Delivered at Casual Connect Europe 2016 With millions of apps vying for installs, how are the top earning publishers growing and acquiring high quality users at scale? Learn what’s working for the top 100 apps — and what isn’t — during this session revealing the results from the latest App Install Survey.

1. Taking AIM:
Top Trends in App Install
Marketing
Casual Connect Europe

2. The Semi-Annual AdColony App Install Survey
Insights, benchmarks and trends from the top 100 grossing app developers
2
#5 5th Iteration Over 3 Years
100 Detailed Questions
60% Survey Response Rate
78% Mobile Game Developers
22% Non-Game App Developers
(e.g. entertainment, music, news)
$1M+ Total Monthly App Install Budget
FORMAT & DATA RESPONDENT PROFILE

3. UA Trends
Insights from the Top 100 Earning Mobile App Publishers

4. Current CPI Trends
4
% eCPI
51% $2.87
34% $2.13
11% $1.68
4% $0.88
$2.34 overall eCPI

5. 2015 CPI Pricing Trends
5
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
NA EMEA APAC LATAM Overall

6. Trends by Genre
6
Casual Midcore Hardcore Non-Gaming
$1.59 CPI $2.24 CPI $4.83 CPI $2.70 CPI
0.97% CTR 1.05% CTR 0.63% CTR 0.58% CTR
0.58% IR 0.59% IR 0.21% IR 0.26% IR

7. 5% 7% 9%
12%
20%
25% 27%
31% 32%
36%
59%
76%
88%
93%
7
Most Effective App Install Formats
How effective are each of the following app install
channels at achieving your campaign goals?
Other Offer Walls Television Native Programmatic Interstitials In-Feed Display
Free App Network Playable Cross Promo Direct Deals Display / Banners In-Feed Video Video Ads

8. 8
Top 5 Campaign Trends
App install budgets continue to increase driven by growth in mobile video & global campaigns.
72%
63%
52%
59% 61%
81%
78% 76%
68% 68%
Increase Spend Testing New Channels More Video More Geos Partner Consolidation
Q1 '15 Q3 '15 Trend Δ
More Video + 24 pts
Testing New Channels + 15 pts
Increase Spend + 9 pts
More Geos + 9 pts
Partner Consolidation + 7 pts

9. 9
App Install Budget Allocation
What % of your budget do you allocate to each app
install channel you currently use?
Social and video ads dominate the majority of
app install budget allocation for top grossing
publishers.
35% 34%
15%
11%
5%
Social
Video
Display
Interstitial
Other

10. 10
Social Spend Plateaus
Fewer advertisers are planning to increase spend on social.
80%
76%
72%
54%
44%
Q1 '13 Q3 '13 Q2 '14 Q1 '15 Q3 '15
Advertisers Increasing Spend on Social Total Advertisers on Facebook
1 M
1.5 M
2 M
2013 2014 2015

11. Look-alike vs Retargeting
Look-alike campaigns continue to be favored over retargeting.
11
Usage
68%
93%
Retargeting Look-alike
Ineffective Neutral Effective
Retargeting Effectiveness
23%
36%
41%
Look-Alike Effectiveness
4%
14%
82%

12. Most single person UA teams
have grown to 2-3 members
since Q1.
Many 4-10 person teams
have grown to 10+ since Q1.
12
App Install Teams Continue to Grow in Size
Teams of 10+ have doubled in the last 6 months at the expense of smaller single person teams
24%
48%
20%
9%
5%
58%
18% 18%
1 2-5 6-10 10+
Q1 15 Q3 15

13. 13
The Rise of Television
Advertisers are turning to television to drive mass awareness and improve install rates for mobile titles.
22%
35%
36%
Q2 '14 Q1 '15 Q3 '15
Television

14. Creative Best Practices
How Top Publishers are Driving High Quality Installs

15. Optimal Video Length
Videos :23-29s in length perform best overall
15
5 10 15 20 25 30
Duration Sweet Spot
Videos 23-29 seconds in duration have seen the
strongest overall install performance
Nonstandard Times
Nonstandard times perform well on mobile,
freeing publishers from the confines of
traditional :15s and :30s spots
Trend Towards Short-Form Breakthrough
Ads
Social feed-based environments require shorter,
more engaging and “breakthrough” creative
INSTALL RATES

