In this edition of Mobile Monday, we are taking at how video advertising is driving growth according to a new IAB report as well as the implications of a new app store monetization study released by Sensor Tower.
IAB Reports Mobile Video Advertising Growth
As users spend an increasing amount of time on their phones, so advertisers are flocking to where consumer attention lives. According to a new report released by the IAB, mobile advertising is driving nearly all digital advertising growth, and mobile video is the fastest growing format. For instance, mobile video advertising spend more than doubled in the UK last year, a rate of growth that was more than social and search combined.
What’s driving this exceptional growth? According to the study, 40% of consumers who watch videos on their mobile devices today did not do so a year ago. As an increasing number of users consume more rich content on their phones, so it stands to reason that more video ads supporting that content would also be consumed.
Of course, there’s another type of mobile video that’s captivating user attention at an increasing rate: games.
Mobile Game Growth Dominates App Store
A new report released by Sensor Tower today revealed that mobile games are continuing to grow at an impressive rate. Specifically, Q1 2017 revenue for mobile games grew 52% over Q1 2017 numbers. Thanks to this growth, games accounted for 80% of all revenue on the Apple App Store in Q1, and over 91% of revenue on the Google Play Store.
What’s also interesting is that this revenue growth was driven by a 15% increase in install volume over last year. Thus, while mobile consumers are indeed installing more apps than ever before, the rate at which they are being monetized is growing even faster. Simply put, mobile game publishers are acquiring more users and netting more revenue per user, a testament to both the quality of these apps and their users.
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