Key Takeaways
- Global mobile app revenue reached $171 billion in 2022.
- App store revenue grew 11% year-over-year in 2023.
- Non-gaming apps generated $81.6 billion in 2023.
- In-app ads generated 45% of app revenue in 2023.
- Rewarded video ads accounted for 60% of ad revenue.
- Banner ads fill rate 92% in gaming apps.
- Subscription apps revenue $195 billion lifetime.
- Netflix app subscriptions 260 million in 2023.
- Spotify monthly active subscribers 602 million.
- In-app purchase revenue $167.5 billion in 2023.
- Candy Crush Saga IAP $1 billion yearly.
- Roblox IAP revenue $3.5 billion in 2023.
- Freemium apps 97% of downloads.
- Free apps generate 95% of revenue via IAP/ads.
- Paid apps only 3% of downloads but 10% revenue.
The mobile app economy is booming with diverse revenue streams like in-app purchases and ads.
Advertising Metrics
- In-app ads generated 45% of app revenue in 2023.
- Rewarded video ads accounted for 60% of ad revenue.
- Banner ads fill rate 92% in gaming apps.
- Interstitial ads eCPM $4.20 average.
- Native ads CTR 1.2% in non-gaming apps.
- Mobile ad impressions 4.5 trillion in 2023.
- US mobile ad spend $140 billion in 2023.
- Video ads 75% of total mobile ad spend.
- Ad ARPDAU $0.15 for free apps.
- Ad revenue per user $3.40 annually.
- Programmatic ads 80% of mobile ad buys.
- Gaming apps ad revenue $150 billion forecast 2024.
- ROAS from ads averaged 3.2x in 2023.
- Ad fraud affected 20% of impressions.
- Header bidding increased revenue 35%.
- Offerwall ads conversion rate 12%.
- Connected TV ads from apps up 50%.
- In-app ad spend grew 15% YoY.
- Social media ads 40% of app installs.
- eCPM rewarded video $25 in US.
- Ad latency under 2s boosts revenue 20%.
- Cross-promo ads save 40% on UA costs.
- Privacy changes reduced ad revenue 10-15%.
- Ad networks like AdMob 70% market share.
- In-game ads fill rate 95%.
Advertising Metrics Interpretation
Freemium and Subscriptions
- Freemium apps 97% of downloads.
- Free apps generate 95% of revenue via IAP/ads.
- Paid apps only 3% of downloads but 10% revenue.
- Hybrid monetization (sub+IAP) 40% top grossers.
- Freemium LTV $4.50 vs paid $2.00.
- 14-day freemium optimal trial length.
- Upsell prompts convert 8% in freemium.
- Freemium retention Day 30 12%.
- Sub conversion from freemium 4-6%.
- Freemium ARPU $0.50 monthly.
- Gated content in freemium boosts payers 15%.
- Freemium dominant in gaming 98%.
- Non-game freemium 85% adoption.
- Freemium + ads hybrid ARPU $1.20.
- Personalized freemium offers +25% conversion.
- Freemium user acquisition cheaper 30%.
- Tiered freemium plans LTV +40%.
- Freemium churn after paywall 20%.
- Social features in freemium +18% retention.
Freemium and Subscriptions Interpretation
In-App Purchases
- In-app purchase revenue $167.5 billion in 2023.
- Candy Crush Saga IAP $1 billion yearly.
- Roblox IAP revenue $3.5 billion in 2023.
- Coin Master IAP $800 million annually.
- Average IAP transaction $2.50.
- Whales (top 1%) generate 50% IAP revenue.
- Battle pass IAP conversion 15%.
- Consumables 60% of IAP revenue.
- Non-consumables 20% in utility apps.
- Live ops boost IAP 25%.
- Black Friday IAP spikes 300%.
- AR IAP in shopping apps up 40%.
- Puzzle games IAP ARPU $1.20.
- Strategy games IAP $2.50 ARPU.
- Refund rates for IAP 2.5%.
- Dynamic pricing lifts IAP 18%.
- Cross-sell IAP increases basket 35%.
- Daily rewards boost IAP frequency 20%.
- Limited-time offers conversion 22%.
- iOS IAP 65% of total.
- Android IAP bundles popular in Asia.
- Freemium IAP payers 5% of users.
- Hyper-casual IAP emerging 10% revenue.
- Subscriptions within IAP 30% share.
In-App Purchases Interpretation
Market Overview
- Global mobile app revenue reached $171 billion in 2022.
- App store revenue grew 11% year-over-year in 2023.
- Non-gaming apps generated $81.6 billion in 2023.
- Mobile ad spend hit $362 billion in 2023.
- In-app purchase revenue was $167 billion in 2023.
- Subscription revenue from apps reached $50 billion in 2023.
- Gaming apps accounted for 52% of total app revenue in 2023.
- US app market revenue was $42.9 billion in 2023.
- China app revenue topped $100 billion in 2022.
- Europe app revenue grew to $25 billion in 2023.
- Japan generated $14.5 billion in app revenue in 2023.
- Emerging markets app revenue up 25% in 2023.
- Total app downloads reached 257 billion in 2023.
- App revenue per download averaged $0.66 in 2023.
- Mobile app economy valued at $6.3 trillion in 2023.
- App revenue forecast to hit $613 billion by 2027.
- Consumer spending on apps up 7% in Q4 2023.
- App revenue from subscriptions doubled since 2019.
- Gaming IAP revenue $106 billion in 2023.
- Non-game IAP $61 billion in 2023.
- App ad revenue $344 billion in 2023.
- eCPM for mobile apps averaged $2.50 in 2023.
- ARPU for top apps reached $10.20 monthly in 2023.
- App retention rates averaged 28% Day 1 in 2023.
- LTV for freemium apps averaged $5.40 in 2023.
- Global app market CAGR 11.5% from 2023-2028.
- Android app revenue $58 billion in 2023.
- iOS revenue $113 billion in 2023.
- App paid downloads 2.5% of total in 2023.
- Freemium model used by 97% of top apps.
Market Overview Interpretation
Subscriptions
- Subscription apps revenue $195 billion lifetime.
- Netflix app subscriptions 260 million in 2023.
- Spotify monthly active subscribers 602 million.
- Subscription churn rate averaged 5.8% monthly.
- Apps with trials convert 25% to paid subs.
- Median subscription price $4.99/month.
- Annual plan discounts boost retention 30%.
- Gaming subscriptions $1.2 billion in 2023.
- Health & fitness subs revenue $5 billion.
- Productivity apps 40% subscription model.
- Sub ARPU $12.50 monthly for top apps.
- 7-day trial optimal for conversion.
- Bundled subs increase LTV 45%.
- iOS subs 70% of non-game revenue.
- Android subs grew 20% in emerging markets.
- Paywall A/B tests lift subs 15-20%.
- Family plans 25% of total subs.
- Lifetime value of sub user $150 avg.
- Downgrade option reduces churn 18%.
- Music streaming subs $20 billion revenue.
- Dating apps subs $3 billion annually.
- Sub renewal rate 85% for top apps.
Subscriptions Interpretation
Sources & References
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