Forget just building an app—with mobile advertising revenue hitting a staggering $362.1 billion in 2023, the real game is mastering how to turn your user base into a sustainable revenue stream.
Key Takeaways
- In 2023, mobile app advertising revenue worldwide reached $362.1 billion, marking a 12.5% year-over-year growth
- US mobile ad spend accounted for 37.4% of global mobile ad revenue in 2023, totaling $135.5 billion
- Video ads generated 55% of total mobile in-app ad revenue in Q4 2023, up from 48% in 2022
- In 2023, global IAP revenue hit $167.3 billion, with games accounting for 76%
- Candy Crush Saga generated $1.6 billion in IAP in 2023 alone
- Average revenue per paying user (ARPPU) for mobile games was $57.23 in 2023
- Global subscription revenue for mobile apps reached $48.2 billion in 2023, up 18%
- Netflix mobile subs generated $13.7 billion in app revenue in 2023
- Spotify had 236 million paid mobile subscribers contributing $10.2B in 2023
- Mobile app market generated $613 billion total revenue in 2023
- Consumer spend on apps grew 11% to $171 billion on App Store in 2023
- Google Play revenue reached $48 billion in downloads and IAP in 2023
- Global mobile app users reached 6.5 billion active monthly in 2023
- 90% of mobile time spent in apps vs 10% mobile web in 2023
- Average user opens 9 apps per day, up from 8 in 2022 per 2023 data
Mobile apps generated massive global revenue in 2023 from ads, in-app purchases, and subscriptions.
Advertising Revenue
- In 2023, mobile app advertising revenue worldwide reached $362.1 billion, marking a 12.5% year-over-year growth
- US mobile ad spend accounted for 37.4% of global mobile ad revenue in 2023, totaling $135.5 billion
- Video ads generated 55% of total mobile in-app ad revenue in Q4 2023, up from 48% in 2022
- Rewarded video ads had a 25% higher completion rate than interstitials at 92% in mobile games during 2023
- Mobile app install ads drove 40% of all app downloads via advertising in 2023 across iOS and Android
- Banner ads saw a 15% decline in eCPM to $0.45 in non-gaming apps in H1 2023
- In Q3 2023, gaming apps generated $21.4 billion in ad revenue, 62% of total mobile gaming revenue
- Cross-promotion ads within apps yielded 3x higher ROAS compared to external networks in 2023
- Native ads outperformed display ads by 28% in click-through rates on mobile apps in 2023
- Ad fraud losses in mobile apps amounted to $6.5 billion globally in 2023
- Playable ads boosted install rates by 145% in hyper-casual games during 2023 campaigns
- In-app ad revenue per user (ARPDAU) for top games reached $0.28 in Q2 2023
- Social media apps captured 28% of mobile ad spend in 2023 with $102 billion
- Header bidding increased ad revenue by 35% for publishers in 2023
- Connected TV (CTV) ad spend spillover to mobile apps grew 22% to $8.9 billion in 2023
- Android apps generated 68% more ad impressions than iOS in emerging markets in 2023
- Privacy changes post-ATT reduced iOS ad revenue by 15-20% for apps in 2023
- User acquisition cost (UAC) via ads averaged $2.15 per install in Q4 2023
- Interstitial ads had an average fill rate of 98.2% in top-grossing apps in 2023
- Mobile ad blockers reduced revenue by 18% for non-gaming apps in 2023
Advertising Revenue Interpretation
The mobile app world is now a $362 billion party where video ads are the life of it, rewarded videos are the guests who actually stay, banners are the wilting decorations, and a sobering $6.5 billion is quietly slipping out the back door with fraud.
In-App Purchases
- In 2023, global IAP revenue hit $167.3 billion, with games accounting for 76%
- Candy Crush Saga generated $1.6 billion in IAP in 2023 alone
- Average revenue per paying user (ARPPU) for mobile games was $57.23 in 2023
- 5% of mobile gamers account for 90% of IAP revenue in free-to-play titles in 2023
- Clash of Clans IAP revenue exceeded $1.2 billion in 2023
- Booster packs and skins drove 45% of IAP spend in battle royale games in 2023
- iOS IAP revenue was 65% higher than Android per app in premium games 2023
- Daily IAP transactions peaked at 14.7 million on Google Play in Q4 2023
- Non-gaming apps saw IAP growth of 28% to $40.2 billion in 2023
- Dating apps generated $3.1 billion in IAP via premium features in 2023
- Refund rates for IAP averaged 4.2% on App Store in 2023
- RPG games had the highest IAP conversion rate at 8.7% in 2023
- Consumable IAPs made up 62% of total IAP revenue in casual games 2023
- PUBG Mobile IAP revenue reached $1.8 billion in 2023
- Fitness apps IAP from subscriptions and packs totaled $2.4 billion in 2023
- Black Friday IAP spikes averaged 340% week-over-week in 2023
- Average IAP basket size was $12.45 for mobile games in 2023
- Puzzle games IAP revenue grew 15% to $13.5 billion in 2023
- 28% of IAP spend came from users under 25 in 2023 surveys
In-App Purchases Interpretation
It seems the global gaming industry has cleverly solved the mystery of perpetual motion, building a $167 billion engine powered by our collective weakness for candy, clan warfare, and cosmetic capes, with the bill footed by a generous 5% of players who clearly have both the disposable income and the determination to crush us all.
