SlideShare a Scribd company logo
Understanding the
Relationship Between Paid
and Organic Installs
A STUDY ON HOW PAID DOWNLOADS IMPACT ORGANIC DOWNLOADS
Understanding the Relationship Between Paid and Organic Installs
PAGE 1
Understanding the Relationship
Between Paid and Organic Installs
Compared to online or digital marketing, mobile app marketing is still in its infancy.
Although relatively young in years, it has matured and evolved at an astounding rate.
This evolution has largely been driven by consumers spending more time on mobile
devices and within apps, which has led to a significant shift of time, money, and other
marketing resources towards these areas. As this transition continues, and
organizations focus more on marketing their apps, it's becoming increasingly
important for brands to clearly understand the implications of their ad spend -
particularly as it pertains to the unique relationship between paid and organic
marketing.
The balance between paid and organic marketing that exists in the online world,
seems to have been lost somewhere along the way in app marketing. In certain
instances, a one-sided approach has worked and resulted in very successful apps.
A STUDY ON HOW PAID DOWNLOADS IMPACT ORGANIC DOWNLOADS
ABSTRACT
The following white paper covers a study conducted by TUNE (parent company of MobileDevHQ
and MobileAppTracking).
The goal of the study was to answer the question: for every paid install, how many organic
installs can an app expect to see?
The results indicate that there is a significant positive correlation between paid and organic installs,
and also show that the direct impact on organic installs varies depending on the category and
operating system (OS) of the app. Read on to see how many organic installs an app can expect to
see for each paid install, segmented by category and OS.
Understanding the Relationship Between Paid and Organic Installs
PAGE 2
Apps that rely heavily on paid marketing usually have an extremely accurate
lifetime-value (LTV) measurement and marketers know exactly how much they can
afford to spend on paid installs. It makes sense for them to tap a reliable and steady
source of downloads through a publisher such as Twitter. Other apps, like Flappy Bird,
have zero marketing spend and still manage to dominate the Top Charts purely
through organic installs.
It’s important to remember that these types of apps are the outliers and not the norm.
For the other 99.9% of apps, having a strategic mix between paid and organic
marketing efforts is vital to success because of the unique relationship between paid
and organic installs. In the app world, running paid install campaigns boosts two (of
the many) specific metrics that impact an app’s rank in the app store: total downloads
and download velocity. With these paid campaigns, the boost to both metrics also
increases the app’s ranking in the Top Charts and search, which leads to greater
visibility and more organic downloads.
Experienced app marketers are aware that, on some level, an increase in paid installs
will lead to an increase in organic installs, which isn’t ground-breaking news. But is
there any way to quantify an approximate multiplier for the impact of paid installs on
organic installs? Or in other words, for every paid install, how many organic installs can
an app expect to see?
Methodology
Using anonymized data from thousands of apps (data provided by TUNE),
we were able to calculate a coefficient that significantly correlates paid
and organic installs. We then ran a linear regression between the paid and organic
installs. To validate the regression models, we checked residuals, adjusted R square,
and p-values (an indicator of significance). Our requirement for the data to be
sufficient was a correlation greater than 0.4 and a p-value less than 0.05.
Paid
Campaign
More
Downloads
+
Increased
Download
Velocity
Increased
Top Charts
and Search
Ranking
Increase
Visibility
More
Organic
Downloads
Understanding the Relationship Between Paid and Organic Installs
PAGE 3
We also segmented the data by different categories and operating systems because
these factors affect the results, which show the impact of paid installs on organic
installs across all apps. In addition, we created a table that highlights the impact of
paid installs on several distinct app categories.
Generalized Results: Is the Effect Real?
The first thing we wanted to test was the general impact of paid installs
on organic installs across all categories and both app stores (Google
Play and Apple). Essentially, we wanted to know if paid installs really do have a
significant impact on organic installs. The Business Intelligence team at TUNE
analyzed the relationship between paid and organic installs for thousands of
advertisers (apps paying for installs) over the course of 245 days. They found an
extremely strong relationship, and can say with 95% confidence that for every paid
install an app receives, it can expect to also acquire an additional 1.5 organic installs.
For all of the findings in this study, one
important factor is that this is a trend, and
scale matters. Many of the conclusions
drawn in this white paper are from apps
with millions of downloads (e.g. for every
one million paid installs, advertisers can
expect to see an additional 1.5 million
organic installs). So although the trend
can be applied to apps paying for
downloads on a smaller scale, the
confidence levels and p-values come
from numbers on a larger scale.
The following scatter plot shows the
direct correlation between paid and
organic installs.
Paid Installs
OrganicInstalls
1.3e+07
1.3e+07
9.0e+06
1,000,000 1,600,0001,400,0001,200,000
Understanding the Relationship Between Paid and Organic Installs
PAGE 4
