The Covid-19 pandemic, combined with the tragedy of the Russian-Ukrainian war, has hit the app’s revenue collection hard. The economic instability that began after these two events has shaken the global economy to its core.
Both of these events were apocalyptic for the global economy, and the app market took a severe hit. First was app revenue, but now so is in-app advertising.
In-app ads are very annoying for many users, but they are a huge revenue generator for apps, whether they are giants or small startups. In-app advertising is important. As new data reveals, the amount of revenue generated by in-app advertising will increase by about 6% this year, bringing the total to $220.8 billion. Compared to last year, it is only one-fifth of last year’s growth. On top of this, revenue from in-app purchases also suffered losses, with him up only 10% from the 23% increase seen in 2021, reaching $205 billion.
When it comes to app genres, mobile games easily take the top spot, with revenue up 7% this year. This was surprising, as the genre’s users dropped by his 105 million over the past year. However, this 7% growth for him seems paltry compared to his 25% increase the genre has experienced in 2021. Social networking apps are in second place, expected to grow by 9%, reaching $43.4 billion in total revenue this year. However, the genre has suffered a 19% loss this year, having risen 26% compared to last year. Honestly, the genre doesn’t look good because so many people are quitting social media. You don’t pay attention to the ads you see.
Overall, the expected total growth in 2022 is 8%, according to data collected by Statista. Yes, you are right. Expectations are not high as 2022 is coming to a close, with the app market growing by just 8% this year as a whole, according to Statista. This is the lowest increase in six years across the market.
H/T: Business of apps / Statista.
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