Taking AIM:Top Trends in App Install MarketingCasual Connect Europe

Hi, Amsterdam, Me,The global leader in mobile video advertising, 1.6b+ impressions pmbefore we start hands those who calls themselves as indieHow did we run the survey?

The Semi-Annual AdColony App Install SurveyInsights, benchmarks and trends from the top 100 grossing app developers

#55th Iteration Over 3 Years

100Detailed Questions

60%Survey Response Rate

78%Mobile Game Developers

22%Non-Game App Developers (e.g. entertainment, music, news)

$1M+Total Monthly App Install Budget

FORMAT & DATA

Respondent Profile

The insights we have today Sharing since 2013, trends from the big players

UA TrendsInsights from the Top 100 Earning Mobile App Publishers

theres a lot of data get throughsave time for Qs

Current CPI Trends

%eCPI51%$2.8734%$2.1311%$1.684%$0.88

$2.34 overall eCPI

NAEMEAAPACLATAM, how did this look throughout 2015

2015 CPI Pricing Trends

steady incline for NA, Q4 brand spend comes onlineHow does this look at genre level?

Trends by Genre

CasualMidcoreHardcoreNon-Gaming$1.59 CPI$2.24 CPI$4.83 CPI$2.70 CPI0.97% CTR1.05% CTR0.63% CTR0.58% CTR0.58% IR0.59% IR0.21% IR0.26% IR

IR is tougher for hardcore and non-gaming.Now we know video costs, what about the other formats?

Most Effective App Install FormatsHow effective are each of the following app install channels at achieving your campaign goals?OtherOffer WallsTelevisionNativeProgrammaticInterstitialsIn-Feed DisplayFree App NetworkPlayableCross PromoDirect DealsDisplay / BannersIn-Feed VideoVideo Ads

What is effective = campaign goals, sign-ups, IAPs, level 10, volume, costFree app networks decreasingWhat other trends?

Top 5 Campaign TrendsApp install budgets continue to increase driven by growth in mobile video & global campaigns.TrendMore Video+ 24 ptsTesting New Channels+ 15 ptsIncrease Spend+ 9 ptsMore Geos+ 9 ptsPartner Consolidation+ 7 pts

Biggest shift is more spend towards videowhat do their existing budget breakdowns look like?

App Install Budget AllocationWhat % of your budget do you allocate to each app install channel you currently use?Social and video ads dominate the majority of app install budget allocation for top grossing publishers.

Social

Video

Display

Interstitial

Other

almost 70% social and videoplace for all channel,s but quantity is here social,video. although

Social Spend PlateausFewer advertisers are planning to increase spend on social.Advertisers Increasing Spend on Social

Total Advertisers on Facebook

competition on Facebook is increasing, causing social plateauing?What about types of campaigns?

Look-alike vs RetargetingLook-alike campaigns continue to be favored over retargeting.

UsageIneffectiveNeutralEffective

Retargeting Effectiveness

Look-Alike Effectiveness

Look-alike is where it is at 82% effectivenessretargeting is still useful, butfocus lookalike firstwe know budget share, but what about the actual teams?

Most single person UA teams have grown to 2-3 members since Q1.

Many 4-10 person teams have grown to 10+ since Q1.

App Install Teams Continue to Grow in SizeTeams of 10+ have doubled in the last 6 months at the expense of smaller single person teams

in 2015 we saw an amazing shift from one person teamsof course one of the other big trends is

The Rise of TelevisionAdvertisers are turning to television to drive mass awareness and improve install rates for mobile titles.

growth from Q2 2014 to Q3 of 2015, dual screening improving videolets look at how we can be creative

Creative Best PracticesHow Top Publishers are Driving High Quality Installs

As a video network, lots of informationTips and tricks on creativesCompeting with creatives

Optimal Video LengthVideos :23-29s in length perform best overall

Duration Sweet SpotVideos 23-29 seconds in duration have seen the strongest overall install performance

Nonstandard TimesNonstandard times perform well on mobile, freeing publishers from the confines of traditional :15s and :30s spots

Trend Towards Short-Form Breakthrough AdsSocial feed-based environments require shorter, more engaging and breakthrough creative

INSTALL RATES

different campaigns different metricshow can we tell a story in 8 seconds?Does it differ by genre?

