Fall 2017

App Install Marketing Survey

2

#8

8th iteration of the survey since 2013

Source: AdColony App Install Marketing Survey — Fall 2017

Insights, benchmarks and trends from the top 100 grossing app developers

The Semi-Annual AdColony App Install Survey

100+ 71% 81% 19% $1M+

Detailed questions on app install trends

Survey response rate in 3 weeks

Mobile game developers

Non-gaming mobile developers

Total monthly app install budget

3

Where were the survey respondents from?

Geographic Distribution

20%

26%

54%

EMEA

North America

APAC

Source: AdColony App Install Marketing Survey — Fall 2017

State of the MarketTop app install marketing trends

5Source: AdColony App Install Marketing Survey — Fall 2017

Compared to last year, my UA campaigns have increased in or moved more toward _______ in 2017.

The Winners: Top Campaign Shifts in 2017

Spend Video Reach New Channels CLV Social CPI

Disagree Agree

6Source: AdColony App Install Marketing Survey — Fall 2017

Video accounts for 57% of all app install spend.

App Install Budget Allocation1%1%2%2%

2%2%

4%

5%

2%

7%

7%

8%

1% 21%

8%

27%

Video — in-feed

Video — full-screen

Video — social

Video — television

Print, radio, & outdoor

Other

Display — social

Display — interstitial

Display — banner

Display — rich media

Native ads

Playables

Free app networks

Cross promo

Offer walls

Influencer

7Source: AdColony App Install Marketing Survey — Fall 2017

Over half of top UA teams have 6 or more members.

App Install Teams Are Growing

28%

23% 16%

24%

9%

2 — 3

1 ( just me)

4 — 5

6 — 9

10 +

Q3 '16 Q1 '17 Q4 '17

28%

23%

8%

10+ Person Teams Over TimeTypical UA Team Size

8Source: AdColony App Install Marketing Survey — Fall 2017

On average, advertisers localize for 6 languages and optimize campaigns 5 times per week.

App Install Teams are Busy

4%

22%

18%

13%

15%

29%

Language Localization Campaign Optimization Frequency

5%

22%

35%

24%

14%

2 - 3

1

4 - 5

10 - 19

6 - 9

20 - 29

Every day

Multiple times daily

Every few days

Less than weekly

Once a week

9Source: AdColony App Install Marketing Survey — Fall 2017

Compared to last year, my UA campaigns have increased in or moved more toward _______ in 2017.

The Losers: Campaign Trends Falling Out of Favor

Display Free App Networks Television Out of Home Print Radio

Disagree Agree

Top App Install FormatsUsage, effectiveness, & spend

11Source: AdColony App Install Marketing Survey — Fall 2017

Video leads the way while playables surpass native & in-feed units.

Top App Install Formats by Usage

98%91%

79%79%74%

69%

58%53%

46%39%

32%30%30%

21%

11%

Print, Radio, & Outdoor Influencer Rich media Playables Interstitial display

Television Free App Networks Native ads Social display Social video

Cross promo Offer Walls In-feed video Banner display Full-screen video

12Source: AdColony App Install Marketing Survey — Fall 2017

Full-screen video and social video tower over all other app install channels.

App Install Budget Allocation by Channel

30%

24%

8%7%6%5%4%3%3%3%2%2%2%1%1%0%0%0%

Print Other Offer walls Influencer Interstitial Display Social display

Outdoor Television Free App Native ads Playables Social video

Radio Cross Promo Rich Media Banner Display In-Feed Video Full-screen video

13Source: AdColony App Install Marketing Survey — Fall 2017

Share of advertisers awarding top 2 box responses regarding channel effectiveness at achieving campaign objectives.

Most Effective App Install Formats

82%77%

55%

45%39%

30%25%

20%18%16%15%15%13%13%10%

Banner display Offer walls Free app networks Native ads Social display

Print Rich media display Cross promotion Playable ads Full-screen video

Radio Interstitial display Influencer campaigns In-feed video Social video

14Source: AdColony App Install Marketing Survey — Fall 2017

As more advertisers find success with playable ads, test budgets continue to increase.

The Rise of Playables

Budget Excitement Effectiveness Usage

69%71%

46%

6%

64%

51%

45%

4%

33%33%

25%

2%

Q3 ‘16 Q1 ‘17 Q4 ‘17

15Source: AdColony App Install Marketing Survey — Fall 2017

46% of app install marketers are most excited about playable ads in 2018.

Advertiser Excitement

46%

26%

13%

6%4%

2%2%2%

Social video

Full-screen video

In-feed video

Cross promo

Native ads

Rich media

Social display

Playable ads

Targeting & KPIsWhat matters to top advertisers

Source: AdColony App Install Marketing Survey — Fall 2017 17

User quality & level of service remain top concerns as volume, price, & targeting fall slightly.

Top User Acquisition KPIs

Somewhat important

Not important at all

Moderately important

Very important

Most important

User Quality Level of Service Volume Price Targeting

18Source: AdColony App Install Marketing Survey — Fall 2017

NA advertisers care most about IAP while EMEA & APAC advertisers care most about retention.

Leading Indicators of High Quality Users By Region

NA

74%

82%

26%21%

15%15%

6%

Retention

In-app purchase

Tutorial completion

Session time

Positive user review

Friend invitation sent

Social login

EMEA

100%

81%

44%

31%

13%6%6%

APAC

100%

67%

25%25%

17%

0%

8%

Source: AdColony App Install Marketing Survey — Fall 2017 19

Considered more effective than retargeting, look-alike modeling is utilized by 91% of top advertisers.

Finding Quality Users: Look-Alike vs Retargeting

Look-Alike Modeling Retargeting

9%2%

5%

8%

26%31%

20%

29%

2%

5%

5%

18%

22%

15%

5%

Completely effective

Mostly effective

Somewhat effective

Neutral

Somewhat ineffective

Mostly ineffective

Completely ineffective

N/A (don’t use)

Gaming Advertisers

100%

22%25%

17%17%11%

3%

20

No matter the app genre, top app install marketers rely on CPI.

Outcomes-Oriented Pricing Models Dominate

Source: AdColony App Install Marketing Survey — Fall 2017

CPI

CPA

CPM

CPC

CPE

CPCV

CPL

Non-Gaming Advertisers

100%

47%

13%13%13%13%

0%

Thank you!