Mobile advertising platform AppFlood found that mobile ad spending for utility apps accounted for 60% of all mobile spending during Q1 2015. Particularly customisation apps attracted higher costs per install (CPI) than other categories at $0.70, followed by battery saving apps $0.34 and launchers $0.30.
CPI for Customisation apps was higher than that of any other utility category
Si Shen, CEO of PapayaMobile, the parent of AppFlood, said:
“Utility is a category that doesn’t have huge players yet. Utility apps usually have very high retention rate and user engagement, and it is relatively cheaper to acquire with utility apps. The audience pool is huge. Chinese companies like Cheetah Mobile make for great examples.”
For example, Cheetah Mobile recently launched its Clean Master app to sort out junk miles on mobile devices. Engagement quickly exceeded 100 million daily users.
Asia is leading the way when it comes to user generation. Here, tech companies are investing heavily into utility applications.Latin America followed closely, with rapid growth between Q4 2015 and Q1 2015.
Asia leads new mobile user pickup between 2014 and 2015
AppAnnie confirmed the findings, showing that top utility apps such as Clean Master and Zero Launcher from Sungy Mobile are coming out of China.
When it comes to global app install rates, Asia was at the forefront with 37% of total spend, thanks to Indonesia, India, Thailand and Vietnam. Latin American spending was still strong (25%), but weakened due to the Brazilian economy hitting a slump.
Asian countries attract the highest number of global app installs with 37%
In addition, Comscore recently concluded that Millenials were turning predominantly to mobile devices to use the internet with 21% of them no longer using desktops for web access.
Utility apps were the fastest growing apps category. Ad spend accounts for almost 60% of total spending.
Utility apps were the strongest growing sector
Si Shen confirmed these findings saying:
“Our latest findings show not only that utility apps are becoming increasingly popular, but that they are one of the key ways in which Chinese tech giants are are building a global audience for their apps. Utility apps accounted for 60% of all ad spend in the first quarter, showing just how much growth is happening in this category – a trend we expect to see continuing.”
AppFlood offers a range of technologies to optimises user acquisition campaigns and help to reliably target new consumers.