These results were very encouraging, and allowed us to be confident in the underlying
assumption that paid installs do have a strong positive correlation with organic
installs. Although confirming the correlation can be useful, all app categories are not
equal. We know that in terms of total number of apps and total downloads, some
categories are more popular than others. For example, the following graph shows the
distribution of iOS apps sorted by category.
As you can see, the top five categories account for more than 50% of the total app
population. So how strong or how varied is the correlation between paid and organic
installs across different app categories and operating systems? The following section
substantiates the coefficient across these factors.
22.5%
20%
17.5%
20.38%GAMES
10.36%EDUCATION
9.43%BUSINESS
8.01%LIFESTYLE
7.13%ENTERTAINMENT
5.21%UTILITIES
4.8%TRAVEL
4.31%BOOKS
3.24%MUSIC
2.87%PRODUCTIVITY
2.74%HEALTHANDFITNESS
2.73%SPORTS
2.57%REFERENCE
2.55%PHOTOANDVIDEO
2.43%NEWS
2.42%FINANCE
2.18%FOODANDDRINK
2.11%MEDICAL
1.9%SOCIALNETWORKING
1.27%NAVIGATION
15%
12.5%
10%
7.5%
5%
2.5%
Source: Statista
Understanding the Relationship Between Paid and Organic Installs
PAGE 5
Category-Specific Results: The App Marketer’s Cheat Sheet
Knowing that paid installs do, in fact, impact organic installs, we wanted to provide
more insightful data than a simple generic 1.5x metric. We calculated new multipliers
for separate categories and operating systems. In the following table, you can see how
many organic installs an app can expect to see for each paid install, on average. We
only present categories that have sufficient correlation and p-values (correlation > 0.4
and p-value < 0.05). Therefore, not every category is listed below.
This information has huge implications and can be extremely useful for informing
marketing decisions and strategy. For example, an Android Tools app could look at
their multiplier of 0.3, and know that they will likely have to pay for three or four
downloads in order to receive one additional organic download. Armed with this
information, and working with the knowledge that organic users tend to be higher
quality than paid users (based on intent, engagement, revenue, ratings, etc.), they
might decide to pay a premium and work with a publisher who can deliver a high
quality, targeted, paid user.
*Predicted Organic Installs = Paid Installs x <Organic Multiplier>
iOSANDROID
CATEGORY
Entertainment
Games
Lifestyle
Social Networking
Sports
Utilities
ORGANIC MULTIPLIER
0.9
5.4
5.2
4.8
1.5
3.9
CATEGORY
Adventure
Arcade
Business
Card
Casino
Casual
Music & Audio
Personalization
Racing
Shopping
Strategy
Tools
Transportation
Travel and Local
Word
ORGANIC MULTIPLIER
3.6
1.5
1.6
1.4
2.1
5.4
6.1
0.2
13.3
1.0
0.6
0.3
16.6
1.6
7.2
Understanding the Relationship Between Paid and Organic Installs
PAGE 6
On the other hand, a marketer for an iOS Game, working with the same
knowledge about user quality, might decide they can risk using a
less-reputable publisher, because they will receive five high-quality organic
users for every one low-quality paid user. Does this mean Android Tools
shouldn’t be doing paid marketing? Absolutely not. It just implies they should
be more conscious about which publishers they are choosing.
There are numerous other ways this information can be applied. But it’s
important to remember that these are trends based on larger scale, and they
are averages. If an Android Casino app runs a one-time burst campaign for
100 downloads, we do not guarantee that they will see an additional 210
organic downloads.
Bringing it All Together
The harmonious relationship between paid and organic marketing is
something that is truly unique to apps. Because this relationship is
so strong, app marketers cannot afford to only focus on one or the other.
Having a strong balance between paid and organic efforts is key to thriving as
an app marketer. We hope that this white paper has helped provide
understanding around how app marketing is unique, why having a balanced
strategy is important, and how the relationship between paid and organic
installs works.
We will continue to update data and add new categories to this table in the
coming months. If you have any questions, feel free to reach out to
research@mobiledevhq.com.
For more insights on app marketing strategies and app store optimization,
please visit www.mobiledevhq.com/articles.
Understanding the Relationship Between Paid and Organic Installs
PAGE 7
About MobileDevHQ by TUNE
MobileDevHQ is the leading enterprise organic app marketing platform. We've
been working with app marketers since 2009, and over and over again, we've
met smart, hungry marketers looking for better ways to get downloads for their
app. Tired of spending large sums of money on paid advertising (only to
generate low LTV on those users), they're turning to organic channels such as
App Store Optimization (app store SEO) for low-cost, high-quality installs with a
high ROI.
If you’re interested in learning more, feel free to sign up for a free account today,
or reach out to sales@mobiledevhq.com for a free demo!
About MobileAppTracking
MobileAppTracking (MAT) is the industry standard for mobile app marketers
to measure performance, and builds best-in-class tools to help marketers
attribute their user acquisition, engagement, and retention campaigns to the
appropriate channels and partners. MAT provides attribution for more than
half of the top grossing apps in the iTunes and Google Play stores today.
Customers include: Supercell, Spotify, Kayak, Uber, Square, EA, G5, Sephora,
Hipmunk, LINE, Gilt, JackThreads, William Hill, Gumi, Nickelodean, Zoosk,
eHarmony, and eBay Korea.
To learn more about MAT, you can visit their website at
www.MobileAppTracking.com

