In-App ads drive higher customer engagement than social media

AppLovin, a leading marketing platform, released its Consumer Mobile Trends 2024 report on September 25, 2024, revealing that customers acquired through in-app advertisements show higher engagement and loyalty compared to those acquired through social media channels. The report, released two days ago, provides insights into the growing importance of mobile in-app advertising for consumer mobile apps and direct-to-consumer (DTC) brands.

In-App Ads Outperform Social Media

According to the report, customers acquired through in-app advertisements demonstrate significantly higher engagement rates. In the fintech sector, for instance, customers acquired via in-app ads open their apps an average of 9 times per month. This figure stands in stark contrast to customers acquired through social media, who open their apps only 5.8 times per month on average.

Andrey Kazakov, VP of Demand at AppLovin, emphasized the importance of this shift: "The change in consumer behavior toward mobile devices has necessitated a corresponding shift in marketing toward mobile in-app advertising. 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."

Mobile transactions on the rise

The report highlights the growing significance of mobile transactions in the e-commerce landscape. Nearly 50% of online transactions are expected to occur on mobile devices in 2024, with projections indicating this figure will reach 62% by the end of 2025. This trend underscores the critical importance for brands to establish a strong presence in the mobile advertising space.

Scale and reach of mobile in-app advertising

AppLovin's report emphasizes the unparalleled scale offered by mobile in-app advertising. Consumer brands can potentially reach over 5 billion global smartphone users daily through this channel, rivaling the reach of any other marketing medium. This extensive reach provides brands with an opportunity to significantly expand their customer base and increase their market presence.

Brand safety in mobile advertising

The report addresses concerns about brand safety in digital advertising. Mobile apps are subject to rigorous app store reviews and guidelines, which helps ensure a safer environment for advertisers. Additionally, in-app ads maintain 100% share-of-voice, reducing the likelihood of appearing alongside potentially risky content.

Real-world success stories

The effectiveness of in-app advertising is demonstrated through case studies presented in the report. Marian Bucher, Growth Expert at online shopping platform OTTO, shared their experience: "We're able to launch, monitor, and optimize our mobile in-app campaigns with minimal effort. AI technology excels at pinpointing the right users to grow the volume and average order value of purchases."

Consumer mobile behavior insights

AppLovin's report provides valuable insights into consumer mobile behavior:

• On average, a person has more than 80 apps installed on their smartphone.
• Users typically engage with 30 apps every month.
• People spend approximately 4 hours of their waking time using mobile apps daily.

Mobile spending trends

The report also highlights significant trends in mobile spending across various sectors:

• By 2025, mobile payments are projected to account for 79% of all digital transactions, with the market expected to reach $607.9 billion by 2030.
• Banking app users are anticipated to exceed 3.6 billion in 2024.
• Global m-commerce sales are forecast to hit $2.5 trillion in 2024, representing 60% of total e-commerce sales.
• Health and fitness apps generated $4.45 billion in 2023, with 75% of that revenue driven by subscriptions.

Implications for marketers

The Consumer Mobile Trends 2024 report emphasizes the need for marketers to diversify their channel mix to include mobile in-app advertising. This approach allows brands to reach consumers in less competitive spaces compared to traditional channels like social media. The report suggests that incorporating mobile into a multi-channel strategy is straightforward and can deliver measurable results.

AppLovin's role in the mobile advertising ecosystem

As a leading marketing platform, AppLovin provides tools and technologies to help businesses connect with their ideal customers. The company offers end-to-end software and AI solutions for businesses to reach, monetize, and grow their global audiences. AppLovin's AppDiscovery platform, mentioned in the report, leverages AI-based advertising technology to automate campaign management and optimization.

Key takeaways

• Customers acquired through in-app ads show higher engagement rates compared to those from social media.
• Mobile transactions are projected to account for 62% of online transactions by the end of 2025.
• Mobile in-app advertising offers access to over 5 billion global smartphone users daily.
• Brand safety is enhanced in mobile advertising due to app store reviews and guidelines.
• Incorporating mobile into multi-channel marketing strategies can deliver measurable results for brands.