The state of creative app optimization
2024 edition
Key findings
2% of ads consume 68% of ad spend
Only 2% of app creative variations make up for 68% of budgets, while almost 90% of spending is directed towards just 10% of ads.
22% higher IPM for non-gaming ads with UGC on social media
UGC works best in the social media network native environment for both non-gaming (+22%) and gaming (+12%) apps; real-life footage outperforms animated ads by 15% for non-games.
+20% IPM for game ads without UGC on ad networks, DSPs
Gaming creatives had a 20% higher IPM when UGC was not used; animated ads generated a 26% higher IPM than creatives with real-life footage.
Hypercasual games hit 48 IPM on ad networks
Game genre cracked the code of capturing attention with creatives to drive downloads with a 47.6 installs per mille (IPM) on ad networks; RPG games, clocked in a modest 3.1 IPM.
6% day 30 retention for ads with combo of scene types
A 6% day 30 retention recorded for video gaming ads with a mix of UGC, gameplay, and animated plus real-life footage on ad networks.
30% better retention for longer video ads
Gaming video ads above 15 seconds had a 30% higher day 30 retention rate on social platforms
Introduction
AI-driven Mad Men: ad creatives in 2024
Welcome to the AI age of the ad creative. Recent years have seen the role of creatives in advertising evolve significantly, blending their traditional value from the “Mad Men” era with Generative AI. This fusion has transformed ideation, concept development, and design, making AI vital to every touchpoint in the process.
Yet, the realm of hyper-granular creative measurement and optimization represents another major development in the advances of AI. It can, for example, identify specific scenes and elements within thousands of creatives, automatically dissecting everything from user-generated content (UGC) to gameplay snippets, and animation. This granular level of analysis allows marketers to correlate specific creative components with performance metrics, unlocking insights into what combinations emerge as creative winners.
Another level of granularity is offered on the creative engagement level. Platforms like Meta, TikTok, and YouTube are also adapting by offering enriched engagement metrics. AppsFlyer’s own standard of Enriched Engagement Types (EET) also offers deeper insights into campaign engagement beyond just views and clicks, marking a pivotal shift in how campaigns are measured and attributed.
With privacy concerns narrowing down-funnel data availability, there’s now a greater focus on top-of-the-funnel creative measurement. Ad content now plays a vital role, acting as essential first-party data for the ad platforms themselves in a privacy-focused ad landscape.
Yet, the realm of hyper-granular creative measurement and optimization represents another major development in the advances of AI. It can, for example, identify specific scenes and elements within thousands of creatives, automatically dissecting everything from user-generated content (UGC) to gameplay snippets, and animation. This granular level of analysis allows marketers to correlate specific creative components with performance metrics, unlocking insights into what combinations emerge as creative winners.
Another level of granularity is offered on the creative engagement level. Platforms like Meta, TikTok, and YouTube are also adapting by offering enriched engagement metrics. AppsFlyer’s own standard of Enriched Engagement Types (EET) also offers deeper insights into campaign engagement beyond just views and clicks, marking a pivotal shift in how campaigns are measured and attributed.
With privacy concerns narrowing down-funnel data availability, there’s now a greater focus on top-of-the-funnel creative measurement. Ad content now plays a vital role, acting as essential first-party data for the ad platforms themselves in a privacy-focused ad landscape.
Data sample *
220k
creative variations analyzed by AppsFlyer’s AI **
2k
apps covering gaming and non-gaming categories
720M
non-organic installs driven by the analyzed creatives
* All results are based on fully anonymous and aggregated data. To ensure statistical validity, we follow strict volume thresholds and methodologies and only present data when these conditions are met
** Powered by AppsFlyer’s AI-powered creative optimization solution; a min. of $50 in ad spend per creative per month was applied
“[The impending recession] is a big challenge for all gaming companies, especially those with an IAP-based business model. Gaming companies will need to reduce cost even more, including marketing spend and hiring, improve their advertising and operations efficiency, and strictly control marketing budgets based on ROAS performance.”
Top trends
The 50-variant chase: hunting for creative winners
Let’s start with a striking number: Just 2% of creative variations consume 68% of ad budgets. What’s more, nearly 90% of spend goes to just 10% of creative variations, as media platforms focus heavily on the best-performing variants while ignoring underperformers. This underscores a sobering reality: scoring just one successful ad may require a whopping 50 ad variants.
This scenario frames a relentless numbers game, compelling marketers to mass-produce variations. The factors underpinning the success of top-performing ads are often unknown, and results vary across platforms. Given banner blindness and inevitable ad fatigue, an ever-expanding arsenal of creative concepts—at least 10 per campaign—are needed.
