Report: $240bn mobile ad spend in 2020

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App Annie, the mobile data and analytics company helping brands and publishers win on mobile, has released The State of Mobile 2020 report. This annual appraisal provides insight into mobile’s expansive impact across industries and the global economy, highlighting publishers and brands that are outperforming their peers.

Key findings in this report:

o   Mobile Creates Company Value: Mobile-focused companies, including Uber and Alibaba, had a combined IPO valuation of $544 billion, 6.5x higher than companies without a mobile focus. Consumers averaged 3 hours and 40 minutes on mobile in 2019, up 35 per cent since 2017, and downloaded 204 billion apps.

o   Massive Year for Mobile Advertising: Brands continue to embrace the unprecedented reach and value of mobile, bolstering the success of Snap, Facebook, Google, Twitter, and TikTok. Advertisers will pour more than $240 billion into ad spend in 2020 – up 26 per cent from 2019.

o   Subscriptions Contribute to 95 per cent of Spend: 3 out of 4 top non-gaming apps monetise via subscriptions, with video and dating categories propelling app store spend as adoption of Tinder, Tencent Video, iQIYI, and YouTube climbs.

o   Mobile Games Increase Share: Global spend on mobile games reached 56 per cent of all game software in 2019. Spend on mobile games across all app stores projected to top $100 billion in 2020. Tencent’s Honour of Kings, Sony’s Fate/Grand Order, and Activision Blizzard’s Candy Crush Saga are examples of games that are dominating on mobile.

o   Video Streaming Wars Heat Up: Nearly 25 per cent of Netflix’s iPhone users also used Disney+ in Q4 2019, the highest overlap of users among top video streaming apps in the US, demonstrating consumers pay for multiple services.

Furthermore, Gen Z is becoming an increasingly strategic segment to business. Mobile is Gen Z’s native language. This demographic is highly engaged with apps: they have 60 per cent more sessions per user in the most popular apps when compared to older generations.


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