Bloomberg released an analysis of app spending for 2023, revealing an 11% increase in revenue. Demand for video platforms drove the increase, while gaming fell 2% year-over-year. Data reveals that TikTok has surpassed $10 billion in in-app spending, making it the first app to reach this threshold.
The milestone was achieved through a system that allows users to tip their favorite creators and live streamers. Market researchers said ByteDance-owned social media “has unlocked the secret to mobile monetization.”
Spending on apps, rather than games, grew in 2023, as users paid more for streaming, user-generated content and dating apps. However, the main driver of mobile revenue remained advertising: two-thirds of mobile sales were mobile ads, reaching $362 billion, or 8% more than in 2022.
Consumers stayed in front of their smartphones longer, the analysis also revealed. Indonesia ranks first among countries, averaging more than 6 hours per capita per day. The average in the top 10 markets reached 5 hours of daily app use and spending also increased by 3%.
The most downloaded apps were Shein and Temu, the latter being the most downloaded app in 125 markets. Elsewhere, the travel and ticketing sectors have seen a resurgence in popularity and spending. Generative AI apps surpassed $10 billion in monthly consumer spending by the end of 2023, according to data.
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