Consumer spend recovers in 2024 to $171 billion, up 3% YoY following a 2% dip in 2023, according to data.ai

SAN FRANCISCO, Jan. 10, 2024 /PRNewswire/ -- data.ai, the leading mobile analytics platform trusted by 80 of the top 100 app publishers, today released its annual State of Mobile 2024 report. The report reveals that mobile made a comeback after a one-year market slowdown. Consumer spending grew to $171 billion (+3% YoY), while hours spent peaked at 5.1 trillion (+6% YoY). Meanwhile, downloads remained flat at 257 billion (+1% YoY).

data.ai: 2023 Mobile Landscape at a Glance

Apps outpaced games, driving the rebound in consumer spend at 11% YoY to $64 billion. Social apps and the creator economy pioneered new pathways to monetization beyond advertising. TikTok laid the groundwork through its content creator "tipping" mechanism, propelling it past $10 billion in lifetime spend. In 2024, direct consumer monetization in social apps through In-App Purchases is set to grow 150% to $1.3 billion as competition ramps up. 

"AI serves as the foundation for all apps, permeating every sector and paving the way for a fresh wave of digital innovation," says Theodore Krantz, Chief Executive Officer of data.ai. "Harnessing the power of AI, TikTok has revolutionized the landscape of engagement and monetization. In 2024, it stands poised to surpass gaming giants and secure its position as the highest-grossing app in history."

Generative AI experienced explosive growth in 2023, expanding by 7x, and led to the emergence of new sectors such as AI Chatbots and Art Generators. This AI growth also fueled embedded features across virtually all mobile sectors, paving the way for a fresh wave of digital innovation. Notable Generative AI apps include ChatGPT, Ask AI, and Open Chat.

More key findings include:

• Competition for Eyeballs: Mobile ad spend is projected to reach $362 billion, an 8% increase, fueled by short-form video and video-sharing apps.
• Mobile Gaming Faces Headwinds: Gaming spend decreased to $107 billion (-2% YoY), while downloads remained steady at 88 billion, driven by Hypercasual, Simulation, and Action genres.
• Overseas Competition Heats Up: Chinese shopping apps Temu and SHEIN broke into the West, growing by 140%, with Temu leading downloads across 125 markets.
• Video Remains King: Social and Entertainment apps experienced double-digit growth, with time spent up 12% to 3 trillion hours and spending up 10% to $29 billion.
• Revenge Travel Rockets: Travel downloads surged in the sector by 13%, with integrated travel services (26%), tour booking (80%), and flight booking (43%) leading the growth.
• Demand for Real-Life Events Booms: Ticketing apps as a sector saw demand soar by 31% in 2023, driven by Swifties and Bey-Hive fans, marking a 66% increase from pre-pandemic levels.

data.ai's 2024 State of Mobile Report delves deep into regional and category-level market trends made possible by the more than 1.2 million apps categorized under data.ai's industry-first Game IQ and App IQ taxonomy and data.ai's applied ai-driven market data.

Read the full report here.

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Source: data.ai