App Ad Spend On Facebook Up Nearly 300 Percent, Cost Per Install Down YoY In Q2

Apps istockphoto6 In Q2 of 2015, App developers ended up spending 293 percent more than in Q2 of the prior year, while mobile app installs from Facebook ads grew by 346 percent year-over-year.  This information has come from the latest quarterly report on mobile app advertising by Kenshoo.

The reason behind such a growth in spending is due to rising budgets and more competition.  According to Kenshoo, they are tracking twice as many mobile app titles compared to last year.

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Although CTR has fallen by 15 percent YoY, click-to-install rates have increased by 32 percent, while the cost per install (CPI) fell by 12 percent from Q2 2014.

Even though iOS devices once had some considerable CPI premiums, it was found by Kenshoo that CPI variations between iOS  and Android devices narrowed on Facebook over the last year.  The average CPI on iOS was just over $1.80, and $1.20 on Android.  A year ago, iOS CPI was over $2.00.  Some apps, such as finance and transportation apps will cost less per install than gaming and other types of apps.

The CTR between operating systems have also been narrowing, thogh CTRs on Android are still higher than iOS.  In Q2, the average CTR was just over 1.2 percent on Android devices compared to 1.00 percent on iOS.

When it comes to conversion rates, Kenshoo found that just under 1 out of 3 clicks on a mobile app ad on Facebook ended up turning into an install.

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