These Are The Underlying Trends For Click-To-Install Advertising

Digital tablet, mobile phone with lens flare. Close up.
SHARE
THIS



Apps are now clearly the smartphone experience of choice for consumers, and marketing budgets are shifting into click-to-install advertising at a rate that closely matches app install rates.

The figures are revealed in Kenshoo’s mobile App Advertising Trends study, released earlier this year.

According to the researchers, “Consumers already spend more time on mobile than on desktop. Much of that time is spent on mobile apps, to the tune of 9X more time spent than on the mobile web. They argue that for marketers, being ‘in’ mobile as a marketing channel means working with, and through, mobile apps.”

KenshooMobileAdvertisingTrends

The study’s authors note the challenge this creates for marketers, “As a result, getting consumers to discover, download, install and re-engage with your mobile app has never been more important than today – and more challenging, with 86 percent of mobile apps installed and used no more than twice before being deleted.”

The data also reveals that mobile app advertising continues to increase and expand across gaming to ecommerce and consumer apps.

Among the findings of the research;

  • Volume of app installs has been keeping steady with growth of category ad spend over the past six months, resulting in a relatively stable Cost Per Install (CPI).
  • Impressions, clicks and app installs all cost more on iOS than Android.
  • Android users are more likely to click on a mobile app ad, but once they click, iOS users are more likely to install an app.
  • Gaming apps show higher per-unit prices and lower engagement than Consumer or eCommerce apps, which seems consistent with having a longer history of growth and competition in the mobile space

On cost, the data indicates that paid social spend for mobile app advertisers showed steady growth over the second half of 2014, peaking in November and ending the year 234 percent higher than January.  Now contrast that with the cost of a mobile app install, which only rose 19 percent between January and December.

The second half of the year provided far more stability than the first in terms of cost per install, but actual costs differed significantly between Android and iOS environments.

“For the year, Android devices had a CPI less than half of their iOS counterparts, which could indicate either greater competition, perceived value, or just a price premium on Apple devices. Across app types, Gaming carried the highest unit costs.”

There is also significant regional variation in CPC per country. Not surprisingly, the US, where demand is highest, records an average CPC significantly higher than other markets like the UK, Canada and Australia.

For example the US CPC is over 70 cents, while in Australia the figure is less than 20 cents.

Recommendations

The authors note, “It is clear from the data that growth and increased competition are the reality of the mobile channel. App advertising spend, CPM, and CPC are all increasing over time, while the steady decrease in Click-through Rate is evidence of the greater competition for mobile app ad views and interactions.”

However, it is worth remembering that the dramatic increase in click to install ratios this year ensured that the overall CPI remained relatively stable.

“Our advice is that marketers should continue to increase spend while the trend toward steady CPIs continues, as long as they are able to maintain ROI above critical thresholds. Furthermore, ensure you are measuring post-install conversions and other in-app actions, measuring across all key performance indicators and understanding user lifetime value (LTV).”

Better targeting by both publisher side and the advertiser side is the likely reason why click to install rates are increasing.

According to the report, “Such targeting will be critical for advertisers to continue to enjoy stable CPIs as competition continues to heat up. Continue to hone your targeting to get as granular as possible and to ensure you are segmenting your custom audiences well, like ‘VIP depositors over the last 60 days’ while leveraging expanded reach through Lookalike audiences. With lookalikes, it’s critical to use a strategy of nesting targeted and excluded lookalike audiences by similarity thresholds, so that there are no overlapping lookalike audiences and they are as granular as possible.”

The study concludes that advertisers should target separately by OS, Android versus iOS, to optimize toward differences in CPC, CPI, CTR and install rates on the two platforms.

“Target your campaigns separately at a minimum by language, breaking US out from other English-speaking countries. Better yet, target each country separately to ensure you are maximizing your bids and budget most effectively in the face of country-level differences.”

Latest News

Arq Group Activates New Branding By Hulsbosch  
  • Media

Arq Group Activates New Branding By Hulsbosch  

Arq Group has launched a new identity created by award-winning agency Hulsbosch, with the business rebranding from Melbourne IT to Arq. Previously known as Melbourne IT, the company was founded in 1996 as one of Melbourne University’s commercial ventures with the sole rights to manage .au domains in the early days of the Internet. Melbourne IT […]

Adshel Unveils ANZ Takeover Via PHD
  • Campaigns
  • Media

Adshel Unveils ANZ Takeover Via PHD

ANZ, in partnership with PHD and Adshel, have taken to the streets with a total take-over of the entire Adshel Live network. For one hour, between 8am and 9am on Tuesday 19 June, ANZ is inviting commuters to download the new ANZ app by showing six different ways the app can help them manage their […]

Carat & Initiative Share The Spoils In WA Government’s $65 Million Media Business
  • Media

Carat & Initiative Share The Spoils In WA Government’s $65 Million Media Business

IPG’s Initiative and Dentsu’s Carat have both been awarded a slice of the West Australian government’s $65 million spend. The government account is broken into two entities – campaign and non-campaign – each with its own agency roster. Carat has retained its long-standing position on the agency panel for all campaign work, which accounts for […]

A Golden Opportunity! Lucky Numbers For Sale!
  • Marketing

A Golden Opportunity! Lucky Numbers For Sale!

In case you missed it last week, a very lucky phone number – 1800 80 80 80 – is up for sale. And it could be yours!

Partner Content

by Customer Connect

The AppNexus Marketplace Launches Guaranteed Views
  • Technology

The AppNexus Marketplace Launches Guaranteed Views

AppNexus, the world’s leading independent advertising technology company, today announced the launch of Guaranteed Views, a marketplace product that changes the way advertising is bought and sold on the open internet. Guaranteed Views enables marketers and agencies to pay only for ads that are measured as viewable and is the first programmatic product that enables 100% viewable buying at scale outside of Facebook and Google.

