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How effective are your Instagram & mobile app ads?

While Instagram reached 200,000 advertisers recently, mobile app ads have also risen leading to app installs increasing 196 per cent year-over-year. A Kenshoo report highlighted that the total spending increased 155 per cent year-over-year and there was an overall decrease in the cost per install (-14 per cent) YoY.

Instagram ads have started proving effective for mobile app advertisers as both clicks and app installs through the Facebook-owned app exceeded the share of total ad spend since Q3 2015. App install ads on Instagram delivered more than 20 per cent of all app install ad clicks in Q4. The report outlined that Instagram provides an opportunity for app advertisers to acquire new customers at a lower cost than other social ads, because Instagram ads have been consistently lower in price than other Facebook ad placements, while delivering nearly identical click-through rates.

The report also highlighted that impressions in mobile app advertising increased 187 per cent YoY, while clicks increased 280 per cent YoY. Cost per thousand impressions (CPM) decreased 11 per cent YoY; cost per click (CPC) decreased 33 per cent YoY and click-through rate (CTR) increased 32 per cent YoY.

Gaming apps lead the way as app install ads for gaming apps were priced higher for CPM and CPC than their consumer counterparts (USD 6.18 and USD 0.67 vs. USD 3.15 and USD 0.28, respectively) but once consumers click on a gaming app ad, they are much more likely to install (39 per cent vs. 11 per cent) resulting in a drastically reduced cost per install (CPI) (USD 1.73 vs. USD 2.70) justifying the investment in garnering impressions and clicks.

“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. 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 maximising the app marketing opportunity,” said Chris Costello, director of marketing research for Kenshoo.

Shubhi Tandon

Shubhi Tandon is the Assistant Editor at Digital Market Asia. Fascinated by the evolving digital media industry, she has focussed on tracking developments in the Asia Pacific market since 2014.