Feel the Heat: the DMA-Summer Continues
This article was originally published on LinkedIn. Robert Wildner, CEO of AVOW, highlights the EU's tough stance on the Digital Markets Act (DMA) affecting Meta, Apple, Google, and TikTok. He notes significant regulatory actions, including Meta’s “pay or consent” model scrutiny and Apple's concession on app store rules, while also addressing the DMA’s impact on AI deployment and technological progress.
First, some bad news. Summer is nearly halfway over. It must be time to hit the beach, right? Not if you’re in the app economy. As I reported last month, the EU has been flexing the muscles behind its Digital Markets Act (DMA), the policy it launched in March designed to put an end to the monopoly enjoyed by certain tech giants. From then on, Europe’s lawmakers said, companies such as Apple and Google had to let others get a piece of the pie. Unsurprisingly, things haven’t been straightforward. But few expected Europe to get as tough as it has.
July was a good example. From Meta facing the full weight of the DMA’s jurisdiction to Apple, Google, and TikTok struggling with the new reality for their activities in Europe, it’s been an important month for the legislation. Indeed, while I’ve previously documented critics who have suggested that the EU lacks the teeth to enforce its new law, what we’re seeing is the opposite. So let’s get into it.
Photo by Rohit Tandon on Unsplash
1.The EU gets tough on Meta
Since I last updated this blog, the biggest story has been that, in a preliminary investigation, the EU found that Meta’s “pay or consent” user model breached the DMA. Last year, Instagram and Facebook, owned by Meta, told users that, in order to continue using these platforms they either had to agree to their data being tracked or else pay a subscription fee. According to the EU, this goes against its anti-steering laws. Now, Mark Zuckerburg’s company has until September 1st to comply or else potentially follow Apple in facing a penalty of up to 10 percent of its global profits.
It’s an unambiguous rejection of the unfair advantage that some of Silicon Valley’s biggest names have, until now, been accustomed to. What’s more, it demonstrates that the EU means business when it comes to compliance: a win-win for both anti-monopoly campaigners and data privacy activists alike. Naysayers should therefore take note. The DMA really isn’t just another empty piece of “Eureaucratic” lore.
Photo by Daria Nepriakhina 🇺🇦 on Unsplash
2. Apple, Google, and TikTok grapple with the DMA
As mentioned, however, it wasn’t just Meta that felt the heat in July. Apple, Google, and TikTok were under pressure too. In terms of the iPhone manufacturer’s monumental fight to prevent the mobile game Fortnite from returning to its App Store (after kicking it off for having the temerity to include in-app purchases…), this saga appears to be over. Following threats from the game’s developer, Epic, to escalate this case to the EU, it now looks certain that the title will be available on iOS soon. In addition, Apple also finally rolled over in its attempt to block third parties using its Apple Pay technology. Whoever said miracles are impossible?
Next up: Google. As regular readers know, the search engine behemoth has dropped off the DMA-map these last few months, appearing to have meekly complied with the EU’s demands. Well, that doesn’t appear to be the full picture. As Forbes exclusively reported last month, Google has allegedly been scraping data from users. According to the news platform, Google has been using Chrome to collect device and performance data—a possible breach of DMA rules. Simultaneously, the European Commission is also looking into whether Google’s AI deal with Samsung prevents other companies’ chatbots from appearing on Samsung smartphones—another potential DMA no-no.
And then there’s TikTok. Recently it tried to wiggle out of its designation as a DMA-gatekeeper by appealing this status, but last month the EU rejected its plea. Along with Apple, Google, Meta, Microsoft, and others, it will now have to obey the EU’s anti-steering standards. In all, it’s another resolute decision. But can Europe keep this level of enforcement up? Time will tell, but right now things are positive.
Photo by Thom Holmes on Unsplash
3. Ghost in the machine: the EU locks horns with AI
Finally, the major DMA-related story in July relates to artificial intelligence. As I wrote in my last update, Apple is withholding its new AI-powered iPhone tech over regulatory concerns about the DMA. Well, now Meta is following suit, withholding its generative AI tools in the EU until further notice too. Given that both companies are also facing compliance investigations, certain outlets are speculating that there may be a link between these two things. Is there really a pattern?
Whatever the case, some industry professionals might be getting the impression that the DMA is blocking technological progress, which is never a good thing. On the other hand, many leaders also believe that the slow deployment of consumer AI in Europe isn’t necessarily bad. Recently, the UK, the US, and the EU issued a joint statement on generative AI, urging caution before allowing tech companies to unleash it on the market. Moreover, France has also suggested that AI-powered platforms might need to be policed under the DMA too. So who’s right?
For me, Sarah Wilson at BuzzHint strikes a good balance. In her recent article, she argues that while AI is good for marketing—and therefore good for economic growth—it’s also a double-edged sword, “where there is a risk of entrenching the market power of platforms that can effectively exploit certain technologies.” The solution? A careful balance, and one that, in my opinion, is immensely achievable via the DMA, which can act as an effective arbiter of what’s acceptable in the Bloc.
And once again, that’s it for another edition. I look forward to greeting you again in September.
—Robert.
This article was originally published on LinkedIn.
From Black Friday to Diwali: Mobile OEM Advertising Tips for Every Market
The shopping season usually reaches its peak in Q3 and Q4 of the year. In India, major festivals like Diwali drive sales. Meanwhile, in the USA, significant activity can be found around Thanksgiving, Black Friday, and Christmas. Europe, China, and other nations experience similar spikes during their local holidays or end-of-year celebrations. We'll discuss the different worldwide shopping seasons that occur around the last half of the year and how marketers and app developers can plan to get ahead in the race.
Stats to muse on!
Let’s first examine the stats to understand the opportunity for e-commerce or shopping app developers in general.
- At the end of 2023, U.S. retail sales reached $7.24 trillion, almost $1.5 billion more than the previous year, thanks to E-commerce.
- Leading companies in the world, such as Walmart, Costco, and Amazon, were born in the United States.
- Mobile shopping now dominates online retail activity in the United States.
- India's expanding e-commerce sector has grown substantially and emerged as a market with immense potential.
- Today, there are more than 250 million existing online shoppers in India.
- Shopping searches peak about 2-3 weeks before Diwali (29th October).
- Online stores in India saw an upsurge in sales by 37% in 2023.
- German retail market is one of Europe's biggest in terms of both wholesale and retail turnover, accounting for almost 2.5 trillion euros of gross retail turnover.
- France, the U.K., and Italy also rank high as major retail markets.
Top Shopping Seasons Q3 and Q4
10.10 Sale (South East Asia)- 10th October 2024
What is 10.10? The 10.10 sale is an annual mega-shopping event held on 10th October in Southeast Asia. Many online stores offer incredible offers, discounts, and promotions on products ranging from electronics and fashion accessories to home decor goods that attract shoppers worldwide.
Dussehra (India) - 12th October 2024
Dussehra, also known as Vijayadashami in India, is an important Hindu festival commemorating the triumph of good over evil. It marks the conclusion of Navratri and leads into Diwali celebrations. During Dussehra, consumers engage in extensive shopping for clothes, gifts, and home decor. Online stores like Flipkart and Amazon provide discounts and special promotions to entice consumers. Sales of fashion products, such as electronics or household items, tend to increase during this team.
Diwali (India) -29th October 2024 to 3rd November 2024
Diwali, India's Hindu festival of lights, marks a massive shopping spree among consumers and retailers alike. People buy clothing, electronics, and home decor at significant discounts from stores offering promotions, making Diwali one of the peak shopping seasons across various categories.
