REPORT: Spending on Mobile App Install Ads to Reach $3B in 2015

U.S. mobile ad spending will reach $28.72 billion in 2015, and $3 billion of that total will come from mobile application install ads, according to new research from eMarketer.

MobileAppInstallAdsBookNow650U.S. mobile ad spending will reach $28.72 billion in 2015, and $3 billion of that total will come from mobile application install ads, according to new research from eMarketer.

The $3 billion total for mobile app install ads is up 80 percent from $1.67 billion in 2014, and eMarketer pegged mobile app install ads at 10.4 percent of all 2015 U.S. mobile advertising, up from 8.7 percent last year.eMarketerMobileAppInstallAdsChart

eMarketer also pointed out that most mobile app install ads appear in display formats, where they accounted for 17.3 percent of market share in 2014, expected to rise to almost 20 percent this year.

The researcher said in a release announcing its findings:

While the leading search providers are making strides to attract app developers‘ ad dollars, we expect app install ads to represent an insignificant portion of mobile search spending in 2015.

Although the app install ad market’s share is a minor portion of the overall mobile advertising pie, it is by no means small. As a frame of reference, the total amount spent on app install ads is expected to outpace mobile video advertising this year, which we project to be $2.62 billion. Furthermore, mobile app install ads will grow more quickly than any other mobile advertising format in the U.S. this year.

eMarketer senior mobile analyst Cathy Boyle added:

There are nearly 1.5 million apps in each of the leading app stores, and the likelihood that any app will be discovered organically has decreased significantly. App marketers are increasingly investing in mobile ads to stand out from their competitors. Additionally, app install advertising is common across multiple industry verticals, particularly the retail, travel, financial services, media and gaming sectors, which are collectively driving the market.

Readers: Did any of eMarketer’s findings about mobile app install ads surprise you?