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Marketers relying too heavily on Facebook for mobile app downloads?

20th Mar 2015
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Marketers looking to promote their mobile apps via Facebook’s advertising network increased their spending by a whopping 235% at the end of 2014, according to new Kenshoo statistics.

However, while total advertising click-throughs for the year across all devices experienced a surge during 2014, Kenshoo’s data suggests Facebook’s appeal as a platform for encouraging mobile app downloads is faltering, with click-through rates for mobile app ads falling by 27% over 2014.

The data points to a huge increase in competition for clicks, as more companies have clambered to advertise their ecommerce, gaming and consumer apps via the social network.

As a result, the cost-per-click for Facebook mobile app install ads rose over the twelve month period, with December showing a 179% increase over January, which on iOS devices was 163% higher than on Android devices.

However, impressions for these ads increased by 65% during the year, while installs of mobile apps from the ads increased by 182%, and the advertising spend still equated to over $19 million (USD) in advertiser spend in Q4 of 2014, with over 10 million app installs, targeted across more than 100 countries worldwide.

Business Insider research estimates 30% of total US mobile ad revenue last year was generated by app install ads.

“It's not just game developers that are buying these types of ad units: ecommerce companies and brands are buying them up because they result in significant downloads and an easily measurable return on investment (the holy grail of marketing),” states Business Insider’s global advertising editor, Lara O'Reilly.

“A mobile app install ad doesn't just drive that one-time download, it drives what is known as "lifetime customer value," whereby brands can analyse everything they do in that app.”

Facebook's strong mobile advertising business has helped the company to report revenue up 49% to $3.85 billion in the final quarter of 2014, as the company's profit grew by 34% to $701 million.

The social network has announced a number of innovations to its advertising platform in recent months, including its new product ads tool, which allows brands to showcase multiple merchandise items within single adverts on its users’ news feeds.

Business Insider has also reported this week that Facebook is set to announce a vital new measurement tool for advertisers that “could help it take on Google and propel its position even further up the mobile advertising market”.  

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