Mobile app install advertising spend predicted to increase 2.3x over three years

Ad expenditure for app install campaigns is predicted to grow 2.3x over the next three years, according to research by mobile attribution company AppsFlyer.

Based on over 1.3 billion installs, the latest report also looked at 80 billion app opens and 290 million installs across the UK and Western Europe which now account for $250 million in revenue.

Facebook and Google were among the top two drivers of app installs, whilst Apple Search Ads and Snapchat ranked in the top 10 for the first time in 2018.

Meanwhile, video has played a key role in boosting app installs and app opens across Google, Facebook and other platforms. During 2018, installs from video ads in the UK increased 71% within 12 months from 2017.

The study noted that although app usage continues to grow, users aren’t spending quite as much time in apps anymore.

AppsFlyer also noted that app-install costs are increasing with cost-per-install growing 10% year-on-year. iOS app install costs continue to be roughly 50% more expensive than Android. However, Android may actually provide better ROI in the UK and Western Europe, according to the report.

It’s not all good news though. Uk app install fraud was found to be significantly higher in Western Europe largely due to click-flood rates. The UK had a 20-30% higher ad fraud rate than Western Europe. Since fraud tends to follow a wave-like pattern, an increase can now be expected.

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