Top 5 data trends that shaped mobile app marketing in 2021 – and what they mean for 2022

April 26, 2021 will go down as some of the necessary dates within the historical past of digital advertising and marketing. On today, Apple started imposing its App Monitoring Transparency (ATT) framework in iOS14.5, requiring apps to actively achieve consumer consent for monitoring through an opt-in mechanism, ushering in a brand new privateness period.

 

Table of Contents:

• Top 5 data trends
• buy app store reviews ios
• promote your mobile game
• product page optimization and aso

Whereas it was definitely a welcomed transfer so far as client privateness was involved, ATT created a large problem for cell app entrepreneurs. Out of the blue, information was principally restricted and aggregated, turning consumer level-driven measurement and optimization the other way up.

The tremors had been felt throughout the ecosystem: from app entrepreneurs, by media sources and advert networks, to cell attribution and measurement suppliers.

How did ATT impression the variety of downloads pushed by advertising and marketing? Is remarketing nonetheless a viable advertising and marketing exercise? How did finances allocation change, and what has been the impact on client spend in apps?

To deal with these questions, our annual High 5 information developments report analyzed over 60 billion app installs in 2021, permitting us to foretell what 2022 will deliver because the business continues to adapt to the brand new privateness paradigm.

Click on on the next hyperlinks and again to navigate within the publish:

1) Installs: Advertising and marketing measurement capabilities largely retained following preliminary post-iOS 14.5 plunge

2) Budgets: Apps spent $78-$83 billion on consumer acquisition in 2021 – up 40% YoY

3) Re-engagement: Paid remarketing innovation drives iOS rebound whereas owned media rises by 45%

4) Income: Gaming reliance on advertising and marketing highlights its monetization challenges within the privateness period

5) iOS 14.5+ deep dive: ATT opt-in charges & SKAN conversion worth mapping

BONUS: YoY progress per class and nation exhibits Finance is on tear

All information used within the report is measured by AppsFlyer, the advertising and marketing measurement and expertise platform. That is performed through integrations with main media companions, in addition to its proprietary SDK applied in its shoppers’ apps. All information is nameless and aggregated.

1) Installs: Advertising and marketing measurement capabilities largely retained following preliminary publish iOS 14.5 plunge

A lot has been stated about how COVID-19 considerably accelerated digital transformation in 2020.

Including to the digitalization pattern, our information exhibits {that a} new regular has additionally been created on this planet of cell apps, with all the set up and utilization baseline elevated in 2021, as we will see within the following chart.

A year-over-year comparability has 2021 installs exceeding 2020 by 19%. That is fairly a feat contemplating 2020 with its lockdowns and social distancing insurance policies that generated a 33% leap in comparison with 2019.

Enhanced digital consumption of cell gadgets in 2021 was a terrific start line for the cell app area.

However on April twenty sixth, Apple’s iOS 14.5 modified how the [marketing] recreation was performed.

As seen above, general app installs climbed, which may be simply measured. The issue of magnitude was, initially, the problem to measure non-organic installs (NOIs) and dedupe information from a number of sources:

1. SKAdNetwork (SKAN):Attribution carried out on the machine itself by Apple’s privacy-centric attribution mechanism.

And conventional attribution carried out for:

1. ATT-consented customers:Attribution primarily based on ID matching. It’s value mentioning that though consent charges had been greater than anticipated, the vast majority of customers couldn’t be attributed with ID matching because it requires twin consent (extra on that additional down).
2. Non-consented customers:Attribution primarily based on AppsFlyer’s aggregated fashions – Aggregated Superior Privateness framework for paid media or probabilistic modeling for owned media.
3. Older variations customers:Those that have but to improve to iOS 14.5+.

To dedupe, we used the best worth of NOI per media supply and marketing campaign in every measured week, which explains why the general determine is decrease than the sum of conventional and SKAdNetwork information.

Initially, conventional attribution took a success, dropping 25% by June twenty first after which an extra 5% by mid September. On the SKAN facet issues weren’t wanting higher early on both, with gradual adoption and implementation amongst advertisers and media corporations alike.

Whereas SKAN visitors began climbing in July, conventional attribution remained low. Over time, nonetheless, innovation began kicking in as we invested important assets in different and privateness compliant measurement.

Clearly, successful credit score for NOIs this yr has been powerful for iOS entrepreneurs, with an general 5% drop (whereas Android NOIs elevated 15%).

Gaming adopts SKAN however takes a success as a result of its reliance on advertising and marketing

On the vertical entrance, we will see that Gaming apps, recognized for his or her information savviness and agility, have adopted SKAN a lot quicker than non-gaming apps with 67% of NOIs vs a mere 30%.

