Mobile Ad Spending Jumped 26% In 2020 To $240 Billion

According to the "State of Mobile" industry report from mobile data analysis company App Annie, global mobile penetration in 2020 increased by 7% year-on-year due to the impact of the epidemic, and the amount of time people of all ages used apps Also increased:

The survey shows that Americans spent an average of 4 hours on mobile devices in 2020, and that Gen Z, Millennials, and Gen X/Baby Boomers in the United States each spent more time in their most commonly used apps. 16%, 18% and 30%.

The surge in mobile application user engagement has also driven rapid growth in mobile ad placements and spending. Also according to App Annie data, the amount of advertising implanted in mobile applications in the US market even climbed 95% year-on-year in 2020, and mobile advertising expenditures in the global market also increased 26% year-on-year to US$240 billion.

However, in the context of greater economic pressure caused by the epidemic, many advertising and marketing personnel have also reduced their advertising expenditure budgets. As a result, cheaper interstitials are growing the fastest among all ad types. Interstitial ads are full-screen interactive ads that pop up when users switch mobile pages. For reference, here is a comparison of interstitial ads (left), pop-up ads, and banner ads (right).

Interstitial ads are also one of the most popular mobile advertising formats among marketers. Their large size and high display rate can increase conversion rates and help increase app/service downloads and related revenue.

In addition, social media has become a clear winner during the epidemic. The time spent by each social media user increased by 325% in 2020 compared to the previous year, but the popularity growth has been uneven among apps. The short video platform TikTok was the most downloaded app in 2020 and was also among the top five apps that users spend most time using.

App Annie predicts that TikTok’s monthly active users will reach 1.2 billion in 2021. Such rapid development momentum may also defeat established competitors like Facebook.