Ad Spending to Stabilize, App Spending Up
Ad Spend Steady
After a year of nearly-unprecedented growth, ad spending is leveling off. That is a key takeaway from new data out from Standard Media Index. Their latest report predicts that ad spending for March of 2022 will show a stabilization after a year of significant growth.
Researchers note that March’s spend is predicted to reach about $7.6 billion, which is very close to the March 2021 spend. This, however, is after a growth rate of nearly 20% (2020 ad spending vs. 2021 ad spending). Digital media’s share of that spend was up about 30% as brands looked for new ways to engage a consumer base that spent more and more time online.
App Spending Trending Up
Meanwhile a new data.ai, formerly App Annie, report finds that live streaming now accounts for about $2 billion in app spending. That’s an increase of about 33% YoY. While much of the streaming increase began at the height of the coronavirus pandemic, it has continued even with more businesses re-opening. This is an indicator that consumer habits have changed with the pandemic.
“As the Media and Entertainment genre continues to innovate and expand, publishers need to stay ahead of these trends. Using App IQ, we have been able to take a deep dive into the sector, highlighting high growth sectors like OTT, Short video, Live Streaming and Comic books. App IQ allows us to see that the US is fueling 35% of all spend in the mobile Media & Entertainment space with 80% of that coming from iOS devices, ” Lexi Sydow, Head of Insights, data.ai.
Most Popular Apps For Spending
Other interesting findings from the report include an increase in books/entertainment app downloads. These apps now account for 1 in every 5 non-gaming app downloads, an indicator that consumers are actively seeking out apps with which to spend their time.
App spending reached just over $18 billion in 2021, about 50% higher than 2020. OTT apps led the way with about 2.2 billion downloads and about $6.3 billion in spending. More data from the 2022 State of Media & Entertainment report can be accessed here.
