Summary
- • Global mobile app revenues reached $318 billion in 2020
- • The App Store generated $72.3 billion in revenue in 2020
- • Google Play Store revenue reached $38.6 billion in 2020
- • Mobile gaming apps accounted for 21% of all iOS App Store downloads but generated 71% of App Store revenue
- • In-app purchases account for 48.2% of mobile app earnings
- • Subscription-based apps generate 50% more revenue per user than other apps
- • The average smartphone user spends $88 per year on apps
- • The top 200 apps on the App Store generate on average $82,500 per day
- • Mobile ad spending reached $240 billion in 2020
- • Freemium apps account for 98% of global app revenue
- • The average revenue per user (ARPU) for mobile apps is $0.58
- • Dating apps generated $3.08 billion in revenue in 2020
- • Health and fitness apps saw a 30% increase in in-app revenue in 2020
- • Mobile game revenue is expected to reach $116 billion by 2024
- • The top 1% of app publishers generate 93% of all revenue
Move over Monopoly, theres a new cash cow in town, and its not resting on Park Place or Boardwalk. In the ever-evolving world of mobile apps, where Candy Crush reigns supreme and TikTok dances into our hearts, the numbers dont lie: global app revenues hit a staggering $318 billion in 2020. Brace yourself for a rollercoaster ride through the dollars and cents of the App Stores $72.3 billion triumph, Google Play Stores $38.6 billion pièce de résistance, and the astonishing fact that mobile gaming apps, while representing just 21% of iOS downloads, rake in a jaw-dropping 71% of revenue. So, put on your money-making hat, because were about to crunch the numbers and uncover the secrets behind the $6.3 trillion mobile app economy projected by 2021. Buckle up, my fellow app aficionados, its about to get lucrative in here!
Advertising Revenue
- Mobile ad spending reached $240 billion in 2020
- Mobile app install ad spend is projected to reach $118 billion in 2022
- In-app advertising revenue is expected to reach $226 billion by 2025
- The global mobile advertising market is projected to reach $408.58 billion by 2026
- The average mobile app generates $0.04 per user per day from advertising
Interpretation
As mobile app revenue continues to skyrocket like Elon Musk's ambitions, the numbers don't lie: $240 billion spent on ads in 2020, $118 billion projected for 2022, and a whopping $226 billion expected by 2025. With an average revenue of $0.04 per user per day, it seems even our smartphones have a talent for cashing in on our daily swipes and taps. If these trends persist, it won't be long before our phones start demanding a cut of our paychecks - after all, they do work overtime keeping us entertained and procrastinating.
App Categories
- Mobile gaming apps accounted for 21% of all iOS App Store downloads but generated 71% of App Store revenue
- Dating apps generated $3.08 billion in revenue in 2020
- Health and fitness apps saw a 30% increase in in-app revenue in 2020
Interpretation
In the tumultuous world of app revenue, it seems that while we may be swiping left on potential partners, we're certainly swiping right on mobile games as they dominate the iOS App Store, proving that our true love might just be found in Candy Crush rather than Tinder. Meanwhile, health and fitness apps are breaking a sweat with a significant increase in in-app revenue, reminding us that we may not be hitting the gym, but we're definitely pumping up those app purchases. And as for dating apps, they're cashing in on our eternal quest for love, raking in billions of dollars in 2020 – because who said romance couldn't come with a hefty price tag?
Development Costs
- The average cost to develop a mobile app ranges from $40,000 to $300,000
Interpretation
In a world where app development costs can rival the price of a luxury car, one thing is clear: the app economy is no playground for the faint of heart. With average costs reaching heights that would make even Scrooge McDuck do a double take, it's not just about creating an app anymore - it's about making sure that app shines brighter than a diamond in a sea of cubic zirconia. So next time you're scrolling through that endless sea of app stores, remember that behind every swipe and tap lies a hefty price tag and a whole lot of blood, sweat, and code. Welcome to the high-stakes world of digital dreams - where the only certainty is that the cost of entry is anything but pocket change.
