While marketers may be pleased to know that people are deleting apps at slower rates, most companies have been slow to invest in ads to drive further engagement, added Flurry CEO Simon Khalaf.
“We still see over 90% of the demand focused on app install ads and 10% on app engagement ads,” Khalaf said. However, Khalaf added, travel, leisure and mobile commerce companies have indicated that they will be rolling out more app engagement ads in 2014, which could suggest that this trend is slowly changing.
While still relatively new, the mobile re-engagement market is becoming lucrative. Facebook launched mobile app engagement ads last year and right before it went public, Criteo snapped up the startup Ad-X Tracking, which helps marketers track app installs and conversion rates for retargeting campaigns.
Michael Oiknine, co-founder and CEO of the mobile analytics firm Apsalar, also noted that advertising budgets are starting to shift from a focus on installs to deeper engagement efforts.
“CPIs continue to see inflation, but what we're really starting to see is other verticals getting deeper into marketing their mobile apps,” Oiknine said. “Two years ago, most of the spend in mobile marketing was by games. Today, other verticals are coming in swinging massive budgets; we're seeing major growth in terms of advertiser adoption by other verticals like retail, travel and finance.” In terms of retargeting trends, deep-linking or linking to a specific page within a website, is becoming popular, Oiknine added.
Khalaf agreed that the mobile app marketing industry is quickly maturing. “Basically, marketers are focused on three things,” Khalaf said. “Traffic acquisition versus a focus on installs, ROI measurements and the emergence of mobile app re-targeting.”