2020 was the year of app tracking at Awin. Compared to 2019 performance, the numbers told their own story of success - 6x more in advertiser revenue, 1.7x more in publisher commission and 1.5x more integrated advertisers who exceeded 1,000 tracked app sales.
Awin’s earliest adopters have achieved up to 80% higher conversion rates and AOVs 3x higher than their standard program. Now it is time for the remaining advertisers to ride this wave of momentum and success. With 2021 here, it’s worth considering the factors that can fuel this growth in the coming months.
Privacy can propel performance
Privacy changes will shift the focus towards the performance marketing channel and further amplify momentum. The digital world is becoming progressively more privacy conscious as governments and individuals recognize the value of their data. With this recognition, we’re seeing tech giants compete on privacy and, consequently, online marketing is getting caught in the crossfire through initiatives and legislation like GDPR, Safari’s Intelligent Tracking Prevention and Apple’s ‘AppTrackingTransparency’ framework (namely SKAdNetwork.)
Performance marketing has always operated with minimal personally identifiable information (PII) and, as such, finds itself in a much stronger position relative to other channels. This isn’t to say we’re immune to these changes since cookie-based tracking is becoming more restricted across Safari, Chrome and Firefox, but the channel is better positioned to adapt to these changes because our needs are inherently data-light and we can continue to function on very little data.
Furthermore, app tracking in the channel is, in essence, the same deterministic server-to-server tracking used on the web, which makes it far less prone to tracking inaccuracies and disruption.
While some online marketing models likely face tumultuous changes, these obstacles will bring more opportunity to the performance channel, making its data-light and innovative approach even more attractive to brands and publishers.
Robust tracking will reap rewards for brands
The number of connected devices per person has consistently increased - going from 1.84 in 2010 to 6.58 in 2020. With more connected devices than ever before and increasing privacy restrictions, reporting will become progressively less accurate for marketers who don’t adapt their tracking to incorporate not just first-party-cookie tracking, but also server-to-server, cross-device and, of course, app tracking. We can expect a continued rise in the number of connected devices per person, which will place more emphasis on robust tracking methods to ensure effective campaigns.
With smartphone and app usage increasing, it’s crucial to ensure advertiser programs have optimal tracking in place to capture this activity. People spend approximately four hours a day on their smartphone, over 80% of which is spent on apps. Apps are therefore an increasingly essential part of the omnichannel experience and, providing you have proper tracking, reporting in 2021 will reflect this.
Global adoption can drive regional implementation
In 2020 multiple Awin UK advertisers recognized the importance of having a strong smartphone strategy which, unsurprisingly, led to a recognition of the value of app tracking. The number of app-integrated UK advertiser programs was 1.8x higher than 2019, despite already being among the top regions for app tracking in 2019.
Though Awin's UK market is leading the adoption of app tracking, other regions are swiftly catching up, largely due to the early adopters commonly being global clients. Changes implemented in one region make it much easier to update and incorporate app tracking in other regions, even if demand is lower.
In light of this, Germany is not far behind when considering in-app revenue and commission rates. And when we look at the number of advertiser programs with app tracking implemented, both the Nordics and Eastern European markets at Awin have seen over 5x more adoption in 2020 than 2019.
Despite the UK alone currently accounting for over half of all app revenue on the Awin network, we expect to see other regions rapidly playing catch up in 2021.
The advent of app tracking
With over 70% of online minutes spent on smartphones, recognition of smartphones' and apps’ rising importance for all parties involved – advertisers, publishers and networks – is a must. Alongside easier integrations and a more ubiquitous understanding of the vast worth of app tracking, the affiliate channel will see record numbers of advertisers across the globe integrate app tracking onto their affiliate program.
With more and more publishers prioritizing advertisers that have app tracking through custom exposure packages, the early adopters will reap huge benefits – gaining the lion’s share of the advantages that this optimal setup can offer.
This is an evolution, not a revolution - patience is vital for networks and publishers alike while we await mass adoption of app tracking within the industry. With $120 billion spent in-app in 2020 and this figure increasing, 2021 will see app-based performance skyrocket due to the enhanced significance of a mobile-first strategy and the rising prominence of the affiliate channel.
Privacy can propel performance
Privacy changes will shift the focus towards the performance marketing channel and further amplify momentum. The digital world is becoming progressively more privacy conscious as governments and individuals recognize the value of their data. With this recognition, we’re seeing tech giants compete on privacy and, consequently, online marketing is getting caught in the crossfire through initiatives and legislation like GDPR, Safari’s Intelligent Tracking Prevention and Apple’s ‘AppTrackingTransparency’ framework (namely SKAdNetwork.)
Performance marketing has always operated with minimal personally identifiable information (PII) and, as such, finds itself in a much stronger position relative to other channels. This isn’t to say we’re immune to these changes since cookie-based tracking is becoming more restricted across Safari, Chrome and Firefox, but the channel is better positioned to adapt to these changes because our needs are inherently data-light and we can continue to function on very little data.
