Marketers' Investment in Mobile App Ads Drives 196% Increase in App Installs

Mar 07, 2016

Kenshoo, an agile marketing provider, released its latest Mobile App Advertising Trends Report, benchmarking key metrics for mobile app marketers. Among the key findings, total spending increased 155% year-over-year (YoY), while mobile app installs increased 196% YoY, resulting in an overall decrease in the cost per install (-14%) YoY. Other findings from the report related to mobile app advertising include:

  • Impressions increased 187% YoY
  • Clicks increased 280% YoY
  • Cost per thousand impressions (CPM) decreased 11% YoY
  • Cost per click (CPC) decreased 33% YoY
  • Click-through rate (CTR) increased 32% YoY

Advertisers' share of both clicks and app installs obtained through Instagram since the introduction of its advertising API in Q3 2015 exceeded the share of total ad spend, and all three metrics showed considerable improvement over the last two quarters. In fact, app install ads on Instagram delivered more than 20% of all app install ad clicks in Q4.

App install ads for gaming apps were priced higher for CPM and CPC than their consumer counterparts ($6.18 and $0.67 vs. $3.15 and $0.28, respectively) but once consumers click on a gaming app ad, they are much more likely to install (39% vs. 11%) resulting in a drastically reduced cost per install (CPI) ($1.73 vs. $2.70).