introduction · make your ad more relevanttousersearchqueries using apple’s creative sets . they...
TRANSCRIPT
Introduction There are approximately 2 million apps out there on the App Store. Visibility and
discoverability in this huge ocean of apps may be quite a challenge for app marketers.
Apple Search Ads has emerged as a tool to reach out to potential highly motivated
users at the exact moment they do the app searching. Apple claims remarkable
performance of its paid network: a 50% average conversion rate and a 65%
download rate that results from a search on the App Store.
But how does Apple Search Ads cope with user acquisition in practice? To get the real
picture, we’ve researched the accounts linked to our SearchAdsHQ platform. The
benchmarks below are based on the data obtained from July 2018 to February
2019:
In this edition, you’ll find the recent Tap-through and Conversion rates, as well as
average Cost per Tap and Cost per Acquisition by categories and storefronts. We’ve
also compared them with Apple Search Ads benchmarks of the previous year and
with the benchmarks from other ad networks.
If you want to know how we can help you streamline your Apple Search Ads
experience, get in touch with us at [email protected].
SearchAdsHQ for Apple Search Ads If you are interested in acquiring users right on the App Store, visit our blog for
in-depth materials on Apple Search Ads – handy tips, best practices, case
studies, insights and more.
Contents
Average Tap-through Rate (TTR) ........................................................................................... 4
Average Conversion Rate (CVR) ……………………………………………………………………. 9
How to boost your Apple Search Ads conversion rates?
Average Cost per Tap (CPT) …………………………………………………………………………... 13
Average Cost per Acquisition (CPA) ..................................................................................... 17
Apple Search Ads Benchmarks by Storefronts ……………………………………………... 20
Key Takeaways ……………………………………………………………………………………………….. 25
................................ 11
Average Tap-through Rate (TTR) Our team has made research to reveal that the current average TTR on Apple Search
Ads is about 6.06%. Compare: last year the average conversion rate from impressions
to taps hovered around 7.11% .
The decrease in the TTR average by approximately 1% suggests that the audience
becomes more immune to promoted apps. Inst ead of tapping on a blue-tinted ad, they
tend to focus on organic search results.
Is the TTR of 6.06% poor or healthy? To figure it out, let’s compare Apple Search Ads
conversion from impressions to taps with the same benchmarks for other mobile app
ad channels.
In the chart below we’ve compared Tap/Click-through rate averages for AppleSearch
Ads and the two most popular ad channels – Google Ads and Facebook . The data are
taken from the Paid Media Benchmark Report Q4 2018 made up AdStage.
Average Tap-through Rate (TTR) 4
It’s vital to make a quick point here: while Apple Search Ads is used exclusively to
promote apps, Google Ads and Facebook embrace a vast majority of campaign types,
including but not limited to app campaigns.
It turns out that Apple Search Ads is the most high-performing ad channel in terms
of conversion from impressions to taps (clicks). The runner up is Google Search, but it
lags well behind, which makes the Apple’s ad network worth trying.
Average Tap-through Rate (TTR) 5
Now that we know the average Apple Search Ads TTR, let’s dig into the details. Below
is the two charts showing the average TTR by categories in 2019 and 2018:
Average Tap-through Rate (TTR) 6
It seems obvious that in 2019 the highest average Tap-throug h rates are observed in
Health & Fitness, Productivity , and Utilities . All average TTRs in these three
categories are above 9%, which is around 3% greater than the average (6.06%).
Conversely, t he lowest TTR values are in Travel , Social Networking and Games . In
these categories the rate hardly reaches 5%.
What are the possible reasons for such a distribution?
Firstly, there’s a correlation between TTR and competition for generic search
terms .
Average Tap-through Rate (TTR) 7
When users enter discovery, rather than branded search terms on the App Store, it
gets harder for them to find what they really need. Users are matched to irrelevant
ads, which they don’t tap on, hence low TTR. There are categories where generic
discovery-centric search terms prevail, for example Games , Travel and Social
Networking , and to top it off, these categories are crowded with multiple apps.
According to Statista, Gaming is the most popular App Store category by share of
available apps. Multiple users competing for discovery-centric search terms brings
TTR of the category down – it’s 4.69% this year, which is below the previous year’s
rate of 6.60%.
