The most recent report from Kenshoo on mobile app advertising has just been released, covering the second quarter of 2015. The report has some very impressive numbers that show just how fast this segment of the advertising industry really is.
First, application developers and marketers are spending 293% more on Facebook ads in Q2 than they did in Q2 of 2014. This increase in spend is largely attributed to increased total ad budgets from developers as well as the increased competition in this market.
In addition to that, the report found that the total number of mobile app installs that came from Facebook ads shot up by 346% year over year. As you can see from the numbers, the number of installs is going up at a greater rate than the ad spend, which is a good thing for app developers as it translates to a higher return on investment.
The report was not all good news, however. They found that the actual click through rates have gone down by 15% YOY. This means more of the ads are being ignored by users. The total clicks that resulted in installs went up by 32% though, so those who are clicking are buying at a much higher rate than they were last year.
All combined, the cost per install (CPI) dropped by 12% from Q2 2014, which is obviously great news for the marketers and developers who are promoting these apps. The average CPI for iOS devices was a little over $1.80 in this report, compared to about $2.00 last year. Of course, the specific cost per install rates depend on the category in which the app is in. Consumer apps cost less per install than do the gaming and other similar apps.
One of the most impressive stats from the report is that a little under 1 in 3 mobile app ads results in an install. This is a very high conversion rate and whether you are making money from the cost of an app, advertisements or a ‘fremium’ model, this means there is a lot of potential for making money.
To see the full report you can click HERE.
