Following marketers’ sense of unease with Apple’s IDFA privacy changes, apparently there is a silver lining shining through. A recent report by the mobile app marketing platform Liftoff suggests that due to Apple’s decision to make a huge change to settings on users’ iPhones in the name of privacy, 2021 is going to be the year that Android has been waiting for.
Liftoff’s annual report is based on almost 400 billion impressions on 6.2 billion clicks, 275 million installs, and 7.7 million first-time events that took place inside 1,800 apps between January – October 2020. Want to know more? Check out our selection of key takeaways:
- Android stands out as the most moderately-priced platform to acquire new users. Android ad creatives cost 67% less than iOS, making Android the operating system of choice for bargain installs at volume.
- Available to almost anyone and everyone: While Apple is the ultimate king when it comes to earning the highest app store revenues, Android dominates in terms of download numbers. As the majority of Apple customers belong to rich countries like the US, advertisers are bound to pay more to attract Apple’s customers and less for the ones who are going to see the ads on Android devices.
- Driving conversions on iOS can be up to 3x more expensive than on Android. According to Liftoff, that is the case if we compare the customer acquisition costs of Android with Apple. This massive difference can also be seen in CPAs (cost per action) of 2020 as well since the charges for traditional banner ads on iOS were $36.77 (exactly 3.5 times more than Android’s $10.28) – the largest difference observed around any ad format.
- One-third of mobile marketers plan on spending more on Android in 2021 as interstitial ads and banner ads outperform on Android devices with 52% and 22% respectively.
- Facebook doesn’t like that. According to projections, Facebook will have to bear a 7% hit to revenues following Apple’s IDFA changes. Perhaps that is the reason why Facebook has been quite vocal at opposing them stating this will only make things difficult for smaller advertisers, publishers, and developers on the platform.
- Competition for attention: Due to lockdowns globally, more people were watching videos in 2020. In turn, advertisers started to compete for the attention of their targeted users and gave birth to a bidding war with limited inventory. That, along with the exposure fatigue, explains why video ads faced a drop, with conversion rates being 28% lower in 2020 than the previous year (3.8% compared to 5.3% in 2019).
Based on the above, it looks like Android is becoming the natural choice for mobile marketers. Need more industry insights to help you empower your campaigns? Keep following our Marketing Bites and get ready to play your biggest game on mobile.