Singles Day (China) 11th November 2024
Singles Day, held annually on November 11, is an online shopping event hosted in China to commemorate singles. Though initially focused on single people only, today, it offers deep discounts across a wide variety of products for one massive shopping spree!
Thanksgiving Day (U.S.A) - 28th November 2024
Thanksgiving marks the official kick-off to the holiday shopping season in America, and it is typically marked by family gatherings and sales on Black Friday.
Black Friday (U.S.A) - 29th November 2024
Held the day after Thanksgiving in the U.S., Black Friday has become one of the premier shopping events. Online stores offer significant discounts on electronics, clothing, and more at large stores nationwide and online, drawing millions of shoppers both locally and online.
Cyber Monday (U.S.A) - 2nd December 2024
Cyber Monday follows Black Friday by emphasizing online sales. Online stores provide exclusive offers that make this day one of the most prominent e-commerce days, with discounts on tech gadgets, fashion apparel, and much more.
Christmas Season (Worldwide) - 25th December 2024
From late November through December, consumers and online stores worldwide come out in force for the Christmas shopping season. Consumers buy presents, decorations, and festive foods to mark this joyous occasion. Online shopping apps capitalize by running holiday sales, as campaigns run during this time tend to bring substantial revenue during this peak buying period.
Mobile OEM Advertising tips to help you win this shopping season
Here are seven effective strategies for using mobile OEM advertising across diverse markets and shopping seasons.
1. Plan early
The key to creating a successful mobile OEM advertising campaign lies in careful and early preparation. Start organizing early by strategizing, designing creative assets, and securing prime advertising slots on mobile devices. This way, your campaign is well-planned, cohesive, and ready for launch at the right moment. Plus, you have time to address potential problems early on and fine-tune your approach based on preliminary data analysis.
2. Tactfully target specific markets
Customization is the key when targeting different markets. Each region has unique cultural nuances, shopping behaviors, and preferences. For example, Diwali in India is marked by festive shopping for clothes, electronics, and home decor, while Black Friday in the U.S. focuses on significant discounts across various product categories, consumer electronics being particularly popular
By tailoring your mobile OEM ads to resonate with local audiences, you can boost engagement and conversions. Customize mobile OEM ads to reflect these themes for maximum impactful engagement! Understanding the unique aspects of each market helps in creating ads that have increased relevancy.
3. Leverage data for personalization
Personalizing ads can significantly boost their effectiveness. By tapping into data-driven insights to tailor ads based on user behavior, preferences, and device usage patterns, personalized ads will likely garner more attention and drive conversions. For example, targeting electronics buyers during peak shopping seasons with advertisements for the latest gadgets may bring huge success. Utilize machine learning algorithms for data analysis to deliver highly tailored ads to each of your target users.
Photo by Firmbee.com on Unsplash
4. Optimize ad formats
Selecting an engaging ad format is critical to driving maximum engagement from mobile OEM ads. Pre-installed apps, native ads, and push notifications are the three primary ad types available on smartphones and other mobile devices. Each form integrates seamlessly with the user experience. Pre-installed apps provide constant exposure, while native ads blend naturally into the device user experience. Push notifications can prompt action without disrupting user experience.
5. Real-time analytics
Real-time analytics are integral for optimizing mobile OEM advertising campaigns, so make sure to track the performance of your campaigns closely and be ready to adjust as needed. Using real-time data, you can quickly assess metrics like click-through rates, engagement levels, and conversion rates. This way, if the ad underperforms, you can quickly make adjustments to improve its content, placement, or targeting parameters to maintain its efficacy throughout the shopping season.
6. Test and iterate
Testing is critical when optimizing mobile OEM ads. Use the A/B test method to examine different ad creatives, messages, and formats to determine what resonates best with your audience. For instance, testing different visual ads during Black Friday sales will reveal which one is getting more engagement. You can base this on the real-time data. Continue to make changes to the campaigns to get optimal results. This iterative process helps you identify the most effective strategies and maximize your ROI during the shopping season.
Conclusion
By following these tips, mobile OEM advertising can help you to effectively reach your target customers during peak shopping season in various markets. From early planning and market-specific targeting to real-time adjustments and strategic bidding strategies, these recommendations ensure your ads have maximum impact and deliver optimal results. Harness mobile OEM ads to strengthen marketing initiatives and boost sales during the busiest seasons.
Ready to Skyrocket Your Sales? Start Your Mobile OEM Advertising Journey with Us Today!
Top 5 Mobile OEM Ad Formats to Boost Your Campaigns
There is an undue advantage to companies that use Mobile Original Equipment Manufacturer (OEM) advertising. But why should businesses rely on Mobile OEM ad formats to get ahead in the race?
To better understand this, we need to know what's happening in the backdrop. Mobile advertising spending is estimated to have reached $327.1 billion in 2022 and is now projected to rise to nearly $399.6 billion by the end of 2024. That would approximately be a 22.16% increase in the total mobile ad spend.
It is crucial to understand that with each passing year, the competition among the brands is only becoming fiercer, making it harder for them to reach their customers effectively. In today's mobile-centric world, smartphones have emerged as vital touchpoints for audiences. They provide brands with a dependable and influential platform for interaction. Mobile OEM advertising helps brands to reach their desired target audience efficiently.
What is Mobile OEM?
OEM is the acronym for Original Equipment Manufacturer. In the world of mobile apps, OEMs are platforms for advertising developed by device manufacturers, retailers, and mobile carriers. OEM advertising, in essence, refers to on-device display advertising where the user is presented with an installed app for their phone or receives an on-device suggestion for an app.
Here is a quick list of five of the top Mobile OEM ad formats that marketers leverage to boost their return on investments.
Photo by Paul Hanaoka on Unsplash
Pre-installed Apps
Pre-installed apps are pre-loaded apps installed on new mobile devices by their original equipment manufacturer (OEM). They provide brands with immediate visibility and engagement as users explore their devices for the first time. Install rates tend to be high because these pre-loaded applications cannot easily be ignored or deleted by users. For marketers, this ad format provides both reach and engagement at the same time. This ad form can be a powerful addition to mobile advertising arsenals.
Push notifications
Push notifications are direct messages sent to the user's devices. They typically appear either on the home page or the notification center. Since they have an immediate and eye-catching nature, they are highly effective in engaging users and holding user attention. Push notifications provide timely updates, promotions, reminders, or important news directly into users' inboxes.
This advertising format prompts immediate action by the users, or at times, they can also compel them to act fast when needed. The personalized nature and ability to reach users at any time make push notifications an indispensable tool in increasing retention and engagement, as they can also be tailored according to individual users' preferences for enhanced relevance and effectiveness!
Photo by bruce mars on Unsplash
In-app Advertising
In-app advertising refers to placing advertisements within third-party apps in order to reach an intended target audience. This form of ad can include banners, video ads, or interactive ad formats that appear during app usage. It can range from banners and video ads to interactive ones that occur during usage. As a result, in-app ads are highly engaging.
In contrast, they are often more effective than mobile web ads due to being integrated seamlessly into user experiences within apps. Since users spend a significant amount of time within apps, this ad format offers brands ample time to capture attention. Their targeting capabilities also allow precise targeting based on information such as user data usage patterns or preferences. In a nutshell, in-app advertising can significantly boost your conversion rates!
Splash Screens
Splash screens are full-screen ads displayed when an app is opened. This ad format offers maximum impact and guaranteed visibility. Typically visible only briefly while loading content, splash screen ads offer high brand recall by being seen while the user waits.