Furthermore, app tracking in the channel is, in essence, the same deterministic server-to-server tracking used on the web, which makes it far less prone to tracking inaccuracies and disruption.
While some online marketing models likely face tumultuous changes, these obstacles will bring more opportunity to the performance channel, making its data-light and innovative approach even more attractive to brands and publishers.
Robust tracking will reap rewards for brands
The number of connected devices per person has consistently increased - going from 1.84 in 2010 to 6.58 in 2020. With more connected devices than ever before and increasing privacy restrictions, reporting will become progressively less accurate for marketers who don’t adapt their tracking to incorporate not just first-party-cookie tracking, but also server-to-server, cross-device and, of course, app tracking. We can expect a continued rise in the number of connected devices per person, which will place more emphasis on robust tracking methods to ensure effective campaigns.
With smartphone and app usage increasing, it’s crucial to ensure advertiser programs have optimal tracking in place to capture this activity. People spend approximately four hours a day on their smartphone, over 80% of which is spent on apps. Apps are therefore an increasingly essential part of the omnichannel experience and, providing you have proper tracking, reporting in 2021 will reflect this.
Global adoption can drive regional implementation
In 2020 multiple Awin UK advertisers recognized the importance of having a strong smartphone strategy which, unsurprisingly, led to a recognition of the value of app tracking. The number of app-integrated UK advertiser programs was 1.8x higher than 2019, despite already being among the top regions for app tracking in 2019.
Though Awin's UK market is leading the adoption of app tracking, other regions are swiftly catching up, largely due to the early adopters commonly being global clients. Changes implemented in one region make it much easier to update and incorporate app tracking in other regions, even if demand is lower.
In light of this, Germany is not far behind when considering in-app revenue and commission rates. And when we look at the number of advertiser programs with app tracking implemented, both the Nordics and Eastern European markets at Awin have seen over 5x more adoption in 2020 than 2019.
Despite the UK alone currently accounting for over half of all app revenue on the Awin network, we expect to see other regions rapidly playing catch up in 2021.
The advent of app tracking
With over 70% of online minutes spent on smartphones, recognition of smartphones' and apps’ rising importance for all parties involved – advertisers, publishers and networks – is a must. Alongside easier integrations and a more ubiquitous understanding of the vast worth of app tracking, the affiliate channel will see record numbers of advertisers across the globe integrate app tracking onto their affiliate program.
With more and more publishers prioritizing advertisers that have app tracking through custom exposure packages, the early adopters will reap huge benefits – gaining the lion’s share of the advantages that this optimal setup can offer.
This is an evolution, not a revolution - patience is vital for networks and publishers alike while we await mass adoption of app tracking within the industry. With $120 billion spent in-app in 2020 and this figure increasing, 2021 will see app-based performance skyrocket due to the enhanced significance of a mobile-first strategy and the rising prominence of the affiliate channel.
Lyst is the largest global fashion search platform that lets you search thousands of online fashion stores at once, bringing together five million products from 12,000 of the world’s leading brands and retailers in one place.
The publisher’s app is beloved by its users, with one survey suggesting almost half would be ‘very disappointed’ if they could no longer use it - ranking it alongside the likes of Slack and Spotify for its customer value.
But with app tracking still not a default provision for advertiser affiliate programs, Lyst decided to encourage its adoption by offering partners an incentive.
Lyst would optimize partners that commission on app sales, offering favorable rankings in its algorithm across not just the app, but also the smartphone and desktop web versions of the Lyst platform.
Boohoo boasts app sales thanks to new Lyst initiative
Boohoo was one of the brands eager to take up the new initiative. A leading online retailer that makes stylish fashion accessible and fun for its followers, Boohoo worked with Awin to have app tracking enabled via its partnership with Lyst.
In May 2020, app tracking was enabled for the main Boohoo brand. It quickly became apparent that the new setup was paying dividends for both parties.
In the first seven months following the installation of app tracking, Boohoo saw its AOV increase by 17%, its conversion rate by 18%, and almost a quarter of the brand's gross merchandise value (GMV) was being driven by app-based sales.
Boohoo Man swiftly follows suit
Following Boohoo’s early success with the initiative, app tracking was launched on its male counterpart program, Boohoo Man, in June 2020.
Again, results proved positive quickly.
By the end of November, Boohoo Man’s program saw an average monthly increase in GMV of 41%, with conversion rates increasing by 13% and AOV by 7%.
Thanks to the additional exposure on site, the program’s non-app sales even saw benefits. The monthly average incremental growth of sales via the smartphone and desktop version of the Lyst site was 5%.
Nasty Gal's September launch
shows early promise
Nasty Gal, the online fashion retailer that can trace its roots back to its thrill of a vintage chase (and also part of the Boohoo group), also adopted Lyst’s app tracking initiative in September 2020.
With app tracking enabled, it too quickly saw positive results with AOV (+8%), conversion rate (+4%) and monthly average GMV (+24%) all showing gains by the end of November.
