AppLovin Finds Customers Acquired Through In-App Ads More Engaged, Loyal Than Those Acquired By Social Media

Rhea-AI Summary

AppLovin (NASDAQ: APP) has released its Consumer Mobile Trends 2024 report, highlighting the effectiveness of in-app advertising for mobile apps and direct-to-consumer (DTC) brands. The report reveals that customers acquired through in-app ads are more engaged and loyal than those from other channels, particularly social media.

Key findings include:

• Fintech customers acquired via in-app ads open their apps 9 times per month on average, compared to 5.8 times for social media-acquired customers
• Nearly 50% of online transactions will occur on mobile devices this year, expected to reach 62% by the end of 2025
• Mobile in-app advertising can reach over 5 billion global smartphone users daily
• In-app ads offer enhanced brand safety due to app store guidelines and 100% share-of-voice

The report provides a framework for starting and scaling in-app advertising, emphasizing the importance of meeting customers where they are in the mobile environment.

Positive

• In-app ad customers show higher engagement, opening apps 9 times per month vs 5.8 times for social media-acquired customers
• Mobile transactions expected to reach 62% of online transactions by end of 2025
• In-app advertising can reach over 5 billion global smartphone users daily
• Enhanced brand safety due to app store guidelines and 100% share-of-voice in mobile apps

Negative

• None.

Insights

Market Research Analyst

The AppLovin Consumer Mobile Trends 2024 report highlights a significant shift in consumer behavior and marketing strategies. The key takeaway is that customers acquired through in-app ads show higher engagement and loyalty compared to those from social media. This is particularly evident in the fintech sector, where in-app ad customers open apps 55% more frequently than social media-acquired customers.

The report underscores the growing importance of mobile in-app advertising, with projections indicating that nearly 62% of online transactions will occur on mobile devices by the end of 2025. This trend presents a substantial opportunity for direct-to-consumer (DTC) brands to expand their reach and drive growth.

For AppLovin (NASDAQ: APP), this report serves as a strong marketing tool to promote its advertising platform. By emphasizing the effectiveness of in-app advertising, AppLovin is positioning itself as a key player in the evolving digital marketing landscape. However, the actual impact on AppLovin's financials will depend on how successfully they can convert these insights into increased adoption of their platform by advertisers.

Tech Expert

AppLovin's report highlights the technological advantages of mobile in-app advertising. The platform's ability to leverage AI for targeting and optimization, as mentioned by OTTO's Growth Expert, is a significant selling point. This AI-driven approach allows for more efficient user acquisition and higher-value purchases.

The report also touches on an important aspect of mobile advertising: brand safety. With app store reviews and guidelines acting as a filter and in-app ads maintaining 100% share-of-voice, advertisers can have more confidence in where their ads appear. This addresses a major concern in digital advertising and could drive more brands towards in-app advertising.

From a tech perspective, AppLovin's platform seems well-positioned to capitalize on these trends. However, the company will need to continue innovating to stay ahead in the competitive adtech space, particularly in AI and machine learning capabilities for ad targeting and optimization.

AppLovin’s Consumer Mobile Trends 2024 report details the essentials of marketing channel diversification; provides the framework for starting and scaling in-app advertising

PALO ALTO, Calif.--(BUSINESS WIRE)-- AppLovin (NASDAQ: APP), a leading marketing platform, today released Consumer Mobile Trends 2024, a new report explaining how consumer mobile apps and direct-to-consumer (DTC) brands can leverage mobile in-app advertising to deliver new growth and expand the reach and impact of their campaigns.

Consumer Mobile Trends 2024 (Image source: AppLovin)

The report suggests that customers acquired through in-app ads are more engaged and loyal than from other channels. For instance, in the fintech sector, in-app ad customers open their apps 9 times per month on average, compared to 5.8 times for social media-acquired customers¹. This increased engagement leads to more repeat transactions, drives higher revenue and allows marketers to reinvest back in their business.

“The shift in consumer behavior toward mobile devices has driven the need for a corresponding shift in marketing toward mobile in-app advertising,” Andrey Kazakov, VP of Demand at AppLovin. “Simply put, brands need to meet their customers where they are. The mobile environment is purpose-built to drive performance, making it a natural fit for DTC brands to engage with customers and drive meaningful engagement and retention.”

Nearly 50% of online transactions will occur on mobile devices this year and are expected to reach 62% by the end of 2025. AppLovin’s Consumer Mobile Trends 2024 report provides a framework for starting and scaling in-app advertising, and dives into:

• Shifts in consumer behavior impacting mobile spending. As reliance on mobile devices increases, consumer spending has reached unprecedented levels.
• How mobile in-app advertising delivers untapped scale. Consumer brands can reach over 5 billion global smartphone users every day with mobile in-app advertising -- a scale that rivals any other marketing channel.
• Brand safety as a built-in function of mobile advertising. Mobile apps are subject to app store reviews and guidelines, and in-app ads maintain 100% share-of-voice, thus unlikely to appear next to risky content.

“We’re able to launch, monitor, and optimize our mobile in-app campaigns with minimal effort,” said Marian Bucher, Growth Expert at online shopping platform OTTO. “AI technology excels at pinpointing the right users to grow the volume and average order value of purchases.”

To view the full Consumer Mobile Trends 2024 report, please visit here.

About AppLovin

AppLovin makes technologies that help businesses of every size connect to their ideal customers. The company provides end-to-end software and AI solutions for businesses to reach, monetize and grow their global audiences. For more information about AppLovin, visit: www.applovin.com.

¹Adjust Data, 1H 2024

Source: AppLovin Corp.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240925309117/en/

Press

Joshua Grandy

press@applovin.com

Source: AppLovin Corp.

FAQ

What are the key findings of AppLovin's Consumer Mobile Trends 2024 report?

The report reveals that customers acquired through in-app ads are more engaged and loyal than those from other channels. It highlights that in-app ad customers in the fintech sector open their apps 9 times per month on average, compared to 5.8 times for social media-acquired customers. The report also predicts that 62% of online transactions will occur on mobile devices by the end of 2025.

How does in-app advertising compare to social media advertising according to AppLovin's report?

According to the report, in-app advertising leads to more engaged and loyal customers compared to social media advertising. For example, in the fintech sector, customers acquired through in-app ads open their apps 9 times per month on average, while those acquired through social media open their apps 5.8 times per month.

What is the potential reach of mobile in-app advertising as stated in AppLovin's report?

AppLovin's report states that mobile in-app advertising can reach over 5 billion global smartphone users every day, rivaling the scale of any other marketing channel.

How does AppLovin (APP) address brand safety concerns in mobile advertising?

AppLovin's report highlights that mobile apps are subject to app store reviews and guidelines, and in-app ads maintain 100% share-of-voice. This makes it unlikely for ads to appear next to risky content, thus providing enhanced brand safety as a built-in function of mobile advertising.