For App Marketers, Costs Will Rise This Holiday Season, But So Will Conversions and In-App Payments

By Ran Milo

If history is any indication, app marketers should prepare to spend open up their wallets this holiday season if they plan to compete for new installs. But the good news for those who do invest in increased ad spend during the holidays is that conversions and in-app activity is expected to climb in accordance with costs, providing a Return On Ad Spend (ROAS) that makes all their efforts worthwhile.

We looked at app marketing trends last holiday season (2016), and found that Cost Per Thousand (CPM) and Cost Per Click (CPC) prices increased notably in November and December, sometimes even doubling for certain platforms and during certain peaks. We also found, however, that the conversion rate from clicking on an ad campaign to installing the app also went up in those months. The average increase was 15 percent, but some clients were able to more than double their install rate. Buying ad campaigns on a CPM or CPC basis, the effective Cost Per Install often remained the same as it was before the holidays.

Even better, there tends to be a lot of in-app activity during the holidays, making them the perfect time to ramp up ad spend. Just recently, reported that 90% of mobile gamers will play for at least one additional hour each day during this year’s holidays. All that extra activity is a boon for developers. Last November and December, our clients saw about 15 percent more of their new users convert to spenders, resulting in a 7-Day ROAS that was higher than average for nearly every developer. In many cases, ROAS was 50 percent higher.

It’s important to note that there are, however, two days during the holiday season where app marketers might choose to sit on the sidelines. On Black Friday and Cyber Monday of 2016 we didn’t see higher ROAS across the board when comparing to the rest of November and December.

For more information and tips on how to best promote your app this holiday season, read our article on Forbes

For more advice and a custom proposal on how to allocate your app marketing budget during the holidays, contact us now.

Published on November 17, 2017
Written by
Ran Milo

VP Marketing @ Bidalgo.

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