App install spending within gaming is projected to double by 2022 to £37 billion worldwide, up from £17 billion in 2019.
That’s according to a new forecast by mobile attribution firm AppsFlyer.
As the games app market is becoming increasingly saturated, a growing number of gaming apps are competing with each other making organic growth a difficult goal to achieve.
More than half (57%) of gaming app installs are non-organic even at minimal ad spend while 40% of paid media spend on app installs comes from gaming apps.
According to the research, app spend is predicted to grow most within hardcore and hyper-casual games.
“Across all categories of apps we’re seeing an increasingly competitive market for user attention,” said Paul Wright, Managing Director of Europe at AppsFlyer. App stores are more crowded than ever and developers are having to increase their paid media budgets accordingly to cut through and drive new app installs. Gaming has always been the most competitive app category and we don’t see this changing. Our data shows that paid media spend in the gaming category will grow by over 30% per year to around £37 billion in 2022.”
He added that more game developers will try to diversify and increase their paid media investments.
“Currently only around 5% of users actually make in-app purchases and there is still a significant dependence on in-app advertising to monetise. There’s also significant new opportunity on the horizon with the arrival of 5G and cloud gaming, and we’re certain that gaming will use these new technologies to innovate.”