The application advertising market is expected to grow by 136 percent, from $ 27.1 billion in 2017 to $ 64.1 billion in 2020, according to a new market research study conducted by AppsFlyer, a SaaS analytics and analytics platform. mobile marketing attribution.
The report predicts an average growth rate of 34 percent over the previous year, with growth slowing as the market begins to mature. This slowdown should be offset by an increase in media costs, the number of paid campaigns, the number of applications but also an increase in the number of mobile users.
In North America, one of the major markets, spending growth will also be pronounced, doubling by 2020 to $ 12.9 billion. “As we can expect at the global level, the average year-over-year change in this region will reach about 21%, which means significant growth over a longer period,” the report says.
In today’s world of applications, competition between developers is such that it is virtually impossible for them to point out their mobile applications. As a result, developers have found many ways to draw attention to their applications in the windows of applications to generate downloads.
An organic installation occurs when a user encounters an application that he deems useful to buy or download for free, due to his high level of interest in this application. An installation is said to be unorganized when the user is encouraged to download in exchange for gifts such as virtual money that can be used in the game, bonuses, etc.
According to the report, while advertising spending on application facilities is likely to show the strongest growth through 2020, it is still important to monitor trends in non-organic facilities in order to have the best possible understanding of the potential of the reference value.
For this reason, it should be noted that if plant growth is significant between 2017 and 2020, this rate will not match the expected increase in media costs. According to our data, global facilities will increase by 110% by 2020, while North American facilities will increase by 73%. Keep in mind that, even though the growth rates for advertising and installation rates will keep the same ratio until 2020, marketers will have to be more and more efficient in their marketing efforts in the face of rising prices. media costs.
Why AppsFlyer expects mobile application growth?
The platform notes that a number of emerging trends lend themselves to booming spending and mobile advertising facilities. She highlighted some of the most important ones below:
- Games: The application economy is growing rapidly, mainly due to gaming applications on the one hand and shopping applications on the other hand, which account for about 44% of all non-organic installations combined. For games, which account for about 40% of the total number of applications installed, growth is particularly staggering. Between 2016 and 2018, the share of non-organic gaming facilities in the pie increased by 26% from 27% to 34%.
- For example, take a look at the Fortnite gaming phenomenon, which completely dominates the ranking, downloads, and revenue of app stores. It’s almost a cultural phenomenon and it shows how the game as a vertical application is becoming.
- Powerful devices: From a hardware point of view, new devices are being marketed, which remain powerful and support more sophisticated and immersive gaming experiences, as well as much more affordable. These devices also offer on average a larger storage space, which means, especially in developing countries, that there will be no more de facto limit on the number of applications that can be used on a given device. .
- Shopping apps: This category of apps plays an important role in connecting users between offline (in-store) and online (web, mobile, and apps), especially with the growing use of mobile apps shopping. (Forrester predicted that mobile devices would affect 34% of all US retail sales, over $ 1 trillion, and this share is expected to increase to 42% by 2022.)
- Video and music streaming applications: This form of content consumption is growing rapidly, especially among giants such as Netflix, HBO, Hulu and Spotify. This is likely due to more powerful devices, affordable data packages, and the emergence of more powerful cellular infrastructures, such as 4G and 5G, that can support it with more flexibility and bandwidth.
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