How messaging apps like Whatsapp are changing the Mobile Marketing Landscape

Since Facebook’s $19B acquisition of Whatsapp last week there has been increased speculation about the role of messaging services in allowing brands to expand their marketing reach. Shortly after Facebook announced the deal, the Japanese online retailer, Rakuten, said that it would be buying Viber — an internet calling service similar to Skype that reports close to 300 million users — for $900M. Meanwhile, WeChat, a Chinese-based messaging service, is also said to be closing in on 300 million users and may become the next major acquisition target. 

Deals such as these signal the potential for messaging apps to evolve into platforms with continuously monetizable users. Whatsapp serves some 500 million users, mostly in emerging markets, roughly 70% of whom use the app on a daily basis. A recent report from Deloitte predicts that in 2014 an average of 50 billion messages will be delivered each day across these types of messaging services. For many brands, such numbers indicate the opportunity to reach a global audience with immediacy and precision.

For Facebook, the Whatsapp deal will help to cement the company’s involvement with messaging and voice calling. But it may also help Facebook attract interest from advertisers looking to make inroads with consumers in emerging markets. Facebook has struggled to gain traction in Asia against a lineup of competitor networks, but with the acquisition of a half billion active users there it can now focus on boosting mobile user activity in Asian markets, which may enable the company to start charging advertisers more aggressive rates without stifling demand. Plus, with the unique demographic-targeting options that Facebook offers, the company may be primed to gain a competitive advantage as a distribution platform. 

The gain in users may also allow Facebook to start bringing revenue into line with investor expectations. Since its 2012 public debut the social networking giant’s price-earnings ratio has hovered above 100, indicating a discrepancy between the company’s perceived worth and current earnings. But such an influx of users in high-interest markets may help to boost advertiser interest and earnings.  

The rise of Whatsapp and other messaging apps may also underscore a key feature of the new marketing landscape: with the explosion of smartphone and tablet usage across the globe, brands need tools that provide both precision and reach on mobile. Marketers increasingly gauge ROI in terms of the ability to reach mobile audiences with strategic timing and differentiated messaging, both of which Facebook is now better equipped to provide. OysterLabs’ AQUA – a combined mobile CRM+Analytics platform – offers such capabilities at highly competitive rates, and is a critical tool in the arsenal of any mobile marketer.

The Domino’s Pizza App

Let’s face it: picking up the phone and ordering a pizza is just too energy consuming. We want a way to order food that’s easy…and calling a restaurant is just too damn hard. Mary wrote about the On-Demand Delivery trend earlier this week - and now I share one of my favorite examples, the Domino’s Pizza app, which makes ordering effortless. 

That’s a lot of Pizza

As of January 2014, the Domino’s Pizza app has over ten million downloads with 2013 digital sales amounting to $1.3 billion. In Q3 last year, digital sales were 40% of Domino’s revenue. 

It’s just so simple. The quick process lets you choose your location, customize your order, and checkout. With the addition of “pizza profiles,” you can store your information and recent food order, which makes the process even shorter. If you’re a returning customer, you don’t need more than 30 seconds to order your food. And then there’s the Domino’s tracker, which lets you track the order through the entire delivery process. Pretty cool stuff!

Similar to Starbucks, the Domino’s app is a call-to-action for innovation across the industry. Restaurants need to see the success of the Domino’s app and adapt to the changing tide. Mobile is here; embrace it. 

Download the Domino’s App