App Install Marketing Survey Results Q3 2016
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1 App Install Marketing Survey Results Q3 2016
2 The Semi-Annual AdColony App Install Survey Insights, benchmarks and trends from the top 100 grossing app developers FORMAT & DATA RESPONDENT PROFILE #6 6th Iteration Over 3 Years 62% Mobile Game Developers 130 Detailed Questions 38% Non-Game App Developers (e.g. entertainment, music, news) 65% Survey Response Rate $1M+ Total Monthly App Install Budget Based on aggregated market data of top 100 grossing ad spend & install volume. 2
3 State of the Market
4 Top 5 Campaign Trends Q1 15 Q3 15 Q3 16 App install budgets continue to increase driven by growth in mobile video & global campaigns. 72% 81% 89% 76% 81% 59% 68% 77% 61% 68% 75% 63% 78% 73% 52% Increase Spend More Video More Geos Partner Consolidation Testing New Channels 4
5 The Rise of Playable Advertisers are impressed & excited about the future of playable ads. Playable Effectiveness Share of Budget Excitement 2% 25% 71% 5
6 Video Grows as Social Plateaus Agree Neutral Disagree Budgets Shifting to Video Budgets Shifting to Social Q1 '15 Q3 '15 Q3 '16 Q1 '15 Q3 '15 Q3 '16 6
7 App Install Budget Allocation What % of your budget do you allocate to each app install format you currently use? 3% 5% Video and display ads dominate the majority of app install budget allocation for top publishers. 11% 33% Video (non-social) Social (video & display) Display (non-social) 22% Native & Playable Traditional Other 25% 7
8 Video Prevails in the Feed Top mobile advertisers find video to be the most effective in-feed ad placement for their campaigns. In-Feed Video Effectiveness Banner Display Effectiveness Rich Media Effectiveness 13% 37% 34% 63% 66% 88% 8
9 Campaign Shifts in 2016 Disagree Agree Compared to last year, my app install campaigns have increased in, or shifted more toward. App Netowkrs Offer Walls Radio Print Out of Home Display Television Native Ads Direct Deals Interstitials Android Programmatic ios Social CPI CLV New Channels Fewer Partners Reach Video Budget 9
10 Top App Install Formats
11 Top App Install Formats by Usage Video, display, and native ads lead the way. 82% 85% 91% 71% 71% 58% 64% 33% 38% 22% 25% 25% 9% 9% 13% 15% Print App networks Offer walls Television Rich media In-feed video Social display Interstitial display Radio Outdoor Cross promo Playable Native ads Banner Social video Full-screen video 11
12 App Install Budget Allocation by Channel Video, display, and native ads lead the way. 24.5% 14.8% 8.6% 8.8% 9.7% 10.1% 10.3% 0.1% 0.2% 0.3% 1.4% 1.4% 1.6% 2.2% 2.6% 3.0% Print Radio Offer walls Cross Rich media In-feed video Social display Social video Outdoor App networks Playable ads Television Banner Native ads Interstitial Full-screen video 12
13 Video Drives Advertiser Excitement 71% of app install marketers are most excited about video advertising in Full-Screen Video 42.3% Playable Ads Social Video In-Feed Video 25% Television 19% Cross Promotion Radio 2% 2% 4% 6% 13
14 Most Effective App Install Formats 86% Share of advertisers awarding top 2 box responses regarding channel effectiveness at achieving campaign objectives. 74% 65% 39% 41% 19% 21% 25% 26% 29% 33% 33% 5% 11% Offer walls Cross promo Outdoor Television Playable ads Social display Social video Free app networks Rich media Banner Interstitial Native ads In-Feed video Full-screen video 14
15 Targeting & KPIs What matters to top advertisers
16 Retargeting Campaigns Q1 15 Q3 15 Q3 16 More advertisers find retargeting to be effective in 2016 than in Retargeting Usage How effective are your retargeting campaigns? 70% 68% 75% 34% 36% 34% 36% 33% 37% 19% 18% 17% 11% 9% 3% 5% 2% 5% Q1 '15 Q3 '15 Q3 '16 Very Ineffective Ineffective Neutral Effective Very Effective 16
17 Look-alike Campaigns Q1 15 Q3 15 Q3 16 Look-alike campaigns continue to be both popular and effective at achieving app install goals. Look-alike Usage 93% 93% 89% How effective are your look-alike campaigns? 77% 32% 38% 46% 44% 15% 15% 16% 2% 4% 4% 7% Q1 '15 Q3 '15 Q3 '16 Very Ineffective Ineffective Neutral Effective Very Effective 17
18 Targeting Key Requirement Nice to Have Not Required Which targeting parameters are most important & help maximize the performance of your app install campaigns? Geography OS Souce App Gender Look-alike Demographics Age Device # Source Connection Carrier 18
19 Leading Indicators of High Quality Loyal Users What are early indicators of a high quality loyal user who is likely to monetize via IAP? Q Q % 83% 68% 76% 73% 71% Q % 33% 17% 2% 6% 0% 3% 8% 11% 25% 19% 26% Social Log-In Positive Review Session Time Tutorial Completion Retention Early IAP 19
20 Campaign Optimization Team Size & Optimization Frequency
21 Frequent Campaign Optimization How often does your team review app install campaign results and optimize accordingly? 7% 10% 15% 78% of app install teams optimize their campaigns multiple times a week, if not every single day. Multiple times per day Every day Multiple times per week Once a week Less than once a week 35% 33% 21
22 Campaign Optimization Frequency On average, top UA teams optimizes their campaigns 3.25 times per week. Q1 15 Q3 15 Q % 42% 44% 28% 27% 32% 33% 30% 22% Weekly or Less Every Few Days Daily or More 22
