New market research results from the Video Advertising Bureau (VAB) reveals a strong link between successful mobile apps and TV ads for those apps. VAB found that there was a positive correlation between TV ad spending and mobile app traffic for 77 percent of the 60 mobile apps studied.
It appears this is no secret. As a group, mobile app companies spend nearly $1 billion per year to advertise on TV, according to VAB’s report, ¨What’s App’ning.¨ It’s the third in a series; two previous studies found strong positive correlations between TV advertising and Internet traffic for pure-play Internet companies and ¨call-to-action¨ brands.
Successful Mobile Apps
VAB gathered market data from comScore, Nielsen and Think Gaming to find out whether or not there was a link between mobile app traffic and TV ad spending among 60 mobile apps spanning 10 industry categories: games, ecommerce/retail, media, sports, tech/telco, financial, restaurants, travel, music and education.
On average for the group, the number of unique visitors to mobile apps rose 25 percent when associated TV ads ran and dropped 20 percent when they weren’t running, VAB highlights in a press release. For three mobile apps specifically, VAB found:
- Pet Rescue Saga saw a 40% difference, averaging 2.5 million unique visitors when spending $1.1 million/month, but falling to 1.8 million unique visitors the months when ads didn’t run.
- Game of War, which typically spends $9 million/month on TV, saw its unique visitors fall 25%, from 2.5 million to 2 million, when TV ads didn’t run.
- Clash of Clans, which averages $4.5 million/month in TV ads, lost 17% of unique visitors when off-air, with the total falling from 11.9 million to 10.2 million visitors.
- VAB points out that the estimated monthly revenues generated by these mobile app brands far exceeds what they spend to advertise on TV – it is significant, however.
According to the report, Clash of Clans pulls in an average of $36 million per month in sales revenue and spends an average $4.5 million per month on TV advertising. Game of War’s estimated monthly average sales revenue totals $24.6 million as compared to a monthly average $9.1 million TV advertising spend.
Some successful mobile apps emerged very quickly after beginning to run TV advertising, according to the VAB research. More than 2.3 million unique visitors were visiting Blossom Blast’s website within a month of its developer advertising on TV. Similarly, Mobile Strike attracted 1.9 million unique website visitors, as well as estimated monthly revenue of $12 million, within a month of starting to advertise on TV.
“TV is the light switch for digital traffic,” VAB president and CEO Sean Cunningham commented. “Time and again, across categories, we find that digital products and platforms rely on TV advertising to deliver customers in real scale. And the return in sales is always exponentially greater than the ad spending.”