Are You Making The Most Of Mobile App Installs?
Australian marketers might like to keep a sharp eye on mobile advertising trends in the US right now. This year it is estimated the mobile ad spending will constitute a majority of the digital ad spend after a strong, nearly 60 per cent growth over the last 12 months.
With Australia already the third largest recipient of targeted ad spend as measured across the Kenshoo network (behind the US and the UK), what is true on one side of the pond will likely prove true here.
In Kenshoo’s Q2 Mobile App Advertising Trends report, the authors note, “For consumers, the mobile and app experience is a highly personal one. Mobile devices represent a curated individual world: Which apps do we install, and which ones grab our attention and become embedded? Whose content do we invite into our lives, and whose do we block?”
For marketers, they say, the challenge comes from getting consumers to discover, download, install and ultimately, to buy-in to the experience. And, importantly to continue to engage beyond that first moment.
Among the specific highlights of the report;
- Advertising spend by mobile app developers has almost quadrupled year-on-year (YOY).
- The growth of app installs has outpaced spend, increasing +346 per cent since Q2 of 2014.
- While click-through rate is down YOY, the click-to-install rate has increased +32 per cent.
- While the cost per click for mobile app install ads has increased YOY and the CPM has been flat, the cost per app install has dropped 12 per cent, which will become more relevant as Facebook changes bidding models to consider conversions over reach or clicks.
- The gap in cost per install between iOS and Android devices has narrowed considerably in 2015 as more developers enter the market, implying that there is less of a premium on iOS users than there has been in the past.
- Mobile app advertising is booming according to the data and is driving much of the growth seen in social advertising.
As the study notes, “With the increasing attention on mobile app marketing via social media, it is not surprising that the industry has seen considerable growth. The combination of new entrants to the space, and increasing budgets have driven overall spending up nearly 4 times what it was one year ago. “
Overall paid social growth across all advertiser types (including, but not limited to mobile app advertisers) for Q2 this year was up 114 percent compared to a year ago.
Furthermore the data reveals that in Q2 2015, there were twice as many app titles as a year ago. With so much additional activity it is not surprising that the floor has remained solid under the CPM price. On a per thousand impression basis, the cost of mobile app advertisements on paid social media is down just one percent from Q2 of the previous year and has retreated from its peak in Q4.
And there is an interesting trend for marketers to watch – an evolution in pricing models. The signs are that social channel is moving towards bidding based on conversions rather than reach or clicks.
Highly efficient
Mobile apps are also delivering strong efficiency on the path to conversion.
According to the authors, “Once a user has clicked on a social ad for a mobile app, just under 1 in 3 of those clicks turn into an actual app install. Android and iOS have similar results in three of the five quarters described by the index, with Android holding the overall edge based on the other two quarters, which may have seen specifically compelling Android titles.”
The report notes that the wider appeal of consumer apps may drive the higher CTR than gaming and other app types however click to install rates for gaming apps are higher than for consumer apps, implying that the broad appeal of consumer apps gives way to higher intent for gaming.
In their conclusion the authors write, “The growth of mobile app advertising spend speaks to both an increase in the number of advertisers and increased spending from those advertisers. This puts pressure on the agile marketer to respond to both competition and scalability, while still being able to quickly engage with the mobile audience.”
And they say , “The switch from reach- or click-based bidding to algorithms that are based on conversions (installs) reflects all of these dimensions, and should encourage continued investment as marketers become better equipped to draw a more direct line from their investment to the value of, and flowing from, the apps themselves.”
What to do next
To meet the challenge of rising costs and increased competition the report offers several strategies.
This includes, for instance, creating nested lookalikes and testing match types from most similar (top one percent vs. greater reach (top five percent)).
“If you are looking to drive response rates, the narrower audience of the former strategy will likely provide the most performance improvement, albeit at lower volumes. Anecdotally, lookalike audiences have performed better than those based on stated behaviors or affinities in the social space.”
And as always, it remains important to tailor campaigns to the operating environment even though some of the larger distinctions between iOS and Android are starting to wane.
Finally, say the authors, marketers should also keep in mind the fact new sources of inventory are emerging regularly in the mobile app space.
“Google Search App Ads, Google Play Search Ads, Instagram, Mobile Display, Yahoo! Gemini and Admob all provide opportunities for expanded reach and interaction with your audience,” they write.
Please login with linkedin to comment
Advertising Standards Bureau einsights Jetstar pedestrian safetyLatest News
Sydney Comedy Festival: Taking The City & Social Media By Storm
Sydney Comedy Festival 2024 is live and ready to rumble, showing the best of international and homegrown talent at a host of venues around town. As usual, it’s hot on the heels of its big sister, the giant that is the Melbourne International Comedy Festival, picking up some acts as they continue on their own […]
Global Marketers Descend For AANA’s RESET For Growth
The Australian Association of National Advertisers (AANA) has announced the final epic lineup of local and global marketing powerhouses for RESET for Growth 2024. Lead image: Josh Faulks, chief executive officer, AANA Back in 2000, a woman with no business experience opened her first juice bar in Adelaide. The idea was brilliantly simple: make healthy […]
Is Meta’s New AI Chatbot Too Left-Wing?
Meta's chatbot accused of being left-wing after being caught wearing a Che Guevara T-shirt & listening to Billy Bragg.
TV Ratings (23/04/2024): Why Did No One Tell Angela That Farmer Wants A Wife Is Set On A Farm?
As wonderful as this headline is, let's face it, we all know an 'Angela', don't we?
PubMatic Unveils New AI Partnership To Turn Social Posts Into Ads For Any Digital Channel
Here's some nifty tech for turning social posts into ads. Assuming said posts aren't one-star character assassinations.