They take advantage of users being focused on the screen when the message suddenly appears. Splash screen ads are, therefore, a powerful tool for marketers who want to run high-profile campaigns, product launches, or events where companies desire their messages to be seen immediately by users. On top of it, these ads can engage them visually with graphics, animations, or videos designed specifically to drive user interest or engagement right from the beginning.
Photo by Sara Kurfeß on Unsplash
Native Ads
Native ads are seamlessly integrated into an app's content, designed to match its visual style. This non-intrusive format offers users a pleasant user experience while advertising branded messages. Native ads may appear as sponsored articles, in-feed ads, or recommended content and seamlessly blend in with its interface.
They have greater user acceptance than other traditional ad formats. Native ads' subtlety and relevance often yield higher user engagement compared to their counterparts. With this Mobile OEM ad format, advertisers have the power to deliver captivating advertisements that resonate with user interests, thereby improving brand interactions and resulting in conversion opportunities, making native ads an invaluable option for marketers!
In conclusion
Marketers aiming to differentiate themselves from the competition are increasingly turning to Mobile OEM ad formats, known for delivering exceptional results. By embracing these innovative advertising approaches, they are able to elevate their visibility and engagement significantly. This strategy has become a keystone for those seeking to capture the attention of audiences in a crowded digital landscape.
Want to learn more about various Mobile OEM advertising formats in detail? Download our comprehensive guide about Mobile OEM ad formats now!
Boiling Hot: It’s a DMA Summer
This article was originally published on LinkedIn. Robert Wildner, CEO of AVOW discusses how the EU's Digital Markets Act (DMA) has significantly reshaped the digital landscape by breaking Google and Apple’s monopoly on Europe’s mobile app economy, enabling alternative app stores, and offering consumers more choices, while facing ongoing challenges and scrutiny, particularly with Apple's compliance issues.
Photo by Rodion Kutsaiev on Unsplash
For the great 18th-century German thinker Hegel, the passage from ignorance to wisdom occurs imperceptibly, like an owl flying “by night.” So when people say that “things don’t change overnight,” I often frown. Of course, they do! Just look at the EU’s Digital Markets Act (DMA). Having launched in March, its achievements thus far include: ending Google and Apple’s stranglehold on Europe’s mobile app economy; allowing alternative app stores on Android and iOS; empowering third parties to advertise their services in-app, and giving consumers greater choice over which apps come preloaded on their new phones.
Still not convinced the DMA has achieved much? You might want to continue reading this update, as June was another bumper month for the DMA. From the EU flexing its legislative muscles to the first wave of alternative app stores and the trend for DMA-style legislation elsewhere in the world, the summer sun brought with it textbook examples of how the EU’s flagship antitrust law is reshaping the digital landscape.
Once bitten, twice shy? Apple's European Woes Mount
The biggest story in June is that the European Commission (EC) ruled that Apple breached the DMA by preventing “app developers from freely steering consumers to alternative channels for offers and content.”
Specifically, the EC’s preliminary investigation, launched in March, found that the iPhone manufacturer had obstructed developers from doing so in three ways:
- i) by stopping them from promoting their services within Apple App Store apps;
- ii) by only allowing third-party apps to promote their services via website “link-outs,” iii) by charging developers prohibitive fees.
Apple now has 12 months to put things right. If not, it could face a fine of up to 10% of its global revenue.
Additionally, the EC also announced that it is launching a separate investigation over concerns that Apple’s new fees for third-party developers and alternative app stores, including its Core Technology Fee, don’t meet Europe’s standards.
Given that the Silicon Valley giant is defending itself against antitrust charges in the US as well, things are not looking good for Apple. Moreover, this move by the EC should also quell fears that the EU won’t enforce its rules. The question is, will Apple learn from this or continue to defy Europe? Only time will tell.
Photo by Gilles Lambert on Unsplash
Up and Away: the DMA’s Triumph Continues
While the sunny weather here in Berlin has been hit-and-miss, the DMA’s fortunes have been consistently good. In June, the Verge reported that four new alternative app stores launched on Apple's App Store. These included AltStore Pal, SetApp Mobile, Mobivention, and Aptoide, an app store based in Lisbon, Portugal, which began its iOS journey with a gaming-specific version of its store.
Like Altstore and SetApp, Aptoide has attempted to alleviate the burden of Apple’s fees, in their case, by transferring the cost (50 cents EUR per installation of its app store) to developers charging for in-app purchases. It’s an innovative scheme, but ultimately a sticking plaster for Apple’s fees—an issue the EU will hopefully resolve. Nevertheless, this influx of alternative app stores on the iPhone’s ecosystem is a significant improvement for developers.
The other good piece of news last month was that, despite industry scaremongering about the legislation, the DMA hasn’t hampered the tech sector’s revenues. According to a report by the investment bank Evercore, Apple’s EU App Store revenue increased by 28% in March and 22% in April. Of course, as Quartz notes, if the EU legislates against Apple’s fees, things could change. But overall, the outlook on the DMA is positive, even if Tim Cook’s company has chosen to delay the rollout of AI-features for its phones until early next year due to the DMA’s “interoperability requirements.”
Photo by NordWood Themes on Unsplash
The Butterfly Effect: the EU’s Antisteering Laws Spread their Wings
As I’ve noted in previous blogs, the DMA’s global popularity has increased, with both Brazil and the UK looking to adopt their own versions. Well, last month, the British parliament finally passed its anti-monopoly legislation, which will come into force this fall. As a result, commentators both for and against have begun offering interesting perspectives on the subject, looking to the DMA’s perceived successes or failures in Europe as a means of gauging its suitability elsewhere.
In Competition Policy International’s study of the UK’s DMA, for instance, the authors examine how Apple has reacted to the EU’s DMA, noting the various ways in which the company has attempted to wriggle out of complying with these rules by citing “security concerns.” Conversely, this report from TechPolicy assesses the transferability of the DMA to Brazil and analyzes concerns in Europe that either the EU doesn't go far enough or will stifle innovation.
While these excellent perspectives offer food for thought, they also reflect a common trend in DMA-related discourse, which tends to forget the most important thing: the consumer. As Tan Eroğlu at Emerging Europe argues, while breaking up monopolies in the digital economy is imperative everywhere, the priority really should be giving phone and app users greater choice—exactly what the DMA has so far delivered!
And that’s it for another month. See you in August.
— Robert.
This article was originally published on LinkedIn.
Mobile OEM Ads vs. Traditional Mobile Advertising: Which is Right for Your Strategy?
Mobile advertising has quickly become an essential strategy for businesses aiming to capture user attention and drive engagement in today's fast-paced digital environment. However, finding an effective mobile strategy can be challenging with so many advertising options available.
This article compares mobile OEM Ads (Original Equipment Manufacturer ads) against more conventional forms of mobile advertising to help you select the method that best meets your marketing goals.
Understanding mobile OEM ads
OEM ads provide an engaging form of mobile advertising. These ads are integrated directly into user experience because they are preinstalled on a mobile device or appear as native advertisements within the systems' user interface. As a result, these ads can bring maximum exposure and increase engagement rates.
Common formats for OEM Ads include apps preinstalled on a device, system prompts, and push notifications. Because OEM ads blend well with user experience, they boost engagement rates, which, in turn, helps build brand visibility and conversions.
Understanding traditional mobile advertising
Traditional mobile advertising refers to all the kinds of different ads that are displayed within mobile applications or browsers, such as in-app ads, banner ads, video ads, and interstitial ads.
These ads rely heavily on user behavior data that app stores collect for targeting. These advertisements are then delivered through various platforms and ad networks. While conventional ads such as the ones mentioned above offer flexibility and reach, their presence could potentially cause user ad fatigue and can also lead to frustration among them.
