- Global device installment ad spending is expected to rise from $57.8 billion in 2019 to $118 billion by 2022 according to mobile forecast company, Appsflyer.
Global device installment ad spending is expected to rise from $57.8 billion in 2019 to $118 billion by 2022.
That is according to the mobile attribution company’s newly published forecast, AppsFlyer.
Due to high demand from app users, App deployments are being powered by countries like China, India, Indonesia, and various African countries.
Last year, consumer spending on app stores amounted to $120 billion.
“The share of budgets aimed at acquiring new app users will rise faster than the actual increase in mobile search or brand budgets, reflecting the increasing role that value app marketing plays in mobile marketing,” said Shani Rosenfelder, AppsFlyer, Head of Content and Mobile Insights.
With half the global budgets, Asia-Pacific continues to hold the largest share of app installs ad spending. It is expected that by 2022 it will rise by 27 percent. Yet app installs ad spending in Latin America remains strong at a 30 percent year-on-year growth with Brazil at the forefront.
“Advances in market measurability have given us greater confidence to include China in the model for the first time, despite the current measurement limitations,” explained Rosenfelder. “According to a conservative estimate, with an estimated 100 million users, China’s app deployment ad spending will hit $15 billion in 2019 and over $22 billion in 2022.” In contrast, AppsFlyer forecasts that North American mobile user bases will only attract 5 percent growth. But that’s not to say the app install spending isn’t lucrative (25 percent to $27 billion in in-app install spending in 2022. Meanwhile, by 2022 Europe would add 16 million connected apps (a 6 percent increase).
Mobile advertising, which involves large search and brand budgets, totaled $241bn in 2019 and is expected to reach $368bn in 2022, according to eMarketer. Consequently, the share of app installs ad spending will rise by 30 percent by 2022 to reach nearly a third of mobile ad spending.
The fact that the share of budgets aimed at acquiring new users of apps will grow more rapidly than the rise in mobile search or brand budgets attests to the growing role played by performance app marketing in mobile marketing.
In addition, India is expected to add over 100 million mobile internet users by 2022. Given its sheer size, however, India has less impact on the overall APAC app install ad spend due to the extremely low advertising cost in the country (only $0.25-$0.28 per installation). We estimate that app install ad spending in India in 2019 was about $1.2bn— a small piece of the $30bn spent.
Gaming registered about 40% of the overall deployment of spending pie apps in 2019—a rise of 30% since 2017. Apple Arcade and Google Play Pass game subscriptions can push further growth as new revenue channels for gaming apps open up. Implementation of 5G networks will also move to gamble forward.
You can find the whole report here.