As technology continues to increase at a rapid rate, so too does the astounding popularity of mobile devices. From developing to developed countries, mobile devices have taken the world by storm because of their ease of use and convenience. In fact, according to Smart Insights, as of 2014 the number of global mobile users even surpassed those of desktop users.
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With more users on mobile devices thus comes an increase in the use of applications (or apps) tailored specifically to such formats. Studies have shown that mobile user app usage time even exceeds that of simple mobile web browsing time. In an amazing statistic from Goldman Sachs, “Americans are spending 60 percent of their online time in apps, compared with about 30 percent on desktop computers and 9 percent on the mobile web.”
As with any large social change, this shift in the way Americans gather and interpret data is creating quite the impact on business. In order to stay competitive in today’s market, companies must understand large changes in consumer behavior and adjust advertising strategies accordingly. In today’s mobile-dominated world, this adjustment revolves primarily around mobile app advertisements. In fact, according to Smart Insights, “mobile is the future, and within 3 years it will come to dominate digital ad spending.”
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One company which is trying to follow this marketing strategy is Nike. Beginning in November 2015, Nike will be sponsoring advertisements in the Weather Channel mobile app to target consumers using personalized local weather data. For example, an app user in somewhere cold like Alaska would see advertisements for Nike winter jackets and boots while an app user at the same time and same day in a warmer climate like California might see advertisements for lightweight running gear. As David Schriber (vice president for the North American marketing brand at Nike) states, “If you’re checking the weather, you probably have a question in your mind about how you can prepare for that weather.” Nike wishes to provide an answer.
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Though this seems a relatively intuitive strategy to increasing consumer traffic, Nike hopes the convenience of the ads will significantly boost sales. According to the New York Times, in the next five years Nike’s e-commerce business is anticipated to increase from $1 billion to $7 billion with great emphasis on the contribution of the mobile marketplace.
As mobile devices continue to increase in popularity due to advances in technology, businesses must adapt to the changing market accordingly. Nike—along with other businesses such as L. L. Bean, Starbucks, and State Farm— have already begun adjusting advertising strategies to meet the demands of our dynamic world. So, the next time it’s snowing here in Happy Valley—which we know happens quite a bit— check the weather on your phone, tablet, or other mobile device. Don’t be surprised if Nike is there to offer you a nice pair of cozy winter socks to keep your feet warm on your trek to class.
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Mobile application product placements and advertisement is certainly the future of marketing since technology will only further progress as well as the use of consumers cellphones. It’s not surprising that this is occurring especially because of the way companies use users online data to target an audience that correlates with their companies products. This is yet another step into progressive marketing. Sports teams as well as any other brands associated with a geographical region can benefit from this type of marketing in applications that use GPS information in order to better target their consumer pool. Social media marketing has transformed marketing collectively as we know considering certain entertainers have 50million and more member followings one these sites so every time a company pays them to market there product their directly contacting consumers from a massive platform that hasn’t been tap into ever before this new technological era. The specificity of this marketing will only progress as phone companies continue to store peoples data usage and share this with companies to further progress these actions unless some sort of legislation is implemented in the near future. I look forward to seeing which application will begin to allow this sort of advertisement from taking place within their application. As time continues technology will continue to be collected as used for the benefits of big corporation which shouldn’t surprise many since America is fueled off commercialism. I don’t necessarily like the fact that companies take this data and use it for their benefit however it’s usually part of the agreement when signing up to use the application so I understand the principle however don’t appreciate them exploiting my data usage for their benefit especially when they’re compensated enough being big businesses . I think people should consider possible legislation restricting to prevent an excessive amount of advertisements via corporations on mobile applications.
It’s not surprising that companies are beginning to work with other applications to promote advertisements. With all the data that can be collected from the apps that certain users use, it makes sense to incorporate it into advertisements. This is already seen on desktops and laptops with websites like Amazon and Ebay. These websites record your purchasing information and sell it to other companies who are interested in what your purchasing tendencies are. After buying a snowboard off Ebay, suddenly snowboarding companies will post their ads on websites you frequent. Some companies will even get access to your email address and start sending you deals on what to buy next.
Along with this new method of advertising comes problems with the user’s privacy. Perhaps a user is comfortable with companies recommending products based on their mobile data, but what happens when the data is sold to someone who has other intentions with it. As always, the more information users put out onto the internet, the greater the risk will be that someone who is untrustworthy will see it.