The projected LTV of Android apps has grown 2.5 times since the release of iOS 14.5

After the release of iOS 14.5 and the introduction of new rules regarding IDFA, the mobile advertising market began to change rapidly. According to the latest data, the projected LTV of Android applications has increased 2.5 times since April. Against this background, the level of advertising spending on iOS continues to fall.Analyst John Kutsier (John Koetsier) in a column for Forbes spoke about changes in the mobile advertising market.

As a basis, he took his latest research for the marketing firm Singular.

The main conclusions from the materialFrom February 1 to June 20, advertising expenses on the mobile market amounted to $1.5 billion.

• At the same time, advertisers have been spending significantly more on advertising Android apps in recent months.If in February advertising expenses were distributed 56/44 in favor of Android, then in June the ratio reached 70/30.
• It’s all the fault of iOS 14.5, which was released on April 26.
• A week before, the Apple platform accounted for 37% of all advertising expenses, but a week after the release of the new version of the operating system, this share fell to 32%. And by June 20, it had dropped to 29.71%.Share of advertising expenses on iOS and Android (February-June 2021)

By June 17, 52% of all iPhone users had already upgraded to iOS 14.5. The largest percentage of installations of the new OS version in Germany is 64.39%.

• Thus, the more users update their phones, the lower the advertising costs on iOS fall.According to AdLibertas, in June, the projected LTV (calculated for 90 days) on Android increased 2.5 times compared to April.
• At the same time, this indicator decreased by 50% on iOS. Thus, after the release of iOS 14.5, users of Apple devices for the first time began to cost less than users of Android devices.The advertising market on iOS may return to previous indicators if advertisers rebuild their processes for SKAdNetwork.
• Otherwise, the share of advertising expenses on Android will continue to grow.Kutsir notes that such changes should be a wake-up call for Apple.
• If the trend continues, developers will prioritize the release of applications on Android — simply for reasons of benefit.However, the analyst believes that after adapting to the post-IDFA realities, the pendulum will eventually swing towards Apple.
• According to Statista, one iPhone user spends on average $400 more during the use of the device than one Android user. Ultimately, iOS users will still be more valuable to advertisers due to higher purchasing power.Kutsir also notes that the new IDFA policy is likely to change the mobile advertising market forever.
• Currently, only 23.64% of iOS users in the world allow apps to track their data. Most of all, users from Brazil agree to this — 39.88%. The lowest percentage in the USA is 16.83%.What percentage of users allow apps to track their data

For effective data collection, the identifier must be included in both the advertising and the advertised applications.

• Because of this, today companies can fully track the data of a much smaller percentage of users than in the period 2010-2020.According to Kutsir, all the statistics listed above indicate that in the coming months iOS developers will have big problems with advertising applications.
• As a result, the advertising market on the platform will stabilize, but the level of expenses will still be lower than in the era before the changes in the rules regarding IDFA.