mobile website, app or both?

12
MOBILE WEBSITE, APP OR BOTH? How Channel Choices Are Made JUNE 2015 Cathy Boyle Contributors: Chris Keating, Rimma Kats, John Rambow Read this on eMarketer for iPad

Upload: hoangthuan

Post on 14-Feb-2017

233 views

Category:

Documents


2 download

TRANSCRIPT

Page 1: Mobile Website, App or Both?

MOBILE WEBSITE, APP OR BOTH?How Channel Choices Are Made

JUNE 2015

Cathy Boyle

Contributors: Chris Keating, Rimma Kats, John Rambow

Read this on eMarketer for iPad

Page 2: Mobile Website, App or Both?

MOBILE WEBSITE, APP OR BOTH?: HOW CHANNEL CHOICES ARE MADE ©2015 EMARKETER INC. ALL RIGHTS RESERVED 2

CONTENTS3 Businesses are Going Mobile—But How?

9 Conclusion

10 eMarketer Interviews

10 Related eMarketer Reports

10 Related Links

11 Editorial and Production Contributors

MOBILE WEBSITE, APP OR BOTH? HOW CHANNEL CHOICES ARE MADE

The US population is spending more time on mobile devices with every passing year, but many businesses still

struggle to decide whether they need to have a separate mobile website, an app, or both. Estimating costs as well

as benefits can be difficult to do, even for otherwise savvy online marketers.

■ Several surveys show companies are more likely to have a mobile website than a mobile app. Mobile websites typically cost less, but since they also tend to have less functionality, they can’t usually be directly compared with mobile apps. Because mobile web technology is more established, it is generally more efficient for companies to create a mobile website—typically the right development talent is already in place.

■ The costs of developing and deploying a mobile website or app depend on many factors, making it difficult to estimate average costs. Some of the variables for apps include their overall complexity and functionality, and the number of operating systems they’re being designed for. Additionally, back-end costs can add significantly to the cost and effort required for mobile projects, whether site or app.

■ The first question to answer when contemplating a mobile site or app is what the site or app is going to do for its users. Channel decisions depend on the target audience’s mobile needs, how you can use one or both channels to solve problems for those consumers and what the business objectives are. “If you start with that, the best solution should be clear,” said Mark Phillips of HotelTonight.

■ Having at least one channel is the bare minimum for nearly all companies. It’s when it comes to developing a second channel that the tough decisions and choices need to be made.

WHAT’S IN THIS REPORT? Insight on the benefits and drawbacks of developing a mobile website vs. a native app, guidance on how each might achieve specific business objectives, as well as the estimated costs for developing a reasonably full-featured app, the marginal costs of making a website mobile-friendly, and the prices businesses pay to build a mobile-only website.

% of respondents

Amount Spent to Develop/Deploy a Mobile AppAccording to Mobile Professionals* in North America,Sep 2014

$50K or less 14%

$50K-$100K 21%

$100K-$200K 17%

$200K-$500K 19%

$500K-$1+ million 18%

Don't know 11%

Note: average amount spent per app=$270K; *CIOs and mobile specialistsat companies with 501+ employeesSource: Kinvey, "CIO & Mobile Leader State of Enterprise Mobility Survey"conducted by Research Now, Nov 1, 2014190368 www.eMarketer.com

KEY STAT: According to the CIOs and mobile leaders surveyed, the average cost of developing and deploying an app was $270,000, though the actual prices vary widely, depending on business needs and many other factors.

Page 3: Mobile Website, App or Both?

MOBILE WEBSITE, APP OR BOTH?: HOW CHANNEL CHOICES ARE MADE ©2015 EMARKETER INC. ALL RIGHTS RESERVED 3

BUSINESSES ARE GOING MOBILE—BUT HOW?

With ambitious goals but finite resources, businesses

continue to grapple over which mobile channel—

mobile web or mobile app—is best able to meet key

business objectives, or even whether a presence in

both is what’s needed to succeed.

Two recent surveys of marketing professionals indicate that a larger share of businesses have deployed websites compared with mobile apps. In Q4 2014, programmatic advertising and retargeting platform provider Chango polled more than 500 brand marketers and agency executives in the US, Canada and the UK about their mobile marketing practices and found that 86% of respondents had mobile-optimized websites and 76% had a mobile app. A similar skew toward mobile web was evident in a Q3 2014 survey from the CMO Council and SAS: Of the marketing professionals worldwide who participated, 75% reported having a mobile-optimized website vs. 66% who had a mobile app.

