UGC & interactive ads drive major gains for mobile app installs

Techday NZ

10-07-2025

Analysis from Liftoff's seventh annual Mobile Ad Creative Index shows that app advertisers using user-generated content (UGC) video ads increased conversion rates from impression to install by an average of 152% over the past year.
The report examines creative trends among Liftoff's highest-spending advertisers, looking back over the last 12 to 48 months and drawing on internal data from over 4.7 trillion impressions, 263 billion clicks, and 1.1 billion installs recorded between January 2023 and May 2025. The findings identify the formats and strategies currently driving results for consumer app and mobile game marketers.
Interactive and playable ads
One of the key findings is the growing investment by top consumer apps in interactive advertising. The share of ad spend directed toward interactive ads increased by 20% year on year in 2024 for leading apps, compared to a 2% gain from those outside the top spending tier. Advertisers differentiated campaigns using updated versions of evergreen interactive concepts such as social scrollers, carousels, and scratch-off ads to improve user engagement.
Mobile game advertisers, in particular, saw substantial benefits from playable ads, with the report noting that the share of ad spend on this format for top games averaged 35% higher than other games in 2024. Playable ads consistently delivered higher conversion rates: for top spenders, impression-to-install rates were eight times those of non-playable formats, and for other advertisers, that ratio was 16 times higher.
Metaplay elements and targeting
The report further explores the use of "metaplay" elements - features in mobile games that offer gameplay distinct from the app's core design, broadening appeal to different audience segments. When top games aligned metaplay ads with publisher audiences, the result was a 93% increase in installs-per-mille, signifying enhanced targeting effectiveness through creative adaptation.
UGC adoption and impact
The share of ad spend on UGC rose by 11% among top-spending apps, with social and utility apps experiencing the most notable growth - a close to 30% increase between 2023 and 2024. Advertisers in these verticals have increasingly relied on UGC's relatability and perceived authenticity to connect with users, standing out in a competitive market.
AI integration and customisation
The report observes the widespread adoption of generative AI in ad production. Creative teams are enhancing their highest-performing assets through 3D elements and motion, and leveraging AI to generate and test creative variations. Top advertisers are also using AI to remix their assets, resulting in customisable ad experiences that differ from typical video and playable formats. "Today's creative landscape is shaped by a single, powerful truth: attention is the commodity, and brands, games, and influencers are all vying for it. Great mobile ad experiences can earn attention by aligning context with behaviour. As ad formats become richer and AI expands our ability to personalise and adapt creatives at scale, we're able to unlock new insights into user behaviour and motivation. We see users spend meaningful stretches with the right content, sometimes 60 to 90 seconds when the ad feels personal or prompts meaningful participation. This isn't just a better way to advertise - it's a better way to tell stories and the most exciting brief we've had in years."
Yann Zeller, Chief of Staff, Creative at Liftoff, underscored the importance of relevance and engagement in creative performance, linking personalisation and interactivity with longer user engagement times. "The proof is in the data - more and more consumer apps are incorporating UGC into every stage of their marketing, and programmatic is no different. UGC works because it's authentic and relatable, and users are more likely to be influenced by ad when it's coming from a trustworthy source. To see higher impact from UGC creatives, work with a partner that can match the right creator with your brand and develop winning concepts that resonate with audiences."
Soren Steelquist, Director of Creative Production at Liftoff, commented on UGC's role in the advertising mix, emphasizing the need for brands to collaborate with creators who fit their audiences.
Methodology and industry context
Insights from the Mobile Ad Creative Index are based on substantial data analysis from Liftoff's platform, tracking advertising performance and format effectiveness in the consumer app and games sector. The report details trends, examples, and strategies currently yielding results regarding creative development, audience engagement, and ad spend allocation.