tapjoy whitepaper brandedapps dec2014v2 (1)

8/9/2019 Tapjoy WhitePaper BrandedApps Dec2014v2 (1)

1/14


2/14

Today’s brands face a difficult challenge: while desktop usage is on the

decline, consumers now spend more than half of all their digital media timeusing mobile apps1. Brands must either adapt to the evolving digital

landscape or get left behind and risk missing out to their more mobile-savvy

competitors. Many brands have launched their own mobile apps in an effort

to build loyalty and strengthen customer relationships, with varying degrees

of success. Brands such as McDonald’s, Chipotle, and Walgreens have

received millions of installs and successfully used their mobile apps to help

improve the overall customer lifecycle, while others have struggled to find

an effective strategy.

Brands looking at the landscape for “best practices” might be surprised todiscover that one group of app developers has been studying, testing, and

optimizing app usage for years: game developers. Tapjoy has worked with

thousands of mobile games and other types of apps over the years to help

them acquire, engage, and retain app users. In that time the company has

identified many best practices to help get the most l ifetime value from an

application’s user base.

We wanted to share some insights we’ve gathered to help brands optimize

the engagement and retention of their mobile app users.

1 comScore; “Major Mobile Milestones in May: Apps Now Drive Half of All Time Spent on Digital”; June 25, 2014;

www.comscore.com/Insights/Blog/Major-Mobile-Milestones-in-May-Apps-Now-Drive-Half-of-All-Time-Spent-on-Digital

1

INTRODUCTION


3/14

WHY BRANDSSHOULD BUILD

MOBILE APPS

BUILD BRAND LOYALTY

Mobile devices have become our most personal computer devices, with

consumers checking them up to 150 times per day 2. That makes the mobile

screen pretty prime real estate for branding—perhaps even more important

than the TV screen. If a consumer invites a brand to occupy this real estate, it’s

a testament to their brand loyalty and the fact that your brand is bringing value

to that consumer.

ENGAGE CUSTOMERS MORE EFFECTIVELY

Mobile apps create a 100% opt-in, one-to-one communication channel

between brands and the customers who download their apps. Using proper

analytics, measurement, and marketing automation tools, this channel can be

used to engage with customers in a number of unique and previously

impossible ways, such as delivering fresh, mobile-specific content, promoting

special deals and promotions, or even serving as customer service centers.

DEVELOP A STRONG CROSS-SCREEN STRATEGY

With 70% of consumers now using three or more connected devices such as

smartphones, laptops, desktops, or tablets3, it’s more important now than ever

before for brands to connect with their targeted audiences across all of the

screens they are using.

SHORTEN THE PATH TO PURCHASE

Fifty-two percent of consumers who regularly used at least one branded app

on a phone or tablet said the app made them more interested in buying fromthat company4. An app can help grease the wheels for a purchase and also

shorten the path it takes to get there.

2

Although the shift in media towards mobile apps represents a significant

challenge for most brands, there are a number of advantages to be gained

for brands that are able to master the channel, such as:

2 Daily Mail; “Mobile users can’t leave their phone alone for six minutes and check it up to 150 times a day”; February 10, 2013;

http://www.dailymail.co.uk/news/article-2276752/Mobile-users-leave-phone-minutes-check-150-times-day.html#ixzz3FOCa3HXf

3 Forrester/Tapad; “Tapad Reveals Leading-Edge Cross-Screen Research at Unify Tech ‘14”; April 29, 2014;

http://www.prnewswire.com/news-releases/tapad-reveals-leading-edge-cross-screen-research-at-unify-tech-14-257154051.html

4 eMarketer; “Brands’ Mobile Apps Aren’t Just About the Discounts”; August 2, 2013;

http://www.emarketer.com/Article/Brands-Mobile-Apps-Arent-Just-About-Discounts/1010100#sthash.GluuiU0O.dpuf

REASONS THAT MOBILE DEVICE USERS WORLDWIDE USEBRANDED MOBILE APPS, FEB 2013 % OF RESPONDENTS

43%

Keep informed about the brand, product, store or company

Get discounts and coupons

Easier and quicker than going to the their site or social media page

They have tools that help me

They have fun, interesting and cool content

Participate in their contests

Offer opinions and suggestions

They make me feel connected to the

brand, product, store or company

None of these

Note: n=6,158 who regularly use at least one mobile/tablet app for brands, products, stores or companies

