Dive Brief:
- According to research from Yahoo, ads are effective in driving new app downloads as well as jump-starting dormant app usage.
- Getting app users to start using dormant apps is important because the study found that almost two-thirds of dormant apps are deleted within three months.
- Last year, research from eMarketer found mobile app install ads were expected to reach $3 billion on 2015, accounting for more than 10% of mobile ad budgets with an 80% year-over-year increase in spending.
Dive Insight:
The App Lifecycle, a study by Yahoo, found that app downloaders are both active and fickle. Over 64% of what Yahoo described as “dominant” smartphone users engage in app replacement at least monthly, and 34% of all smartphone users replace apps more than once a week.
"The Yahoo App Lifecycle study revealed that online ads prompt nearly 50% of users to either download new apps or to restart using dormant apps on their phone. The most effective ad formats proved to be app download and online video ads, with content and entertainment categories having the most success. Additionally, apps that are featured in the app store influence three in five users to download," Lauren Weinberg, vp of global research and insights at Yahoo, told Marketing Dive.
One thing that should give marketers some hope in app marketing is that not only is advertising an effective way to drive new app downloads, it also helps nudge people into using apps that have fallen dormant and in danger of being deleted.
In terms of downloading new apps, ads were among the top five triggers across a variety of categories for luring users. For entertainment, connect, manage/navigate, search and travel categories ads came in at number four, and for content and shopping at number five. For reengaging dormant app usage, ads were most effective for content and entertainment apps.
"Developer’s should optimize their app presence to deliver on relevancy for the consumer, encourage reviews and set the right pricing," Weinberg said.
According to the report, within three years, 67% of U.S. consumers will be smartphone dominant, meaning they will be spending most of their time on their smartphone and using it to replace the PC.