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Mobile Apps: Attitudes, Challenges and Opportunities, presented by Weather.com Apps on wireless devices have become a runaway mobile marketing success story. Brands are creating custom ones, the casual gaming industry has found exploding revenue streams and media companies are all building them -- but what do they offer to advertisers? Using a combination of 3rd party data and proprietary research conducted by The Weather Channel, the IAB presented a survey of app users plus ad effectiveness research with Paul Borgese, Weather Channel Director of Research & Insights, Ed Darmanin, VP Sales, and independent researcher Kathryn Koegel of Primary Impact. Our speakers presented a broad picture of what marketers and agencies need to know about apps. Covered in the webinar were: * App usage overall by content category • Tips on app measurement: what are the metrics that marketers need to assess apps as media for ad placement * Frequency of app usage: what kind of apps do consumers continue to use beyond the first week after download? * Consumer attitudes about the relative value of various types of apps post download * App usage and value as compared to other media sources of similar information * Solving the mobile reach challenge and just making it easier: techniques for achieving maximum reach of the mobile media market including a new initiative to simplify mobile rich media and make it work cross platform * Brand impact of ads in apps as compared to ads in mobile and ads online * Results of first-ever brand impact study on ads in iPad apps * Creative examples from Weather Mobile advertisers that include location based advertising for clients such as Kraft, Starbucks, Johnson & Johnson and LL Bean and rich media ads for Dunkin Donuts, Budweiser and Toyota.
Citation preview
webinar – 3/16/11
Moderator:Luke Luckett, IAB
Panelists:
Paul Borgese, Director of Research & Insights, The Weather Channel
Edward DarmaninVP Sales, The Weather Channel Digital and Mobile
Kathryn KoegelChief of Insights, Primary Impact
2
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“Like having life in your pocket.”Steve Jobsat the introduction of the iPhoneJanuary 9, 2007
“10 billion apps downloaded.”AppleJanuary 22, 2011
“Mobile driving most dramatic behavior transformation in history.”
Mary MeekerKPCBFebruary 10, 2010
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Smartphone Penetration - ProjectionAll Subscribers – Q3 10
SMARTPHONES WILL BE A MAJORITY BY Q2 2012 ACCORDING TO NIELSEN
34%41%
45%50%
55%61%
69% 66%59%
55%50%
45%39%
37%
28%25%21%
17%16%10%
22%
14%13%19%
31%
63%
72%
81%84%87%90%
86%
75%
83%79% 78%
Q2 2008Q3 2008
Q4 2008Q1 2009
Q2 2009Q3 2009
Q4 2009Q1 2010
Q2 2010Q3 2010
Q4 2010Q1 2011
Q2 2011Q3 2011
Q4 2011Q1 2012
Q2 2012Q3 2012
Smartphone
Feature phone
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Three month average ending December 2010 Source: comScore MobiLens
Top 10 most widely-owned handsets among U.S. subscribers 13+
0.9%
0.9%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.3%
1.3%
Apple - iPhone 3G 8GB
LG - Cosmos
RIM - Blackberry Curve 8330
LG - enV Touch
Apple - iPhone 3G S 32GB
Motorola - Droid
Apple - iPhone 4 16GB
Samsung Intensity
RIM - BlackBerry Curve 8530
LG - enV3 VX9200
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Source: Pew, September ‘10 extrapolated to total cell phone population figures from Nielsen
All adults
82% use cell phones
35% have apps
24% use apps
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• Higher on chart = more female• Further to right = older• Size of bubbles = # of users
comScore MobiLens, Three month average ending September 2010
Country: US, N=32,044
Mobile Media
Browser
App
Unlimited Data PlanSocial Networking
Played GamesListened to Music
Made Own RingtoneRingback
Purchased Ringtone
Purchased Game
35%
40%
45%
50%
55%
60%
25 26 27 28 29 30 31 32 33 34 35
% F
emal
e
Median Age
Demographics of Mobile Media Activities
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MORE AFFLUENT MORE URBAN, EDUCATED, PROFESSIONAL
ENGAGED WITH CONTENTYOUNG AND MOBILE
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Among the top 5 most
downloaded apps on
platforms, including the
iPad–
1/6 of all iPadshave The Weather
Channel app
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0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
Apr May Jun Jul Aug Sep Oct Nov Dec
Pag
e V
iew
s
UV
& C
um
ula
tive
Do
wn
load
s
iPad Weather Channel Usage 2010 Growth
iPad App UV iPad App Downloads iPad App PVs iPad Device PV on weather.com
Source: TWC Omniture full year stats
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4.7%4.7%4.9%
5.6%5.6%
7.1%8.1%8.1%8.1%8.2%8.5%8.9%9.2%
10.1%12.2%
13.8%17.1%
20.0%23.8%
25.8%
0% 5% 10% 15% 20% 25% 30%
Television GuidesGeneral Reference
Gaming InformationBusiness Directories
Tech NewsStock Quotes or …
Photo or Video …Bank Accounts
Entertainment NewsTraffic Reports
Movie InformationRestaurant …Work Email
Sports InformationNews
SearchPersonal Email
Social NetworkingMaps
Weather
Top Genres for Mobile Application Usage
Source: comScore: Three month average ending September 2010
Country: US, N=32,044
Location Based ServicesEmailOther
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8%
2%1%
1% 1% 1% 1% 1% 0% 0% 0% 0%0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
Percent of Mobile Audience that Accessed in September 2010(via App & WAP)
comScore Mobilens,Three month average ending September 2010
Country: US, N=32,044
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• A download is an important expression of consumer interest
• Downloads do NOT equate to usage: people have apps on their phones they do not use.
