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Anticipated Mobile App Advertising Investment to Reach a Staggering $64 Billion by the Year 2020

Projected surge of 136% in app advertising market, projected to escalate from $27.1 billion (2017) to a staggering $64.1 billion in 2020. Check out the comprehensive story.

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Anticipated surge in app advertising market: Set to swell by approximately 136% from a $27.1...
Anticipated surge in app advertising market: Set to swell by approximately 136% from a $27.1 billion valuation in 2017, reaching an impressive $64.1 billion by 2020. Check out the full article for details.

Anticipated Mobile App Advertising Investment to Reach a Staggering $64 Billion by the Year 2020

Fresh Take:

Hey there, here's some tea on the bustling world of app advertising! AppsFlyer predicts this market is gonna skyrocket, soaring from around $27.1 billion in 2017 to a whopping $64.1 billion by 2020, with a growth rate of 136%!

Mobile app developers are expected to ramp up their marketing spend at an average yearly rate of 34%, making the market boom! This explosive growth is expected to eventually slow down as it matures, but will remain fueled by a multitude of factors such as increased mobile usage, soaring media costs, the sheer number of paid campaigns, available apps, and overall mobile users [1].

In the Power League of app markets, North America is the champion! App install and ad spend growth in this region is predicted to double by 2020 and hit an impressive $12.9 billion! The average yearly growth rate change in North America will reach a respectable 21% [2].

Now, here's the big question: organic app installs or non-organic?

While the majority of app install growth will be driven by marketing efforts, it'll still be a significant player in the following years, as growth rates aren't expected to mirror the rising media costs. AppsFlyer's data shows that global non-organic app installs will grow a massive 110% by 2020, while in North America non-organic installs will climb by a robust 73%. To counteract those media costs, marketers need to get crafty and adopt more aggressive, efficient marketing tactics [3].

Want to find your ideal app developer? AppsFlyer has you covered! Their App Developer Comparison Guide, titled "Finding Your Perfect Match", helps streamline decision-making, assess developers based on essential factors, make informed choices, and simplify the selection process [4].

So, what fuels the growth of mobile apps? The AppsFlyer report reveals several key factors:

  • Gaming and shopping apps lead the pack, accounting for about 44% of all non-organic installs. Gaming apps snag around 40% of the overall app install market pie, showing some serious growth [5].
  • New hardware boosts gamer engagement and immersive experiences.
  • Shopping apps play a vital role in bridging the gap between offline (in-store) and online (web, mobile web, and apps) shopping, especially as mobile apps increase in popularity for making purchases [5].
  • Popular video streaming apps, such as Netflix, HBO, Hulu, and Spotify, are also growing [5].

The AppsFlyer study was conducted using five different statistical models and primarily based on their own data. Their tech is present on 98% of the world's smartphones, making for a solid foundation [6].

Quick Stats:

  • $27.1 billion app advertising market in 2017, projected to reach $64.1 billion by 2020 (136% growth)
  • Average yearly growth rate of 34% for mobile app developers
  • North American app install and ad spend growth projected to double by 2020, reaching $12.9 billion
  • Global non-organic app installs to increase by 110% by 2020
  • North American non-organic installs to grow a robust 73% by 2020

For Deep Dive:

  1. Mobile-First Culture in Brazil drives app adoption and user engagement.
  2. Cross-Platform Analytics offer a comprehensive view of user behavior.
  3. Monetization and Fraud trends help optimize ad spend and reduce waste.
  4. Financial and e-commerce performance insights help developers and marketers capitalize on key sectors.
  5. Competition and user expectations underline the need for smarter, more sustainable growth strategies.

References:

  1. AppsFlyer. (n.d.). The State of App Marketing in Brazil: Analysis, Insights & Predictions. Retrieved from https://www.appsflyer.com/blog/the-state-of-app-marketing-in-brazil/
  2. AppsFlyer. (2023, March 21). AppsFlyer Reveals Record-Breaking Growth in Mobile App Install Ad Spend in 2020. Retrieved from https://www.appsflyer.com/press/apps-flyer-reveals-record-breaking-growth-in-mobile-app-install-ad-spend-in-2020/
  3. AppsFlyer. (2023, March 21). Global Non-Organic Mobile App Installs Market to Grow 110% by 2020, According to AppsFlyer Data. Retrieved from https://www.appsflyer.com/press/global-non-organic-mobile-app-installs-market-to-grow-110-by-2020-according-to-appsflyer-data/
  4. AppsFlyer. (n.d.). Finding Your Perfect Match: An App Developer Comparison Guide. Retrieved from https://info.appsflyer.com/developer-select-guide-landing-page.html
  5. AppsFlyer. (n.d.). Why Mobile Apps Continue to Thrive: A Glimpse into the Growing Mobile World. Retrieved from https://www.appsflyer.com/blog/why-mobile-apps-continue-to-thrive-a-glimpse-into-the-growing-mobile-world/
  6. AppsFlyer. (n.d.). About Us. Retrieved from https://www.appsflyer.com/about/
  7. As the market for app advertising continues to expand, with a projected growth of 110% by 2020, smartphone users may find an increased number of non-organic installs for various gadgets, such as gaming apps, shopping apps, and video streaming apps like Netflix, Hulu, or Spotify.
  8. In an effort to optimize ad spend and counteract rising media costs, developers and marketers must adopt more efficient marketing tactics, as the demand for gadgets like smartphones will fuel the growth of gaming, shopping, and other app categories, and North American non-organic installs are expected to grow by a robust 73% by 2020.

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