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BizReport : Mobile Marketing : April 16, 2015

Study: Utility apps take most of ad spend

When it comes to the app marketplace much of the advertising spend is going to utilities, not games. That according to new data out from PapayaMobile's AppFlood. Based on numbers from Q1 2015, AppFlood found that 60% of the ad spend is put into utility apps.

by Kristina Knight

That spend amount results in the cost-per-install for utility apps dropping below all other categories.

Perhaps of most interest, though, is that the mobile ad spend has increased more than 500% YoY on a global scale. On average CPIs for apps fall at $0.40, with most installs happening in the US, India and Indonesia on a country-by-country level; regionally speaking, North America and Western Europe have the highest install numbers.

"Our latest findings show not only that utility apps are becoming increasingly popular, but that they are one of the key ways in which Chinese tech giants are are building a global audience for their apps," said Si Shen, co-founder & CEO of PapayaMobile. "Utility apps accounted for 60% of all ad spend in the first quarter, showing just how much growth is happening in this category - a trend we expect to see continuing."

Meanwhile, data from comScore indicates the heaviest app users in the US are between ages 25 and 34; these app users spend about 75 hours each month on apps. According to comScore's Kate Dreyer the total time spent on mobile devices has soared over the past 4 years. She notes that time spent on smartphones is up 394% while time spent on tablets is up 1,721%.

Dreyer writes on the comScore blog, "Mobile-only internet usage is also becoming more common, driven predominantly by Millennials, of which 21 percent are no longer using desktop computers to go online. Meanwhile, the 55-years-and-older consumer segment is actually the fastest growing faction of mobile users, increasing its combined multi-platform and mobile-only share of audience from 60 percent to 74 percent in the past year."

Image via Shutterstock

Tags: app trends, AppFlood, appvertising, comScore, mobile app trends, mobile marketing, PapayaMobile

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