Mobile Advertising Benchmark Report Q2 2022

Mobile Advertising
Benchmark Report
Q2 2022

BENCHMARK REPORT | Q2 2022
This trend also played out with share-of-wallet as ASA gained five percentage points YoY reaching a 15%
share, whilst Facebook declined four percentage points YoY, still finishing significantly ahead with a 28%
share. Facebook also recovered share-of-wallet when comparing Q4 21 to Q2 22, suggesting that they’re
starting to recover from initial ATT headwinds. Google remained fairly steady on both metrics as most of
their inventory sits on the Android platform.
The question now is how much can Apple increase ASA’s share-of-wallet, given that inventory is
constrained by the volume of searches on the App Store? It appears that a DSP could be Apple’s answer
to further their first-party data advantages on iOS, if rumors are to be believed.
Executive Summary
iOS versions where AppTrackingTransparency (ATT) was enabled
reached mass adoption in June 2021 , so we can now do a full
comparative Year-over-Year (YoY) analysis of its impact on mobile
app advertisers. In this report, we break down the impact on app
advertisers’ media mix over this period.
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The key headline is the comparison between Facebook and Apple Search Ads’ (ASA) advertiser
adoption and share-of-wallet changes YoY. ASA joined the duopoly of Facebook and Google at
the top table of advertiser adoption as it grew adoption nearly four percentage points YoY to
94.8%, while Facebook adoption declined three percentage points to 82.8%.

BENCHMARK REPORT | Q2 2022
In the lower tier of channels, TikTok is now ahead of Snap for both advertiser adoption and share-of-
wallet. However, TikTok’s advertiser adoption declined nearly seven percentage points YoY to 43.2%. Their
share of wallet remained steady at 3% suggesting that some advertisers are succeeding, while others are
struggling to come to grips with the platform.
Snap’s challenges with ATT and economic headwinds have been well documented, which is evident in
adoption and share-of-wallet. Their share-of-wallet halved YoY from 4% to 2%. However, while adoption
declined three percentage points YoY to 32.7%, it bounced back from 25.4% in Q1 22. This could be a sign
of recovery and potentially a leading indicator for share-of-wallet gains in coming quarters.
While the number of channels used by advertisers didn’t move significantly, the underlying data shows
bigger deltas. The largest advertisers increased by 1.4 channels used YoY to 10.7 on average, while the
smallest advertisers decreased channels used by 1.1 channels to 2.5 on average. The largest advertisers
likely increased channels to maintain volume when performance dipped on some channels. However,
smaller advertisers struggle to deal with this cross-channel complexity in an ATT world given their smaller
creative, data and optimization resources.
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BENCHMARK REPORT | Q2 2022 04
Introduction &
Methodology

BENCHMARK REPORT | Q2 2022
iOS versions where AppTrackingTransparency (ATT) was enabled reached mass adoption around June
2021, so we can now do a full comparative YoY analysis of its impact on mobile app advertisers. In this
report, we break down the impact on app advertisers’ media mix over this period.
While many benchmark reports look at a broad set of advertisers, we look at performance-focused
mobile app advertisers spending greater than $100k per month on paid media. For challenger apps, it
should give you insight into your desired media mix as you scale and act as a benchmark for the biggest
spending apps versus your peers. We’ll look at:
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Which channels have the highest
percentage adoption amongst
the biggest spenders.
Media Channel
Adoption How many channels advertisers
use relative to their monthly paid
media spend.
Channel diversity
Which Self Attributing Networks
(SANs) get the largest share of spend
from the biggest advertisers.
Share-of-wallet
To give you insight into the dataset we’re exploring, here are some of the key
stats and methodology behind the study:
• Over 100 different consumer mobile apps.
• The median spend of our customers is $354k per month.
• Spend is exclusively from advertisers in North America and EMEA.
• The total sample of annual spend we’re looking at is over $500m.
• We’ve ensured that no single advertiser represents more than 20% of the
dataset to avoid data being skewed by one single advertiser’s dynamics.
• It’s a longitudinal study starting at the beginning of Q2 2021, and finishing
at the end of Q2 2022.
Whats the Methodology

BENCHMARK REPORT | Q2 2022 06
Media Channel
Adoption

BENCHMARK REPORT | Q2 2022
Traditionally, we’ve seen Apple Search Ads (ASA) lag behind the duopoly of Google and Facebook in terms
of adoption at around 75%. However, in the post-ATT world, ASA has now very much joined Facebook and
Google at the top table of advertiser adoption. While Facebook’s adoption did recover toward the end of
2021, the last two quarters have seen it once again decline below ASA, which has seen adoption that is
consistent with Google, most recently.
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Channel Adoption
Google
Apple Search Ads (ASA)
Facebook
TikTok
Snap
Top 5 DSPs / Ad Networks
Q2 21
96.5%
91.1%
85.8%
50.1%
35.7%
19.6%
Q3 21
96.5%
87.7%
89.5%
47.4%
28.1%
17.5%
Q4 21
94.8%
93.2%
93.1%
43.2%
25.9%
18.0%
Q1 22
96.7%
96.7%
88.1%
42.5%
25.4%
20.0%
Q2 22
94.8%
94.8%
82.8%
43.2%
32.7%
27.3%

BENCHMARK REPORT | Q2 2022
In the lower tier of adoption, we’ve traditionally seen TikTok lag behind Snap. However, throughout this
period TikTok has now jumped ahead of Snap, with between 40-50% adoption. That said, TikTok has
seen adoption decline about seven percentage points YoY. TikTok is at the awkward teenager stage of
advertising platform growth where perhaps some advertisers run tests on the platform but don’t find
ways to make it work for their app, while some advertisers clearly do. This could perhaps be due to
advertisers not quite nailing the creative format or finding that TikTok’s specific audience just isn’t a fit.
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Although Snap adoption is down three
percentage points YoY, they did see some gains
in Q2 22, after slumping to 25% adoption in
Q1 22. Their problems with ATT and economic
headwinds are well documented. However,
recent recovery does suggest that they may be
finding ways to overcome this.