Top 3 Creative Features by Genre: Optimizing for Installs

Action GamesAdventure GamesArcade GamesBoard GamesCard GamesVisual EffectsVisual EffectsLive ActorsNarrationHand InteractionNarrationGameplay FootageNarrationGameplay FootageFeatured CharactersStrong Musical EndingFeatured CharactersVisual EffectsVisual EffectsVisual Effects

Casino GamesPuzzle GamesRacing GamesSocial GamesStrategy GamesFeatured CharactersLive ActorsFeatured CharactersFeatured CharactersLive ActorsHand InteractionGameplay FootageNarrationGameplay FootageHand InteractionText OverlaysVisual EffectsGameplay FootageNarrationGameplay Footage

hopefully your game fits hereso what do we mean these traits?

Gameplay Footage & Timelapse ProgressionShowcasing a timelapse of game progression gives the user a better sense of gameplay.

Best For Strategy GamesRole Playing GamesAdventure GamesSimulation GamesStory-Driven Games

speed up the gameplay for a bigger flavour Feature Characters that consumers will love (or hate)

Featuring CharactersShowcasing characters personalities maximize chances of piquing the users interest.

Best ForRacing GamesMusic & EntertainmentSocial & Casino AppsRole Playing & Adventure GamesArcade Games

we see Gameplay here, character,the use of effects marvel:

Enhancing Gameplay with Special EffectsComplement gameplay footage with custom animation to improve performance by up to 50%.

Best ForArcade GamesAction GamesAdventure GamesSimulation AppsPuzzle & Board Games

MarvelLive action

Live Action for GamesUse a mix in-game footage and live action to improve mass appeal and pique some users interest.

Best ForStrategy GamesAction GamesSimulation GamesArcade GamesPuzzle Games

tell the story of our product in increasingly more creative waysbrands can do it too:

Live Action for BrandsShow how the app fits into the lives of potential users with live action shots integrated with the app experience.

Best ForProductivity AppsBusiness AppsHealth & Fitness AppsNews AppsFinance Apps

Overlaying Custom Animation

Custom Animation

Improving PerformanceVideos utilizing both in-app footage and custom animation have:26% higher CTR and 19% better CVR than in-app footage only videos50% higher CTR and 39% better CVR than animation-only videos

Male-focused app UpliftCombining custom animation with in-app footage provides a 30% uplift to video install rate. Male-oriented action titles show up to a 50% lift in performance.

it visualises the fun, makes it clearerhere we can see in terms of converse the benefitsespecially on male focusedwhen youre fine-tuning, don't forget the importance of audio

Music and Sound EffectsInclude audio that conveys the mood, pace, & style of the app to pique interest.

Best ForMusic & EntertainmentSports & Lifestyle AppsRacing GamesAction & Adventure GamesPuzzle & Arcade Games

Pocket Gems - Use screen call outs

On Screen CopyUse lower third callouts to highlight features without blocking action.

Best ForEducational & ReferenceMusic & EntertainmentPhoto & VideoShopping & LifestyleFinance

CTRIR+ 11%+ 12%

Leverage branding and consumer trusted IP where possible

BrandingOpen with app & publisher logos to leverage existing brand recognition & equity.

Best ForEstablished PublishersSports & EnertainmentMidcore GamesTravel AppsProductivity & Reference

Is localisation important?

LocalizationLocalizing content yields better performance for geo-targeted campaigns.

Install Rate Boost with Localization+ 3%+ 16%+ 37%+ 41%+ 44%+ 48%

in certain markets yes, it can affect install ratemake it funny

Making it Fun(ny)Utilizing humor with mass casual appeal showcases how fun gameplay is and piques user interest.

Best ForAction & Adventure GamesMass Casual GamesLifestyle & EntertainmentMidcore GamesCharacter-Driven Games

go behind the scenes

Going Behind the ScenesGive the users a behind-the-scenes view while showcasing in-app aesthetics.

End on a fun note, be creative and be ridiculous

The Ridiculous FactorFeature outlandish storylines and app features to pique interest and drive high conversions.

Let us help you, canoe daunting but its excitingKeen to speak with all developers, thank you

Paul WestHead of Performance EMEA

paul.west@adcolony.com@Pau1WestThank You

Additional TrendsInsights from the Top 100 Earning Mobile App Publishers

Top App Install Formats by UsageVideo, display, and interstitials lead the wayPrintFree App NetworksTelevisionNative AdsInterstitialsOut of HomePlayable AdsDirect DealsIn-Feed VideoIn-Feed DisplayOffer WallsCross PromoProgrammaticDisplay / BannersFull Screen Video

Campaign Formats Losing FavorFewer app install advertisers increasing spend on less interactive & incentivized ad formats.

