The document summarizes key findings from a survey of top mobile app developers on app install marketing trends in Q3 2016. Some of the main findings include: - User quality is the top priority metric over factors like price and volume. Early indicators like social logins and tutorial completion are now more important quality signals than retention. - Video and display formats receive the majority of app install budgets. Full-screen video and playable ads are considered the most effective channels. - Look-alike and retargeting campaigns continue growing in popularity and effectiveness for driving app installs.

1. Top App Install Marketing Trends for 2017

2. Based on aggregated market data of top 100 grossing ad spend & install volume.
The semi-annual AdColony app install survey
Insights, benchmarks and trends from the top 100 grossing app developers
#6 6th iteration over 3 years
130 Detailed questions
65% Survey response rate
62% Mobile game developers
38% Non-Game app developers
(e.g. entertainment, music, news)
$1M+ Total monthly app install budget
FORMAT & DATA RESPONDENT PROFILE
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3. The basics
Team size and optimisation frequency

4. Source: AdColony Q3 2016 App Install Marketing Survey
Teams are running leaner than this time last year, with the the average team having 4 members.
Medium sized app install teams grow in prominence
24%
48%
20%
9%
5%
58%
18% 18%
14%
47%
31%
8%
1 2-5 6-9 10+
Q1 2015
Q3 2015
Q3 2016
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5. Source: AdColony Q3 2016 App Install Marketing Survey
On average, top UA teams optimise their campaigns 3.25 times per week.
Campaign optimisation frequency
28%
41%
30%
27%
32%
42%
22%
33%
44%
Weekly or Less Every Few Days Daily or More
Q1 ‘15 Q3 ‘15 Q3 ‘16
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6. Source: AdColony Q3 2016 App Install Marketing Survey
CPA becomes more prevalent as CPM, CPC and CPCV campaigns fall.
CPI dominates as campaign pricing model
3%
12%
15%
22%
43%
33%
22%
95%
1% 3% 4%
17% 17%
21%
31%
96%
Other CPL CPE CPM CPCV CPC CPA CPI
Q3 ‘15 Q3 ‘16
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7. Source: AdColony Q3 2016 App Install Marketing Survey
What % of your budget do you allocate to each app install format you currently use?
App install budget allocation
33%
25%
22%
11%
3%
5%
Video (non-social)
Social (video & display)
Display (non-social)
Native & Playable
Traditional
Other
Video and display ads dominate the majority
of app install budget allocation for top
publishers.
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8. Top KPI’s
What the top app install marketers look for

9. Source: AdColony Q3 2016 App Install Marketing Survey
User quality is the undisputed top KPI for top app install marketers
Top user acquisition KPI’s
User Quality Price Volume Level of Service Targeting
Not important at all
Somewhat important
Moderately important
Very important
Most important
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10. Source: AdColony Q3 2016 App Install Marketing Survey
What are early indicators of a high quality loyal user who is likely to monetise via IAP?
Retention no longer leading quality indicator
17%
0%
11%
33%
89%
76%
2% 3%
25%
33%
83%
73%
6% 8%
19%
26%
68%
71%
Social Log-In Positive Review Session Time Tutorial Completion Retention Early IAP
Q1 2015
Q3 2015
Q3 2016
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11. Source: AdColony Q3 2016 App Install Marketing Survey
What tools do you use to track ROI?
Top ROI tracking tools
2.8% 2.8%
31.0%
73.2% 74.7%
Upsight TUNE Multiverse Tableau In-house custom tools Spreadsheets
Score
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12. Quality and scale
Preferred partners

13. Source: AdColony Q3 2016 App Install Marketing Survey
Video, display and native ads lead the way
Top app install formats by usage
Print
App networks Offer walls Television Rich media In-feed video Social display Interstitial display
Radio Outdoor Cross promo Playable Native ads Banner Social video Full-screen video
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14. Source: AdColony Q3 2016 App Install Marketing Survey
Share of advertisers awarding top two box responses regarding channel effectiveness at
achieving campaign objectives.
Most effective app install formats
Offer walls Cross promo Outdoor Television Playable ads Social display Social video
Free app networks Rich media Banner Interstitial Native ads In-Feed video Full-screen video
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15. Source: AdColony Q3 2016 App Install Marketing Survey
Who are your top 3 sources for driving app installs at scale?
Driving app install at scale
Highlights:
• ↓ Supersonic down from 8 to 19
• ↓ Chartboost down from 7 to 11
• ↑ Instagram up from 13 to 8
• ↑ Twitter up from 10 to 7
Ironsource Appia Pinterest
Glispa
Applift Vungle Google
Chartboost
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16. Source: AdColony Q3 2016 App Install Marketing Survey
Who are your top 3 sources for driving app installs at scale?
Driving UA quality
Highlights:
• ↓ Chartboost down from 6 to 21
• ↓ AppLovin down from 3 to 6
• ↑ Taptica up from 17 to 9
• ↑ Google up from 4 to 3
Chartboost
Liquid Aditor AppLift Taptica AppLovin Google
Supersonic Pinterest Lifestreet Liftoff Instagram Vungle AdColony
Glispa @Pau1West

