Data gathered by BI Intelligence shows mobile app-install advertising revenue for 2015 will reach at least $4.6b in the U.S. alone, and go on to top $6.8b by the end of 2019. It estimates that in 2014, around 30% of ad revenue came from mobile app-install ads, and called them “an essential tool for apps seeking to stand out among the millions of mobile apps available.”
BI Intelligence’s graph shows the projected increase in revenue from mobile app-install ads
Why are they so popular? The report offers several reasons. App-install ads work for many different publishers, not just those who make games. App marketers like them because they generate downloads, and have an easily measured ROI. It continues to say, “Social networks and ad exchanges like them because they can sell the units at significantly higher prices than other ads.”
This is apparently true on Facebook, where the enhanced targeting capabilities and improved performance are cited as the reason for a higher than standard cost. Despite this popularity, app-install ad prices remain steady, and they are referred to as a “fairly mature ad unit,” with notable competing supply through Google and Twitter. It’s added prices are unlikely to fall due to continued wide demand. Social networks are also using app-install ads, complete with analytics and developer suites, to attract developers to their advertising networks.
If the report’s predictions are accurate, revenue from mobile app-install ads will increase by $800,000 over the coming year, reaching $5.4b in 2016, before slowing slightly and taking a further two years to rise by another billion.