Mobile App Advertising and Monetization Trends 2013-2018
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Transcript of Mobile App Advertising and Monetization Trends 2013-2018
© 2015 App Annie & IDC | Do Not Distribute
Mobile App Advertising and Monetization Trends 2013-2018: Freemium and In-App Ads Expand Their Lead
March 2015
© 2015 App Annie & IDC | Do Not Distribute
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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
USE RESTRICTIONS: The informa=on, materials, data, images, graphics, and other components of this report ("Report") are copyrighted and owned or controlled by App Annie or IDC unless otherwise noted. Unauthorized use of the Report may violate copyright, trademark and/or other intellectual property rights of App Annie or IDC and may give rise to a claim for damages and/or be a criminal offense. The Report may not be modified, copied, distributed, republished, uploaded, posted, decompiled, or transmiQed in any way, without the prior wriQen consent of App Annie and IDC.
© 2015 App Annie & IDC | Do Not Distribute
Mobile apps con7nue to outpace both PC web and mobile web adver7sing
• Mobile in-app advertising is expected to continue taking revenue share from PC advertising as advertisers allocate their budgets for maximum return
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© 2015 App Annie & IDC | Do Not Distribute
0
1B
2B
3B
2013 2014
Device In
stalled Ba
se
0
50
100
150
2013 2014
Inde
xed Re
venu
e
Worldwide Combined App Store and In-‐App Adver7sing Revenue per Device*
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Source: App Annie & IDC
Worldwide Combined iOS and Android Smartphone and Tablet Installed Base
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
Mobile app revenue opportunity is rapidly expanding due to gains in device adop7on and revenue per device
*In-‐app adver=sing across all app stores; app store revenue across iOS App Store and Google Play
© 2015 App Annie & IDC | Do Not Distribute
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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
© 2015 App Annie & IDC | Do Not Distribute
6 • In addition to generating revenue, driving corporate branding and
marketing initiatives is an objective for many app publishers
Apps can achieve a variety of goals for publishers, though earning revenue is the clear favorite
Source: App Annie Survey
March 2015 (n = 2962)
What are your company’s goals for its apps (select all that apply)?
0% 10% 20% 30% 40% 50% 60% 70%
Drive shoppers to your company’s brick-‐and-‐mortar stores (e.g., Walgreens)
Generate mobile transac=ons that are processed outside of an app store (e.g., eBay, Uber)
Provide your company’s online services and func=onality via mobile (e.g., Neflix, Bank of America)
Drive branding and marke=ng ini=a=ves for your company
Earn revenue through in-‐app adver=sing
Earn revenue within the app store (e.g., in-‐app purchases, paid downloads)
Percent of Respondents
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