For Mobile devices ,think apps not adds
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The document discusses the ineffectiveness of mobile ads and emphasizes the preference of consumers for mobile apps that add value to their lives. It highlights that users spend 82% of their mobile time on apps and outlines effective app features that can enhance consumer engagement, such as convenience and unique value. Examples like Tesco's Home Plus and Nike+ demonstrate significant revenue growth driven by these innovative app strategies.
For Mobile devices ,think apps not adds
- 1. For Mobile Devices think apps not ads Harvard business review PRIYANKA ROYAL MNNIT ALLAHABAD
- 4. Consumers just don’t like them .
- 5. So , What the company should do to reach consumers and engage them?
- 6. Why mobile adds don’t work? People just Don’t Like Them Surveys show that people find mobile ads more intrusive than desktop ads, because mobile is a more private venue. In fact, fully four in five say that mobile ads are “unacceptable.” There’s No Right Side PC users are conditioned to find ads in the right margin of the screen—they appear that way on Face book and in Google search results, for example. But mobile screens are too small to have a usable right margin, so ads pop up in unexpected places. The “Fat Finger” Effect Advertisers closely track how many users tap on an ads. But many of those taps are inadvertent, because the ads are tiny—so it’s difficult to judge an ad’s effectiveness.
- 7. Therefore , Smart marketers go for effective Apps
- 8. Survey shows that beyond calling , e- mailing and texting ,apps dominate .Users spend ,on average , 82% of their mobile minutes with apps and just 18% with web browsers. They download about 40 apps to their phone and regularly use 15 of them.
- 9. Even Yelp , Tripadvisor and Flixster ,nike and red bull use mobile apps to reach to consumers.
- 10. So, what is the challenge for brand marketers?
- 11. The challenge is that to create effective apps that add value to consumers’ lives and enhance long-term engagement with their brands. To do so company marketers need to understand how and why users choose apps.
- 12. Effective apps do one of the following
- 13. 1) Add convenience Banking apps, for example, let people pay their bills online, and airline apps let them check in and monitor the status of their flights.
- 14. 2) Offer unique value In South Korea, commuters can use an app to order groceries from Tesco’s Home Plus while waiting for their trains.
- 15. 3) Provide social value Apps on Facebook and other sites let users send gifts to their friends.
- 16. 4) Offer incentives Apps that give away mobile minutes, for instance, can entice customers.
- 17. 5) Entertain •Red Bull and other companies have devised popular games focused on their brands.
- 18. How an app drives revenue Tesco’s Home Plus lets commuters use a Smartphone app to scan the QR codes of the groceries they want to buy and to have delivered to their homes. Within three months of the system’s rollout, registered users of the delivery service rose by 76%, and revenue increased by 130%. Nike, similarly, has capitalized on mobile’s distinctive abilities. In 2006 it unveiled Nike+, an app (originally for iPods, now available for most smart phones) that works with a special chip in runners’ shoes to monitor speed, distance, and calories burned Although the app itself is free, people must buy either a sensor-equipped Nike sneaker or a shoe-mounted sensor in order to use it. Nike credits the app with having driven growth of 30% in its running division as of 2012, and it has expanded Nike+ to include apps and accessories that track other activities, from playing basketball to sleeping.
- 19. Neither the Home Plus app nor Nike+ feels like a traditional marketing communication—and that’s exactly the point.
- 20. Mobile users don’t want ads; they want apps that deliver unique benefits.
- 21. Recap 1) Company go for mobile adds to reach more number of consumers but there is growing consensus that ads do not work for mobile devices. 2)There are three main reasons why mobile apps don’t work a)people just don’t like them because mobile is more private venue. b) there is no right side because ads pop up at unaccepted places. c) the fat finger affect because the adds are tiny so its difficult to judge its effect. 3) Smart marketers go for effective ads. 4) Surveys show that users spend 82% of their mobile minute with apps and less than 18% with web browsers. 5) Even yelp ,trip advisor , flixster , red bull and nike use mobile app to reach customers. 6)The challenge for brand marketers is to develop effective apps that add value to consumers life and enhance long term relationship.
- 22. 7) Effective apps do one of the following thing: a) add convenience b) offer unique value c) provide social value d) offer incentives e) entertain 8)App derives lots of revenue .For example : Tesco's home plus app was downloaded by many consumers and it rose to 76% and revenue increased to 130%. 9) Neither the Home Plus app nor Nike+ feels like a traditional marketing communication—and that’s exactly the point. 10)Mobile users don’t want add they want app that delivers unique benefits.