As mobile usage deepens across global markets, spending habits are shifting users are investing more money even when they install fewer apps. Our brand closely tracks these trends, and Sensor Tower’s State of Mobile 2025 reveals that consumer spending on in-app purchases, subscriptions, and premium apps hit $150 billion in 2024, a 13 % year-over-year increase marking a pivotal moment in mobile monetization.
Sensor Tower’s State of Mobile 2025 report delivers a clear message: mobile monetization continues to strengthen even as growth in downloads and time spent decelerates. Downloads across iOS and Google Play were essentially flat at 136 billion, and total hours spent rose to 4.2 trillion (+5.8% YoY). Yet despite this moderation in engagement growth, consumer spending surged.
What’s powering this disconnect between usage and spending? The answer lies in non-gaming apps, subscription models, and emerging verticals like AI. Non-games saw a +23% YoY increase in revenue, far outpacing the +4% rebound in gaming. Within non-games, film & TV streaming and social media led the charge with $11.9 billion and $11.7 billion in spend, respectively.
Perhaps most striking is the rise of AI-powered apps. Spending in this subgenre soared to nearly $1.1 billion, a 200% YoY increase. Users spent ~7.7 billion hours in AI apps, and “AI” apps were downloaded 17 billion times. These shifts reflect a deeper trend: users now expect intelligence, utility, and integration from the apps they pay for.
Regionally, the U.S. remained the dominant spender with $52 billion in IAP revenue, growing by 16%. Europe outpaced global averages, posting ~24% growth in app spending. But it’s not just the usual markets driving momentum Sensor Tower flags retail as a competitive battleground, with global brands like Temu and SHEIN pushing into mobile commerce and influencing app spend trends.
For us as a brand, these insights reshape our priorities. The growth isn’t coming from acquiring more users that game is saturated. The real upside lies in monetization, retention, and strategic vertical plays. Investing in subscription models, AI features, and vertical monetization (e.g. streaming, social, commerce) offers more upside than chasing downloads alone. Moreover, experimenting with premium tiers, hybrid models (freemium + paid), and personalized upsells becomes vital.
As the mobile landscape matures, so must our approach. The numbers from Sensor Tower reinforce what many of us already sense: the war for attention hasn’t ended, but the battlefield has shifted. Brands that lean into monetization, not just user growth will emerge as winners in 2025 and beyond.
