App Install Marketing Survey Fall 2017

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1 App Install Marketing Survey Fall 2017

2 The Semi-Annual AdColony App Install Survey Insights, benchmarks and trends from the top 100 grossing app developers # % 81% 19% $1M+ 8th iteration of the survey since 2013 Detailed questions on app install trends Survey response rate in 3 weeks Mobile game developers Non-gaming mobile developers Total monthly app install budget 2

3 Geographic Distribution Where were the survey respondents from? 20% North America EMEA APAC 54% 26% 3

4 State of the Market Top app install marketing trends

5 The Winners: Top Campaign Shifts in 2017 Compared to last year, my UA campaigns have increased in or moved more toward in Disagree Agree Spend Video Reach New Channels CLV Social CPI 5

6 App Install Budget Allocation 1% Video accounts for 57% of all app install spend. 4% 1% 27% Video full-screen Playables 5% Video in-feed Native ads Video social Cross promo Video television Free app networks 7% Display social Offer walls Display interstitial Display banner Influencer Print, radio, & outdoor 7% 8% Display rich media Other 8% 1% 21% 6

7 App Install Teams Are Growing Over half of top UA teams have 6 or more members. Typical UA Team Size 10+ Person Teams Over Time 1 (just me) % 9% 23% 28% % % 23% 16% Q3 '16 Q1 '17 Q4 '17 7

8 App Install Teams are Busy On average, advertisers localize for 6 languages and optimize campaigns 5 times per week. Language Localization Campaign Optimization Frequency 1 4% 5% 14% % Multiple times daily Every day Every few days Once a week 24% % 15% Less than weekly 13% 35% 8

9 The Losers: Campaign Trends Falling Out of Favor Compared to last year, my UA campaigns have increased in or moved more toward in Disagree Agree Display Free App Networks Television Out of Home Print Radio 9

10 Top App Install Formats Usage, effectiveness, & spend

11 Top App Install Formats by Usage Video leads the way while playables surpass native & in-feed units. 91% 98% 69% 74% 79% 79% 30% 30% 3 39% 46% 53% 58% 21% 11% Print, Radio, & Outdoor Influencer Rich media Playables Interstitial display Television Free App Networks Native ads Social display Social video Cross promo Offer Walls In-feed video Banner display Full-screen video 11

12 App Install Budget Allocation by Channel Full-screen video and social video tower over all other app install channels. 30% 24% 0% 0% 0% 1% 1% 3% 3% 3% 4% 5% 6% 7% 8% Print Other Offer walls Influencer Interstitial Display Social display Outdoor Television Free App Native ads Playables Social video Radio Cross Promo Rich Media Banner Display In-Feed Video Full-screen video 12

13 Most Effective App Install Formats Share of advertisers awarding top 2 box responses regarding channel effectiveness at achieving campaign objectives. 77% 8 55% 39% 45% 10% 13% 13% 15% 15% 16% 18% 20% 25% 30% Banner display Offer walls Free app networks Native ads Social display Print Rich media display Cross promotion Playable ads Full-screen video Radio Interstitial display Influencer campaigns In-feed video Social video 13

14 The Rise of Playables As more advertisers find success with playable ads, test budgets continue to increase. Q3 16 Q1 17 Q % 64% 69% 45% 46% 51% 33% 33% 25% 4% 6% Budget Excitement Effectiveness Usage 14

15 Advertiser Excitement 46% of app install marketers are most excited about playable ads in Playable ads 46% Full-screen video Social video In-feed video Native ads 26% Cross promo Rich media 13% Social display 4% 6% 15

16 Targeting & KPIs What matters to top advertisers

17 Top User Acquisition KPIs User quality & level of service remain top concerns as volume, price, & targeting fall slightly. Not important at all Somewhat important Moderately important Very important Most important User Quality Level of Service Volume Price Targeting 17

18 Leading Indicators of High Quality Users By Region NA advertisers care most about IAP while EMEA & APAC advertisers care most about retention. Retention 100% 100% In-app purchase Tutorial completion Session time 8 74% 81% 67% Positive user review Friend invitation sent 44% Social login 6% 15% 15% 21% 26% 6% 6% 13% 31% 8% 0% 17% 25% 25% NA EMEA APAC 18

19 Finding Quality Users: Look-Alike vs Retargeting Considered more effective than retargeting, look-alike modeling is utilized by 91% of top advertisers. Completely effective Mostly effective 5% 9% 20% 29% 5% 15% Somewhat effective 8% Neutral Somewhat ineffective Mostly ineffective Completely ineffective 26% 31% 5% 5% 2 N/A (don t use) 18% Look-Alike Modeling Retargeting 19

20 Outcomes-Oriented Pricing Models Dominate No matter the app genre, top app install marketers rely on CPI. CPI CPA CPM 100% 100% CPC CPE 47% CPCV CPL 11% 17% 17% 25% 2 13% 13% 13% 13% 3% 0% Gaming Advertisers Non-Gaming Advertisers 20

21 Thank you!

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