Over a quarter of all digital advertising spend now comes from mobile, compared to 20% a year earlier. Ad spend on mobiles increased 51% to £1.08 billion in the first half of 2015. The actual increase of £370 million year-on-year accounts for 79% of the rise in digital ad revenues.
Social Media advertising comprises a small group of market dominant companies including Google, Facebook, Twitter and Instagram. This domination has led to a high accepted market price for a series of similar offerings. This growth has led to a rush of brands seeking new and innovative ways to reach consumers and rise above the ‘noise’ of traditional digital advertising.
Wamo is designed in part to respond to this change. Wamo is different. The Users benefit materially from the content they generate and they willingly engage with brands and their online community through the App. This more involved engagement is valuable to advertisers.
Available for either iPhones or Android phones, the Wamo App is geared to the 18-30 age demographic. Brands target these younger more cutting edge consumers.
SmartPhone Ownership, by Age: 2012 – 2015
UK Population by Age
In the UK, digital advertising revenue was £7.194 billion in 2014, up 14.2% on the previous year(4). In the first six months of 2015, UK digital advertising revenue was £3.975bn, up 13.4% on 2014(5). Digital advertising spend in the UK in 2015 is expected to have reached 50% of all advertising spend, overtaking TV advertising for the first time(6).
Industry forecasts expect 2015 mobile advertising spend in the UK to have risen by 45% and 2016 to show growth of 35% to £4.4bn, or half of all digital advertising spend(7).
Word of mouth is one of the most effective forms of advertising simply because we are more likely to trust the recommendation of someone we know. Recommendations from friends are also often more targeted due to the context in which someone you know recommends a company or product.
Social currency is an extension of word of mouth and has been defined as ‘the extent to which people share the brand or information about the brand as part of their everyday social lives at work or at home’. Companies who want to gain access to new customers or create unique brand identities value access to this social currency because of the increased credibility and targeting social currency provides. Brands seek out ‘brand advocates’, hence the frequent use of celebrity or sports personality endorsements. Billions are spent on this type of brand advocacy. However, a brand advocate who is known and trusted by the target consumer is the most valuable of all.
We all have social currency in the real world based on the number of friends we have and how respected we are. If we express an opinion about a brand, we are spending our social currency. In the Wamo App, social currency is earned by the number of followers a User has and the number and quality of their social interactions. Building up social currency ‘in App’ leads to real world rewards in terms of prizes and vouchers.
In the digital world, millions of us use social networks with billions of posts, photos and videos uploaded daily. Up to now, by using the personal information which Users freely provide when they sign up to Social Media, including their likes and dislikes, companies such as Google and Facebook have created targeted offerings for advertisers which are lucrative for the companies and desirable for the brands as the primary means of accessing online consumers.
They are also a very expensive form of marketing for brands. Despite this, the growth in digital advertising, and Social Media advertising in particular, has been extraordinary.
For the online consumer, however, this fundamental shift from direct communication with their friends and other actual members of their online community to corporate, profile based advertising is not ideal insofar as the increased ‘noise’ of brand marketing sacrifices the valued brand advocacy element of personal contact and social currency.
Over the past decade, mobile devices have become inextricably involved in the day-to-day lives of most people in the UK. From a standing start in the mid-2000s, there are now millions of Apps designed purely for mobile devices. Alongside this App explosion, the number of people who browse the internet on their mobile has increased to as much as 80% of devices with 89% of media time in mobile being spent within mobile Apps rather than the web(8).