Key Highlights
- The global app revenue reached approximately $133 billion in 2022
- In 2023, average revenue per user (ARPU) for mobile apps worldwide was $2.87
- In-app advertising accounted for over 70% of mobile app revenue in 2022
- The average CPI (cost per install) in the US was $4.52 in 2023
- Hyper-casual games generate around 45% of mobile game revenue
- Subscription-based apps saw a 20% increase in revenue year-over-year in 2023
- The average session length for mobile apps is around 4.2 minutes globally
- Top grossing entertainment apps earned over $30 million monthly in 2023
- The worldwide mobile app downloads reached 230 billion in 2022
- In 2023, AR (Augmented Reality) apps revenue grew by 35% compared to the previous year
- Approximately 85% of all app revenue is generated through in-app purchases and subscriptions
- The average app store conversion rate is about 4.9%
- Game apps account for approximately 80% of all app revenue
With global app revenue soaring to over $133 billion in 2022 and in-app advertising accounting for more than 70% of mobile income, understanding the latest trends and strategies in app monetization has become essential for developers aiming to thrive in an increasingly competitive mobile landscape.
Advertising and Ad Revenue Metrics
- The average CPI (cost per install) in the US was $4.52 in 2023
- Mobile video ad engagement rates increased by 22% in 2023
- The average revenue share of in-app ads in gaming apps is approximately 63%
- Ad-supported freemium apps have seen an increase of 30% in ad revenue year-over-year
- The average revenue per thousand impressions (RPM) for mobile ads is approximately $4.10
- Ad impressions in mobile video ads increased by 35% in 2023
- The percentage of revenue generated from in-app ads is highest in the entertainment and gaming categories, at over 60%
Advertising and Ad Revenue Metrics Interpretation
Market Revenue and Growth
- The global app revenue reached approximately $133 billion in 2022
- In 2023, average revenue per user (ARPU) for mobile apps worldwide was $2.87
- Hyper-casual games generate around 45% of mobile game revenue
- Subscription-based apps saw a 20% increase in revenue year-over-year in 2023
- Top grossing entertainment apps earned over $30 million monthly in 2023
- The worldwide mobile app downloads reached 230 billion in 2022
- In 2023, AR (Augmented Reality) apps revenue grew by 35% compared to the previous year
- The average app store conversion rate is about 4.9%
- Game apps account for approximately 80% of all app revenue
- The global mobile advertising spend is projected to reach $362 billion in 2023
- The percentage of free apps that generate revenue is approximately 94%
- Mobile game in-app purchase revenues increased by 18% in 2023
- The global average monetization rate for free apps is 2.9%
- Payment apps saw a revenue increase of 27% in 2023
- The average app revenue per user varies widely across categories, with gaming at $25 and productivity at $1.50
- The top 1% of apps generate over 80% of total app revenue
- Freemium apps account for over 65% of app downloads globally
- Emerging markets have seen a 28% increase in app monetization revenue in 2023
- The average revenue per paying user (ARPPU) in mobile games is around $16.50
- Mobile commerce (m-commerce) revenue accounts for more than 45% of overall app monetization revenue
- In 2023, app monetization is expected to grow annually at a rate of 12%
- Mobile fitness apps saw a revenue increase of 15% in 2023
- The ratio of free to paid apps is approximately 10:1 worldwide
- Mobile app ad spending is forecasted to reach $278 billion by 2025
- Android apps account for 75% of all mobile app downloads globally in 2023
Market Revenue and Growth Interpretation
Monetization Strategies and Revenue Sources
- In-app advertising accounted for over 70% of mobile app revenue in 2022
- Approximately 85% of all app revenue is generated through in-app purchases and subscriptions
- The average lifetime value (LTV) of an app user is $4.50 globally
- The average number of monetized apps per user is 3.2 in 2023
- App store revenue from subscription models makes up approximately 42%
- 40% of apps with monetization features do so through subscriptions
- 72% of mobile app revenue in 2023 comes from in-app purchases
- Globally, 55% of mobile apps with monetization strategies use rewarded video ads
- The median income generated per user in mobile apps is about $2. It varies significantly across categories
- The share of revenue from in-app purchases varies by app category, with gaming at 70% and social at 20%
- The average revenue generated per user per year is approximately $15 for gaming apps and $3 for non-gaming apps
- The percentage share of revenue from subscriptions has increased by 35% over the past three years
Monetization Strategies and Revenue Sources Interpretation
Regional and Market Segment Insights
- App monetization by region shows North America generating over 40% of total revenue in 2023
- The average cost to acquire a user through ads varies by region, with Asia-Pacific at around $1.20 and North America at $4.52
Regional and Market Segment Insights Interpretation
User Engagement and Retention
- The average session length for mobile apps is around 4.2 minutes globally
- User retention rates after 30 days for free apps average around 27%
- 60% of users spend less than 5 minutes daily on mobile shopping apps
- 65% of mobile app users are more likely to make in-app purchases if offered personalized recommendations
- The average user spends about 5.7 hours per week on mobile messaging apps
- The average session length for mobile gaming exceeds 10 minutes in top markets
- The use of rewarded videos as an ad format increases user engagement by 60%
User Engagement and Retention Interpretation
Sources & References
- Reference 1APP ANNIEResearch Publication(2024)Visit source
- Reference 2DATAResearch Publication(2024)Visit source
- Reference 3SENSORYDATAResearch Publication(2024)Visit source
- Reference 4NEWZOOResearch Publication(2024)Visit source
- Reference 5STATISTAResearch Publication(2024)Visit source
- Reference 6INSIDERINTELLIGENCEResearch Publication(2024)Visit source