Mobile App Advertising and Monetization Trends 2013-2018

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© 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

Transcript of Mobile App Advertising and Monetization Trends 2013-2018

Page 1: 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

Page 2: Mobile App Advertising and Monetization Trends 2013-2018

©  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.    

Page 3: Mobile App Advertising and Monetization Trends 2013-2018

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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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Page 4: Mobile App Advertising and Monetization Trends 2013-2018

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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  

Page 5: Mobile App Advertising and Monetization Trends 2013-2018

©  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

Page 6: Mobile App Advertising and Monetization Trends 2013-2018

©  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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