Top App Install Marketing Trends for 2017

The trends we see going into 2017 based on data since 2013

Based on aggregated market data of top 100 grossing ad spend & install volume.The semi-annual AdColony app install surveyInsights, benchmarks and trends from the top 100 grossing app developers

#66th iteration over 3 years

130Detailed questions

65%Survey response rate

62%Mobile game developers

38%Non-Game app developers (e.g. entertainment, music, news)

$1M+Total monthly app install budget

FORMAT & DATA

Respondent Profile@Pau1West

Sharing since 2013Marketing were kind enough to put my twitter feed on the bottom of every slide4 different categories, the Basics, KPI measurement, Quality and Scale, Channel analysis

The basicsTeam size and optimisation frequency

team size

Source: AdColony Q3 2016 App Install Marketing SurveyTeams are running leaner than this time last year, with the the average team having 4 members.Medium sized app install teams grow in prominence

Q1 2015Q3 2015Q3 2016

@Pau1West

- Shift towards mid-range teams, almost 80% between 2-9- better educated market, better tools?

Source: AdColony Q3 2016 App Install Marketing SurveyOn average, top UA teams optimise their campaigns 3.25 times per week.Campaign optimisation frequencyQ1 15Q3 15Q3 16

@Pau1West

skewing towards daily optimisationUA team becoming more reactive with smarter LTV modelling?

Source: AdColony Q3 2016 App Install Marketing SurveyCPA becomes more prevalent as CPM, CPC and CPCV campaigns fall.CPI dominates as campaign pricing modelQ3 15Q3 16

@Pau1West

Cost Per Acquisition popularity is rising in non-gaming, CPI dominates

Source: AdColony Q3 2016 App Install Marketing SurveyWhat % of your budget do you allocate to each app install format you currently use?App install budget allocation

Video (non-social)

Social (video & display)

Display (non-social)

Native & Playable

Traditional

OtherVideo and display ads dominate the majority of app install budget allocation for top publishers.@Pau1West

Budget distribution highlight formats that deliver on KPIs video = 58% of budget

Top KPIsWhat the top app install marketers look for

Top KPIs

Source: AdColony Q3 2016 App Install Marketing SurveyUser quality is the undisputed top KPI for top app install marketersTop user acquisition KPIsNot important at allSomewhat importantModerately importantVery importantMost important

@Pau1West

Less focus on volume, e.g. weve hit 50m downloads!What does User Quality mean?

Source: AdColony Q3 2016 App Install Marketing SurveyWhat are early indicators of a high quality loyal user who is likely to monetise via IAP?Retention no longer leading quality indicatorQ1 2015Q3 2015Q3 2016

@Pau1West

More sophisticated formulas now considering reviews, social log ins, Less reliance on single metrics such as retention

Source: AdColony Q3 2016 App Install Marketing SurveyWhat tools do you use to track ROI?Top ROI tracking tools@Pau1West

Custom LTV formulas for success, require custom in-house tools

Quality and scalePreferred partners

start with format usage

Source: AdColony Q3 2016 App Install Marketing SurveyVideo, display and native ads lead the wayTop app install formats by usagePrint

App networksOffer wallsTelevisionRich mediaIn-feed videoSocial displayInterstitial displayRadioOutdoorCross promoPlayableNative adsBannerSocial videoFull-screen video

@Pau1West

Interstitial display still a popular channel for UA spenders

Source: AdColony Q3 2016 App Install Marketing SurveyShare of advertisers awarding top two box responses regarding channel effectiveness at achieving campaign objectives.Most effective app install formats

Offer wallsCross promoOutdoorTelevisionPlayable adsSocial displaySocial videoFree app networksRich mediaBannerInterstitialNative adsIn-Feed videoFull-screen video

@Pau1West

Interstitial, was 2nd in usage, 7th effectivenessrise in playable, was 9th in usage, 5th in effectiveness

Source: AdColony Q3 2016 App Install Marketing SurveyWho are your top 3 sources for driving app installs at scale?Driving app install at scaleHighlights: Supersonic down from 8 to 19 Chartboost down from 7 to 11 Instagram up from 13 to 8 Twitter up from 10 to 7IronsourceAppiaPinterestGlispa

