As consumer time in-apps increases rapidly, app developers can find new advertising opportunities

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With global revenue for mobile apps predicted to grow 270% between 2015 and 2020 to reach $189bn, it’s about time publishers tap into the app monetisation opportunities available to them. In order to do so successfully, publishers should anticipate future opportunities. That’s according to new research from App Annie as part of its App Annie App Monetization Report. 

Apps are an increasingly important source for shopping, communication and entertainment. As such, consumer time within apps has been growing rapidly over the last two years at a 114% growth rate. Social apps are attracting the largest share of time spent in-app, whilst entertainment apps have seen a rise of 212% in time spent over the last two years.

App Store time spent

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Source: appannie.com

Overall, the rise in app engagement has led to increasing revenues as well as app store purchases and mCommerce sales. It’s obvious that there are various opportunities for marketers to benefit from this growth in app usage.

However, advertisers should focus on finding the strategies that best suit their app category. Whether you’re trying to advertise a freemium or premium app or want to push mCommerce sales through your app, there are some big differences in what marketing tactics fare best.

App Annie predicts that worldwide in-app advertising and net-to-publisher app store revenue will be likely to grow rapidly and double until 2020. In-app advertising and app store revenues are both set to grow. Advertising’s share of revenue is predicted to increase from 58% to 62% from 2015 to 2020. This is largely due to strong smartphone and app adoption across developing economies and mobile apps. Indeed, App Annie suggests that smartphone and tablets are to double from 2.7bn in 2015 to 6.2bn by 2020.

Annual app forecast

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Source: appannie.com

In terms of app category, both games and non-gaming apps are to see some significant growth. However, games are projected to drop somewhat in terms of app store revenue, from 66% to 55%. Combined net revenue for apps is forecast to triple over the forecast period.

Mobile app revenues

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Source: appannie.com

In-app advertising is predicted to increase to 62%, from 58%. But paid and paidmium are likely to continue to make up a small share of the overall market.

In-app advertising forecast

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Source: appannie.com

When it comes to territory, APAC is likely to overtake the Americas in terms of revenue, driven by China. By 2020, Asia will be delivering more than $85bn to publishers, but US market maturity in advertising will continue to see high CPMs and additional brand dollars. The US market will continue to be the single largest market for publishers to deliver $59bn in 2020, compared to $54bn in China.

Worldwide revenues

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Source: appannie.com