Adjust and AppLovin Reveal Ways AI-Powered Personalization Will Drive Next Mobile App Growth Phase

Rhea-AI Summary

Adjust and AppLovin release annual Mobile App Trends Report highlighting growth in app installs and the importance of AI-driven personalization in the industry.

Insights

Market Research Analyst

The report indicating a 4% global growth in app installs in 2023 is a significant figure, considering the overall downward trend observed in 2022. This suggests a resilient and potentially expanding mobile app market. The growth is likely driven by the increasing prevalence of smartphones and mobile internet access, particularly in emerging markets. Additionally, the report's emphasis on personalization and AI-driven marketing strategies could signal a shift in how mobile apps engage users, with potential implications for user acquisition costs and lifetime value metrics.

From a market research perspective, the adoption of predictive analytics in marketing strategies underscores a broader industry trend towards data-driven decision-making. Companies that effectively leverage these tools can gain a competitive edge through optimized budget allocation and campaign performance. This could lead to increased market share and revenue for those who adopt such technologies early and effectively.

Data Privacy Expert

The mention of App Tracking Transparency (ATT) opt-in rates climbing suggests that users are becoming more comfortable with data sharing when proper communication and transparency are provided. This has significant implications for businesses that rely on user data to personalize experiences and target advertisements. Companies must navigate the balance between leveraging user data for personalization and respecting privacy preferences. Those that do this successfully could see improved user engagement and retention without compromising trust.

For stakeholders, this trend underscores the importance of investing in privacy-centric marketing strategies. It also suggests that regulatory compliance can be a competitive advantage in an environment where users are increasingly privacy-conscious. The gradual increase in ATT opt-in rates could also indicate a normalization of data sharing practices, provided they are done transparently and with user consent, which can have long-term implications for the mobile app industry's approach to data privacy and personalization.

AI Technology Expert

The application of AI in mobile app personalization, as highlighted by the report, is a transformative development in the industry. AI's ability to analyze user data and tailor experiences can dramatically improve user engagement and retention, particularly in gaming and e-commerce. The use of AI to segment users and customize game progression, for example, can result in a more engaging user experience, potentially leading to higher revenue per user.

However, the implementation of AI must be done with careful consideration of its accuracy, biases and the overall user experience. Poorly implemented AI can lead to user frustration and churn. Therefore, companies should invest in robust AI systems and talent to ensure that personalization enhances user satisfaction. The success of AI-driven personalization strategies could also drive further investment in AI across other industry verticals, signaling a broader impact on the technology landscape.

New report co-authored by Adjust and AppLovin brings robust set of data, benchmarks and actionable advice to the mobile apps industry

SAN FRANCISCO, Feb. 20, 2024 /PRNewswire/ -- Leading measurement and analytics company Adjust, today released its annual Mobile App Trends Report with global app data along with expert tips from AppLovin, on trends and patterns – namely personalization powered by AI –  driving the evolution of the industry. The report finds that despite the downward trend throughout 2022, app installs grew 4% globally in 2023, demonstrating mobile's ability to deliver significant returns is as strong as ever and full of untapped opportunities.

Incorporating predictive analytics into cross-channel marketing provides the insights needed for fast, smart decisions.

"Successful mobile app marketing and campaign optimization doesn't require a crystal ball," said Simon "Bobby" Dussart, CEO of Adjust. "By incorporating predictive analytics into cross-device and cross-channel marketing efforts, mobile marketers and developers can unlock the data and insights needed to make fast, smart decisions on budget allocation and to scale confidently."

Personalization, privacy and the role of AI 
The gaming hybrid casual genre has demonstrated that strategically incorporating personalization into a game's UX can dramatically boost retention rates and revenue. Verticals like e-commerce and finance should adopt a similarly data-centric and AI-driven approach to customize their in-app experiences.

"The best way for gaming developers to increase long-term retention is to make their game or app feel like it's designed especially for their players," noted Daniel Tchernahovsky, VP of International Business Development at AppLovin. "AI enables developers to segment users and customize game progression so it feels as if the game's level of difficulty has been uniquely calibrated to a user."

Notably, App Tracking Transparency (ATT) opt-in rates have continued to gradually climb as communication and transparency about the value of data sharing has improved. Industry wide, app user consent rates increased from 29% to 32% in 2023. Gaming had the highest rate globally (39%), and fintech and e-commerce had the biggest rate jumps (7 percentage points each).

A mobile app strategy that outpaces the competition 
Mobile App Trends 2024 is based on a mix of Adjust's top 5,000 apps and the total dataset of all apps tracked by Adjust, providing marketers and developers with essential information to build and execute a strategy that outpaces the competition.

Additional key takeaways from the report include:

• Mobile payments driving fintech app adoption, with payment apps comprising approximately one-third of overall fintech app sessions in 2023. In-app revenue for fintech apps surged 118% year-over-year, and app installs and sessions grew an impressive 42% and 24%, respectively.
• Gaming app installs bounced back in Q4 2023, up 7% globally. The largest shares of gaming app installs were action (18%), hyper-casual (14%) and puzzle (14%).
• Mcommerce is soaring with shopping app installs growing by 56% and overall global e-commerce app installs up to 43% in 2023. North America saw the largest growth in e-commerce app installs (98%).

The report also explores how CTV and new channels like PC and console will become the next frontier for advertisers. "Acquiring high-value users begins with an effective channel acquisition strategy," added Andrey Kazakov, VP of Demand, Non-Gaming at AppLovin. "Marketers must understand the channels compatible with their specific app's audience and goals, and determine how much they need to spend to hit a critical mass of experiments that can drive more efficient performance."

For additional findings and best practices, download the full report here.

About Adjust
Adjust, an AppLovin (NASDAQ: APP) company, is trusted by marketers around the world to measure and grow their apps across platforms, from mobile to CTV and beyond. Adjust works with companies at every stage of the app marketing journey, from fast-growing digital brands to brick-and-mortar companies launching their first apps. Adjust's powerful measurement and analytics provide visibility, insights and essential tools that drive better results.

Media Contact
Adjust
Joshua Grandy
pr@adjust.com

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SOURCE Adjust

FAQ

What is the focus of the Adjust and AppLovin Mobile App Trends Report?

The report highlights trends and patterns in the mobile apps industry, emphasizing the importance of AI-driven personalization.

What growth was observed in app installs globally in 2023 according to the report?

App installs grew by 4% globally in 2023 despite a downward trend in 2022.

How can mobile marketers and developers benefit from incorporating predictive analytics into their marketing efforts?

It provides insights for fast, smart decisions on budget allocation and scaling confidently.

What role does AI play in enhancing user experience in gaming apps according to the report?

AI enables developers to segment users and customize game progression to enhance user experience.

What trend has been observed in App Tracking Transparency (ATT) opt-in rates according to the report?

ATT opt-in rates have gradually climbed, indicating increased communication and transparency.