Shifting to Video

Top 3 Performing Segments in 2015

Agree

Neutral

Disagree

Shifting to Programmatic

Shifting to SocialApp install budgets continue to shift toward video, social, and programmatic.

Campaign Shifts in 2015Compared to last year, my app install campaigns have increased in ______, or shifted more toward ______.

The shift toward mobile video is accelerating with 24.1% more respondents stating that they have increased mobile video spend since earlier in the year.

Focus on Video is AcceleratingApp install teams continue to rely on mobile video more than ever before

1H 2015

2H 2015

Increase

Maintain

Decrease

Most Exciting App Install FormatsWhich UA channel are you most excited about in 2016?DisplayInterstitialsPlayable AdsTelevisionSocialVideo

App Install Sources over TimeTried & TrueQ1 13Q3 13Q2 14Q1 15Q3 15Video Ads100%100%100%98%97%In-Feed Display68%94%92%96%97%Interstitials100%83%90%96%92%Display/Banners89%86%86%93%92%

Video, display, and interstitials lead the way as native ads and programmatic emergeUp & ComingQ1 13Q3 13Q2 14Q1 15Q3 15In-Feed Video69%52%86%Native Ads53%Programmatic49%

DecliningQ1 13Q3 13Q2 14Q1 15Q3 15Direct Deals63%72%59%54%44%Playable Ads24%Free App Networks95%64%35%41%22%Offer Walls100%64%47%54%19%

TraditionalQ1 13Q3 13Q2 14Q1 15Q3 15Television22%35%36%Out of Home6%15%10%Print0%0%2%7%10%

Format and Channel Usage over TimeFull screen video, in-feed video, television and interstitials lead the way while in-feed, native, programmatic, and playable ads emergeTraditionaltelevision, out of home, printUp & Comersin-feed video, native ads, programmatic, playable adsDeclinersdirect deals, free app networks, offer wallsTried & Truefull screen video, in-feed display, interstitial display & banners

Emerging Mobile App Install ChannelsNative, playable & programmatic ads emerge and grow while in-feed video continues to growPlayable AdsProgrammaticNative AdsIn-Feed Video

Tried & True App Install ChannelsVideo, in-feed, display & interstitials continue as top app install channels.InterstitialsDisplayIn-Feed DisplayVideo

The Demise of IncentivizedIncentivized installs fall out of favor as advertisers continue to focus most on user qualityFree App NetworksOffer Walls

Targeting

Which targeting parameters are most important and help maximize the performance of your app install campaigns?

Top User Acquisition KPIsUser quality is more important than ever before.

Retargeting CampaignsRetargeting campaigns continue to have mixed results

Retargeting Campaign UseQ1 2015Q3 2015

How effective are your retargeting campaigns?

Look-alike CampaignsLook-alike campaigns continue to be both popular and effective at achieving app install goals

Look-alike Campaign UseQ1 2015Q3 2015

How effective are your look-alike campaigns?

Frequent Campaign OptimizationHow often does your team review app install campaign results and optimize accordingly?95% of app install teams optimize their campaigns multiple times a week, if not every single day.

Campaign Optimization FrequencyTop grossing developers are optimizing campaigns more frequently than ever before

Yes

NoDo you localize creative for your UA campaigns?

UA Campaign Localization

How many countries do you localize for?

< 5

5 - 10

11 - 15

16 +

Most Exciting App Install FormatsWhich UA channel are you most excited about in 2016?DisplayInterstitialsPlayable AdsTelevisionSocialVideo

Campaign Trend ForecastAs budgets shift to video, social steadily declines.

Top Campaign Trends in 2016App install budgets continue to increase driven by growth in mobile video & global campaigns.

2016 Top App Install TrendsWhere app install advertisers plan to shift their campaigns in 2016.

2016 Top App Install Trend ForecastWhere app install advertisers plan to shift their campaigns in 2016.1H 20152H 20152016 Forecast

SLIDE: Continued Consolidation of partnersAre there any stats on the number of companies in the app install market? (Molly has itpublished last week)

STORY TO TELL ON A NEW SLIDE: Budgets are going up. more choices (companies) than ever before, but the money is being spent with fewer partners.

While CPI remains important, more advertisers are shifting their focus to acquiring high value users to improve overall return on ad spend

The Cost of a User: CPI versus Lifetime ValueApp install teams will continue to be more focused on customer lifetime value than cost in 2016

CPI

LTV

More Focused

No Change

Less Focused