Cost of mobile advertising campaigns varies greatly throughout the year, according to Fetch report
The latest FetchMe report from mobile marketing agency Fetch finds that incentivised and non-incentivised eCPI (effective cost per app install) rates change drastically month-by-month, signifying a strong variance in the price of acquiring users throughout the year. Understanding price variations of inventory can help marketers to tap into new opportunities and launch more effective mobile ad campaigns.
Standard (incentivized) user acquisition inventory gets more expensive as high-quality (non-incentivized) acquisition inventory becomes cheap. The below graphic shows the “February effect” which is due to a significant change in consumer behaviour in installs following the post-Christmas month of January. However, eCPI rates grow due to marketers continuing to spend. The summer months are characterised by a shift in demand that results in a price shift. Quality-driven inventory is expensive then, but user acquisition is cheap.
Non-Incentivised vs. Incentivised eCPI per Month
Dan Wilson, Head of Data, Fetch, explains:
“Most marketers don’t change the way they plan and buy media during the period from January to February, however they need to change their approach as these are two distinctly different months from a consumer acquisition perspective. In January during the post-Christmas period, many people are still getting to know their brand new phones and downloading apps, whilst in February a far more regular mobile engagement pattern is established. This makes acquisition far easier in January than it is in February. At Fetch, we apply these insights to drive highly effective and well-targeted media campaigns for mobile-first advertisers.”
When looking at a week-by-week comparison it becomes apparent that expensive weeks are built-up to. They create periods of more expensive inventory. Usually budgets are becoming exhausted towards the end of the month resulting in weaker demand.
A week-by-week comparison of eCPI
In addition, the report finds that non-incentivised user acquisition is cheapest on Saturdays. However, it is more cost-effective mid-week because the eCPI remains above average at weekends and the start of the week. Users are flooded with advertising during weekends and the start of the week which results in higher acquisition costs.