AppLovin gained the most share among advertising networks in 2026, rising to 11% of e-commerce advertiser spending, driven partly by new user adoption and early positive results from its generative AI video and end-card tools. The company maintained a top-three position for both budget share and return on ad spend, while advertiser confidence in direct-to-consumer spending reached its highest level in the survey period.
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AppLovin's share of e-commerce advertiser spending rose 169 basis points to 11% between Q4 2025 and full year 2026, the largest gain among advertising networks in a Jefferies survey of 30 advertisers. The company maintained a top-three position for both budget share and return on ad spend. Meanwhile, 23% of surveyed advertisers had started using AppLovin in Q4 2025, up from 7% in the prior survey.
Why it matters
Half of the advertisers tested AppLovin's generative AI features (video end cards and video tools), with six reporting improved return on ad spend from the video tool and four from AI end cards. Advertiser confidence in overall direct-to-consumer ad spending grew, with 73% reporting new customer revenue gains from prospecting campaigns, up from 60% in the prior survey. This suggests AppLovin's AI-driven tools are resonating with a growing user base.
What to watch
Full-year 2026 direct-to-consumer ad spend growth expectations rose to 15% year-on-year in the Q2 survey from 8% in Q1, though actual Q2 growth came in at 12%. TikTok was the second-largest gainer, rising 147 basis points to 10%, while Meta and Google lost share, though Jefferies attributed those losses to advertiser diversification rather than budget cuts on those platforms.
AppLovin's share gains reflect a meaningful shift in how e-commerce advertisers are allocating budgets. The Jefferies survey tracked 30 advertisers over two quarters, capturing a period in which AppLovin's user base expanded significantly and its generative AI tools began showing measurable impact on advertiser performance. The 169 basis-point share gain stands out as the largest among all platforms surveyed, even as larger competitors like Meta and Google experienced declines. Importantly, Jefferies attributed Meta and Google's losses to advertiser diversification—a shift in strategy rather than a loss of confidence in those platforms—suggesting AppLovin is benefiting from advertiser experimentation with new tools rather than wholesale abandonment of legacy channels.
The engagement with AppLovin's AI features is particularly notable: half of advertisers ran tests on both video and end-card tools, a high trial rate that points to genuine interest in AI-driven creative solutions. The fact that six out of the testing group reported return-on-ad-spend gains from video and four from end cards indicates the tools are delivering measurable business results for at least some early adopters. This combination of rapid user adoption and early proof-of-concept results appears to be driving AppLovin's market share expansion and stock movement.
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