More Related Content

What's hot

Brand portfolio strategy presentation
Brand portfolio strategy presentationBrand portfolio strategy presentation
Brand portfolio strategy presentation
MK-Africa
 
MEASURING SOURCES OF BRAND EQUITY: CAPURING CUSTOMER MINDSET
MEASURING SOURCES OF BRAND EQUITY: CAPURING CUSTOMER MINDSETMEASURING SOURCES OF BRAND EQUITY: CAPURING CUSTOMER MINDSET
MEASURING SOURCES OF BRAND EQUITY: CAPURING CUSTOMER MINDSET
Avinash Singh
 
TH Range architecture
TH Range architectureTH Range architecture
TH Range architecture
Massimiliano La Franca
 
Celine
CelineCeline
Strategy of co branding
Strategy of co brandingStrategy of co branding
Strategy of co branding
Suryadev Maity
 
International branding
International brandingInternational branding
International branding
0508011991
 
Branding Architecture and Brand Portfolio - Introduction to Branding
Branding Architecture and Brand Portfolio - Introduction to BrandingBranding Architecture and Brand Portfolio - Introduction to Branding
Branding Architecture and Brand Portfolio - Introduction to Branding
Rai University Ahmedabad
 
Branding PowerPoint Presentation Slides
Branding PowerPoint Presentation Slides Branding PowerPoint Presentation Slides
Branding PowerPoint Presentation Slides
SlideTeam
 
Brand startegies ppt
Brand startegies pptBrand startegies ppt
Branding + brand architecture
Branding + brand architectureBranding + brand architecture
Branding + brand architecture
Rob Pearce Packaging and Brand Design
 
Range architecture
Range architectureRange architecture
Range architecture
Massimiliano La Franca
 
Brand Strategy
Brand StrategyBrand Strategy
Brand Strategy
VasudhaTiwari
 
Introduction to Brand Management
Introduction to Brand ManagementIntroduction to Brand Management
Introduction to Brand Management
Hafiz Hudani
 
Successful campaign of Bvlgari on social media
Successful campaign of Bvlgari on social mediaSuccessful campaign of Bvlgari on social media
Successful campaign of Bvlgari on social media
Yu Tang
 
Brand management chapter 10
Brand management chapter 10Brand management chapter 10
Brand management chapter 10
BushraAhmed62
 
presentation of brands
presentation of brandspresentation of brands
presentation of brandsSilence Speed
 
Lecture 7-29.10.pptx
Lecture 7-29.10.pptxLecture 7-29.10.pptx
Lecture 7-29.10.pptx
UmidJurayev
 
Brand positioning
Brand positioningBrand positioning
Brand positioning
Oluwaseun Ajibade
 
Supervising, Managing & Leading salespeople
Supervising, Managing & Leading salespeopleSupervising, Managing & Leading salespeople
Supervising, Managing & Leading salespeople
Saad Elhalafawy
 

What's hot (20)

Brand portfolio strategy presentation
Brand portfolio strategy presentationBrand portfolio strategy presentation
Brand portfolio strategy presentation
 
MEASURING SOURCES OF BRAND EQUITY: CAPURING CUSTOMER MINDSET
MEASURING SOURCES OF BRAND EQUITY: CAPURING CUSTOMER MINDSETMEASURING SOURCES OF BRAND EQUITY: CAPURING CUSTOMER MINDSET
MEASURING SOURCES OF BRAND EQUITY: CAPURING CUSTOMER MINDSET
 
TH Range architecture
TH Range architectureTH Range architecture
TH Range architecture
 
Celine
CelineCeline
Celine
 
The Brand Concept Platform - An introduction
The Brand  Concept Platform - An introductionThe Brand  Concept Platform - An introduction
The Brand Concept Platform - An introduction
 
Strategy of co branding
Strategy of co brandingStrategy of co branding
Strategy of co branding
 
International branding
International brandingInternational branding
International branding
 
Branding Architecture and Brand Portfolio - Introduction to Branding
Branding Architecture and Brand Portfolio - Introduction to BrandingBranding Architecture and Brand Portfolio - Introduction to Branding
Branding Architecture and Brand Portfolio - Introduction to Branding
 
Branding PowerPoint Presentation Slides
Branding PowerPoint Presentation Slides Branding PowerPoint Presentation Slides
Branding PowerPoint Presentation Slides
 
Brand startegies ppt
Brand startegies pptBrand startegies ppt
Brand startegies ppt
 
Branding + brand architecture
Branding + brand architectureBranding + brand architecture
Branding + brand architecture
 
Range architecture
Range architectureRange architecture
Range architecture
 
Brand Strategy
Brand StrategyBrand Strategy
Brand Strategy
 
Introduction to Brand Management
Introduction to Brand ManagementIntroduction to Brand Management
Introduction to Brand Management
 
Successful campaign of Bvlgari on social media
Successful campaign of Bvlgari on social mediaSuccessful campaign of Bvlgari on social media
Successful campaign of Bvlgari on social media
 
Brand management chapter 10
Brand management chapter 10Brand management chapter 10
Brand management chapter 10
 
presentation of brands
presentation of brandspresentation of brands
presentation of brands
 
Lecture 7-29.10.pptx
Lecture 7-29.10.pptxLecture 7-29.10.pptx
Lecture 7-29.10.pptx
 
Brand positioning
Brand positioningBrand positioning
Brand positioning
 
Supervising, Managing & Leading salespeople
Supervising, Managing & Leading salespeopleSupervising, Managing & Leading salespeople
Supervising, Managing & Leading salespeople
 

Similar to Understanding the Relationship Between Paid and Organic Installs Final

Improving your profitability, success and organic traffic through ASO
Improving your profitability, success and organic traffic through ASOImproving your profitability, success and organic traffic through ASO
Improving your profitability, success and organic traffic through ASO
Adjust
 
App Store Optimization
App Store Optimization App Store Optimization
App Store Optimization Leadmill
 
Crm updated report
Crm updated reportCrm updated report
Crm updated report
KarthikSundaresanSub
 
Lifetime Value: The Cornerstone Of App Marketing
Lifetime Value: The Cornerstone Of App MarketingLifetime Value: The Cornerstone Of App Marketing
Lifetime Value: The Cornerstone Of App Marketing
Harsha MV
 
Apperian 2016 Executive Enterprise Mobility Report
Apperian 2016 Executive Enterprise Mobility ReportApperian 2016 Executive Enterprise Mobility Report
Apperian 2016 Executive Enterprise Mobility Report
Jennifer Walker
 
Apperian 2016 Executive Enterprise Mobility Report_FINAL_20160217
Apperian 2016 Executive Enterprise Mobility Report_FINAL_20160217Apperian 2016 Executive Enterprise Mobility Report_FINAL_20160217
Apperian 2016 Executive Enterprise Mobility Report_FINAL_20160217Sophie Jasson-Holt
 
mHealth App Developer Economics 2015 by research2guidance
mHealth App Developer Economics 2015 by research2guidancemHealth App Developer Economics 2015 by research2guidance
mHealth App Developer Economics 2015 by research2guidance
research2guidance - The mobile research specialists
 