Key differences between mobile OEM ads and traditional mobile advertising
1. Visibility and engagement
Mobile OEM ads: Since these ads are seamlessly integrated with the device UI, they are highly visible. Users will naturally encounter these advertisements during their regular device interactions. As a result, they have more visibility and engagement.
Traditional ads: Visibility depends entirely on app usage and placement. Some ad formats, such as video ads, can draw immediate attention, while some banner ads could go easily unnoticed.
2. User experience
Mobile OEM ads: OEM Ads are designed to be less intrusive, providing an enhanced user experience by seamlessly blending into user activity. Their presence decreases disruption from other activities that might otherwise cause interruption.
Traditional ads: Traditional ads can be intrusive and frustrating for users, causing increased ad fatigue and disrupting user experiences.
Image by Niek Verlaan from Pixabay
3. Targeting and personalization
Mobile OEM ads: These ads take advantage of device data for more precise targeting and personalization, making ads more relevant for users.
Traditional ads: In contrast, traditional Ads use user behavior data. Their targeting may still be effective. However, they are possibly less precise than mobile OEM Ads.
4. Cost and ROI
Mobile OEM ads: These ads tend to be more costly because they get the best results possible, such as increased visibility, and can boost engagement. Since there is a potential for a very high return on investment (ROI), the pricing can be easily justified.
Traditional ads: The amount you spend on the ads depends entirely on the ad format you pick and the reach. While they might be less expensive when compared to OEM ads, their engagement rate might not come close to what Mobile OEM advertising offers.
5. Implementation and management
Mobile OEM Ads: Implementation of these ads requires close collaboration with OEMs and is definitely more complex when we talk about the integration process. You will need the assistance of experts.
Traditional ads: These ads are easier to set up using existing networks and platforms, making them accessible to businesses of all sizes.
Benefits of mobile OEM ads
High engagement: Mobile OEM ads see high engagement due to their seamless integration into devices' user interface (UI).
Brand visibility: One of the reasons why mobile marketers pick this option is because these ads can help boost brand visibility.
Reduce ad fatigue: These ads help maintain an enjoyable user experience by being less intrusive, thus decreasing ad fatigue risks.
Benefits of traditional mobile advertising
Wider reach: Traditional ads can help you reach a broader audience by using various apps and different platforms.
Flexible advertising options: Because there are various ad formats and targeting options to choose from, marketers enjoy full flexibility when it comes to picking options that are apt for them to reach different campaign goals.
Ease of Use: Setting up traditional ads is straightforward with all the tools and ad networks that are available today.
When to use each type of advertising?
Use cases of mobile OEM ads
New app launches: Mobile OEM ads provide excellent coverage when it comes to new app launches due to their high level of visibility and engagement with viewers.
Targeting: They're also ideal for campaigns that are designed specifically to target specific device users.
Building long-term brand recognition: Mobile OEM ads play an integral part in long-term brand building because they are present on a user's device.
Use cases for traditional mobile ads:
Running short-term campaigns: They are best for short-term promotions and offers.
Reaching a broader audience: These ads can be quite effective, especially when app developers and mobile marketers want to target a wider audience across different platforms.
Testing different formats and strategies: Marketers who need help determining which ad format or strategy is right for them can experiment with various formats and models to see which one is getting them the best results.
Conclusion
Both mobile OEM ads and traditional mobile ads possess distinct strengths that meet specific marketing objectives. OEM ads, however, provide greater exposure and engagement, making them perfect for high-impact campaigns, while traditional ads provide flexibility and reach, which are ideal for diverse campaign goals.
By understanding the key differences and benefits between them, you can select an approach that best enhances your mobile ad efforts.
Get our comprehensive guide to Mobile OEM Ad Formats today to revolutionize it and implement this marketing technique into your advertising plan to reap outstanding returns.
Everything You Need to Know About Third-Party App Stores
Currently, there are more than 300 app stores around the world, and this number continues to increase. Third-party app stores have rapidly emerged as essential players in the ever-evolving landscape of mobile apps, providing an alternative to Google Play and Apple App Store platforms. While a mobile app play store presents various opportunities to both users and developers alike, it also brings specific challenges that need to be considered before leveraging third-party stores for your growth.
This guide will walk through everything you need to know about third-party app stores from benefits/risks analysis through best practices for effectively using them.
What is a mobile app play store?
Alternative app stores are platforms that distribute mobile applications outside the official Google Play and Apple App Store platforms and often offer apps not found elsewhere. Some of the popular mobile app play stores are Amazon Appstore, Samsung Galaxy Store, Aptoide, and Huawei AppGallery.
Third-party app stores have quickly grown popular due to a variety of reasons, such as offering apps removed from official stores or offering regional apps or niche market apps that cater directly to niche audiences. App developers and marketers find them as a crucial distribution channel in regions with lower market penetration from Google or Apple.
Advantages of Using third-party app store
Broader audience reach: One of the most significant advantages of third-party app stores lies in their ability to reach users in areas where Google Play or the Apple App Store don't play as important a role, like China, where Google Play restrictions limit app distribution capabilities. A mobile app play store such as Huawei AppGallery is crucial for app distribution there.
For example, by January 2024, approximately 1.033 billion individuals were using Samsung smartphones which constituted 14% of the global smartphone user base. This stat indicates how app developers can actually target these individuals if they decide to list their app on Galaxy Store.
Alternative revenue streams: Alternative app stores offer app developers various monetization models that could prove more advantageous for them, including taking smaller commissions on sales or providing flexible in-app purchase options, making these stores attractive options when looking to maximize revenue streams.
Less stringent approval processes: Approving apps through Google Play or Apple App Store can often take months. Third-party stores tend to offer less rigorous approval criteria that enable developers to bring their apps to market faster.
Freedom of choice: The ability to choose which app stores your app will be featured in, combined with choosing your own payment and billing systems and negotiating your own deals with these stores, gives both developers and users the freedom of choice that’s practically unseen in today’s “walled garden” approach to app stores.
Access to niche markets: Third-party app stores often focus on specific niche markets, like gaming apps for regional audiences or apps with customized functionality - making these alternative app stores particularly beneficial to marketers and app developers creating apps targeted towards audiences or markets that fall outside the reach of major app stores. It can give developers greater exposure for their apps on niche stores that cater more directly.
Check these factors before proceeding
Reputation: As stated earlier in the article before, there are over more than 300 app stores in the world today. Not all of them have a good reputation. You do not want to list your app in a mobile app play store that people do not recognize or has a reputation you do not want associated with your app.
Security: It's predicted that by 2025, the costs associated with cybercrimes will shoot up to $10.5 trillion. Some of the third party app stores allow users to download malicious apps because they may not be doing stringent checks before listing an app on their store. You do not want your apps to appear in third-party stores that customers are afraid to enter.
Lower visibility: While third-party app stores can help reach niche markets, they often have a smaller user base than the major stores. It means that apps may receive less visibility and fewer downloads compared to being listed on Google Play or the Apple App Store.
As long as you choose the mobile app Play Store that has a good name and reputation in the market, like Samsung, Vivo, and Huawei, you can enjoy all the benefits that were discussed in the previous segment.
Best Practices for Utilizing Third-Party App Stores
If you are planning on distributing the app through a mobile app play store, here are a few best practices that should help ensure its success:
Research about the mobile app play store: Before submitting your app to any third-party store, conduct extensive due diligence by researching its reputation, user base, and security features. Make sure it's an established platform with an excellent record for protecting user data while offering developers positive experiences.
Optimize your app for different markets: When publishing apps through third-party stores, particularly international ones, localization becomes crucial. It involves translating app content, altering pricing strategies, and tailoring marketing efforts for local users - among other steps.
