The recent surge in consumer attention towards mobile apps has brought to light a significant imbalance in advertising spending patterns, according to a new research report by Moloco. Titled Performance Through Independence: Unlocking Incremental App Growth Beyond Google and Meta, the report provides insightful revelations about the concentration of mobile app marketing budgets.
While mobile apps witness increased engagement, with 88% of ad budgets still funnelled into Google and Meta, the landscape is shifting. The report urges advertisers to broaden their horizons and diversify their ad spending to tap into the vast network of apps available, potentially increasing their Return on Ad Spend (ROAS) by an impressive 214%.
"... the biggest returns we are seeing are happening outside big tech,” said Tom Shadbolt, Senior Insights Manager, Moloco. “The independent app ecosystem is quickly becoming the new engine for predictable and long-term performance. This research is a wake-up call for mobile app marketers.”
2024 witnessed a remarkable growth trajectory in mobile app revenue, with non-gaming app categories, such as entertainment, finance, and delivery, contributing significantly to a 25% rise in in-app purchases and subscription revenues, reaching a total of $70.5 billion. This pace of growth has paved the way for consumer mobile app revenues to potentially eclipse gaming revenues in the next couple of years.
Key Insights
- Massive Growth Opportunities: Mobile app advertisers who embrace diverse advertising strategies can realise substantial returns that reflect the changing user behaviours and preferences.
- Emerging Markets: With the UK, US, Germany, and Japan stabilising, there is substantial growth in app usage within emerging economies like South Africa, India, and the Philippines.
- Ad Shifts: Although social media platforms are seeing a decline in user attention, casual gaming, productivity, and generative AI apps are on the rise.
- Independent Reach: Boasting an audience as large as TikTok and Instagram combined, independent apps are proving to be critical for achieving widespread user engagement.
This research underscores a transformative opportunity, advising app marketers to diversify and strategically adjust their media mix to exploit untapped growth areas and align with contemporary user journeys.
This research draws on data from Moloco, Sensor Tower, and Singular, with all sources cited and all figures anonymised and aggregated. Results by category and market meet strict thresholds of over 30 apps and $50,000+ in ad spend or revenue. Covering January–December 2024, the report spans markets including Australia, Brazil, Canada, France, Germany, India, Indonesia, Japan, Mexico, South Korea, the UK, the US, and Vietnam. The dataset includes Moloco’s forecasts on global mobile user acquisition spend, Singular’s analysis of $5B ad spend across 2,000 apps (comparing major platforms vs. diversified spend), and Sensor Tower’s app and audience insights.