AppliftVungleGoogleMobvistaBidalgoCheetahChartboost

InstagramUnityAdColonySupersonicJamppLiftoffTapjoyTwitterAppLovinFacebook

@Pau1West

Source: AdColony Q3 2016 App Install Marketing SurveyWho are your top 3 sources for driving app installs at scale?Driving UA quality

Highlights: Chartboost down from 6 to 21 AppLovin down from 3 to 6 Taptica up from 17 to 9 Google up from 4 to 3Chartboost

LiquidAditorAppLiftTapticaAppLovinGoogleSupersonicPinterestLifestreetLiftoffInstagramVungleAdColonyApplifierTapjoyGlispa

TwitchTwitterUnityFacebook

@Pau1West

google moved up from last year

Source: AdColony Q3 2016 App Install Marketing SurveyApp install budgets continue to increase driven by growth in mobile video & global campaigns.Top 5 campaign trendsQ1 15Q3 15Q3 16

@Pau1West

ROW - extracting value from emerging markets- less keen on new channels, more going deeper with fewer partners

Channel analysisPopularity, commitment and effectiveness

First, different types of campaigns (lookalike/retargeting)

Source: AdColony Q3 2016 App Install Marketing Survey@Pau1WestLook-alike CampaignsLook-alike campaigns continue to be both popular and effective at achieving app install goals.

Q1 15Q3 15Q3 16

Look-alike UsageHow effective are your look-alike campaigns?

large leap in effective lookalike buying last year, the industry becomes more comfortable and educated about lookalike targeting and the investment in algorithms is working

Source: AdColony Q3 2016 App Install Marketing Survey@Pau1West

Q1 15Q3 15Q3 16

Retargeting CampaignsMore advertisers find retargeting to be effective in 2016 than in 2015.Retargeting UsageHow effective are your retargeting campaigns?

similar story with retargeting, more usage, and significantly higher value extracted from retargeting campaigns overall

Source: AdColony Q3 2016 App Install Marketing SurveyChannel usage over time: Traditional mediaQ2 14Q1 15Q3 15Q3 16

@Pau1West

Out of Home, Clash of Kings example - tricky to measure

Source: AdColony Q3 2016 App Install Marketing SurveyCertain advertisers are leveraging and finding benefitsChannel analysis: Television

Use Rate

Effectiveness

Budget Allocation@Pau1West

% wise low budget allocation, not all major players are leveraging this channel, difficult to measurethis puts Television begin in 11th position:

Source: AdColony Q3 2016 App Install Marketing SurveyHow effective are television ads at achieving your campaign goals?App install channel effectiveness: Television

#11: TelevisionOnly a small segment of app install marketers find television ads to be an effective UA channel.Most Effective App Install Formats@Pau1West

Source: AdColony Q3 2016 App Install Marketing SurveyFull screen video remains the most popular app install channelChannel analysis: Full-screen video

Use Rate

Effectiveness

Budget Allocation@Pau1West

Impactful, measurable, scalable, full-screen video remains top of the tree:

Source: AdColony Q3 2016 App Install Marketing SurveyHow effective are full-screen video ads at achieving your campaign goals?App install channel effectiveness: Full screen video

#1: Full-Screen Mobile VideoFull-screen mobile video is considered to be the most effective app install channelMost Effective App Install Formats@Pau1West

Source: AdColony Q3 2016 App Install Marketing SurveyAdvertisers are impressed & excited about the future of playable ads.The rise of playable

Share of Budget

Playable Effectiveness

Agree

Neutral

Disagree

Excitement@Pau1West

Final point

Source: AdColony Q3 2016 App Install Marketing SurveyWhat UA channel are you most excited about?Channel excitement over timeQ1 15Q3 15Q3 16

@Pau1West

Tutorial in a ad, sophisticated tailor the experience due to the ad experience?

1 - More and more frequent optimisation2 - Further investment in ROI tools driven by more sophisticated LTV formulas3 - Market wants more spend, more video, more social more geos, from fewer partners4 - Retargeting and Lookalike to scale further5 - More playable