Crowded app market still ripe with opportunity, according to new Fiksu DSP consumer survey

BOSTON, Dec. 15, 2016 -- A new consumer survey from Fiksu DSP shows these key findings about how consumers interact with apps and mobile ads:

• 87 percent of smartphone users use fewer than 10 apps per day
• 79 percent of consumers download at least one new app when they get a new device
• 77 percent are likely to delete an app if they repeatedly receive an irrelevant ad
• 84 percent of shoppers who plan to do the majority of their holiday shopping via mobile, will do so in-app

Survey results indicate that app developers and marketers must find innovative ways to stand out on a user’s phone. Engagement is at a premium: eighty-seven percent of smartphone users use fewer than 10 apps per day, and 65 percent use fewer than three apps for at least 15 minutes a day.  Google has also reported that 25 percent of installed apps are never used, further emphasizing the increasing struggle many app developers and marketers face when trying to reach consumers. With an incredible abundance of apps available, consumers are willing to download and try new apps, but also to delete apps they don’t like, adding even more competition to the already crowded app market.

“As only a few apps receive the majority of attention from users, app marketers need to improve how they find and target these high-quality users. Implementing a user acquisition strategy that is highly targeted to those who are most likely to be engaged over time will put marketers and app developers in a better position for success,” said Fiksu DSP CEO, Mel Jackson. “Finding a user’s lifetime value is just as important as having high app-install rates. It is critical now more than ever to use ad formats that both target and resonate with users most likely to use your app long-term.”

Online holiday shopping: growing opportunities for mobile app developers
Over 85 percent of survey respondents said they will do some holiday shopping online this year, with 45 percent planning on doing more than a quarter of their online shopping on mobile. Among shoppers who plan on doing at least three-quarters of their online shopping on mobile, 84 percent are likely to shop via an app. Marketers are now presented with a huge opportunity to target users that are looking for app-based shopping solutions for the holidays.

With the holidays quickly approaching and new phones and tablets sure to be on the top of many consumers' holiday lists, advertisers have a valuable opportunity to be discovered and downloaded in the weeks and months following the holidays. Survey results confirm that the activation of a new device is a pivotal moment for apps:

• 79 percent of respondents add at least one new app when they get a new phone
• 17 percent add more than five apps
• 50 percent of consumers remove apps in the transition to a new phone

What users want, where they want it: understanding user preferences to increase ad value
Survey results show millennials are the most receptive and responsive to app advertising compared to other demographics. Thirty-three percent of millennial respondents said ads were the primary reason why they downloaded a new app. Other advertising channels – such as television – prove to be effective at driving app installs among the non-millennial demographic, with 30 percent of respondents saying they downloaded a new app because they had seen an ad for it in other media.

Millennial preferences also differ when it comes to desktop versus mobile use, millennials are 26 percent more likely to click on mobile ads than non-millennials. Millennials are also using more apps longer – this age group is 32 percent more likely than non-millennials to be using at least three apps for more than 15 minutes per day. While most consumers responded that their preferred ad format is banner ads, millennials chose video as the type of ad they are most likely to interact with.

Crowded and cutthroat: standing out as ad fatigue grows
Consumers weren’t impressed with the ads they’re getting: fifty percent of respondents say the ads they see are almost never relevant to their needs and preferences, and 77 percent of respondents said they are likely to delete an app if they repeatedly receive the same irrelevant ad. Plus, with the rise of ad blocking options, advertisers need to work increasingly hard to reach the right audience with the right messages.

“Ultimately, the more consumers use ad-blocking features, the less data advertisers will have and the less personalized ads will be,” said Jackson. “Advertisers need to find new ways to target their key audiences with the right message at the right time to win those high-quality users.”

A crowded marketplace and disparate preferences has created a challenging environment for app developers and marketers. However, survey results also make it clear that consumers are reliant on smartphones, with apps playing the most prominent role, enabling brands to reach consumers in ways that resonate and earn long-term loyalty.

Download the full report here.

About Fiksu DSP
Fiksu DSP combines a massive, proprietary dataset with powerful segmentation tools to reach high-quality audiences at scale using the top RTB exchanges. Fiksu DSP has executed thousands of successful mobile campaigns to connect brands, agencies and app advertisers to audiences that spend time and money inside the apps they download. Clients include Amazon, Disney, Groupon, Coca-Cola, Electronic Arts, Dunkin’ Donuts, and Starcom. Based in Boston, MA, Fiksu is backed by Noosphere Ventures. More at fiksu.com, @Fiksu, and on the Fiksu DSP blog.

Jeremy Sacco
Director, Marketing
Fiksu DSP
[email protected]

John Costello
Senior Account Executive
Corporate Ink
[email protected]