It’s a never-ending cycle. AI has become an invaluable ally in generating this content at scale, signaling a significant shift in creative strategies.
This is why the role of creative strategists has also become indispensable to manage the magnitude of such a massive production. Just a few years ago, it was virtually nonexistent; its inception over the last couple of years marks a significant paradigm shift.
This scenario frames a relentless numbers game, compelling marketers to mass-produce variations. The factors underpinning the success of top-performing ads are often unknown, and results vary across platforms. Given banner blindness and inevitable ad fatigue, an ever-expanding arsenal of creative concepts—at least 10 per campaign—are needed.
It’s a never-ending cycle. AI has become an invaluable ally in generating this content at scale, signaling a significant shift in creative strategies.
This is why the role of creative strategists has also become indispensable to manage the magnitude of such a massive production. Just a few years ago, it was virtually nonexistent; its inception over the last couple of years marks a significant paradigm shift.
Share of cost by % of creative variations
The IPM equation: engagement vs cost
A cornerstone metric, installs per mille (IPM) gauges ad creative performance, indicating ad effectiveness and influencing the cost per install (CPI). High IPM signifies strong performance, reflecting the strength of the creative and resulting in lower CPIs, whereas a lower IPM might suit high-revenue models that can tolerate higher CPIs.
Hypercasual games lead in IPM on ad networks with 47.6, surpassing the more specialized RPGs at 3.1 IPM. However, high IPMs can be misleading; hypercasuals often face monetization challenges post-install, necessitating the lower CPI. In contrast, niche genres like casino and strategy RPGs target a smaller, more profitable audience, accepting lower IPMs for higher revenue per install, thus affording higher CPIs.
IPM’s effectiveness varies across media, with ad networks typically offering better performance for games due to contextual relevance. Outside gaming, Generative AI apps attract attention with a 9 IPM, while photo and video apps also perform well due to their creative ad potential. Entertainment apps, however, tend to lag in IPM figures, facing a more challenging environment.
Hypercasual games lead in IPM on ad networks with 47.6, surpassing the more specialized RPGs at 3.1 IPM. However, high IPMs can be misleading; hypercasuals often face monetization challenges post-install, necessitating the lower CPI. In contrast, niche genres like casino and strategy RPGs target a smaller, more profitable audience, accepting lower IPMs for higher revenue per install, thus affording higher CPIs.
IPM’s effectiveness varies across media, with ad networks typically offering better performance for games due to contextual relevance. Outside gaming, Generative AI apps attract attention with a 9 IPM, while photo and video apps also perform well due to their creative ad potential. Entertainment apps, however, tend to lag in IPM figures, facing a more challenging environment.
IPM by category and media type
Few ads getting all the attention
The distribution of IPM by creative closely aligns with distribution of cost: Only 2% of gaming and non-gaming ads hit an IPM above 80. Conversely, half of all ads barely make a mark.
In other words, only a select few creatives can captivate audiences enough to command significant attention and spend, making IPM an indicator of an ad’s resonance. From a pure performance perspective, a higher IPM is often beneficial for advertisers, media, and users, optimizing both user engagement and ad spend.
We see a big contrast in IPM distribution between gaming and non-gaming. The winner takes all in non-gaming: There’s a sharp divide between the high performers and the rest. The distribution of IPM scores for games is smoother, as gaming marketers often produce and test a vast array of ad variations. This approach, emphasizing continuous iteration and testing, helps even out IPM performance across the board, which means more creative winners, underscoring the gaming industry’s expertise in refining ad effectiveness.
In other words, only a select few creatives can captivate audiences enough to command significant attention and spend, making IPM an indicator of an ad’s resonance. From a pure performance perspective, a higher IPM is often beneficial for advertisers, media, and users, optimizing both user engagement and ad spend.
We see a big contrast in IPM distribution between gaming and non-gaming. The winner takes all in non-gaming: There’s a sharp divide between the high performers and the rest. The distribution of IPM scores for games is smoother, as gaming marketers often produce and test a vast array of ad variations. This approach, emphasizing continuous iteration and testing, helps even out IPM performance across the board, which means more creative winners, underscoring the gaming industry’s expertise in refining ad effectiveness.
IPM distribution by % of creative variations
CPI: Balancing volume vs. value
Cost per install (CPI) stands out as a highly sensitive metric for marketers. A variety of factors, including geographic location, ad type, category, media platform and many others, can make a big difference. This level of complexity means marketers need to take a deep dive into super-granular data (see table below). In general, a lower CPI often correlates with a higher IPM.
