Advertisers using mobile app ads on Facebook and Instagram to promote their own apps boosted downloads by 196 per cent in the final quarter of 2015, according to a study.
The year-on-year increase comes as Kenshoo’s report finds that spend on mobile app ads jumped 155 per cent in the same period.
Another key takeaway was that app install ads on Instagram generated more than a fifth of all app install ad clicks in the last four months of 2015. Researchers suggested that Instagram’s app advertisers can acquire new customers at a lower cost compared to other channels, due to those ads being consistently at a lower price than other Facebook ad placements despite delivering “nearly identical click-through rates”.
“Marketers have embraced the influx of new ad types, publishers and tools to tailor their mobile app campaigns for success, but the evolution of the ecosystem is just beginning,” said Chris Costello, director of marketing research for Kenshoo.
“Incorporating additional elements of the app experience like in-app engagement and lifetime value are the next steps for marketers in optimizing app campaigns to their specific goals and maximizing the app marketing opportunity.”
Apps are fast emerging as a major focus for advertisers in 2016. Snapchat alone, is garnering much interest from brands, while the industry tries to anticipate how WhatsApp offsets its decision to scrap the annual fee it charged users earlier this year.