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February 12, 2025
The future of app development industry is affected by everything from augmented reality and virtual reality featured ads to artificial intelligence assisted app development and integrated revenue management platforms.
The year 2018 has been exceptional for the app development industry. All thanks to the increase in time spent on consuming apps which is over four hours a day in the emerging markets, the leading role of mobile apps in most industries, and the rise in digital ad spending. The in-app advertisements spending reached $20 billion in 2018, flourishing the app economy and generating revenue of $92.1 billion
Let’s learn about some of the key app monetization trends that are likely to impact the future of app development in 2019, as emerging technologies continue to strengthen the app landscape.
Integration of In-App Purchases and In-App Advertising
IAA and IAP are two of the most cost-effective models of app monetization, even though studies show that video ads with some rewards associated with them enhance IAP, it’s still challenging for app developers to use both app monetization models together.
However, soon the need to integrate both app monetization models smoothly will result in a new partnership where service providers who are offering IAA will also start providing the IAP model, and vice versa. This will be a new trend that will allow developers to combine revenue management models and generate a single, detailed insight about each user to help maximize app monetization efficiently.
Artificial Intelligence and Machine Learning will become essential for app development & monetization.
AI produce personalized user experiences which have made breakthroughs in app development. The best example of this radical shift is the Amazon Go, which is one of the first of its kind. Being able to check out grocery items on a high-tech retail store, swiping through the shelves on your smartphone without dragging through the stalls and waiting in queues. This has led to the unprecedented, most user-friendly shopping experiences.
AI and ML provide valuable insights for each user that enable developers to keep up with revenue expectations that come with each user. As the revenue creation takes place within IAA and IAP, the app developers find themselves in higher control of the app monetization model because of having a better idea about the lifetime value of a user.
Hardcore action and popular casual games will lead app monetization.
According to Newzoo, a gaming research firm, mobile gaming contributed to 76 percent of mobile apps revenue in 2018. On the global level, the revenue charts were led by the hardcore action and popular casual games like Fortnite, Puzzle & Dragons, Clash of Clans, Candy Crush Saga and PUBG Mobile.
IAA is the driving force behind revenues and within most genres, IAA contributes to over 50 percent of the return. Whether its action or casual games, app monetization has been the sustainable business model so far. Studies also show that a great proportion of players actually prefer ad videos that offer rewards in return like an additional life or some in-game prize or super-powers.
Ads featuring AR & VR technology will grab a substantial share of the market.
Augmented reality and virtual reality featuring ads fit smoothly in the app landscape and they also enhance users’ overall experience. More and more shopping apps are going for AR featured ads that help users’ personalize their journey by watching how sunglasses or other shopping items will look on them. Similarly, gaming apps use AR to personalize their players’ experience by giving the option to incorporate their own face within their game character.
AR and VR technology can be revolutionary to offer a unique user experience, the use of real-time data, which is based on user preference, can immensely impact the messaging, timing, placement and avatars. In times where it is no news that advertisers are ready to spend record amounts on video advertising, the AR and VR featured ads will take the user experience to the next level and strengthen up to achieve more engagements and interactions.
