Samsung's mistakes could also put marketers at a disadvantage
By Brielle Jaekel
October 12, 2016
Screen shot from consumer-made video of Samsung Galaxy Note 7 fire
Samsung and its marketers may see serious repercussions from mishandling its faulty Galaxy Note 7 explosion issue, after the manufacturer waited too long to recall.
Marketers have been putting more stock into Android marketing and application development, with its users spending a substantial 22 percent more time within apps. But Androids premium device is being pulled from shelves and the production line, much too late for Samsungs brand to remain unscathed, and while also in the midst of its rival - the Apple iPhone 7 - making its second-leg of shipments.
Localytics research has found that users spend a whopping 22 percent more time in apps on Samsung devices than they do on Apple devices, said Josh Todd, chief marketing officer at Localytics
. Weve also found that overall, Android users spend 31 percent more time in app than iOS users, largely because the average number of app launches per month is 17 percent more for Android users.
This sudden halt in the production of the Samsung Note 7 will be a major roadblock to app marketers running campaigns on Samsung devices trying to reach those loyal and mobile-hungry users, he said. Following the recall, those same users could look to other devices - and thus other operating systems - to satisfy their mobile needs.
Combusting marketers hopes
Samsungs explosion issue comes at a bad time for the technology manufacturer, as the holidays are approaching and the iPhone 7 starts to restock. Numerous owners of Samsungs Galaxy Note 7 have reported the phone spontaneously combusting after charging, and one even torching a family vehicle.
Jeep fire caused from Samsung Galaxy Note 7
The smartphone manufacturer was aware of the problem and issued a recall for the phone, but unfortunately it did not solve the problem. Samsungs second round of Galaxy Note 7s had the same issue and it was finally forced to halt production and forcing it to urge consumers to stop using their devices.
Samsungs tardiness to react and failure to fix the problem may have severely damaged its brand. Unfortunately with the holidays arriving soon and many consumers hoping to purchase a new smartphone for a loved one, it is likely Samsung sales will fall. Samsung's Galaxy Note 7
[Samsungs] marketers are in a tough spot with Samsung for sure, said James McNally, director of digital strategy at TDT NY
. It would be one thing if Samsung noted the problem early, then quickly and competently addressed it - that might even be a positive for the brand.
Unfortunately that wasn't the case, and Samsung will need a combination of mea culpa, it will never happen again, and probably some flashy new product or products to distract consumers sooner rather than later.
Competition ahead of holidays
The smartphone manufacturer now has added pressure on making its Galaxy S8 extremely innovative. The new smartphone no longer has to compete with just the iPhone, but now it must also fight to combat its own negative image.
In an effort to reflect consumers growing dependency on customized mobile interactions, Googles new branded smartphone, Pixel, contains a fully integrated artificial intelligence assistant alongside complete virtual reality compatibility (see more
The new Google phone can further threaten Samsung with its advanced capability.
However, the new iPhone 7 comes with significantly more storage for users and two high-powered cameras two features likely to ensure owners spend even more on their devices (see more
While most marketers have developed apps for both Android and iOS, the shopping habits of these consumers greatly differ. Marketers should keep in mind that Samsungs news may shift how the holiday marketing season should be handled.
Both Apple iPhone and Google Android smartphones have avid fans and our research shows that marketers best pay heed to how differently these fan bases need to be engaged in order to spur app downloads and in-app activity, said Jasper Radeke, director of marketing, North America at AppsFlyer
. If Samsung's issues do lead to a surge in Apple iPhone 7 purchases or phones on the markets because of trade-ins, marketers should be aware of a few key stats as we approach the holiday season.
One of our recent studies found that iOS shoppers complete most of their shopping by Cyber Monday - in fact, in-app purchase activity drops 38 percent after the peak November weekend and declines for the rest of Q4, he said. In contrast, Android shoppers tend to wait a bit more and shop last-minute - one of the major peaks for in-app purchase events on Android phones was during the week of Christmas.
As such, marketers should time their campaigns differently based on the type of device and platform theyre targeting.