However a view from above exhibits that information limitations and measurement shifts have taken a toll on Gaming apps. Based mostly on evaluation of over 100 billion installs since January 2020, we will see a 6% YoY drop in general Gaming app installs in 2021, whereas on the identical time non-gaming apps loved a 25% leap.

Due to the large competitors video games face and the truth that branding performs a a lot smaller function on this vertical, Gaming is way extra reliant on advertising and marketing. In truth, Gaming app entrepreneurs have typically handled non-organic customers as of upper high quality than natural customers as a result of they excel at consumer acquisition that’s primarily based on user-level indicators.

Nevertheless, reliance on consumer stage information additionally signifies that they’re extra uncovered to adjustments in how information is measured and optimized. With the shift in direction of combination measurement, general set up numbers in Gaming have dropped – principally the results of a decline in marketing-driven installs.

What’s in retailer for 2022 

Because the business continues to adapt to the brand new privateness norm, the power to measure, attribute, and optimize advertising and marketing actions will proceed to enhance on iOS (and on Android when Google introduces its personal privateness measures).

Enhancements might be pushed by higher and extra subtle fashions, elevated utilization of predictive analytics, acquired experience in SKAN – significantly optimizing conversion values (see additional down for extra on the subject), and throughout innovation throughout the ecosystem.

We will solely hope that Apple will add extra privateness compliant information to SKAdNetwork, significantly much-needed natural information, GEO stage info, deferred deep linking, and information from web-to-app and remarketing campaigns.

2) Budgets: Apps spent $78-$83 billion on consumer acquisition in 2021 – up 40% YoY

Person acquisition budgets in 2021 will attain $78-$83 billion, with the vary pushed primarily by finances estimations in China (see finish of article for extra on our methodology). The determine represents a 40% YoY improve pushed by a 50% leap in Android and 26% rise in iOS.

Whereas spend elevated on each platforms, the rationale behind the expansion in every OS was solely completely different.

As defined above, iOS noticed fewer NOIs this yr (-5%). On the identical time, iOS additionally skilled a major rise in efficient value per set up, which drove budgets upward. Advert costs elevated by 20% to as a lot as 50% throughout almost all classes for the reason that enforcement of iOS 14.5!

What this implies is that entrepreneurs had been capable of purchase and get credit score for much fewer customers for a similar finances they’ve invested in 2020, or – needed to improve their spend for a similar quantity of customers.

Why did media turn into so costly on iOS?

For starters – primary provide and demand. The costs for a a lot decrease provide of consented customers leaped as demand for customers with full information granularity has skyrocketed for apparent causes.

However it seems that the principle trigger for this leap in value has been the inefficiency of main media sources throughout a time of transition to focus on the proper individuals and estimate the proper impression.

It’s more durable to make small segments of high-value customers, so entrepreneurs want to make use of broader focusing on, which additionally makes it much less related.

On high of that, networks can’t optimize towards in-app indicators but, though this functionality is being developed with options equivalent to Google’s GBRAID and Fb’s AEM; till they do, their focusing on and optimization skills are negatively affected.

In parallel, demand for Android with its full information granularity surged with NOIs rising over 40% YoY, particularly in Gaming the place NOIs leaped 50% in comparison with non-gaming at a nonetheless spectacular 36%. Apparently, world Android CPI in Gaming was down 11% this yr (it did improve 23% in North America, however dropped 24% and 15% in Southeast Asia and Japan & Korea, respectively),  whereas non-gaming CPI elevated by virtually 20%.

As proven in our newest Efficiency Index that features the primary SKAN rating, budgets haven’t solely shifted to Android, they’ve additionally shifted amongst media corporations. TikTok Advertisements got here out on high of the SKAN Index whereas Fb ranked 2nd.

The social big additionally misplaced its dominant place in iOS amongst consenting customers to Apple Search Advertisements (ASA). The truth that ASA has its personal API and is ready to keep full information granularity has attracted extra budgets to this platform.

What’s in retailer for 2022 

Person acquisition budgets will proceed to rise with extra NOIs on each platforms. Nevertheless, the price of media received’t improve as a lot in iOS this yr given the estimations that the inefficiencies on the community facet might be largely solved.

Complete business UA spend methodology
The method combines three buckets:

1. Budgets measured by one of many main cell measurement companions (business extensive extrapolation was made primarily based on third social gathering estimates)
2. The non-attributed market or advertising and marketing pushed installs that weren’t measured by one of many main MMPs (about 10% in accordance with estimates)
3. Spend in China the place measurement is a far larger problem due do its fragmented app retailer area; we used App Annie’s whole of96 billion installs in 2020, AppsFlyer’s share of NOI and CPI, and eMarketer’s estimate of China’s 27% share in world cell advert spend.

