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Mobile App Advertising Increases 54%

Posted on 9.13.2016

Kenshoo’s third “Mobile App Advertiser Trends Report” shows continued and significant growth in the mobile advertising and app install space as the market matures and evolves

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Mobile app installs in Q2 2016 increased 36 percent year-over-year (YoY) for the gaming sector, while overall ad spend on mobile app install ads across all industries increased 54 percent YoY; both metrics experienced Q4 declines (with retailers shifting focus to holiday sales) and significant Q1 increases. Other findings from the report include:

+ Impressions increased 87 percent YoY
+ Clicks increased 95 percent YoY
+ Cost per install (CPI) increased 8 percent YoY
+ Click-through rate (CTR) increased 4 percent

“Mobile apps are now ubiquitous, with an emerging delineation between ‘task’ and ‘diversion’ apps that require a different set of rules for marketers,” said Chris Costello, director of marketing research for Kenshoo. “‘Task’ apps must be marketed as essential to day-to-day existence and prove valuable on that front, whereas  ‘diversion’ apps, like big gaming, roll out like Hollywood blockbusters with marketers focusing on getting noticed in an increasingly crowded space.”

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 percent of ad spend for Q2 2016.

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