– Due to increased competition in the App Store, the number of installs required for a Top 10 Ranking in the US rose 25%
– The effective cost per download for gaming apps rose 120% over one and a half years in Germany, more than in other European countries: UK +100%, Italy +60%, France +25% and the US with +65%
– This development is slightly less extreme for non-gaming apps: US + 67%, Germany +80%, UK +65%, France +52% and Italy +82%
– Budgets are increasingly flowing towards retargeting campaigns, which increase the efficiency of app advertising
Globally, Cost Per Install (CPI) rates for app boost campaigns tend to be rising. This is evident in Trademob’s International CPI Index for 2014, published today by one of the leading international platforms for programmatic mobile app advertising. The greatest increase in costs, compared to the 2013 index, came from Germany with an increase of 120% in effective cost per install (eCPI) rates for gaming apps, rising to EUR 0.44 on average. Non-gaming app eCPIs in Germany rose 80% to EUR 0.81 on average. In boost campaigns, an initial paid boost in downloads results in a higher ranking in the App Store, which results in an increase in organic downloads of the app. The eCPI of the campaign is calculated by taking the total downloads (paid and organic) which result from the initial paid boost.
More downloads required for a top ranking in the iOS App Store
In addition, the number of downloads required for a top ranking in the App Store rose significantly. The US market demands a six-figure number for the fist time: the app needs to have at least 100,000 downloads within 72 hours to reach the top ten ranking. This represents an increase of 25%. In Germany, the figure rose 10% to 16,500. However, it should be noted that a top ranking no longer brings all the organic downloads it used to. Gaming apps used to result in one organic download per paid download, now it’s been reduced to a proportion of 0.9. For non-gaming apps, the figure has dropped from 0.65 to 0.6. This results in boost campaigns becoming more expensive.
Heiko Genzlinger, CEO of Trademob, comments: "Boost campaigns are a tried and tested method of increasing an app’s user base. However, since competition is increasing and the costs of acquiring users are rising, advertisers should consider focusing on leveraging the potential of their existing users. Inactive users can be brought back to the app through the use of retargeting, for example. Retargeting can also increase engagement of active users, thereby waking sleeping giants. Since it costs much less to reactivate users than it does to constantly acquire new ones, retargeting can significantly increase the efficacy of app advertising."
Trademob analyzed data from 85 international boost campaigns over a period of nine months (January 2014 to September 2014) and compared this to data from a previous study, which was run from August 2012 to March 2013 (72 campaigns). The infographic offers a glimpse into the development of CPIs as well as the effective cost per download, which includes organic downloads. Prices can vary depending on the genre, user base, popularity, quality and day of the week. All figures are average values and relate only to boost campaigns. CPIs for long-term display campaigns differ. Trademob also shows how many downloads advertisers need in order to rank in the top ten downloaded apps of the iOS App Store.
Trademob is a leading international platform for programmatic mobile app advertising, helping advertisers and agencies reach their performance and branding goals while maximizing their ROI. Trademob’s proprietary advertising technology is coupled with an extensive network of several hundred international mobile partners, reaching over 1 billion users worldwide. The data-driven company specializes in connecting advertisers with the right target group in the right environment at any point in the app’s lifecycle, from user acquisition through to retention and retargeting using real-time bidding technologies and its own DSP.
Trademob was founded in 2010 in Berlin, Germany and serves a large number of international clients, such as eBay Kleinanzeigen, Lieferheld, PAYBACK and bwin.party. You can find more info and get in touch with Trademob at http://www.trademob.com, @Trademob and on the Trademob blog.