Tenjin’s 2017 Ad Spending Report - Facebook and Google dominate; Japanese and US markets highly sought after
by Davis Rhodes
Tenjin just released its 2017 Ad Spending Report and mobile marketers should take notice. The company has condensed its findings into six succinct briefs.
Facebook and Google still on top
The two giants continued to dominate as sources of ad spend. Collectively, Facebook and Google accounted for almost half of total spending.
United States had the most sought-after users
The United States led the way in ad spend for 2017. The UK comes in second with 7.46% of ad spend.
CPI costs are higher on iOS than Android
CPI refers to the cost per install. For example, if your CPI is $3, you are paying $3 for every person that clicks your app advertisement and subsequently downloads said app. Studies have shown that while Android users on average download more apps than their iOS counterparts, iOS users on average spend more money in the App Store. By investing in CPI rather than CPM (cost per thousand impressions) or CPC (cost per click), app developers guarantee that their money is going towards app installs and consequently their app moving up the charts.
CPI = ad spend / # of new app installs
Ad networks with lower average CPI are better at targeting
Networks with lower average CPI are able to be less expensive by finely tuning targets.For example, if you are running an advertising campaign by placing ads in mobile games and measuring based on CPI, ad networks that are able to drive installs from the smallest number of ad placements are going to be the most cost effective. This is achieved through a better understanding of target demographics. Less effective ad networks will require more impressions to drive installs and thus be more expensive.
Travel applications demand the highest average CPI
Placing ads in travel applications this past year proved to be expensive. It makes sense — travel apps have users who are spending large sums of money booking holidays and are therefore an enticing ad platform for app developers. Role playing games are second, which also makes sense considering the amount of time and often money invested by players. Puzzle games have the lowest average CPI at $0.67, presumably because they are harder to monetize.
Japanese users are the most expensive to target based on CPI
In 2017, Japanese users were the most expensive to target based on average CPI. Understanding the costs associated with launching campaigns internationally is tremendously important in crafting an effective, targeted campaign.
Impact on mobile marketing
Tenjin’s report highlights the importance of understanding who you’re trying to target. If you choose CPI as your measurement tool, be sure to understand what markets you are targeting and what mediums they best respond to. In mobile marketing, staying on top of trends is paramount. Tenjin’s roundup of 2017’s ad spending trends is a great way for marketers to pivot their strategy for 2018.