R 13-bii appmarketingreport-2013_freeappmkt
R 13-bii appmarketingreport-2013_freeappmktR 13-bii appmarketingreport-2013_freeappmkt
R 13-bii appmarketingreport-2013_freeappmkt
Centrum Adama Smitha
 
Empirical analysis on iOS app Popularity
Empirical analysis on iOS app PopularityEmpirical analysis on iOS app Popularity
Empirical analysis on iOS app PopularityMin-Hsueh Tsai
 
Appurify Performance Automation Whitepaper FINAL
Appurify Performance Automation Whitepaper FINALAppurify Performance Automation Whitepaper FINAL
Appurify Performance Automation Whitepaper FINALJennifer Shambroom
 
ASO Barcamp with Traffic Optimiser - 12th March 2015
ASO Barcamp with Traffic Optimiser - 12th March 2015ASO Barcamp with Traffic Optimiser - 12th March 2015
ASO Barcamp with Traffic Optimiser - 12th March 2015
Jean-Vincent 'JV' Chardon
 
ASO Barcamp Talk 1: The Relationship Between Paid and Organic App Installs
ASO Barcamp Talk 1: The Relationship Between Paid and Organic App InstallsASO Barcamp Talk 1: The Relationship Between Paid and Organic App Installs
ASO Barcamp Talk 1: The Relationship Between Paid and Organic App Installs
Adapt Worldwide
 
Marketing plan
Marketing planMarketing plan
Marketing plan
Rishabh Gupta
 
Apperian 2015 Executive Enterprise Mobility Survey
Apperian 2015 Executive Enterprise Mobility SurveyApperian 2015 Executive Enterprise Mobility Survey
Apperian 2015 Executive Enterprise Mobility Survey
Jennifer Walker
 
John Blue - Apps For Agriculture
John Blue - Apps For AgricultureJohn Blue - Apps For Agriculture
John Blue - Apps For Agriculture
John Blue
 
The beginners-guide-to-mobile-advertising-analytics updated
The beginners-guide-to-mobile-advertising-analytics updatedThe beginners-guide-to-mobile-advertising-analytics updated
The beginners-guide-to-mobile-advertising-analytics updated
Suthasinee Lieopairoj
 
Fintech App Benchmark Report 2022
Fintech App Benchmark Report 2022Fintech App Benchmark Report 2022
Fintech App Benchmark Report 2022
Manan Sharma
 
Telemedicine App Development Cost: Budgeting Your Virtual Healthcare Solution
Telemedicine App Development Cost: Budgeting Your Virtual Healthcare SolutionTelemedicine App Development Cost: Budgeting Your Virtual Healthcare Solution
Telemedicine App Development Cost: Budgeting Your Virtual Healthcare Solution
Lucy Zeniffer
 
Telemedicine App Development Cost: Budgeting Your Virtual Healthcare Solution
Telemedicine App Development Cost: Budgeting Your Virtual Healthcare SolutionTelemedicine App Development Cost: Budgeting Your Virtual Healthcare Solution
Telemedicine App Development Cost: Budgeting Your Virtual Healthcare Solution
Lucy Zeniffer
 
2022 Dating Apps Report - EN.pdf
2022 Dating Apps Report - EN.pdf2022 Dating Apps Report - EN.pdf
2022 Dating Apps Report - EN.pdf
DebashishSahoo17
 

Similar to Understanding the Relationship Between Paid and Organic Installs Final (20)

Improving your profitability, success and organic traffic through ASO
Improving your profitability, success and organic traffic through ASOImproving your profitability, success and organic traffic through ASO
Improving your profitability, success and organic traffic through ASO
 
App Store Optimization
App Store Optimization App Store Optimization
App Store Optimization
 
Crm updated report
Crm updated reportCrm updated report
Crm updated report
 
Lifetime Value: The Cornerstone Of App Marketing
Lifetime Value: The Cornerstone Of App MarketingLifetime Value: The Cornerstone Of App Marketing
Lifetime Value: The Cornerstone Of App Marketing
 
Apperian 2016 Executive Enterprise Mobility Report
Apperian 2016 Executive Enterprise Mobility ReportApperian 2016 Executive Enterprise Mobility Report
Apperian 2016 Executive Enterprise Mobility Report
 
Apperian 2016 Executive Enterprise Mobility Report_FINAL_20160217
Apperian 2016 Executive Enterprise Mobility Report_FINAL_20160217Apperian 2016 Executive Enterprise Mobility Report_FINAL_20160217
Apperian 2016 Executive Enterprise Mobility Report_FINAL_20160217
 
mHealth App Developer Economics 2015 by research2guidance
mHealth App Developer Economics 2015 by research2guidancemHealth App Developer Economics 2015 by research2guidance
mHealth App Developer Economics 2015 by research2guidance
 
R 13-bii appmarketingreport-2013_freeappmkt
R 13-bii appmarketingreport-2013_freeappmktR 13-bii appmarketingreport-2013_freeappmkt
R 13-bii appmarketingreport-2013_freeappmkt
 
Empirical analysis on iOS app Popularity
Empirical analysis on iOS app PopularityEmpirical analysis on iOS app Popularity
Empirical analysis on iOS app Popularity
 
Appurify Performance Automation Whitepaper FINAL
Appurify Performance Automation Whitepaper FINALAppurify Performance Automation Whitepaper FINAL
Appurify Performance Automation Whitepaper FINAL
 
