Category: Mobile Marketing

Lack of quality could drive consumers away from mobile commerce

Econsultancy, a market research and consultancy firm, has released a new report called “Mobile Commerce Compendium.” The report aims to provide comprehensive insight to the challenging mobile commerce sector. Mobile commerce is currently highly competitive due to its relative youth when compared to other sectors and the challenges that exist in this sector can often be overwhelming. While many startups and larger companies have their own perspective when it comes to what a mobile commerce platform should be, the report suggests that quality is the most important aspect of these platforms.

Consumers favor quality above all

Quality, or lack thereof, is one of the main points of criticism that exists with modern mobile commerce initiatives. Low quality services have given consumers throughout the world a poor experience when it comes to mobile commerce and has discouraged their continued participation therein. Quality can often determine whether a mobile commerce platform can be considered viable by a consumer and the report shows that consumers tend to favor platforms that offer better experiences than their competitors.

Mobile sites play a major role in consumer satisfaction

The report also shows that many consumers use their mobile devices to compare prices on particular products offered by retailers. These consumers will make an effort to find the best prices they can before making a purchase in-store. The report also shows that the load time for mobile websites factors into the quality issue that consumers have with mobile commerce. Slow-loading sites tend to annoy consumers, making them less inclined to participate in mobile commerce or make a purchase of any sort.

Report notes that mobile sites are integral to marketing

The report notes that mobile sites have become an integral part of any successful marketing campaign. With more people relying more heavily on their mobile devices for nearly every aspect of their lives, websites that are not optimized for these devices are not well received by consumers. Providing a mobile site for these consumers is also not enough to win their favor, as these sites must function properly and boast of high quality mobile commerce options.

Fiksu research data has indicated that smartphone ads are outperforming those that are more familiar.

Fiksu has now released the findings of its most recent research which have indicated that the cost per engagement of mobile marketing is ten times less expensive than paid search marketing.

This study is only the most recent evidence of how advertising over this channel is succeeding.

In fact, it shows that mobile marketing has pulled ahead of traditional advertising techniques both in affordability and effectiveness. The report, “Brand building on mobile devices: measuring the value of consumer engagement,” involved an analysis of over 2.4 billion app marketing data points from global application brand campaigns that have been implementing promotions through the Fiksu Platform. What it revealed was that compared to traditional channels of advertising, these are considerably more cost effective.

Fiksu also released a new metric for measuring the ROI of mobile marketing of brands.

As an element of its study, Fiksu brought in a brand new type of metric that was created to allow companies and brands to better understand the return on investment (ROI) of mobile marketing (the cost per mobile engagement). According to Fiksu, the central findings from this research were the following:

• The mobile marketing CPM (cost per thousand impressions) rates are the second smallest among all of the various forms of advertising – including print, broadcast and digital. The only lower rate is through social media.

• When it comes to major brands, mobile display advertising CPCs (cost per clicks) are up to 90 percent less expensive than desktop pay per click (PPC) campaigns.

• In mobile app advertising, the CPEm (cost per engagement in mobile) for mobile marketing is a tenth of the cost of a keyword click over desktop.

According to the Fisku vice president, Craig Palli, “Brands are waking up to the fact that mobile apps provide an incredible and very cost-effective canvas for marketing. But using CPM and CPC as sole measures of ROI eclipses the powerful engagement that mobile apps bring and which brand marketers seek.” When discussing this mobile marketing study, he went on to say that “Fiksu’s new CPEm metric is a far more meaningful tool for brands to use for planning and decision-making.”