Implement robust security measures: In order to keep both users and yourself secure, implement robust security measures like encryption, secure data storage, and regular updates of the app itself. Furthermore, be sure to test regularly for vulnerabilities so as to reduce risks related to malware attacks on the application itself.
Monitor user feedback and reviews: User feedback is integral for improving your app and maintaining an exceptional presence while in third-party stores. Keep tabs on user reviews and feedback, respond quickly when problems or complaints arise, and build trust among your user base while inspiring positive word-of-mouth advertising.
Utilize store-specific promotions: Many third-party app stores provide promotional tools that can increase the visibility and downloads for your app. Take advantage of featured app sections, discount offers, and in-app advertising to generate additional downloads and engagement with potential downloads and subscribers.
Stay up-to-date with legal requirements: Compliance is of utmost importance when expanding an app across different markets, so be aware of and compliant with any legal or regulating requirements and restrictions in each region your app is offered - this may include data privacy laws, payment processing rules or content restrictions that affect it.
Diversify your distribution channels: While alternative app stores can be valuable resources for app distribution, it's wiser not to rely solely on them for app promotion and sales. Instead, ensure your app can also reach wider audiences by placing it on Google Play, the Apple App Store, and other relevant platforms. It is one way to avoid potential risks associated with marketing your app on one platform alone and this can also help you reach more people at the same time!
The future of third-party app stores
As mobile app ecosystems continue to change, third-party app stores will likely play an increasing role. Due to rising competition within app markets, developers will seek alternative distribution channels in order to reach out and maximize the app's potential audience. As more consumers gain an awareness of any risks related to third-party app stores, we should see improvements in security measures and user trust measures as a result of increased consumer knowledge about them.
Staying ahead of the game for developers means constantly exploring new opportunities in the app distribution landscape. App developers and marketers that strategically leverage third-party app stores can open doors into new markets, increase revenue streams, and establish more resilient app businesses.
Conclusion
Third-party app stores offer an incredible opportunity for expanding the reach of your app, but careful thought must go into their use and strategic planning. By understanding their benefits, risks, and best practices associated with them you can make informed decisions aligning with your business goals.
Ready to take it one step further? Explore how mobile OEM advertising solutions from us can enhance performance across various platforms while reaching a global audience - contact us now to start this exciting adventure!
The Ultimate Guide on How to Create the Best Online Shopping App
In the United States alone, the number of online shoppers reached 244 million in 2022 and is expected to rise to nearly 288 million by 2025. E-commerce is ever-evolving, so staying ahead of emerging trends and optimizing advertising strategies are crucial if you want your online shopping app to become successful.
The global online retail market consists of over 26 million businesses, and new ones are being established constantly. If you find these figures daunting, it's important to note that fewer than 1 million of these websites generate sales of over $1,000 per year, indicating there are ample opportunities for new ones to come and grow. By the end of 2024, numerous impactful trends and seasonal shopping spikes will likely have shaped the online shopping experience and brought many significant changes.
Understanding trends like AI-powered personalization and augmented reality shopping, as well as an increase in sustainable practices and voice commerce, is crucial for marketers or app developers who are looking to thrive in competitive markets.
Recognizing regional shopping patterns such as Diwali in India, Ramadan in Indonesia or Black Friday in the USA can give businesses an added edge in identifying key trends and taking actionable steps to capitalize on them. In this article, we explore these key trends to give our readers insights on how best to leverage them for mobile OEM advertising efforts and grab the attention of target audiences. Let's get into details to discover how we can harness them effectively for mobile OEM advertising efforts that reach out to target audiences!
Photo by Gilles Lambert on Unsplash
What is mobile shopping?
Mobile shopping is revolutionizing how people engage with products and services, positioning smartphones at the core of online shopping or retail experiences. 8 out of 10 people carry their phones everywhere they go, and 96% use them for product research purposes alone. M-commerce (mobile commerce) represents not merely an emerging trend but an essential shift in consumer behaviors.
Convenience has played a vital role in driving online shopping's growth, giving shoppers access to products in any location with just a few taps on their screens.
M-commerce
M-commerce is constantly developing, with mobile websites, dedicated apps, and native applications increasingly becoming sophisticated. Mobile shopping apps, in particular, can offer personalized experiences tailored to individual preferences via sophisticated algorithms that analyze user behavior. When you combine this element with fast payment systems such as Apple Pay or Google Wallet, this level of personalization makes mobile shopping an appealing option for busy customers.
Q-commerce
Q-commerce (quick commerce), one of the latest advances in this space, takes convenience one step further, with delivery times as fast as under an hour. It is now extremely popular among urbanites who need access to groceries, meals, and essentials instantly, utilizing advanced logistics systems and local distribution centers for this seamless shopping experience.
Risks and Solutions
However, mobile shopping does come with some risks. For example, security remains a primary concern as consumers worry about data breaches and fraud. Also, user experiences vary widely depending on design/functionality considerations when creating mobile applications or platforms. Connectivity problems in areas with limited internet service can impede shopping experiences as well.
Payment options, though varied, can sometimes complicate the checkout process when one isn't compatible with another payment option. But mobile shopping remains optimistic for its bright future!
Emerging technologies such as 5G promise faster and more dependable internet connections. Blockchain could also enable more secure transactions. Artificial intelligence (AI) and Machine Learning (ML) will facilitate greater customization for shoppers by giving them more tailored shopping experiences. At the same time, machine learning could make its mark with highly personalized shopping experiences.
Virtual shopping assistants and the seamless integration of IoT devices promise to make mobile shopping even easier and more accessible.
Learn more about “Everything You Should Know About Mobile Shopping.”
Photo by Kenny Eliason on Unsplash
Personalizing shopping experience for customers
Personalizing customer experiences is vital to driving customer loyalty and increasing revenue for brands. 76% of shoppers prefer purchasing from brands offering tailored experiences.
Therefore, brands should prioritize personalization when designing online shopping apps. Making it simpler for shoppers will permit them to navigate and locate what they are searching for quickly and effortlessly. Customized experiences increase engagement levels, conversion rates, customer retention rates, and, ultimately, brand loyalty.
Data collection
Collecting relevant customer data is crucial to creating effective personalization. Customer profiles, browsing histories, purchase histories, and feedback all offer valuable insights that can be leveraged to customize customers' shopping experiences. However, for maximum effectiveness, they need to remain transparent about the use of this information. Opt-in features should also be enabled to protect user privacy.
Personalizing techniques with product recommendations, collaborative filtering, and content-based filtering can significantly enhance user experiences. AI/ML can analyze user behavior to predict preferences and further tailor recommendations. Additionally, improving search functionality within apps and planning to include user-generated content such as reviews can build trust among customers, allowing repeat purchases to increase over time.
Leveraging technology such as AI-driven analytics, CRM systems, and A/B testing enables brands to fine-tune their personalization strategies. Creating a seamless omnichannel experience ensures consistent branding and unified customer profiles across platforms, allowing smooth transitions between different shopping channels.
Utilize social media
Social media plays an invaluable role in personalization by offering targeted ads, showing social proof, and including augmented reality (AR) to enhance product visualization.
Measure the results
Measuring the success of personalization using KPIs and customer feedback enables continuous improvements that ensure shoppers' experiences remain engaging and relevant for shoppers.
Personalization done right not only meets but surpasses customer expectations; it creates long-term loyalty while driving app growth.
