The click through rates (CTRs) on ads for mobile apps has reached greater heights this year, with CTRs on iOS devices increasing five times and CTRs on android devices increasing to nearly three times in March 2014 as compared to last year. The data was interpreted by mobile app marketing company Fiksu.
The report says that the growth in market effectiveness is due to better targeting, better ad formats (app install, more video), better ads (mobile specific creatives) and better apps (more compelling to download/use).
Significant findings of the report included:
- App Store Competitive Index: The App Store Competitive Index tracks the aggregate volume of downloads per day achieved by the top 200 ranked free iPhone apps in the U.S. The data shows that around 7.1 million iOS apps were downloaded daily in March, which was 41% higher than the previous year.
- Cost Per Install Index: The CPI measures the cost per app install directly attributed to advertising. The CPI for iOS increased up to $0.97 in March- a 2% increase from February and a 20% increase year over year. Whereas in case of android devices, the index dropped to $1.08- 16% decrease from February and 14% decrease year over year.
- Cost Per App Launch Index: The cost per app launch index focuses on engagement and life-time value of mobile users. The index for android devices fell down to $0.10- 5% decrease from February and a 37% decrease year-over-year. While the index for iOS dropped to $0.17- a decline of 10% from February and a 2% hike from the previous year.
- Cost Per Loyal User Index: The cost per loyal user index, people who open an app three times or more, dropped 7 percent, or 11 cents, to $1.45 in March.
With the advent of programmatic and optimization technologies, businesses can now better market their apps. With better tools marketers can leverage the right ad formats and targeting options to reach the right audience.Clickthrough Rate on Mobile App Ads Mounts up Rapidly, Reaches the Highest Number Ever!,