Report: Android cost-per-install rates less than half of iOS counterparts

iOS may be the more expensive platform for mobile advertising, but the results could be worth it, based on a recent study from Kenshoo. The firm used aggregated data comprising more than $19 million in advertiser spend and more than 10 million app installs, targeted across more than 100 countries worldwide.

  • Android users are more likely to click on a mobile app ad, but once they click, iOS users are more likely to install an app.
  • The cost of a mobile app install, however, only rose 19 percent during the period of the study. 
  • Overall, monthly CPM rose 103 percent  over the course of the entire year. Gaming and e-commerce impressions cost more than those for other consumer apps.
  • The overall rise in monthly cost-per-click (CPC) was greater than that of CPM over the 12-month period, with December showing a 179 percent increase over January.
  • Mobile app installs via mobile ads were up 182 percent, though overall click-through rates (CTR) were down 27 percent over the study period. 

"Ensure you are measuring post-install conversions and other in-app actions, measuring across all key performance indicators and understanding user lifetime value (LTV)," the report says. "Click to install rates increasing likely signals better targeting both on the publisher side and the advertiser side and such targeting will be critical for advertisers to continue to enjoy stable CPIs as competition continues to heat up."

As the use of in-app purchases continues to attract controversy and paid apps remain difficult to sustain, it should be some relief for developers to see that mobile ads seem to be making huge strides as a form of monetization. As the Kenshoo report reveals, however, it's all in how you approach it. Marketers are likely to get more choosy about starting with a platform they believe will convert consumers quicker, then make changes later as they optimize campaigns. As a result, developers shouldn't necessarily expect to see a major windfall from mobile advertising right away, but at least there's some indication the industry is getting a better handle on how to make money via apps. 

For more:
- get the full report here

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