Q1 2015

User Acquisition Trends from Top 100 Grossing App Developers

Insights, Trends and Benchmarks from Top 100 Grossing App Developers

User Acquisition Trends

3

The Survey

#44th Iteration Over 2 Years

90Detailed Questions

46%Survey Response Rate

Top 100Grossing App Developers

$1,000,000Average Monthly UA Spend*

500,000Average Monthly Installs*

Insights, benchmarks and trends from the top 100 grossing app developers.

FORMAT & DATA RESPONDENT PROFILE

*Based on aggregated market data of top 100 grossing ad spend & install volume. .

Top Formats and ChannelsVideo, full-screen interstitials and display lead the way.

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Source: AdColony Q1 2015 Top 100 Grossing Developer Survey

UA Channel Jan’13 Jul’13 June’14 Jan’15

Video Ads 100% 100% 100% 98%

Facebook App Install Ads (Display) 68% 94% 92% 96%

Interstitials 100% 83% 90% 96%

Display/Banners 89% 86% 86% 93%

Direct Publisher Deals 63% 72% 59% 54%

Cross Promotion 68% 53% 49% 54%

Offer Walls (Incentivized) 100% 64% 47% 54%

Facebook App Install Ads (Video) 69% 52%

Television 22% 35%

Free App Networks 95% 64% 35% 41%

OOH (e.g. Billboards, Posters) 6% 15%

Print 0% 0% 2% 7%

Other 5% 3% 2% 2%

Video, Facebook, interstitials,

and banners continue to

dominate the media mix.

Traditional media formats (TV,

Print, Out of Home) are

enjoying adoption and growth.

Incentivized channels and

formats continue to decline.

Q: Which of the following UA channels do you currently use?

Mobile Video is the “Most Exciting” Format of 2015Top grossing developers rate mobile video as the “Most Exciting” User Acquisition channel for 2015.

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Source: AdColony Q1 2015 Top 100 Grossing Developer Survey

0%

10%

20%

30%

40%

50%50%

21.7%

8.7%8.7%

2.2%2.2%2.2%4.3%

OtherOut of HomeInterstitialsBannersTelevisionPlayable AdsSocialVideo

Q: Which UA channel are you most excited about in 2015?

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Why? Mobile Video is the Most Effective Format.Mobile video ads rank #1 in user acquisition effectiveness against campaign objectives.

Other

Free App Networks

Offer Walls

Playable Ads

Native Ads

Display (banners)

Direct Deals

Cross-promo

Display (interstitial)

Facebook

Mobile Video Ads

Very EffectiveMost Effective

Source: AdColony Q1 2015 Top 100 Grossing Developer Survey

Mobile Video is #1 in Effectiveness

98% of top grossing user acquisition

advertisers report that video ads are

“very effective” if not the “most

effective” format they use

Growth in Traditional MediaTelevision, out-of-home and print all growing.

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Source: AdColony Q1 2015 Top 100 Grossing Developer SurveyTV Out of Home Print

7%

15%

35%

2%

6%

22%

Jul'14Jan'15

Top apps are becoming

franchises and are being

supported with ad spend

across traditional marketing

channels.

Campaign KPIs of Top Grossing App DevelopersQuality is king, but volume and scale are also important.

8

Source: AdColony Q1 2015 Top 100 Grossing Developer Survey

60%

70%

80%

90%

100%

96%

82%81%78%78%

TargetingServicePriceVolumeQuality of User

Q: How important is each of the following in terms of evaluating ad network and UA campaign

performance?

Shift to Display

Shift to Interstitials

Shift to Direct Sales

Focus more on CPI

Focus more on CLV

Shift to video

Shift to social

Increase in reach (geo)

Fewer partners

Testing new channels

Increase in size

0% 10% 20% 30% 40% 50% 60% 70%

Somewhat AgreeStrongly Agree

Top User Acquisition Campaign Trends for 2015Budgets are getting larger, campaigns are becoming more global and focused with fewer advertising partners.

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Source: AdColony Q1 2015 Top 100 Grossing Developer Survey

Q: Compared to last year, my UA campaigns will ________ in 2015.

Focus on Global Campaigns

As campaigns become more

global, UA teams look to work

with fewer teams that can drive

increased reach.

98%96%96%93%

54%54%52%

46%41%

35%

20%15%

7%2%

OtherPrintOut of HomePlayableTVFree App NetworkNativeFB VideoCross PromoOffer WallsDisplayFacebook DisplayInterstitialsVideo

User Acquisition FormatsWhich user acquisition formats/channels do you use?

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Source: AdColony Q1 2015 Top 100 Grossing Developer Survey

TargetingWhich targeting parameters are most important to you and help maximize the performance your UA campaigns?

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Source: AdColony Q1 2015 Top 100 Grossing Developer Survey

OS

Geography

Device

Source App

Age

Gender

Behavior & Demo

Connection

Carrier

Key RequirementNice to HaveNot Required

OS, geography and and device

are all top key requirements.

3/4 of top advertisers say that

source ID’s are a key

requirement.

1/3 of top advertisers require

full transparency into inventory

sources.

89%

76%

33%

17%

11%

4%2%

Friend Invitation Positive Review Session Time Social Log-In Tutorial Completion Early IAP Retention

Leading Indicators of High Quality Loyal UsersWhat are some of the early indicators of a high quality loyal user who is likely to monetize via IAP?

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Source: AdColony Q1 2015 Top 100 Grossing Developer Survey

Day 2, 7, 14 retention and early session IAP purchases are the

best leading indicators of a high quality (LTV) loyal user

UA Team SizeWhat is the size of your UA team?

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Source: AdColony Q1 2015 Top 100 Grossing Developer Survey

Small UA teams remain common, with 72% of

teams having 5 members or less.

24% of respondents only have one person on

their UA team.

48% of respondents have 2-5 people on their

UA team.

9%

20%

28%

20%

24%

1 2-3 4-5 6-10 10+

Frequency of Campaign Analysis and OptimizationHow often does your team review UA campaign results and optimize campaigns?

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Source: AdColony Q1 2015 Top 100 Grossing Developer Survey

71% of top app developers optimize campaigns multiple

times per week, and 30% optimize campaigns daily.

2%

26%

41%

30%Every DayMultiple Times a WeekOnce a WeekLess Than Once a Week

LocalizationMost top grossing developers are localizing ad creatives for at least 5 languages.

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Source: AdColony Q1 2015 Top 100 Grossing Developer Survey

17%

83%YesNo

Do you produce localized creative assets?

42%

15%

42%

10+5-91-4

How many geographies do you localize for?

Thank You