It’s a known fact that as much as 50 percent of customers at brokerage houses are “playing the market” on mobile. Estimates are that about half use tablets or smartphones to check on prices or place trades.
Now it may be time for the brokers themselves to get hip to the possibilities of promoting their services via mobile.
In a Forex Magnates post by Ron Finberg, it was noted that “despite the synergies, mobile-based advertising is rarely cited by firms as a source of lead generation.”
Finberg thinks that may be a bad gamble.
“With conversion costs estimated at 25 percent to 50 percent lower than that of regular display advertising, Forex Magnates has been hearing more talk from brokers and app developers about the potential of mobile-based advertising,” he writes.
Lead generation for this industry is different in some crucial aspects. For most advertisers, using mobile advertising to bring visitors to a website works like any other display banner. The marketer wants to get the consumer to a destination quickly, with a minimum of friction.
“Slower to adopt customized mobile advertising though have been Forex brokers,” Finberg explains. “However, during 2014, there has been an increase of firms dipping their toes into mobile campaigns.”
One recent example was IG Markets, which has been sourced to actively purchase mobile ads to target iOS users to download its trading app.
Explaining the shift in focus towards mobile advertising, Ron Brightman, CEO of Performance Revenues, operator of a performance-based mobile advertising network, cited costs as the main reason brokers are beginning to embrace it.
“In Forex there is an opportunity for brokers to advertise in mobile,” Brightman says. “Where costs of leads can be as high as $50 in affiliates or traditional display networks, it is around $10-$30 in mobile because currently there is almost no competition in this vertical.”
And it’s not just cost that should lure brokers. The quality of leads is better, too.
“Brightman notes that with mobile, the “journey to becoming a lead is longer,” meaning a user needs to click a banner to reach an iTunes or Google Play download page. They then have to decide to make the download,” explains Finberg. “After downloading, installing and opening the app, a registration should appear in the form of a popup or link. Brightman summarized the result as “more friction taking place before registration, so leads become more qualified.”
But one has to pay to play.
One current drawback of these mobile apps is the availability of deposits. Few brokers provide users the option of depositing directly from their mobile devices. In an ideal world, app users would deposit directly with their connected iTunes or Google Play account. With Google and Apple taking a 30 percent cut of a transaction, that method is unworkable.
“One solution for mobile that is emerging, are synced accounts,” Finberg says. “Once a deposit method becomes verified in a trader’s client portal page, brokers typically don’t require users to re-enter details to issue additional deposits. As a result, apps can be customized to connect with web-based client deposit pages to provide in-app funding.”
Bottom line, however, is that the marketplace for trading on mobile is in its infancy. Experts predict that baby will learn to walk — then run — very soon.