Our top five DSPs and ad networks also saw
solid gains in adoption throughout the period,
jumping from around 20% to 27% adoption
as advertisers look outside the traditional
Self Attributing Networks (SANs) to find
performance.

BENCHMARK REPORT | Q2 2022 09
Channel
Diversity

BENCHMARK REPORT | Q2 2022
There is a clear divide between the top tier of spenders and mid- to lower-tier spenders when we look
at the impact of ATT on channel diversity. The top tier of spenders ($1m+ per month) have increased
channels used YoY by 1.4 channels. They have clearly seen a need to increase channels, perhaps to
maintain volume when performance dropped on some channels.
While the mid-tier spenders ($250k-$1m per month) saw a marginal drop YoY, the smallest tier (Up
to $250k per month) saw the average number of channels used drop by 1.1. Without the significant
optimization, data and creative resources of the bigger guys, these smaller advertisers are less able to
deal with cross-channel complexity in an ATT environment. This lack of diversification becomes an even
bigger challenge when performance on a channel is negatively impacted by ATT headwinds and they don’t
have a big enough channel portfolio to continue scaling.
While average channel diversity looks pretty stable over the period, it’s clear that the underlying data
shows a bigger divide between the top tier and bottom tier of advertisers.
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Monthly Spend Size
Over $1m
$250k-$1m
Up to $250k
Average
Q2 21
9.3
5.6
3.6
6.4
Q3 21
8.7
5.7
3.6
6.3
Q4 21
8.4
5.7
2.7
5.8
Q1 22
10.8
5.4
2.2
6.5
Q2 22
10.7
5.0
2.5
6.3

BENCHMARK REPORT | Q2 2022 11
Share
of Wallet

BENCHMARK REPORT | Q2 2022 12
Share-Of-Wallet
Google
Facebook
Apple Search Ads
TikTok
Snap
Other
Q2 21
35%
32%
10%
3%
4%
16%
Q3 21
36%
25%
14%
3%
4%
18%
Q4 21
37%
24%
16%
4%
3%
15%
Q1 22
35%
29%
14%
3%
2%
17%
Q2 22
34%
28%
15%
3%
2%
18%

BENCHMARK REPORT | Q2 2022
Looking at share-of-wallet YoY, the headline is that ASA gained five percentage points, while Facebook
declined four percentage points. Facebook’s share-of-wallet has been most volatile starting with 32%,
then declined as low as 24% in Q4 2021, before recovering to 28% in Q2 2022. This is likely a sign of their
struggles as they got to grips with the impact of mass ATT adoption. In contrast, ASA has seen steady
gains throughout the period, peaking in Q4 21, before being squeezed a little in the first half of 2022 as
Facebook’s share-of-wallet recovered.
Snap’s share-of-wallet has been halved YoY as they faced economic and ATT headwinds, despite their
recovery in adoption as we headed into Q2 2022. However, with adoption recovering, it could be a
leading indicator that share-of-wallet may too recover in future quarters.
Despite having a fairly stable share-of-wallet, TikTok now sits ahead of Snap with 3% vs. 2%. The fact
that their share-of-wallet remained steady over the period, despite declining adoption, suggests that
some advertisers are finding success on the platform while others are not.
Google’s share-of-wallet has remained pretty stable across the period as they see less impact from
ATT, given the majority of their spend sits on the Android platform.
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BENCHMARK REPORT | Q2 2022
What does this mean
for advertisers?
For advertisers, these trends suggest that some changes are needed
to media mix as the industry gets used to the post-ATT world
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Share-of-wallet and adoption movements suggest that performance has suffered on
Facebook and Snap in the post-ATT world, while opportunities are there on ASA, TikTok and
independent DSPs and ad networks. However, it’s worth noting:
• ASA is constrained in inventory by search volume on the App Store, so costs could quickly become unsustainable
as more advertisers flock to the platform. However, it’s worth keeping an eye on rumors that Apple could soon
be launching their own DSP, which would provide more inventory with the benefits of Apple’s first-party data for
targeting and measurement.
• TikTok is clearly working for some advertisers and less so for others. Making sure the audience matches with
your own is important to understand before investing significant effort. If it fits, spend time understanding
creative format and tone best practices, given the important differences with context versus traditional app
performance channels.
There are signs of recovery on Facebook and Snap, and being a first mover to scale as these
platforms recover will have a definite upside. So, continuously watch performance metrics on
these channels and test scaling spend regularly when you see opportunity.
For smaller advertisers, it’s clear that ATT has constrained channel diversification. However, looking
at the top tier of spenders, they’ve had to diversify further as channel performance was hit. So as
a smaller advertiser, it’s apparent that you need to find leaner and more cost-effective ways of
dealing with cross-channel complexity to diversify spend. The key is likely in lean experimentation
with new channels and cost-effective solutions to deal with cross-channel data complexity.

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