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In an unprecedented surge, global mobile ad spending is projected to reach $402 billion in 2024, marking an 11% surge from the $362 billion recorded in 2023, according to the State of Mobile report from Data.ai. The report dispels any doubts about mobile seizing the throne as the primary channel for both consumer attention and advertising expenditure.
Apps experienced an 11% year-over-year boost to $64 billion in 2023 outpacing mobile games, with gaming spending slightly declining by 2% to $107 billion. The report highlights the pivotal role of social apps and the creator economy in forging novel paths to monetisation, exemplified by TikTok’s innovative content creator “tipping” mechanism.
This system has propelled the app to surpass $10 billion in lifetime spend, reflecting consumers’ growing appetite for authenticity and video-centric content. Content creators on the platform are also reported to have been more engaged on these apps as monetisation has become easier to achieve.
“Consumers are signalling a need for authenticity, video-first content, and a willingness to control the narrative of their social media experiences through the power of a dollar,” said Lexi Sydow, director of corporate marketing and insights at data.ai, in a statement provided to Marketing Dive.
Direct consumer monetisation in social apps through in-app purchases is expected to surge to an estimated $1.3 billion, marking a substantial 150% year-over-year increase. The report also commends TikTok’s pioneering experiments in the AI space, predicting its ascent to become the highest-grossing app in history in the coming year.
“The ByteDance app has revolutionised the landscape of engagement and monetisation,” said Theodore Krantz, CEO of data.ai.
Beyond TikTok, generative AI apps such as ChatGPT, Ask AI, and Open Chat have earned noteworthy mentions in the report. Notable growth in Chinese shopping apps, a continued surge in social and entertainment app usage, and pandemic-driven shifts in consumer behavior, particularly in travel and ticketing app downloads, further shape the evolving landscape of the mobile industry.
The report concludes that the dynamic growth in mobile ad spending signals a transformative era dominated by social platforms, creators, and an evolving consumer landscape.
