AppLovin Captures Larger Share of E-Commerce Ad Spend, Jefferies Survey Finds

AppLovin (NASDAQ:APP) is gaining significant traction among e-commerce advertisers, capturing a larger portion of their budgets and solidifying its position as a top advertising network. The company saw the largest market share increase among its peers, according to a second-quarter survey of 30 advertisers conducted by Jefferies.

Shifting Ad Budgets

The survey found that AppLovin's share of advertising spend rose by 169 basis points between the fourth quarter of 2025 and the full year 2026, reaching 11% of the total budgets of advertisers polled. This growth was the most substantial among all networks included in the Jefferies survey. AppLovin maintained its ranking within the top three networks for both market share and return on ad spend (ROAS).

Other key findings from the survey include:

• TikTok also experienced growth, with its share of ad budgets increasing by 147 basis points to 10%.
• Industry giants Meta and Google saw their share decrease, which the report attributes to advertisers diversifying their spending rather than cutting budgets on those platforms.

AI Tools Drive Adoption and Performance

Ad

The adoption of AppLovin's artificial intelligence tools appears to be a key driver of its growth. The survey noted that 23% of respondents were new advertisers who began using the platform in the fourth quarter of 2025, a significant increase from 7% in the first-quarter survey. These newer clients reportedly increased their spending throughout the year.

A significant portion of advertisers are experimenting with AppLovin's AI features. Half of the respondents tested the company's generative AI end cards and AI video tools, while a third tested its full AI-powered campaign setup. The results were positive, with six advertisers reporting improved ROAS from the AI video creative tool and four noting performance gains from AI end cards.

Broader E-Commerce Ad Market Strengthens

The gains for AppLovin come amid a strengthening outlook for the broader digital advertising market. Survey participants now expect to increase their total direct-to-consumer ad spend by 15% year-over-year in 2026, a notable acceleration from the 8% growth they anticipated in the first quarter.

Advertisers reported 12% spending growth in the second quarter and project a similar rate for the third quarter. This optimism is supported by strong campaign results, with 73% of advertisers seeing a rise in new customer revenue from prospecting campaigns, up from 60% in the prior quarter's survey.