Source: Ipsos OTX and Ipsos Global @dvisor, “Socialogue,” July 23, 2013

41%

38%

35%

27%

20%

18%

17%

9%


4/14

3

UTILITY APPSA utility app typically simplifies a previously difficult task or enables its users to

accomplish some type of goal. Walgreens, for instance, launched an app that

allows customers to refill their prescriptions simply by scanning the Rx label and

picking it up at their pre-set, preferred location. In another example, the

Hotels.com app allows customers to search and book more than 120,000

hotels and access their reservations while either on or offline.

TYPES OFBRANDEDMOBILE APPSThere are a number of different types of apps a brand

could build, depending on its goals, capabilities, and

how the app fits into the company’s overall strategy.

A few of the more popular types of branded apps are

listed here. When deciding which type of strategy to

pursue, it’s important to keep in mind that the app

should generally strive to make life somehow easier,

cheaper, or more fun for its target audience.


5/14

ADVERGAMINGAPPSAndroid and iOS users spend

32% of their app time playing

games5, and many brands have

tried to capitalize on

consumer’s interest in the

genre. One notable example is

McDonald’s. McDonald’s GOL!

app, launched this summer

during the World Cup, uses

Augmented Reality to enable

gamers to play a virtual

version of the worldwide

soccer tournament.

PRODUCT BROCHURE APPSA brochure app makes it easy for mobile customers to get important

information on a brand’s product lines. British automaker Aston Martin,

for example, recently put all of its showroom brochures into a single

mobile app, giving drivers a comprehensive look at the brand’s product

line and enabling them to customize their favorite vehicles.

5 The Next Web; “Flurry: Android and iOS users spend 32% of their app time playing games, 17% in Facebook,

and 14% in a browser”; April 1, 2014;

http://thenextweb.com/mobile/2014/04/01/flurry-android-ios-users-spend-32-app-time-playing-games-

17-facebook-14-browser/4


6/14

CUSTOMER SERVICE APPSMobile apps have the potential to streamline customer support or

help provide exemplary customer services. Zappos is one brand that

is known for its outstanding customer service, and its mobile app is

no exception, as it contains its own line for mobile shoppers as well

as other customer-centric features.

CAUSEDRIVEN APPSOne way to attract positive attention is for a brand to attach itself to a

worthwhile cause. The restaurant chain Chipotle launched a gaming

app called Chipotle Scarecrow that cleverly promoted its “Food with

Integrity” campaign, supporting food that is produced with respect for

animals, the environment, and for farmers.

5


7/14

No matter which type of app a brand builds or what its goals are for it, simply

launching an app is never enough. The company will have to implement a

proper marketing and communications strategy in order to drive true

engagement with the app and maximize its value.

No group understands app engagement and retention better than game

developers. With more than 270,000 active games on the App Store alone6 ,

competition for game downloads is fierce, meaning that if a game developer

wants to keep its users around for very long they have to be very intelligentin how they engage and retain those users. Following is a list of the top 11

lessons game developers have learned that might help brands maximize

their own mobile apps.

6 PocketGamer; “App Store Metrics”; October 7, 2014; http://www.pocketgamer.biz/metrics/app-store/6

TOP 11 TIPS FROM

GAME DEVELOPERS


8/147

BUILD SOMETHING GREAT

It sounds obvious, but the first step towards driving user engagement

and retention is actually building an app consumers will enjoy. With

more than 2.5 million apps available through the App Store and

Google Play, consumers have plenty of options to choose from, so if

an app doesn’t deliver value then it’s not likely to get much attention.

As game developers have realized, it’s hard enough for even great

apps to get noticed, but even more difficult for less-than-great apps.

So brands must start by building something unique and valuable for

their consumer.

1

ACQUIRE HIGH-VALUE YET COST-EFFECTIVENEW USERS

In an ideal world, an app would be launched on the App Store or

Google Play, and interested users would start finding it right away. And

sometimes a company is lucky enough to have its app featured by one

of the platforms, in which case they are likely to get millions of organic

installs for free. But the chances of that happening are less than slim. In

order for most apps to reach critical scale, they will need to be

supported by strategic marketing and advertising campaigns.