23 App Install Team Size 65% of UA teams have 4 or more people 8% 14% 1 (just me) 2 to 3 4 to 5 6 to 9 31% 21% % 23
24 Medium Sized App Install Teams Grow in Prominence Teams are running leaner than this time last year, with the the average team having 4 members. 58% Q % 47% Q Q % 24% 14% 20% 18% 18% 5% 9% 8%
25 CPI Dominates as Campaign Pricing Model CPA becomes more prevalent as CPM, CPC, and CPCV campaigns fall. 95% 96% Q3 15 Q % 33% 31% 12% 15% 22% 17% 17% 21% 22% 3% 1% 3% 4% Other CPL CPE CPM CPCV CPC CPA CPI 25
26 Budget & Spend Channels & Methods
27 App Install Budget Allocation What % of your budget do you allocate to each app install channel you currently use? 3% 5% 11% Video and display ads dominate the majority of app install budget allocation for top grossing publishers. 48% Video Display Native & Playable Traditional Media 32% Other 27
28 App Install Budget Allocation by Channel Video, display, and native ads lead the way. 24.5% 14.8% 8.6% 8.8% 9.7% 10.1% 10.3% 0.1% 0.2% 0.3% 1.4% 1.4% 1.6% 2.2% 2.6% 3.0% Print Radio Offer walls Cross Rich media In-feed video Social display Social video Outdoor App networks Playable ads Television Banner Native ads Interstitial Full-screen video 28
29 Channel Usage What s fallen in and out of favor
30 Channel Usage Over Time: Tried & True Q1 13 Q3 13 Q2 14 Q1 15 Q3 15 Q % 100% 100% 98% 97% 98% 94% 92% 96% 97% 89% 100% 83% 90% 96% 92% 85% 89% 86% 86% 93% 92% 68% 71% Video Social Interstitial Display Banner Display 30
31 The Demise of Incentivized Incentivized installs fall out of favor as advertisers continue to focus most on user quality 95% 100% Free App Networks Offer Walls 64% 64% 54% 35% 47% 41% 22% 19% 13% 22% Q1 '13 Q3 '13 Q2 '14 Q1 '15 Q3 '15 Q3 '16 31
32 Channel Effectiveness What s working for the top app install marketers
33 Channel Effectiveness: Video Full-screen mobile video remains the most effective format, with television offering mixed results. Least Effective Moderately Uneffective Somewhat Uneffective Neutral Somewhat Effective Moderately Effective Most Effective Full Screen Video Social Video In-Feed Video Television 33
34 Channel Effectiveness: Display Display remains moderately effective for app install marketers. Least Effective Moderately Uneffective Somewhat Uneffective Neutral Somewhat Effective Moderately Effective Most Effective Social Interstitial Banner Rich Media 34
35 Channel Effectiveness: Traditional Media Out of home and television are the most promising traditional media channels for app installs. Least Effective Moderately Uneffective Somewhat Uneffective Neutral Somewhat Effective Moderately Effective Most Effective Television Out of Home Print Radio 35
36 Channel Effectiveness: Other Formats Native and playable ads prove the most effective for alternative app install channels. Least Effective Moderately Uneffective Somewhat Uneffective Neutral Somewhat Effective Moderately Effective Most Effective Native Ads Playable Ads Cross Promo App Networks Offer Walls 36
37 Use Rate vs Effectiveness Less Effective More Effective Popular & Effective Full-screen video Social video In-Feed video Social display Native ads Interstitial Banner Less Popular Playable ads Television Outdoor Rich media Cross promo Free app networks Offer walls High Use Low Use 37
38 Top KPIs What the top app install marketers look for
39 Top User Acquisition KPIs User quality is the undisputed top KPI for top app install marketers Not important at all Somewhat important Moderately important Very important Most important User Quality Price Volume Level of Service Targeting 39
40 Most Important KPIs Over Time User quality remains most important, with price increasingly on advertisers minds Q Q % 80% 87% Q % 22% 45% 30% 24% 38% 26% 15% 25% 26% 14% 23% User Quality Price Volume Level of Service Targeting 40
41 KPI Importance: Targeting Least Slight Moderate Very Most As UA costs rise, targeting rebounds in importance Q Q Q3 15% 2% 24% 14% 6% 23% 39% 23% 43% 63% 49% 41
42 KPI Importance: Level of Service Least Slight Moderate Very Most Service is important to nearly all app install marketers Q Q Q3 13% 2% 30% 13% 2.1% 15% 21% 2% 25% 54% 70% 53% 42
43 KPI Importance: Price Least Slight Moderate Very Most App install marketers are becoming more price conscious Q Q Q3 17% 26% 12% 3.4% 22% 9% 8% 45% 38% 57% 63% 43
44 KPI Importance: Install Volume Least Slight Moderate Very Most Volume is becoming slightly less important as attention shifts to quality Q Q Q3 13% 2% 30% 9% 24% 21% 2% 38% 54% 67% 40% 44
45 Looking Forward How campaigns will change in 2017
46 Video Drives Advertiser Excitement 71% of app install marketers are most excited about video advertising in % 4% 2%2% Full-Screen Video Playable Ads Social Video 19% 42% In-Feed Video Television Cross Promotion Radio 25% 46
47 Campaign Projections for 2017 Disagree Agree Compared to this year, in 2017 my app install campaigns will increase in, or shift more toward. App Networks Radio Print Offer Walls Out of Home Interstitials Display Television Android Native Direct Deals ios Programmatic CPI Social CLV Fewer Partners Video New Channels Reach Budget 47
48 Display Rebounds To better leverage retargeting data, advertisers once again looking to increase display budgets. Q1 13 Q % 10% Q2 14 8% Q1 15 Q3 15 4% Q3 16 2% 0% 48
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