App install ad spend takes a hit amid economic challenges

AppsFlyer, a prominent mobile attribution and marketing analytics platform, has recently unveiled its 16th Performance Index. It offers a comprehensive examination of top media sources in mobile advertising across 11 regions and 22 app categories. Covering the period from April to September 2023, the index provides valuable insights into the intricate dynamics of the mobile app media space during a time marked by the economic downturn.

One of the standout revelations from the report is the substantial impact of the economic challenges on the mobile app media landscape, with almost all major media sources experiencing declines. The third quarter of 2023 witnessed a notable 20% reduction in app install ad spend budgets compared to the same period in the previous year, signaling a cautious approach among advertisers.

In the iOS media market, Apple Search Ads (ASA) emerged as the undisputed leader, securing the top position across gaming and non-gaming categories globally. Despite facing challenges post-iOS 14.5, Meta ads showcased resilience, claiming the second spot in power and volume rankings. This adaptability was particularly evident in non-gaming apps on SKAdNetwork, Apple’s privacy-centric attribution interface.

Shifting the focus to the Android realm, Google Ads maintained its dominance in both gaming and non-gaming categories, further extending its lead over Unity Ads. Meta ads secured the fourth position in the global power ranking, excelling in casino and mid-core games. Notably, Meta ads surpassed Google in the shopping category for remarketing, showcasing its strength in diverse advertising formats.

The report is a valuable resource for marketers, offering insights into evolving trends in app install ad spend and media source performance. By navigating the complex mobile advertising landscape, marketers can make informed decisions to optimize their strategies in alignment with the dynamic market conditions.

Similarly, a recent report shed light that app downloads decline as super-apps rise in 2023.