% of respondents

Current vs. Future* Usage of Mobile Marketing TacticsAccording to Marketers Worldwide, Q3 2014

Currently use Will use in thefuture*

Geofencing 16% 35%

Mobile advertising 49% 28%

Geotargeting 40% 27%

Mobile commerce 37% 26%

Mobile search 56% 20%

Mobile barcode (QR, SnapTag) 41% 20%

Short-code SMS reply 39% 20%

Outbound SMS/MMS 53% 19%

Mobile app 66% 16%

Mobile-optimized site 75% 15%

Note: among those already leveraging mobile; *within 24 monthsSource: CMO Council and SAS, "Getting in Sync with Mobile Customers:Capitalizing on Marketing's Big Mobile Opportunity," Nov 6, 2014181837 www.eMarketer.com

But how many businesses have both? Survey results reported by Chango would suggest a significant number, considering a majority of respondents answered yes when asked about having a presence in each channel. However, within the retail sector at least, very few businesses have both. According to Sonia Nagar, senior director of mobile product strategy at RetailMeNot, “Out of the thousands of retailers we work with, a really low percentage have both a mobile app and a mobile website. And when you dig into who has both an Android and an iOS app, that number is even lower.”

Most businesses, particularly ecommerce players, continue to rank desktop websites as the most important channel for their business. Seventy-one percent of global ecommerce and digital marketers polled by Econsultancy and Adobe between February and March 2015 said their desktop website was their top priority. A mobile website was respondents’ second priority and smartphone apps ranked third. Adobe contends one reason for the focus on the desktop web, and secondly, mobile web, is because most ecommerce sales are generated via websites (mostly desktop sites) compared with apps.

% of respondents

Digital Channels Where Client-Side MarketersWorldwide Believe It Is Most Important to Provide aConsistent Customer Experience, March 2015

Desktop website71%

12%

8%

Mobile website16%

49%

18%

Smartphone apps10%

20%

38%

Tablet apps3%

17%

31%

First choice Second choice Third choice

Note: n=1,049Source: Econsultancy, "Quarterly Digital Intelligence Briefing: The Quest forMobile Excellence" in association with Adobe, April 29, 2015190567 www.eMarketer.com

However, nearly two-thirds of respondents in the poll said they planned to increase their mobile investments in 2015, which will inevitably lead to questions about how much it takes to build an effective mobile website vs. a mobile app.

Page 4: Mobile Website, App or Both?

MOBILE WEBSITE, APP OR BOTH?: HOW CHANNEL CHOICES ARE MADE ©2015 EMARKETER INC. ALL RIGHTS RESERVED 4

WEIGHING THE COSTS Estimating the average cost of developing a mobile website or app is a difficult endeavor, as costs are heavily influenced by the complexity of the site or app, the timeline for development and whether the work is done in-house or by a third party. Also, as David Goldstein, executive vice president at mobile app development studio Bottle Rocket pointed out, it’s difficult to do an “apples-to-apples comparison” between the two mobile channels because “usually, you don’t try to create the same functionality in a mobile website that you do in an app.”

Still, having even a rough estimate of how much it costs to build a presence in each channel—and how those costs compare—provides a starting point for budgeting and also for modeling the returns that would justify making a minimum, average or maximum level of investment.

The estimates that follow emphasize the costs most likely to be borne by larger corporations, and by others likely to use outside agencies for at least part of their development needs.

Mobile Apps According to Bryan Leach, CEO of the mobile shopping app Ibotta, “It’s far more expensive to build a native application [compared with a mobile website] because you have to maintain separate applications for both iOS and Android, and in some cases Windows or Amazon.”

Mikhail Damiani, CEO and founder of mobile marketing firm Big Bite, agreed that apps generally require bigger budgets. “The cost for developing an app, especially if you’re doing it across [operating systems], is going to exceed the cost of developing a web-based experience by at least a factor of two-to-one,” Damiani said in a March 2015 interview with Direct Marketing News. If development time is limited, then that can be another factor that can help make the argument against creating an app, he said.

