Mobile advertisers to spend more on gambling app campaigns

Anne Freier

In Mobile Advertising. June 8, 2016

As the global online gambling market is set to hit a growth rate of 11% until 2020, mobile advertisers are likely to refocus their budgets on mobile campaigns. That’s according to Mobile Advertising Watch and part of a new report compiled by BI Intelligence.
In 2014, the online gambling market generated $37bn, including revenue that came through mobile apps. Gambling apps have become popular over the years. Total US downloads of casino apps grew 286% between the 12 months from February 2015 to 2016.
Salesforce cautions that social casino apps which do not use real money are still those with the highest cost per install (CPI) in the US at $8.50, double the average for mobile apps in the country.
Hence, BI Intelligence suggests that ROI on gambling apps may be high enough to justify the high CPI, even if the app doesn’t use real cash.
Mobile gambling apps are already showing some solid revenue potential for marketers and developers. Last year, the top four casino apps made over $645m in revenue. The European market is expected to grow 15% year-on-year to $15bn annually.
The global average annual spend per paying player hit $86.50 for mobile games – not far off the $91.58 average on traditional games.
Mobile casino apps on the rise
bii global average annual spend by device
The report adds that developers have been busy creating ever more casino apps as of late. However, the saturation within the mobile games category and a consumer preference for free-to-play models has had a negative impact on advertising costs with developers having to fork out ever more cash to acquire users.
At the same time, rising ad costs are leading to developers focusing on smaller player segments which are more likely to pay for in-app content.