The coronavirus pandemic and changes set to take effect in iOS 14 are the latest shocks to the app ecosystem. With people spending more time on smartphones—and more money while on them—app economics continue to evolve. With these changes, advertising options will evolve as well.
What effect has the pandemic had on app monetization?
The pandemic has resulted in reduced advertiser spending overall, leading to lower growth of in-app ad spending despite significantly higher numbers of ad placements. At the same time, it has increased and redistributed mobile time toward social media, video streaming, gaming, health and fitness, and news apps—and away from travel-related activities.
Have consumer preferences for different monetization strategies changed?
Consumers are more apt to sign up for subscriptions and accept hybrid models of monetization—a combination of in-app purchases and in-app advertising. Hybrid models make it more important for publishers and advertisers to design and deliver ads based on the type of user of an app.
How will iOS 14 change monetization calculations for developers?
The loss of data tracking across apps in iOS 14 will likely lower cost per thousand (CPM) pricing and make personalized advertising much more difficult. This in turn will make first-party data and immersive ad units more valuable.
WHAT’S IN THIS REPORT? This report looks at three major changes to the app economy and how advertisers should think about them.
KEY STAT: Although subscription mobile app installs have been up across most categories over the past year, only 2% of mobile games offer them.
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