User retention, engagement and app discovery are top challenges app marketers are facing

Anne Freier

In Mobile Advertising

November 9, 2017

InMobi, the mobile and app advertising company, recently conducted a survey among app marketers to find out more about the goals and objectives as well as challenges in app marketing.
The State of App Performance Marketing Survey – Global survey finds that despite app marketing being a young discipline, it faces a set of unique challenges. Indeed, 65% of successful respondents said that they had fewer than 4 years of mobile app experiences. Just 14% of them would call themselves experts.

App marketing teams are also rather small with 65% of respondents saying they work in teams of fewer than five people.
Meanwhile, the most common target regions for marketers to launch their apps are those more economically developed and with higher smartphone penetration including North America, APAC and Europe.

Among the top app categories respondents represented were gaming, shopping, lifestyle, utility and travel apps.
Interestingly, app marketing expenditure on a monthly basis varies widely. Around 8% of marketers are heavy spenders at over $100,000 per month, whilst 67% are spending less than $25,000 a month and a quarter are spending between $26,000 and $100,000.
When it comes to marketing goals, user acquisition is at the top with a large majority of marketers considering it to be the most important marketing goal. The second most important goal are user engagement and retention.

Among one of the key trends is in-app advertising which continues to be a preferred business model for 60% of app marketers. In-app purchases ranked second in popularity. Overall, a mixture of methods is preferred in order to maximize profitability.

When it comes to challenges, 55% of users are finding user retention and engagement difficult issues to deal with due to retention levels diminishing over time. Discoverability of apps was also another important challenge for half of respondents.

When it comes to in-app advertising, ad fraud (41%), ad blocking (36%) and third-party measurements (29%) are key concerns.
The report also noted that video ads were becoming more popular with 44% of respondents using video for user acquisition campaigns. Another 36% of marketers plan on investing in video ads over the coming 12 months.
We’ll feature the second part of this comprehensive survey tomorrow.