Ready to take your online shopping app to the next level? AVOW offers unparalleled mobile OEM advertising solutions, ensuring your app gets noticed on the most popular devices and alternative app stores from Samsung, Xiaomi, Huawei, OPPO, Vivo, and more. With our global reach and strategic partnerships, we can help you reach new audiences, boost user acquisition, and drive significant growth. Reach out today to start personalizing your customer experience with OEM advertising!
Learn more about “How to personalize the shopping experience for your customers.”
Photo by CardMapr.nl on Unsplash
Best practices when developing a shopping app
Target audience
A crucial part of building an effective shopping app lies in having a firm grasp of your target audience. Conduct comprehensive market research in order to learn user demographics, preferences, and behaviors as you make inferences from this data that help shape features and design to address user needs and build upon this solid base for the future success of your shopping app.
Prioritize user experience (UX)
A great UX design ensures your app is intuitive and easy for users to navigate. Users should find what they are searching for quickly without becoming frustrated. Key aspects include simplifying navigation and fast load times. Consistent design across devices also contributes to an enjoyable shopping experience.
Optimize checkout and payment process
Another critical aspect is optimizing the checkout and payment processes. Studies reveal that an overly complex or lengthy checkout can cause significant cart abandonment. When brands use features like guest checkout and multiple payment options to expedite this step, they can significantly reduce cart abandonment. Introducing new features such as guest checkout or "Buy It Now" buttons along with traditional "Add to Cart" buttons will further streamline purchasing experiences by appealing to both impulse buyers and those preferring browsing before buying.
Security
Security should always come first. With increasing concerns over cyber threats, protecting user data must take precedence. Implement SSL encryption when processing transactions and secure payment gateways. Regular updates to your app's security features are essential to stay ahead of potential vulnerabilities and maintain user trust.
These strategies will assist in designing an exceptional shopping app with outstanding user experiences, creating customer loyalty in its users and increasing retention rates.
Learn more about the “7 Best Practices When Building a Shopping App.”
Photo by Paul Hanaoka on Unsplash
Customer retention
Customer retention can bring numerous benefits to online shopping businesses, including cost efficiency, increased profits, and brand advocacy. Retaining existing customers often proves more cost-effective than acquiring new ones, potentially saving businesses substantial sums annually.
Personalize experiences
To effectively retain customers, begin by customizing their experience using data analytics, tailoring offers and recommendations based on individual preferences by sending product suggestions or birthday discounts, and providing 24/7 customer service through live chat. These strategies can increase loyalty while raising customer satisfaction levels significantly.
Make your loyalty program work
Establishing an engaging loyalty program can drive repeat business. Offer point systems, exclusive discounts, or early access to sales to entice repeat visits from existing and potential customers alike. Engaging with your customers across multiple channels such as social media, email, and mobile apps is excellent for keeping the brand at the top of customers' minds. Also, solicit and act upon customer feedback to optimize user experiences while showing that customer input matters!
Use technology
Technology plays an integral part in customer retention. As said earlier in this article, analytics can be used to gain an in-depth understanding of shopping patterns, artificial intelligence can be used for instant support and personalized recommendations, and automation can be used to manage loyalty programs and communications efficiently.
Always measure
Measuring your retention efforts is crucial. Key metrics include Customer Retention Rate (CRR), Repeat Purchase Rate (RPR), Customer Lifetime Value (CLV), and Net Promoter Score (NPS). These indicators can help you to gauge the success of your retention strategies and identify areas for improvement.
Learn more about "Everything You Need to Know About Customer Retention in Online Shopping."
Best Shopping Seasons
Mobile OEM advertisers need to capitalize on peak shopping periods worldwide such as Diwali in India, Ramadan in Indonesia, Black Friday/Cyber Monday in America, and Singles Day in China—for maximum marketing impact.
Keep track of key dates
Understanding regional shopping spikes is crucial. Diwali features deep discounts on clothing and electronics, while Black Friday boasts massive sales across numerous categories in the U.S. To prepare for these events in time, make a plan early. Brands need to develop assets early and secure prime slots on mobile devices ahead of time. These steps ensure optimal success at events like these!
Effective mobile OEM advertising demands precision targeting. Tailor your ads for local audiences that reflect cultural nuances and shopping preferences. For example, highlight festive item promotions during Diwali while emphasizing electronics deals during Black Friday sales events.
Customize ads
Take advantage of data-driven personalization to enhance ad relevance. Leverage user insights to tailor ads that capture attention and drive conversions, using preinstalled apps or native ads along with push notifications as a means for optimal ad formats to ensure seamless user experiences.
Real-time analytics are an essential part of campaign optimization. They enable advertisers to monitor performance closely and make adjustments based on metrics like click-through rates and engagement levels. A/B testing creatives help determine which ones resonate most with audiences, ensuring that your ad campaigns are as efficient as possible.
Plan Early
By planning early, targeting effectively, and personalizing ads with real-time data, you can maximize the effectiveness of your campaigns during these busy shopping seasons.
Maximize your brand's visibility during peak shopping seasons with strategic mobile OEM advertising. Plan early, target precisely, and personalize your ads for local audiences. Partner with us to secure prime ad placements on mobile devices and drive conversions during key global events like Diwali, Black Friday, and Singles Day. Reach out today to elevate your mobile advertising strategy and stay ahead of the competition!
Learn more about “From Black Friday to Diwali: Mobile OEM Advertising Tips for Every Market.”
Photo by Blake Wisz on Unsplash
Shopping trends 2024
As 2024 approaches, several significant trends will shape the online shopping landscape:
AI-driven personalization
Artificial Intelligence (AI) is revolutionizing online shopping by creating highly tailored experiences for customers. AI algorithms leverage customer information such as browsing habits and purchase history to deliver tailored product recommendations and marketing messages, increasing user engagement while simultaneously improving conversion rates and retention rates for retailers who invest in AI technology - meeting individual customers preferences while keeping ahead of competitors with personalized experiences for each shopper while keeping costs under control.
Augmented reality (AR)
AR technology is becoming an increasingly mainstream shopping option, providing consumers with virtual interactions between products in virtual space before deciding to purchase. AR allows customers to see how furniture would look in their home or how shoes will fit, making for more informed and seamless purchasing experiences between online and physical shopping experiences. Thus, it can potentially decrease return rates by helping customers make informed purchases more quickly.
Sustainability
Environmental consciousness has made sustainability an essential consideration when making purchasing decisions, with consumers increasing their preference for eco-friendly brands and products. Brands that prioritize sustainable practices such as ethical sourcing, minimal packaging, and carbon-neutral shipping are likely to attract these shoppers while simultaneously meeting consumer demand for greener solutions. Adopting sustainability practices not only builds brand equity but also aligns with growing interest in greener alternatives.
Social commerce
Shopping directly via social media platforms like Instagram, TikTok, and Facebook is gaining momentum. Social commerce features, including shoppable posts and live-stream shopping events, allow users to browse and buy products seamlessly within their favorite apps. This trend is prevalent among younger consumers who use social media for product discovery and purchases. Retailers should focus on creating engaging content and leveraging influencer partnerships to maximize their reach and impact on these platforms.
Voice Commerce:
With voice-activated assistants like Amazon Alexa and Google Assistant becoming more prevalent in consumer lives, voice commerce has become more pervasive than ever. Shoppers are using these assistants to search for products, purchase them, and track orders with voice searches, a convenient, hands-free alternative for busy shoppers. Ecommerce platforms should ensure product information can easily be reached using these voice assistants so retailers don't lose out to this growing segment of shoppers.
These trends demonstrate why app developers or marketers should leverage technological developments and adapt to consumer preferences as part of a holistic online shopping environment strategy to be successful.