But a low CPI isn’t always purely positive. For high monetization games that feature a higher average revenue per user (ARPU), adopting a higher CPI is not only acceptable, but strategic. Midcore games, for instance, will prioritize attracting a niche, highly engaged audience, emphasizing quality of user acquisition over volume. In contrast, hypercasual games, known for their wide appeal and ease of access, aim to attract a broad audience. These games typically see a lower CPI as they aim for volume, banking on the sheer number of installs to drive revenue.
For example, we can see in the chart below that midcore game marketers pay significant sums of money to acquire their users with videos ads on ad networks.
But a low CPI isn’t always purely positive. For high monetization games that feature a higher average revenue per user (ARPU), adopting a higher CPI is not only acceptable, but strategic. Midcore games, for instance, will prioritize attracting a niche, highly engaged audience, emphasizing quality of user acquisition over volume. In contrast, hypercasual games, known for their wide appeal and ease of access, aim to attract a broad audience. These games typically see a lower CPI as they aim for volume, banking on the sheer number of installs to drive revenue.
For example, we can see in the chart below that midcore game marketers pay significant sums of money to acquire their users with videos ads on ad networks.
CPI of video ads on ad networks (USD)
Gaming groupings combine the following genres:
Casual: Puzzle, Party, Action, Match, Simulation, Tabletop, Kids
Hypercasual: Hypercasual
Midcore: Shooting, Strategy, RPG
Sports & Racing: Sports, Racing
Casual: Puzzle, Party, Action, Match, Simulation, Tabletop, Kids
Hypercasual: Hypercasual
Midcore: Shooting, Strategy, RPG
Sports & Racing: Sports, Racing
Download table: CPI by country, category, platform, media type, and ad type *
Gaming groupings combine the following genres:
Casual: Puzzle, Party, Action, Match, Simulation, Tabletop, Kids
Hypercasual: Hypercasual
Midcore: Shooting, Strategy, RPG
Sports & Racing: Sports, Racing
Casual: Puzzle, Party, Action, Match, Simulation, Tabletop, Kids
Hypercasual: Hypercasual
Midcore: Shooting, Strategy, RPG
Sports & Racing: Sports, Racing
Scene success varies heavily by context
Ad creatives don’t perform similarly across platforms. Our AI-driven analysis of over 220,000 video ads across media environments highlights the varying effectiveness of “scenes” within a creative such as user-generated content (UGC), gameplay demos which apply to both gaming and non-gaming, animations, and real life scenes (see the examples under the charts).
When measuring IPM, video ads for games without UGC perform 20% better on average compared to ads with UGC (+25% on ad networks, and +15% in DSPs). Use of animation is also highly effective in games at 26% higher IPM compared to ads without animation (on average across media types).
UGC finds its niche on social networks, an environment where this content is native, with UGC ads outperforming non-UGC ads by 12% in gaming, and even more so in non-gaming at 22% higher IPM.
Use of real-life footage also yields better results in non-gaming, with a 15% higher IPM than animated ads.
No one scene type will excel uniformly across all platforms. Marketers must therefore align their content to each channel’s unique audience and context.
As AI reveals optimal strategies for different contexts, remember that each product is distinct, and success may stem from diverse approaches. Marketers often experiment with a range of scene types within media platforms at a broad scale to enhance reach and increase the likelihood of success among varied audiences.
When measuring IPM, video ads for games without UGC perform 20% better on average compared to ads with UGC (+25% on ad networks, and +15% in DSPs). Use of animation is also highly effective in games at 26% higher IPM compared to ads without animation (on average across media types).
UGC finds its niche on social networks, an environment where this content is native, with UGC ads outperforming non-UGC ads by 12% in gaming, and even more so in non-gaming at 22% higher IPM.
Use of real-life footage also yields better results in non-gaming, with a 15% higher IPM than animated ads.
No one scene type will excel uniformly across all platforms. Marketers must therefore align their content to each channel’s unique audience and context.
As AI reveals optimal strategies for different contexts, remember that each product is distinct, and success may stem from diverse approaches. Marketers often experiment with a range of scene types within media platforms at a broad scale to enhance reach and increase the likelihood of success among varied audiences.
Gaming and non-gaming IPM by media type: AI-powered scene breakdowns
Scene combinations reveal top performers
Because creatives often use a mixture of scene types, it’s interesting to see which combinations drive the best performance. In the context of ad networks, the data shows that game creatives should probably put less emphasis on UGC and more on animated characters within the same ad. The highest IPM is when gameplay is also added to the mix: a clear signal users want to see what the game/app is like before engaging into a download.
