Over 30% of apps are uninstalled globally
More than 30% of apps are uninstalled on iOS and Android devices across the world, according to a report by AppsFlyer, with Android rates double those of its Apple rival, thanks to smaller storage space on the lower-cost smartphones. The report also found games were the most uninstalled apps, while Chinese users were 5% less likely to uninstall, suggesting greater engagement with users was required to ensure app retention. The paper predicted US app-install ad revenue would reach more than $7bn by 2020.

BI Intelligence

This story was delivered to BI Intelligence Apps and Platforms Briefing subscribers. To learn more and subscribe, please click here.

App users are quick to uninstall apps on their smartphones, according to a new report by AppsFlyer.

In fact, on average, over 30% of apps installed globally across both iOS and Android devices are uninstalled. This is concerning for developers and businesses alike as they face the increasingly uphill app engagement battle in an overcrowded app market.

Here are the highlights from the report:

Mobile-first markets are less likely to uninstall apps. For example, users in China, a mobile-first market, are 5% less likely to uninstall an app than a mobile-second market. Consumers in these markets spend a much larger chunk of their time on mobile devices, which likely means that they’re more engaged with a larger share of their apps.

Android app uninstall rates are double that of iOS. This is largely due to Android’s much bigger footprint in emerging markets where less expensive smartphones are more popular. These lower quality devices typically have less storage space, meaning that users need to be more willing to delete unnecessary apps to save space. On the other hand, in mature markets like the US, uninstall rates for both platforms are relatively low due to the popularity of higher-quality devices.

Gaming apps have among the highest uninstall rates across both iOS and Android.This is somewhat unsurprising considering that games comprise the largest share of apps for both platforms. The larger choice means users are less likely to have brand loyalty to a specific title.

The findings from the study reiterate the importance for developers, publishers, and marketers to ensure they're taking action to keep users engaged. This includes offering in-app events to enhance relevancy and reengaging with lapsed users through things like push-notifications and in-app messaging. Moreover, publishers need to ensure they're not alienating their users by using too many intrusive ads or bombarding them with push notifications.

Cutting through the noise of an overcrowded app market is critical for any app developer looking to build a viable user base. There are now well over 3 million apps available across the world’s five largest app stores. Delivering the right product to the right audience at the right time in this environment is imperative to the success of any app.

The challenge of marketing an app effectively has made app-install ads — an ad unit that directs users to download a mobile app — an essential tool for developers seeking to stand out in the Google Play and Apple app stores. This is why it's not surprising that more marketers are using paid channels to drive downloads than ever before. In fact, over 80% of respondents in a survey of the top 100 grossing mobile app developers noted they plan on increasing their spend on app-install ads in 2015.

BI Intelligence, Business Insider's premium research service, has compiled a detailed report on mobile app-install ads that looks at the revenues from app-install ads and how they're expected to grow over the next five years. It also looks at the performance of app-install ads and how these metrics are expected to change over time.

Furthermore, the report examines the top app-install ad products and pricing models offered by the leading advertising platforms, including Facebook, Twitter, Yahoo, and Google, as well as newer app-install formats from Instagram and Snapchat. Looking to the future, the report examines how companies are shifting their app-install ad spend to new formats, as well as the new tools they're using to improve optimization and ad effectiveness.

Here are some key takeaways from the report:

Mobile app-install ads — ad units that direct users to download a mobile app — are an essential tool for developers, and they account for a major share of mobile ad spend. We estimate 25% of total US mobile ad revenue was generated by app-install ads in 2015.

A combination of new developers entering the space and rising ad budgets will drive increased spending in years to come. US app-install ad revenue will grow to over $7 billion by year-end 2020, according to BI Intelligence estimates.

Mobile app install advertisers have traditionally invested heavily in display and interstitial ads, but are moving to mobile video and native install formats. 86% of developers currently use in-feed video app-install ads, and video ads are seen as the most effective app-install format.

As formats like video rise in popularity, older formats are losing their appeal for install campaigns. Static nonnative ads are widely used but are not seen as effective. Free app networks and offer walls have also fallen out of favor.

Ad platforms are now developing innovative new install formats to earn even more revenue from these lucrative ad units. New approaches, including deep linking and app streaming, are more contextualized and interactive than older ad formats.

In full, the report:

Forecasts app-install ad spending in the US through 2020.

Explores which app-install ad formats developers believe are most effective.

Discusses what the most popular platforms and ad networks are doing to attract ad spending.

Investigates new tools for marketing apps, including deep linking and app streaming.

To get your copy of this invaluable guide, choose one of these options:

START A MEMBERSHIP Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> Purchase the report and download it immediately from our research store. >> BUY THE REPORT

The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the fast-moving world of mobile app-install ads.