Learn more about “7 Online Shopping Trends to Look Out for in 2024.”
Conclusion
Navigating the shifting waters of online shopping requires an intricate knowledge of both evolving trends and advertising practices. Looking ahead into 2024, AI-powered personalization, AR features, and other key trends will play an essential role in providing engaging shopping experiences to consumers.
Combine awareness of local shopping peaks and a sustainability commitment to stay ahead in a highly competitive landscape. Implementing such strategies increases customer engagement, conversion rates, and loyalty, which in turn leads to business success.
Stay informed and agile to adapt to these changes, and leverage the latest technologies to optimize your mobile OEM advertising.
Ready to elevate your strategy? Contact us today to learn how AVOW can help you stay at the forefront of mobile marketing innovation and maximize your success in the evolving e-commerce landscape.
Everything You Need to Know About Customer Retention in Online Shopping
Businesses in the US could save almost $35 billion each year if they shift their focus to keeping customers happy and satisfied. Customer retention is a crucial part of successful online shopping businesses.
Thanks to technological advancements today, marketers and app developers can leverage analytics to understand the customer's behavior, choice patterns, or complete holistic purchase history. Using this knowledge, they can tailor customer experiences while predicting future trends.
In this highly competitive marketplace, where customers can switch apps at any time, businesses must go the extra mile to satisfy existing app users to sustain success. This article will discuss every aspect of customer retention in shopping enterprises, from its significance to time-tested and tried implementation strategies.
Importance of customer retention
Cost efficiency
Acquiring new customers can often cost four to five times more than retaining existing ones. Remember that costs will rise even higher if you add other expenses, such as marketing, advertising, and onboarding expenditures. Therefore, it makes more economic sense for brands to focus on retaining existing customers.
Increased profits
Repeat customers buy several times and are likely to spend more money per transaction. Studies indicate that increasing the retention rate by just five percentage points increases profit by 25-95%.
Brand advocacy
When a customer makes their first purchase from your online store, they have a 27% chance of returning for a second purchase. If they buy a second time, the probability of a third purchase rises to 49%. After a third purchase, the chance of them buying again increases to 62%. Loyal customers often turn into brand advocates who publicize your product and service offerings through word-of-mouth. This is a highly cost-efficient form of app promotion.
Competitive advantage
In today's market, shopping apps that have high customer retention have a clear competitive advantage over competitors. Shopping apps can only retain customers when they provide their users with unique value.
Photo by Alexander Grey on Unsplash
Strategies for effective customer retention
Personalize the customer experience
Personalization is the most crucial aspect of creating an outstanding shopping experience. Analyze your shopping app's data analytics to discover what your users prefer, and then use customer segmentation to tailor offers and recommendations that meet individual requirements.
Example: Sending emails suggesting some products based on a user's past purchases or providing special discounts on birthdays can have a positive impact on how a user perceives your brand.
Exceptional customer service
58% of customers believe customer service plays a crucial role in building loyalty towards a brand. Customer service could be the key to customer loyalty. Make sure your client service agents are well-trained, empathetic, and responsive. They should solve problems on time and work hard to find viable solutions for them.
Example: Having 24/7 customer care or a live chat will make customers feel valued. They will appreciate your efforts in making their shopping experience delightful, and it will increase the chances that they will always be your loyal customers.
Image by Hannes Edinger from Pixabay
Create a loyalty program
Loyalty programs give your customers a reason to keep doing business with you. It is the main reason why almost 71% of brands spend at least 2% of their revenue on their loyalty program. Point systems, exclusive discounts, and early access sales are all excellent ways to get customers to return to your app.
Example: Some brands or shopping apps allow users to make use of points they have accumulated for discounts when purchasing products. In other cases, they can get specific products for free if they have a certain number of points. Some of these loyalty programs also give access to early product releases and events.
Engage customers on multiple channels
Connect with customers across different platforms, such as email marketing, social media posts, news updates, mobile applications, or in-store experiences. Doing this will ensure that your brand stays at the top of users' minds and create an enjoyable customer journey experience for each shopper.
Example: Social media platforms are ideal for uploading user-generated content, holding contests, and offering customer service, while email newsletters can be used for personalized updates with special offers.
Solicit and act on users' feedback
Customer feedback provides an excellent insight into what is working well and where improvements need to be made. Solicit it through regular surveys, reviews, or direct conversations, and use this information to make decisions while letting customers know they matter!
Example: Send post-purchase surveys asking users about their shopping experience. You must respond to any problems raised and give them updates on changes you make to your shopping app based on the feedback they provide.
Photo by Nathan Dumlao on Unsplash
Provide a great user experience
A flawless customer experience is crucial for customer retention. From navigating your website or app to checking out and from payment processing to integrating the payment gateway, you need to ensure that customers have a pleasant experience all along. Ensure that every single interaction your users have on your shopping app is smooth, so they stick with you for a long time and keep coming back to your app to make more purchases.
Example: Make check-out easy by offering flexible payment options and incorporating the guest check-out feature. Ensure that the site is mobile-optimized.
Provide consistent value
Your shoppers should know they can depend on your brand to meet their needs and expectations every time they shop with you. Whether that means quality products at competitive pricing or reliable services that exceed customer expectations, users of your shopping app need the confidence and assurance from you that every time they interact with your brand, it meets or surpasses these criteria.
Example: Promptly update your product offerings, maintain products that have high-quality standards, and offer competitive prices to ensure customer loyalty and future business.
Technology in customer retention
Technology plays an invaluable role in customer retention strategies. Advancements such as artificial intelligence and automation enable these strategies to be more personalized.
Analytics
Leverage analytics to consider a customer's behavior and shopping patterns or to obtain a complete holistic purchase history. Use this knowledge to customize experiences for your customers while anticipating future trends.
Artificial intelligence
AI chatbots and virtual assistants can enable instant customer support, provide product suggestions, respond to questions promptly, and enhance customers' overall experience.
Automation
You need to use automation mainly to manage the day-to-day struggles involved in sending personalized emails, managing customer loyalty programs, and keeping a record of every customer interaction with your business.
Automation will ensure consistency while you have ample time to concentrate on other more critical areas, such as retention efforts, which require more strategic attention.
Photo by Priscilla Du Preez 🇨🇦 on Unsplash
Measuring customer retention efforts
Some of the key metrics you should consider implementing when measuring customer retention include the following:
Customer Retention Rate (CRR):
CRR measures the percentage of customers who stay with your brand over a set period. A high CRR suggests successful retention efforts.
Repeat Purchase Rate (RPR)
RPR measures the percentage of customers who make repeated purchases from you over a period. If scores in an RPR are high, it signals that your brand maintains a high repeat purchase ratio and has strong loyalty.
Customer Lifetime Value (CLV)
CLV measures the revenue customers bring to a brand throughout their lifetime with an app. Shopping app developers and marketers should focus on increasing CLV as their main retention strategy objective.
Net Promoter Score (NPS)
This score measures customer loyalty to your brand. It not only highlights customer loyalty but also determines whether they would recommend your brand to another person. The better the NPS, the higher the customer's devotion to a brand, along with their loyalty and support.
Conclusion
Customer retention is a multidimensional endeavor that requires strategic planning and diligent effort. Businesses or brands can significantly increase retention rates by personalizing customer experiences, providing exceptional service, creating loyalty programs, leveraging technology solutions, and maintaining effective employee-customer interactions.
Developers of shopping apps shouldn't just retain customers; they should do everything possible from their end to turn them into brand advocates who drive the business's long-term success. In this respect, nowadays, when the online retail landscape has become very competitive, not only is it nice to retain customers, but it is also crucial to achieve long-term sustainability growth.