Intuit Mailchimp Makes A Splash With Its First Australian Brand Campaign
Ever laugh along at a gag you didn't get so as not to appear dumb? Get ready for more feigning with this new work.
GumGum’s Rob Hall: Advertisers Can No Longer “Rely On Binary Descriptions” Of Consumers
If anyone's got their finger on adtech's pulse, it's Rob Hall. He also avoids using the good paper in the office printer
Mastercard Nabs Florencia Aimo From Marriott International
Marriott International's Florencia Aimo jumps from the hotel business to the exploitative credit card one.
Bastion Agency Appoints Cheuk Chiang As New ANZ CEO
Cheuk Chiang takes the reins over at Bastion Agency. But not the rains down in Africa.
Spotlight On Sponsors: Major Sponsorship Wins After A Disappointing Week In Sport
B&T continuing our deep dive into local sport sponsorships & that's despite not a single offer of a free ticket as yet.
Macca’s Marketing Director, Samantha McLeod On Big Mac Chant: “What Was Once Old Is Now Cool Again”
Macca's using the power of nostalgia in latest Big Mac campaign. Well, only for those who've ever eaten one sober.
World Premiere Of Midnight Oil: The Hardest Line To Open Sydney Film Festival 2024
Oil's biopic to open Sydney Film Festival. Here's hoping Molly Meldrum will take his pants down at the premiere.
Entries Are Now Open For The 2024 Brandies, IntelligenceBank’s Annual Brand Marketing Awards
The Brandies are, of course, a prestigious marketing gong and not the mystery tipple favoured by nannas everywhere.
The Fred Hollows Foundation Appoints Ardent For PR
Yes, we all like to have a joke at PR's expense. But sometimes it does important work, like this.
AI, eCommerce & Marketing Specialists Are In Increased Demand By Businesses, New Data From Fiverr Shows
Has your philosophy & anthropology degree left you with nothing but a huge HECS debt? Here's what you should've studied.
Perth’s First 3D Anamorphic Billboard Arrives Courtesy Of oOh!media
Do you love a buzzword? Now you can add anamorphic to the list as it relates to billboards, not a colleague's ears.
MasterChef Australia & Crown Resorts Launch Unique Dining Experience With ALUMNI
A pop-up restaurant staffed by MasterChef contestants! That's fine dining prices for first-year apprentice chef cuisine!
Amanda Laing Announces Resignation From Foxtel Group
Foxtel's chief commercial & content officer heads for the exits. Read nice things the bosses said about her right here.
The Lost Letters From Our Diggers: News Corp Unveils ANZAC Day Special
It's nice when brands respectfully acknowledge ANZAC Day.
Howatson+Company Acquires Akkomplice
Large indie acquires a slightly smaller indie. Much like a shark eating a tuna, just with less thrashing and blood.
Google Delays Third-Party Cookie Deprecation Again
In good news for the sale of picture library biscuit photos, Google continues to tease over the end of cookies.
Education A Low Priority For Aussies More Concerned With Cost Of Living Forethought Study Reveals
Study finds Aussies cutting back on education due to cost of living. Booze & Uber Eats sales remain largely unaffected.
“I’m Still The Same Person That I Was”: Rikki Stern Says “Fucc It” To Cancer Stereotypes
B&T always happy to promote the anti-cancer cause. Even brands that massively overdo it with the hot pink.
The Unapproved Climate Certification Allegedly Causing Mass Greenwashing
Are you left flummoxed in the canned tuna & free range eggs aisle? Just wait till this green certification gets up.
TV Ratings (22/04/2024): Fans Mock “Over The Top” Reaction To New MasterChef Judges
MasterChef returns for its 2024 season. B&T stands by putting peppercorns in Gravox & no one will be any the wiser.
Dentsu Restructure: Muddle, Harvey & Johnston Take Leadership Baton As Bass & Yurisich Exit
A large broom has swept through Dentsu's local ops this morning, taking with it some big names & the air con's cobwebs.
Industry Shares Trends Shaping The Industry This International Creators Day
B&T's asking adland creators to reveal their top trends. And it's not good news for your Jenny Kee cardigan collection.
Mable Extends HOYTS Sensory Screenings Partnership
Mable has extended its HOYTS sensory screening partnership. Vigorously defends its two-star Oppenheimer review.
Orphan Launches ‘They Need Our Help. We Need Yours’ For Children’s Cancer Institute
Anything to do with childhood cancers has B&T's 110% support. That said, we do ignore the red meat & alcohol warnings.
Smile Team Orthodontics & Keep Left Collaborate On Smile-Inducing Campaign
As parents would attest, given the cost of orthodontics you'd expect this campaign to be a lavish production indeed.
Opinion: How Video Calls Neglect Learning Diversity
Need an excuse to duck out of a video call this arvo? Show this to your boss.
DoubleVerify Achieves First-Of-Its-Kind Responsible AI Certification From TrustArc
DoubleVerify receives responsible AI certification. However, not its robotic vacuum that's been seen menacing the cat.
Smile For A Good Cause: The Social Media Campaign Giving Back To The Community
Are you known as the office Austin Powers? More for you teeth than shagability? Get snappy new fangs with this news.
Elon Musk Mocks Albo After ESafety Wins Court Injunction Against X
Albo's 2024 from hell continues - Rabbitohs in crisis, down in the polls and now feuding with world's richest man.
Real Estate Developer In Hot Water Over “Sexually Exploitative” OOH Campaign
Real estate agents again tops in the 'least trusted profession' polls, nudging used car salesmen & ad creatives.
Epsilon’s Shane Hanby: Post-Cookie Era Relies On “Teamwork” Between Brands, Marketers & Tech
This pro predicts more "teamwork" in a post-cookie era. Which spells bad news for the uncooperative or plain stubborn.