Data from a September 2014 survey conducted by Research Now on behalf of mobile back-end-as-a-service provider Kinvey sheds some light on the cost of developing and deploying a single mobile app, although the wide range of figures provided makes it difficult to use them as benchmarks.

Research Now polled 200 chief information officers and mobile leaders in North America, all of whom worked at companies with at least 500 employees. The largest group (by a hair) said the cost to develop and deploy an app ranged from $50,000 to $100,000. Responses from the remainder of the group were near evenly split between three price buckets: $100,000 to $200,000; $200,000 to $500,000; and $500,000 to more than $1 million. The lack of a clear consensus underscores the point that a variety of factors influence development costs and, ultimately, the investment made is influenced by individual business needs and the resources used.

% of respondents

Amount Spent to Develop/Deploy a Mobile AppAccording to Mobile Professionals* in North America,Sep 2014

$50K or less 14%

$50K-$100K 21%

$100K-$200K 17%

$200K-$500K 19%

$500K-$1+ million 18%

Don't know 11%

Note: average amount spent per app=$270K; *CIOs and mobile specialistsat companies with 501+ employeesSource: Kinvey, "CIO & Mobile Leader State of Enterprise Mobility Survey"conducted by Research Now, Nov 1, 2014190368 www.eMarketer.com

Bottle Rocket’s Goldstein shed some light on what companies are likely to get at several price ranges: “Most apps of any quality are going to be $50K-plus.”

At the lower end of the scale, $50,000 or below, “you would probably get an app that would provide content or connects to some very simple external data feeds,” he said. “You would have three to four major functions in the app—it would probably be more utilitarian in design and less in the surprise-and-delight experience. For certain apps that may be OK,” particularly if it’s in the business-to-business (B2B) space.

Mike Wehrs, head of US operations and global CMO for app developer Appster, arrived at similar figures when he spoke with eMarketer about typical costs for creating an app through his company. He pegged the “low end of app pricing [at] about $40,000” and the average at “about $130,000 to $180,000.” It’s the “external interfaces [with external data] oftentimes that add a lot” to the cost of an app, he said. [Editor’s Note: Wehrs has since left Appster and is now CEO of Gravit8 Marketing.]

Page 5: Mobile Website, App or Both?

MOBILE WEBSITE, APP OR BOTH?: HOW CHANNEL CHOICES ARE MADE ©2015 EMARKETER INC. ALL RIGHTS RESERVED 5

Development costs quoted by marketing software company Marketo in its May 2015 “Definitive Guide to Mobile Marketing” are also broadly in line with the figures above. According to the report’s costs estimate, which were sourced from the iPad app developer PadGadget, a moderately complex app will cost about $35,000. A more complex app, however, will cost closer to $200,000.

Mobile Websites Mobile web development is often perceived as more efficient, but that doesn’t necessarily mean cheap. “Organizations and companies that have been around for quite some time typically have a level of competency in developing for the web, so there’s some efficiency to be gained by developing mobile web,” said Himanshu Sareen, CEO of mobile website and app development firm Icreon Tech. “That’s because the technology stack is there and you’re not necessarily looking for a new team to service your initiatives.”

Responsive web design techniques have also made tailoring content to different mobile web browsers and device screen sizes a bit easier. “Once you have a good designer, it’s not very difficult to make an attractive-looking responsive mobile website,” Ibotta’s Leach said. “But certain types of mobile websites are more complicated than others: A simple marketing landing page is very inexpensive, but doing an mcommerce site is not.”

Goldstein agreed that the “incremental cost [of a mobile website] is relatively small.” He said that with the right web designer in place, “it’s a 25% additional cost [over an existing website’s cost]—it’s not huge.”

Back-end costs are a major reason that investments can become much more significant. Responsive web design offers a front-end design solution for catering to multiple browsers and mobile device types, but it doesn’t solve the back-end problem of integrating with existing databases and other business logic or infrastructure. An October 2013 survey of IT decision-makers conducted by Forrester on behalf of mobile solutions provider Moovweb showed that more than 70% of the cost and effort spent on mobile projects was allocated to back-end integration and processing.