3) Re-engagement: Paid remarketing innovation drives iOS rebound whereas owned media rises by 45%

After a gentle climb in recent times, paid remarketing efforts by cell apps plummeted as soon as iOS14.5 was launched. This was anticipated – with out IDFA, focusing on and personalization, that are the idea of remarketing, can’t work.

From March to July, the variety of remarketing conversions plunged by virtually 35%, even if adoption of model 14.5 was gradual (solely 27% in June).

However then, as seen within the NOI pattern above, innovation kicked in – this time on Google’s facet. The search big launched GBRAID – an combination and privateness compliant identifier designed to optimize re-engagement campaigns.

As a result of Google is the most important participant by way of sheer quantity inside the remarketing pie, the truth that it launched a brand new method to measure single handedly elevated the variety of remarketing conversions by 12% from July to September, and one other 14% in October as the vacation season kicked off (final yr, iOS remarketing elevated virtually 10% in October vs. September).

As with NOIs, Android capitalized on iOS challenges, growing its variety of attributed remarketing conversions all through all the yr by a complete of over 45%.

Owned media on the rise in its place 

With the challenges of remarketing in iOS, it’s no shock that using owned media to re-engage current customers by push notifications, e mail, and in-app messages has jumped virtually 45% since April (in comparison with solely 17% raise in Android).

Moreover, owned media offers apps full information granularity inside a 1st social gathering information atmosphere (privateness measures search to stop the passage of knowledge to third events, not inside an organization’s owned properties).

An increasing number of apps are utilizing built-in viewers segmentation and advertising and marketing automation instruments to assist app entrepreneurs effectively re-engage customers. This permits entrepreneurs to create tailor-made messaging, and even exclude customers who’ve already responded to a marketing campaign from seeing related adverts throughout different owned channels.

What’s in retailer for 2022 

Re-engagement will proceed to drive elevated utilization, each on the owned media 1st social gathering information facet, and the paid remarketing entrance – the place conversions will proceed to rebound as different networks are already engaged on options.

4) Income: Gaming reliance on advertising and marketing highlights its monetization challenges within the privateness period

An evaluation of whole client spend (IAP or in-app buy income) in apps exhibits simply how difficult iOS14.5 has been for Gaming apps.

As we solely examine apps that had been dwell all through all the measured interval, income in Gaming often doesn’t improve by a lot as many video games have a restricted shelf life.

Nevertheless, a comparability between platforms has Gaming IAP plunging 38% between April and September in comparison with a minor 13% drop in Android.

As mentioned in pattern #1, not like non-gaming apps, video games are closely reliant on advertising and marketing and their means to optimize primarily based on user-level information indicators. For many customers, focusing on and optimization have been affected of their absence, resulting in a drop in general Gaming income from IAP.

The identical pattern is seen in IAA (in-app promoting) income on the publishing entrance, which is the opposite facet of the Gaming UA coin. Between April and September, iOS income dropped by 15%, whereas Android income jumped 45% throughout the identical timeframe.

Comparable platform developments had been seen amongst non-gaming apps which might be pushed primarily by natural visitors. We will see a rise in Might, after which a comparatively flat income trendline.

With October marking the beginning of the This autumn vacation procuring season, and November in full pace with Singles Day, Black November, and Black Friday gross sales, we will see the impression of Purchasing – the most important non-gaming class – on the general pattern.

What’s in retailer for 2022 

Gaming apps will discover a method to alter to the accessible information and measurement methodologies. They’ve at all times been the quickest learners and are definitely the perfect at data-driven optimization.

This time round, nonetheless, issues have been harder as their reliance on user-level information, and in addition the truth that the networks they depend on are additionally within the midst of their very own studying curve.

5) iOS 14.5+ deep dive: ATT opt-in charges & SKAN conversion worth mapping

The ATT immediate has single handedly modified a whole business and created fairly a dilemma for cell apps. As a result of it’s an opt-in mechanism and a easy software to realize consumer consent, apps can select to not present it. In such a case, app entrepreneurs would accept SKAdNetwork attribution and probabilistic modeling.

The principle purpose why some apps selected to not implement ATT is out of concern that the immediate with its considerably off placing language can drive churn and disruption to the consumer expertise.

However the actuality is that the advantages of exhibiting the immediate far outweigh the advantages of not exhibiting it.

Supporting this declare, we will see that six months after the discharge of iOS14.5, virtually 65% of apps applied ATT and we anticipate this quantity to extend to 70%-75% subsequent yr.

Why do most apps present the immediate?

