Pre-Load Apps

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Pre-Load Apps

After conducting extensive research, we were unable to provide detailed insights surrounding how app developers that carry out user acquisition, perceive pre-loads compared to standard distribution channels, as the information is not publicly available. However, we found that when a developer acquires a pre-load contract, the app can reach thousands of users and serve as a useful distribution channel, as smartphone users typically look at their home screen at least 80 times per day. Provided below are the research methods used to determine that the requested information is unavailable, as well as some useful findings.

RESEARCH STRATEGY

First, we searched for precompiled information from industry reports and market research reports of mobile applications hoping to find some perceptions of app developers towards pre-load user acquisition, as well as comparison of pre-loads to standard distribution channels. We searched through Allied Market Research, Persistence Market Research (PMR), Grand View Research, etc. Unfortunately, this method did not provide us with answers to the request. Though we were able to find an overview of how the pre-load channel works, our findings did not include any insights on how app developers that carry out user acquisition perceive pre-loads compared to standard distribution channels. Other information found within this strategy was the pre-load deals of some manufacturers and app developers.
Next, we tried to triangulate the insights themselves by gathering any feedback statements from app developers in terms of the distribution channels for user acquisition. We were hoping to find any ideas that would provide a comparison of pre-loads to standard distribution channels. We searched through TechCrunch, Business of Apps, Digital Turbine, etc. We found an overview of pre-load apps, quantitative information of pre-load apps, benefits, and negative feedback. However, our findings did not meet the criteria of the request.
Lastly, we tried to search for available preview information from the public, as well as locked surveys and polls, specific to app developers hoping to find any info about pre-loads and standard distribution channels. We searched through GigaOM, App Developer Magazine, Clutch, etc. Again, this yielded no significant result, as we found no surveys or polls that addressed the request. Most information found were surveys of app marketers, users, etc.

QUANTITATIVE INFORMATION OF PRE-LOAD APPS

Installed app pre-loads produce conversion rates of up to 25% when compared with traditional paid advertising, which usually has about 1-2% conversion. According to Digital Turbine, app pre-loads, give an average of about 25% app developers and advertisers pre-load, over 50 million times, their partner's apps on new gadgets. Digital Turbine's Native App Preload campaigns revealed the conversion of a pre-load app during its first opening. Southern US users showed an average conversion that was 25% greater than for those in the Northeast, which had the lowest conversion rates. The West and Midwest were middle tiers, showing similar performance levels.
Among other applications, pre-load apps have the highest penetration rate. Statista grouped the top three app categories, based on their penetration rate levels for Android users as tools (99%), communication (99%), and video players/editing (96%). Based on the highest click rate percentage, the top categories for mobile app pre-loads are utilities, entertainment, gaming, shopping, social/messaging, and travel. Clean Master, for example, is at the top of this list with 7-day opens and three-month retention because it helps Android users free up space on their phones, improve the device's battery, and keep the phone free of viruses and software malfunctioning, as these are things for which the users are greatly concerned.
Digital Turbine revealed that newly launched pre-load apps had a 30% discovery rate within their first week. This value then went up to 41%, 47%, and 49% in the first, second, and after the third months, respectively. This growth continued to reach 54% after six months, indicating that the engagement rate of pre-load apps increases over time.

BENEFITS OF PRELOAD APPS

Pre-load apps afford users more privacy and outperform legacy digital formats. Publishers have better control, management, and monetization power over their pre-load apps. The developers can personalize the apps to give a smarter, more engaging, user-friendly experience. They can also obtain the demographics of their target market and use that to select the apps most relevant to the market. Pre-load apps maximize the possibility of avoiding costly ad campaigns, capturing the attention of computer age customers, and providing a much better brand experience based on the app characteristics and user-experience campaign.
Pre-load apps reduce the risk of fraud for developers. In 2017, mobile attribution clicks were projected to lead to a loss of $16.4 billion, which is $10 billion more than the amount lost in 2016. Pre-load apps thus provide developers with a more secure environment to release their apps, with added benefits such as greater targeting, improved discoverability, higher rates of activation, and engagement. Pre-load apps also reduce the competition for engagement and activation. When a developer acquires a pre-load contract, the app can reach thousands of users and serve as a useful distribution channel, as smartphone users typically look at their home screen at least 80 times per day. A pre-load app has a better chance of frequent usage by new users, as they provide an efficient way of getting the attention of the users.

NEGATIVE FEEDBACK FOR PRELOAD APPS

Because of their automatic installation, pre-load apps have been reported to slow down new Android smartphones and eat up vital memory space, especially as they may not be in use. They also have a strict approval process and limited capacity.
Sources
Sources

Quotes
  • "Compared with traditional display advertising, where app install conversion rates vary from 1-2 percent, native app preloads simply outperform legacy display ads, and provide a less intrusive experience for the end customer."
Quotes
  • "As a result, publishers and developers can now control, manage, and monetize their preloaded applications with ease."
  • "By engaging in advanced user profiling, developers can easily acquire target market demographics (i.e. age, gender, location, and device model) and select the most relevant apps for these specific users."
  • "Today’s preloaded apps are specifically tailored to their users, and this results in a smarter, more engaging, and user friendly experience."
Quotes
  • "Preloading, with its strict approval process and restricted capacity (especially when compared to the mass market availability of the app stores), gives developers and marketers the opportunity to present their apps in a trusted environment where competition for activation and engagement is limited."
Quotes
  • "If your company’s app does secure a preload contract, preloads can act as a powerful distribution channel. Considering most smartphone users look at their home screen 80 times a day (link is external), your company’s app will immediately have a direct point of contact with thousands of users."