Indian app advertising market set to grow rapidly

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India has become one of the leading markets for app development and app advertising growth. Indeed, the country is now the second-largest smartphone market globally, overtaking the US in February 2016 with over 220m smartphone users, says Counterpoint Research.

App downloads in India rising rapidly

india app downloads 2

Source: businessinsider.com

As the local mobile internet infrastructure improves, app downloads are expected to blossom. This year, they’re predicted to reach 8bn, a 92% increase from 2014, says App Annie. But’s that’s not all. Downloads are estimated to reach 20bn by 2020. And with the growth in app downloads, the number of app developers is also set to rise rapidly, overtaking the US by 2018.

However, there’s a lot of noise in the increasingly crowded app market. The challenge for marketers is to deliver the right app-install ads that entice consumers to download an app.

80% of respondents in a 2015 survey among mobile app developers planned to increase their app-install ad spending.

BI Intelligence has just released a report that takes a closer look at mobile app-install advertising revenues and future growth of the format.

Among its key findings, the report suggests that mobile app-install ads made up 25% of US mobile ad revenue in 2015.

With an increasing number of developers entering the space, ad budgets are set to increase and US app-install ad revenue will reach over $7bn by the end of 2020.

Whilst app install advertisers have invested heavily in display and interstitial ads, they are now turning towards mobile video and native formats. 86% of developers already use in-feed video app-install adverts.

Older ad formats are hence quickly being trumped by install campaigns, with advertising platform focusing on more innovative features and formats to increase revenue. Deep linking and app streaming are among the top additions for future growth of the industry.