Resources < 1 min read  - November 30, 2017

Direct competitors' advertising in your app: is that a bad thing? Insights from SOOMLA

App publishers tend to frequently block direct competitors from advertising in their app solely based on a gut feeling. It seems logical not to show competitors’ ads to prevent traffic loss, doesn’t it?

App publishers tend to frequently block direct competitors from advertising in their app solely based on a gut feeling. It seems logical not to show competitors’ ads to prevent traffic loss, doesn’t it?

Surprisingly, direct competitors are not necessarily stealing your traffic away. SOOMLA, a market leader in mobile ad measurement, has released Ads and Churn Case Study report, an in-depth analysis of the effect of advertising direct competitors and their relation to eCPM and churn rate. The report illustrates the case of Lotum and their chart-topping casual word puzzle game called ‘4 Pics 1 Word’.

Utilizing a data-focused approach, SOOMLA has provided some insights on Lotum’s advertisers’ performance. These outcomes can be considered and applied to the whole industry:

1. Specific advertisers can churn 3 times more users than others. Not being able to see this data can have a drastic impact on retention.

2. Direct competitors were churning slightly more users — 11% more than the average while some advertisers were churning 200% more.

3. Advertising direct competitors resulted in 3X higher eCPM in some cases. The eCPM of Lotum’s direct competitors was between 90% (1.9x) and 216% (3.16x) higher compared to other games in France and Germany respectively.

4. Direct competitor blacklisting should be evaluated on a per country basis and not globally as it is normally done today.

Download the free report

? Also, you might be interested in our recent case study on one of the most popular shopping lists — Listonic: How a Utility App Doubled Revenue by Monetizing Unsold Ad Space.

Valerie Alfimova
Valerie Alfimova
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