According to AppsFlyer, the budget share devoted to mobile marketing increased in 2021 and will continue to increase in 2022 significantly.
AppsFlyer publishes a survey analyzing the state of mobile marketing in France to better understand the challenges and opportunities mobile presents this year and beyond.
Apple launched iOS 14.5 and ATT (App Tracking Transparency) for its mobile devices in April 2021, completely reshaping the landscape of mobile user privacy and data usage. They must now agree to share data relating to the monitoring of their activity with applications for advertising purposes.
This is a time of uncertainty, but also of opportunity for mobile players. And for good reason, mobile has experienced tremendous growth in recent years, especially since the start of the pandemic.
The main findings of the AppsFlyer study:
- AppsFlyer expects mobile to play a decisive role in France’s revenue growth, with 7 out of 10 businesses using mobile marketing to drive sales and revenue within two years.
- 59% of businesses report an increase in budget spent on mobile marketing and will continue to increase.
- Decision makers need support and better knowledge of mobile marketing in 2022 and beyond and only 1 in 4 marketers feel very confident in their knowledge of mobile marketing.
- Despite increased investment, many marketers still measure basic metrics.
- Less than a third of companies currently measure customer lifetime value (LTV) and only a minority measure uninstalls.
- iOS 14.5 is perceived positively by more than 80% of marketing managers, especially in SMEs, despite the difficulties it represents.
A year of opportunities…
- The increase in the share of mobile in the marketing budget
As the Covid-19 pandemic has accelerated the growth of the mobile market worldwide, the share of marketing budget devoted to it has increased dramatically in the companies surveyed. Thus, 59% of them report an increase during this period. Most strikingly, the number of companies spending three-quarters of their marketing dollars on mobile is expected to nearly quadruple over the next two years.
- Revenue Growth Set to Accelerate with Mobile Marketing Initiatives
Seven in ten businesses plan to use mobile marketing to drive revenue growth (sales or revenue) in the next two years. Which makes it one of the main levers for businesses among all potential business goals.
On the other hand, while the majority of companies currently view user acquisition and retention as the primary enablers of mobile marketing, these goals are expected to decline in importance over the next couple of years. The focus being on revenue growth, improving the customer experience, conquering new markets, among others.
…Marked by new challenges
- The lack of measurement of the value of the life cycle of customers or LTV (life time value): a missed opportunity
Of the companies surveyed, less than a third (31%) currently measure customer lifetime (LTV). Yet this LTV is critical to mobile growth, as it allows marketers to optimize revenue streams and user acquisition.
- Confidence in executing mobile marketing campaigns can still be improved
The vast majority of respondents recognize that to achieve revenue growth, they will need more support, talent and knowledge. According to the survey, only 27% of French companies are confident in their mobile marketing capabilities. This figure drops further when it comes to mobile marketing measurement specifically, with only one in five companies expressing a high level of confidence in their internal skills.
- The complexity of existing applications and the search for talent as the main challenges to overcome
The survey reveals that half of the large companies surveyed see legacy apps as a barrier to implementing mobile marketing initiatives.
The other major challenge concerns the difficulty of finding the necessary talents. This is in fact the most common challenge for SMEs: 44% of them feel in difficulty when it comes to acquiring talent. However, even large companies see it as a major obstacle. 38% of them struggle to find the right people to solve their mobile marketing challenges.
IOS 14.5 – An uneven impact
- iOS 14.5 is perceived positively despite the difficulties encountered
The release of Apple’s iOS version 14.5 in 2021 caused a lot of turmoil in the marketing ecosystem. Nevertheless, the general perception is that iOS 14.5 and its privacy changes have been good for the industry. In effect, 82% of marketers surveyed expressed a positive opinion on the impact of iOS 14.5 on their own role within their organization.
- SMBs are most affected by iOS 14.5
Only one in ten SMEs believe they were perfectly prepared for the release of iOS 14.5, despite the warning that Apple gave before its release. This highlights the difficulties faced by the vast majority of companies in overcoming these challenges.