Kenshoo’s third “Mobile App Advertiser Trends Report” shows continued growth in the mobile app space as the market matures and evolves
San Francisco (September 12, 2016) – Kenshoo (www.Kenshoo.com), the global leader in agile marketing, today released its third Mobile App Advertiser Trends Report, benchmarking key metrics for mobile app marketers. Among the key findings, mobile app installs in Q2 2016 increased 36% year-over-year (YoY) for the gaming sector, while overall ad spend on mobile app install ads across all industries increased 54% YoY; both metrics experienced Q4 declines (with retailers shifting focus to holiday sales) and Q1 booms. Other findings from the report include:
- Impressions increased 87% YoY
- Clicks increased 95% YoY
- Cost per install (CPI) increased 8% YoY
- Click-through rate (CTR) increased 4%
“Mobile apps are now ubiquitous, with an emerging delineation between ‘task’ and ‘diversion’ apps that require a different set of rules for marketers,” said Chris Costello, director of marketing research for Kenshoo. “‘Task’ apps must be marketed as essential to day-to-day existence and prove valuable on that front, whereas ‘diversion’ apps, like big gaming, roll out like Hollywood blockbusters with marketers focusing on getting noticed in an increasingly crowded space.”
With large advertisers entering the market at lower ad prices, Kenshoo saw sharp increases in impressions and clicks that outpaced growth in spend, resulting in YoY decreases in the cost per thousand impressions (CPM) and cost per click (CPC) of 18% and 21%, respectively.
Examining the percentage of total social budget dedicated to app installs highlights the difference between Gaming and other industries; in Q2 app install ads accounted for 78% of social ad spend for Gaming, while accounting for 58% for other industries. Gaming apps have both higher CPC ($0.47) and CPM ($3.98) than other industries ($0.17 and $2.69 respectively) as they garner a smaller volume of clicks, likely due to market saturation, competition, and stronger consideration of post-install revenue.
Ads targeting iOS continue to carry premium pricing over Android, as cost per thousand impressions (CPM) ($4.25 vs. $2.50), cost per click (CPC) ($0.40 vs. $0.18) and CPI ($2.54 vs, $1.54) are all higher on Apple’s mobile operating system, resulting in iOS accounting for 60% of ad spend for Q2 2016.
Visit Kenshoo.com/Mobile-App-Trends to download Kenshoo’s latest Mobile App Advertiser Trends Report for further insights.
This report reflects advertisers on the Kenshoo Gaming and Kenshoo Social platforms who spent on Mobile App Install ad types between April 1, 2015 and June 30, 2016. For the top 50% of advertisers (by overall spend), five consecutive quarters of total paid social spending was required. All advertisers below the 50% threshold were included. The resulting sample includes over 25 billion impressions, over 250 million clicks, and over $100 million in total paid social spend, spanning 28 countries and 15 industries.
Mobile App Installs were tracked for the Kenshoo Gaming advertisers only. Please note that counting methodology for Mobile App Installs has been modified since previous versions of this report.
Kenshoo is the global leader in agile marketing. Brands, agencies and developers use the Kenshoo Infinity Suite to direct nearly $350 billion in annualized client sales revenue through social, search, mobile, and display advertising. Kenshoo provides leading native API solutions for ads across Facebook, FBX, Instagram, Pinterest, Twitter, Google, Yahoo, Yahoo Gemini, Yahoo Japan, Bing, Yandex and Baidu. Kenshoo powers digital marketing campaigns in more than 190 countries for nearly half of the Fortune 50 and all 10 top global ad agency networks. Kenshoo clients include Expedia, Facebook, Havas Media, John Lewis, Resolution Media, Sears, Starcom MediaVest Group, Tesco, Travelocity, Walgreens, and Zappos. Kenshoo has 27 international locations and is backed by Sequoia Capital, Arts Alliance, Tenaya Capital, and Bain Capital Ventures. Please visit www.Kenshoo.com for more information.
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