Tuesday, February 03, 2015

App-Install Ads

Not a day goes by without my daughter asking me if she can get a new app for her Ipad. I can't count the number of times she has run out of space and asked me to make room so she can download more. The number of apps she has downloaded runs into the hundreds and she plays any one of those for 10 minutes before getting bored and never using it again. She gets iTunes gift cards at Christmas and on her birthday which get spent in a week on paid apps, but most of them are free. I've realized that short span of time is enough to slip in an ad to install yet another app creating an endless stream of new apps to explore.
The mobile app-install ad market generated $3.6bn in 2014 with an expected $4.6bn in 2015 and $6.8bn by 2019. This advertising arguably generates some of most easily measurable ROI and helps adds stand out among the droves of apps encountered in Google Play or the Apple App store. In other words, it's a great tool for marketers.

http://www.businessinsider.com/the-mobile-app-install-ad-is-driving-a-boom-in-mobile-ad-spend-and-not-just-among-game-makers-2015-1

Facebook has also taken notice of the problem of finding good apps and they are jumping in with an App Ad Feed that will display targeted apps to users. I can't help but think this feels like a ponzi scheme. I can create an app, spend $X on App-Install Ads, insert App-Install Ads in my App, collect revenue on the ads in my app (hoping I earn more than I spent), use that revenue to create a new app and spend on the associated App-Install ads.

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