ASO Barcamp with Traffic Optimiser - 12th March 2015
ASO Barcamp with Traffic Optimiser - 12th March 2015ASO Barcamp with Traffic Optimiser - 12th March 2015
ASO Barcamp with Traffic Optimiser - 12th March 2015
 
ASO Barcamp Talk 1: The Relationship Between Paid and Organic App Installs
ASO Barcamp Talk 1: The Relationship Between Paid and Organic App InstallsASO Barcamp Talk 1: The Relationship Between Paid and Organic App Installs
ASO Barcamp Talk 1: The Relationship Between Paid and Organic App Installs
 
Marketing plan
Marketing planMarketing plan
Marketing plan
 
Apperian 2015 Executive Enterprise Mobility Survey
Apperian 2015 Executive Enterprise Mobility SurveyApperian 2015 Executive Enterprise Mobility Survey
Apperian 2015 Executive Enterprise Mobility Survey
 
John Blue - Apps For Agriculture
John Blue - Apps For AgricultureJohn Blue - Apps For Agriculture
John Blue - Apps For Agriculture
 
The beginners-guide-to-mobile-advertising-analytics updated
The beginners-guide-to-mobile-advertising-analytics updatedThe beginners-guide-to-mobile-advertising-analytics updated
The beginners-guide-to-mobile-advertising-analytics updated
 
Fintech App Benchmark Report 2022
Fintech App Benchmark Report 2022Fintech App Benchmark Report 2022
Fintech App Benchmark Report 2022
 
Telemedicine App Development Cost: Budgeting Your Virtual Healthcare Solution
Telemedicine App Development Cost: Budgeting Your Virtual Healthcare SolutionTelemedicine App Development Cost: Budgeting Your Virtual Healthcare Solution
Telemedicine App Development Cost: Budgeting Your Virtual Healthcare Solution
 
Telemedicine App Development Cost: Budgeting Your Virtual Healthcare Solution
Telemedicine App Development Cost: Budgeting Your Virtual Healthcare SolutionTelemedicine App Development Cost: Budgeting Your Virtual Healthcare Solution
Telemedicine App Development Cost: Budgeting Your Virtual Healthcare Solution
 
2022 Dating Apps Report - EN.pdf
2022 Dating Apps Report - EN.pdf2022 Dating Apps Report - EN.pdf
2022 Dating Apps Report - EN.pdf
 

Recently uploaded

De-risk Your Digital Evolution - Hannah Grap
De-risk Your Digital Evolution - Hannah GrapDe-risk Your Digital Evolution - Hannah Grap
Offissa Dizayn - Otel, Kafe, Restoran Kataloqu_240603_011042.pdf
Offissa Dizayn - Otel, Kafe, Restoran Kataloqu_240603_011042.pdfOffissa Dizayn - Otel, Kafe, Restoran Kataloqu_240603_011042.pdf
Offissa Dizayn - Otel, Kafe, Restoran Kataloqu_240603_011042.pdf
offisadizayn
 
Marketing as a Primary Revenue Driver - Lee Levitt
Marketing as a Primary Revenue Driver - Lee LevittMarketing as a Primary Revenue Driver - Lee Levitt
The New Era Of SEO - How AI Has Changed SEO Forever - Danny Leibrandt
The New Era Of SEO - How AI Has Changed SEO Forever - Danny LeibrandtThe New Era Of SEO - How AI Has Changed SEO Forever - Danny Leibrandt
The New Era Of SEO - How AI Has Changed SEO Forever - Danny Leibrandt
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
Your Path to Profits - The Game-Changing Power of a Marketing - Daniel Bussius
Your Path to Profits - The Game-Changing Power of a Marketing - Daniel BussiusYour Path to Profits - The Game-Changing Power of a Marketing - Daniel Bussius
Your Path to Profits - The Game-Changing Power of a Marketing - Daniel Bussius
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
Adapt or Die - Jon Lakefish, Lakefish Group LLC
Adapt or Die - Jon Lakefish, Lakefish Group LLCAdapt or Die - Jon Lakefish, Lakefish Group LLC
SEO Master Class - Steve Wiideman, Wiideman Consulting Group
SEO Master Class - Steve Wiideman,  Wiideman Consulting GroupSEO Master Class - Steve Wiideman,  Wiideman Consulting Group
SEO Master Class - Steve Wiideman, Wiideman Consulting Group
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
Marketing Management Notes Philip Kotler
Marketing Management Notes Philip KotlerMarketing Management Notes Philip Kotler
Marketing Management Notes Philip Kotler
LaveenaShanker
 
Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...
Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...
Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...
Valters Lauzums
 
DMF Portfolio Piece Smart Goals - Artist Management.docx
DMF Portfolio Piece Smart Goals - Artist Management.docxDMF Portfolio Piece Smart Goals - Artist Management.docx
DMF Portfolio Piece Smart Goals - Artist Management.docx
TravisMalana
 
Monthly Social Media News Update May 2024
Monthly Social Media News Update May 2024Monthly Social Media News Update May 2024
Monthly Social Media News Update May 2024
Andy Lambert
 
Generative AI - Unleash Creative Opportunity - Peter Weltman
Generative AI - Unleash Creative Opportunity - Peter WeltmanGenerative AI - Unleash Creative Opportunity - Peter Weltman
Generative AI - Unleash Creative Opportunity - Peter Weltman
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
Turn Digital Reputation Threats into Offense Tactics - Daniel Lemin
Turn Digital Reputation Threats into Offense Tactics - Daniel LeminTurn Digital Reputation Threats into Offense Tactics - Daniel Lemin
Turn Digital Reputation Threats into Offense Tactics - Daniel Lemin
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
The_Canvas_of_Creative_Mastery_Newsletter_May_2024_Version
The_Canvas_of_Creative_Mastery_Newsletter_May_2024_VersionThe_Canvas_of_Creative_Mastery_Newsletter_May_2024_Version
The_Canvas_of_Creative_Mastery_Newsletter_May_2024_Version
AmirYakdi
 
