Mobile App Advertising Investment Increased 54%; App Installs Up 36% for Gaming Advertisers

Sep 13, 2016

Kenshoo, a provider of agile marketing, 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%

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 CPM ($4.25 vs. $2.50), 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.