Advertising trends for entertainment apps in Q1 2019!

As the global demographic dividend wave rapidly declines, the channel purchasing and volume expansion paths of various industries in the mobile market are gradually returning to rationality.

As mobile application manufacturers face soaring customer acquisition costs, they should return to iterative product innovation, continue to explore diversified monetization models, and deeply cultivate user preferences and user-accompanied growth. This will enable them to firmly and steadily increase market share and create sustainable product value during the long-term economic recovery cycle. The more the economic situation improves, the more the entertainment industry will grow against the trend.

According to the data from the China Economic Cultural Industry Report, the output value of China's cultural and entertainment industry is expected to exceed 2 trillion by 2021. The accumulation and development trend of China's economy have jointly accelerated the era of China's cultural and spiritual consumption. The future of the mobile entertainment industry is promising.

Based on the advertising intelligence of entertainment apps tracked from January 1 to March 31, 2019, App Growing released the "2019 Q1 Entertainment App Mobile Advertising Intelligence Insights", the summary is as follows:

Note: ① App Growing has not yet tracked the advertising information of Tencent Advertising’s QQ Browser, WeChat Moments, App Store and other media. The above-mentioned Tencent Advertising does not include the advertising data of these media.

② This report uses the number of advertisements delivered as the basis for measuring the intensity of advertising delivery. The number of advertisements delivered is not completely equal to its actual advertising consumption and is for reference only. The advertising spending amounts mentioned in this report are estimated by App Growing based on market data, advertising delivery time and other relevant comprehensive factors.

1. Overview of advertising in entertainment apps

1) In App download advertising, the total amount of entertainment advertising (estimated) is close to 30%

In the first quarter of 2019, a total of 323,000 advertisements in the entertainment industry were monitored, of which 281,000 were entertainment application advertisements, accounting for 33% of the total number of application advertisements. The total amount of advertisements was estimated through an algorithm. The amount of entertainment advertisements in Q1 accounted for 26.27% of the total amount of application promotion advertisements (estimated) in Q1.

2) Entertainment apps tend to advertise on Android devices

The proportion of advertising data tracked for Android and iOS is shown in the figure below. The number of advertisements on Android devices accounts for 82.95% , and the advertising amount (estimated) accounts for 85.57% of the total advertising amount.

3) Trends in the number of entertainment app ads in each month in Q1

According to the statistics of the advertising amount (estimated) of entertainment applications in each month of Q1, there was a slow downward trend in February and March . Further analysis shows that the advertising volume in Q1 has slowed down, and some advertisers of entertainment applications tend to maintain more regular advertising and reduce new advertising and the development of new channels.

II. Intelligence on advertising buying channels for entertainment apps

1) During Q1, the mobile advertising platforms that entertainment app advertisers prefer

Based on the number of advertisements placed on entertainment apps on each advertising platform, we have sorted out the following mobile advertising platforms that are more favored by entertainment advertisers (in no particular order).

2) The proportion of each sub-category of entertainment applications on mainstream platforms

In order to more conveniently observe the delivery intelligence of mainstream advertising platforms, we take Tencent Advertising, ByteDance, Baidu Baiyi, and Xiaomi as examples. We further counted the number of advertisements delivered to different subcategories of entertainment applications on each mainstream platform. The distribution of the number of advertisements delivered to the subcategories of entertainment applications is shown in the following figure.

Among them, the number of reading applications, entertainment applications and news applications launched on the ByteDance platform accounted for nearly 30% each. The volume of entertainment applications launched by Tencent Advertising, Baidu Baiyi and Xiaomi platforms accounts for more than 50%. Entertainment applications (mainly short videos) are the main force of cultural and entertainment products.

3) Among non-game apps on all mainstream platforms, entertainment apps account for a high proportion of advertising

An analysis was conducted on the number of non-gaming app ads placed by Tencent Advertising and Bytedance in Q1, among which entertainment, reading, novels and comics, and news and information accounted for a relatively high proportion.

III. Top 20 entertainment apps by launch quantity and share

1) Top 20 Entertainment Apps Rankings

Based on the App Growing algorithm, we estimated the investment amount of entertainment apps, and sorted out the Top 20 entertainment promotion rankings in Q1 and the Top 20 entertainment app manufacturers’ investment amount in Q1. The main platforms for Baidu's applications are its own platform and Tencent Advertising. Toutiao apps occupy five seats in the top 20 list of investment amounts.

2) Top 5 entertainment apps on mainstream advertising channels (estimated advertising amount)

Based on the algorithm, we estimate the advertising amount of each tracked App, and sort out the top 5 entertainment Apps in terms of advertising amount in Q1 on each mainstream platform. Judging from the estimated investment amount, short video applications still lead the entertainment apps, followed by reading applications.

China's cultural and entertainment market has a huge existing market, and the incremental market is expected to have strong growth potential in the future as the overall economy recovers.

The overall advertising trend of entertainment apps is stable. Whether it is the short video application market that is booming at the moment, or the reading application market that is growing steadily, after the buying volume dividend has returned to rationality, the entertainment application market as a whole has entered a rational and active competitive landscape of deep and refined operations and product innovation.

Author: App Growing

Source: App Growing