Mobile devices connect over 3.5 billion people around the world digitally and the other half of the global population is gradually becoming a part of this community as mobile users in many developing countries like China, India, Indonesia, even Africa are significantly increasing. The number of mobile app downloads is expected to increase by 21% in 2022 and as a result, app revenue will increase as well.
AppsFlyer recently released a forecast indicating that global app install ad spend expects to grow from $57.8 billion in 2019 to $118 billion in 2022. The more competitive the mobile app market has become, the more marketers will invest in budgets to attract users for app installs. Check out the projection highlights across regions below.
Despite slowing down, global growth will remain significant until 2022. Performance advertising spend is expected to grow 27% year-over-year. This will occur because marketers are spending more in mobile platforms and apps looking to expand audiences by using ads for user acquisition.
APAC will take a major share of the global app install ad spend budget through 2022 at an average of 27% YOY, mainly by China.
- China: The Chinese audience will acquire an additional 100 million mobile users by 2022, resulting in 900 million. Despite the limitation of Android operation in China, a conservative estimate of China app install ad spend would still reach over $22 billion in 2022, a 47% increase in three years.
- India: Although India is also expecting an additional 100 million mobile users by 2022, app install ad spend will take only 4% of the overall APAC spend of $30 billion due to the extremely low cost of media in the country.
- Indonesia: Indonesia will see a similar trend to India. The country will add 20 million mobile users from 2019 to 2022, a 19% increase. However, app install spend would be around 2.7% of the overall APAC spend.
- Japan: The second largest contributor in app install ad spend in APAC reached $2.7 billion in 2019. Japan is expected to account for 9% of APAC spend.
The region is already a mature market so the mobile users will only grow 5% by 2022. Despite this small growth, the high lifetime value of the average users and the extensive scale and high cost of media will definitely be attractive to app marketers and drive the app install ad spend in NA to $27 billion by 2022, 25% YoY. The market’s size and the high cost of media makes North America the region with the second-highest app install spend worldwide.
Europe, Middle East, Africa
The region is very fragmented but full of opportunities. While the growth rate in Europe is only at 6%, the Africa and the Middle East and North Africa regions are expected to have at least 60 million additional mobile users by 2022, a 20% increase. However, due to the low cost of media, the app install ad spend could be relatively low. Meanwhile, similar to North America, Western Europe, the United Kingdom, and Germany will drive the total spend upwards.
The region is experiencing hyper-growth as smartphone adoption has almost doubled since 2014. and Brazil accounts for more than 50% of app install ad spend due to economic growth and its sizable population. Latin America’s app install spend is expected to grow at 30% YOY through 2022.
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