2023 witnessed a global surge in mobile app spending as the numbers reached a staggering $171 billion. This is according to a report by app intelligence provider data.ai in their recently released State of Mobile 2024 report. The study revealed a three per cent increase in spending compared to 2022, while app downloads saw a marginal one per cent rise, totaling 257 billion downloads.
Notably, consumer spending on non-game apps experienced an impressive 11 per cent year-over-year growth in 2023, reaching $64 billion. The driving forces behind this surge were social apps and the booming creator economy, with TikTok playing a pivotal role.
“Consumers are shifting their spending habits. Popularized by TikTok, they are opting to spend directly in the app via ‘tips’ to their favorite content creators, opening the door for subscriptions and IAPs,” Ai stated.
The data.ai report highlighted the sustained dominance of social apps on Android phones, showing a nine per cent increase in usage during 2023, surpassing 2.3 trillion hours. Additionally, consumer spending maintained a robust 13 per cent year-over-year growth, reaching nearly $9 billion.
AI Integration Boom: App Owners Embrace ‘Chatbot’ and ‘GPT,’ New AI Apps Flourish in 2023
Data.ai’s latest findings reveal a surge in app owners leveraging the artificial intelligence (AI) trend to attract users in 2023. Over 4,000 apps strategically incorporated the term “chatbot” into their descriptions, with another 3,500 opting for “gpt.” Notably, the report highlights a significant uptick in new apps, with 2,500 launching in 2023 featuring “chatbot” in their descriptions—almost double the combined number from the preceding four years.
Apps embracing AI features also experienced success, with 20 incorporating such functionalities witnessing an impressive 11 per cent year-over-year growth in downloads. Encouragingly, 65 per cent of these apps showed positive growth.
Data.ai emphasizes the role of generative AI advancements in driving consumer spending last year. The genAI app market expanded over sevenfold, introducing novel consumer experiences like AI chatbots and AI art generators. Leading apps in terms of consumer spending included ChatGPT, Ask AI, and Open Chat, marking the continued influence of AI in shaping user preferences and app landscapes.
Future Vision: AR and VR Transform Mobile Experiences
Mobile apps are undergoing a transformative shift with the rising integration of augmented reality (AR) and virtual reality (VR). From enhancing daily tasks through AR applications like IKEA Place and Google Maps AR Navigation to immersive experiences in VR-powered games and virtual travel, these technologies are reshaping user engagement.
Notably, mainstream apps like Snapchat and Instagram are seamlessly incorporating AR features, reflecting a growing preference for augmented experiences. As technology evolves, the fusion of AR and VR with mobile apps is becoming a standard, offering users captivating and interactive content.
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