16. Top 3 Creative Features by Genre: Optimizing for Installs
16
Action Games Adventure Games Arcade Games Board Games Card Games
Visual Effects Visual Effects Live Actors Narration Hand Interaction
Narration Gameplay Footage Narration Gameplay Footage Featured Characters
Strong Musical Ending Featured Characters Visual Effects Visual Effects Visual Effects
Casino Games Puzzle Games Racing Games Social Games Strategy Games
Featured Characters Live Actors Featured Characters Featured Characters Live Actors
Hand Interaction Gameplay Footage Narration Gameplay Footage Hand Interaction
Text Overlays Visual Effects Gameplay Footage Narration Gameplay Footage

17. Gameplay Footage & Timelapse Progression
Showcasing a timelapse of game progression gives the user a better sense of gameplay.
17
Best For
Strategy Games
Role Playing Games
Adventure Games
Simulation Games
Story-Driven Games

18. Featuring Characters
Showcasing characters’ personalities maximize chances of piquing the user’s interest.
18
Best For
Racing Games
Music & Entertainment
Social & Casino Apps
Role Playing & Adventure Games
Arcade Games

19. Enhancing Gameplay with Special Effects
Complement gameplay footage with custom animation to improve performance by up to 50%.
19
Best For
Arcade Games
Action Games
Adventure Games
Simulation Apps
Puzzle & Board Games

20. Live Action for Games
Use a mix in-game footage and live action to improve mass appeal and pique some users’ interest.
20
Best For
Strategy Games
Action Games
Simulation Games
Arcade Games
Puzzle Games

21. Live Action for Brands
Show how the app fits into the lives of potential users with live action shots integrated with the app experience.
21
Best For
Productivity Apps
Business Apps
Health & Fitness Apps
News Apps
Finance Apps

22. Custom Animation
22
Improving Performance
Videos utilizing both in-app footage and
custom animation have:
• 26% higher CTR and 19% better CVR
than in-app footage only videos
• 50% higher CTR and 39% better CVR
than animation-only videos
Male-focused app Uplift
Combining custom animation with in-app
footage provides a 30% uplift to video
install rate. Male-oriented action titles show
up to a 50% lift in performance.
CTR CVRs on CVVs Install Rate
Animation Gameplay In-App Footage + Animation

23. Music and Sound Effects
Include audio that conveys the mood, pace, & style of the app to pique interest.
23
Best For
Music & Entertainment
Sports & Lifestyle Apps
Racing Games
Action & Adventure Games
Puzzle & Arcade Games

24. On Screen Copy
Use lower third callouts to highlight features without blocking action.
24
Best For
Educational & Reference
Music & Entertainment
Photo & Video
Shopping & Lifestyle
Finance
CTR IR
+ 11% + 12%

25. Branding
Open with app & publisher logos to leverage existing brand recognition & equity.
25
Best For
Established Publishers
Sports & Enertainment
Midcore Games
Travel Apps
Productivity & Reference

26. Localization
Localizing content yields better performance for geo-targeted campaigns.
26
Install Rate Boost with Localization
Baseline French German Spanish Korean Japanese Russian
Q1 '15
+ 3%
+ 16%
+ 37%
+ 41% + 44%
+ 48%

27. Making it Fun(ny)
Utilizing humor with mass casual appeal showcases how fun gameplay is and piques user interest.
27
Best For
Action & Adventure Games
Mass Casual Games
Lifestyle & Entertainment
Midcore Games
Character-Driven Games

28. Going Behind the Scenes
Give the users a behind-the-scenes view while showcasing in-app aesthetics.
28

29. The Ridiculous Factor
Feature outlandish storylines and app features to pique interest and drive high conversions.
29

