Mixed reality apps are set to attract more ad spend over the coming years. According to Juniper Research, ad revenue for the apps which feature augmented or virtual reality will reach $11 billion by 2024, up from $2 billion in 2019.
Downloads for mixed reality apps are predicted to triple to 10 billion, up from 3 billion in 2019.
As more and more social networks such as Facebook and Snapchat adopt VR and AR, advertisers are noticing higher engagement rates. Games such as Pokemon Go and Harry Potter: Wizards Unite have proven that users are into these more immersive experiences.
Juniper estimates that social media and gaming apps will make up over half of mixed reality market value by 2024.
Meanwhile, 75% of consumers market value is coming form in-app purchases over the next few years. But there’s caution that VR and AR apps may also suffer high rates of abandonment.
“Despite temptations to continually grow the app user base, app developers must have a primary focus on retaining existing users,” said Sam Barker of Juniper. “Successful mixed reality app developers, Niantic and Snap, have continued to leverage their significant user bases by ensuring that app content is consistently refreshed, therefore benefiting from continued user spend.”