Advertising investment on consumer mixed reality apps is set to reach $11bn by 2024 as app installs increase to 10bn by the same year, according to the latest predictions from Juniper Research. This year, consumer mixed reality apps are expected to bring in $2bn in advertising on 3bn app installs.
The research recommends that advertising processes within the apps align with the processes seen in the wider market in order to attract high spending advertisers – using attribution and fraud prevention platforms. At the same time, there is a warning about over-exposure to advertising for users.
It also shows that 75 per cent of the consumer mixed reality market will be attributable, by value, to in-app purchases by 2024. However, there’s a warning that these types of apps will suffer from high app abandonment rates, keeping them in-line with the wider app market. To counteract this, app developers are told to offer regular updates to their apps.
“Despite temptations to continually grow the app user base, app developers must have a primary focus on retaining existing users,” said research author Sam Barker. “Successful mixed reality app developers, Niantic and Snap, have continued to leverage their significant user bases by ensuring that app content is consistently refreshed, therefore benefiting from continued user spend.”