There are a plethora of advertising networks and publishers that canhelp drive app installs, using payment methods ranging from Cost Per

Impression (CPM) and Cost Per Click (CPC) advertising to

Pay-Per-Install, which tends to be more cost-effective and controllable

in the long run. Recently, video-to-install solutions have become

extremely popular because they allow consumers to watch a trailer of

an app and then decide if they want to download it. Game developers

use full-funnel analysis of their installs to gauge which ad sources drive

the highest-quality users at the most cost-effective rates, and invest

more heavily in those sources over time. Brands must learn to do the

same if they don’t want to see their apps wither on the vine.

2

ONBOARD NEW USERS WITH ANEXCELLENT “FTUE”

The first session that a new user has with an app is so important to

game developers that they have a common acronym for it: FTUE,

standing for “First Time User Experience.” One out of every four apps

downloaded are abandoned after the initial use7, demonstrating how

important it is to put your best foot forward right away and give users a

reason to continue using your app. Many game developers offer a basic

tutorial to first time users in order to show them how to use the app,

what its best features are, and other important tips. Game developers

will typically also set their players up to be successful during their first

use of the app, which typically means starting with a simple challenge

that they can win. The key for brands is to leave their users feeling good

about the experience when they’re done using an app for the first time.

7 New Relic; “Mobile APPeal: Exploring the Mobile Landscape”; March 13, 2013;

http://blog.newrelic.com/2013/03/13/mobile-appeal-why-the-future-is-mobile/

3


9/14

USE PUSH NOTIFICATIONS, BUT USETHEM WISELY

Push notifications can be a mobile marketer’s best friend. They let

brands literally “push” messages to customers to get them to come

back and re-engage with the app. Game developers tend to use

notifications for things like letting the player know when it’s their turn

to make a move or when new content is available. It is important to

have comprehensive analytic and marketing automation capabilities to

get the most out of engagement opportunities like Push Notifications.

With proper analytic capabilities, developers can easily see that for

some apps, these messages are especially critical during the first3–7 days of a user’s experience, when their pattern of using an app is

not yet determined. The content of the message should highlight app

features or be driven by specific events such as when a special

promotion is taking place or when a consumer is close to a physical

storefront. But brands must be careful not to overdo it—push

notifications can become annoying when used too often or when they

don’t provide obvious value. Having an analytics solution that is

synchronized to your automation platform becomes a great way to

learn user behaviors and serve (or not) appropriate messages.

4 UPDATE APP CONTENT REGULARLYGame developers understand that the best way to keep their usersplaying a game over the long haul is to continually release freshcontent updates so that there’s always something new to explore.

This strategy is so crucial to many game developers’ business model

that there’s a name for it: Games-as-a-Service (GaaS). Whether it’s

once a quarter, once a month, or sometimes even once a week,

many game developers will update their app to include new levels,

new characters, new missions or quests, etc. The app experience

never gets boring for the users, and it gives them good reason to

keep using the app long after they first installed it. Brands should takenote and make sure to update their own apps with fresh new content

and features as regularly as is feasible. If you’re going to take the

plunge and build an app, it’s not going to be a launch-it-and-forget-it

proposition. You’ll have to nurture it.

5

8


10/149

LEVERAGE GAME MECHANICES TO DRIVEENGAGEMENT

In 2011 and 2012, you could hardly attend a conference or read a

tech blog without hearing or seeing the buzzword “gamification,”

which refers to the act of non-gaming apps, web sites or services

leveraging what are traditionally thought of as gaming elements to

drive user engagement and retention. The term might have been

overused at this point, but the lessons learned have not lost any of

their value. By incorporating game mechanics such as achievements,

rewards, quests, bonuses, collecting, progression, competition and

more into their apps, brands can give their customers a fun

experience that also motivates them to come back and continue to

engage day after day.

6

SEGMENT USERS TO DELIVER TARGETED,CUSTOMIZED EXPERIENCES

Game developers have gotten very sophisticated about the way they

segment and target their users with personalized content. By

segmenting users based on criteria ranging from demographics and

geography to device type and, perhaps most importantly, their in-app

behaviors, developers are able to deliver custom messages, rewards,

offers or even entirely custom game experiences that match those

users’ interests and needs. An excellent example of effective

segmentation from a branded app is when Urban Outfitters took

advantage of an East Coast snowstorm to segment users by location

and send push notifications to those users stuck in the snow with

offers of new items they could browse while it snowed.

