Will AppLovin Be a Viable Performance Media Channel in 2025 for E-Commerce Brands?

The buzz surrounding AppLovin has reached fever pitch, reminiscent of TikTok’s explosive entry into the marketing world five years ago. But does AppLovin have what it takes to sustain this momentum and become a long-term performance media channel for e-commerce brands? Let’s dive into what we know so far—and the key questions that remain.

Why All the Hype?

AppLovin’s recent emergence as a significant player in direct response advertising is generating excitement for two main reasons:

1. Performance: Early anecdotes from e-commerce marketers suggest AppLovin’s ability to drive conversions rivals, or even surpasses, early TikTok ads.
2. Exclusivity: With its closed beta program, AppLovin has created scarcity that fuels intrigue. Only select brands meeting stringent spend criteria can access the platform, making it a hot topic among marketers.

Notable industry voices, including Sean Frank, Cody Plofker, and Olivia Kory, have shared promising early results. Third-party attribution studies and incrementality reports—such as insights from Prescient AI’s recent analysis—have further validated these performance claims, silencing some initial skepticism about self-reported metrics.

The Key Questions for 2025

While the early results are promising, several factors will determine whether AppLovin becomes a cornerstone channel for e-commerce advertising:

1. Scale and Competition: When AppLovin opens to all e-commerce brands, how will increased competition impact CPMs and performance? Will the network’s audience remain valuable, or will overcrowding dilute its effectiveness?
2. Novelty Factor: Are strong early results driven by the novelty of e-commerce ads in a network traditionally dominated by mobile gaming? As AppLovin scales, will consumer interest wane?
3. Transparency and Brand Safety: Enterprise brands may hesitate to invest without clear visibility into where their ads are being placed. Will AppLovin address this concern by disclosing more about its app inventory?
4. First-Party Data Challenges: Unlike platforms like Meta, AppLovin does not own its user data. How will it tackle identity limitations and ensure effective targeting without logged-in users?
5. Competition from Other Networks: As AppLovin gains traction, other mobile ad networks are likely to innovate and compete aggressively. How will this affect performance and pricing dynamics?

A Game-Changing Opportunity

With over 1.4 billion daily active users, AppLovin has the potential to become a scaled channel rivaling Meta. If it captures even 5% of total e-commerce media spend, AppLovin could drive billions in incremental ad revenue—transforming the landscape of performance marketing.

The real test lies ahead. Can AppLovin maintain its strong performance metrics while addressing issues of scale, transparency, and competition? If it can, the platform could redefine how e-commerce brands allocate their advertising budgets in 2025 and beyond.

Never Miss a Chance to Get Ahead

Is your e-commerce brand ready to unlock the potential of AppLovin? Wondering how you can stand out in this emerging channel and maximize results? Our experts specialize in creating strategies that drive results and scale performance on platforms like AppLovin. Let’s talk about how we can help your brand get ahead.