Mobile Ad Budgets Increased by 65% for Majority of Companies

The world of mobile app marketing is experiencing a remarkable upswing in performance, cutting across industries. As of 2023, a staggering 64.7% of companies worldwide have chosen to increase their mobile advertising budgets compared to the previous year. For businesses in the United Kingdom, this percentage spiked even higher, reaching 67%, accompanied by an impressive budget boost of over 29%. These insights emerge from a recent study conducted by Moloco, experts in the realm of performance advertising. Let’s delve into the details.

Performance Mobile App Marketing Riding High

Companies based in the UK have notably raised their mobile performance advertising budgets to almost 26% higher than the global average. Furthermore, a solid 68% of UK organizations and 63.2% of global firms have expressed their intent to allocate a more substantial share of their mobile ad budgets to performance marketing in the year 2022.

A significant development in this arena is the ascendancy of performance marketing, which claimed a dominant share of 45.7% in 2023, eclipsing brand marketing, which accounted for 41.4%. This shift underscores the widely recognized efficacy of performance marketing in propelling sales and profitability.

Performance-driven marketing operates as a catalyst, reinforcing user acquisition and optimizing Return on Ad Spend (ROAS).

Companies well-versed in performance-driven mobile marketing not only exhibit expertise but also express a high degree of contentment, granting it an impressive rating of 4.4 out of 5. They attribute this success to performance marketing’s prowess in attracting new users, securing high-value user acquisitions, and enhancing ROAS.

Intriguingly, a substantial 58.2% of marketers affirm that performance marketing surpasses traditional brand marketing methods in terms of driving revenue growth. Moreover, 55.5% of marketers perceive performance marketing as the linchpin for achieving profitability, particularly in times of economic uncertainty. This sentiment resonates even more strongly in the UK, where an impressive 68.6% of marketers share this perspective.

Machine Learning and AI in the Spotlight

The primary criterion for selecting a mobile app performance marketing solution is advanced machine learning, securing the coveted top spot. Globally, marketers are increasingly recognizing the paramount importance of advanced ML/AI technology, with a significant 37% of them ranking it as the foremost factor among a list of ten considerations. Following closely are factors such as global reach, claiming the second spot with a preference of 23.1%, and high-value user acquisition, securing the third position with an 18.1% vote.

The pivotal role of machine learning is underscored by its ability to provide real-time, precise data for informed decision-making and meticulous goal tracking. It stands as the linchpin of success in the domain of mobile app performance marketing solutions.

Daisuke Yokokawa, Vice President of Global Marketing at Moloco, remarked, “The global shift in marketing from reach to results continues to gain momentum across different countries and various industries. Many mobile app marketers are aware that the secret of big tech’s success in advertising is advanced ML technology and the performance marketing solutions that they provide. This global trend is due to the clear and resounding power that mobile app performance marketing has to drive revenue, user acquisition, and profit, especially during times of economic uncertainty.”

Source: Business of Apps

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