downloads up +10%, market down +5%
After Data.ai, it’s AppsFlyer’s turn to publish its research into the mobile app market. Despite a tough economic environment with inflation affecting marketing budgets and the long-term effects of Apple’s privacy innovations, total installs in 2022 were still up 10% year-over-year.
“Covid-related growth has not been preserved: the rise of digital in the midst of the pandemic in 2020 (35% year-over-year growth in 2020) was an exception and did not become the new post-covid normal like many others. had guessed. This “post-covid rebound” was evident in the results of Android gaming apps, which registered a 52% increase in 2020. Android installs increased by 9% compared to the previous year: this growth is mainly geographically measured and impressive. 18% growth in the largest Android market: India. On the other hand, the effects of the war in Ukraine are felt, as the total number of Android devices in Russia decreased by 18% compared to last year. That 9% growth could have been higher if non-game mobile app budgets hadn’t been cut following the economic downturn. iOS installs up 16% after bottoming out last year with ATT: Apple’s ATT (App Tracking Transparency) has had a major impact on non-gaming apps. On the one hand, this could be because many digital products and experiences, such as health and fitness apps, photo editing apps, apps for kids, or lifestyle apps, are only available on iOS. Second, the performance of non-gaming applications is not so dependent on marketing strategy. Thus, when it comes to total installations, the impact of ATT has not been as pronounced as in the gaming sector. While mobile gaming has yet to recover from the 2021 ATT shock, 2022 saw growth (-10% to +4%). In conclusion, the iOS sector is still facing the post-ATT reality. Appsflyer explains.
Although download volumes increased, ad spending fell 5% year-on-year, but the slowdown was more pronounced at the end of the year, falling 20% year-on-year.
“Overall, we’re seeing a 5% decrease in cost per new user acquisition (UA) compared to last year. But if we really look at the last three months of the year when the economic recession took place, we will see a significant difference between 2022 and 2022 – with an 8% increase in the budget between the beginning and the end of the year. saw a 20% drop. With a slight 3% increase in total ad spend dedicated to acquiring new users (UA), an 8% reduction in CPI (cost per install) and a 12% increase in NOI (inorganic installs), Android games showed their effectiveness. ). Marketers acquired more users for the same budget and reinvested those resources to continue expanding. Mobile games on iOS “received” a 33% increase in CPI (cost per install) with budgets increasing by 23%. Unfortunately, this still resulted in a 9% drop in NOI. Non-gaming Android apps saw a bigger drop in CPI (20%), resulting in a 22% drop in budgets. Marketers again prioritized efficiency and used the savings to offset a modest 2% drop in NOIs (inorganic installs).
While the non-gaming iOS segment saw a modest 2% decline in the cost of installs, spending fell 23% as marketers shifted from paid user acquisition to other forms of activation and engagement. ” says Appsflyer.
Overall, Appsflyer estimates that global app install budgets will reach a total of $80 billion in 2022, including China. This figure represents a slight decrease in 2021 compared to 2020, after a 40% increase in 2021. This is a completely new model after covid, while the economic recession has had a strong impact on the sector in the last months of the year. In terms of sectors, the first category is occupied by gaming with 27 billion dollars, finance with 8.5 billion dollars, gambling with 5.2 billion dollars and finally shopping (excluding China) with 3.4 billion dollars.
AppsFlyer’s research analyzed over 20,000 apps and 40 billion installs. Among other key trends, Appsflyer believes that the ATT approval rate is now 26% (+10%) globally, and that non-gaming apps are seeing a 20% increase in revenue from in-app purchases (IAP), while gaming is declining. 16%.