2022 App Marketing Industry Updates
It’s time to look back at the last quarter of app marketing data and statistics. With the industry always changing and measuring the numbers, you can identify trends that could impact your UA (user acquisition) strategies.
Let’s look at how the market played out in Q3 2022 and the key takeaways.
Global App Revenue Declined by 5%
The big headline for Q3 2022 is the decline in revenue. Compared to the quarter in 2021, there was a 5% drop to $31.6 billion. Of the two app stores, Google Play had the larger share of decline at 9.6% versus Apple at 2.3%.
The reason for the decrease appears to correlate directly with fewer in-app purchases, subscriptions, and premium downloads. Some users may be pulling back discretionary spending due to economic forces. Additionally, this continues the trend of “normalization” of app revenues after the pandemic.
- Consumers are spending less, so it’s time to turn on the promotions and engagement engines to get users to spend and stay. Consider launching some mid-level CPE (cost per engagement) campaigns to re-engage users that aren’t spending as much. If you personalize the offer, you could see great traction.
- Leverage offerwalls to drive more subscriptions with attractive promos. Value messaging on why the app is a necessity for its users could resonate with fickle users.
App Store Increases App Downloads, Google Play Experiences Slight Downturn
For Q3 2022, App Store installs rose by 3.8%, while Google Play had a 2.2% decrease. In Q2 2022, the App Store and Google Play experienced falling download numbers.
We can infer from the bounce back from the App Store is a slight lift in non-gaming app downloads. TikTok was the number one download in the App Store, so its popularity continues. In fact, most of the top apps were social media related. Others in the top 10 were Spotify (music subscription) and CapCut, an all-in-one video editing software.
- Consumers are still in love with social media, with TikTok leading the way. As an app not in this category, the insight is to use TikTok to drive downloads by capitalizing on influencer marketing.
- Video and photo editing apps have an opportunity to gain new users as trends in do-it-yourself video creation continue. If you’re in this category, it’s a good time to do a burst campaign to drive the visibility of your app as an alternative to CapCut.
Mobile Game Revenue Plummets
Mobile gaming revenue has been on the decline. The mobile gamer demographic is evolving, impacting the games they prefer and if they make in-app purchases (IAPs). The App Store’s revenues declined by 9.8%, and Google Play saw a 16.9% decrease. Those are significant numbers and could be worrisome to gaming app marketers. However, gaming downloads were flat for the quarter.
With these two data points, we can conclude that the segment isn’t losing players. Rather, they are simply not spending.
- Mobile gaming revenue is on a downward trend, but not downloads. Thus, work to gain the download and engagement with CPI/CPE hybrid campaigns with copy like “Download the Game and Play Your First Round.” It would need to be specific to your game and include action verbs around getting the app and playing.
- Re-engaging long-time players to spend is a good option to boost revenue. You can offer them “rewards” via an offerwall or other CPE models. Incentivizing them to make IAPs with promos could turn the tide.
Revamping Mobile App Marketing to Meet the Market at AdAction
In the review of Q3 2022 app marketing data, you may be facing some challenges. If so, it’s time to revamp your strategies as you head into 2023. One of the best decisions you can make is to partner with AdAction. We have the expertise, campaign model flexibility, access to unique audiences, and more to drive more installs and revenue. Talk to our experts today to get started.
You can also download our complete guide of solutions for mobile app marketers!