% of total

Activity Share of Efforts* Expended on Their MostRecent Mobile/Tablet Project According to US ITManagers, by Type, Oct 2013

Front-end coding and user interface28.7%

28.4%

APIs and middleware implementation21.7%

22.8%

Back-end infrastructure and IT19.4%

19.2%

Back-end coding19.2%

17.4%

Database updates11.0%

12.2%

IT managers using responsive web design (RWD)Total IT managers

Note: figures reflect an average of respondents' answers; read as ITmanagers using RWD expended an average of 11.0% of efforts on databaseupdates for their last mobile/tablet project; *includes time and costSource: Forrester Consulting, "Improving Enterprise Mobility: MeetingNext-Generation Demands for Development, Delivery, and Engagement"commissioned by Moovweb, Jan 2014190378 www.eMarketer.com

The back-end costs apply to mobile apps as well. For sports tickets app Gametime, that has meant staffing up its development team and dedicating resources solely to back-end projects. “We have two teams of developers working on the front end and then one bigger team working on the back. That’s what it takes,” said Brad Griffith, Gametime’s CEO.

A key takeaway: Businesses need to make a significant investment to provide a quality mobile experience, regardless of whether they choose to develop a mobile app, a mobile website, or both.

MATCHING THE CHANNEL TO BUSINESS OBJECTIVES “The critical question to ask at the outset of mobile channel development is: ‘What is this thing—this site or app—actually going to do?’” Icreon Tech’s Sareen said. Answering such a simple question forces business executives to identify their end goal, and that goal is what will steer the development plan, he explained.

Page 6: Mobile Website, App or Both?

MOBILE WEBSITE, APP OR BOTH?: HOW CHANNEL CHOICES ARE MADE ©2015 EMARKETER INC. ALL RIGHTS RESERVED 6

Another big-picture question that needs answering is, “What are the constraints?” Sareen said. To gain the most insight in this area, Sareen urges businesses to ask themselves several other pointed questions, including:

■ Do you have an in-house development team with a strong understanding of what it means to develop apps vs. mobile websites?

■ Will your team be able to support the site and app over the long term?

■ Are you willing to make an investment year over year?

Because of the different technologies and skills needed for each channel—not to mention the different marketing tactics required to promote usage of each channel—answering a smorgasbord of questions in the planning phase is critical.

After decision-makers are satisfied that mobile development is feasible, it’s important to begin thinking about which channel is best suited to achieve specific goals. Following are some examples of businesses’ goals, the preferred channel in each case and insights from select businesses on the channel choice made.

Goal: Discovery by Mobile Users Channel choice: Mobile website

■ HotelTonight: “If you’re purely trying to engage and pull people in, then mobile web is easier—it’s great for discovery,” said Mark Phillips, CMO of HotelTonight. [Editor’s Note: Phillips is no longer at HotelTonight.]

■ Bottle Rocket: With a mobile site, “you’re trying to pick up the users that don’t have your app and who find your site through search or something like that,” David Goldstein said.

■ Ibotta: “We certainly have to have a mobile website because if someone’s going to look up Ibotta.com on their phone, and [it doesn’t exist] or if it looks terrible, then that reflects poorly on us,” Bryan Leach said.

Goal: Leverage Existing Technical Resources Channel choice: Mobile website

■ Gametime: “If your business has been around awhile and you have a staff of really good web developers, you’re more likely to try mobile web because that’s what you’re good at,” Brad Griffith said. “It’s a different skill set to create Android and iOS apps. Newer companies that weren’t around for the web age don’t have a bunch of good web developers. So developing an app or website is largely a function of resources within the company and also when the company was born.”

■ RetailMeNot: “If you don’t have the engineering resources or the marketing resource to continuously maintain an app audience, forego developing an app and just focus on mobile web,” Sonia Nagar said.

Goal: Provide Unique Features for Mobile Users Channel choice: Mobile app

■ Ibotta: If you want to develop something complex, it’s best to develop an app, Leach said. “If you are looking to pull in the functionality from the device’s hardware or operating system, integrate with things in the physical world (like beacons) or link to a loyalty card, that’s hard to do unless you write native software,” Leach said. “Things that are complex are hard to do well on a mobile website.”

■ Localytics: “The companies that are succeeding with apps are the ones that understand what’s different about the user interaction and the user behavior on a mobile phone or a tablet device vs. other channels,” said Josh Todd, CMO of the app analytics firm. “They have a clear reason for having an app and they understand how the app can complement their business.”

