013/02/HBR-2013-03-For-Mobile-Devices-Think-App-Not-Ads.003.jpg?ckattempt=1

tracheotomy bob@flickr

http://techgambia.com/wp-content/uploads/2014/10/Lego-Internet.jpg

Pascal@flickr

Jay reed@flickr

http://img06.deviantart.net/68ee/i/2011/084/4/7/lego_in_india_by_nnstalker-d3cf7cs.jpg

https://advsoc2013.files.wordpress.com/2013/05/3c563a026dbbcc4cc698f3f9edefd9a9.jpg

http://www.cellphonebeat.com/wp-content/uploads/2012/07/sms_is_cool_zkfe2.png

http://www.fortdigital.com.sg/web/images/stories/ScreenShot205.jpg

https://samuelmundella2media.files.wordpress.com/2014/09/screen-shot-2014-09-04-at-14-00-46.png

http://minibricksmadness.com/wordpress/wp-content/uploads/2010/09/pumpkin_kit_scale.jpg

https://c1.staticflickr.com/5/4088/5014898933_e9d7292f36_b.jpg

https://willslade.files.wordpress.com/2013/01/lego_builder5.jpg

http://evilspeculator.com/wp-content/uploads/2010/11/simplicity.jpg

https://www-techinasia.netdna-ssl.com/wp-content/uploads/2013/05/AppsEverywhere.jpg

http://www.smartinsights.com/mobile-marketing/mobile-marketing-analytics/mobile-marketing-statistics/

http://photos.state.gov/libraries/belgium/8548/cons/FINGERPRINT.jpg

http://m.c.lnkd.licdn.com/mpr/mpr/AAEAAQAAAAAAAANfAAAAJGU3NDI4NWYyLTI5OTEtNDg5NS04NDE1LTg5MzY4OTg2ODZiZA.jpg

https://s-media-cache-ak0.pinimg.com/736x/a1/5a/74/a15a7490d4b74cf5cee946638ae2c892.jpg

http://i.ytimg.com/vi/WNAbAYgerq8/maxresdefault.jpg

https://tssharp.files.wordpress.com/2013/09/lego-money.jpg

http://bensbargains.com/thecheckout/wp-content/uploads/2013/05/lego-facebook.jpg

http://i.imgur.com/XdU7V.jpg

CREATED BY

P. VISHAL, IIT MADRAS

DURING AN INTERNSHIP

UNDER PROF. SAMEER

MATHUR, IIM LUCKNOW

WWW.IIMINTERNSHIP.COM

Thank You