AI-Powered Personalization: Principles, Use Cases, and Its Impact on CRO
AI-Powered Personalization: Principles, Use Cases, and Its Impact on CROAI-Powered Personalization: Principles, Use Cases, and Its Impact on CRO
AI-Powered Personalization: Principles, Use Cases, and Its Impact on CRO
VWO
 
FullSail: HOF - Presentation Phil Pallen
FullSail: HOF - Presentation Phil PallenFullSail: HOF - Presentation Phil Pallen
FullSail: HOF - Presentation Phil Pallen
travisomalana
 
BLOOM_May2024. Balmer Lawrie Online Monthly Bulletin
BLOOM_May2024. Balmer Lawrie Online Monthly BulletinBLOOM_May2024. Balmer Lawrie Online Monthly Bulletin
BLOOM_May2024. Balmer Lawrie Online Monthly Bulletin
BalmerLawrie
 
Search Engine Marketing - Competitor and Keyword research
Search Engine Marketing  - Competitor and Keyword researchSearch Engine Marketing  - Competitor and Keyword research
Search Engine Marketing - Competitor and Keyword research
ETMARK ACADEMY
 
10 Videos Any Business Can Make Right Now! - Shelly Nathan
10 Videos Any Business Can Make Right Now! - Shelly Nathan10 Videos Any Business Can Make Right Now! - Shelly Nathan
10 Videos Any Business Can Make Right Now! - Shelly Nathan
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
Digital Marketing Training In Bangalore
Digital Marketing Training In BangaloreDigital Marketing Training In Bangalore
Digital Marketing Training In Bangalore
syedasifsyed46
 

Recently uploaded (20)

De-risk Your Digital Evolution - Hannah Grap
De-risk Your Digital Evolution - Hannah GrapDe-risk Your Digital Evolution - Hannah Grap
De-risk Your Digital Evolution - Hannah Grap
 
Offissa Dizayn - Otel, Kafe, Restoran Kataloqu_240603_011042.pdf
Offissa Dizayn - Otel, Kafe, Restoran Kataloqu_240603_011042.pdfOffissa Dizayn - Otel, Kafe, Restoran Kataloqu_240603_011042.pdf
Offissa Dizayn - Otel, Kafe, Restoran Kataloqu_240603_011042.pdf
 
Marketing as a Primary Revenue Driver - Lee Levitt
Marketing as a Primary Revenue Driver - Lee LevittMarketing as a Primary Revenue Driver - Lee Levitt
Marketing as a Primary Revenue Driver - Lee Levitt
 
The New Era Of SEO - How AI Has Changed SEO Forever - Danny Leibrandt
The New Era Of SEO - How AI Has Changed SEO Forever - Danny LeibrandtThe New Era Of SEO - How AI Has Changed SEO Forever - Danny Leibrandt
The New Era Of SEO - How AI Has Changed SEO Forever - Danny Leibrandt
 
Your Path to Profits - The Game-Changing Power of a Marketing - Daniel Bussius
Your Path to Profits - The Game-Changing Power of a Marketing - Daniel BussiusYour Path to Profits - The Game-Changing Power of a Marketing - Daniel Bussius
Your Path to Profits - The Game-Changing Power of a Marketing - Daniel Bussius
 
Adapt or Die - Jon Lakefish, Lakefish Group LLC
Adapt or Die - Jon Lakefish, Lakefish Group LLCAdapt or Die - Jon Lakefish, Lakefish Group LLC
Adapt or Die - Jon Lakefish, Lakefish Group LLC
 
SEO Master Class - Steve Wiideman, Wiideman Consulting Group
SEO Master Class - Steve Wiideman,  Wiideman Consulting GroupSEO Master Class - Steve Wiideman,  Wiideman Consulting Group
SEO Master Class - Steve Wiideman, Wiideman Consulting Group
 
Marketing Management Notes Philip Kotler
Marketing Management Notes Philip KotlerMarketing Management Notes Philip Kotler
Marketing Management Notes Philip Kotler
 
Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...
Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...
Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...
 
DMF Portfolio Piece Smart Goals - Artist Management.docx
DMF Portfolio Piece Smart Goals - Artist Management.docxDMF Portfolio Piece Smart Goals - Artist Management.docx
DMF Portfolio Piece Smart Goals - Artist Management.docx
 
Monthly Social Media News Update May 2024
Monthly Social Media News Update May 2024Monthly Social Media News Update May 2024
Monthly Social Media News Update May 2024
 
Generative AI - Unleash Creative Opportunity - Peter Weltman
Generative AI - Unleash Creative Opportunity - Peter WeltmanGenerative AI - Unleash Creative Opportunity - Peter Weltman
Generative AI - Unleash Creative Opportunity - Peter Weltman
 
Turn Digital Reputation Threats into Offense Tactics - Daniel Lemin
Turn Digital Reputation Threats into Offense Tactics - Daniel LeminTurn Digital Reputation Threats into Offense Tactics - Daniel Lemin
Turn Digital Reputation Threats into Offense Tactics - Daniel Lemin
 
The_Canvas_of_Creative_Mastery_Newsletter_May_2024_Version
The_Canvas_of_Creative_Mastery_Newsletter_May_2024_VersionThe_Canvas_of_Creative_Mastery_Newsletter_May_2024_Version
The_Canvas_of_Creative_Mastery_Newsletter_May_2024_Version
 
