Why It’s Time to Diversify Your Channel Mix with Mobile

Most of us in today's society have gotten pretty adept at skimming past content to get to the info we need, typically reading only 3.5% of the words on a webpage (we challenge you not to skim this article!). The same goes for social media scrolling and channel surfing-so much so that there are even names for doing it.

Unfortunately, that also means most advertising on these channels becomes easily 'skimmed'. Savvy advertisers are already diversifying their marketing channel mix to reduce the risk of over-reliance on certain channels, where the message can be lost, but the most successful consumer and DTC brands are diversifying to include mobile-specifically, in-app advertising. Here's why.

The Shift to Mobile-First Consumer Behavior

First, let's start with the fact that over 5 billion people-representing 69% of the world's population-have smartphones powered by a mobile subscription. This level of adoption has led to significant changes in how people spend their time online. According to MobiLoud, mobile app usage has surpassed web browsing in terms of time spent, with U.S. adults now spending nearly 90% of their mobile internet time within apps​. This reflects a growing preference for apps as consumers' preferred method of interacting with content, shopping, and socializing.

In-app advertising taps into this trend, allowing marketers to engage consumers in a more targeted and relevant manner. The shift is not just limited to social media apps; apps for shopping, fitness, finance, and entertainment are now pivotal parts of daily routines. As more of our time moves to mobile, so does revenue. Nearly 50% of online transactions, projected to top $2.52 trillion (+16% Y/Y), occurred on mobile devices this year, and there are no signs of slowing.

Social Media Saturation and the Need to Diversify

Mobile apps are ingrained in our lives, with consumers spending over four hours daily with them. They've become our shopping assistants, financial planners, personal trainers, gaming partners, and more. Comparatively, users spend about 2.5 hours per day using social platforms.

Although social continues to be an important part of any marketing mix, the advertising environment on these platforms is oversaturated and, ultimately, skimmable. Brands are competing for the same eyeballs across the same major social networks hoping to inspire high-intent consumers to action, but that message may never land because of our tendency to scroll. This leads to diminishing returns on ad spend (ROAS), illustrated by a disproportionate amount of consumer engagement relative to the ad dollars spent on social

By diversifying your channel mix beyond social, marketers can creative more touchpoints by placing offerings in front of consumers across the various apps they use daily - tapping into less crowded spaces like in-app environments.

In-App Advertising Should Be Part of Your Channel Mix

In-app advertising plays an important role in any diversified marketing strategy by amplifying marketing efforts beyond search and social where users are more engaged. The average person opens nine mobile apps daily, giving marketers additional opportunities to connect with them in less crowded environments. These environments are greenfield opportunities that continue to grow year over year, delivering consumers with higher retention and purchasing power. According to Adjust's recent Mobile App Trends Report:

• Fintech app installs and sessions grew by 42% and 24% YoY in 2023, respectively.
• In-app revenue for fintech apps grew 118% YoY in 2023.
• E-commerce app installs and sessions grew by 43% and 14% YoY, and stickiness reached 16.1%.
• There were 100 billion hours spent on shopping apps worldwide in 2023.

Advertising in apps can also increase ROI due to its precise targeting capabilities. Powered by advanced AI that targets consumer actions across a variety of apps vs. specific app environments, marketers can create highly efficient and scalable campaigns. Those campaigns can be optimized for different goals including cost per event (CPE), cost per purchase (CPP), and return on ad spend (ROAS). With AppDiscovery, you can run these campaigns with these goals simultaneously to identify the most effective campaigns and new incremental audiences to engage with.

Most in-app ad formats, like full-screen interstitial video and playable ads, deliver 100% share of voice (SOV) when they are on screen-meaning they can't be skimmed or scrolled past. The creatives are attention-grabbing on their own, and rewarded placements for playable and video ads drive even deeper interaction.

As an added benefit, in-app ads offer a level of brand safety because the full-screen formats prevent them from ever being adjacent to any risky content such as UGC or political content.

Diversifying your marketing strategy is essential for consumer brands looking to grow and engage audiences in new ways. As mobile's star ascends, now is the time to test in-app ads as part of your channel mix. Seize the moment to stand out from the competition, accelerate growth, and stop 'the skim'. (You made it to the end of this article - proud of you!)

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