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Fortnite World Cup Earnings - Amazon Sponsored Brands + More! | Stories of Mobile Madness - YouTube
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Hi there, I'm Hans from Tappable.
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And welcome back to
Stories of Mobile Madness.
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This week, let's look
at the latest figures
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about online retail,
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the massive growth of
e-commerce advertising spend
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and how brands are starting to make use
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of e-sports for their marketing purposes.
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But before we start, you
can really help us out
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in producing these episodes:
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just let us know what you think,
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leave your comments below
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and click like and subscribe.
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What game are we talking about
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that has 250 million players,
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offers $30 million prize
money for the World Cup
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and has 40 million players participating
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in the qualifiers?
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Oh yes, it's just 2 years
old so it can't be soccer.
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It is Fortnite.
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Fortnite sold out the 23,000 seat stadium
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throughout the World Cup weekend,
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hands down, and added another 20 million
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live stream viewers.
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They saw 16 year old Bugha taking home
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a $3 million cheque for
coming up as the winner.
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E-sports is definitely on the map.
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And when something is on the map
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at such a scale, brands
are never far behind.
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But Epic Games, and that is
the company behind Fortnite,
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seems to be reluctant to open
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the advertising floodgates at the moment.
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And why should they?
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According to TechCrunch, they estimated
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that they made $3 billion in 2018.
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In case you are wondering, that is profit,
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it is not revenue.
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So the marketing
opportunities at this moment
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do not lie with the game itself,
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but rather with the players.
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Ninja has 15 million followers on Twitch
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and 20 million subscribers on YouTube.
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He has partnered with brands such
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as Red Bull and Uber Eats.
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And he just switched
live streaming platforms
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from Twitch to Mixer after
a deal with Microsoft.
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Within less than a day
from his first stream
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500,000 people signed
up to his new channel
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and Mixer became the top
ranked free app on iOS.
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That is creating pretty decent traction.
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But not all players are like Ninja.
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That's why there are
companies such as FaZe Clan
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that pull together players
and put them in a team
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and a company structure
and pay them a salary.
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They sign sponsorship
and merchandising deals
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just like any other
sports venture would do.
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FaZe Clan jerseys for instance
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were selling at the World
Cup for $80 a piece.
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Over 60% of Fortnite players
are between 18 and 24.
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That's a huge and
coherent amount of people
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with very similar interests.
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And very much of interest
to brands worldwide.
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So expect to see a lot more
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of e-sport marketing coming up soon.
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The growth of e-commerce
is not accidental,
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it is a carefully planned strategy
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that is funded when heaps of money
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both in terms of investment
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as in terms of marketing.
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And heaps of dollars were again spent
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on e-commerce marketing during
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the second quarter of 2019.
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Advertisement spend on e-commerce
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was up a massive 40% year-on-year.
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Amazon Sponsored Brands dominated
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the growth in spending as it allows
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for brands to promote multiple products
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and drive customers directly
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to the product detail pages.
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Sponsored brands now show a 13%
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quarter-to-quarter growth
in impressions and sales,
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and that's pretty instant payback.
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The other big winner was Instagram
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who pocketed 19% of the total ad spend
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in the second quarter,
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with 45% of this revenue generated
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from Stories Ads alone.
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A year ago this was still
pretty close to zero.
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This again proves that Stories keep
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consumers interested and engaged
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and that spending your dollars on Stories
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is a healthy advertisement
investment for brands.
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Visitors stay in the same dynamic
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and immersive visual environment rather
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than being dropped into a static webpage.
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Tappable stories allow you to really focus
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on the features of your product
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and give prospects the opportunity
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to get acquainted with your brand
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and your with your products.
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Using Tappable as a landing page
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for Instagram Story Ads
is a great solution.
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Visitors stay in the same dynamic
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and immersive visual environment
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rather than being dropped
into a static webpage.
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Tappable Stories allow you to really focus
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on the features of your
product and give prospects
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the opportunity to get acquainted
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with your brand and with your products.
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Your sale is only just one tap away.
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And there simply is no better way
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to share your story with your customers.
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Online retail is changing so fast
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that it is very difficult to keep pace.
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A recent article form Econsultancy
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put the most up to date
statistics together.
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And these are the figures that struck me.
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In the US, online retail in 2019
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has grown to 16% of all retail sales.
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And smartphones are the device of choice
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for the online buyers.
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More than half of e-commerce websites
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were accessed from a smartphone.
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And 1/3 of all the sales were concluded
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from a mobile device.
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Europe is still lagging behind,
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but in the US, online grocery sales
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have really taken off.
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Online food sales grow nine times faster
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than traditional food sales.
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That said, online grocery
shopping in the US
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is still only covering about 3%
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of the total grocery market.
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So there's a lot of catching
up to do in that field.
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The power of online marketplaces
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is really starting to show now.
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Both in the US as in Europe,
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96% of online customers
buy from marketplaces.
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And in Asia this
percentage is even higher.
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And why's that?
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Because prices are cheaper,
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shipping is free or discounted
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and because there is a broader selection
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in every single product category.
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Furthermore, experts
expect Amazon to reach 50%
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of all e-commerce sales in the US
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as early as by 2021.
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But even more striking is the fact
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that now already 54% of
all US online shoppers
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visit Amazon first when
they're shopping online.
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Similarly, social media clearly becomes
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the discovery channel
for online purchases,
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55% of all online buyers confirmed
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that they purchased only after finding
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the products on social media.
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So what does this all mean for retailers?
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E-commerce will also start to grow
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in industries that so far
have been lagging behind.
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Consumers will increasingly
discover products
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on social media and will first reach out
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on leading marketplaces for specifications
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and for prices.
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And all this will be
done from mobilephones.
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Want more of these
Stories of Mobile Madness?
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Like and follow us.
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Thanks for watching and see you next week.
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