App Install Marketing Survey Results · 4 Top 5 Campaign Trends App install budgets continue to...

App Install Marketing Survey ResultsQ3 2016

The Semi-Annual AdColony App Install Survey

2

Insights, benchmarks and trends from the top 100 grossing app developers

#6 6th Iteration Over 3 Years

130 Detailed 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

Based on aggregated market data of top 100 grossing ad spend & install volume.

State of the Market

4

Top 5 Campaign TrendsApp install budgets continue to increase driven by growth in mobile video & global campaigns.

Increase Spend More Video More Geos Partner Consolidation Testing New Channels

73%75%77%

81%89%

78%

68%68%

76%81%

63%61%59%

52%

72%

Q1 ‘15 Q3 ‘15 Q3 ‘16

Source: AdColony Q3 2016 App Install Marketing Survey

2%

Share of Budget

71%

Playable Effectiveness

5

The Rise of Playable

Excitement

25%

Advertisers are impressed & excited about the future of playable ads.


6

Video Grows as Social Plateaus Agree Neutral Disagree


Budgets Shifting to Video

Q1 '15 Q3 '15 Q3 '16

Budgets Shifting to Social

Q1 '15 Q3 '15 Q3 '16

7

App Install Budget AllocationWhat % of your budget do you allocate to each app install format you currently use?

Video and display ads dominate the majority of app install budget allocation for top publishers.

5%3%

11%

22%

25%

33%

Video (non-social)

Social (video & display)

Display (non-social)

Native & Playable

Traditional


Other

8

Video Prevails in the Feed

34%

66%

Rich Media Effectiveness

Top mobile advertisers find video to be the most effective in-feed ad placement for their campaigns.


37%

63%

Banner Display Effectiveness

13%

88%

In-Feed Video Effectiveness

Budget

Video

Reach

Fewer Partners

New

Channels

CLV

CPI

Social

iOS

Programm

atic

Android

Interstitials

Direct D

eals

Native A

ds

Television

Display

Out of H

ome

Print

Radio

Offer W

alls

App N

etowkrs

9

Campaign Shifts in 2016Compared to last year, my app install campaigns have increased in ______, or shifted more toward ______.

Disagree Agree


Top App Install Formats

91%85%

82%

71%71%

64%58%

38%33%

25%25%22%

15%13%9%9%

11

Top App Install Formats by UsageVideo, display, and native ads lead the way.

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


12

App Install Budget Allocation by ChannelVideo, display, and native ads lead the way.

Print Radio Offer walls Cross

promoRich media In-feed video Social display Social video

Outdoor App networks Playable ads Television Banner Native ads Interstitial

displayFull-screen video


24.5%

14.8%

10.3%10.1%9.7%8.8%8.6%

3.0%2.6%2.2%1.6%1.4%1.4%0.3%0.2%0.1%

42.3%

25%

19%

6%4%

2%2%

Video Drives Advertiser Excitement71% of app install marketers are most excited about video advertising in 2017.

13Source: AdColony Q3 2016 App Install Marketing Survey

Full-Screen Video

Playable Ads

Social Video

In-Feed Video

Television

Cross Promotion

Radio

86%

74%

65%

41%39%33%33%

29%26%25%

21%19%

11%

5%

14

Most Effective App Install FormatsShare of advertisers awarding top 2 box responses regarding channel effectiveness at achieving campaign objectives.

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


Targeting & KPIsWhat matters to top advertisers

16

Retargeting CampaignsMore advertisers find retargeting to be effective in 2016 than in 2015.

Retargeting Usage

Q1 '15 Q3 '15 Q3 '16

75%

68%70%

How effective are your retargeting campaigns?

Very Ineffective Ineffective Neutral Effective Very Effective

37%

33%

11%

17%

2%5%

36%36%

18%

5%

9%

34%34%

19%

3%

Q1 ‘15 Q3 ‘15 Q3 ‘16


17

Look-alike CampaignsLook-alike campaigns continue to be both popular and effective at achieving app install goals.

Look-alike Usage

Q1 '15 Q3 '15 Q3 '16

93%93%89%

How effective are your look-alike campaigns?

Very Ineffective Ineffective Neutral Effective Very Effective

77%

16%

7%

44%38%

15%

4%

46%

32%

4%

15%

2%

Q1 ‘15 Q3 ‘15 Q3 ‘16


Targeting

18

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

Key Requirement Nice to Have Not Required


Social Log-In Positive Review Session Time Tutorial Completion Retention Early IAP

71%68%

26%

19%

8%6%

73%

83%

33%

25%

3%2%

76%

89%

33%

11%

0%

17%

19

Leading Indicators of High Quality Loyal UsersWhat are early indicators of a high quality loyal user who is likely to monetize via IAP?


Q1 2015

Q3 2015

Q3 2016

Campaign OptimizationTeam Size & Optimization Frequency

21

Frequent Campaign OptimizationHow often does your team review app install campaign results and optimize accordingly?

78% of app install teams optimize their campaigns multiple times a week, if not every single day.

7%

15%

33%

35%

10%

Multiple times per dayEvery dayMultiple times per weekOnce a weekLess than once a week


22

Campaign Optimization FrequencyOn average, top UA teams optimizes their campaigns 3.25 times per week.

Weekly or Less Every Few Days Daily or More

44%

33%

22%

42%

32%

27%

30%

41%

28%


Q1 ‘15 Q3 ‘15 Q3 ‘16

App Install Team Size65% of UA teams have 4 or more people

23

8%

31%

26%

21%

14%


1 ( just me)

2 to 3

4 to 5

6 to 9

10 +

24Source: AdColony Q3 2016 App Install Marketing Survey

Medium Sized App Install Teams Grow in ProminenceTeams are running leaner than this time last year, with the the average team having 4 members.