Partner with AVOW to reach your customers effectively through mobile OEM advertising and drive retention like never before!
7 Online shopping trends to look out for in 2024
As we enter 2024, online shopping continues its rapid evolution, driven by advances in technology and changing consumer behaviors. It is no longer about convenience alone. Understanding shopping trends in 2024 will help you stay ahead in the race.
Today, e-commerce entails designing engaging experiences that are tailored specifically for individual consumers and meet their ever-evolving consumer expectations. For retailers and marketers to remain profitable in such a highly competitive market, staying abreast of trend predictions is vitally essential, especially if they wish to not only survive but also prosper within it.
In this article, we'll examine some of the biggest online shopping trends in 2024 and how they will shape this year's shopping season. We will provide insights on how best to adapt to and leverage these changes for success.
Shopping Trends 2024
AI-driven personalization emerges
According to the Pew Research survey, 55% of Americans already regularly use AI, while 44% believe they don’t. Artificial intelligence (AI) will become even more integral to online shopping by 2024 as consumers increasingly expect personalized experiences tailored to their tastes and preferences.
AI allows retailers to analyze vast amounts of customer data, such as browsing habits and purchase history, to deliver highly tailored recommendations and content for shoppers.
AI-powered algorithms can accurately forecast which products customers will purchase based on previous interactions, creating an experience tailored specifically for each person who receives it and ultimately leading to increased conversion rates and customer retention rates. Such personalization also enhances customer experiences as it drives increased conversion rates and customer loyalty.
Retailers seeking to remain competitive must invest in AI technologies that enable them to provide hyper-individualized experiences across all touchpoints—from product recommendations and tailored marketing messages to customer loyalty management systems.
Augmented reality shopping
According to a recent survey, by 2025, one-third of U.S. shoppers are expected to use AR technology for online purchases, with 61% of shoppers saying they prefer retailers with AR experiences. Augmented Reality (AR) has already made significant waves in e-commerce, but 2024 will see its mainstream adoption even further. AR allows shoppers to experience products even before purchasing them online, closing the divide between physical and online retail shopping experiences.
Image by StockSnap from Pixabay
Imagine having the ability to view how furniture would look in your living room or how shoes would fit on your feet right from home! Retail giants such as IKEA and Sephora have already started using AR features in their apps, and more brands will for sure embrace this technology by the end of 2024.
AR technology enhances shopping experiences and can decrease return rates by helping shoppers make informed decisions when shopping for a product online. Considering 71% of consumers would shop more often if AR were involved, implementing AR in online retail platforms will allow retailers to remain relevant by engaging customers with fresh experiences in exciting ways.
Sustainability is gaining momentum
Environmental awareness among buyers continues to gain steam, and in 2024, this trend could emerge as one of the significant determinants of online shopping trends. Do you know that 44% of consumers are more likely to buy from sustainable brands, and this number continues to grow?
More shoppers prioritize eco-friendly products and practices, which has resulted in an upsurge in demand for sustainable brands.
Retailers that can demonstrate their dedication to sustainability-whether through ethical sourcing, reduced packaging, or carbon-neutral shipping, are more likely to enjoy a greater competitive edge than their counterparts who cannot demonstrate such efforts. Consumers want products that align with their beliefs but also are willing to pay extra to obtain such goods or products.
As such, many brands are increasingly adopting sustainable business models by offering recyclable packaging or producing items made of recycled material. Marketers or online shopping app developers that embrace this trend will not only gain environmentally conscious consumers but will also contribute towards creating a greener tomorrow.
The rise of social commerce
As per a report, in 2024, social commerce will reach a 25% penetration rate, with one in four customers shopping via social media. In recent years, shopping directly via social media platforms such as Instagram, TikTok, and Facebook has seen exponential growth. 2024 will likely mark its ascension further.
Platforms like these continue to enhance user experiences by providing customers seamless purchasing solutions without them having ever to leave an app's interface. They allow seamless browsing and purchase capabilities, all from within the confines of an app.
Social commerce has quickly become one of the hottest trends among younger consumers who rely heavily on social media to discover products and brands. Features like shoppable posts, live-stream shopping events, influencer partnerships, and influencer loyalty schemes have transformed how consumers engage with brands online.
Shopping app developers in 2024 should invest in an effective social commerce strategy by creating engaging content, leveraging influencer relationships, and optimizing shopping experiences on social platforms so as to capture the attention of this increasingly sizeable social shopper segment.
Voice commerce booms
In 2022, 142 million Americans used voice assistants. By 2026, this number is expected to rise to 157.1 million. Voice-activated shopping (or voice commerce) is projected to grow even stronger in 2024 as customers increasingly adopt smart speakers like Amazon Alexa and Google.
Assistant and Siri are included in their daily routines, and they start using voice commands to search for products, purchase them, and track orders through these smart speakers and assistants.
Voice commerce provides convenience by being hands-free, fast, and intuitive. It is, therefore, perfect for busy consumers who can use their voices to reorder household goods, add products to carts, or track delivery statuses quickly and effortlessly.
Marketers looking to take advantage of this trend should optimize their e-commerce platforms for voice search and ensure product information can easily be accessed through voice assistants, which not only provides superior customer experiences but also positions brands to capitalize on voice-enabled shopping's growing popularity.
Buy Now, Pay Later
Global BNPL transactions are expected to grow by $450 billion from 2021 to 2026, building on a 400% increase.
Buy now and pay later (BNPL) models have seen unprecedented popularity over the years, and 2024 should see further expansion. Customers using these services make purchases upfront before paying in installments without incurring much or any interest. This payment model is particularly appealing to younger consumers and those looking for flexible payment solutions.
Klarna, Afterpay, and Affirm have established themselves as leaders in the BNPL. More retailers are joining these providers to offer alternative payment options that boost sales and customer satisfaction by making high-ticket items more easily accessible. It is ultimately offering greater financial flexibility to shoppers.
Online shopping app developers should include BNPL options in their checkout processes to meet growing customer expectations for flexible payment solutions and increase conversion rates and customer loyalty.
Increased focus on data privacy and security
Recent research reveals that seven in ten internet users feel more vulnerable to identity theft than a few years ago. With digital platforms now offering consumers more shopping choices, concerns over data privacy and security are on the rise. In 2024, shoppers will continue demanding greater clarity over how their personal information is collected, stored, and utilized.
Retailers must prioritize data privacy by employing robust security measures like encryption and multi-factor authentication and being transparent about their practices. Compliance with regulations like GDPR and CCPA is vital while building customer trust by showing that they care about safeguarding customers' personal information.
As data breaches increase in frequency and severity, buyers have become more selective about where to shop online. Shopping app stores that can assure customers of data security may avoid potential legal ramifications while simultaneously building long-term trust and loyalty among customers.
Conclusion
2024's online retail landscape promises to be more customer-driven and dynamic than ever. AI-powered personalization, AR shopping experiences, and voice commerce will be trend-shapers that focus on improving the customer journey and meeting ever-evolving consumer expectations.
Since you now understand shopping trends in 2024, you should embrace trends, invest in technology solutions, and adapt strategies in response to consumers' evolving needs. Doing this will position your brand as an industry leader within the e-commerce ecosystem, driving growth while building customer loyalty over the coming years.
Ready to elevate your mobile shopping experience? At AVOW, we specialize in helping brands leverage the latest trends and technologies in the mobile OEM advertising space. Let us assist you in reaching your target audience, driving engagement, and staying ahead of the competition. Get in touch with us today to learn how we can transform your mobile marketing strategy and maximize your app's success in 2024 and beyond.