Tag Archives: Mobile Advertising

Sponsored Search Results in Google Play

Google recently announced that over the next few weeks, Google Play ads will begin to appear in the search results on Google Play.

Google shared a gif on how it would look in practice, which looks a lot like how Google delivers sponsored results in web search.

google play ads

For now, this is being released to a “limited set of users… from a pilot group of advertisers”.

This is big news for mobile app marketers and reaction is mixed.

Is this another avenue for the best monetizing apps (currently games) to buy up inventory and the “rich get richer” – resulting in an even worse discovery experience for mobile users?

Or does this open up a brand new channel for publishers to reach their target audience in a new cost-effective way?

First – from Google’s perspective, some of the ad spend that has flowed through Facebook and mobile ad networks can/will now flow through Google.

Why wouldn’t Google do this?

One potential drawback could be that a promoted app could then impact the organic search results.

When users download a promoted app,  the spike will surely result in a higher ranking in  organic search results.  Resulting in more downloads.

Is the real value of sponsored search results in Google Play in the opportunity to spike an app’s organic search ranking?

What about the impact to publishers not named King and Supercell?

With more than 100 billion monthly searches on Google Play – sponsored search represents a huge opportunity for app publishers.

Overall – Google Play ads and sponsored search appears to be a very positive development for publishers.

The current model for advertising is inventory-based, without any real keyword targeting outside of the category of the app the ad appears in.

The likes of King (Candy Crush) and Super Cell (Clash of Clans) eat up a lot of available mobile ad network inventory.  That means – a messaging app competes for mobile app ad inventory with Candy Crush in unrelated apps.

With keyword targeting on Google Play, a messaging app could target a wide range of feature-based keywords and phrases where it just wouldn’t make sense for an app like Candy Crush to bid at the same rates.

Like web search, and organic results in the Apple App Store and Google Play, relevance matters and will increase in significance.

This will be a space we watch closely and plan to share our findings and experiences.

In fact – now is a good time to sign up for our blog!

The Preferred Ad Format for Mobile App Monetization?

Pulling together some of the latest numbers on mobile app monetization trends from various sources – it is clear the gap between mobile usage and ad spend is closing – fast.

The “Mary Meeker Report“, or the annual “Internet Trends” presentation from KPCB is an industry favorite.

The 2014 report might as well have been called “Holy Smokes! – a look at the explosion of mobile”.

Internet Trends 2014 Slide 15 copy

Global Mobile Ad Spend is booming!

eMarketer predicts that in 2015, advertisers will spend $64.3 billion on mobile advertising globally, up 60 percent from 2014. And by 2018, mobile ad spend will reach $159 billion, or 63 percent of global digital ad spend.

eMarketer Predictions copyVideo ads for mobile are booming!

Led by companies including Vungle, Ad Colony and Chartboost, video ads are forecasted to grow at a CAGR of 73% to $4.4b by 2018 in the US alone.

BI Mobile Ad Revenue forecast copy

Forecasts 4 years out, predicted for global spend – while interesting – how does it help me now?

The model for many mobile apps is to optimize an app for max LTV, identify and optimize user acquisition channels, and optimize the app listing for max search/organic exposure.

Ad revenue made up around 40% of total app revenues across Google Play and the App Store in 2014.

As advertising spend moves from TV, Print, Radio and even Web to Mobile, and specifically Mobile Apps – ad revenue stands to become an even more important component of monetizing a mobile app.

Monetizing your app with video ads should be on your radar.

We see an average of $10 eCPMs with 100% fill rates when implementing video ads in our apps.

Of course, optimizing the video ad placement is necessary.  Any new ad format and ad placement should be evaluated using retention and engagement data/KPIs, and not just ad revenues.

But – because mobile video ads monetize so well – you can remove the often ignored banner ads, interstitial ads etc..

One reason adding video ads is growing so quickly is the longer ad format is integrated with unlockable content (virtual currency, customization etc..) as an alternative to an in-app purchase.

