Blog Article
October 14, 2024
During an Advertising Week panel moderated by Beth Berger, VP and GM of Moloco Ads, our own Dario Sheikh, Director of Agency Sales, was joined by Zach Gryphon, Practice Lead for Mobile Apps at Wavemaker, and Conor McElhaney, Senior Manager of Paid Media at Teladoc Health. Together, they explored mobile app growth and omnichannel strategies that drive results for brands.
As mobile apps become central to driving growth, many marketers are still figuring out how these apps fit into their overall business strategies. Mobile apps present a powerful opportunity, not just for user engagement but as a significant channel for revenue generation and expanding reach. To unlock this potential, businesses need to adopt a specialized approach that goes beyond traditional methods and recognizes the unique dynamics of the mobile app ecosystem.
“I’m seeing marketers struggle with how mobile apps fit into their business. This is both a challenge but a beauty of the space. Marketers need to shift to an “in-app” mindset. Navigating this space is the right way to unlock a new channel of revenue.” — Dario Sheikh, Director of Agency Sales at Moloco
According to a recent study, consumers spend 88% of their mobile time on apps, compared to the mobile web. This level of engagement translates to higher conversion rates, with app campaigns often seeing up to 3x better performance than traditional channels.
While walled gardens, such as Google and Meta, offer a streamlined entry point into mobile app marketing, they represent only a fraction of the available opportunities. The open internet app ecosystem is vast, consisting of more than 3 million independent apps that reach 6.7 billion devices across 190 countries. Tapping into this open ecosystem is crucial for driving incremental, efficient growth.
However, the vastness and complexity of the open internet make success more challenging. Brands can't simply copy and paste their walled-garden strategies; they need a specialized approach that streamlines ad buying while optimizing for return on investment.
A specialized mobile programmatic platform is essential for navigating the unique nuances of the mobile app ecosystem. Unlike the web, mobile advertising requires a differentiated approach to measurement frameworks, creative formats, and operational efficiency.
Here are 3 key considerations for marketers when venturing into mobile advertising on the open internet, as discussed by panelists:
When it comes to measurement, brands must navigate multiple frameworks across iOS and Android, each with its considerations. For iOS, marketers can leverage SKAdNetwork (SKAN) but must account for factors like aggregated reporting, randomized delayed postbacks, and conversion thresholds per campaign. Alternatively, probabilistic attribution based on user acquisition may offer real-time reporting but potentially lower accuracy. A comprehensive measurement strategy should incorporate top-down incrementality and bottom-up attribution solutions to holistically understand marketing value.
“When considering measurement for a brand with an online retail presence and brick and mortar for example, it can be a challenge to find the right solution from a measurement perspective but it's so powerful for your business when you collaborate with the right partner to make it work,” said Dario Sheikh, Director of Agency Sales at Moloco.
Creative formats are another key differentiator in the mobile app ecosystem. With a proliferation of ad formats, brands must leverage various creative types to maximize available inventory and gain insights into user interactions. This presents an opportunity for experimentation and differentiation, with emerging technologies like generative AI offering new avenues for creative production.
“In a world of automation, the biggest key to unlocking as a marketer is creativity. Creative is King, right? And this is true even more so in ML,” adds Dario Sheikh, Director of Agency Sales at Moloco. “We give our customers creative level performance insights that walled gardens can’t offer and the most sophisticated marketers are taking creative insights on messaging and ad formats and cross referencing those learnings back in the walled gardens to amplify their holistic strategy.”
Finally, operational efficiency is paramount when onboarding a new channel with various nuances. Brands should partner with providers offering flexible service models — from fully managed to self-serve–allowing agencies and clients to choose the best support model that aligns with their needs and resources.
"Channel mix presents a challenge, especially for newer mobile advertisers. Once we scale to a certain point within walled gardens, we often encounter diminishing returns. For other walled garden channels to succeed, it's essential to create a native experience; however, some products don't fit well in that environment. Collaborating with open internet partners allows us to scale and tap into a brand-new inventory." - Zach Gryphon, Practice Lead for Mobile Apps at Wavemaker
The complexity of the mobile app ecosystem requires platforms that offer streamlined workflows and intuitive interfaces. This means consolidating multiple tasks, such as media buying, optimization, and reporting, into one seamless dashboard. By doing so, brands can reduce manual processes, minimize time spent on campaign management, and enhance their ability to make data-driven adjustments in real-time. This holistic approach to operational efficiency boosts performance. It allows marketers to focus more on creativity and strategic decision-making, making mobile app campaigns more agile and responsive to market shifts.
By adopting a specialized approach to mobile programmatic advertising, brands can unlock the vast potential of the open internet app ecosystem, surpassing the limitations of traditional walled gardens. Leveraging tailored platforms that address the complexities of measurement, creative formats, and operational efficiency enables brands to maximize ROI while driving incremental growth. With the right strategy, brands not only boost user engagement but also position themselves for success in the rapidly evolving mobile app space, transforming their approach to marketing in a more data-driven, efficient manner.
“We’ve been leveraging all the app formats within walled gardens that have been able to drive successful growth. But at this point, we’re looking outside of traditional ways of driving app growth and Moloco provides a great opportunity for us in the future." — Conor McElhaney, Senior Manager of Paid Media at Teladoc Health
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