This story was delivered to BI Intelligence Apps and Platforms Briefingsubscribers. To learn more and subscribe, please click here. US Antitrust authorities have written to the Federal Trade Commission (FTC) with the intent to start a conversation around regulating the app ecosystem. A letter addressed to the FTC has called on the committee to investigate concerns over anti-competitive activity in the app marketplace.The letter points to two trends that have emerged in the app ecosystem:The global app marketplace is controlled by the Google/Apple duopoly.The iOS App Store and the Google Play store are by far the largest and most important channels through which app publishers bring their offerings to market. They've established a duopoly with a combined inventory of more than 4 million apps.Furthermore, the stores have a combined market share of about 97% globally. Most publishers will need to contend with the ins and outs of both, making it incredibly difficult for smaller vendors to have any impact.The app ecosystem is weighted toward bigger players. The top performing apps are also the mainstays of the Top App Categories. This gives them better visibility within the App Store, which in turn, makes it more likely that users will download them. In the US, for example, 94% of all iOS App Store revenue went to the top 1% of publishers, according to Sensor Tower. This revenue can be used to pay for advertising, which also helps raise awareness of the app.These two trends could lead to a number of negative implications for consumers and developers, according to the committee. These include stifling innovation, decreasing the number of viable channels for distribution, and diminishing the number of cost-effective choices for consumers.The conflict brings attention to the immense power app vendors wield over publishers. For example, Spotifyaccused Apple of blocking its app update for iPhones in order to boost Apple Music earlier this year. Apple responded by noting that the App Store blocked the update due to Spotifys attempt to circumvent the 30% revenue cut that developers fork over to the tech giant. This issue has yet to be resolved, but Spotify's claim puts a spotlight on the control Apple has over publishers' ability to conduct business. Still, both Apple and Google are working hard to appear more developer friendly. For instance, both companies recently announced changes to how they divvy up subscription revenue, increasing the cut that publishers receive to 85%of subscription fees, up from 70%.Cutting through the noise of an overcrowded app market is critical for any app developer looking to build a viable user base. There are now well over 3 million apps available across the worlds five largest app stores. Delivering the right product to the right audience at the right time in this environment is imperative to the success of any app.The challenge of marketing an app effectively has made app-install adsan ad unit that directs users to download a mobile appan essential tool for developers seeking to stand out in the Google Play and Apple app stores. This is why it's not surprising that more marketers are using paid channels to drive downloads than ever before. In fact, over 80% of respondents in a survey of the top 100 grossing mobile app developers noted they plan on increasing their spend on app-install ads in 2015.BI Intelligence, Business Insider's premium research service, has compiled a detailed report on mobile app-install ads thatlooks at the revenues from app-install ads and how they're expected to grow over the next five years. Italso looks at the performance of app-install ads and how these metrics are expected to change over time.Furthermore, the report examines the top app-install ad products and pricing models offered by the leading advertising platforms, including Facebook, Twitter, Yahoo, and Google, as well as newer app-install formats from Instagram and Snapchat. Looking to the future, the reportexamines how companies are shifting their app-install ad spend to new formats, as well as the new tools they're using to improve optimization and ad effectiveness.Here are some key takeawaysfrom the report:Mobile app-install adsad units that direct users to download a mobile appare an essential tool for developers, and they account for a major share of mobile ad spend. We estimate 25% of total US mobile ad revenue was generated by app-install ads in 2015.A combination of new developers entering the space and rising ad budgets will drive increased spending in years to come. US app-install ad revenue will grow to over $7 billion by year-end 2020, according to BI Intelligence estimates.Mobile app install advertisers have traditionally invested heavily in display and interstitial ads, but are moving to mobile video and native install formats. 86% of developers currently use in-feed video app-install ads, and video ads are seen as the most effective app-install format.As formats like video rise in popularity, older formats are losing their appeal for install campaigns. Static nonnative ads are widely used but are not seen as effective. Free app networks and offer walls have also fallen out of favor.Ad platforms are now developing innovative new install formats to earn even more revenue from these lucrative ad units. New approaches, including deep linking and app streaming, are more contextualized and interactive than older ad formats.In full, the report:Forecasts app-install ad spending in the US through 2020.Explores which app-install ad formats developers believe are most effective.Discusses what the most popular platforms and ad networks are doing to attract ad spending.Investigates new tools for marketing apps, including deep linking and app streaming.To get your copy of this invaluable guide, choose one of these options:Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIPPurchase the report and download it immediately from our research store. >> BUY THE REPORTThe choice is yours. But however you decide to acquire this report, youve given yourself a powerful advantage in your understanding of the fast-moving world of mobile app-install ads.Join the conversation about this story
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