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Economic Downturn Causes Declines in App Install, Ad Spend Budgets – AppsFlyer Finds

Marketers continue to navigate a turbulent marketing landscape with budgets dropping 20% in 2023 due to economic challenges and privacy restrictions

by Peter Oluka
November 16, 2023
in News
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AppsFlyer has released the 16th edition of its Performance Index, ranking the top media sources in mobile advertising across 11 regions and 22 app categories.

The latest version of the Index, which originated in 2015, found the economic downturn had a significant impact on the mobile app media space throughout 2023, as nearly all top media sources saw declines and app install ad spend budgets reduced by 20% in the third quarter of 2023 when compared to Q3 in 2022.

AppsFlyer index 2023
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AppsFlyer index 2023

“In a world where excellence is redefined by measurable outcomes, marketers around the globe are keen to boost efficiency, and unlock unprecedented success – the same applies to African marketers. The key to shaping this future of business brilliance lies in embracing data-driven strategies – our latest Performance Index explores how unique economic conditions have impacted the overall market, providing valuable insights on marketing strategies during an economic downturn, and implores marketers to make the right decisions when it comes to budget allocations,” said Michael Zaitsev, Managing Director for Africa & CIS at AppsFlyer.

Apple Search Ads and Meta Lead the Way Across iOS Gaming and Non-gaming

The best way to properly depict the state of the iOS media market is by looking at a single source of truth (SSOT). AppsFlyer’s first ever SSOT iOS index combines SKAdNetwork and traditional attribution, and accurately deduplicates between the two data sources.

Apple Search Ads (ASA) is the #1 media source for iOS gaming apps and non-gaming categories, coming in at #1 in almost all the rankings across every region and every category with high quality and unmatched scale, particularly in non-gaming.

The dominance of ASA in non-gaming is even more pronounced than it is in gaming, coming in at #1 in all the rankings across every category and every region except for Latin America with unmatched scale and high quality.

Although still far from its dominant iOS position before iOS 14.5, Meta ads continues to adapt in the post iOS 14.5 era, coming in at #2 in the power and volume rankings (power rankings combine quality and quantity metrics while volume only covers quantity).

The social network’s performance is mostly fueled by non-gaming apps on SKAdNetwork, Apple’s privacy-centric attribution interface, where it drives the highest number of installs, well above the competition.

Google Ads came in at #3 in the rankings thanks to its scale among non-gaming apps. It should be noted that for Google, iOS is secondary compared to Android, especially when compared to its web business.

For gaming apps, Applovin ranked 5th in the global power ranking, driven by success in casual and hyper casual games, followed by Unity Ads in 6th place, thanks to a #4 rank in casual and hyper casual games.

ironSource ranked 2nd globally in social casino, and 2nd in hyper casual games in Western Europe, Indian subcontinent, Latin America, and the Middle East.

For non-gaming, Meta ads ranked 2nd in the global power ranking, driven by its performance in Life & Culture where it ranked 2nd, while Google reached 5th place (3rd in the volume ranking) thanks to a #2 power ranking in finance. Snapchat and Moloco ranked 3rd and 4th, respectively thanks to top-notch quality.

Google and Meta Dominate in Android Gaming and Non-gaming

Google Ads continues to dominate Android gaming and non-gaming, further extending its power ranking gap from 2nd place Unity.

In fact, it holds the top power and volume ranking in every single category within Android gaming, with the exception of hypercasual where it is ranked 2nd.

Unity Ads held its #2 global power ranking position, but dropped one spot in the volume ranking to #5. Its success can mostly be attributed to Match genre games, where it ranked 2nd, as well as in Puzzle, Shooting, and Tabletop game apps where it ranked 3rd globally.

IronSource surged in the global rankings, coming in at #3 in the power and volume rankings — up an impressive three slots, compared to the previous edition of the Index.

Meta ads ranked 4th in the global power ranking — up one slot compared to 2022 —thanks to a #1 ranking in casino as well as #2 spots in midcore games (RPG, Shooting, Strategy genres), as well as in puzzle, and sports & racing games.

It should be noted that power ranking gaps between Unity, ironSource, and Meta are minor.

Meta Surpasses Google Atop Shopping Ranking for Remarketing Rankings

The Android remarketing ranking finds Google and Meta, and TikTok For Business to some extent, dominating market share. Google Ads, which is the #1 player across most remarketing rankings, came in 2nd to Meta Ads in the most important category— shopping.

Meta ads was able to close the gap with Google in the global power ranking because of its success in shopping, where it surpassed Google to come out on top.

TikTok For Business came in 3rd in the global power ranking, driven by its significant scale, particularly for shopping apps.

Liftoff ranked 4th thanks to great quality, while remarketing specialists Adikteev and Remerge followed with a #5 and #6 ranking, respectively.

The former’s success was largely driven by Life & Culture apps, where it ranked 3rd thanks to great quality, while the latter came in as the top player in casino games where it clinched the #1 power ranking.

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  • Peter Oluka
    Peter Oluka

    Peter Oluka (@peterolukai), editor of Techeconomy, is a multi-award winner practicing Journalist. Peter’s media practice cuts across Media Relations | Marketing| Advertising, other Communications interests. Contact: peter.oluka@techeconomy.ng

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Tags: AppsFlyergoogleLiftoffMetaSKAdNetwork
Peter Oluka

Peter Oluka

Peter Oluka (@peterolukai), editor of Techeconomy, is a multi-award winner practicing Journalist. Peter’s media practice cuts across Media Relations | Marketing| Advertising, other Communications interests. Contact: peter.oluka@techeconomy.ng

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