30. Paul West
Head of Performance EMEA
paul.west@adcolony.com
@Pau1West
Thank You

31. Additional Trends
Insights from the Top 100 Earning Mobile App Publishers

32. 10% 10%
19%
22% 24%
29%
36%
44%
49%
53%
86%
92% 92%
97% 97%
32
Top App Install Formats by Usage
Video, display, and interstitials lead the way
Print Free App Networks Television Native Ads Interstitials
Out of Home Playable Ads Direct Deals In-Feed Video In-Feed Display
Offer Walls Cross Promo Programmatic Display / Banners Full Screen Video

33. 33
Campaign Formats Losing Favor
Fewer app install advertisers increasing spend on less interactive & incentivized ad formats.
33%
0% 0% 0%
39%
11% 11%
8%
22%
10%
8% 8%
13%
2%
4% 4%
14%
2% 2% 2%
Interstitials Free App Networks Display Offerwalls
Q1 '13 Q3 '13 Q2 '14 Q1 '15 Q3 '15

34. 76%
17%
7%
Shifting to Video
34
Top 3 Performing Segments in 2015 Agree Neutral Disagree
27%
42%
31%
Shifting to ProgrammaticShifting to Social
44%
37%
19%
App install budgets continue to shift toward video, social, and programmatic.

35. Campaign Shifts in 2015
Compared to last year, my app install campaigns have increased in ______, or shifted more toward ______.
35
Video Social Programmatic Direct Deals Interstital Display Free App Network Offer Walls
Agree Neutral Disagree

36. The shift toward mobile video
is accelerating with 24.1%
more respondents stating that
they have increased mobile
video spend since earlier in the
year.
36
Focus on Video is Accelerating
App install teams continue to rely on mobile video more than ever before
52%41%
7%
1H 2015
76%
17%
7%
2H 2015
Increase
Maintain
Decrease

37. 5% 5%
8%
10%
20%
44%
37
Most Exciting App Install Formats
Which UA channel are you most excited about in 2016?
Display Interstitials Playable Ads Television Social Video

38. 38
App Install Sources over Time
Tried & True Q1 ‘13 Q3 ‘13 Q2 ‘14 Q1 ‘15 Q3 ‘15
Video Ads 100% 100% 100% 98% 97%
In-Feed Display 68% 94% 92% 96% 97%
Interstitials 100% 83% 90% 96% 92%
Display/Banners 89% 86% 86% 93% 92%
Video, display, and interstitials lead the way as native ads and programmatic emerge
Up & Coming Q1 ‘13 Q3 ‘13 Q2 ‘14 Q1 ‘15 Q3 ‘15
In-Feed Video 69% 52% 86%
Native Ads 53%
Programmatic 49%
Declining Q1 ‘13 Q3 ‘13 Q2 ‘14 Q1 ‘15 Q3 ‘15
Direct Deals 63% 72% 59% 54% 44%
Playable Ads 24%
Free App Networks 95% 64% 35% 41% 22%
Offer Walls 100% 64% 47% 54% 19%
Traditional Q1 ‘13 Q3 ‘13 Q2 ‘14 Q1 ‘15 Q3 ‘15
Television 22% 35% 36%
Out of Home 6% 15% 10%
Print 0% 0% 2% 7% 10%

39. 39
Format and Channel Usage over Time
Full screen video, in-feed video, television and interstitials lead the way while in-feed, native, programmatic, and
playable ads emerge
Q1 '13 Q3 '13 Q2 '14 Q1 '15 Q3 '15
Traditional
television, out of home, print
Up & Comers
in-feed video, native ads,
programmatic, playable ads
Decliners
direct deals, free app networks,
offer walls
Tried & True
full screen video, in-feed display,
interstitial display & banners

40. 40
Emerging Mobile App Install Channels
Native, playable & programmatic ads emerge and grow while in-feed video continues to grow
Playable Ads
Programmatic
Native Ads
In-Feed Video
24%
49%
53%
86%
Q3 '15

41. 41
Tried & True App Install Channels
Video, in-feed, display & interstitials continue as top app install channels.
100%
83%
90%
96%
92%
89%
86% 86%
93% 92%
68%
94%
92%
96% 97%
100% 100% 100%
98% 97%
Q1 '13 Q3 '13 Q2 '14 Q1 '15 Q3 '15
Interstitials
Display
In-Feed Display
Video