Market Size
- Global mobile app revenues reached $318 billion in 2020
- Mobile game revenue is expected to reach $116 billion by 2024
- The global app economy is projected to reach $6.3 trillion by 2021
- The global mobile app market is expected to grow at a CAGR of 11.5% from 2021 to 2028
- Mobile apps account for 57% of all digital media usage
- The global mobile application security market size is expected to reach $12.9 billion by 2027
- Mobile app usage increased by 40% during the COVID-19 pandemic
- The global mobile gaming market is expected to reach $272 billion by 2030
- The global mobile wallet market size is projected to reach $3.5 trillion by 2023
- The global mobile learning market size is expected to reach $80.1 billion by 2027
- The global mobile health (mHealth) market size is projected to reach $316.8 billion by 2027
- The global mobile payment market size is expected to reach $12.06 trillion by 2027
- The global mobile cloud market size is expected to reach $118.7 billion by 2026
- The global mobile entertainment market is projected to reach $420.4 billion by 2026
- The global mobile security market size is expected to reach $22.1 billion by 2027
- The global mobile augmented reality (AR) market size is projected to reach $198.17 billion by 2025
- The global mobile virtual reality (VR) market size is expected to reach $44.7 billion by 2024
- The global mobile edge computing market size is projected to reach $2.8 billion by 2027
- The global mobile artificial intelligence (AI) market size is expected to reach $22.4 billion by 2027
- The global mobile business intelligence market size is projected to reach $16.8 billion by 2027
- The global mobile location-based services market size is expected to reach $66.61 billion by 2028
Interpretation
The staggering upward trajectory of global mobile app revenues paints a vivid picture of a world where our fingertips hold the key to an ever-expanding universe of possibilities. From mobile gaming to mobile health, mobile payments to mobile artificial intelligence, it seems our smartphones are not just tools of connectivity but gateways to an entire digital ecosystem. As the numbers project a future dominated by mobile innovation, one can't help but wonder if our smartphones will soon become the Swiss Army knives of the digital age, seamlessly integrating every aspect of our lives with a touch and a swipe. It appears that in this mobile-centric world, the only way is up – and all signs point to our pockets getting a lot lighter... in a financial sense, of course.
Platform Revenue
- The App Store generated $72.3 billion in revenue in 2020
- Google Play Store revenue reached $38.6 billion in 2020
Interpretation
In the digital marketplace tug-of-war between the App Store and Google Play Store, 2020 saw Apple's App Store swinging ahead with a whopping $72.3 billion in revenue, leaving Google Play Store trailing behind at $38.6 billion. While Apple may be basking in the glory of its shiny revenue figures, Google is not one to be underestimated, proving that the battle for app supremacy is far from over. As users continue to download and wield the power of apps in their virtual arsenals, the question remains: will the App Store maintain its lead, or will Google Play Store rise to claim the throne? Only time, and perhaps a few more in-app purchases, will tell.
Revenue Models
- In-app purchases account for 48.2% of mobile app earnings
- Subscription-based apps generate 50% more revenue per user than other apps
- Freemium apps account for 98% of global app revenue
- The average conversion rate from free to paid users in freemium apps is 2-5%
- Mobile app revenue from in-app purchases is projected to reach $201 billion by 2023
- The average revenue per user (ARPU) for subscription-based apps is $20.94
Interpretation
In a world where mobile apps reign supreme, the numbers don't lie, but they do deceive. In-app purchases are the gold mines of the digital age, accounting for nearly half of app earnings, while subscription-based apps flaunt their superiority with 50% higher revenue per user. Freemium apps dominate the game, raking in a whopping 98% of the global revenue, enticing users with a mere 2-5% conversion rate to paid services. As we zoom into the future, the projected $201 billion in-app purchase revenue by 2023 sparkles like a digital jackpot, while the subscription-based ARPU of $20.94 per user hints at a cash cow waiting to be milked. So, app developers, heed the data, for in this digital Wild West, the real treasure lies not in the code but in the user's pockets.
Top Performers
- The top 200 apps on the App Store generate on average $82,500 per day
- The top 1% of app publishers generate 93% of all revenue
- The top 5 non-gaming apps by revenue in 2020 were TikTok, YouTube, Tinder, Disney+, and Tencent Video
Interpretation
In the wacky world of app revenue, it seems the saying "the rich get richer" holds true, with the top 1% of app publishers dominating a whopping 93% of the earnings pie. It's a tale as old as time, really - a handful of giants like TikTok, YouTube, Tinder, Disney+, and Tencent Video clutching tightly to their golden bananas while the rest scramble in the app jungle. So, next time you're mindlessly swiping through your favorite non-gaming app, just remember that behind that addictively smooth interface lies a pile of cash big enough to make Scrooge McDuck jealous.