This makes sense as UGC doesn’t work as well in a non-social context, but when you are playing a game, you’re most likely to engage with an ad that shows gameplay and uses animated characters, which reflect virtual gaming environments. All other combos trail far behind.
On social platforms, gaming apps should experiment by combining animated and real life videos and put less emphasis on gameplay; adding UGC will deliver a slightly higher edge at the top of IPM performance. Interestingly, gaming and non-gaming apps have the same top two combos.
In DSP settings, the data suggests that game ads should lean towards animated characters over UGC. Showcasing gameplay didn’t match animation but came in a close second in terms of IPM.
Once again, a reminder that while AI unveils what works best in each context, keep in mind that each product is unique, and success can be found through various paths. Therefore, experimentation is vital to pinpoint the best combinations.
This makes sense as UGC doesn’t work as well in a non-social context, but when you are playing a game, you’re most likely to engage with an ad that shows gameplay and uses animated characters, which reflect virtual gaming environments. All other combos trail far behind.
On social platforms, gaming apps should experiment by combining animated and real life videos and put less emphasis on gameplay; adding UGC will deliver a slightly higher edge at the top of IPM performance. Interestingly, gaming and non-gaming apps have the same top two combos.
In DSP settings, the data suggests that game ads should lean towards animated characters over UGC. Showcasing gameplay didn’t match animation but came in a close second in terms of IPM.
Once again, a reminder that while AI unveils what works best in each context, keep in mind that each product is unique, and success can be found through various paths. Therefore, experimentation is vital to pinpoint the best combinations.
IPM by media type: Combined AI-powered scene breakdowns
Download table: Country-level IPM scene breakdown combos
“[The impending recession] is a big challenge for all gaming companies, especially those with an IAP-based business model. Gaming companies will need to reduce cost even more, including marketing spend and hiring, improve their advertising and operations efficiency, and strictly control marketing budgets based on ROAS performance.”
Ads that stick: The retention formula
Different channels and contexts affect retention for variants. While high IPM can attract users, it might also increase churn due to varying engagement levels over time. On ad networks, a mix of UGC, gameplay, and animated plus real life footage emerges as the top performer for Day 30 retention in games, reaching an impressive 6.01%. When isolating only UGC on ad networks for games, retention is higher when not using this type of creative.u003cbru003eu003cbru003eFor DSPs, blending UGC and real-life footage without gameplay optimizes post-install user retention for games. In fact, UGC as part of the mix improves retention rates across the board. Social media platforms drive increased retention in games with gameplay and the use of animated plus real-life footage, while ads for non-games benefit most by combining UGC and gameplay. u003cbru003eu003cbru003eBalancing IPM with user retention is crucial for maximizing ROAS. Although high IPM can reduce CPI, it may also lead to higher user churn. The challenge lies in finding the sweet spot that attracts users efficiently but fosters lasting engagement.u003cbru003eu003cbru003eThat’s why it’s vital to have full funnel analytics for the whole picture, and not stick to important but incomplete intermediary metrics like CTR, IPM or CPI.
Gaming and non-gaming day 30 retention rate by media type: AI-powered scene breakdowns
Day 30 retention rate by media type: Combined AI-powered scene breakdowns
Download table: Country-level day 30 retention scene breakdown combos
15+ second videos work better on social
Video length is another key metric to measure user engagement. We can see that gaming creatives above 15 seconds (long) perform well in social platforms with a 30% higher day 30 retention rate, and 9% higher in ad networks.
In non-gaming, social performs similarly in direction with a 12% higher retention from long videos, but in ad networks and DSPs the reverse is true: shorter videos under 15 seconds perform far better at no less than 50% and 80%, respectively.
In non-gaming, social performs similarly in direction with a 12% higher retention from long videos, but in ad networks and DSPs the reverse is true: shorter videos under 15 seconds perform far better at no less than 50% and 80%, respectively.
Day 30 retention rate by length of video ad: AI-powered breakdowns
Experts’ corner
Qu0026A with Dana Shaviv, UA Technical Lead – Social
How is your creative team set up and how is it connected with the UA team?
Our creative team, encompassing both designers and strategic planners, works hand-in-hand with the UA team to produce impactful content. This collaboration is fueled by a regular exchange of information.
The UA team provides data and insights to ensure the creative direction aligns with what resonates with users. We hold ongoing meetings and sync-ups to discuss successful and underperforming creatives.
This two-way street is crucial. The UA team receives updates on industry trends and potential creative directions from the creatives, while marketing strategists get informed of specific campaign successes and failures. Both sides contribute to the ideation process, analyzing performance gaps and brainstorming improvement strategies.
