Explore key regional trends in the app marketing space based on over 1.3 billion installs and 80 billion app sessions. Multiple benchmarks and insights will be shared including top marketing channels, app engagement, fraud, LTV, cost & ROAS. For the first time, AppsFlyer's overall market spend predictions will be revealed.

1. LONDON,
NICE OF YOU TO

2. From the UK with
Staff Traffic (NOI)
2x (2018 vs. 2017)

3. 1 in 3
Customer-Obsessed
CUSTOMER
RETENTION
97%
CUSTOMER
FACING

4. Product-Driven
LARGEST
R&D
TEAM
2.5X INDUSTRY
AVERAGE
FASTEST
RELEASE
CYCLE
3X INDUSTRY AVERAGE

5. The State of App Marketing:
UK & Western Europe
2018 vs. 2017 Trends

6. Data Sample
1.3 Billion
Installs
80+ Billion
App opens
$250 Million
Revenue
290 Million
Installs with cost data

7. FOCUS
Overall Market Trends

8. INSTALLS

9. Non-Organic Rising
UK Share of Non-Organic Installs in the App Install Pie
Non-organic
Organic
2016 2017 2018
22%
78%
24%
76% 69%
31%
UK

10. Non-Organic Rising
Western Europe Share of Non-Organic Installs in the App Install Pie
Non-organic
Organic
2016 2017 2018
20%
80%
23%
77%
31%
69%
Western
Europe

11. Apps Increasingly Investing
in Paid Channels
UK YOY Growth in Average Number of Installs Per App
+79%
+56%
2016
Non-Organic
2017 2018
Organic
+78%
+9%
2016 2017 2018
UK

12. Apps Increasingly Investing
in Paid Channels
Western Europe YOY Growth in Average Number of Installs Per App
+ 89%
+67%
2016
Non-Organic
2017 2018
Organic
+51%
+8%
2016 2017 2018
Western
Europe

13. Popularity of Video Surging
Share of Paid Installs Driven by Video Ads
UK Western Europe
6.4%
8.1%
14.1%
7.0%
7.7%
12.5%
2016
2017
2018

14. Top Media
Sources by
Installs & Client
Adoption
(April-May)
UK
2016

15. 2017
NEW
+4
+4
-5
Top Media
Sources by
Installs & Client
Adoption
(April-May)
UK
2016

16. Top Media
Sources by
Installs & Client
Adoption
(April-May)
UK
+3
+34
-4
+3
+5
+6
2017
NEW
+4
+4
-5
2016
2018

17. Top Media
Sources by
Installs & Client
Adoption
(April-May)
Western Europe
2016

18. 2017
-4
+5
+3
+4Top Media
Sources by
Installs & Client
Adoption
(April-May)
Western Europe
2016

19. 2017
Top Media
Sources by
Installs & Client
Adoption
(April-May)
Western Europe
NEW
-3
+33
-4
+5
+3
+4
2016
2018

20. INSTALL Takeaways
App owners investing in non-organic amid
organic decline with an increased
confidence in data & analytics
Marketers turning to video to drive quality
installs at scale
Top media lists: Shift in popularity away
from volume to value
1
2
3

21. ENGAGEMENT

22. Only UK Non-Organic Users Show
Improved Retention
Day 30 Retention
5.6%
7%
Non-Organic Organic
8.3%
7.6% 7.4.%
6.4%
Non-Organic Organic
9.4%
8.1%
UK
2017 2018
Western
Europe

23. Organic Quality Demonstrated
in Long Term Retention
Week 12 Retention
7.3% 7.6%
2017
Non-Organic Organic
12.5% 12.3%
8.9.%
7.4%
Non-Organic Organic
12.5% 12.7%
2018
UK Western
Europe

24. Engagement Challenge → Retargeting
Retargeting Conversions Per App Running Campaigns (2017 vs. 2018)
+90%
UK
+44%
Western
Europe

25. App Usage on the Rise Across the Board
Average Sessions Per User (30 Days)
8.6
9.4
2017
Non-Organic Organic
7.7
8.5 8.1
9.3
Non-Organic Organic
8.1
8.8
2018
UK Western
Europe

26. ENGAGEMENT Takeaways
Acquired UK users showing improved
retention, but that’s the exception...
Sessions growth means apps used more
often but over shorter time frame (retention
drop)
Marketers are increasing their investment to
bring users back to their app, especially in the
UK
1
2
3

