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74% of Consumers Use Mobile Ads to Discover New Apps According to ironSource Report

MobileVoice® study demonstrates efficacy of in-app ads and diversified app monetization to help app-based businesses  to scale revenue and growth

ironSource (NYSE: IS), a leading business platform for the App Economy, today presents its MobileVoice® reports: The Modern Mobile Consumer 2022: App Discovery and Monetization. The reports, available in two versions — one for app marketers and one for monetization managers — provide data around the app discovery habits of consumers, and dive into which types of ads are preferred, how often they use their downloaded apps, why they use their apps and more. ironSource’s data also reveals how attitudes towards advertising and monetization have evolved, as well as highlighting the differences in the ways that Generation X, Millennials, and Generation Z engage with mobile apps.

The reports are the latest in Tapjoy’s Modern Mobile Gamer® series, which focuses on consumers’ understanding of the freemium app ecosystem and dives into who plays mobile games and why. Modern Mobile Consumer builds on that foundation by analyzing how people use their smartphones, as well as their evolving feelings about mobile ads and monetization. It is the eleventh report in the series since its creation in 2017.

Leveraging MobileVoice®, ironSources' market research solution, insights were collected from 30,457 consumers through opt-in surveys across thousands of mobile apps within MobileVoice®, as well as 500 additional respondents from a control group used to eliminate bias and confirm accuracy.

Here are some of the key findings:

  • Mobile ads drive app discovery. 74% of consumers (averaged across both groups) downloaded apps after viewing mobile ads for them.
  • Gaming maintains its popularity vis-a-vis social media. Among the audience surveyed in apps outside of games, 60% play mobile games, tying with social media for most-used type of apps.
  • Rewarded ads have expanded beyond mobile games. 33% of consumers surveyed in apps outside of games say they pay more attention to ads with in-app rewards. This is only slightly less than the gaming-focused group, indicating that consumers are broadly receptive to the rewarded model.
  • Consumers use a small number of the apps they download. The majority of mobile users have 20 or more apps on their devices, but up to 50% only use 5-10 on a daily basis. That’s why it’s critical for publishers and developers to focus on retention as well as acquisition.
  • Relaxation leads to higher downloads. People are most likely to download new apps while on vacation or in their free time.
  • Entertainment and relaxation are the primary app use cases. 65% of consumers repeatedly use their apps for entertainment and relaxation.
  • Diversified app monetization strategies are essential. While around a third of all surveyed groups said they never pay to download apps, between 28% and 49% occasionally make in-app purchases of a few dollars at a time. Attitudes towards monetization outside of mobile games are changing, with 15% of the non-gaming-app audience reporting that they make more in-app purchases than they did five years ago.

“Our latest report reveals what Tapjoy has been saying for years: Mobile ads are key to app discovery, both in and out of mobile games. There’s very little difference between those playing mobile games and those using non-gaming apps as far as app discovery is concerned,” said Jeff Drobick, GM of US Sonic and Tapjoy at ironSource. “Additionally, the data shows that diverse monetization strategies are key to maximizing revenue per user, meaning that in-app ads and in-app purchases can peacefully coexist without cannibalizing revenue. To fully explore each topic, we’re publishing two versions of the Modern Mobile Consumer report: App Discovery for UA marketers and App Monetization for publishers.”

ironSource’s Modern Mobile Consumer 2022 reports utilized MobileVoice® market research data gathered from a variety of popular apps via the Tapjoy Offerwall. Additional responses were curated by third-party polling service Pollfish to confirm accuracy and eliminate possible bias. All respondents confirmed that they were 18 years or older, and responses were filtered to provide the most accurate data.

ironSource’s survey results build on Tapjoy’s profiling of the Modern Mobile Gamer®, answering important questions about consumers’ mobile behavior.

To download the full report, visit our website. Readers can download either version of the Modern Mobile Consumer report by selecting their preference in the form.

About ironSource

ironSource is a leading business platform for the App Economy. App developers use ironSource's platform to turn their apps into successful, scalable businesses, leveraging a comprehensive set of software solutions which help them grow and engage users, monetize content, and analyze and optimize business performance to drive more overall growth. The ironSource platform also empowers telecom operators to create a richer device experience, incorporating relevant app and service recommendations to engage users throughout the lifecycle of the device. By providing a comprehensive business platform for the core constituents of the App Economy, ironSource allows customers to focus on what they do best, creating great apps and user experiences, while enabling their business expansion in the App Economy. For more information please visit www.is.com

Cautionary Statement Regarding ​​Forward-Looking Statements

This release includes various forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, which represent our management’s beliefs and assumptions concerning future events. These statements are intended to qualify for the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. Examples of such forward-looking statements include, but are not limited to, statements regarding the expected benefits and impacts of the testing tool. Words such as “expect,” “estimate,” “project,” “scale,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements but are not the exclusive means for identifying such statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and there are risks that the predictions, forecasts, projections and other forward-looking statements will not be achieved. You should understand that a number of factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements set forth in the Company’s SEC filings. ironSource cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Other than as may be required by applicable laws, ironSource does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

The data shows that diverse monetization strategies are key to maximizing revenue per user, meaning that in-app ads and in-app purchases can peacefully coexist without cannibalizing revenue.

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