Considering the popularity of mobile devices these days, it shouldn’t be any surprise that a lot of companies are looking to invest in mobile app installs, as that can be a real draw for their individual programs and games. But now, social networks are vying to get a bigger piece of the action.
Per Business Insider, a report from BI Intelligence indicates that US mobile app install ad revenue will reach $4.6 billion this year, and extend even further in just a few years’ time, up to $6.8 billion by the time 2019 rolls out. This creates a compound annual growth rate of 14 percent from last year, with mobile app install ads accounting for about 30 percent of overall mobile ad revenue.
As you can see from the chart, the increase is steady over each period, starting at $3.6 billion and nearly going double within the five years’ time.
There have been other takeaways from the report as well, including:
- Mobile app-install ads are becoming quite popular ad units with different app publishers — and not just games.App marketers, including those in eCommerce and brands, feel that these ads are helping increase both downloads and measurable ROI. Social networks also take part, mainly because ads can be sold at a higher rate.
- Easy-to-measure ROI drives demand. As an app-install ad is downloaded, customers’ activity in the app, including “lifetime customer value,” can be attributed to that ad.
- Mobile app install ads are higher than standard units on Facebook, mainly due to performance and targeting. The report covers CPM pricing and CTR rates, when compared to the typical Facebook ad.
- Prices will continue to be steady, while there will be an increase in supply. The mobile install ad has matured quite a bit over the past few years, and supply is becoming much more available through the likes of Twitter and Google. Due to the healthy increase, these aren’t likely to decline.
- Top mobile publishers and networks will compete for mobile app-install ad dollars, as well as for specific app developers. Twitter and Facebook have been vying for the attention of key app builders in an attempt to increase app installs, complete with tools and analytics to help them get the job done. The ads in general manage to generate one-third of all mobile ad revenue.
The full report can be found here.