Mobile app marketing’s performance is on a steady rise across industries. In 2023, 64.7% of global companies increased their mobile ad budgets compared to the previous year. For UK businesses, this number spiked to 67%, with a budget boost of over 29%. That’s according to new research from performance advertising experts Moloco. Let’s dive right in.
Performance mobile app marketing on a wave
UK-based firms increased their mobile performance ad budgets by almost 26% of the global average. Moreover, 63.2% of global firms, and 68% of UK organisations, shared plans to allocate more of their mobile ad budget to performance marketing in 2022.
Notably, performance marketing claimed a lion’s share at 45.7% in 2023, surpassing brand marketing at 41.4%. This shift underscores the widely recognised importance of performance marketing in driving sales and profits.
Companies’ allocation in the marketing budget for mobile ads: 2023 vs. 2022 comparison
Performance-driven marketing creates a positive loop by boosting user acquisition and enhancing Return on Ad Spend (ROAS).
Companies proficient in performance-driven mobile marketing programs are not just skilled but also highly content with their outcomes, giving it a solid 4.4 out of 5 rating. They attribute this success to performance marketing’s ability to effectively bring in new users, secure high-quality user acquisitions, and improve ROAS.
Performance boost is a major reason for rise in marketing budgets
Interestingly, a significant 58.2% of marketers believe that performance marketing is more effective for driving revenue growth compared to traditional brand marketing methods. Furthermore, 55.5% of marketers consider performance marketing as the key to achieving profitability, especially in uncertain economic times. This sentiment is even more prevalent in the UK, where an impressive 68.6% of marketers share this viewpoint.
Machine learning and AI are top technologies
The top criterion for choosing a mobile app performance marketing solution is advanced machine learning, garnering the coveted #1 spot. Across the globe, marketers are finding that advanced ML/AI technology takes precedence, with a substantial 37% of them selecting it as the paramount factor from a list of ten possible considerations. Following closely behind are factors such as global reach, securing second place with a 23.1% preference, and high-quality user acquisition, claiming the third spot with an 18.1% vote.
MI and AI as top marketing tech
The pivotal role of machine learning is underlined by its ability to furnish real-time, precise data for informed decision-making and the meticulous tracking of objectives. It stands as the linchpin for success in the realm of mobile app performance marketing solutions.
“The global shift in marketing from reach to results continues to gain momentum across different countries and various industries,” said Daisuke Yokokawa, Vice President, Global Marketing, Moloco. “Many mobile app marketers are aware that the secret of big tech’s success in advertising is advanced ML technology and the performance marketing solutions that they provide. This global trend is due to the clear and resounding power that mobile app performance marketing has to drive revenue, user acquisition, and profit, especially during times of economic uncertainty.”
- In 2023, 64.7% of global companies increased mobile ad budgets, rising to 67% for UK businesses
- 37% of marketers prioritize advanced ML/AI in mobile app marketing solutions
- Performance marketing claims 45.7% of the mobile ads budget, exceeding brand marketing at 41.4%