Did you know Global In-App Purchases Hit $39.4B in Q4 2024, Fastest Growth in Three Years

 

According to Sensor Tower’s latest Digital Market Index report, developments across digital advertising, app performance, and retail media didn't slow down in Q4 2024. The global in-app purchase (IAP) revenue on Google Play and iOS reached $39.4 billion, a 13.5% YoY increase and the fastest growth seen in the last three years. The digital ad market in the USA reached $34 billion in Q4 2024 with 3.8 trillion in expressions.

$39 billion in revenue for IAP on Google Play and iOS came from Q4 2024, while it was $150 billion overall. There was a 12.5% increase from 2023 in global IAP revenue in 2024. Most of the IAP revenue was from non-gaming apps with 28.2% YoY which reached $19.2 billion. There was only a $1 billion difference between IAP revenue from gaming and non-gaming apps. On the other hand, gaming apps had $5 billion more IAP revenue than non-gaming apps in Q4 2023. Mobile app revenue reached $20.2 billion in 2024 on Google Play and iOS. It saw some decline in past years but has stabilized with 2% to 4% YoY.  

The app that reached $6 billion in IAP revenue in 2024 was TikTok, while it reached $4.4 billion in 2023. TikTok got $1.9 billion in IAP revenue in Q4 2024. YouTube and Google One were trailing behind while ChatGPT raised some spots in Q4 2024 and made it to the top 10. Instagram was the top downloaded app globally, followed by TikTok and WhatsApp. ChatGPT also quickly became the sixth most downloaded app globally in Q4 2024. The global IAP revenue increased 46% YoY while global downloads increased by 17% YoY.

The digital ad spend in the USA across desktop, mobile, and OTT reached $34 billion in Q4 2024, with a 9% increase YoY. Ad spending in the digital advertising market peaked in Q4 because demand for shopping increased during the holiday season. Digital ad spend in France and Canada also saw a 10% YoY growth, while it saw a 7% YoY growth in the UK. Japan and South Korea also emerged as the newest markets in the global digital ad market.