Women In Media Profile: Kirsty Bloore
  • Media

Women In Media Profile: Kirsty Bloore

Bereft of any Monday motivation? Let today's Women in Media profile be like low-current electric waves to the brain.

by B&T Magazine

B&T Magazine
Dentsu Aegis Network Predicts Australian Ad Spend Growth Of 2.8%
  • Marketing

Dentsu Aegis Network Predicts Australian Ad Spend Growth Of 2.8%

• Ad spend in Australia forecast to grow by 2.8% in 2018 , with main drivers of growth in Government, Retail, Finance and Gambling sectors. • Global advertising spend to grow by 3.9%, revised up from 3.6% in January 2018. • Digital to overtake TV for the first time, to reach 38.4% of global share (TV 35.5%). In 21 out of the 59 markets tracked, digital will be the leading advertising channel in 2018. • One quarter (25.2%) of global ad spend will be delivered through mobile devices for the first time.

Pac Mags Appoints New Client Strategy Director For Victoria
  • Media

Pac Mags Appoints New Client Strategy Director For Victoria

Seven West Media’s Pacific Magazines has announced the appointment of Emma Baston as client strategy director for Victoria. Baston has worked in senior digital media buying and planning roles at various agencies including UM Australia, Cummins&Partners and MindShare, with exposure across the strategy, communications and creative process. She has also worked at Facebook in a […]

Seamless pattern of a crowd of many different people profile heads. Vector background.
  • Media

SBS Launches Diverse Communities Content Initiative

SBS has launched the Short-Form Content Initiative, a commitment to providing increased opportunities for Australian creatives from diverse communities through the commissioning and production of content for SBS On Demand. SBS has partnered with five of Australia’s screen agencies, including Film Victoria, Create NSW, Screen Queensland, Screenwest and South Australian Film Corporation. The initiative aims […]

BIG W Unveils Toy Mania Via M&C Saatchi
  • Campaigns

BIG W Unveils Toy Mania Via M&C Saatchi

BIG W, the home for families, fun and entertainment, has today launched its annual toy sale campaign – Toy Mania. Running until 11 July, the campaign showcases the frenzy and hysteria that comes with the BIG W toy sale. It also highlights that buying toys can be just as fun as playing with them and […]

Datorama Launches AI-Supported Data Visualisation Tool ‘Data Canvas’
  • Technology

Datorama Launches AI-Supported Data Visualisation Tool ‘Data Canvas’

Datorama, a global technology company, today announced the launch of Data Canvas, a suite of new data visualisation capabilities within its Marketing Intelligence platform. Datorama Data Canvas leverages the power of artificial intelligence (AI) in a brand new way — to help marketers create expert-designed dashboards to tell compelling, data-driven stories. Datorama’s previous AI releases have […]

Who’s Looking The Goods At Cannes Lions 2018
  • Opinion

Who’s Looking The Goods At Cannes Lions 2018

In this opinion, Fjord lead Bronwyn van der Merwe (pictured below) discusses the work to look out for at Cannes Lions 2018. I fully expect there will be some staggering examples of creative brilliance at Cannes Lions this year, and I’d recommend anyone going resists having their attention pulled by projects that are largely based on […]

Opinion

by B&T Magazine

B&T Magazine
We Are Social Acquires Socialize
  • Media

We Are Social Acquires Socialize

We Are Social has acquired Socialize; however, it will not be renamed We Are Socialize or even Margaret for that matter.

Global Marketing Player adm Appoints Country Manager For Australia & NZ
  • Marketing

Global Marketing Player adm Appoints Country Manager For Australia & NZ

International marketing services business adm Group Ltd has appointed Matt Cave as its country lead for Australia and New Zealand. Cave (pictured above) has more than 25 years of industry experience in the Asia-Pacific region, and will be instrumental in driving adm’s expansion throughout Australia and New Zealand. With 26 offices in 19 countries around […]

Weploy CMO Ben Eatwell: “We Want To Help Businesses Challenge The Status Quo”
  • Media
  • Technology

Weploy CMO Ben Eatwell: “We Want To Help Businesses Challenge The Status Quo”

Weploy began with a shared realisation between two friends that recruiting quality staff had become too complicated and it was high-time so declutter the process. Based in Melbourne, the start-up combines Tinder-style online skills-matching with Australian job market, and in doing so, rids eager employers of the strenuous – and at times incredibly uncomfortable – […]

Nielsen Acquires Sydney-Based Media Analysis Business Landsberry & James
  • Marketing

Nielsen Acquires Sydney-Based Media Analysis Business Landsberry & James

Nielsen has announced it has acquired Landsberry & James (L&J), a leading media analysis and software company based in Sydney, Australia. L&J designs, develops and markets software across the entire media analytics, planning, buying and post analysis process for television, digital, radio, advertising expenditure and advertising creatives. Nielsen’s investment in L&J enables an unparalleled and powerful […]

Pac Mags’ Home Beautiful Partners With Harvey Norman To Launch ‘Cooks Co-Op’
  • Marketing
  • Media

Pac Mags’ Home Beautiful Partners With Harvey Norman To Launch ‘Cooks Co-Op’

Home Beautiful and Harvey Norman have partnered on a new content series which will transform a quintessential Aussie shed into a field-to-fork restaurant whilst showcasing culinary local heroes. In 2012, Martin Boetz (pictured above, right) – the chef behind the cult following of Longrain during his 13-year stint – escaped the bustle of the big smoke […]