{"id":1331,"date":"2023-06-06T08:47:23","date_gmt":"2023-06-06T08:47:23","guid":{"rendered":"https:\/\/zorka.agency\/blog\/?p=1331"},"modified":"2023-06-06T08:47:24","modified_gmt":"2023-06-06T08:47:24","slug":"the-rise-of-adflation-how-can-apps-games-market-efficiently-in-2023","status":"publish","type":"post","link":"https:\/\/zorka.agency\/blog\/the-rise-of-adflation-how-can-apps-games-market-efficiently-in-2023\/","title":{"rendered":"The Rise of Adflation: How Can Apps & Games Market Efficiently in 2023"},"content":{"rendered":"\n

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Living in 2023 is more expensive than ever, and ad services are no exception. And while record-high inflation is already being fought with by many countries, the adflation (ad inflation) doesn\u2019t have an easy solution.<\/p>\n

The \u201cadflation\u201d is what we call the recent rapid growth in prices of advertising services. The capacity of the digital market as measured in people with mobile devices has reached its limit, while the ad spend continues to flow at an even higher pace. In 2021\u20132022 the digital ad spend growth grew 23%, while the audience increased just 3%. This is what\u2019s pushing the costs per impression, per click, and per action up: Zorka.Agency\u2019s<\/a> internal data, as well as industry global trends, show a steady 20\u201325% Y\/Y growth in average ad budgets.<\/p>\n

The US, being the most expensive country to market in, was hit with the highest rate of adflation. According to WeAreSocial<\/a> research, the average ad spend per US internet user was $880. And even as companies try to cut their costs, this number is not likely to fall. That is almost 8 times the global average, and 4 times the average for most European countries.<\/p>\n

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Asian countries, Latin America and Turkey are way more cost-efficient. For example, it costs 20 times less to reach a Brazilian user than an American one.<\/p>\n

In 2021 the American mobile gaming market user acquisition spending was 7,5 billion dollars with 127 million players in the country. The average Ad Spend in mobile gaming turned out to be 59$ per a player.<\/p>\n

A year later the situation is worsened by the fact that the players themselves are less responsive to ads than ever. The total number of US app downloads has dropped in 2022 by 9%, rendering CPI even higher.<\/p>\n

However, there is a silver lining: the amount of in-app purchases themselves has grown by a whopping 32%. That\u2019s right: fewer installs, but higher LTV. The number of new players in the USA is growing slower than the acquisition cost. With the number of installs falling as well, the market ever so slightly moves towards quality, not quantity of users.<\/p>\n

Thus, 2022 became to be the most challenging one for mobile game industry marketing. According to the survey conducted by Liftoff<\/a> among app and game marketers and CMOs:<\/p>\n