Mobile app spending hits record $ 34 billion as demand for travel apps signals wider recovery in pandemic

0

Top line

TikTok, YouTube and Tinder came out on top as global mobile app spending hit a new high of $ 34 billion in Q2 2021, reporting continuous momentum for industry as the world begins to recover from the Covid-19 pandemic and restrictions on in-person activities that have allowed the industry to boom are up.

Highlights

Global app spending increased $ 2 billion from the previous quarter and $ 7 billion from the previous year, despite the fact that the number of app downloads remained relatively stable during this quarter. period, according to the data from the application analysis company App Annie.

TikTok took first place for most downloads and most consumer spending, overtaking YouTube in engagement as the average US user spends 24.5 hours per month in the app.

The other flagship apps were “the expected mix of social, messaging and video streaming products,” said App Annie, with Instagram, WhatsApp and Telegram among the most downloaded and Tinder, Twitch and YouTube generating the most money.

Demand for home medical and fitness apps remains high as pandemic continues around the world, data shows, with users spending $ 673 million on fitness apps like Peloton and Fitbit and medical app downloads increasing by 75% from pre-pandemic levels.

Consumer behavior is also starting to show signs of a broader economic recovery in highly vaccinated countries, where applications in hard-hit sectors like travel and sports have garnered renewed interest.

Crucial quote

Lexi Sydow, head of marketing analytics at App Annie, said the data shows the mobile habits acquired during the pandemic “are here to stay.” Sydow noted that “mobile usage is an early indicator of changing consumer demand and market sentiment. The many positives of mobile growth across multiple industries and geographies point to the start of a global economic rebound. “

Key context

The application economy skyrockets during the various Covid-19 lockdowns around the world, with countries around the world experiencing an increase in time spent on apps as well as money spent. While games are still the driving force in the industry, driving growth of nearly 3 billion downloads and nearly $ 7 billion in spend since the end of 2019, business and communications apps like Zoom and Google Meet experienced particularly high growth throughout the year, as many switched to remote work. and schooling, as well as socializing, entertainment and food ordering apps. The data suggest few signs of these changes caused by the pandemic reverse anytime soon.

What to watch out for

The success of Netflix has prompted content producers to develop their own streaming products. These have been proven to work as well, with Disney +, Tencent Video, and HBO Max being the fourth, fifth, and sixth best apps in terms of consumer spending globally. Overall, entertainment apps were the second driver of consumer spending growth during the pandemic and HBO Max, which launched just over a year ago, has jumped six spots from the last quarter and had 18 million monthly active users in the United States as of May 2021..

Surprising fact

Products owned by Facebook topped the list of most downloaded apps worldwide. Spots 2 to 4 were claimed by Instagram, Facebook and WhatsApp, with Facebook Messenger coming in 8th.

Tangent

The majority of apps at the top of the download rankings are free. Advertising is the main key revenue stream here, especially for social apps like TikTok, Instagram, Facebook, and Snapchat. Others, like Telegram (which was largely funded by founder Pavel Durov) and Zoom, offer premium features to complement the free plans. In order for apps to top the charts of consumer spending, some form of in-app purchasing is required. Tinder earns most of its money through its subscription service, Tinder More, for example, while HBO Max and Disney + sell streaming content.

Large number

5.5 million. This is the number of applications available in the mobile ecosystem of Apple and Google. When the Apple App Store launched in 2008 it only had 500 applications

Comprehensive coverage and live updates on the coronavirus

Leave A Reply

Your email address will not be published.