• 75% of apps are deleted within 90 days of the download (Flurry 7/10)
• 35% active user base is good according to app developers
• Marketers need to look at actual monthly usage figures in order to calculate potential reach of an audience for a campaign
• Where can you get these figures?:• Analytics sources like Omniture, Webtrends and Flurry: ask the App!• comScore and Nielsen release monthly reports on app usage from their panels –
and can tell you demography as well13
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1. What makes an app become part of someone’s regular media habit?
2. How do consumers value the various types of apps they have downloaded?
3. What is the difference between a Weather app user and users of other apps?
4. What does connection to an app mean to an advertiser?
14
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SURVEY METHODOLOGY
2,886recruited on weather.com
894 have actually
downloaded or used apps on their phone
1,146 have phones that are
capable of downloading
apps
509 have downloaded The Weather
Channel App on their mobile phone
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Blackberry24%
iPhone37%
Android21%
Other18%Blackberry
26%
iPhone30%
Android19%
Other25%
N= 509 TWC Mobile App UsersN= 894 All App Users
Q. Indicate which of the following you own:
TYPE OF PHONE OWNED
Apple is dominant for usage but BlackBerry and Android also rank
All App Users TWC Mobile App Users
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21%
23%26%
19%
12%
22%22% 26%
17%
13%
Less than 6 months
6 months to 1 year
1-2 years 2-3 years 3 years plus
TWC Mobile App users
All App Users
Q. How long have you had a phone that could download Apps?
45% HAVE HAD A PHONE THAT DOWNLOADS APPS FOR LESS THAN A YEAR
Dynamic nature of the market
More than 1 yearLess than 1 year
N= 509 TWC Mobile App UsersN= 894 All App Users
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81%
65%61%
54%
42%36% 36% 35%
22%
63%56%
52%46%
38%
29%34% 33%
19%
Weather Search Maps News Social Networking
Sports Games Entertainment Banking
TWC Mobile App UsersAll App Users
Q. How often do you use the following apps? Check all that apply.
N= 509 TWC Mobile App UsersN= 894 All App Users
APPS RANKED BY FREQUENCY OF USAGE
Frequently/Very Often
Weather is more frequently used than search or maps by all app users
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82%
65% 64%
54%
43%36% 36% 33%
25%
78%
53%
67%
54%
24%
53%
33%40%
18%
Weather Maps Search News Sports Social Networking
Entertainment Games Banking
Male Female
Q. How often do you use the following apps? Check all that apply.
N= 509 TWC Mobile App Users: 324 Males, 185 Females
FREQUENT USAGE AMONG MEN AND WOMEN
Frequently/Very Often
• Social networking and games more frequently used by women than men
• Sports, banking and maps skew more male
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81%
63% 62%58%
45%
36% 33%28%
11%
Weather Search News Maps Sports Social Networking
Entertainment Games Banking
TWC Mobile App Users Professionals
Q. How often do you use the following apps? Check all that apply.
N= 141 TWC Mobile App Users are Professionals (Occupation: Executive/Managerial/Professional)
FREQUENT USAGE AMONG PROFESSIONALS
Frequently/Very Often
Professionals more likely to access news than other demos; weather still ranks highest