User Acquisition
- The average cost per install (CPI) for iOS apps is $3.60
- The average cost per install (CPI) for Android apps is $1.22
- The average cost per action (CPA) for mobile app installs is $4.08
- The average cost per loyal user (CPLU) for mobile apps is $58
- The average user acquisition cost for mobile apps is $4.00
Interpretation
In the world of app revenue statistics, it seems that iOS users are willing to splurge a bit more on new experiences, with an average cost per install of $3.60 compared to Android's $1.22. However, once the app is downloaded, users across both platforms demand a bit more persuasion, with an average cost per action standing at $4.08. And let's not forget those elusive loyal users, whose allegiance comes at a steep average cost of $58 each. So, in the end, while acquiring a new mobile app user may only set you back $4.00, keeping them coming back for more might cost you a bit of your budget – and maybe a bit of your sanity too.
User Behavior
- The average user has 40 apps installed on their smartphone
- The average smartphone user spends 4.2 hours per day on mobile apps
- The average user session length for mobile apps is 5.7 minutes
- The average user has 9 mobile apps that they use on a daily basis
- The average user spends 88% of their mobile time on apps and only 12% on web browsers
- The average mobile app conversion rate from install to purchase is 3.1%
Interpretation
These app revenue statistics paint a picture of a society that is both app-obsessed and discerning in their choices. With an average of 40 apps installed, it seems we are not afraid to clutter our smartphones with options, but when it comes down to it, we only stick to a select few on a daily basis. The fact that users spend over 4 hours a day on mobile apps shows the undeniable importance of this industry, while the short average session length of 5.7 minutes highlights the fleeting nature of our digital attention spans. And with a conversion rate of just 3.1%, it's clear that app developers have to work hard to turn app installations into actual purchases. In a world where our mobile time is overwhelmingly spent in apps rather than browsers, these statistics underscore the growing dominance of the app economy.
User Retention
- The average user retention rate for mobile apps after 30 days is 5.7%
- The average mobile app loses 77% of its daily active users (DAUs) within the first 3 days after install
- The average mobile app loses 90% of its daily active users within 30 days
- The average mobile app loses 95% of its users within 90 days
- The average mobile app user retention rate after one day is 25%
Interpretation
In the tumultuous world of mobile apps, statistics paint a stark picture that is as disheartening as it is familiar: like a fleeting romance, the initial allure fades quickly. With a user retention rate that can be likened to a disappearing act, it seems that within the first three days, apps shed more users than a pet owner sheds pet hair. Yet, for those intrepid few who persist, the numbers dwindle further, with 90% bidding adieu within a mere month. It's a digital dance of devotion and desertion, where even after just one day, a quarter of users decide it's time to swipe left. In this game of fleeting attention spans, only the savviest of apps can defy the odds and keep users coming back for more.
User Spending
- The average smartphone user spends $88 per year on apps
- The average revenue per user (ARPU) for mobile apps is $0.58
- The average revenue per paying user (ARPPU) for mobile games is $20
- The average revenue per download (ARPD) for paid apps is $0.50
- The average mobile app user spends $0.50 per month on in-app purchases
- The average mobile app user spends $0.80 per download on paid apps
- The average mobile app user spends $0.33 per month on subscriptions
Interpretation
In a world where the currency of choice is not printed on paper but resides within the virtual realms of app stores, the numbers speak volumes about the modern consumer's behavior. From the frugal spender who carefully weighs each $0.50 download to the high-rolling gamer who happily parts with $20 for the ultimate mobile gaming experience, the app economy is a landscape of varying user values. In this digital marketplace, where $0.58 is the magic number that fuels the average revenue per user, the diversity of spending habits reflects the infinite ways in which technology intertwines with our daily lives. So, next time you click that "purchase" button on your favorite app, remember that you're not just spending money – you're investing in a piece of the digital universe.