Executive Summary

In order to gain users in a saturated market, app developers and brands are becoming more sophisticated in their app install advertising and organic strategies.

What is driving the app installation marketplace?

Consumer demand for apps is rising: Installs grew 11.6% year over year in Q1 2019, according to Sensor Tower. But that growth was driven heavily by developing markets. App installation in developed markets is slower, though the supply of programs continues to grow. Gaming still leads the sector, but it now competes for ad inventory more directly with a range of verticals, including retail, travel, utilities and others, which drives prices higher.

What are good app install strategies?

App install advertisers once judged campaigns on the number of installs produced, but they are now more likely to take post-install actions into account as well (i.e., in-app purchases or registrations). They also use this data to optimize ad targeting and messaging. The same data helps them get a better understanding of the lifetime value (LTV) of users and the true return on ad spend (ROAS).

How important are organic strategies?

App store optimization remains important, even as app store search ads proliferate. Most apps are downloaded organically, and they generally have the more engaged users. More companies, especially in retail, are also driving installs from their best customers through their website, email and other owned properties.

How big a problem is app install fraud?

App install fraudsters continue to innovate. Fraud prevention tools help cut down losses to fraud, but they can’t eliminate it completely.

WHAT’S IN THIS REPORT? This report will look at the size of the app market as well as the three major strategies that developers follow to acquire and engage app users.

KEY STAT: The number of smartphone users is barely growing in the US and other developed markets. Developers face tighter competition to gain a foothold on users’ home screens.