In-app spending hits a record $67.5 billion in Q1 2023 | Pocket Gamer.biz

Consumer Spending on Mobile Platforms Rebounds in H1 2023

According to a report by Data.ai, consumer spending on mobile platforms has returned to a positive direction in H1 2023, following a decline in 2022. In-app spending reached a record high of $67.5 billion, representing a year-on-year increase of 5.3%. This growth is a significant turnaround from the 2.7% decline in revenue in H1 2022, when the market generated $64.1 billion.

Apps played a crucial role in the growth of the market in the first half of 2023, drawing $26.6 billion in revenue, a 16% increase from H1 2022. However, in-app spending on mobile games continued to decline, with gaming revenue in H1 2023 hitting $40.9 billion, a decrease of 0.7% compared to H1 2022.

While the decline in in-app spending on games is still ongoing, it is slowing down significantly, indicating the potential for a return to growth. The report highlights that recent trends suggest a positive signal for the largest category of mobile games. After hitting its low at -13% in May 2022, mobile game spending has seen positive year-on-year growth in March and May 2023. The growth rates in H1 2023 are similar to those at the start of 2020, indicating the emergence of normal growth after a turbulent few years.

Battle of the Platforms

In terms of consumer spending, iOS continued to dominate in H1 2023, indicating that iPhone users outspend Android users significantly. In-app spending on Apple devices grew by 6% from H1 2022 to H1 2023, reaching $43.5 billion. In contrast, in-app spending on Android phones increased by 4% to $24 billion during the same period. iOS users accounted for 65% of combined app store spend, with the figure rising to 71% when only non-gaming apps are considered.

While iOS platforms led in terms of in-app spending, Android saw a higher number of downloads, with 58.7 billion in H1 2023 compared to 18.1 billion for iOS. However, iOS downloads are increasing at a faster rate, climbing 10% from H1 2022 to H1 2023, compared to 1.4% on Android over the same period.

Downloads in general showed growth, with a 3.2% year-on-year increase, reaching 76.8 billion in H1 2023. Non-gaming apps experienced larger growth, with 46.4 billion in revenue representing a 4.5% increase from H1 2022. Gaming apps also saw some improvement, with a 1.3% increase from 30 billion in H1 2022 to 30.4 billion in H1 2023.

Noteworthy Successes in the Gaming Market

The gaming market saw several notable successes, with some significant movements in the charts. Subway Surfers maintained its position as the most downloaded title in H1 2023, followed by Garena Free Fire. Roblox climbed three spots to claim the third position, while Candy Crush Saga rose one spot to number four. Ludo King, the third placing game in H2 2022, fell two spots to round out the top five. Two entirely new entries, Block Blast Adventure Master and Attack Hole, entered the charts at number six and seven, respectively.

Honor of Kings continued to dominate in terms of consumer spending, with Candy Crush holding the second spot. Roblox climbed one spot to claim the third position, while Coin Master rose two spots to fourth place. Genshin Impact fell two spots to number five.

Roblox emerged as the top game in terms of monthly active users, making it the only game to appear in the top three across all categories. Garena Free Fire climbed two spots compared to H2 2022, securing the second place, while Candy Crush Saga maintained its position at third place. Subway Surfers fell two spots to claim the fourth position, and Minecraft rose to number five.

One notable omission in the charts is Honkai: Star Rail, which was released on April 26. While the game’s presence influenced the decline of Genshin Impact, it did not secure a spot in the H1 charts. However, with its record-breaking release and earning more money than Candy Crush in June, it is expected to make a big impact in the H2 analysis by Data.ai.

This article will be updated to include the list of the top 50 mobile game makers of 2023 in the coming months.