Spending on video app ads increases whilst advertising fraud remains dominant concern

Anne Freier | November 10, 2017

Mobile Advertising

Yesterday, we covered the first part of InMobi’s latest State of App Performance Marketing Survey – Global survey. Now, let’s dive deeper into current app marketing user acquisition trends, fraud and other challenges.

According to the survey, half of app marketers are spending less than $50,000 per month on user acquisition.

When it comes to regional focus, 47% of marketers still prefer North America as their top region to run a user acquisition campaign. APAC is the second most common target for marketers.

Meanwhile, CPU is being used by more than half of marketers as a preferred pricing model whilst 22% of respondents use CPA models instead as it may provide higher revenues at fewer expenses. However, it is much more prone to ad fraud.

CPC is favored among 19% of respondents.

In terms of ad formats, 56% of respondents use banner ads for user acquisition campaigns due to the relatively low cost and mass reach. Video ads however are picking up and are now being used by 44% of respondents.

In addition, 31% of advertisers are satisfied with video ads, whilst 41% deem them only somewhat effective and 14% said they were ineffective.

Despite this, 47% of marketers will invest more in mobile video ads over the coming year, whilst 36% said they’d also spend more on native ads over the next 12 months.

It appears that remarketing has gained some traction with 32% of marketers using some form of remarketing whilst 39% said they would invest in it over the coming 12 months.

Right now, remarketing efforts are only seeing small investments with 46% of app marketers investing just 0-5% of their budgets toward in-app remarketing. Some of the main reasons for low budget allocations are the high expense (51%) and complexity (25%) of remarketing efforts.

Attribution is now among the top priorities for app marketing with a majority of marketers (79%) saying that it is important to their marketing success.

63% of respondents said they were using primary attribution tools with Tune, Kochava, Appsflyer and Adjust as their preferred attribution partners.

When it comes to advertising fraud, 85% of marketers have some understanding of what fraud actually is. Indeed, knowing how fraudsters behave is important criteria for more accurate fraud assessment.

The top three types of fraud marketers have come across are invalid traffic by bots and scripts (46%), click cramming (16%) and unauthorised re-brokering (12%).

By partnering with trusted networks (60%) and reporting on transparency (32%), app advertisers hope to combat fraud.