Mobile ad spending will hit $362bn in 2023, up from $155bn in 2018. The prediction was given in Data.ai’s State of Mobile 2023 report which includes numerous insights into the overall mobile gaming industry.
The report shows a rapid growth spike in 2020, coinciding with the Covid-19 pandemic that also boosted the mobile gaming industry considerably. Unsurprisingly, this rise continued into 2021 and 2022 as mobile ad spend continues to grow.
However, according to their report, YoY growth appears to be slowing, with a forecast of only 7.5%. This is in stark contrast to a high of 26.3% in 2020. Mobile ad spend therefore could be heading for a peak, albeit slowly. Data.ai also suggests social media is set to decline in terms of ad revenue, with short-form video apps such as TikTok instead leading the way in terms of advertising.
Congruent with trends
Data.ai’s prediction that short video apps will lead the way certainly seems to be the way that the industry is swinging. For example, Youtube only today announced that they would begin revenue-sharing with creators that utilised their Youtube ‘Shorts’ system. These shorter videos are, as many have observed, likely meant to compete with social media mega-hit TikTok. This is unsurprising given that more ‘traditional’ social media platforms such as Facebook are facing difficulties in maintaining their advertising revenue in the face of regulator scrutiny.
It’s not all good news for the mobile world, at least not for mobile gaming. Whilst ad spending remains high, consumer spending looks set to slump in line with lower disposable income. Apps however remain strong, so it seems this does not necessarily indicate a crash. But it’s in line with predictions of a difficult period ahead due to the looming global recession.
Our 2022 Mavens piece includes numerous insights from industry professionals that offer a greater indication of the feelings ‘on the ground’, with many admitting that it had been a challenging 2022. Whether or not this then continues in line with lowering user but higher ad spend could colour the year going into 2023.
