The coronavirus pandemic and changes set to be implemented in the forthcoming iOS 14 are the latest shocks to an evolving app economy. This report will look at how these changes have altered developer monetization strategies and advertiser options.
Most ads in games are for other games, so most gaming advertising avoided the worst effects of the lockdown, and in some cases, gained users and engagement. Mobile game advertising also tilts toward performance ads, such as app installads, which experienced a shorter and more shallow dip than brand advertising.
When US advertisers pulled back spending dramatically in March, one of the earliest noticeable effects on the display ad market was falling CPMs. At the same time as marketers were lowering their demand for ads—either to take spending cuts as savings or merely pause and rework their messaging—consumers were spending more time on social and traditional media properties, increasing the supply of impressions. A decline in prices was the natural outcome.