Massive growth in mobile app store and in-app advertising revenue

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Mobile analytics provider App Annie and market and analysis firm IDC have found that mobile in-app advertising revenue is set to grow, expanding over three times and overtaking PC and mobile web advertising by 2018. The findings are part of the App Annie & IDC Mobile App Advertising and Monetization Trends 2013-2018 report, developed in partnership by the two firms.

Between 2013-2014, in-app ad revenues grew by 70%, while web-based advertising grew 50% and search advertisement revenue 60%. Among the most popular types of ads were static banners and full screen ads, followed by video with video generating the most revenue. Freemium revenue for mobile apps was up by 211% from last year, with the most common option being the offer of additional functionality at a price to drive in-app purchases.

Mobile app revenue is growing fast, outpacing both PC web and mobile web advertising

01-AA-IDC-Mobile-App-Advertising-and-Monetization-Trends-2013-2018-Sample

Source: AppAnnie.com

The US and Japan were the most lucrative markets. Russia, Brazil and India are growing at the same rate, though interestingly India generates the most advertising revenue while in-app purchases are the most popular in Japan.

Mobile App Revenue by country and composition

App-revenue-trends-by-country-IDC-App-Annie (1)

Source: App Annie & IDC Mobile App Advertising and Monetization Trends 2013-2018

App store revenue dominated 81% of Japan’s mobile app revenue, whilst India presented the highest number in in-app advertising (70%), closely followed by the UK. Depending on their location, publishers should reevaluate their business model strategies.

The report also says that wearables and the Internet of Things will add to the upside and drive revenues.

You can find the full report here.

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