Mobile Advertising Costs Are Reduced
- 2022-12-15 10:25
Mobile advertising has been a major force in the digital economy for years and is predicted to reach $362 billion in 2023. This figure is a 7.5% decline from the previous year due to the economic headwinds that have been felt throughout the industry.
Despite this, there is hope that the Winter Olympics and FIFA World Cup can help to sustain higher spending in the mobile ad space. Short video apps are also expected to be a major driver of ad spending in 2022.
Consumer spending in mobile games is also predicted to decline by 5% in 2022, following the economic squeeze. This is due to changes in privacy by Apple and Google, which have had an impact on in-app purchases.
Nevertheless, eleven out of fourteen titles are expected to surpass $2 billion in App Store consumer spending, with the majority of them being games. Video streaming and short video apps such as HBO Max, iQIYI, Disney+, Netflix, Youtube, and TikTok are all predicted to join the $3 billion consumer spending club.
On Black Friday 2022, mobile shopping hit an all-time high, accounting for almost 50% of all sales among the top 100 internet retailers in the US.
This figure was even higher for smaller merchants and direct-to-consumer brands, with Shopify reporting that mobile accounted for 73% of global sales.
Travel, live events, and sports are all predicted to capture more consumer attention and screen time in the coming year. This is likely to have a positive effect on the mobile ad industry, as these sectors are expected to see higher spending in 2022.