App marketing trends: Firms finding success in social media and third party agencies

Oct 29, 2018 | Mobile

Companies recognize that marketing agencies and social media can extend an app’s reach and tell a company’s story, a new survey finds.

The survey from The Manifest, a business news and how-to website, found that more than one-third of companies (34%) prioritize social media marketing over app store optimization (ASO), SEO, and content marketing to attract customers to their mobile app.

The survey of 300 businesses from across the U.S. about their app marketing resources and metrics and found that:

  • Over one-third of companies (34%) use social mediato market their app, while nearly 20% of companies concentrate on app store optimization (ASO).
  • Nearly a quarter of businesses (24%) value ratings and reviewsfrom app users to improve ASO, although experts believe this may not be the most important factor.
  • Surprisingly, only 11% of companies think revenue per user is the most important metric. Instead, 34% of businesses consider daily active users as the most valuable metric to measure.
  • Over one-third of companies (38%) believe 26-50% user return marks a successful retention rate. This data confirms the average app retention rate.
  • More than 50% of all companies pay for both search and social media ads. Larger companies are more likely to pay for online ads.
  • Over 65% of companies say they use either a mobile app marketing agencyor a digital marketing agency to optimize their marketing campaigns.

Social media offers extensive reach, an ability to target users, and low costs, which makes it an appealing marketing channel for businesses.

Businesses need to create content that’s tailored to their app’s audience on social media, though.

“Social media should not be treated like an echo chamber; it’s about telling a story,” said Joshua Davidson, CEO and founder of Chop Dawg, an app development company for startups in Philadelphia.

Most Companies Find Success Using Third Party Marketing Agencies

Over 90% of companies use a third-party resource to help market their app. The preferred outside resource is a mobile app marketing agency (66%) or a digital marketing agency (65%). Another 42% of companies use an outside consultant, either instead of an app or agency, or in addition to their marketing team.

Experts point out that in-house marketing teams often do not have experience or connections to launch a successful, long-term, marketing campaign. Third-party agencies and consultants can help.

Businesses Value App Store Optimization

Nearly 20% of businesses concentrate their marketing efforts on ASO, or the process of improving the visibility of a mobile app in an app store. Since 63% of apps are found through app store searches, companies recognize the importance of ranking high on a search results page.

About a quarter of businesses (24%) that use ASO to market their mobile app believe ratings and reviews are the most important elements for ranking high in app stores.
Ratings and reviews can provide valuable insight into how businesses should improve their app.

“Great marketing is about listening and responding [to customers],” Scott Robertson, CEO and founder of Robertson Communications, said. “If you don’t listen you can’t respond very well.”

Daily Active Users Are Most Important App Marketing Metric

Over a third of businesses (34%) believe daily active users are the most valuable mobile app marketing metric to measure.

Companies often focus on building a sizable fan base for their app before making money. Yet, companies can’t spend too long building an audience before monetizing.

“If you’re not generating revenue over a two-year period and you’re still trying to find a market fit, you need to have a pretty hard conversation with yourself to see if this is really the thing,” said Jason Curry, senior director of marketing at Mutual Mobile, a global design and innovation consulting firm.

Overall, The Manifest’s report demonstrated how marketing metrics and resources play a significant role in the financial success of an app.

The Manifest’s 2018 App Development Survey included 301 app developers and marketers from U.S. companies.

Read the full report here:

The Manifest

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