Page 7: Mobile Website, App or Both?

MOBILE WEBSITE, APP OR BOTH?: HOW CHANNEL CHOICES ARE MADE ©2015 EMARKETER INC. ALL RIGHTS RESERVED 7

Goal: Increase Engagement with Loyal Customers Channel choice: Mobile app

■ RetailMeNot: For many retailers, “the justification for an app is all about giving their most loyal users a fast, responsive experience,” Nagar said. “And they can continuously market to those customers via push notifications and badging, so it’s a superior experience that is great for reengaging or engaging your most loyal users.”

■ Icreon Tech: “If you’re a brand with a huge, sticky audience, it’s in your best interests to develop an application, because the odds are good those consumers are going to download it,” Himanshu Sareen said. “If you’re a company that doesn’t have a large consumer base that’s very loyal to you, then you’re probably better off developing a mobile website, because you don’t want to have to put somebody through the rigors of downloading the app.”

Goal: Maximize Reach and Revenue Channel choice: Both a mobile website and app

On.com: “Our overall goal is to get as much growth as possible,” said Kevin Deegan, chief technology officer at On.com, a photos-and-chat-focused social networking site. “So the way we do that is to be available in every possible medium for users to find us. Apps are the No. 1 priority for us, but the web adds another way for people to find you through search engines, emails, blog posts, etc. So they work together to get as many people as possible to use the product.”

Fiksu: If you start with a mobile app, “it might be good enough to get you to 50% of your revenue goals the first year and you might get to 95% by refining the app [over time],” said Craig Palli, chief strategy officer at mobile marketing technology firm Fiksu. “The question then becomes, ‘Can I get more revenue attacking that last 5% in-app or is it time for me to launch a mobile website and get 10%?’ At some point in time, there is going to be more benefit expanding to mobile web than adding one more feature to the app,” Palli said.

Ultimately, what matters most is having a solution that works best for the user and the business, HotelTonight’s Phillips said. “The two channels are in a similar space doing similar things, but they satisfy different user needs.”

A best practice among businesses with both a mobile website and app is to compare the performance of one channel against the other. “You absolutely have to compare the two channels with questions like, ‘How much does it cost to drive an install vs. how much it costs to drive a visit to a mobile website?’” Phillips said. With the answer, he added, businesses can calculate the lifetime value for each set of users and that value can be used to compare the performance of each channel.

One pitfall is to forget that apps attract a business’s most loyal customers, an audience bias that will skew performance in favor of the app. The traffic that is driven to an app vs. a mobile website will be very different, according to Nagar. “Conversion rates and your reengagement rates will be a little bit higher” in apps, and that’s an important factor to keep in mind when comparing the two mobile channels, she said.

CHANNEL PROS AND CONS Successful businesses go a step further and choose their mobile channels based on more than consumers’ mobile behaviors, a cost-benefit analysis and how well each channel can meet business goals. They also study the inherent strengths and weakness of each channel before making their decision.

Following are excerpts from a series of interviews eMarketer conducted with executives from traditional and mobile-first businesses. The compilation provides insight on where each channel excels and where each falls short.

App: Strengths Control over the user experience and integration with third-party software: “The strength of the mobile application is that you [the business] have complete control of the user experience because you wrote the code that’s running,” Ibotta’s Leach said. Native app development, he added, enables the app developer to pick and choose which device capabilities can be used from within the app (the camera, GPS, audio recording, etc.) and the type and number of third-party software development kits (SDKs) and APIs to integrate, which can enable sharing app content on social networks, among other things.

Page 8: Mobile Website, App or Both?

MOBILE WEBSITE, APP OR BOTH?: HOW CHANNEL CHOICES ARE MADE ©2015 EMARKETER INC. ALL RIGHTS RESERVED 8

Speed: In addition to being able to take full advantage of smartphone functionality, apps can offer a better user experience in another way: It’s “way, way faster if you have an app that’s written in native code than if you’re using a mobile website,” Appster’s Wehrs said.

Brand presence on the user’s home screen: “An app on the home screen is a constant reminder that your brand exists, which is a great marketing tool,” RetailMeNot’s Nagar said.

