The App market will soon be facing its worst time in the past six years

The Covid-19 pandemic when coupled with the tragedy of the Russia-Ukraine war has taken a heavy toll on app revenue collection. The Economic instability that commenced after both of these events has shaken the economy of the whole world to its very core.

Both of these events have been almost apocalyptic for the Global Economy and the App market has suffered severe blows. First, it was app revenues, and now in-app advertising has also been hit.

While In-app advertising is quite annoying for many users, it is a huge source of revenue for apps whether they be huge ones or some small startups, In-app ads are important. As revealed by new data the amount of revenue generated by In-app advertising will just grow around 6% this year to a total amount of 220.8 billion dollars. If we compare it to last year, then it is just a fifth of the growth seen in the past year. In addition to this, the revenue from In-app purchases also saw a loss, rising only 10% which amounted to 205 billion dollars, from the 23% increase it saw in 2021.

If we talk about the different genres of Apps then Mobile Games take the top spot effortlessly, which had a 7% increase in revenue this year. This was surprising as the genre saw a 105 million loss in users in the past year. However, this 7% growth seems measly compared to the 25% increase the genre experienced back in 2021. Following, in second place were Social Networking apps, who are anticipated to rise 9%, taking the total revenue to 43.4 billion dollars this year. However, when we put it against the last year, it was a 26% rise, thus the genre has had a 19% loss this year and to be honest it does not look or seem good for the Genre as many people are quitting social media and are not paying any attention to the ads that they are shown.

According to data collected by Statista, on a whole, the total growth expected for 2022 is 8%. Yes, you read that right, Statista says that the App market will only see a total rise of a measly 8% this whole year, and as 2022 is nearing its end the hopes are not high. This would be the lowest increase the whole market has seen in six years.

H/T: BusinessofappsStatista.

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