For consumers, the holidays mean festive celebrations, time spent with family and friends and lots of shopping. But for app publishers, it’s a critical time of year that requires preparation and strategy. What should publishers do to prepare for the demand for e-commerce? We’ve rounded up some tips and ideas on how to boost holiday cheer — and income — this holiday season.
Digital Turbine spoke to Faye Lee, director of account management at Pangle, to learn more about e-commerce demand and how it’s helping to diversify publisher demand, boost fourth-quarter revenue during key purchase dates for consumers and deliver high-value ads for app developers. Faye shares key steps for publishers to prepare for increased e-commerce ad spend.
What is the demand for e-commerce? How does this differ from brand and performance demand??
E-commerce demand is specific to advertisers who drive attention to their products in an effort to drive a sales conversion. Some e-commerce advertisers will run ads with a coupon code to drive conversions within the ad itself.
Brand demand comes from advertisers making their product, brand or service known to users. Brand campaigns help shape consumer perceptions about that product, brand, or service with the end goal of driving user engagement with that advertiser’s website, app, and social channels over time. as users progress through the product, service and brand discovery process.
Performance on-demand advertisers measure the success of campaigns with quantifiable metrics around user behavior, such as clicks, downloads, purchases, app events, and more. Their objectives are more directly related to these KPIs compared to qualitative measures. Advertisers measure ROI based on these metrics and can usually attribute campaign success to certain tactics or creatives.
What are typical patterns of e-commerce demand throughout the year? Seasonality?
Most publishers are already familiar with Western seasonal trends like Valentine’s Day, Mother’s Day, Father’s Day, Back to School, the highly anticipated Black Friday, as well as the overall traffic spike during the October holidays. to December. Thinking globally on a regional scale, there is so much more to celebrate with increased demand for e-commerce outside of the holidays of English-speaking countries.
Globalization has merged major e-commerce sales dates, so Black Friday is also the kickoff of major holiday gift spending, falling just after the Thanksgiving holiday in the United States. In 2021, Pangle LATAM revenue grew 8x on Black Friday alone.
In APAC and MENA, similar trends are observed. Instead of Black Friday following Thanksgiving in the United States, these regions have two major sales days in the fourth quarter! APAC advertisers see peak traffic on November 11 and December 12. The SEA and Middle East/North Africa (MENA) regions have also experienced phenomenal growth over the past year. Pangle’s revenue in the MENA region increased 6x on November 11, while SEA increased 4x on December 12. As a publisher, these two big sales days are a must to formulate your fourth quarter ad monetization strategies for APAC and MENA.
Why is it important to include e-commerce demand in an app developer’s ad stack?
The diversity of ads counts! Without diversity in ads, ad fatigue sets in and they will lose effectiveness with less relevance and engagement. Ad fatigue results in poor campaign performance for advertisers – eCPMs will decrease, reflecting poor campaign performance. Changing the ad experience by including different advertisers in your request stack helps maintain ad effectiveness, optimize campaign performance for advertisers, and maximize your revenue potential with high eCPMs.
How is e-commerce performance for in-app mobile compared to branded ads or performance?
E-commerce demand is most sensitive to Q4 holiday seasonalities – more so than performance demand. Shopping season is when consumers open their wallets to spend on loved ones. E-commerce advertisers understand this behavior and spend a substantial portion of their annual marketing budget during shopping season to maximize their share of the consumer’s wallet spend.
As a publisher, tailoring your ad monetization strategy to the local market will help you maximize your revenue during this lucrative season. LATAM countries have a huge appetite for e-commerce demand in the fourth quarter. Both APAC and SEA regions have two Black Fridays (November 11 and December 12), with December being the larger of the two. The MENA region has two Black Fridays, with November 11 being the most dominant shopping date compared to the late November Black Friday. Know your users and adjust your in-app content and ad monetization strategy accordingly.
Is there a dedicated design template for shopping season?
Having run successful creatives for e-commerce advertisers during mega sale dates in the past, we’ve seen common creative attributes that increase the success of these campaigns.
Clear and interesting call to action
Highlight the date of the mega sale
Refined image/video to capture attention from the start
Pangle also has ready-to-use templates for e-commerce advertisers to work at scale to drive your traffic with formulas that work to convert.
What should publishers do to prepare for e-commerce spending?
Here are the key steps you can follow:
1. Identify key dates. Adjust your ad monetization strategy based on the location of your users. LATAM Black Friday is November 25, while APAC regions like SEA will see peak traffic on December 12.
2. Increase the number of users in the target region. Acquire more users in this target region to maximize the anticipated increase in advertiser spend.
3. Launch different ad formats. Maximize your ad revenue by implementing different ad formats – Pangle supports banners, interstitials, rewarded videos, native ads, and open app ads. We’ve seen publishers experiment with ad formats they’ve always turned down and found success, especially during holiday sales periods, with more e-commerce spend going through these formats.
4. Optimize to show rates. Do you have frequency limits? You may want to experiment with reducing or removing these caps in Q4 to maximize vacation ad revenue. DT FairBid also has a multiple test tool that will allow you to experiment with different ad frequencies and pacing rules to find the best balance for your application.
About Faye Lee, Director of Account Management at Pangle
Faye enjoys helping publishers/developers generate more revenue and retain users through ad monetization. She is the Director of Account Management, responsible for helping North American and Latin American publishers maximize ad monetization at Pangle. Prior to her role at Pangle, she led the North American developer relations team at Tapjoy.