42. 42
The Demise of Incentivized
Incentivized installs fall out of favor as advertisers continue to focus most on user quality
95%
64%
35%
41%
22%
100%
64%
47%
54%
19%
Q1 '13 Q3 '13 Q2 '14 Q1 '15 Q3 '15
Free App Networks
Offer Walls

43. Targeting
43
Which targeting parameters are most important and help maximize the performance of your app install campaigns?
OS Geography Hashed Source Device Type Audience Source App Age Gender Connection Carrier
Key Requirement Nice to Have Not Required

44. Targeting Level of Service Price Volume Quality
Most Very Somewhat Least
44
Top User Acquisition KPIs
User quality is more important than ever before.

45. 45
Retargeting Campaigns
Retargeting campaigns continue to have mixed results
Retargeting Campaign Use
70%
68%
Q1 2015 Q3 2015
Q1 2015 Q3 2015
How effective are your retargeting campaigns?
3%
19%
34% 34%
9%
5%
18%
36% 36%
5%
Very Ineffective Ineffective Neutral Effective Very Effective

46. 46
Look-alike Campaigns
Look-alike campaigns continue to be both popular and effective at achieving app install goals
Look-alike Campaign Use
89%
93%
Q1 2015 Q3 2015
Q1 2015 Q3 2015
How effective are your look-alike campaigns?
2%
15%
4%
32%
46%
4%
15%
38%
44%
Very Ineffective Ineffective Neutral Effective Very Effective

47. 47
Frequent Campaign Optimization
How often does your team review app install campaign
results and optimize accordingly?
95% of app install teams optimize their
campaigns multiple times a week, if not every
single day.
42%
32%
22%
5%
Every Day
Multiple Times a Week
Every Week
Less than Once a Week

48. 48
Campaign Optimization Frequency
Top grossing developers are optimizing campaigns more frequently than ever before
28%
41%
30%
27%
32%
42%
Weekly or Less Every Few Days Daily
Q1 ‘15 Q3 ‘15

49. 80%
20%
Yes No
Do you localize creative for your UA campaigns?
49
UA Campaign Localization
39% 37%
12%12%
How many countries do you localize for?
< 5 5 - 10 11 - 15 16 +

50. 5% 5%
8%
10%
20%
44%
50
Most Exciting App Install Formats
Which UA channel are you most excited about in 2016?
Display Interstitials Playable Ads Television Social Video

51. 51
Campaign Trend Forecast
As budgets shift to video, social steadily declines.
Increase Spend Testing Channels Increase Reach More Video More Social
Q1 '13 Q3 '13 Q2 '14 Q1 '15 Q3 '15 ’16 Forecast

52. 52
Top Campaign Trends in 2016
App install budgets continue to increase driven by growth in mobile video & global campaigns.
72%
63%
52%
59% 61%
81%
78% 76%
68% 68%
90%
76%
73% 73%
64%
Increase Spend Testing New Channels More Video More Geos Partner Consolidation
1H '15 2H '15 2016

53. 53
2016 Top App Install Trends
Where app install advertisers plan to shift their campaigns in 2016.
90%
76%
73% 73%
64%
51%
47%
37% 36%
32%
Increase Spend Testing Channels Increase Reach Video Fewer Partners Focus on LTV Social Direct Deals Television Programmatic
’16 Forecast

54. 2% 4% 4%
13%
15%
54%
52%
2% 2% 3%
14%
27%
22%
44%
76%
3% 3%
14%
27%
32%
37%
47%
73%
Free App Network Offer Walls Display Interstital Programmatic Direct Deals Social Video
54
2016 Top App Install Trend Forecast
Where app install advertisers plan to shift their campaigns in 2016.
1H 2015
2H 2015
2016 Forecast

55. While CPI remains important,
more advertisers are shifting
their focus to acquiring high
value users to improve overall
return on ad spend
55
The Cost of a User: CPI versus Lifetime Value
App install teams will continue to be more focused on customer lifetime value than cost in 2016
34%
47%
19%
CPI
51%
42%
7%
LTV
More Focused
No Change
Less Focused