Worldwide Revenue in Mobile Entertainment Set For Solid Growth
Data from Statista (August 2021) presents interesting findings vis-a-vis the entertainment market by revenue segment and revenue change over the years. In 2022, the revenue generated in the entertainment sector is expected to hit $31.51 billion. The Compound Annual Growth Rate (CAGR) between 2022 and 2026 is anticipated at 8.30%, with a market volume of over $43.35 billion in 2026. A notable statistic is revenue generated by in-app purchases (IAP) in the entertainment realm, at $11.37 billion this year.
Such is the sheer size and scope of the mobile entertainment industry that advertising revenue in entertainment is expected to top out at $20.09 billion this year alone. It’s a rapidly growing industry with strong upward potential. However, the revenue change since 2020 has declined year-on-year (YOY):
- 2019 – 7% revenue change
- 2020 – 42.4% revenue change
- 2021 – 25.5% revenue change
- 2022 – 17.0% revenue change
- 2023 – 12.1% expected revenue change
- 2024 – 9.0% expected revenue change
- 2025 – 6.5% expected revenue change
- 2026 – 5.4% expected revenue change
It’s important to point out that these are not negative revenue changes year after year, they are simply growing at a slower pace, off a much bigger base every year. Indeed, the revenue by segment is substantial through 2026, with solid growth year after year. The trajectory is positive, albeit at a slower growth rate. What is notable from the statistics (August 2021) is the increasing share of mobile advertising and in-app purchases between 2022 and 2026. Using the former as our baseline, we can project the following mobile entertainment growth pattern:
- Advertising revenue in 2022 of $20.09 billion, with in-app purchases of $11.37 billion
- Advertising revenue in 2026 is projected at $27.33 billion, with in-app purchases projected at $15.95 billion.
Who Are the Major Players in the Mobile Entertainment Arena?
Multiple companies currently occupy the mobile entertainment realm, notably:
- Apple Inc
- AT&T Incorporated
- Tencent Holdings Ltd
- Amazon Inc
- Facebook Inc
- Spotify Technology SA
- Electronic Arts Inc
- Google LLC
- Rovio Entertainment Corporation
- Netflix Inc
Naturally, the global mobile app market is segmented according to region, application, and type. Entertainment typically falls into three broad categories such as mobile TV, mobile games, and mobile music. As for advertising, these include in-app ads, social media ads, and online video advertising. While multinational corporations tend to dominate, there is plenty of room for private companies seeking to present their entertainment apps to the market.
SME media companies are entering the mobile entertainment market at a steady clip. However, it’s challenging to compete with established industry leaders such as Apple, Google, Netflix, Amazon, et al. Detailed analysis of the mobile entertainment arena indicates a combination of opportunities and challenges for small businesses.
Marketers need to stay abreast of the latest developments to combat the high attrition and low revenue that are standard with mobile app development. Various strategic elements need to be considered for industries like mobile gaming, and other forms of mobile entertainment. We are in the midst of an over-saturated marketplace where apps are a dime a dozen. It behooves companies to employ the services of an effective mobile app marketing agency to deliver on expectations.
Businesses may not be fully apprised of the complexities and intricacies of this highly competitive arena. It is important to drive value with new and existing customers and limit attrition as much as possible. Engagement marketing is one such technique that mobile marketing agencies can successfully deliver. In the gaming industry, activity levels are sacrosanct. Companies risk ruin by neglecting high-priority engagement with existing users who form the active user base of the company’s entertainment creations.
Engage Audiences & Optimize ROAS
The success of a company’s mobile gaming or other mobile entertainment products hinges upon high levels of engagement. By limiting customer churn, reeling in lost customers, and delivering added value at each point along the engagement spectrum, it’s possible to deliver on expectations. The value must be added from a business and customer perspective for the long-term viability of the company.
Mobile app marketing agencies optimize all available channels. Facebook, Instagram, Twitter, YouTube, and blogs, and emails are a few of the available channels where companies can benefit from the professionalism of experienced marketers. By implementing optimization strategies for different audiences, it’s possible to substantially up ROAS (return on ad spend), drive many more customers through the sales funnel, create measurable targets and reach them. Mobile marketing campaigns can successfully engage audiences with optimized ads and value for all stakeholders.
Mustafa Al Mahmud is the Founder and CEO of Gizmo Concept and also a professional Blogger, SEO Professional as well as Entrepreneur. He loves to travel and enjoy his free moment with family members and friends.