Industry Forecasts, Marketing

How Much Do Apps spend on CPI Campaigns

what's the average spend per app on cost per install campaignsAbout 2 weeks ago a friend asked me how much do app companies spend on getting app installs – what’s the average cost per install campaign size. He was pretty happy with the answer I gave him and the research I referred him to so I thought I would share the answer.

Concentration in cost per install campaignscost per install campaigns account for growing part of the total mobile ad spend and forecasted to reach $6.8B in 2019

First, you have to realize that the average spend is really irrelevant here due to strong concentration in the market. According to eMarketer there were $4.6 billions spent on App Install campaigns in the US during 2015. You can assume that the numbers are 2x if you look at the global market so $9.2B. The reality is that the top companies are doing a big chunk of that. You can look at the public companies to get a sense of that:

  • Zynga spent $169M on Marketing in 2015
  • King spent $344M in 2015
  • Glu’s marketing spend was $45M in 2014

The rumor is that Machine Zone and Supercell are spending close to $500M each on cost per install campaigns. The real answer is that the distribution is estimated as:

  • Top 3 companies: $1.2B ($400M each)
  • #4 – #10: $1.2B ($150M each)
  • #11-#50: $4B ($100M each)
  • #51-#100: $2B ($50M each)
  • #101-#200: $0.75B ($15M each)

The average spend per app is around $4,600

If you still want to figure out the average spend you would need to divide the total campaign spend by the number of apps. Surely enough Apple and Google can provide this data. The latest numbers that were released were 1.5M apps for Apple and 1.4M on Google Play –  http://techcrunch.com/2015/06/08/itunes-app-store-passes-1-5m-apps-100b-downloads-30b-paid-to-developers/. Obviously there is a lot of overlap so we can assume 2M apps in total and an average spend of $4,600 per app.

 

 

 

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