Online Advertising

iOS vs. Android: Unpacking ADS Costs

October 1, 2024

The cost of advertising on iOS vs. Android platforms differs due to several factors, including user demographics, purchasing behavior, and competition among advertisers. Here's an overview:

1. Cost per Install (CPI)

  • iOS: Typically has a higher CPI compared to Android. Advertisers often pay more to acquire iOS users due to their higher spending power and tendency to engage with premium apps or services.
    • Average CPI for iOS: $3.6–$4.5 (varies by region and industry).
  • Android: Generally has a lower CPI, making it more affordable for advertisers to acquire users. However, Android has a larger global user base, which can lead to higher competition in some regions.
    • Average CPI for Android: $1.5–$3.0.

2. Cost per Click (CPC)

  • iOS: Higher CPC due to the higher value placed on iOS users. These users are seen as more likely to convert into paying customers.
    • Example: CPC on iOS can range from $1.5–$2.5.
  • Android: Lower CPC but may have lower conversion rates in certain regions.
    • Example: CPC on Android can range from $0.8–$1.8.

3. Return on Investment (ROI)

  • iOS Users: Tend to have higher LTV (Lifetime Value) and ARPU (Average Revenue Per User), which makes the higher cost of advertising more justifiable. For example:
    • Higher in-app purchase rates.
    • Greater likelihood of subscribing to premium services.
  • Android Users: Offer a larger user base and potentially higher reach but generally lower LTV, especially in emerging markets.

4. Audience Demographics

  • iOS: Dominates in regions like North America and Western Europe, where users typically have higher disposable income.
  • Android: Has a larger global market share, particularly in regions like Asia, Africa, and Latin America, where users might be less inclined toward premium purchases but provide high volume.

5. Competition

  • Advertisers targeting iOS users often face higher competition because businesses perceive iOS users as more profitable.
  • For Android, while the user base is larger, the fragmentation across devices and operating systems can make targeting slightly more complex.

Key Considerations

  • App Type and Objective: If your app relies heavily on in-app purchases or premium services, iOS might yield a better ROI despite higher costs. For broader reach or ad-supported models, Android could be more cost-effective and might also provide all the early growth necessary in emerging markets like Africa.
  • Region-Specific Strategy: Costs and user behavior vary significantly by region. For instance, advertising costs for Android in Sub-Saharan Africa will be significantly lower than IOS.
By understanding your market dynamics, target audience, product stage and product goals, you can make an informed decision about which platform provides the best value for your advertising budget.