Health & Fitness , on the contrary, is where apps cover highly specific purposes and
users enter more specific search terms. To discover what they need, they may play
around with ‘calorie counter’, ‘period tracker’, ‘ weight loss’, ‘ home workout ’, and a big
bunch of other search terms related to the industry. Specific keywords bring in highly
relevant users, who are likely to tap on your ad. High TTR comes as an outcome –
$10.07.
Another important thing that makes a difference for TTR is the usage of branded
keywords of your competitors .
The recent study by AppTweak shows that top 15 keywords in the US are branded ,
except for “games”. In turn, AppsFlyer has revealed that 66% of all searches on the
App Store include the name of an app or a publisher, meaning that people use search
to look for something specific, rather than for discovery.
When you use your competitors’ branded keywords in your Apple Search Ads
campaigns, your are more likely to get a low TTR.
Average Tap-through Rate (TTR) 8
Average Conversion Rate (CVR) In the context of Apple Search Ads, conversion happens when users download the
app upon tapping on an ad on the App Store. Apple claims an average conversion rate
of around 50%. Our research has revealed a very close value – 49.69% .
Next, we’ve compared Apple Search Ads with other popular ad networks. Please note
that the data for Facebook and Google Ads are overall average benchmarks:
Sources: SearchAdsHQ , WordStream , WordStream
Apple Search Ads is an outright winner. It offers more than 5 times as many
conversions than its closest rival – Facebook.
The thing is users who find themselves on the App Store are already extremely
motivated. The majority of them (70%) utilize the store to search for apps. When this
high-intent audience comes across a prime spot ad, there are good chances that your
Average Conversion Rate (CVR) 9
app be discovered.
Now, let’s have a closer look at the categories individually:
10 out of 16 categories under research maintain their Conversion rates above the
average. Lifestyle is the top performer, with the highest CVR across the categories –
66.24%. Music and Photo & Video have also shown a high Conversion rate – 64.37%
and 56.32% respectively.
Now, let’s focus on the bottom of the rating. Social Networking and Travel have
shown CVR under the average of 49.69%. These two categories had the lowest TTRs
as well, but it’s not a tendency.
Average Conversion Rate (CVR) 10
The truth is that high TTR doesn’t necessarily lead to a high conversion from taps to
downloads. For example, Lifestyle has shown the highest CVR while it’s TTR is not
the highest. Users may tap on your ad but not download your app. So, before you run
Apple Search Ads, it makes sense to optimize your product page with A/B testing .
How to boost your Apple Search Ads conversion rates?
Conversion rates can be optimized at any funnel stage, including pre- and post-install
events. For now, we’ve gathered a few tips for you to boost your Apple Search Ads
TTR as well as conversion from impressions to downloads and from taps to
downloads (CVR):
● Run A/B tests of your creatives. Apple Search Ads creates your ad based on the
metadata, video and imagery you’ve provided in your listing. It makes sense to
modify these app page elements to achieve much better results. This is exactly
what ZIMAD did by A/B testing screenshots. The renewed visuals have triggered
a 32% conversion increase.
● Make your ad more relevant to user search queries using Apple’s creative sets.
They allow to play around with 10 screenshots and 3 video previews, and align
them with particular keyword themes or audiences.
● Use segmentation. By turning off irrelevant segments you can focus on those
that convert, which takes your TTR, CVR and Direct Installs to a higher level.
● Mind localization. By modifying your app’s metadata for another market you
improve the relevance of your ads to the audience. For an inspiration, explore
Average Conversion Rate (CVR) 11
how ZiMAD achieved a 36% conversion rate by adjusting their screenshots for
the Japanese storefront.
● Make your app’s rating shine. Positive experience shared by users encourages
other users to give your app a try.
Average Conversion Rate (CVR) 12
Average Cost per Tap (CPT) Let’s move on with the cost metrics.
On the Apple’s ad platform, advertisers pay whenever users tap on their ads. This
pricing model suggests that Cost per Tap (CPT) is one of the most important Apple
Search metrics to keep in mind.
The recent average CPT across all the categories hovers around $0.95 . It has slightly
increased against last year’s average of $0.84 . Now let’s look at Cost per tap by
categories and compare the recent figures with those we had last year:
Average Cost per Tap (CPT) 13
Sports and Finance turned out the most expensive categories with the average CPTs
at $4.16 and $3.73 respectively. Interestingly, Cost per Tap for “Sports” has grown
more than four times against last year, which hints at the increased competition
inside the category.
