Mobile App Advertising and Monetization Trends 2013-2018

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1. 2015AppAnnie&IDC|DoNotDistribute Mobile App Advertising and Monetization Trends 2013-2018: Freemium and In-App Ads Expand Their Lead March 2015 2. 2015AppAnnie&IDC|DoNotDistribute 2 1. Assessing the Current Opportunity for Apps 2. Selecting the Right Business Model for Your Apps a. Freemium b. In-App Advertising 3. Choosing Which Markets to Target 4. Planning for the Future 5. Key Takeaways USERESTRICTIONS:Theinforma=on,materials,data,images,graphics,andothercomponentsofthisreport("Report")arecopyrightedandownedorcontrolledbyApp AnnieorIDCunlessotherwisenoted.UnauthorizeduseoftheReportmayviolatecopyright,trademarkand/orotherintellectualpropertyrightsofAppAnnieorIDCandmay giverisetoaclaimfordamagesand/orbeacriminaloense.TheReportmaynotbemodied,copied,distributed,republished,uploaded,posted,decompiled,ortransmiQed inanyway,withoutthepriorwriQenconsentofAppAnnieandIDC. 3. 2015AppAnnie&IDC|DoNotDistribute Mobileappscon7nuetooutpacebothPCweband mobilewebadver7sing Mobile in-app advertising is expected to continue taking revenue share from PC advertising as advertisers allocate their budgets for maximum return 3 4. 2015AppAnnie&IDC|DoNotDistribute 0 1B 2B 3B 2013 2014 DeviceInstalledBase 0 50 100 150 2013 2014 IndexedRevenue WorldwideCombinedAppStoreandIn- AppAdver7singRevenueperDevice* 4 Source:AppAnnie&IDC WorldwideCombinediOSandAndroid SmartphoneandTabletInstalledBase Source:IDC 1.4x 1.2x Massive growth in the number of smart mobile devices dramatically expands the potential app audience Increasing revenue per mobile device magnifies the impact of growing device adoption, accelerating the growth of the overall monetization opportunity Mobileapprevenueopportunityisrapidlyexpanding duetogainsindeviceadop7onandrevenueperdevice *In-appadver=singacrossallappstores;appstorerevenueacrossiOSAppStoreandGooglePlay 5. 2015AppAnnie&IDC|DoNotDistribute 5 1. Assessing the Current Opportunity for Apps 2. Selecting the Right Business Model for Your Apps a. Freemium b. In-App Advertising 3. Choosing Which Markets to Target 4. Planning for the Future 5. Key Takeaways 6. 2015AppAnnie&IDC|DoNotDistribute 6 In addition to generating revenue, driving corporate branding and marketing initiatives is an objective for many app publishers Appscanachieveavarietyofgoalsforpublishers, thoughearningrevenueistheclearfavorite Source:AppAnnieSurvey March2015(n=2962) Whatareyourcompanysgoalsforitsapps(selectallthatapply)? 0% 10% 20% 30% 40% 50% 60% 70% Driveshopperstoyourcompanysbrick-and-mortar stores(e.g.,Walgreens) Generatemobiletransac=onsthatareprocessed outsideofanappstore(e.g.,eBay,Uber) Provideyourcompanysonlineservicesand func=onalityviamobile(e.g.,Neflix,BankofAmerica) Drivebrandingandmarke=ngini=a=vesforyour company Earnrevenuethroughin-appadver=sing Earnrevenuewithintheappstore(e.g.,in-app purchases,paiddownloads) PercentofRespondents 7. We hope you found the provided information helpful. Click below to download the full presentation. Download