Mobile App Advertising Industry Updates: Fall 2021

Mobile App Advertising Industry Updates | Fall 2021 | AdAction.com

The mobile app advertising landscape is constantly changing. So many factors impact the industry. In turn, they shape the ecosystem for mobile app marketers and the networks that support them. 

In this post, we’ll offer insights on mobile app advertising trends and what to expect for the rest of 2021 and into 2022.

Looking Back to Determine the Future

In the past two years, the mobile app world experienced significant changes and shifts. In that time, we learned a lot about user acquisition, engagement, and retention. Of note, people spend around 92% of their time in apps while on mobile devices. The biggest winners in acquiring new users were social and gaming—no shock there. The thing that was? The record amount of revenue collected by apps in 2020 and into 2021. 

With a new environment to consider, how has the industry responded to these pivotal changes? And what major industry challenges lie ahead?

IDFA Changes Attribution Forever in Mobile App Advertising

Apple’s bold move to enact stronger privacy settings is likely the single biggest disruption to the industry. The IDFA (identifier for advertisers) was once the default. Now each user has to opt-in to data tracking. The move comes as Apple attempts to control user experiences while pushing its in-house tracking services. 

Will this make ads less relevant to those served them? And will that further deteriorate the consumer-advertiser relationship?

Apple has its new measurement solution, but there are many ways to adapt. 

  • Transition advertising measurement from deterministic to user-centric approaches.
  • Diversify your app advertising with new channels that have fewer barriers to attribution.
  • Define your ideal audience better, so you can market to them better.
  • Work with network partners that can help you expand your reach with unique user bases. 

M-Commerce Is Thriving

It’s no secret that consumers moved to online channels to buy just about everything, from groceries to even cars. 2020 was the biggest m-commerce year ever, with spending hitting $53.2 billion, a 55% increase from the previous year. 

The forecast is that shoppers will spend even more time on apps, as they like the convenience and ease. What does this mean for online shopping?

  • Businesses need specific strategies for m-commerce, which is different from e-commerce.
  • Apps need to drive traffic to apps and make them easy to use and engaging to get their share of the revenue pie.
  • User acquisition for shoppers to adopt apps will often require rewarded advertising through all aspects of the funnel. 
  • Apps should consider ways to integrate social commerce to meet the new buying behaviors of consumers. 

Mobile app advertising needs to support conversion to m-commerce. Failure to address this trend could result in loss of customers.

Mobile Games Evolve into Social Networks

Mobile Games Evolve into Social Networks

The mobile games that won the pandemic had several things in common related to social features. Those include in-game chat, social media connections, and spectator modes. The latter is an emerging trend, as gaming gets an audience. 

These are significant industry changes. Mobile gaming has often been a solitary experience where players become their characters, especially in role-play games. Now, there’s this new social element, which will impact future advertising.

One example could be paid keyword campaigns executed on iOS and Android. If a game has these social features, it’s wise to reconsider your keyword strategy and incorporate these social attributes into those. It’s what audiences are seeking out as they explore new games. Be in the results to acquire them.

Personalization for Users Matters Significantly

Another mobile advertising industry update is the pursuit of personalization. It’s something of a buzzword in the world of marketing. Brands use data to deliver the most personal experience, which often leads to conversions and loyalty. In fact, personalization can boost advertising effectiveness by up to 30%.

Can apps do this with their advertising? 

To tap into this trend, you’ll need data, which is harder to get because of privacy and the coming death of third-party cookies. However, you are still collecting data associated with all advertising campaigns and user behavior in the app. Use this to map out more optimal customer journeys to specific groups. This works best for niche apps but applies to those with broad appeal.

With the new iOS 15 update, you can create up to 35 custom product pages (CPPs) for paid ads. It’s an excellent way to segment and personalize.

5G Is Opening Up New Opportunities for the Industry

5G is quickly becoming the norm for internet speed. What does speed have to do with advertising? Well, it provides some new opportunities by enabling high-speed data delivery, 4K video streaming, and HD augmented and virtual reality. These advantages can drive better engagement and retention.

AR and VR are the next generation of app experiences and functionality. AR, more so, since you don’t need additional equipment. Furniture stores let you envision a couch in your living room. Makeup brands allow you to see how a color looks on your lips. 

These become exclusive features that can impact advertising in any channel. Using these to lead messaging and visuals can drive new users. Once acquired, they keep the user engaged and coming back.

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