AI-Powered Personalization: Principles, Use Cases, and Its Impact on CRO
AI-Powered Personalization: Principles, Use Cases, and Its Impact on CROAI-Powered Personalization: Principles, Use Cases, and Its Impact on CRO
AI-Powered Personalization: Principles, Use Cases, and Its Impact on CRO
 
FullSail: HOF - Presentation Phil Pallen
FullSail: HOF - Presentation Phil PallenFullSail: HOF - Presentation Phil Pallen
FullSail: HOF - Presentation Phil Pallen
 
BLOOM_May2024. Balmer Lawrie Online Monthly Bulletin
BLOOM_May2024. Balmer Lawrie Online Monthly BulletinBLOOM_May2024. Balmer Lawrie Online Monthly Bulletin
BLOOM_May2024. Balmer Lawrie Online Monthly Bulletin
 
Search Engine Marketing - Competitor and Keyword research
Search Engine Marketing  - Competitor and Keyword researchSearch Engine Marketing  - Competitor and Keyword research
Search Engine Marketing - Competitor and Keyword research
 
10 Videos Any Business Can Make Right Now! - Shelly Nathan
10 Videos Any Business Can Make Right Now! - Shelly Nathan10 Videos Any Business Can Make Right Now! - Shelly Nathan
10 Videos Any Business Can Make Right Now! - Shelly Nathan
 
Digital Marketing Training In Bangalore
Digital Marketing Training In BangaloreDigital Marketing Training In Bangalore
Digital Marketing Training In Bangalore
 

