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Ads For Free iPhone Apps Have 10x The Conversion Rate of Paid Apps

admob_iphone2.gifAdMob has introduced a new functionality which lets advertisers of iPhone apps track the conversion rate of ads. Indications are that conversion rates for free apps are 10x that of apps that must be purchased.

iPhone Download Tracking
enables advertisers to track clicks on ads all the way through to eventual download of an application, letting them understand which ads worked best, where, when, etc. This information can be used to write better ads, calculate their return on ad spend, tune their App Info pages, and develop better pricing strategies.

“Advertisers have been clamoring to get more detailed information from the iPhone App Store and want to use it to maximize the value of their mobile ad campaigns,” said Jason Spero, Vice President and General Manager of North America for AdMob. “AdMob’s new iPhone Download Tracking gives advertisers the information they need to accurately assess marketing effectiveness, including the return from advertising spend.”

Testing began on iPhone Download Tracking in December with a limited number of applications. Preliminary data already shows some interesting trends.

  • Free applications have an average conversion rate of 10 percent, significantly higher than the average 1 percent conversion rate for paid applications.
  • Games generally have higher conversion rates than other categories of applications, up to a 100 percent improvement over non-game applications at similar price points.
  • The average acquisition cost for free applications is under $1.00.

“We’ve had great success with our Urbanspoon application on the iPhone, but it has been challenging to precisely track the success of our mobile marketing efforts,” said Ethan Lowry, Co-Founder of Urbanspoon. “AdMob’s new conversion tracking allows us to truly analyze our marketing spend and increase the return on our investment for every mobile ad campaign.”

Read the full press release.

19.01.2009    Tags: , ,
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