Mobile app usage has reached new heights, with consumer spending surging to a staggering $36.2 billion in the second quarter of 2024 - a 12% increase compared to the same period in 2023. One key driver of this growth is the entertainment category, which raked in almost $9 billion during the first quarter of 2024 alone.
The Power of Social Video
Social video engagement has reached saturation point, with six out of ten mobile users in the Asia-Pacific region reporting that they watch videos online on their phones. Despite legal uncertainties surrounding TikTok's future in the US, the platform remains incredibly popular, with users spending an average of 406 minutes per day on the app - a slight decrease from 2023. In contrast, text-based social forum Reddit saw a 13% increase in time spent per user.
AI Revolutionizes Mobile Apps
The introduction of generative AI models has been a game-changer for mobile apps, driving adoption and downloads across various categories. For instance, OpenAI's ChatGPT generated almost 7.4 million app downloads within its first 10 days of launch, while Microsoft Copilot saw around two million downloads in the same period. The photo and video editor app Canva also witnessed a surge in popularity, with over 1.16 million downloads in November 2024.
Normalizing Spending Trends
While AI has undoubtedly had a significant impact on mobile apps, it's essential to note that slowing app growth and normalizing spending trends have characterized the immediate post-pandemic years. The digital market volatility affecting social media companies has not dampened users' fascination with the social video format, but the proposed ban on TikTok in the US may be shifting the balance in the social media landscape.
AI-Infused Apps Dominate
AI-infused apps have become increasingly popular, with users embracing the novelty of apps like ChatGPT and Gemini, or Canva and Remini. Photo and editor apps remain one of the most popular categories carrying AI functionalities, indicating a long-term trend towards the adoption of AI-powered tools in mobile apps.
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