Nearly 200% Increase In Mobile App Installs Driven By Increased Ad Spend

Mobile app installs increased 196% year-over-year while total spending increased 155% YoY, which means cost-per-install decreased by 14% YoY, according to Kenshoo’s latest Mobile App Advertising Trends Report.

U.S. mobile app install ad revenue is expected to hit $5.4 billion in 2016, according to Business Insider.

Instagram has proven to be an effective platform for app advertisers, accounting for 20% of all app install clicks in Q4. The social picture sharing platform opened up its APIs last year and has delivered the similar click-through rates (CTR) as Facebook at a lower cost.

Gaming apps are still on an entirely different level from consumer apps. If a consumer does click on a gaming app ad, they are much more likely to install (39%) than someone who clicks on a consumer app ad (11%).

Gaming apps ads have higher cost per thousand impressions (CPM) and cost per clicks (CPC) associated with them, but the higher rate of installation means they cost less per install than their consumer counterparts ($1.73 compared to $2.70, respectively).

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“Incorporating additional elements of the app experience like in-app engagement and lifetime value are the next steps for marketers in optimizing app campaigns to their specific goals and maximizing the app marketing opportunity,” stated Chris Costello, director of marketing research for Kenshoo.

Other notable stats from the report show that the increase in ad spend is starting to pay off for advertisers and marketers: impressions increased 187% YoY; clicks increased 280% YoY; CPM decreased 11% YoY; CPC decreased 33% YoY; and CTR increased 32% YoY.

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