Thursday, October 13, 2011

The Importance of Targeting Mobile App Users

Interesting analysis from Flurry regarding the mobile marketplace.  While one could argue about the datasources, the shapes of the usage curves do indicate that mobile app users are an important target to consider, especially during 7:00 am to 9:00 pm.


iOS & Android Apps: Prime-time All the Time
On broadcast television, brands seek to reach their target audiences as efficiently as possible.  For example, a brand might run a TV campaign targeting 24 – 35 year old females through prime-time shows that reach that desired audience.

Prime-time, from 7 pm to 11 pm, is widely known as the part of the day that attracts the most viewers on television.In advertising parlance, this is referred to as a “daypart.  And given its popularity, networks charge significantly more for ads aired during this time.

On radio, “drive time” is the most valuable daypart.  Online, the evening has seen an increase in relative usage with the popularity of social networks like Facebook, instant messaging like Skype and video-on-demand services like Hulu.

This report focuses on dayparting in mobile apps. Through Flurry Analytics, Flurry tracks more than 110,000 mobile apps on iOS, Android, Windows Phone, BlackBerry and J2ME. The sample used for this study assembled a bundle of popular iOS and Android apps across games, social networking, music, news, sports and communication categories.  In total, this group of apps is used by more than 15 million consumers each day.

For a point of comparison, we overlaid our mobile app daypart graph onto a chart shared by Michael Zimbalist, VP Research for the New York Times, in a guest post he authored for AdAge.  Let’s take a look at the findings.


The chart shows the percent of its own total user-base that a given medium reaches, each hour of the day, starting at 5 am. In keeping with Mr. Zimbalist’s analysis, we also limit our mobile app data set to include those 15 years of age and older. For each curve, the percent displayed on the y-axis relates to the proportion of consumers reached during a given hour on that respective medium. Note that the total audience size for each medium reached varies in terms of its own absolute number of users.

We’ve chosen to overlay Flurry’s data onto this chart to compare the shape of the curves, which indicate the relative concentration of usage during different times of the day. For reference, we shaded the hours that make up the prime-time television slot.

Our analysis shows that, compared to relative TV viewing and Internet usage, mobile app usage is higher from 6 am to 6 pm. And while the relative percent of television viewers surpasses that of mobile app users during prime-time, mobile app usage continues to climb until 9 pm, exceeding relative Internet usage throughout the prime-time window. Mobile consumers are using apps either instead of, or along-side prime-time television and the Internet. In fact, the percent of relative mobile app usage is greater than that of relative Internet usage every hour of every day.

To provide a tangible example of audience size for mobile apps, we estimate that the combined number of active iOS and Android devices in the U.S. is approximately 110 million. Taking 10 am as a daypart of mobile apps (the red curve), 30% of iOS and Android device owners, or 33 million consumers, use an application during this hour. In theory, apps are like TV shows, in that they reach specific audiences. With the eventual ability to target apps by various criteria such as age, gender, dayparts and more, advertisers can one day target a tightly defined audience that uses different applications.

To put the sheer size of the mobile application audience into perspective, consider that the American Idol finale, which airs once per season, reaches approximately 20 million viewers on that day. Mobile apps already reach more than 20 million U.S. consumers per hour, from 7 am to 11 pm. That’s already the equivalent of 17 American Idol finales each day, or more than 6,200 American Idol finales per year.

With Google recently acquiring Motorola and Apple gearing up to launch the iPhone 5 this fall, these numbers will continue to grow. Further, with companies like Amazon pushing harder into tablets with its recently announced Kindle Fire, and companies like Nokia and Microsoft partnering to stay competitive, we can easily imagine a world of mobile apps where it’s prime-time all the time.


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