Market Overview
- Mobile app market generated $613 billion total revenue in 2023
- Consumer spend on apps grew 11% to $171 billion on App Store in 2023
- Google Play revenue reached $48 billion in downloads and IAP in 2023
- Gaming apps dominated 52% of total app store revenue in 2023
- Non-gaming apps revenue share rose to 28% in 2023 from 22% in 2020
- China mobile app market revenue $140 billion, 38% of global in 2023
- App downloads worldwide hit 257 billion in 2023, up 11%
- US app economy supported 2.8 million jobs in 2023
- Entertainment apps revenue $55 billion, led by streaming in 2023
- Emerging markets app revenue grew 25% to $85 billion in 2023
- iOS vs Android revenue split 65:35 in favor of iOS globally 2023
- Developer payouts from App Store $320 billion cumulative by 2023
- Health & fitness apps market $12.4 billion revenue in 2023
- Shopping apps revenue $38 billion via commissions and IAP 2023
- Photo & video apps generated $18.7 billion in 2023
- Social networking apps revenue $24.5 billion mostly ads/subs 2023
- Finance apps revenue doubled to $7.9 billion in 2023
- Cumulative app installs surpassed 3 trillion by end of 2023
- Mobile apps contributed 62% of digital media revenue in 2023
- Average app monetizes at $1.2k monthly for indies in 2023
Market Overview Interpretation
Even as a staggering 257 billion app downloads creates a digital gold rush, with gaming still claiming over half the spoils, the real story is the quiet but explosive diversification of the treasure map, where everything from streaming to shopping and even our push-ups are now serious business, proving that while everyone wants a piece of the $613 billion pie, the recipe for success has deliciously expanded far beyond just high scores.
Subscriptions
- Global subscription revenue for mobile apps reached $48.2 billion in 2023, up 18%
- Netflix mobile subs generated $13.7 billion in app revenue in 2023
- Spotify had 236 million paid mobile subscribers contributing $10.2B in 2023
- Average subscription price increased 9% to $9.87 monthly in non-gaming apps 2023
- Churn rate for mobile subs averaged 7.2% monthly in Q4 2023
- Tinder subscription revenue hit $1.9 billion via Gold/Platinum tiers in 2023
- Gaming subs like Apple Arcade generated $1.1 billion in 2023
- 42% of top-grossing apps used subscription models in 2023
- YouTube Premium mobile subs revenue was $4.5 billion in 2023
- Annual subscription retention was 68% for fitness apps in 2023
- Calm meditation app subs reached $220 million in 2023
- Bundle subs increased uptake by 24% in multi-app ecosystems 2023
- Headspace subs revenue grew 32% to $150 million in 2023
- Disney+ mobile subs revenue $8.2 billion in first year post-launch 2023 data
- Trial-to-paid conversion averaged 35% for optimized apps in 2023
- Productivity apps subs totaled $5.6 billion with 22% YoY growth 2023
- Duolingo subs revenue $450 million, 55% of total revenue in 2023
- Freemium apps with subs had 2.5x LTV vs ads-only in 2023
Subscriptions Interpretation
Even as churn rates remind us that love, like a subscription, can be fickle, the global mobile app economy has decisively proven that we’ll happily pay a premium for our streaming, swiping, and self-improvement, with Netflix and Spotify leading a $48 billion parade where our personal data has been generously supplanted by our actual wallets.
User Metrics
- Global mobile app users reached 6.5 billion active monthly in 2023
- 90% of mobile time spent in apps vs 10% mobile web in 2023
- Average user opens 9 apps per day, up from 8 in 2022 per 2023 data
- Retention day 1 averages 25.3% for all apps in 2023 benchmarks
- Gaming apps have 40% higher session length at 12 min avg 2023
- 71% of users abandon apps after one use in 2023 studies
- ARPU for mobile apps averaged $1.86 globally in 2023
- Women spend 22% more time in shopping apps than men in 2023
- Gen Z users engage 3x more with social apps daily 2023 data
- Average sessions per user per day: 4.2 for top apps in 2023
- 52% of users pay for at least one app subscription in 2023 surveys
- Daily active users (DAU) for TikTok hit 1.1 billion in 2023
- Push notification opt-in rate fell to 42% in 2023 privacy era
- LTV for paying users averages $45 over 6 months in games 2023
- 65% of app time in US spent on Facebook/IG/TikTok in 2023
- Android users average 2.1 more app opens daily than iOS 2023
- Churn after first purchase 15% in subscription apps 2023
- Emerging market users 2x more likely to engage with ads 2023
- Average time per session 10m 23s across apps in 2023
- 80% of users multitask across 2+ apps simultaneously 2023
- Paying user ratio 4.5% of total installs in freemium apps 2023
User Metrics Interpretation
The modern app landscape is a ruthless cocktail party where billions of guests arrive eagerly, but most only stay for one awkward sip before ghosting, making the real trick to not just be the life of the party, but to become a habit worth paying the bar tab for.
Sources & References
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