Understanding the Relationship Between Paid and Organic Installs Final

  • 1. Understanding the Relationship Between Paid and Organic Installs A STUDY ON HOW PAID DOWNLOADS IMPACT ORGANIC DOWNLOADS
  • 2. Understanding the Relationship Between Paid and Organic Installs PAGE 1 Understanding the Relationship Between Paid and Organic Installs Compared to online or digital marketing, mobile app marketing is still in its infancy. Although relatively young in years, it has matured and evolved at an astounding rate. This evolution has largely been driven by consumers spending more time on mobile devices and within apps, which has led to a significant shift of time, money, and other marketing resources towards these areas. As this transition continues, and organizations focus more on marketing their apps, it's becoming increasingly important for brands to clearly understand the implications of their ad spend - particularly as it pertains to the unique relationship between paid and organic marketing. The balance between paid and organic marketing that exists in the online world, seems to have been lost somewhere along the way in app marketing. In certain instances, a one-sided approach has worked and resulted in very successful apps. A STUDY ON HOW PAID DOWNLOADS IMPACT ORGANIC DOWNLOADS ABSTRACT The following white paper covers a study conducted by TUNE (parent company of MobileDevHQ and MobileAppTracking). The goal of the study was to answer the question: for every paid install, how many organic installs can an app expect to see? The results indicate that there is a significant positive correlation between paid and organic installs, and also show that the direct impact on organic installs varies depending on the category and operating system (OS) of the app. Read on to see how many organic installs an app can expect to see for each paid install, segmented by category and OS.
  • 3. Understanding the Relationship Between Paid and Organic Installs PAGE 2 Apps that rely heavily on paid marketing usually have an extremely accurate lifetime-value (LTV) measurement and marketers know exactly how much they can afford to spend on paid installs. It makes sense for them to tap a reliable and steady source of downloads through a publisher such as Twitter. Other apps, like Flappy Bird, have zero marketing spend and still manage to dominate the Top Charts purely through organic installs. It’s important to remember that these types of apps are the outliers and not the norm. For the other 99.9% of apps, having a strategic mix between paid and organic marketing efforts is vital to success because of the unique relationship between paid and organic installs. In the app world, running paid install campaigns boosts two (of the many) specific metrics that impact an app’s rank in the app store: total downloads and download velocity. With these paid campaigns, the boost to both metrics also increases the app’s ranking in the Top Charts and search, which leads to greater visibility and more organic downloads. Experienced app marketers are aware that, on some level, an increase in paid installs will lead to an increase in organic installs, which isn’t ground-breaking news. But is there any way to quantify an approximate multiplier for the impact of paid installs on organic installs? Or in other words, for every paid install, how many organic installs can an app expect to see? Methodology Using anonymized data from thousands of apps (data provided by TUNE), we were able to calculate a coefficient that significantly correlates paid and organic installs. We then ran a linear regression between the paid and organic installs. To validate the regression models, we checked residuals, adjusted R square, and p-values (an indicator of significance). Our requirement for the data to be sufficient was a correlation greater than 0.4 and a p-value less than 0.05. Paid Campaign More Downloads + Increased Download Velocity Increased Top Charts and Search Ranking Increase Visibility More Organic Downloads
  • 4. Understanding the Relationship Between Paid and Organic Installs PAGE 3 We also segmented the data by different categories and operating systems because these factors affect the results, which show the impact of paid installs on organic installs across all apps. In addition, we created a table that highlights the impact of paid installs on several distinct app categories. Generalized Results: Is the Effect Real? The first thing we wanted to test was the general impact of paid installs on organic installs across all categories and both app stores (Google Play and Apple). Essentially, we wanted to know if paid installs really do have a significant impact on organic installs. The Business Intelligence team at TUNE analyzed the relationship between paid and organic installs for thousands of advertisers (apps paying for installs) over the course of 245 days. They found an extremely strong relationship, and can say with 95% confidence that for every paid install an app receives, it can expect to also acquire an additional 1.5 organic installs. For all of the findings in this study, one important factor is that this is a trend, and scale matters. Many of the conclusions drawn in this white paper are from apps with millions of downloads (e.g. for every one million paid installs, advertisers can expect to see an additional 1.5 million organic installs). So although the trend can be applied to apps paying for downloads on a smaller scale, the confidence levels and p-values come from numbers on a larger scale. The following scatter plot shows the direct correlation between paid and organic installs. Paid Installs OrganicInstalls 1.3e+07 1.3e+07 9.0e+06 1,000,000 1,600,0001,400,0001,200,000
  • 5. Understanding the Relationship Between Paid and Organic Installs PAGE 4 These results were very encouraging, and allowed us to be confident in the underlying assumption that paid installs do have a strong positive correlation with organic installs. Although confirming the correlation can be useful, all app categories are not equal. We know that in terms of total number of apps and total downloads, some categories are more popular than others. For example, the following graph shows the distribution of iOS apps sorted by category. As you can see, the top five categories account for more than 50% of the total app population. So how strong or how varied is the correlation between paid and organic installs across different app categories and operating systems? The following section substantiates the coefficient across these factors. 22.5% 20% 17.5% 20.38%GAMES 10.36%EDUCATION 9.43%BUSINESS 8.01%LIFESTYLE 7.13%ENTERTAINMENT 5.21%UTILITIES 4.8%TRAVEL 4.31%BOOKS 3.24%MUSIC 2.87%PRODUCTIVITY 2.74%HEALTHANDFITNESS 2.73%SPORTS 2.57%REFERENCE 2.55%PHOTOANDVIDEO 2.43%NEWS 2.42%FINANCE 2.18%FOODANDDRINK 2.11%MEDICAL 1.9%SOCIALNETWORKING 1.27%NAVIGATION 15% 12.5% 10% 7.5% 5% 2.5% Source: Statista
  • 6. Understanding the Relationship Between Paid and Organic Installs PAGE 5 Category-Specific Results: The App Marketer’s Cheat Sheet Knowing that paid installs do, in fact, impact organic installs, we wanted to provide more insightful data than a simple generic 1.5x metric. We calculated new multipliers for separate categories and operating systems. In the following table, you can see how many organic installs an app can expect to see for each paid install, on average. We only present categories that have sufficient correlation and p-values (correlation > 0.4 and p-value < 0.05). Therefore, not every category is listed below. This information has huge implications and can be extremely useful for informing marketing decisions and strategy. For example, an Android Tools app could look at their multiplier of 0.3, and know that they will likely have to pay for three or four downloads in order to receive one additional organic download. Armed with this information, and working with the knowledge that organic users tend to be higher quality than paid users (based on intent, engagement, revenue, ratings, etc.), they might decide to pay a premium and work with a publisher who can deliver a high quality, targeted, paid user. *Predicted Organic Installs = Paid Installs x <Organic Multiplier> iOSANDROID CATEGORY Entertainment Games Lifestyle Social Networking Sports Utilities ORGANIC MULTIPLIER 0.9 5.4 5.2 4.8 1.5 3.9 CATEGORY Adventure Arcade Business Card Casino Casual Music & Audio Personalization Racing Shopping Strategy Tools Transportation Travel and Local Word ORGANIC MULTIPLIER 3.6 1.5 1.6 1.4 2.1 5.4 6.1 0.2 13.3 1.0 0.6 0.3 16.6 1.6 7.2
  • 7. Understanding the Relationship Between Paid and Organic Installs PAGE 6 On the other hand, a marketer for an iOS Game, working with the same knowledge about user quality, might decide they can risk using a less-reputable publisher, because they will receive five high-quality organic users for every one low-quality paid user. Does this mean Android Tools shouldn’t be doing paid marketing? Absolutely not. It just implies they should be more conscious about which publishers they are choosing. There are numerous other ways this information can be applied. But it’s important to remember that these are trends based on larger scale, and they are averages. If an Android Casino app runs a one-time burst campaign for 100 downloads, we do not guarantee that they will see an additional 210 organic downloads. Bringing it All Together The harmonious relationship between paid and organic marketing is something that is truly unique to apps. Because this relationship is so strong, app marketers cannot afford to only focus on one or the other. Having a strong balance between paid and organic efforts is key to thriving as an app marketer. We hope that this white paper has helped provide understanding around how app marketing is unique, why having a balanced strategy is important, and how the relationship between paid and organic installs works. We will continue to update data and add new categories to this table in the coming months. If you have any questions, feel free to reach out to research@mobiledevhq.com. For more insights on app marketing strategies and app store optimization, please visit www.mobiledevhq.com/articles.
  • 8. Understanding the Relationship Between Paid and Organic Installs PAGE 7 About MobileDevHQ by TUNE MobileDevHQ is the leading enterprise organic app marketing platform. We've been working with app marketers since 2009, and over and over again, we've met smart, hungry marketers looking for better ways to get downloads for their app. Tired of spending large sums of money on paid advertising (only to generate low LTV on those users), they're turning to organic channels such as App Store Optimization (app store SEO) for low-cost, high-quality installs with a high ROI. If you’re interested in learning more, feel free to sign up for a free account today, or reach out to sales@mobiledevhq.com for a free demo! About MobileAppTracking MobileAppTracking (MAT) is the industry standard for mobile app marketers to measure performance, and builds best-in-class tools to help marketers attribute their user acquisition, engagement, and retention campaigns to the appropriate channels and partners. MAT provides attribution for more than half of the top grossing apps in the iTunes and Google Play stores today. Customers include: Supercell, Spotify, Kayak, Uber, Square, EA, G5, Sephora, Hipmunk, LINE, Gilt, JackThreads, William Hill, Gumi, Nickelodean, Zoosk, eHarmony, and eBay Korea. To learn more about MAT, you can visit their website at www.MobileAppTracking.com