Mobile consumers prefer to engage with in-app rewarded ads than a social media sponsored post.
The direct-to-consumer (DTC) strategy is increasingly becoming popular among manufacturers and consumer packaged goods (CPG) brands due to its benefits. According to Shopify’s The Direct-to-Consumer guideOpens a new window , ecommerce is expected to account for 6.6% of all CPG sales, and the DTC movement accounts for 40% of the sales growth in the sector. Further, according to studies, mobile gamers provide a huge growth opportunity for D2C marketers.
Tapjoy recently surveyed over 11,000 mobile consumers to learn their attitudes toward and appetites for D2C products and services and released the Direct-to-Consumer Retail ReportOpens a new window . These respondents use mobile gaming apps at some point in the day. One key finding was that 70% of the respondents are interested in trying a new subscription product or service. It was also revealed that nearly two-thirds of consumers prefer to shop directly from a brand than through a third-party retailer. Further, 64% of the respondents are more likely to engage with a retail in-app rewarded ad than a social media sponsored post.
The study further provides a few other interesting insights into the behaviors and preferences of different consumer groups (Gen Z, millennials, parents, and high-income). These involve the most frequent ecommerce purchases, popular subscription categories, shopping and subscription behavior, and ads most likely these groups engage with. The study also offers a few insights for D2C marketers. The following are a few key insights.
Also read: 5 Tips to Quickly Shift from Traditional Sales to D2C
Consumer Preferences
Ads most likely they engage with
Both Gen Z and high-income consumers are more likely to engage with ads involving trials or new release promotions, image or video gallery of products, personalized quizzes, and customization. Millennials and parent consumers, too, are more likely to engage with ads involving trial or new release promotions and image or video gallery of products. Further, both will most likely engage with ads involving customer testimonials and product reviews.
Most frequent ecommerce purchases
All four consumer groups usually focus on purchasing clothes, footwear, jewelry and accessories, and housewares.
Most popular subscription categories
Subscription categories most popular with Gen Z, millennials, and high-income consumers are women’s clothing and accessories, beauty and hygiene, home goods and kitchenware, and food and beverage. Parents are more focused on children’s clothing instead of food and beverage. Their other choices are like that of Gen Z and millennials.
Insights for D2C marketers
When it comes to Gen Z, the majority are already heavily invested in digital customer services. Many are also actively enrolled in multiple product subscriptions. Mobile devices are their preferred means of engagement. Product loyalty is not a significant factor as most shop with multiple brands in a year. About 67% of this group shop online because of convenience, and 63% prefer to shop directly from a brand..
Gen Z consumer preferences
Source: Direct-to-Consumer Retail ReportOpens a new window
One Gen Z respondent citedOpens a new window , “I like finding out about new clothing brands that I come across in the games that I play daily.â€
For millennials, efficiency and time commitment are top priorities. Hence, convenience is a major selling point — about 90% shop online due to convenience. More consumers in this group are price-conscious than others. They also have no problem buying directly from brands they trust. Most are already D2C subscribers. They are also better retained over the long-term than Gen Z customers. About 88% shop for lifestyle or clothing products with their mobile devices.
Millennial consumer preferences
Source: Direct-to-Consumer Retail ReportOpens a new window
One respondent from this group saidOpens a new window , “I often look for retail in-app ad offers to engage with. With more stores closing, I’m interested in what new options are available and affordableâ€.
When it comes to parents, like millennials, they are driven by convenience and affordability as they prefer the ease of purchases delivered directly to their doorstep. About 79% prefer shopping online using a digital device due to convenience and home delivery. More than three-quarters already use subscription delivery services for clothing and household items. While they are price conscious, they are also opened to trying new brands and subscription services.
One of the respondents from this group cited, “Retail in-app ad offers are the best because you have so many selections. I can compare brands to see which are most affordable.â€
Regarding high-income consumers, the majority are more concerned with quality and convenience over affordability. Half of the respondents buy clothing and lifestyle products or subscriptions that reflect their personalities or have individualized results. About 63% said quality influences their decision to purchase these products.
One respondent said, “I buy a lot of clothes, so I’d rather see rewarded ad offers from clothing brands, especially if they’re offering promotions.â€
Also read: D2C Content Marketing and the Roadmap Ahead for Marketers
Consumer Behaviors
About 73% of Gen Z consumers purchase clothing or lifestyle products online or in-app 1-4 times per month. Further, 74% already use 1-4 different subscription services for these products. On the other hand, 87% of millennials have shopped for these products in the last three months. Further, only 9% do not use a subscription delivery service for these products.
Millennial consumer behavior
Source: Direct-to-Consumer Retail ReportOpens a new window
When it comes to parents, 88% have shopped for these products in the last three months. About 70% expressed interest in trying new subscription delivery services for these products. Regarding high-income consumers, 63% are interested in trying a new subscription delivery for these products. Only 10% do not use a subscription delivery service for these products.
Shopping behavior
About 82% of Gen Z have shopped for lifestyle or clothing products in the last three months. About 84% regularly shop for these products using their mobile devices. About 83% have purchased from 1-6 brands in the last six months. When it comes to millennials, 51% shopped for these products in the last three months, and 63% prefer to shop directly from the brand.
When it comes to parents, 70% have purchased from 1-4 different brands in the last six months, and 64% prefer to shop directly from a brand. About 56% spend between $50-$200 on these products each month. Regarding high-income consumers, 73% shop for these products 1-4 times a month, and 56% spend between $50-$200 on them each month.
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High income consumer shopping behavior
Source: Direct-to-Consumer Retail ReportOpens a new window
Subscription behavior
When it comes to Gen Z, 62% said they are interested in trying a new lifestyle or clothing subscription. About 64% said they keep these subscriptions active for two or more months. Regarding millennials, 83% already use 1-4 different subscription services for these products. About 67% are interested in trying a new subscription delivery for these products, and 48% keep their delivery subscriptions active for four or more months.
With respect to parents, 80% currently use between 1-4 subscription delivery services for these products. About 46% spend between $50-$150 on subscription deliveries for these products each month, and 47% keep their delivery subscriptions active for more than four months. When it comes to high-income consumers, 74% currently use between 1-4 subscription delivery services for these products. About 61% spend $100-$250+ on retail subscription deliveries a month.
Mobile Gamers Are Ready, Are You?
Looking at the responses, mobile consumers are open to purchasing new products from in-app ads. Further, they trust rewarded ads to help them discover valuable new products. Most importantly, they are interested in buying products online directly from brands, provided the latter offer convenience, affordability, and personalization. There is no doubt that mobile gaming offers a high-return growth opportunity for D2C brands. Consumers are ready; are you?
Have you explored in-app advertising? Do let us know how it impacted your ROI on FacebookOpens a new window , TwitterOpens a new window , and LinkedInOpens a new window .