1 2-5 6-9 10+

8%

31%

47%

14%18%18%

58%

5%9%

20%

48%

24%

Q1 2015

Q3 2015

Q3 2016

Other CPL CPE CPM CPCV CPC CPA CPI

96%

31%

21%17%17%

4%3%1%

95%

22%

33%

43%

22%

15%12%

3%

25

CPI Dominates as Campaign Pricing ModelCPA becomes more prevalent as CPM, CPC, and CPCV campaigns fall.


Q3 ‘15 Q3 ‘16

Budget & SpendChannels & Methods

27

App Install Budget AllocationWhat % of your budget do you allocate to each app install channel you currently use?

Video and display ads dominate the majority of app install budget allocation for top grossing publishers.

5%3%

11%

32%

48%

Video

Display

Native & Playable

Traditional Media

Other


28

App Install Budget Allocation by ChannelVideo, display, and native ads lead the way.

Print Radio Offer walls Cross

PromoRich media In-feed video Social display Social video

Outdoor App networks Playable ads Television Banner Native ads Interstitial

displayFull-screen video


24.5%

14.8%

10.3%10.1%9.7%8.8%8.6%

3.0%2.6%2.2%1.6%1.4%1.4%0.3%0.2%0.1%

Channel UsageWhat’s fallen in and out of favor

30

Channel Usage Over Time: Tried & True

Video Social Interstitial Display Banner Display

71%

85%89%

98%92%92%

97%97%93%

96%96%98%

86%90%92%

100%

86%83%

94%100%

89%

100%

68%

100%

Q1 ‘13 Q3 ‘13 Q2 ’14 Q1 ‘15 Q3 ‘15 Q3 ‘16

31

The Demise of IncentivizedIncentivized installs fall out of favor as advertisers continue to focus most on user quality

Q1 '13 Q3 '13 Q2 '14 Q1 '15 Q3 '15 Q3 '16

22%19%

54%

47%

64%

100%

13%

22%

41%35%

64%

95%Free App Networks

Offer Walls


Channel EffectivenessWhat’s working for the top app install marketers

Full Screen Video Social Video In-Feed Video Television

33

Channel Effectiveness: VideoFull-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


Social Interstitial Banner Rich Media

34

Channel Effectiveness: DisplayDisplay remains moderately effective for app install marketers.

Least Effective



Neutral

Somewhat Effective


Most Effective


Television Out of Home Print Radio

35

Channel Effectiveness: Traditional MediaOut of home and television are the most promising traditional media channels for app installs.

Least Effective



Neutral

Somewhat Effective


Most Effective


Native Ads Playable Ads Cross Promo App Networks Offer Walls

36

Channel Effectiveness: Other FormatsNative and playable ads prove the most effective for alternative app install channels.

Least Effective



Neutral

Somewhat Effective


Most Effective


Popular & Effective

37

Use Rate vs Effectiveness


Full-screen video

Social video

In-Feed video

Social display

Native ads

Interstitial

Banner

Hig

h U

seLo

w U

se

More EffectiveLess Effective

Less Popular

Playable ads

Television

Outdoor

Rich media

Cross promo

Free app networks

Offer walls

Top KPIsWhat the top app install marketers look for

User Quality Price Volume Level of Service Targeting

39

Top User Acquisition KPIsUser quality is the undisputed top KPI for top app install marketers

Not important at all

Somewhat important

Moderately important

Very important

Most important


40

Most Important KPIs Over TimeUser quality remains most important, with price increasingly on advertisers’ minds

User Quality Price Volume Level of Service Targeting

23%25%

38%45%

87%

14%15%

24%22%

80%

26%26%30%

39%

85%Q1 2015

Q3 2015

Q3 2016


2%15%

43%

39%

2015 Q1

41

KPI Importance: Targeting

6%

23%

49%

23%

2016 Q32015 Q3

24%

63%

14%

As UA costs rise, targeting rebounds in importance.


Least Slight Moderate Very Most

2%13%

54%

30%

2015 Q1

42

KPI Importance: Level of Service

2%

21%

53%

25%

2016 Q32015 Q3

2.1%13%

70%

15%

Service is important to nearly all app install marketers.



17%

57%

26%

2015 Q1

43

KPI Importance: Price

8%

9%

38%

45%

2016 Q32015 Q3

3.4%12%

63%

22%

App install marketers are becoming more price conscious.



2%13%

54%

30%

2015 Q1

44

KPI Importance: Install Volume

2%

21%

40%

38%

2016 Q32015 Q3

9%

67%

24%

Volume is becoming slightly less important as attention shifts to quality.



Looking ForwardHow campaigns will change in 2017

46

Video Drives Advertiser Excitement71% of app install marketers are most excited about video advertising in 2017.

2%2%4%

6%

19%

25%

42%


Full-Screen Video

Playable Ads

Social Video

In-Feed Video

Television

Cross Promotion

Radio

Budget

Reach

New

Channels

Video

Fewer Partners

CLV

Social

CPI

Programm

atic

iOS

Direct D

eals

Native

Android

Television

Display

Interstitials

Out of H

ome

Offer W

alls

Print

Radio

App N

etworks

47

Campaign Projections for 2017Compared to this year, in 2017 my app install campaigns will increase in ______, or shift more toward ______.

Disagree Agree


48

Display ReboundsTo better leverage retargeting data, advertisers once again looking to increase display budgets.

10%

2%

4%

8%

11%

0%

Q1 ‘13

Q3 ‘13

Q2 ‘14

Q1 ‘15

Q3 ‘15

Q3 ‘16


App Install Marketing Survey Results · 4 Top 5 Campaign Trends App install budgets continue to...

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