Video ads open up the opportunity for “incentivized” or “opt-in” ads.

Users are able to engage more deeply with an app without purchasing content, which has shown to improve retention and lifetime value.

Game Plan for Mobile App success:

  • develop a monthly ASO plan for organic, relevant installs
  • optimize an app with features the market is searching for
  • optimize the app for retention and monetization
  • so LTV>CPI and you or your client can increase margins and invest in new acquisition channels

The data and projections above should illustrate the opportunity in video ads for your mobile app monetization.

Gummicube can help you execute a monthly app optimization strategy, and identify trending feature searches.

Want More Data-Driven, Mobile App Marketing Content?

 

Advertising Mobile Apps Costs and ASO

Mobile App Advertising Costs and ASO

Chartboost, a leading Mobile Advertising Network, reports Cost Per Install (CPI) has increased from $1.66 to $2.69 over the last 12 months – a rise of 62%. The cost per install is often lower than competing traffic channels, and advertisers often wonder how much they should expect to pay per mobile app install. There are six primary factors that influence an advertiser’s CPI.

As mobile app advertising costs rise – demand increases for quality ASO tools and data.

We know download volume and velocity is highly correlated to rankings for top keywords.  So publishers with high user LTVs can and do buy their way to the top of the charts.

Blockbuster studios have optimized lifetime value (LTV) for their gameplays, and are happy to compete with each other for relevant downloads. 

Consider – 4 publishers account for 70% of app installs.

Top Mobile App Publishers

Now we add brands to the mix – who have started to invest in mobile app advertising in earnest. Moving advertising budget allocations away from TV and Print to Digital, increasingly Mobile. Mobile app advertising spend accounted for 7% of global ad spend in 2014.  By 2018, several sources predict 22%.

The competition for mobile app advertising space is increasing and expected to continue to push both mobile app advertising costs, and specifically costs per install, even higher.

This is great for the monetization of ad-supported apps. For these apps – the LTV of a mobile app user increases, because of the increased app advertising revenues. But apps need users while broad mobile app discovery has become “pay-to-play”.

For the 99% of apps that don’t monetize installs (aka: User LTV) at $2.50+, app discovery takes on increased significance.

Optimizing your App Name and Keywords fields for a wide variety of relevant phrases is an essential exercise. Getting your description nailed is key.

Most top publishers have apps that don’t have an LTV of $2.50+, and for those apps – ASO is an extremely attractive, if not primary, marketing investment.

Does this describe your current mobile app advertising effort for each of your apps?:

  • you are buying downloads as part of a launch hoping for organic traffic due to increased visibility from the “paid download” push, or
  • your user average LTV is greater than $2.50 

If not – then having access to the best tools and app store data, and allocating time each month or each app update to a formal ASO process can be your least expensive CPI campaign.

We’ll talk more about “ASO CPI” in this blog. But – let’s start here:

Rising CPI costs means a strong understanding of ASO, and access to accurate app store data is critical to a mobile app’s success.

Let’s say $1k is allocated to ASO per month, per app. That’s assuming a cost for the tools, data and your time.

To match the performance of paid acquisition – a $1k/month App Store Optimization effort would need to generate only 13 new downloads per day.

Mobile App Publishers need a strong grasp of how ASO works, access to accurate data and tools, and a routine focus on keyword (or target phrase) optimization.

At Gummicube – we believe in identifying and ranking for relevant keywords and phrases over trying to land in top 5 of high estimated volume keywords regardless of relevance.  We believe in app store data instead of web data. We provide tools based on real data for measurable app store results.

Want More Data-Driven, Mobile App Marketing Content?

Gummicube wins #Pitchforce competition at #Runway SF

Gummicube announced as 1st place winner of Pitchforce competition.

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Gummicube is shaking things up in San Francisco taking home the gold at #Pitchforce hosted by #Runway SF.  Our business is flourishing as are the download stats for all of the developers that work with us!

Gummicube – the #topemergingstartup in #Silicon Valley and the BEST technology for #AppStoreOptimization