Recovery Glimmers as Tier 1 Markets Dominate
April 10, 2024, Beijing — Global marketing measurement and experience management platform AppsFlyer is back with its latest edition of the Ad Performance Report – Regional Special, offering insights into the growth potential across global markets to help mobile marketers make more informed decisions.
For the mobile app marketing industry, 2023 was a year of challenges, with marketers having to focus on short-term profitability amid budget cuts due to economic downturn. However, in 2024, signs of recovery and growth are evident.
The report reveals a 18% year-over-year increase in global app activation ad spend, driven mainly by a strong performance on iOS (up 25%) and a moderate rise on Android (up 13%). Eighty percent of the top 10 markets saw an average growth of 21%, while 60% of the top 50 markets grew by an average of 13%.
What are the highlights of this latest mobile advertising “bible” for expansion?
Unshakable Tier 1, Promising Opportunities in Tier 2
Mobile marketing is a global competition, with an average of 14 countries/regions targeted per app. Tier 1 markets account for 77% of customer acquisition spend, followed by Tier 2 at 21%, and Tier 3 at just 2%.
On iOS, Tier 1 markets dominate the top 7 spots with significantly higher average scores. On Android, high reach due to market size impacts rankings, with India, Brazil, and Indonesia entering the top 5. The gap between Tier 1 and Tier 2 is smaller in this segment.
While Tier 1 markets remain the go-to choice for many, Tier 3 markets show underperformance, and Tier 2 holds untapped potential, especially for gaming apps on Android.
iOS Gaming: US Leads, Japan’s RPG Takes the Crown
In the iOS gaming sector, the US outpaces all others with a significant overall score lead over second-placed UK. The US ranks first in all categories except RPG, where it excels in puzzle, hyper-casual, sports, board, and competitive games.
Within Tier 1, the UK also stands out, securing Top 2 positions in six categories, ranking second overall. Germany shines in entertainment, racing, shooting, and competitive games.
In Asia, Japan tops the RPG category, and also performs well in hyper-casual, sports, and strategy games. Vietnam achieves high rankings in action, shooting, simulation, and RPG, demonstrating solid performance.
Among Tier 1 markets, Denmark, Sweden, Italy, and Spain lag behind. Some high-potential markets emerge in specific verticals: Vietnam ranks 2nd in action, Saudi Arabia 3rd in racing, and Mexico 3rd in kids games.
Android Gaming: India, Brazil, and Indonesia Break Through
The US remains at the top for Android gaming but with less dominance than on iOS. Despite this, the US still secures 8 out of 12 category wins, performing best in entertainment, puzzle, board, and strategy games.
India, thanks to its market size, ranks first in racing, shooting, and sports games on Android, and second in entertainment, hyper-casual, competitive, party, and casual games. Brazil, leveraging its market size, leads in Android kids and party games and ranks second in action, puzzle, simulation, and strategy games.
Notably, Tier 1 markets like Australia, Spain, Italy, and Canada underperform. Romania ranks 5th in entertainment games, Bangladesh 6th in racing, and Argentina 6th in board games, emerging as dark horses.
iOS Non-Gaming: US and Western Europe Dominate
Despite the US leading the iOS non-gaming segment, nearly topping all categories (ranking 2nd only in finance), it excels in productivity tools, social media, and generative AI.
The UK ranks 2nd in iOS non-gaming, showing strength in food and drink, travel, and social media. Germany, at 3rd place overall, ranks 2nd in photo & video and 3rd in generative AI. France ranks 2nd in lifestyle and 3rd in food and drink, while Canada enters the top 5 driven by business, dating, and Gen AI.
Vietnam ranks 1st in finance on iOS non-gaming, Brazil 2nd in fitness and wellness, Turkey 3rd in social media, showcasing considerable growth potential.
Android Non-Gaming: India Takes 8 Number Ones
Benefiting from its massive market size, India claims 8 category wins in non-gaming, excelling in dating, finance, lifestyle, education, and social media. The US follows closely, despite only topping in generative AI and fitness and wellness, ranking 2nd overall.
Brazil ranks 3rd overall, leading in shopping and business. The UK comes next, ranking highly in food and drink and travel.
Among dark horse markets, South Africa ranks 4th in entertainment apps, Poland 4th in food and drink, and Nigeria 9th in business.
Retargeting Rankings: India and Russia Lead, US Dominates iOS
Android retargeting activities show strength. India dominates on Android with 6 category wins, particularly in fitness and wellness, education, and social media.
Russia leads the shopping category, indicating a lower level of market concentration and lower retargeting rates. The US takes the lead on iOS, excelling in generative AI, education, social media, action, puzzle, sports, and entertainment games.
In retargeting, new contenders arise: Poland ranks 4th in Android shopping, Philippines 4th in Android dating, and Egypt 3rd in Android strategy games.
Methodology of the Report:
Data for the rankings were collected from November 2023 through February 2024, covering 18.9 billion total installs, 8.6 billion non-natural installs, 8 billion retargeting conversions, and 30,000+ apps with over 10,000 installs each.
About AppsFlyer
As a global marketing measurement and experience management platform, AppsFlyer is dedicated to delivering privacy-centric innovative measurement solutions that empower brands to make better business decisions. Offering a portfolio of marketing measurement and analysis, deep linking, retargeting, fraud protection, data clean room, and privacy tools, AppsFlyer helps thousands of brands and over 14,000 technology partners build stronger, more meaningful customer relationships every day, all while prioritizing privacy.
AppsFlyer Decodes the Latest Global Mobile Advertising Trends. Author:Sports UEFA.Please indicate the source when reproduced:https://www.sportsuefa.com/esports-express/7371.html