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Performance is the biggest reason mobile app-install ads are so popular.
On Facebook mobile app-install ads far outperform the average CTR across all ad types on the social network.
This format performs well because it's easy to understand, is native to mobile, and has a very low-friction call to action.
New data from BI Intelligence finds that the average clickthrough rate (CTR) for this ad type was 0.98% during the first quarter of 2014, compared to an average CTR of 0.24% for all Facebook ad types across desktop and mobile, according to data from a selection of marketers studied by AdParlor and Nanigans.
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Here are some of the key takeaways:
- Mobile app-install ads are becoming extremely popular ad units among different types of app publishers, not just game-app developers. App marketers — including e-commerce companies and a few brands — like these ads because they result in significant downloads and measurable ROI. Social networks and ad exchanges like them because they can sell the units at significantly higher prices than other ads.
- Easy-to-measure ROI drives demand. In many cases, once an app-install ad generates a download, everything a customer does in the app, such as "lifetime customer value," can be attributed back to that specific ad.
- On Facebook, mobile app-install ads cost significantly more than standard units, due to performance and targeting capabilities. The report includes CPM pricing and CTR rates compared to the average Facebook ad.
- Prices will hold relatively steady as supply and demand rise in tandem. The mobile install ad is a fairly mature ad unit at this point, and a good deal of competing supply is now available from Twitter and Google. But continued increases in demand for these ads among app marketers will keep prices from declining.
- Top mobile publishers and ad networks are competing fiercely for mobile app-install ad dollars, and for the favor of app developers. Twitter and Facebook are doing their best to lure app builders to their platforms and app-install ads with advanced ad analytics and developer tools.
The report is full of charts, data, and case studies that can easily be downloaded and put to use.
In full, the report:
- Forecasts spending on mobile app-install ads in the US over the next five years
- Puts total revenue in context of mobile ad spend and Facebook mobile ad spend
- Analyzes how mobile-app install ads are priced and bought, and looks at how pricing and performance trends have changed over time
- Highlights the mobile app-install ad units available from major players like Facebook, Twitter, Yahoo, and Google
- Examines the different types of marketers that have put the ad format to use
To access the full report from BI Intelligence, sign up for a 14-day trial here. Members also gain access to new in-depth reports, hundreds of charts and datasets, as well as daily newsletters on the digital industry.
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