Fortnite World Cup Earnings – Amazon Sponsored Brands + More! | Stories of Mobile Madness

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

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