Digital marketing and traditional media ad spend has taken a hit during the COVID-19 pandemic. Despite this, one thing that has seen a surge in consumer spend during this time is mobile apps. Check out some of the key insights and findings from a recent Campaign US article.
New findings from Appsflyer showed that there was a 10% increase in mobile apps’ global revenue from consumer spend during the first week of April. They dug even deeper to see what industries were seeing the biggest spike in revenue.
Health & fitness apps’ revenue jumped 24% last week with more people having to resort to working out from their home. Finance (up 18%), shopping (up 15%) and food delivery (up 10%) also saw increases in revenue as more people began staying at home and following social distancing guidelines.
Not all mobile apps however have experienced the same recent surge as the ones listed above. The largest drop is from travel apps, which is down 30% in the last 6 weeks.
Here’s what our VP of Media, Sascha Lock, has to say about the trend:
A rise in mobile-app usage has hit quarantined countries since mid-March, which in part is being driven by existing users seeking distractions or space/sanity from their nuclear families. However, apps like Pandora and Tiktok have reported sizable increases in new users, too. Folks are seeking comfort from music, or just mindless entertainment, while trying new apps to fulfill those needs. More users means more ad impressions on mobile-apps, but there’s a steep shortage in demand for those impressions right now. What’s clear in this picture is that paid apps (or paid versions of apps) are at least seeing diversification in their revenue streams - while ad-supported revenue is down, app-download revenue is up. Sadly, the same can’t be said for most players in the advertising industry, at least until the end of Q2.