7

CONDUCT SPECIAL, LIMITED-TIMEIN-APP EVENTS

Another effective method for getting users to come back and visit an

application is to host special in-app events. Many game developers will

regularly host in-game events such as Daily Challenges, One-Day Sales,

Livestreams, and more. Massively Multi-Player Online (MMO) games are

particularly adept at these in-game events. They often gather their

players from around the world on certain dates and times to take place

in events such as Player-versus-Player battles or collective raids against

a common enemy. Brands can take a cue from these game developers

by conducting their own special events that might be used to introduce

a new product line, make a special announcement, or to simply bring

their communities closer together.

8


11/14

RE-ENGAGE USERS THROUGH AD CAMPAIGNS

While most app developers think of advertising solely as a means

for new user acquisition, many game developers have come to

realize that it can be an effective way to re-engage with users that

have already downloaded an app. Ads that re-target an app’s

existing users can deliver offers urging them to open the app and

complete some type of action within it, such as completing the

next level or checking out new content. Because the average

smartphone owner uses nearly 27 apps per month8, these types of

re-engagement campaigns often serve as important reminders that

they’ve downloaded an app and have a good reason to keep using

it. Brands can also use retargeting campaigns to encourage lapsed

users to return to the app after a period of inactivity.

9

ALLOW USERS TO CUSTOMIZETHEIR EXPERIENCE

One of the best ways to get consumers to keep using an app is to

create some type of barrier to exit that makes it difficult for them

to simply walk away. If a user has invested time and energy into

customizing a certain app to their liking, they are more likely to

continue using that app over any new competitors that might

enter the field, even if those competitors have better features.

Game developers often allow players to personalize their

experience by setting up individual profiles and avatars, for

instance, or by customizing weapons and tools to their liking.

Some games, like city building games, have based their entire

premise around allowing players to create something that is

unique to themselves. Brands should take note from game

developers such as these and figure out ways to allow users to

customize the experience to suit their personal tastes.

8 Nielsen; “SMARTPHONES: SO MANY APPS, SO MUCH TIME”; July 1, 2014;

http://www.nielsen.com/us/en/insights/news/2014/smartphones-so-many-apps--so-much-time.html

10

10


12/14

COMPARATIVE

30 April0k

2.5k

5k

7.5k

10k

12.5k

0m

10m

20m

30m

40m

50m

2 May 4 May 6 May

2.2 version update vs Happy May Event

2.2 version update: Spend time Impression

Happy May Event: Spend time Impression

8 May 10 May 12 May

MEASURE, ANALYZE AND OPTIMIZE

The final tip on this list might just be the most important.

Nearly all of the top game developers drive their business

forward through the strategic use of analytics to help track,

measure, and analyze practically every metric they can get

their hands on. An entire industry has sprung up around app

analytics, geared to help developers understand how their

users are behaving within their apps and what effect any

changes have on their Key Performance Indicators. What is

becoming more valuable for app developers is when analytic

solutions are married with marketing automation tools to

help developers maximize the lifetime value from their users.

These tools allow game developers to optimize those KPIs by

conducting A/B tests, splitting users up into cohort groups,

targeting user segments more effectively, and so on. Brands

must learn to not only track their user behaviors, but

understand which changes have the biggest impact on their

key metrics and optimize their apps accordingly, all from a

single dashboard. Some of the more common metrics

tracked closely by game developers include:

• Day 1, 7, and 30 Retention

• Average Time Spent Per User Per Day

• Sessions Per Day/Week/Month

• Average Revenue Per Daily Active User (ARPDAU)

• Daily Active Users as a percent of Monthly Active Users

(DAU/MAU)

• Lifetime Value

11

11


13/14


14/14

REWARDINGMOBILETapjoy helps brands and developers maximize the

lifetime value of their mobile app users. Please

contact [email protected] with questions or

to learn more about our services.

tapjoy whitepaper brandedapps dec2014v2 (1)

Documents