AdTech News Digest | FIFA Ad Guidelines, eCommerce Highlights, and App Uninstalls Report
This week’s news digest features updated eCommerce statistics, the rules you have to follow if you plan on advertising during this year’s World Cup, what to expect from Amazon’s upcoming app store launch, and much more!
eCommerce Highlights from Mary Meeker’s 2018 Internet Trends Report
Mary Meeker, a partner at Kleiner Perkins and one of the leading figures in the world of venture capitalism, has released the 2018 Internet Trends report. Meeker devotes a large portion of the report to ecommerce and focuses on the facts that:
- eCommerce Continues to Grow – eCommerce experienced a 16% improvement in total sales when compared to last year, reaching a whopping $450 million. At the same time, ecommerce now represents 13% of all total retail sales, which includes both online and physical sources.
- Ad Revenue from eCommerce is Also on the Rise – It’s logical to think that ad revenue from ecommerce is also on the rise and Meeker’s 2018 Internet Trends report backs up that claim. Amazon’s ad revenue reached the $4 billion mark while Google saw a three-time increase in the engagement in Product Listing Ads (PLAs).
- Amazon’s eCommerce Market Share – In 2017, Amazon represented 28% of the total gross merchandise value for ecommerce, which translates to a stunning $129 billion. Moreover, 49% of surveyed consumers said that they start their searches on Amazon, 36% claimed they usually go to search engines first, and 15% attributed to other means.
- Social Media is Having a Huge Impact on eCommerce – Social media is becoming one of the best platforms to discover new products on. According to Curalate’s 2017 consumer survey, up to 55% of users bought an item they saw first on social media. Facebook is the most popular platform when it comes to product discovery, followed by Instagram and Pinterest.
Gumgum Video Ads Report
In a day and age where marketers are looking to use methods that don’t necessarily appeal to consumers, it’s important to know what the accepted industry standard will be. According to Gum Gum’s video ads report, pre-roll ads annoy consumers, but marketers are still looking to use them as a genuine advertising tool.
Image by GumGum
6-second pre-roll videos are far from perfect, but they provide a good alternative to longer ads that have skip buttons. 77% of marketers believe that they will be using the ad format in the next two years, even if there are some creative constraints to the length of the videos.
The Growth of Mobile Leads and Monetization Worldwide
Mobile ads have been a huge hit, and they show no signs of slowing down. Thanks to the introduction of modern models like in-app header bidding, mobile ads have been providing optimal yields in term of lead generation and monetization.
Larger firms like PubMatic are experiencing huge increases in impression volumes monetized, which rose 84% in the first quarter of 2018. At the same time, the implementation of programmatic direct channels offers protection against common types of fraud, reducing the risk for both consumers and advertisers.
Rules of the Game: FIFA World Cup Advertising
As the 2018 FIFA World Cup approaches, advertisers are looking to use the event to catapult their marketing efforts. However, there are many restrictions that marketers worldwide need to abide by in order to prevent any legal issues.
10 days to go ?
Make sure you don’t miss out on playing @Hyundai_Global‘s 2018 FIFA #WorldCupPredictor! Who do YOU think will win?
? https://t.co/jC09o1L9qw pic.twitter.com/PfUrx5iLtT— FIFA World Cup ? (@FIFAWorldCup) June 4, 2018
In a nutshell, the official FIFA logo and any of its symbols can only be used by companies that have registered contracts. Either FIFA or the authorized organization in your area need to approve the use of any symbols relating to the World Cup, any of its tournaments, or the association itself.
Unauthorized advertisers that make use of these symbols can face severe legal consequences and significant fines at the same time.
The Rise of Mobile Ads Fraud Technology
Mobile ads fraud has been one of the most important issues for the mobile marketing industry as a whole. Moreover, new findings by Juniper Research estimates that mobile ads fraud will cost $51 million per day, adding up to $19 billion in 2018 alone.
There are many marketing companies that are picking up the slack, creating awareness campaigns for their clients and offering refunds whenever they encounter fraud.
At the same time, although desktop detection mechanisms may not be effective in mobile, new technologies are allowing marketers to identify fraudulent patterns efficiently.
Why Uninstalls Remain a Huge Problem for Apps
Image by AppsFlyer
Everyone that has a smartphone will tell you that removing an app is a very aggressive action, which is the same reason why app developers and marketers consider uninstalls a huge problem.
The average uninstall rates stand at 28%, which means that about 3 out of 10 apps are removed after 30 days. While this may vary depending on the industry, profitable verticals such as entertainment, travel, and gaming are all above the 25% mark.
Amazon Preparing to Launch New App Store
The online retail giant is preparing to launch Marketplace Appstore, which will feature applications designed to help sellers manage their inventory and orders. The apps will be developed by Amazon and third parties using the company’s Marketplace Web Service (Amazon MWS).
The platform will be free for developers to use and join, although they currently require an application and a thorough review process.
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