Facebook mobile app ad spend has jumped 235%

According to research from Kenshoo, spend on Facebook mobile app ads rose a whopping 235% last year. Interestingly, click-through rate (CTR) fell as competition increased.

According to research from Kenshoo, spend on Facebook mobile app ads rose a whopping 235% last year. Interestingly, click-through rate (CTR) fell as competition increased.

Other insights from the report include:

• Marketers need to spend more than double the amount on mobile app ads to trigger an app installation on Apple iOS devices as they do on Android devices. In other words the cost per install (CPI) of Facebook mobile app ads on Apple devices is more than double that for Android devices. This could indicate either greater competition, perceived value, or just a price premium on Apple devices.

• Across app types, gaming apps carried higher CPI costs for Facebook mobile app ads than ecommerce or general consumer apps.

• The cost-per-click (CPC) for Facebook mobile app install ads rose over the twelve month period, with December showing a 179% increase over January. The CPC on iOS devices was 163% higher than on Android devices

• While the overall CTR for Facebook mobile app ads decreased over the year, ads on Android devices deliver a higher CTR than those on iOS devices – in other words ads on Android devices are more likely to drive engagement.

• Facebook mobile app ads for consumer and eCommerce apps had relatively higher CTRs (and hence engagement) than ads for gaming apps, possibly because of the greater competition in the gaming sector.

• The rate at which clicks on Facebook mobile app ads convert to mobile app installs increased by 135% over the year according to the data, which shows that when people do click on an ad, they are much more likely to install the app on their phone. This indicates an improvement in targeting and/or ad creative and messaging on the publisher side and the advertiser side.

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