App install ads projected reach $118bn globally

We hear lots about technology in adland but what sometimes gets overlooked is the way it boosts the coffers of good old ad agencies (you may disagree with the good.)

Tech firms are now among the biggest conventional advertisers with Amazon reportedly accounting for two per cent of global adspend on its own (about $14bn according to our not very scientific calculations.) Facebook is rolling out its own big global campaign plugging ‘groups’ this year.

Now apps specialist AppsFlyer has published its Global App Install Ad Spend three-year projection which forecasts growth in app adspend from $57.8 billion last year to $118bn in 2022.

App installs are projected to increase from 204bn in 2019 to 258bn in 2022, with key markets including China, India, Indonesia and numerous countries in Africa experiencing a surge in users. Consumer spend in app stores alone reached $120bn. in 2019.

But there are now so many, of course, that most need to advertise to get noticed.

AppsFlyer head of content Shani Rosenfelder says: “The share of budgets directed to acquiring new app users will increase faster than the actual increase in mobile search or brand budgets, demonstrating the growing role performance app marketing plays in mobile marketing.

“The success of apps has attracted millions of developers to the app stores, creating a hyper-competitive environment. As a result, the chances of the average app being discovered organically in the app stores is almost non-existent. Apps must increase their marketing budget to draw attention to their app.”

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About Stephen Foster

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Stephen is a former editor of Marketing Week and London Evening Standard advertising columnist. He wrote City Republic for Brand Republic and is a partner in communications consultancy The Editorial Partnership.

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