App Advertising Cost Report by Country/Area in 2021 Q1

In addition to ASO optimization for an App, advertising outside is also very important. App advertising marketing has always been a popular category of Facebook advertising, but many app advertisers often do not understand the advertising cost benchmarks in the industry, and thus lose a lot of money.

According to Facebook 2021 Q1 financial statement, Facebook’s advertising revenue in Q1 was US$2.543.9 billion, an increase of 46% over last year. Facebook’s chief financial officer said this was due to a 30% year-on-year increase in the average price of each ad and a 12% increase in the number of ads placed. This means that the situation for advertisers to place ads on Facebook is becoming more and more difficult. How to spend less in many Facebook ads to get more exposure and registration are the issues that advertisers are concerned about.

In order to help App advertisers better formulate their advertising budgets, ADCostly compiled a report on the trend of different countries app advertising costs on Facebook in Q1 2021. This report includes common indicators CPC, CPM, CTR and CPI. Let's take a look.

Gaming Apps Advertising Cost

Gaming apps advertising costs tend to be relatively high, and there is a large gap in costs between different countries/areas. Sorted by CPM from high to low, CPM cost in the United States is the highest, with an average CPM of about $34.35. The second-ranked country/area is Australia, with an average CPM of $29.43. Japan's average CPM is $23.08, ranking third. It can be seen that there is a big difference in CPM. As the ranking goes further, the reduction in CPM costs becomes more obvious. France, ranked tenth, has an average CPM of only $11.34, which is ⅓ of the average CPM of the United States.

Gaming apps Facebook ads have little difference in average CPC cost in different countries/areas, but they are still divided into three major ranges. Japan’s average CPC is generally high, and CPC costs can reach $4.39. It is the first range. Canada, the United States, the United Kingdom, Australia, Germany, and Singapore have an average CPC of $2~$4, which is the second range. These countries are common targeting countries/areas for Facebook ads. Due to the large targeting audience, the cost is high. Countries/areas below $2, such as Hong Kong (China), France, and Taiwan (China), are often the choice of some low-budget advertisers. In these countries/areas, they can spend very little money to get enough clicks.

CPI refers to the cost of each application installation, which is very common for game advertising. But often because the process of installation is relatively cumbersome, the advertising cost of each application installation is generally high. The cost of CPI varies greatly in different countries/areas. The average CPI in Japan is about $11.16, and the second-ranked country/area is Hong Kong (China). The cost of CPI is $3.13 lower than Japan. The average CPI in the United Kingdom, Germany and the United States will be lower, only a little over $4. Therefore, if you want to place CPI ads, the United States, the United Kingdom and Germany would be good choices.

CTR is a common indicator for judging whether an ad campaign is effective. The average CTR represents the degree to which the ad is liked by users. The higher the CTR, the better the effect of the ad. Generally speaking, if the average CTR exceeds 1.5%, the campaign is successful, but there will also be some differences in different industries and countries. According to the analysis of CTR data by country/area, Brazil and India have become the countries/areas which with the highest CTR, and their average CTR exceeds 2.5%. At the same time, other countries/areas with an average CTR exceeding 2% include Mexico (2.3%), Germany (2.26%), the United States (2.15%), Spain (2.11%), France (2.1%), and Italy (2.02%). This all very good click-through rate.

No-Gaming Apps Advertising Cost

The average CPM of No-Gaming apps Facebook ads is generally lower than that of Gaming apps. In the same country, Gaming apps CPM is much higher than No-Gaming apps CPM. Taking the United States as an example, the CPM for Gaming apps is $34.35, while the CPM for No-Gaming apps is about $18.64. Similar countries/areas include Australia and Canada. The average CPM of other countries/areas has also dropped significantly. This cost benchmark is very helpful in the formulation of advertising budgets. If you do not understand this rule, it is very likely that you will lose a lot of money.

An interesting phenomenon is that, like CPM, the average CPC of No-Gaming apps Facebook ads is generally lower than that of Gaming apps. Also in Japan, the average CPC for Gaming apps Facebook ads is about $4.39, while the average CPC for No-Gaming apps Facebook ads is about $1.56. It is worth mentioning that the average CPC of No-Gaming apps Facebook ads is mostly no more than $1. Except for the top three countries/areas, the average CPC of other countries/areas is generally low.

The average CPI of No-Gaming apps Facebook ads will be much lower than the CPI of Gaming apps ads. The average CPI of Japanese game apps is $11.16, while the average CPI of its non-gaming apps is $3.47, which has changed from number one to number three in the country/area. The average CPI of non-gaming ads in each country/area will be low, generally not exceeding $3. This is an effective benchmark, and you should keep it in mind when advertising.

CTR shows a different trend in non-gaming apps advertising. The average CTR of non-gaming apps advertising will be higher. The average CTR of the top ten countries/areas all exceeds 2%. The average CTR in India even reached 4.96%, and the average CTR in Egypt exceeded 4%. There are about 10 countries/areas with 2%~3% CTR, which are all very good.

Final Thought

From the country/area data provided by ADCostly, it is easy to understand that the advertising costs of non-gaming apps are generally lower than the advertising costs of game apps, but the interesting thing is that the advertising costs of non-gaming apps are low but the CTR is much higher. Therefore, when advertising, advertisers often need to make the most appropriate advertising budget according to the industry. If you don't do a good job of research on related expenses, you may waste a lot of money. ADCostly will be your best helper of your advertising budget. At the same time, with a Facebook interest targeting tool you will create a better advertising campaign.