As 2022 draws to a close, many experts are trying to make predictions for 2023. Economic turmoil has resulted in a lot of upset balances in most industries, and it turns out that the mobile ad industry is no different with all things having been considered and taken into account. The FIFA World Cup along with the upcoming Winter Olympics might buoy ad spends in the next year, but in spite of the fact that this is the case a slowdown is still predicted.
With all of that having been said and now out of the way, it is important to note that the slowdown still doesn’t mean that the overall industry will decline. There will still be some growth that will bring the total value of mobile ad spends up to $362 billion, up from the $336 billion seen in 2022. Much of this growth will be a result on investments into short form video, spurred in no small part by TikTok as well as YouTube, as reported by DataAI.
Mobile ad spending has been seeing a declining growth rate over the past five years. After seeing a growth rate of 26.3% as recently as 2020, this rate of growth dropped to 22.9% in the subsequent year of 2021. 2022 saw a further decline, with growth rates hovering at around the 14% mark. This growth rate has now almost halved to just 7.5% for 2023, and it will be interesting to see if this trend continues which might result in the industry stagnating by 2024 or 2025.
Another drop is being seen in the world of consumer spending on gaming apps. It is predicted that consumer gaming spending on apps will decrease by 5% this year, coming up to $110 billion due to dire economic circumstances that are putting a real strain on consumer wallets. This goes against the recent trend that suggested a high level of resilience within this sector to economic headwinds. New privacy policies on the Apple App Store and the Google Play Store have likely played a role in the slowdown in revenues, and that might shift the delicate balance of the industry.
Still, gaming apps continue to dominate app store charts across the board. 14 app titles managed to surpass $2 billion in annual revenue from the App Store, and 11 of them were gaming apps. Meanwhile, streaming apps are leading the charge in terms of consumer spending. Apps like Netflix, TikTok, YouTube and Disney+ all managed to cross the $3 billion dollar mark. New entries like HBO Max and iQIYI suggest a robust future for the industry, and indicates that streaming might continue to capture audience attention for the foreseeable future.
Meanwhile, the world of mobile shopping has been hitting unprecedented highs. Despite a muted start to the Black Friday shopping season, mobile shopping managed to bolster the performance of this critical juncture. Physical shopping didn’t see much growth, but 50% of Black Friday sales came from mobile shoppers. Smaller merchants and businesses were even more dependent on mobile shopping, with 73% of their sales coming from that source. This reveals that mobile shopping will be a mainstay for the holiday shopping season moving forward.
Read next: Report Unravels The Biggest Trends Of Brands On Instagram And TikTok
With all of that having been said and now out of the way, it is important to note that the slowdown still doesn’t mean that the overall industry will decline. There will still be some growth that will bring the total value of mobile ad spends up to $362 billion, up from the $336 billion seen in 2022. Much of this growth will be a result on investments into short form video, spurred in no small part by TikTok as well as YouTube, as reported by DataAI.
Mobile ad spending has been seeing a declining growth rate over the past five years. After seeing a growth rate of 26.3% as recently as 2020, this rate of growth dropped to 22.9% in the subsequent year of 2021. 2022 saw a further decline, with growth rates hovering at around the 14% mark. This growth rate has now almost halved to just 7.5% for 2023, and it will be interesting to see if this trend continues which might result in the industry stagnating by 2024 or 2025.
Another drop is being seen in the world of consumer spending on gaming apps. It is predicted that consumer gaming spending on apps will decrease by 5% this year, coming up to $110 billion due to dire economic circumstances that are putting a real strain on consumer wallets. This goes against the recent trend that suggested a high level of resilience within this sector to economic headwinds. New privacy policies on the Apple App Store and the Google Play Store have likely played a role in the slowdown in revenues, and that might shift the delicate balance of the industry.
Still, gaming apps continue to dominate app store charts across the board. 14 app titles managed to surpass $2 billion in annual revenue from the App Store, and 11 of them were gaming apps. Meanwhile, streaming apps are leading the charge in terms of consumer spending. Apps like Netflix, TikTok, YouTube and Disney+ all managed to cross the $3 billion dollar mark. New entries like HBO Max and iQIYI suggest a robust future for the industry, and indicates that streaming might continue to capture audience attention for the foreseeable future.
Meanwhile, the world of mobile shopping has been hitting unprecedented highs. Despite a muted start to the Black Friday shopping season, mobile shopping managed to bolster the performance of this critical juncture. Physical shopping didn’t see much growth, but 50% of Black Friday sales came from mobile shoppers. Smaller merchants and businesses were even more dependent on mobile shopping, with 73% of their sales coming from that source. This reveals that mobile shopping will be a mainstay for the holiday shopping season moving forward.
Read next: Report Unravels The Biggest Trends Of Brands On Instagram And TikTok