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82%
66% 66%62%
51% 49%44%
35%
25%
Weather Search Social Networking
Maps News Games Entertainment Sports Banking
TWC Mobile App Users 18-34 yr olds
Q. How often do you use the following apps? Check all that apply.
N= 270 TWC Mobile App Users age 18-34
FREQUENT USAGE AMONG 18-34 YR OLDS
Frequently/Very Often
Social networking and games more important than for other demos; weather ranks highest for usage
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79%
67%
55% 53% 53%
39% 36%28%
When a major weather event is happening
In the evening to determine
next day weather
Before leaving on holiday
travel
On Fridays to determine
weekend weather
Before work to determine
clothing choices
On Sundays to determine
weekday weather
Before leaving on business
travel
Before you go home
from work
Q. What occasions typically influence your desire to use The Weather Channel app? Check all that apply.
N= 50916% not included on chart answered “other”
WHY DO YOU USE?Checking major weather, next day weather and before holiday travel are the top occasions that influence the use of The Weather Channel app
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80%75%
67%61%
48% 45%
33%29%
When a major weather event is happening
In the evening to determine
next day weather
Before work to determine
clothing choices
On Fridays to determine
weekend weather
Before leaving on holiday
travel
On Sundays to determine
weekday weather
Before you go home
from work
Before leaving on business
travel
Q. What occasions typically influence your desire to use The Weather Channel app? Check all that apply.
N= 2709% not included on chart answered “other”
THOSE STYLISH 18 – 34 YEAR OLDS…14 point increase over average weather app user for determining clothing choices
18-34 yr olds
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Q. Apps typically are either paid for by the users or supported by the revenues from advertising on the apps. Which of the following business models would you prefer to see The Weather Channel use?
N= 509
PAID OR AD SUPPORTED?• 59% prefer having ads run to support the app vs. paying a fee
• 37% wouldn’t mind a one time nominal fee
Charge users a one time, nominal
fee for downloading the
app ($1.99 or less)37%
Charge users based on how
often they use the app (those who
use the app most are charged a nominal fee of
$1.99 a month or less)4%
Have ads run to support the app
59%
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Continental Airlines targets consumers in New York City DMA
NJ Transit targets consumers in the state of NJ
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LL Bean ads targeting ZIP codes with “Young Accumulators”
Starbucks ads targeting ZIP codes with professionals and “Young Achievers”
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300x250 ad on iPad App
Rich Media video interstitial
Opening page featuring “sponsored by Toyota”
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• Introducing• Open Rich Media Mobile Advertising SDK• Initiative created by The Weather Channel Mobile, Crisp
Wireless and TringApps among others• Create a standard for rich media so that it works
regardless of platform (iPhone, Android, WinMo, Blackberry etc.)
• Lessens the coding necessary on the part of agency creatives and publishers running it
• IAB working on a portion of the project: creating a set of standard mobile rich media APIs, starting March 2011
• For more info or to get involved: www.ormma.org or contact Joe Laszlo, [email protected]
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3%
6%
2% 2% 3%5%
22%
4% 5%
12%
Aided Awareness Ad Awareness Brand Favorability Consideration Message Association
Online Norms Mobile Norms
39
Figures represent comparisons in deltas among Insight Express Online Norms as of 6/29/10, Dynamic Logic Norms 4/07-12/09 and TWC Mobile norms 4/07-12/09.
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6%
29%
7%
22%
61%
24%
Aided Awareness Mobile/iPad Ad Awareness Purchase Intent
Mobile Norms
Auto iPad
40
Figures represent comparisons in deltas between Automotive campaign results and Dynamic Logic Mobile Norms Q1/10 (Category: Mobile/Automotive, Baseline Adjusted, N=13 campaigns). Chart includes TWC Norms from 4/07 – 12/09.
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Source: Nielsen, State of the Media Report, Oct 2010
19%
19%
25%
27%
39%
23%
20%
25%
26%
40%
37%
39%
40%
46%
49%
I like to see what ads can do on a connected device
Ads on my connected device are new and interesting
I am more likely to click on ads that are simple text ads
I enjoy ads that have interactive features
I am more likely to look at ads if they have an interesting video
Receptivity to AdvertisingApple iPad Apple iPhone All Connected Device Owners
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For a copy of this deck: [email protected]
For Weather research contact:• Paul Borgese, Director of Research & Insights, The Weather Channel: [email protected]
For mobile research and insights:• Kathryn Koegel, Chief of Insights, Primary Impact: [email protected]
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• Please type your questions into the chat feature on the upper-right corner of your screen
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IAB Case Study Road ShowFollowed by IAB.networking events March 16 • DetroitMarch 29 • Los AngelesApril 6 • ChicagoApril 12 • DallasApril 14 • San Francisco
IAB Marketplace: Digital VideoApril 4, 2011New York
IAB Marketplace: Networks & Exchanges
May 16, 2011New York
IAB Innovation Days: The Future of Display
June 2011New York
IAB Marketplace: MobileJuly 2011New York
MIXX Conference & Expo October 3-4, 2011New York
MIXX AwardsOctober 4, 2011 New York
IAB Ad Operations SummitWinter 2011New York
webinar – 3/16/11
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