This includes iterating on existing creatives, scheduling brainstorming sessions, and prioritizing tasks to achieve both quick wins and more innovative, long-term projects.
The UA team provides data and insights to ensure the creative direction aligns with what resonates with users. We hold ongoing meetings and sync-ups to discuss successful and underperforming creatives.
This two-way street is crucial. The UA team receives updates on industry trends and potential creative directions from the creatives, while marketing strategists get informed of specific campaign successes and failures. Both sides contribute to the ideation process, analyzing performance gaps and brainstorming improvement strategies.
This includes iterating on existing creatives, scheduling brainstorming sessions, and prioritizing tasks to achieve both quick wins and more innovative, long-term projects.
While AI brings lots of value, what are the “bad” things to watch out for when using AI in the creative process?
Gen-AI is a valuable addition to creative production, facilitating quicker turnaround times, but factors such as loss of creativity and absence of human touch should be considered throughout the process.
While AI can streamline content creation, its overuse risks homogenization,
potentially stifling the unique voices, perspectives, and innovative ideas that human creators bring.
AI’s undeniable boost to productivity is a powerful tool, but it shouldn’t come at the expense of creativity. Human intuition remains irreplaceable, and it’s that spark that fuels content that truly resonates with our consumers who crave originality.
While AI can streamline content creation, its overuse risks homogenization,
potentially stifling the unique voices, perspectives, and innovative ideas that human creators bring.
AI’s undeniable boost to productivity is a powerful tool, but it shouldn’t come at the expense of creativity. Human intuition remains irreplaceable, and it’s that spark that fuels content that truly resonates with our consumers who crave originality.
Qu0026A with Full name, Current position title
Which metrics do you look at and at what level of granularity do you measure and optimize?
My approach to creative optimization starts with a deep dive into data, uncovering insights and opportunities. I analyze various metrics tailored to specific goals. Initially, I focus on upper-funnel metrics to identify high-performing creatives. This means prioritizing creatives that drive desired
conversions, like app installs. By tracking impressions, views, clicks, installs, and play rates throughout the funnel, I can see which creatives capture attention and motivate users to act.
Once I’ve established user-engaging concepts, I shift my focus to optimizing deeper funnel metrics. My aim here is to enhance user exploration of our games’ features and ensure an optimal gaming experience. This involves monitoring additional metrics that gauge user engagement and satisfaction.
Throughout this process, I maintain a keen eye on revenue and retention KPIs. This ensures that my optimization efforts attract a relevant and engaged audience that generates long-term value.
conversions, like app installs. By tracking impressions, views, clicks, installs, and play rates throughout the funnel, I can see which creatives capture attention and motivate users to act.
Once I’ve established user-engaging concepts, I shift my focus to optimizing deeper funnel metrics. My aim here is to enhance user exploration of our games’ features and ensure an optimal gaming experience. This involves monitoring additional metrics that gauge user engagement and satisfaction.
Throughout this process, I maintain a keen eye on revenue and retention KPIs. This ensures that my optimization efforts attract a relevant and engaged audience that generates long-term value.
Which ad formats (video, banner, playable, etc.) do you expect will work well in 2024?
Video remains a dominant force for social user acquisition. Engaging and thumb-stopping videos will likely stay at the forefront due to their proven ability to drive results.
However, the ever-changing landscape of platform dynamics and emerging trends demands a flexible approach. It is imperative to be agile and have an evolving strategy.
To stay ahead, we’ll prioritize flexibility and explore new ad formats. Diversification is key and experimenting with different formats allows us to adapt and optimize campaigns for maximum impact.
However, the ever-changing landscape of platform dynamics and emerging trends demands a flexible approach. It is imperative to be agile and have an evolving strategy.
To stay ahead, we’ll prioritize flexibility and explore new ad formats. Diversification is key and experimenting with different formats allows us to adapt and optimize campaigns for maximum impact.
Qu0026amp;A with Full name, Current position title
Any other tips/strategies you recommend as far as creative goes?
I believe that strong creative assets are the foundation of successful social media campaigns. They grab attention and drive engagement. But great ideas need a plan. Integrated content creation with social media strategy, considering trends and brand originality.
This approach will also foster a symbiotic relationship and more collaboration between marketing campaign managers and creative teams. This two-way street allows for brainstorming, feedback, and ultimately, more impactful campaigns.
This approach will also foster a symbiotic relationship and more collaboration between marketing campaign managers and creative teams. This two-way street allows for brainstorming, feedback, and ultimately, more impactful campaigns.
Key takeaways
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