These Are The Underlying Trends For Click-To-Install Advertising
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.”
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
TV Ratings (18/04/2024): I’m A Celebrity Wins Prime Time And Key Demos
Aussie viewers can be a harsh lot at times. Only days after Ellie Cole bled her heart out, she has been sent packing.
Effie&co Launches New ConnectAsia Division To Help Aussie Brands Market To Asian Consumers Overseas & At Home
Not provided is advice on using chopsticks and not spilling ramen down your shirt.
Cashrewards Sets Out Stall For New CMO
Thinking of applying for the Cashrewards CMO gig? Here are some insider tips that, yes, are tantamount to cheating.
‘I Ask For The TV Industry To Stand Up And Defend Itself’ – Seven Boss James Warburton Steps Down
The Seven supremo heads for the exits after five years. Here's hoping the Spotlight team organised the farewell bash.
Poh! Jamie! Adriano! Paramount ANZ reveals its tasty plans for this year’s MasterChef
It's your fan's guide to this year's MasterChef! Although no tips on how to pronounce crudités or use a un fait-tout.
Dentsu’s iProspect Partners With MOOD Tea Ahead Of May Campaign Launch
We love a Mood Tea here at B&T. Although we do store old screws and nails in the International Roast caterer's tin.
Opinion: When Culture Starts Eating Itself: Navigating The Age Of Self-eating Nostalgia
Born boss David Coupland asks is adland going through a nostalgia period? But please, no repeats of Best Of Red Faces.
Who’s Going To Cannes?! The TikTok Young Lions Winners!
It's Aussie adland's next gen! They're off to Cannes with high hopes of bringing back a Lion & a foot-long Toblerone.
Adobe Launches Express Mobile App With Firefly AI
Want to be the coolest kid at Friday staff drinks but forgot your retro Nikes? This new Adobe wizardry may do the trick.
ThinkNewsBrands & IMAA Extend News Publishing Education In Brisbane
Industry duo takes its publishing roadshow to Brisbane. Was disappointed no male attendees were wearing walk socks.
B&T Chats With Wavemaker’s Provocative Pioneers On Their Cross-Pacific Sojourn
B&T TV heads to Wavemaker's Sydney digs to interview two staffers from its New York & LA digs. If that makes sense?
HoMie & Champion Launch “Give One. Get One” Campaign Supporting Youth Homelessness Via Town Square
Much like the fête's prized chutney wears a blue winners sash, so too should this top initiative from HoMie & Champion.
Thinkerbell Takes Us Back To Summer In Latest Work For XXXX
This beer ad wants to take you back to summer! Just minus any chance of a shark attack on your morning bus commute.
Cannes Lions Unveils 2024 Programme Featuring Queen Latifah, Jay Shetty & P&G’s Mark Pritchard
Are you one of the lucky ducks heading to Cannes in June? Check out the headliner acts you'll be queueing hours to see.
Scroll Media Recruits Costa Panagos From Twitch
Costa Panagos set to bring South American flair to the Scroll offices. Assuming that he is, indeed, South American.
Year13, Microsoft & KPMG Australia Launch AI Course For Gen Zs
Born around the 2000s? Need to amp up your AI creds? This guide's for you (although it's not really that age specific).
General Motors Snares Heath Walker From Scania
Do you rage about oversized American cars on our roads? You need to bail up Heath Walker at parties & industry events.
VML Launches New “Envoyage” Brand For Flight Centre
VML unveils new brand for travel operator Flight Centre. Alas, no sign of those paid actors pretending to be pilots.
Subaru Places Media Account Up For Review
Subaru puts media up for review, as adland journos get set for mandatory "agency drives off with..." headline.
TV Ratings (17/04/2024): Contestants Faced With Harsh Realities As Alone Australia Heats Up (Or Cools Down)
Alone still doing the business for SBS. Overly long train journeys not doing the business, but they persist anyway.
Ben Fordham Loses Number One Spot As Ray Hadley Celebrates 156th Ratings Win
The radio numbers are in! Discover who's off for a boozy lunch today & who's waiting for the dreaded HR death knock.
Gourmet Ice Cream Brand Connoisseur Launches New “Thrill Your Senses” Iteration, Via SICKDOGWOLFMAN
Rattling the old "truth in advertising" adage comes this ice-cream spot full of noticeably thin people.
Paramount’s Global Sales Boss: ‘Australia’s Converged Model Is A Blueprint For How I’d Like All Of Our Markets To Be’
Paramount's global sales boss gives local sales ops the thumbs up. Didn't weigh-in on the Lisa Wilkinson debacle.
TikTok Starts Testing Its Instagram Rival In Australia
In exciting news for piano playing cats & brattish pranks in shopping centres, TikTok unveils its Insta rival plans.
Man Wrongly Named By Seven As Bondi Killer Hires Lawyers
Struggling to save for a house deposit? Why not get wrongly identified by Sunrise!
Smartsheet Appoints Indie Agency Sandbox Media To Its Media Account
Can't stand your colleagues? Like to dob them in when they miss a deadline? These work management platforms are ideal.
Boss Not Letting You Come To Cannes In Cairns? Use This Business Case To Convince Them!
Stingy boss won't spring for a ticket to Cairns? Add this to your persuasive argument repertoire. Or grovel.
Alt/shift/ Brisbane Builds Portfolio With Ausbuild Creative, PR, Content & Social Account Win
The Brisbane comms/PR agency lands constructor Ausbuild. Also hoping for a discount on its new glass conservatory.
Young Guns Versus The Old Guard: Who Adds More Value to Our Industry?
Cannes In Cairns poking this hornet's nest in a lively debate. Just so long as the oldies can get up the stairs.
70% Of Aussies Don’t Have Green Power Plans ENGIE Says In Major Brand Campaign Via HERO
Are you the notorious "light leaver on-er" in your flatshare? Quell any infighting with this green energy news.
PrettyGood Launches Offering Brand & Media Solutions For Australasian SMEs
B&T applauds the charitable nature of this new agency. Although we'd hate to see it impact any Chrissie present sends.
A Blunt End: Dolphins Medicinal Cannabis Sponsorship At Risk
Yes, it's another NRL drug story. Yet, thankfully it doesn't involve coke in Kuta during the off-season.
Slew Of New Creative Hires At Leo Burnett Australia
Ahhh, all black! The outfit of choice for agency creatives, David Jones staff and everyone in Melbourne.
Under Armour Unveils Local “Live in UA” Campaign
American apparel brand set for yet another tilt at the Aussie market, as Nike declares "we'll see about that".
Pepsi Launches New Look, Refreshing Classic Fashion Staples Via Special PR
Are you always the bridesmaid, never the bride, as the old saying goes? How do you think Pepsi feels?
Pure Blonde Returns To A Place Purer Than Yours In New Campaign Via The Monkeys
B&T's always been a huge fan of the 'drink yourself thinner' diet plan. So big thanks to Pure blonde, vodka & tequila.