AppsFlyer predicts increasing add spending on app installs

Based on a study that crunched the numbers from over 1.3bn installs, mobile attribution firm AppsFlyer has predicted that advertiser spending on app install campaigns will increase by 2.3 times over the next three years.

The study, which covered the UK and Western Europe, also examined data from over 80bn app opens and 290m installs with cost data, accounting for $250m (£189m) in revenue, revealing a number of app marketing trends as well as indicating the path the industry will likely take in the future.

Facebook and Google remained the top two drivers of app installs, but Apple Search Ads and Snapchat both made their first appearance in the top 10 for the first time in 2018.

Video in particular has played a key role in driving app installs and opens from top platforms, including Google, Facebook and others. In 2018, installs from video ads in the UK grew 71 per cent year-on-year.

When it comes to app usage, while figures are on the rise across the board, apps are being used for a shorter period of time. Based on that, marketers are increasing their investment in retention campaigns designed to bring users back to their app, especially in the UK.

App install cost is increasing, with CPI growing by 10 per cent year-on-year, and iOS consistently more expensive at 50 per cent higher than Android. Android was found to provide better ROI than iOS in both the UK and Western Europe.

In more worrying news, app install fraud rates are high, especially in the UK, where high click-flood rates have driven the rate 20 – 30 per cent higher than the rest of Western Europe. Studies have shown that fraud tends to happen in waves, and after a drop in recent months, an incease is expected to hit once again.