Home screen messaging capabilities: “Apps have push notifications, which are an easy and customizable way to communicate what’s going on in the app,” On.com’s Deegan said. Push technology enables the app owner to send a message directly to the home screen or lock screen on a mobile device. When the user taps on the message or unlocks the device, the app opens automatically. “With mobile web, you have to rely on email, which is a much slower method of communication,” Deegan added.

Apps can function without internet connectivity: “If I’m creating a game like Clash of Clans, I want people to be able to play it on an airplane. I can’t offer users that functionality if I don’t have an app,” Leach said.

App: Weaknesses Discoverability: With more than 2.5 million apps available in the two leading app stores, the chance for a new app to be discovered organically is low. Alex Austin, CEO and co-founder of deep link technology provider Branch Metrics, contends it is near impossible. “The app store system is stifling the app ecosystem,” he said. “Access is completely restrictive, and it’s impossible to find anything. From a developer perspective, there is not much incentive to build an app when it ends up on the fourth page of the app store search results page. Something has to change to help developers have a chance [to be more easily discovered].”

Generating enough installs to gain traction is not easy and can be costly: “There is a large degree of friction in trying to persuade somebody to install an app,” HotelTonight’s Phillips said. In order to drive a high volume of downloads, advertising is critical, according to Icreon Tech’s Sareen. “There are very few apps that can gain a mass audience organically,” he said. “If you’re not thinking about an advertising budget to promote an app, then you’re risking the chance of it not reaching critical mass.”

Keeping users active is an even bigger challenge, and it’s getting harder as the number and variety of available apps increases: “Although we see higher engagement rates for certain apps, we’ve seen a drop-off in retention numbers,” said David Hoch, business analyst at Localytics. “In 2013, we saw 21% of people come back into an app three months after their first download. That number went all the way down to 12% in 2014.” The overall takeaway: “The bar for apps is continuing to get higher as the apps with engaging experiences separate themselves from all the others,” Localytics’ Todd said.

Testing and learning can take longer: “A drawback with apps, especially on iOS, is release times make it hard to push new updates, and that makes it harder to figure out what’s working and respond quickly,” Gametime’s Griffith said. “There’s a bit of tradeoff with apps: You get a better user experience, but it’s harder to adapt quickly to things we’re learning.”

Mobile Website: Strengths No gatekeeper: “The great thing about mobile websites is that they are widely available. You don’t need to take an action or download something [from an app store] in order to have the functionality available,” Nagar said. “Having a mobile website is table stakes; everybody has to have one.”

Easy to share on social sites: “Mobile website links [URLs] are easier to share between users and publish on social networks like Twitter and Facebook,” said Joe Ryan, sales director at OtherLevels, a mobile marketing automation platform provider. “You can’t really share an app in that fashion. So from the shareability and social perspective, mobile sites are better.”

Easy to find via mobile search engines: “A lot of shoppers will still go to Google when they are looking to figure out where to shop or what they want to buy,” Nagar said. As a result, retailers see really strong traffic coming through mobile web.

Mobile Website: Weaknesses Frustrating user experience: “If I need to put in passwords and do other complex things—banking, for example—mobile websites can be a frustrating experience,” Ibotta’s Leach said. “You’re constantly pinching and pulling to get into the right quadrant. Drop-down menus are also difficult because they pull up the keyboard, which takes over about half of the real estate of the phone screen.”

Page 9: Mobile Website, App or Both?

MOBILE WEBSITE, APP OR BOTH?: HOW CHANNEL CHOICES ARE MADE ©2015 EMARKETER INC. ALL RIGHTS RESERVED 9

Download speed: “The downside of mobile web is it’s always going to be slower than an app or a native experience,” Nagar said. “And there have been a number of studies that show site performance really matters, particularly in ecommerce where you want people to shop.”

No strong brand presence on the home screen: “We all bookmark websites but there’s less of a visible presence of that bookmark [on the device],” Phillips said. “With an app, the icon is a reminder and it can become a core part of your [device’s] functionality.”

With an understanding of what each channel brings to the table, decision-makers are better equipped to think strategically. Then, “it comes back to business planning,” HotelTonight’s Phillips said. Channel decisions, he added, are dependent on the target audience’s mobile needs, how you can use one or both channels to solve problems for those consumers and what the business objectives are. “If you start with that, the best solution should be clear.”

