New Report Released by Button and App Annie – 2017 Index: The Mobile Consumer – Analyzes Industry Growth Alongside Consumer Needs and Marketer Spend
The mobile economy is seeing explosive growth – that’s no surprise. According to the 2017 Index: The Mobile Consumer, a new report commissioned by mobile partnership platform Button and most trusted app market data and insights company App Annie, alignment with what consumers want and where marketers are focused is not there. The report dives into the views of three important constituents when it comes to mobile: industry growth, the consumer’s wants and needs, and how marketers are approaching it all.
Overall, consumers are turning to their favorite apps daily for a range of reasons, spending more time than ever in them. In mature markets this breaks down to one month out of every year spent in apps. But people still feel they’re missing out, so much so that over a third of respondents feel they’re actually missing out on great new apps (37%), and even feel they’re hard to discover (38%). They aren’t willing to download just any app though; people not only want quality but also a known source. According to consumers, the top two scenarios for finding and installing a new app: searching the iOS App Store/Google Play and if prompted by a trusted app/source they’re familiar with.
Consumers are 2x more likely to install from a trusted source compared to an ad on social media, and 4.5x more than an ad on a search browser (e.g. Google Chrome).
Consumers rely on sources they trust when discovering new apps. A majority (64%) stated they’d be more willing to purchase through and/or install a new app if prompted by a source they trust. Yet when you look at where app marketers are spending mobile ad dollars, more than half (57%) goes to the Facebook/Google duopoly.
- 55% have never downloaded an app and/or make a purchase immediately after seeing a Facebook ad
- 64% “never” or “rarely” intentionally click on a mobile ad (only 8% stated they intentionally click “often” or “very often”)
- 52% have intentionally clicked on a mobile ad for another app (a decline from 57% in 2015), but only 44% have clicked on a mobile ad and downloaded an app
There’s a big opportunity at hand for brands to get ahead, especially emerging brands. Younger, digital-first shopping brands such as Poshmark, Wish, and Walmart-owned Jet ranked much lower as consumers’ favorite apps compared to retail giants such as Amazon, Walmart, and Target. However, app marketers need a solution to increase discoverability in a cost-effective way while targeting the places consumers trust most.
“Consumer intent lies elsewhere in mobile, beyond Google and Facebook and in significantly higher-converting channels. For instance, affiliate partnerships see purchase conversion of 25% on average, whereas paid social and search see conversion rates of 1% and 4%, respectively. Brands on mobile need to focus on targeting the moments of intent among users, connecting people to what they want in the moment they want it,” Michael Jaconi, Founder and CEO, Button said.
Recommended read: Interview with Michael Jaconi, CEO, Button