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

App developers spent 293 percent more on Facebook ads in Q2 2015 than in Q2 the prior year, and mobile app installs from Facebook ads grew by 346 percent year-over-year. That’s according to Kenshoo’s latest quarterly report on mobile app advertising.

Spend is being catapulted by rising budgets and more competition. Kenshoo says it is now tracking twice as many mobile app titles compared to a year ago.

While click-through rates have fallen 15 percent year-over-year, click-to-install rates increased by 32 percent, and the cost per install (CPI) fell by 12 percent from Q2 2014.

Where iOS devices once carried considerable CPI premiums, Kenshoo has found that CPI variations between iOS and Android devices narrowed on Facebook over the past year. The average CPI on iOS was just over $1.80 compared to just over $1.20 on Android devices. A year ago, iOS CPI was over $2.00. Consumer apps, such as finance and transportation apps, cost less per install than gaming and other types of apps.

Click-through rates (CTR) between operating systems also narrowed, though CTRs on Android continue to be higher. In Q2, average CTR was just over 1.2 percent on Android devices versus 1.00 percent on iOS.

As for conversion rates, Kenshoo says just under one out of three clicks on a mobile app ad on Facebook turns into an install. Click-to-install rates are slightly higher on Android devices.

About The Author

Ginny Marvin

As Third Door Media’s paid media reporter, Ginny Marvin writes about paid online marketing topics including paid search, paid social, display and retargeting for Search Engine Land and Marketing Land. With more than 15 years of marketing experience, Ginny has held both in-house and agency management positions. She provides search marketing and demand generation advice for ecommerce companies and can be found on Twitter as @ginnymarvin.

(Some images used under license from Shutterstock.com.)