As for Finance , the bid cost has grown from $2.81 up to $3.73. In “The State of
Mobile 2019” report , AppAnnie points at the “demand for both banking and fintech
apps” and the increased engagement with retail banking brands. It comes as no
surprise that the Finance category gets more competitive and expensive.
Average Cost per Tap (CPT) 14
The most popular App Store categories by share of available apps – Games and
Business – have both seen a boost in their CPTs, at $1.40 and $2.08 respectively.
Overall, is the average cost per tap of $0.95 high, low or reasonable? To figure it out,
it makes sense to compare Apple Search Ads with other networks. Please note that
the CPCs for Facebook and Google are not the costs of mobile user acquisition, but
the overall average values:
Sources: SearchAdsHQ , WordStream , WordStream
It turns out that you incur the highest cost when users click on your ad in Google
Search – $2.69. The network can be extremely expensive, charging up to $50 per one
click in such industries as law and insurance due to high LTV of the attracted
customers.
Apple Search Ads gives way to Google Display Network, but overall charges a
relatively low cost per one tap. The price of competitive keywords can be
Average Cost per Tap (CPT) 15
considerably higher in reality, but overall, remember that this is a premium
advertising channel which connects you to already interested users.
Average Cost per Tap (CPT) 16
Average Cost per Acquisition (CPA) CPA is the average cost of acquiring a new user via a specific ad channel. In Apple
Search Ads, by acquiring we mean tapping a “Get” button on an App Store product
page.
In 2019, the average Apple Search Ads CPA is approximately $1.90 , which is slightly
bigger than last year – $1.76 . The increased average demonstrates that the App
Store is becoming a more and more competitive marketplace.
As we did with the metrics above, let’s look at the categories and compare their CPAs
with those of the previous year:
Average Cost per Acquisition (CPA) 17
Just as last year, Finance and Sports are the most expensive categories. Note the
dramatic growth in their CPAs against 2018: the cost of one acquired customer in
Finance has almost doubled (increase from $5.91 to $10.33), while in Sports it has
grown four times (from $2.00 up to $8.14). The boosted CPAs point to a tougher
competition within the categories.
Publishers in “Music” have to pay less than the others – $0.26. It’s not the most
popular category (only 2.48% of all apps on the App Store), which, along with a
relatively low APRU, decreases competition and thus brings down the cost per
acquired user.
Average Cost per Acquisition (CPA) 18
Now let’s see how advertising platforms differ in terms of Cost per Acquisition. We’ve
gathered the average CPAs for Facebook , Twitter and Instagrams (2006-2018) and
measured them against Apple Search Ads:
Source: BusinessofApps
Twitter allows to acquire one user for $2.53 , which is the highest cost. Instagram Ads
(owned by Facebook) are a bit cheaper – $2.23 per each customer.
Facebook and Apple Search Ads are at $1.80 and $1.90 respectively. Although the
acquisition costs very close, the Apple’s ad network brings in more high LTV users in
comparison to Facebook. On the other hand, Facebook outperforms Apple Search
Ads in terms of the audience reach, being the biggest social network with over 1.4
billion monthly active users.
Average Cost per Acquisition (CPA) 19
Apple Search Ads Benchmarks by Storefronts The benchmarks you’ll find below have been generated for 13 storefronts . The data
underlying the report have been collected before the introduction of 46 new Apple Search
Ads Storefronts, which happened on 27 March, 2019 . As of today, there are 59 locations
where advertisers can run their campaigns on the Apple’s ad network.
Let’s start with the conversion from impressions to taps. With the average Apple Search Ads
TTR at around 6.06% , higher rates are observed for Germany , the US and Canada :
Overall, Tap-through rates are not that scattered, ranging from 4.99% in New Zealand to
6.52% in Germany.
Apple Search Ads Benchmarks by Storefronts 20
Low TTRs in Asian storefronts can be attributed to cultural and language peculiarities. In the
Japanese storefront, there’s a 5.44% TTR; in South Korea , it’s 5.72%. Asian markets are
hard to enter for western companies. Breaking into them means that they have to
considerably rethink app positioning towards peculiarities of a specific region.
