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.
Key findings
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 u0022Mad Menu0022 era with Generative AI. This fusion has transformed ideation, concept development, and design, making AI vital to every touchpoint in the process.u003cbru003eu003cbru003eYet, the realm of hyper-granular creative measurement and optimization represents another major development in the advances of AI. It can, for example, u003ca href=u0022https://www.appsflyer.com/product-news/creative-optimization/creative-optimization-solution/u0022u003eidentify specific scenes and elementsu003c/au003e 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 u003ca href=u0022https://www.appsflyer.com/blog/tips-strategy/find-creative-winners-ai/u0022u003ecreative winnersu003c/au003e.u003cbru003eu003cbru003eAnother 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 u003ca href=u0022https://www.appsflyer.com/blog/measurement-analytics/enriched-engagement-types/u0022u003eEnriched Engagement Typesu003c/au003e (EET) also offers deeper insights into campaign engagement beyond just views and clicks, marking a pivotal shift in how campaigns are measured and attributed.u003cbru003eu003cbru003eWith 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.
* 所有结论均基于匿名汇总数据得出。为保证统计结果的有效性，我们遵循严格的数据采样基准与统计方法论，仅对符合要求的数据进行统计
** 基于AppsFlyer AI 加持的素材优化解决方案；统计样本为每月支出在 50 美元以上的广告。
“深入人心的广告素材是成功的基石。这样的广告能够抓住受众的注意力，并能够提高用户参与度。但完美的创意需要有力的执行。将内容创作与策略结合，体现热点和品牌的独创性，这样的素材才能脱颖而出。这样的方法有助于推动营销经理和素材团队建立密切而高效的合作关系。”
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.u003cbru003eu003cbru003eThis 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.u003cbru003eu003cbru003eThis 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
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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.u003cbru003eu003cbru003eHypercasual 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.u003cbru003eu003cbru003eIPM’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
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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.u003cbru003eu003cbru003eIn 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.u003cbru003eu003cbru003eWe 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
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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.u003cbru003eu003cbru003eBut 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.u003cbru003eu003cbru003eFor 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)
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Gaming groupings combine the following genres: Casual: Puzzle, Party, Action, Match, Simulation, Tabletop, Kids I Hypercasual: Hypercasual I Casino: Casino I Midcore: Shooting, Strategy, RPG I Sports u0026amp; Racing: Sports, Racing
Download table: CPI by country, category, platform, media type, and ad type *
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Gaming groupings combine the following genres: Casual: Puzzle, Party, Action, Match, Simulation, Tabletop, Kids I Hypercasual: Hypercasual I Casino: Casino I Midcore: Shooting, Strategy, RPG I Sports u0026amp; 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 u0022scenesu0022 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). u003cbru003eu003cbru003eWhen 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). u003cbru003eu003cbru003eUGC 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.u003cbru003eu003cbru003eNo one scene type will excel uniformly across all platforms. Marketers must therefore align their content to each channel’s unique audience and context. u003cbru003eu003cbru003eAs 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
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“自动化正在彻底改变用户生成内容（UGC），现在普通用户都可以利用 AI 这一创新型工具讲述自己的故事。创作者对自动化配音工具越来越熟悉，这将为流行文化的新潮流打下基础。”
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.u003cbru003eu003cbru003eThis 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.u003cbru003eu003cbru003eOn 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. u003cbru003eu003cbru003eIn 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. u003cbru003eu003cbru003eOnce 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
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V
Download table: Country-level IPM scene breakdown combos
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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%. u003cbru003eu003cbru003eWhen isolating only UGC on ad networks for games, retention is higher when not using this type of creative. For DSPs, blending UGC and real-life footage without gameplay optimizes post-install user retention for games. u003cbru003eu003cbru003eIn 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. That’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
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Day 30 retention rate by media type: Combined AI-powered scene breakdowns
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Download table: Country-level day 30 retention scene breakdown combos
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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.u003cbru003eu003cbru003eIn 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
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Experts’ corner
Qu0026amp;A with Liraz Dvora, Head of Creative, Global Gaming
What are the top 3 trends you think will dominate the creative process in 2024?
