When looking at your user acquisition (UA) budget, you likely have multiple buckets. But are you getting the best bang for your buck? A mobile brand awareness campaign can drive more app installs, and a better return on ad spend (ROAS).
If you’re reevaluating your budget, it’s important to look at the potential for reach and engagement in mobile vs. desktop.
Apps Pointing Large Dollars at Display Ads Are Missing Opportunities
Are you looking to jumpstart UA for your app? Maybe it hasn’t been a focus, but based on consumer behavior, which includes 89% of mobile usage time in-app, it would benefit you to drive traffic here.
Many brands look to traditional display advertising to drive more app installs, like those video ads that pop up between levels on a game. But are those intrusive ads the best route? Not always. It’s time to diversify your advertising mix with mobile brand awareness campaigns.
Let’s compare the numbers.
Display Ad Statistics
A great analysis of display advertising revealed the following:
- Google display ads have an average CPM (cost per mille) of $3.12 and CPC (cost per click) of $0.67.
- Google search ads have an average CPM of $38.40 and CPC of $2.32.
This varies widely depending on the industry, as some are much more competitive than others.
Regarding the average CTR (click-through rate) for display ads is .46%. It also varies by industry, with real estate at the top and technology at the bottom.
If you’re buying display ads at a CPM cost, you will pay $320 for 100,000 impressions.
If you’re paying per click and are at the standard CTR, you’d earn 4600 clicks per 100,000 impressions at $0.67 for each click. That’s $3,082. Just because they click doesn’t mean they’ll download the app. You’re only paying for impressions and clicks, not an actual download of an app.
CPI Ad Campaigns
The alternative is to use a CPI (cost per install) campaign across mobile devices. In this model, you only pay for the app installs. So, what would you spend on these?
The average mobile app CPI is $5.28 in North America, $1.03 in EMEA, $0.93 in APAC, and $0.34 in Latin America. For iOS, it’s $3.60 globally and on Android, it’s $1.22. Several factors impact CPI: location, platform, ad network, and category.
So, if you take the spend for the clicks in the example above, your total was $3402. If you’re in North America, paying $5.28 for an install would add 644 new users. With display ads, you may not be able to attribute any installs to the ad spend. You only know clicks, not downloads.
Where to Allocate Your Budget
A mobile brand awareness campaign that leverages a rewarded ad network will increase your users. That’s its point, and you can target it in specific ways. Rewarded ads allow you to expand your reach with diverse audiences across multiple segments.
Comparing this to a general display awareness campaign seems almost unfair, considering how low it will perform. In many cases, the creative for these ads is simply a logo and a small bit of copy. It’s typically not compelling or relevant.
Take this example from a music streaming client. They always want to rank in the top 10 of their category. Category ranking depends on installs. We launched a brand awareness mobile campaign that directly drove over 10,000 installs per day. As a result, they gained greater app store visibility or organic uplift. This led to an overall month-over-month growth of 10% in organic installs.
What would an increase of 10% in organic installs mean for your app?
Had they decided to put that money toward a general display ad, it’s unlikely they would have gained more uses or visibility.
Spend Smarter: Why Chose CPI Campaigns Over Traditional Display Ads
- You only pay for app installs with CPIs, not clicks or impressions.
- You know the actual cost to acquire a user.
- Combining CPI data with behavioral data enables you to better optimize conversions for market segments.
- CPIs generate brand recognition and affinity at scale cost-effectively. That makes them ideal for brand awareness campaigns.
- Display ads only deliver clicks, which could be low if the traffic on the sites where they appear isn’t stable. It could also be low if the site has high traffic and lots of ads cluttering up the screen.
Increase Installs with Mobile App Campaigns Designed by AdAction
As a leader in mobile app campaigns, we have the expertise, experience, and access to users to ensure you accomplish your UA goals. With a wide variety of CPI options, working with our team will put your budget to work in the most effective way. Learn more about our solutions by contacting us today.