Non-game app spending signals change in the mobile market - DCN
The shift to non-game apps signals a change in the mobile market and increased willingness to spend on subscriptions or in-app purchases. OPA
July 26, 2022 | By Rande Price, Research VP – DCN
Like many entertainment and informational products, U.S. consumer spending on apps soared in April 2020 at the start of the Covid pandemic. Year-over-year growth jumped from around twenty to thirty percent in 2019 to thirty-five to fifty percent in 2020. With app revenue readjusting itself from the rapid growth of Covid’s early days, revenues declined year-over-year for the first time in Q2 2022. It’s important to note, that even with a year-over-year decline, Q2 20222 is up 71% compared to Q2 2019, before the pandemic.
Interestingly, Apple’s App Store generated approximately $43.7 billion from in-app purchases, subscriptions, and premium apps and games in the U.S., up 5.6% year over year. In contrast, Google’s store registered $21.3 billion, down 7.4% year over year.
TikTok was the number one download app globally and the number one spot in the U.S. With close to 14 million downloads, it was four million downloads ahead of the second-place app, Facebook. Amazon led as the top shopping app since Q4 2018 in the U.S., however, this ended in Q2 2022. SHEIN, a fast-fashion retail app based in China, ranks as the number one shopping app with the most U.S. downloads.
App downloads signal a return to norms
The Q2 report shows U.S. consumers returning to pre-pandemic activities. Travel apps received record high downloads while airline mobile apps increased more than 30% compared to Q2 2019. Further, consumers want to attend concerts and in-person sporting events, with the top five ticketing apps registering more than 10 million downloads combined, an increase of 70% compared to pre-pandemic Q2 2019.
Tracking mobile downloads, app popularity over time, and spending across app categories offers insight into consumer actions, activities, and shifts in behavior – all drivers of market share. Sensor Tower app download and spend analysis identifies a positive shift in consumers’ willingness to make purchases on their phones. It also shows consumers shifting app categories from mobile games to non-game apps, namely subscriptions, and a return to some pre-Covid activities.
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