For more data and insight on how customers approach and behave when using mobile websites and apps, see eMarketer’s February 2015 report, ”Mobile Apps vs. Mobile Browsers: How Usage, Ad Spending and Mobile Commerce Sales Differ By Channel.”

CONCLUSION

Prioritizing channel development and determining

the right level of investment for each is never easy.

Similarly, the factors influencing the choice for one

business are never exactly the same for another

business. This is as true for mobile as it is for other

media channels.

At this stage of the game, having a presence in at least one channel is the bare minimum for nearly all companies. Deciding whether to expand to a second mobile channel requires a rigorous examination of the target audience’s mobile behavior and needs, the resources available to build and maintain the second channel and the ability to establish a measurable objective in order to compare the second channel to the first.

Page 10: Mobile Website, App or Both?

MOBILE WEBSITE, APP OR BOTH?: HOW CHANNEL CHOICES ARE MADE ©2015 EMARKETER INC. ALL RIGHTS RESERVED 10

EMARKETER INTERVIEWS

Mobile Web Outpaces Apps for Retail Transactions

Sonia Nagar Senior Director, Mobile Product Strategy

RetailMeNot Interview conducted on January 19, 2015

HotelTonight Sees Benefits of Mobile Apps Come into Focus

Mark Phillips CMO

HotelTonight Interview conducted on January 16, 2015

Kevin Deegan CTO

On.com Interview conducted on January 7, 2015

David Goldstein Executive Vice President

Bottle Rocket Interview conducted on April 24, 2015

Brad Griffith CEO

Gametime Interview conducted on January 16, 2015

Dave Hoch Business Analyst

Localytics Interview conducted on January 12, 2015

Bryan Leach CEO

Ibotta Interview conducted on January 15, 2015

Craig Palli Chief Strategy Officer

Fiksu Interview conducted on November 5, 2014

Joe Ryan Sales Director

OtherLevels Interview conducted on January 15, 2015

Himanshu Sareen CEO

Icreon Tech Interview conducted on January 7, 2015

Josh Todd CMO

Localytics Interview conducted on January 12, 2015

Mike Wehrs Head of US Operations and Global CMO

Appster Interview conducted on April 28, 2015

Alex Austin CEO and Co-Founder

Branch Metrics Interview conducted on September 25, 2014

RELATED EMARKETER REPORTS

Mobile Apps vs. Mobile Browsers: How Usage, Ad Spending and Mobile Commerce Sales Differ by Channel

Mobile Search Trends: Dominating SERPs While Venturing into Apps and Anticipatory Search

Mobile Commerce Deep Dive: The Products, Channels and Tactics Fueling Growth

Mobile App Marketing: 10 Tactics Used by Successful App Marketers

RELATED LINKS

Adobe

Ascend2

Chango

Chief Marketer

CMO Council

Direct Marketing News

Econsultancy

Forrester Research

Kinvey

Marketo

Moovweb

Research Now

SAS

Page 11: Mobile Website, App or Both?

MOBILE WEBSITE, APP OR BOTH?: HOW CHANNEL CHOICES ARE MADE ©2015 EMARKETER INC. ALL RIGHTS RESERVED 11

EDITORIAL AND PRODUCTION CONTRIBUTORS

Cliff Annicelli Managing Editor, ReportsAllie Smith Director of ChartsJoanne DiCamillo Senior Production ArtistStephanie Meyer Senior Production ArtistDana Hill Director of ProductionKris Oser Deputy Editorial DirectorEzra Palmer Editorial DirectorHeather Price Senior Copy EditorJohn Rambow Senior Editor

Page 12: Mobile Website, App or Both?

Coverage of a Digital WorldeMarketer data and insights address how consumers spend time and money, and what marketers are doing to reach them in today’s digital world. Get a deeper look at eMarketer coverage, including our reports, benchmarks and forecasts, and charts.

Confidence in the NumbersOur unique approach of analyzing data from multiple research sources provides our customers with the most definitive answers available about the marketplace. Learn why.

Customer StoriesThe world’s top companies across every industry look to eMarketer first for information on digital marketing, media and commerce. Read more about how our clients use eMarketer to make smarter decisions.

Your account team is here to help:Email [email protected] to submit a request for research support, or contact [email protected] or 866-345-3864 to discuss any details related to your account.

The leading research firm for marketing in a digital world.