27. LTV

28. Revenue-Driven Optimizations Bearing Fruit
Day 90 LTV By Platform (USD)
1.47
1.96
2017
1.93
2.20
1.22
1.50 1.50
2.34
2018
UK Western
Europe
55%
33%

29. More Users Converted to Paying Users
Share of Paying Users (90 Days)
4.9%
6.3%
2017
Non-Organic Organic
5.4%
6.5%
5.1%
5.7%
Non-Organic Organic
6.2%
2018
UK Western
Europe
5.3%

30. Revenue Rising, Especially from Non-Organic Users
Day 90 LTV By Type (USD)
1.27
2.02
2017
Non-Organic Organic
1.88
2.13
1.14
1.86
Non-Organic Organic
1.36
1.90
2018
UK Western
Europe
59%
63%

31. Revenue-related KPIs positive across the board.
Good job app marketers!
iOS LTV outperforms Android, but its lead in UK is not
as pronounced as in Western Europe
Gap between organic and non-organic LTV is
narrowing thanks to increased growth of the latter
LTV Takeaways
1
2
3

32. https://bit.ly/ltv-webinar

33. Cost & ROI

34. It’s Getting Expensive Out There
Cost Per Install (USD)
1.52
1.68
2017
2.29
2.52
1.52
1.66
2.47
2018
UK Western
Europe
2.28

35. Android Return Better than iOS,
At Least in Short Term
Return on Ad Spend (90 Days)
87.8%
108.9%
2017
44.8%
67.7%
94.4%
99.0% 90.6%
2018
UK Western
Europe
61%
Break-even point

36. Cost and ROI Takeaways
Acquisition costs keep rising but LTV is growing faster,
leading to improved ROAS
Android more profitable than iOS mainly because its
cost is considerably lower
However, the iOS LTV uplift and steady cross platform
CPI growth has lead to iOS ROAS improving at a faster
rate than Android
1
2
3

37. FRAUD

38. Fraud Comes in Waves
Overall App Install Fraud Rate Trend
Jan 18 Feb 18 Mar 18 Apr 18 May 18
UK
Western
Europe
8.9%
9.0%
10.3% 10.0%
9.0%
7.0% 7.2%
8.3%
7.6%
7.3%

39. UK
High Click Flooding Rate in the UK
Fraud Distribution By Type
3.5%
19.6%
26.4%
37.6%
12.9%
5.8% 8.2%
35.2%
33.2%
17.6%
Click flood
Install hijacking
Device farms
Bots
Behavioral
Anomalies
Western
Europe

40. $37M
UK
$102M
Western
Europe
High Payout Attracts Fraudsters
Financial Exposure (January-May 2018)

41. Fraud Takeaways
UK fraud much higher than Western Europe, mainly due to a
high click flood rate
Fraud comes in waves and after a drop in recent months, an
increase can be expected as fraudsters make their move
Over a third of the exposure to fraud in Western Europe is in
the UK -- much higher than its relative size; high payout and
size of market attract fraudsters
1
2
3

42. UNVEILING
App Install Market Predictions
Industry-First!

43. Model
5 different statistical models applied
Based on AppsFlyer’s historical data comprising of
35 billion installs $10 billion in ad spend 30,000 apps
Marketing-driven app installs divided into two groups:
1) Attribution market
2) Non-attributed market
Other key parameters
● 3rd party mobile attribution market share
● CPI per region
● Number of apps in the app stores
● Number of installs

44. Mobile Attribution is eating into the
Non-Attributed share
Non-Organic Installs in Europe in Billions (2017-2020)
1.0
2.0
2017 2018 2019 2020
1.2
3.0
1.5
3.9
1.7
4.6
Non-Attributed Mobile Attribution

45. High Growth Rate Predicted in Spend
Despite Relative Slowdown
App Install Ad Spend in Europe, in Billions (2017-2020)
Mobile Attribution Non-Attributed YOY Growth
2017 2018 2019 2020
$3.2
$1.6
$4.9
$1.9
$4.8
$6.8
$9.0
$6.8
$2.3
$8.4
$2.5
$10.9
42%
32%
21%

46. 1-2-3 Takeaways
The Mobile Attribution market in Europe is expected to
grow at the expense of the non-attributed market as
more apps realize the need for increased
measurement
The equation is clear:
Higher cost + more paid campaigns + more apps
+ increased mobile use + more users
= increased spend
Teaser: Europe’s share in the pie will remain relatively
consistent, while North America’s share will decrease;
growth will be driven by Asia
1
2
3

47. THANK YOU!