However, we can see the same low impression-to-tap conversions for Italy , Spain and
France . It is likely that publishers used English keywords and poorly localized campaigns for
these storefronts.
Such a low TTR in the New Zealand storefront can be attributed to our data sample and a
relatively limited number of campaigns run for the storefront.
When in comes to Conversion from taps to downloads (CVR), the range is much wider:
With the average at 49.69%, CVR ranges between 33.22% (Japan) and 54.89% (the
UK).
Apple Search Ads Benchmarks by Storefronts 21
Compare the data with the TTR chart above: obviously, high TTR doesn’t always turn
into high CVR. For example, while Tap-through rate in the German storefront was
the highest of all, its Conversion rate is below the average. And conversely, New
Zealand was at the bottom of the TTR chart, but CVR in this storefront was quite
high.
Such a situation suggests that taps don’t necessarily lead to an app install. The
product page has to be A/B tested and optimized to encourage users to tap “Get”.
Overall, we can observe a higher conversion rate for English-speaking locations, while
the two Asian storefronts – Japan and South Korea , as well as Spain , France and
Italy lag behind. Again, it is likely to result from poor localization of metadata
elements, as well as the usage of keywords that haven’t been properly localized for a
particular storefront.
When it comes to Cost-per tap (CPT), the US storefront appeared to be the most
expensive and competitive one. It’s the only location which exceeded t he average
CPT of approximately $0.95. Australia and Canada are also competitive, with CPTs
at $0.88 and $0.83 respectively:
Apple Search Ads Benchmarks by Storefronts 22
Various storefronts differ in terms of average Costs per Acquisition. Look at the
breakdown of CPAs by locations:
Apple Search Ads Benchmarks by Storefronts 23
Let’s remind that the average CPA is around $1.90 . Again, the US considerably
exceeds the average ($2.13), making it the most expensive storefront.
Pay attention to the runner up. Japan is the second most expensive storefront after
the US, with CPA at $1.91. Low CVR leads to high CPA – this holds true for the
Japanese storefront. It’s likely that poor localization lowered the Conversion rate, as
well as Tap-through rate, which lead to a high cost per one user attracted.
Apple Search Ads Benchmarks by Storefronts 24
Key Takeaways
1. The average Apple Search Ads TTR – around 6.06% – is about 1% smaller than
last year, which points at the strengthened resistance of users to ads. In
comparison to Facebook and Google Ads, Apple's ad network boasts a higher
Tap-through rate.
2. Our research has revealed the average Сonversion rate of 49.69% , with the
highest rates in the Lifestyle (66.24%), Music (64.27%) and Photo & Video
(56.32%) categories. Such conversion rates result from highly motivated users
that come to the App Store to search for apps.
3. Think about app page optimization, because it turns out that high TTR doesn’t
necessarily mean high Conversion rate.
4. The average CPT across all the App Store categories is approximately $0.95 ,
which is greater than last year ($0.84). The most expensive categories are
Sports ($4.16) and Finance ($3.73).
5. The average Apple Search Ads CPA is around $1.90 , which exceeds last year’s
average of $1.76, probably due to the fact that the market gets more mature.
The most expensive categories in terms of Cost per Acquisition are Finance
($10.33) and Sports ($8.14).
6. Tap-through rates by storefronts are not scattered, ranging between 4.99%
in New Zealand and 6.52% in Germany.
7. Conversion rates by storefronts range between 33.22% (Japan) and 54.89%
(the UK).
Key Takeaways 25
8. Higher CVRs and TTRs are observed in English-speaking storefronts . The
two Asian locations – Japan and South Korea , as well as Spain , France and
Italy lag behind, which is probably caused by cultural and language
peculiarities and poor localization.
9. The US appeared to have the biggest CPT and CPA as competitive storefront.
10. Japan is the second most expensive storefront after the US, with a high CPA
at $1.91 resulting from low CVR and TTR. Western publishers have to rethink
its their brand positioning in Asian markets and localize campaigns accordingly.
Our team hopes you’ll find our Apple Search Ads benchmarks handy in running your
campaigns.
Please keep in mind that the benchmarks above represent aggregated data from the
accounts linked to our SearchAdsHQ platform . So, the values do not illustrate the entire
industry trends, but can serve as a reference to improve your user acquisition strategy.
Key Takeaways 26