u003cstrongu003eAdvancing interactive engagement: u003c/strongu003e2024 is shaping up to be a year of dynamic interaction with users. Shoppable videos transform browsing into buying with a click, while live streams engage audiences in real-time, setting new participation standards. With AI, content customizes to viewer preferences, deepening the connection between content and viewer through authenticity and personalization.u003cbru003eu003cbru003eu003cstrongu003eCreators at the forefront:u003c/strongu003e This year remains centered on the power of authenticity and the incredible variety emerging from creators across the globe. With the creator economy booming (we’re talking potentially hitting $480 billion by 2027, according tou003ca href=u0022https://www.goldmansachs.com/intelligence/pages/the-creator-economy-could-approach-half-a-trillion-dollars-by-2027.htmlu0022u003e Goldman Sachsu003c/au003e). Anyone with a story can find their audience. Accessible tools enable anyone to produce professional-quality content. The influence now extends beyond follower counts, with micro-influencers impacting communities through genuine connections.u003cbru003eu003cbru003eu003cstrongu003eAll types of automation tools: u003c/strongu003eStreamlining tasks and fueling idea generation. Integration of automation tools is reshaping creative workflows.u003ca href=u0022https://www.mckinsey.com/capabilities/quantumblack/our-insights/the-state-of-ai-in-2023-generative-AIs-breakout-yearu0022u003e McKinseyu003c/au003e highlights that a third of companies now embed such tools in their processes, underscoring its role as a pivotal creative resource.
In which areas of the creative process will automation be most impactful this year?
Automation could significantly transform tasks that are traditionally time-consuming and manually intensive. For instance, creative optimization will be elevated to a new level. u003cbru003eu003cbru003eWhen streamlined, automation can analyze thousands of creative examples—far beyond human capacity. This enables the optimization of content across various channels, tailored to key performance metrics. u003cbru003eu003cbru003eAdditionally, automation is revolutionizing user-generated content (UGC) by empowering everyday users with innovative storytelling tools. Creators are increasingly adopting automated voiceover tools, setting the stage for a new wave in pop culture.
What should marketers watch out for when using automation in the creative process?
While AI boosts efficiency and innovation in creativity, there are a few u0022watch outu0022 areas: While automation improves efficiency in the creative process, it also comes with challenges that we need to manage carefully:u003cbru003eu003cbru003eu003cstrongu003eLoss of human touchu003c/strongu003e: Sometimes, content created with too much automation might lack emotional depth. It’s important to keep a human element in our work to ensure it feels genuine and culturally appropriate.u003cbru003eu003cbru003eu003cstrongu003eOver-reliance on automationu003c/strongu003e: Depending too much on automation can limit our own creative ideas, leading to content that is too similar and lacks innovation. While automation is a useful tool, it should support, not replace, our creativity.u003cbru003eu003cbru003eIn summary, using automation effectively in creativity means finding the right balance between its benefits and maintaining our own creative and cultural insights to create truly engaging content.u003cbru003e
What do you think makes for a creative winner in a “short vertical video” ad format?
To excel in the u0022short vertical videou0022 ad format, capturing the viewer’s full attention within the first two seconds is crucial. Achieving this requires crafting a compelling hook that combines both visual and audio elements effectively. Since users tend to quickly skip through content, it’s essential to immediately engage them.u003cbru003eu003cbru003eThough a winning u0022short vertical videou0022 ad not only grabs attention but also delivers performance which means balancing upper funnel and lower funnel metrics. A winner creative will balance upper funnel u0026amp; lower funnel metrics by utilizing the platform advantages and language while using the creative or game elements that drive the most impact.u003cbru003eu003cbru003eLooking only at the upper funnel metrics will tell us if creatives are appealing or not but looking at lower funnel metrics will tell us if the creative attracts the relevant audienceu003cbru003eu003cbru003eFor example, in RPGs, leveling up your character is a big deal. It’s what keeps players hooked. So on ad networks, the focus of the creative content is showcasing actual gameplay. Meanwhile, on short video platforms, the goal is to spark excitement by showcasing character upgrades and progress through creators. They share their reactions to game highlights, making ads more genuine and appealing. Featuring standout characters or cool gear helps draw in engaged gamers likely to stick around.u003cbru003e
Trends come and go very fast on TikTok. How do you recommend detecting the latest trends and riding them early?