Effectively, we’ve seen ATT opt-in charges constantly attain 46% throughout the previous few months. Which means in almost 1 in each 2 situations when a consumer truly sees a immediate, the ‘Permit’ button is tapped.

From a pure consumer expertise perspective, that quantity is sort of promising and exhibits that many customers are prepared to simply accept monitoring in return for a extra personalised expertise.

Though there’s definitely lots that may be performed to improve opt-in charges, once we embrace restricted customers and customers who enabled Restrict Advert Monitoring (LAT), the general fee shrinks as Apple doesn’t permit the immediate to be proven to those segments.

Extra importantly, because it takes two to tango, ID matching can solely work if there may be twin consent on each the writer and advertiser facet, which implies IDFA attribution charges are a lot decrease.

The underside line is that IDFA continues to be right here, and though it’s solely current in a a lot smaller cohort of customers, this group is extremely useful for benchmarking, modeling, and extrapolations on non-consenting audiences.

Conversion worth mappings present gaps between Gaming and non-gaming 

The principle space entrepreneurs have been fighting this yr was determining work with Apple’s SKAdNetwork conversion worth mechanism.

Extra particularly, take advantage of restricted information; as a result of it’s the solely post-install information that may be linked to their campaigns. Regardless of limitations, it’s paramount to get it proper.

What we will study by analyzing information from AppsFlyer’s Conversion Studio is that Gaming apps are laser-focused on income, and as such – it’s a mannequin that’s being concerned in most conversion worth schemes.

Their commonest configuration is Occasions & Income with 36%-48%, excluding Hyper Informal apps  that want occasions solely configurations (38%). A Income-only configuration can also be highly regarded amongst gaming apps, with 18%-35% choosing this schema.

On the non-gaming facet, Occasions-only is probably the most configured choice, with Purchasing at 40%, Finance at 56%, Well being & Health at 58%, and Leisure at 57%.

For extra on take advantage of conversion values, together with benchmarks on exercise window timer, and optimum utilization of the 64 mixture capability, click on right here.

What’s in retailer for 2022

Choose-in charges will proceed to enhance as customers will come to grips with poor consumer expertise they get from untargeted adverts, whereas manufacturers will get higher at optimizing their prompts and offering a transparent worth alternate.

Nonetheless not solely satisfied? A brand new report by Gartner predicts that opt-in charges will improve by over 150% by 2023.

As for conversion values, with time, data, testing, and coaching, entrepreneurs will high quality tune their mapping and schemes to take advantage of the information that’s accessible to them.

To sum up

2021 privateness adjustments have been nice for end-users and the necessary reason for safeguarding their information, but not-so-great for entrepreneurs.

However – issues are wanting up as we head into 2022 and past:

• Continued learnings of SKAdNetwork, new Apple options, advert community options and innovation – will maximize SKAN’s worth
• Choose-in fee optimization helps leverage machine IDs from consenting customers – the place relevant – for the aim of modeling and benchmarking
• Privateness-preserving innovation will retain measurability (e.g. machine studying fashions, incrementality and so forth.)
• Privateness-preserving information collaboration inside the ecosystem primarily based on Information Clear Room applied sciences will introduce a brand new and improved method of enabling advertising and marketing actions that may test all containers:

1. Person-level pushed insights in aggregated format for optimization
2. Enhanced consumer expertise
3. Safeguarded consumer privateness

BONUS: YoY progress per class and nation exhibits Finance is on tear

A class comparability exhibits us yet one more angle of simply how completely different iOS and Android are in 2021.

Adjustments in general demand for apps different considerably between the 2 platforms in virtually each class, particularly Relationship, Information, Purchasing, Finance, Well being & Health, and Gaming.

By way of pure progress, as we’ve proven in our annual State of App Finance Advertising and marketing report, Finance is on a tear with the best fee in iOS and 2nd highest on Android.

Fintechs are in every single place, serving to individuals to handle their private funds, spend money on shares, handle digital wallets, cost strategies, cryptos, main a worldwide revolution on the connection between individuals and their cash.

Social and Purchasing have additionally proven spectacular progress, whereas Gaming lagged behind due to losses on iOS (see above).

Growing markets drive progress

A have a look at the world map exhibits many hyper progress markets with a 30% progress fee or greater within the growing world throughout Latin America (Peru, Mexico, Colombia, Brazil), the Center East (Iraq, Algeria, Egypt), Africa (Nigeria, South Africa), the Indian subcontinent (Bangladesh, Pakistan, Nepal) and Southeast Asia (Philippines, Indonesia).

Development within the US, on the flip facet, lagged behind in comparison with different markets, however nonetheless managed to drive elevated demand for apps (+10% YoY), whereas installs in one other mega market – India – grew by 14%.