A study by market intelligence company data.ai found that the FIFA World Cup in Qatar and the Beijing Winter Olympics in February drove spending on mobile ads in 2022.
In a report released in November, S&P Global Market Intelligence reported that between 2022 and 2023, the Qatar World Cup and the US mid-term elections could drive digital advertising spending around the world to $534 billion.
The data showed that events like the FIFA World Cup and the Beijing Winter Olympics will help the world spend $362 billion on mobile advertising in 2023. This is because people around the world are expected to spend trillions of hours on their Android and Apple devices noted ai report, which used to be called App Annie.
The study shows spending is about 7.7 percent higher than the previous estimate for advertising spending in 2022, which was $36 billion. It is also almost 25 percent higher than last year’s estimate, which was $295 billion.
Mobile will take over the advertising budget because people are spending more time than ever in apps. By 2022, the total number of hours spent in apps on Android phones alone is expected to be over 4 trillion.
The report also indicated that advertising spending will grow less quickly as the economy gets worse. Good news, short video apps are helping the sector grow, even though the world economy isn’t doing so well.
Spending on brand advertising will help make up for the effects of spending going down on performance marketing because marketing budgets are getting smaller in 2023.
The data.ai report indicated that by 2028, the amount of time spent on mobile devices is expected to go up by 50 percent and pass 6 trillion hours.
A focus on mobile, improvements in connected technology, the growth of casual and core gaming, the rollout of 5G, the demand for digital connection, self-expression, and apps that are more personalized will keep driving up the amount of time people spend on apps.
The report showed that economic headwinds and privacy laws will make people spend less on mobile games this year and next.
Consumer spending on mobile games will drop by 5% in 2022 to $110 billion, and it’s expected to drop again by 3% in 2023 to $107 billion.
The report went on to say that seven apps, like HBO Max and the Chinese video platform iQiyi, are likely to join Netflix, Disney+, YouTube, and TikTok in the $3 billion club.
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