To effectively detect and leverage the latest trends on TikTok, active engagement on the platform is irreplaceable. This approach ensures a deep understanding of its trends and dynamics, enabling effective communication with its community.u003cbru003eu003cbru003eEqually important is the ability to distinguish trends beyond short-term moments. Understanding long-term trends unlocks relevant insights and creative opportunities for brands.u003cbru003eu003cbru003eAs gaming becomes increasingly influential in broader culture, we can look to the #GamingOnTikTok community as a key driver in bringing the macro trends shaping our platform to lifeu003cbru003eu003cbru003eInnovative gaming brands on TikTok are creating on-trend and exciting content that resonates with fans. They show that understanding and tapping into current culture is crucial for achieving business success today.u003cbru003e u003cbru003eFor example, Bytro Labs launched a successful TikTok campaign. They enlisted creators to produce content that combined engaging hooks with the latest trends. The campaign featured videos in split-screen mode showcasing gameplay at the bottom with a creator reacting at the top, resonating with the platform’s trends towards immersive engagement and UGC. Starting in Germany and expanding globally, they maintained a consistent global brand while adapting their ads to fit local culture. This strategy of aligning with trends and cultural nuances significantly boosted ROAS.
Spark Ads vs classic app install campaigns: how to approach from a creative standpoint?
Both Spark Ads and classic in-feed ads should work in tandem, complementing one another to reinforce the core message effectively. While both campaign types aim to deliver u0022TikTok firstu0022 content that resonates with the platform’s unique culture, they each bring distinct strengths to the table.u003cbru003eu003cbru003eClassic ads prioritize creative best practices like engaging hooks, concise TikTok-style text, and captivating gameplay footage to quickly grab attention and drive interest towards app installs. For instance, an ad might tease u00223 features you must try in the game,u0022 followed by a showcase of these features and gameplay to visually engage the viewer.u003cbru003eu003cbru003eSpark Ads tap into the trust and authenticity of creators or brands. They connect on a personal level, showcasing creators’ genuine experiences. For instance, a creator might share their favorite game features, inviting followers to explore and respond. Brands also use Spark Ads to engage the community, asking for feedback on favorite features to refine their approach. It’s a strategy that makes ads more personal and engaging.u003cbru003eu003cbru003eUltimately, while both Spark Ads and classic in-feed ads aim to generate interest and drive app installs, Spark Ads extend the strategy by incorporating elements of emotional appeal, personal testimony, and community interaction.u003cbru003eu003cbru003eUsing both ad formats ensures campaigns capture attention with compelling content while also deepening audience connections through authenticity and engagement, thus maximizing the overall impact of advertising efforts on TikTok.u003cbru003eu003cbru003eu003cbru003e
Qu0026amp;A 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. u003cbru003eu003cbru003eThe 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.u003cbru003eu003cbru003eThis 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. u003cbru003eu003cbru003eThis 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. u003cbru003eu003cbru003eWhile AI can streamline content creation, its overuse risks homogenization,u003cbru003epotentially stifling the unique voices, perspectives, and innovative ideas that human creators bring.u003cbru003eu003cbru003eAI’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.
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 desiredu003cbru003econversions, 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.u003cbru003eu003cbru003eOnce 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.u003cbru003eu003cbru003eThroughout 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.u003cbru003eSelect Imageu003cbru003e
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.u003cbru003eu003cbru003eHowever, 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. u003cbru003eu003cbru003eTo 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.
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. u003cbru003eu003cbru003eThis 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