17. Source: AdColony Q3 2016 App Install Marketing Survey
App install budgets continue to increase driven by growth in mobile video & global campaigns.
Top 5 campaign trends
72%
52%
59%
61%
63%
81%
76%
68% 68%
78%
89%
81%
77%
75%
73%
Increase Spend More Video More Geos Partner Consolidation Testing New Channels
Q1 ‘15 Q3 ‘15 Q3 ‘16
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18. Channel analysis
Popularity, commitment and effectiveness

19. Source: AdColony Q3 2016 App Install Marketing Survey
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Look-alike Campaigns
Look-alike campaigns continue to be both popular and effective at achieving app install goals.
2%
15%
4%
32%
46%
4%
15%
38%
44%
7%
16%
77%
Very Ineffective Ineffective Neutral Effective Very Effective
Q1 ‘15 Q3 ‘15 Q3 ‘16
89
%
93
%
93
%
Q1 '15 Q3 '15 Q3 '16
Look-alike Usage How effective are your look-alike campaigns?

20. Source: AdColony Q3 2016 App Install Marketing Survey
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Q1 ‘15 Q3 ‘15 Q3 ‘16
Retargeting Campaigns
More advertisers find retargeting to be effective in 2016 than in 2015.
Retargeting Usage
70
%
68
%
75
%
Q1 '15 Q3 '15 Q3 '16
How effective are your retargeting campaigns?
3%
19%
34% 34%
9%
5%
18%
36% 36%
5%
2%
17%
11%
33%
37%
Very Ineffective Ineffective Neutral Effective Very Effective

21. Source: AdColony Q3 2016 App Install Marketing Survey
Channel usage over time: Traditional media
22%
6%
2%
35%
15%
7%
36%
10% 10%
25%
15%
9%
Television Out of Home Print
Q2 ’14
Q1 ‘15 Q3 ‘15 Q3 ‘16
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22. Source: AdColony Q3 2016 App Install Marketing Survey
Certain advertisers are leveraging and finding benefits
Channel analysis: Television
25%
75%
Use Rate
29%
71%
EffectivenessBudget Allocation
3%
97%
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23. Source: AdColony Q3 2016 App Install Marketing Survey
How effective are television ads at achieving your campaign goals?
App install channel effectiveness: Television
0%
12%
6%
53%
0%
29%
0%
Least 2 3 Neutral 5 6 Most
Banner Display
#11: Television
Only a small segment of app
install marketers find television
ads to be an effective UA
channel.
Most Effective App Install Formats
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24. Source: AdColony Q3 2016 App Install Marketing Survey
Full screen video remains the most popular app install channel
Channel analysis: Full-screen video
91%
9%
Use Rate
96%
4%
EffectivenessBudget Allocation
24%
76%
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25. Source: AdColony Q3 2016 App Install Marketing Survey
How effective are full-screen video ads at achieving your campaign goals?
App install channel effectiveness: Full screen video
0%
2%
0%
2%
10%
39%
47%
Least 2 3 Neutral 5 6 Most
Video — Full Screen
#1: Full-Screen Mobile
Video
Full-screen mobile video is
considered to be the most
effective app install channel
Most Effective App Install Formats
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26. Source: AdColony Q3 2016 App Install Marketing Survey
Advertisers are impressed & excited about the future of playable ads.
The rise of playable
2%
Share of Budget
71%
0%
Playable Effectiveness
Agree Neutral Disagree
Excitement
25%
0%
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27. Source: AdColony Q3 2016 App Install Marketing Survey
What UA channel are you most excited about?
Channel excitement over time
2%
9%
22%
9%
50%
5%
10%
20%
8%
44%
4%
19%
25%
42%
Interstitials Television Social Video Playable Ads Full-Screen Video
Q1 ‘15 Q3 ‘15 Q3 ‘16
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