Global app install ad expenditure to grow 65% until 2020

Anne Freier

In Mobile Advertising. December 21, 2018

Worldwide app install advertising expenditure is predicted to jump 65% between 2018 to 2020 to reach $64.1 billion according to new research from AppsFlyer. In other words, app install ad spend is growing an average 34% per year, slowing down over time.

Among the reasons for the shift are the increased cost of media, a higher number of paid campaigns, more apps on the market and the increase in mobile usage.

App install ad expenditure will jump to $12.9 billion in 2020 in the US alone, reaching a year-on-year rate of 21%.

Meanwhile, non-organic installs will grow 110% by 2020 (73% in the US).

Among other emerging trends, the app expert expects the app market to continue to grow rapidly fuelled by gaming and shopping apps, which combined represent 44% of all non-organic installs. Gaming already represents 40% of app installs and continues to demonstrate strong jumps in growth.

Meanwhile, the hardware continues to improve and gaming apps are supported by ever more powerful mobile devices, which provide better storage, improved connection speeds and therefore a better user experience.

When it comes to mCommerce, apps may play an increasingly important role over time.

Similarly, video and music streaming apps have gained momentum with the launch of Netflix, HBO and Spotify apps among others.

The research highlights that the future holds many opportunities for publishers to take advantage of growing ad spend, whilst marketers can drive revenue opportunities.