Mobile’s Reach, Role In Advertising To Continue Growing In 2020
Mobile is slated to have another good year in 2020 as smartphones and their universe of applications and services continues to be a firmly embedded part of modern life. The State of Mobile 2020 report from mobile data and analytics company App Annie forecasts mobile spending to exceed $380 billion this year.
App Annie reports that mobile-focused companies, including Uber and Alibaba, had a combined IPO valuation of $544 billion, 6.5-times higher than companies without a mobile focus. Consumers averaged three hours and 40 minutes on mobile in 2019, up 35 percent since 2017, and downloaded 204 billion apps.
“For brands and publishers worldwide, mobile is fueling digital transformation,” says Theodore Krantz, chief executive officer of App Annie. “We uniquely surface both market data and critical advertising insights to optimize monetization and help our customers thrive on mobile.”
This year should also be a significant one for mobile advertising, as brands continue to embrace the unprecedented reach and value of mobile, bolstering the success of Snap, Facebook, Google, Twitter and TikTok. App Annie projects that advertisers will pour more than $240 billion into ad spend in 2020—up 26 percent from 2019. Generation Z Is also becoming an increasingly strategic segment. The demographic is highly engaged with apps as they have 60 percent more sessions per user in the most popular apps when compared to older generations.
“Snapchat continues to double down on mobile experiences that help real friends communicate visually. As our audience has expanded, so have our app’s capabilities,” says Kathleen Gambarelli, group product marketing manager for performance at Snapchat. “We continue to develop powerful advertising technology that enables brands to efficiently engage with and convert our valuable Gen Z and Millennial audiences. As a product marketer, my goal is to verify product-market fit and grow adoption of effective solutions for our customers. App Annie and its Intelligence platform have been instrumental throughout this process, from initial research all the way to launch."
Subscriptions are also doing well in mobile, contributing to 95 percent of spending. App Annie notes that three out of four top non-gaming apps monetize via subscriptions, with video and dating categories propelling app store spending as adoption of Tinder, Tencent Video, iQIYI, and YouTube climbs. Mobile gaming is also increasing its share. Global spending on mobile games reached 56 percent of all game software in 2019. Spending on mobile games across all app stores is 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.
The video streaming wars are also heating up on mobile. Nearly 25 percent of Netflix’s iPhone users also used Disney+ in fourth quarter 2019, the highest overlap of users among top video streaming apps in the U.S. App Annie highlights that this demonstrates consumers will pay for multiple services.