AppLovin revenue rises 55% as it rolls out new ad models

Chief executive Adam Foroughi pointed to a new generation of AI models that choose which ads run, only partly rolled out during the quarter, MarketBeat’s account of the call says. The company gave no date for a full rollout and no forecast of the business effect. Foroughi likened the complexity of the switch to its move to Axon 2.0, its ad-matching engine.

Foroughi said the models do better for advertisers with little data to learn from, newer and smaller ones included. Customers in general often run incrementality studies, which measure the sales an ad really added, before they raise spend substantially.

Gaming revenue grew nearly 50% from a year earlier, Foroughi said. Finance chief Matt Stumpf said spending by consumer advertisers rose by double digits from the previous quarter and by triple digits from a year ago, and AppLovin gave no revenue split by category on the call. Foroughi also said that as the e-commerce business grows, the fourth quarter gets bigger and the first quarter tougher.

On the creative side, Creatify’s Standard plan, $15 a month or $10 on yearly billing at our 4 November check, includes an Ad Launcher that lists AppLovin beside Meta and TikTok (our app ads list).

The gain Foroughi describes for thin-data advertisers therefore rests on a rollout AppLovin has not dated.