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2nd confinement: reduction of CPM as a great opportunity for app install

2nd confinement: reduction of CPM as a great opportunity for app install

As Europe is slowly going through reconfining process, what impact for the CPMs ? should we expect, will it be the same trends as during the first confinement? 

To answer this question, we have analyzed the indicators of our campaigns in 6 European countries and got significant insights from them.

 

Declining CPMs as Black Friday approaches 

This graph shows the CPMs in the main European countries (Belgium, Germany, Spain, France, UK, Italy).

The conclusions are clear:

As Black Friday (27 November) approaches, the curve should move upwards in all the countries observed. It is usually a very competitive period with high CPMs indeed. Retailers are heavily investing in advertising because it is a key period for them and we are expecting a potential catch up in sales due to Covid on S1 (maybe to say due to the first wave of confinement back in March). However, a significant drop in CPM was observed between October 27th and November 2nd. It should be noted that the measures were reinforced in these countries between 26 and 31 October.

  • France: -13%, 
  • Belgium: -26%. 
  • Germany: -14%. 
  • Spain: -30%.
  • United Kingdom: -31%.
  • Italy: -33%.

A stable Frequency

Contrary to the previous confinement, the frequency (the number of times the ad is displayed to 1 user) remains relatively stable. No significant drop, compared to March, which suggests :

  • There has been no massive stop of campaigns (maybe just the apps are directly impacted by the confinement) so no increase in the audience available. 
  • The apps that were positively impacted did not wait to seize this opportunity as they did in March, when advertisers took the time to understand the stakes and the weight of this crisis. As a result, the shortfall in available advertising spaces was quickly recovered.

 

 

There is therefore a real opportunity for your acquisition campaigns. By proposing adapted creatives that will maximize click through rates, you should see a decrease in your CPI compared to the decrease in CPM. 

To be taken into account before the prices go up during the Holiday season and Black Friday!

Do not hesitate to contact us to help you seize these opportunities and scale your mobile business.

*Données Addict Mobile
Data taken from Addict Mobile