In The Southeast Asian Market In 2018, These Five Major Trends Will Affect The Mobile E-commerce Marketing
2017 is a rapid year for mobile e-commerce. According to data from eMarketer, a market research company, advertising spending on mobile devices in Southeast Asia doubled between 2017 and 2021. By 2021, the total mobile advertising expenditure in the region will exceed US$2.2 billion, accounting for nearly 69% of the total e-commerce advertising expenditure. In 2017, mobile device apps in Southeast Asia are booming and are expected to continue to grow in 2018. The mobile device marketing analytics platform, AppsFlyer, revealed five major trends in the mobile e-commerce industry in Southeast Asia in 2017 and how these trends will affect 2018 marketing. 1. Investing in budgets to increase the number of non-natural App installs There are more than 2 million apps in the iOS App Store, and there are 3.5 million apps in Google Play, so the odds of accidentally discovering an app are just as small as the number of Chinese lottery tickets. Throughout Southeast Asia, non-organic installs increased by 145% from 2015 to 2017, but at the same time, natural installed capacity decreased by 11%. More and more marketers make decisions based on powerful forecasting data and analysis. Now that mobile device App marketers are increasing advertising expenditures, unnatural traffic has become the target of marketers and is no longer seen as a means to promote natural installation. It is expected that in the future, as marketers become more sophisticated in their use of data, they will increase the cost of drainage in order to increase the effectiveness of mobile marketing campaigns. 2. App user interaction is also constantly improving Most app marketers now understand that installation is just the beginning of the marketing funnel, and the ultimate goal is monetization. Now, Southeast Asian marketers are investing resources to optimize their installed metrics through App retargeting strategies and tracking different types of user activity. The use of redirected ads has increased significantly, especially on mobile devices. Now mobile marketers can use improved deep links to direct users from personalized ads to specific landing pages within the app, which is a key element for effectively bringing end users to the App. As a result, the redirected advertising conversion rate in South East Asia has doubled since 2016, and it reached 217% in 2017. In-depth measurement of user activity data after the app is installed can help marketers optimize media advertising distribution and budgeting. Data related to customer maintenance, audience segmentation, and marketing funnel analytics help them build effective retargeting engagement ads and optimize ads with high return on investment. Therefore, it is not surprising that the mobile device's App revenue has increased significantly. 3. Revenue rises, but advertising costs also increase Advertising costs in Southeast Asia, especially CPI (cost per installation), have increased by 50% year-on-year. Fortunately, marketers are doing better in terms of profitability and marketing optimization, so ARPU (average revenue per user) also increased by 60% year-on-year. It is expected ARPU revenue growth will continue until 2018. As advertisers increasingly value the monetization of advertising, they will increase input costs and create additional revenue. 4. Advertising Fraud Continues A recent report from AppsFlyer found that advertisers lost $2.2 billion to $2.6 billion in App install fraud in 2017, and that 1 out of 10 unnatural installs were fraudulent in 2017. Last year, the company also discovered a new fraudulent behavior called DeviceID Reset Fraud, which is expected to cause global losses of up to $1.1 billion to $1.3 billion. It is expected that with the increase in clicks and device fraud, Southeast Asia will have a large-scale and widely applicable basic anti-fraud tool. 5. The status of Facebook has not been challenged. Due to the huge investment in automation, Facebook's dominant position will continue to be maintained in 2018. In addition, Google’s share of App’s installed capacity increased by nearly 50% in 2017 compared to 2016. The search giant has made significant progress in downloading mobile device App components. Although Apple Search Ads only has a share of the market, its potential is very large, and it has its advantage in the area of app marketing—App Store. With more open to the market, Apple Search Ads will become a major player outside Facebook and Google. In general, Facebook and Google provide high-quality advertising and a wide audience size, but the cost is higher. Therefore, in order to optimize cost efficiency, more and more marketers may use more extensive media resources to supplement Facebook and Google. It is expected that Google will boldly turn to the new UAC (Universal App Advertising) model and succeed. As a recognized AI leader, it will gain market share.