Revenue generated from in-app purchases climbed 34% to $13 billion in 2020 – Report

Last year we saw new heights reached in consumer spending in mobile apps both games and non-game apps. New research shows that around the world consumer spending in the top 100 non-game in-app purchases grew 34% year-over-year from $9.7 billion to $13 billion.

However, in the U.S the percentage of consumer spending on in-app purchases makes up about 17.6% of the $33 billion spent in 2020. The percentage has declined from the 21% revenue share that was accounted for in 2019.

Apple App Store

Revenue generated from in-app purchases increases from $9.7 billion to $13 billion

According to Sensor Tower Store Intelligence data, revenue generated from the top 100 non-game subscription apps made up about 11.7% of the $111 billion that consumers spend on in-app purchases last year, the same case in 2019. In the fourth quarter of 2020, out of the top 100 earning non-game apps, 86 apps offered subscriptions which came down from 89 apps in Q4 2019.

Consumers in the U.S spend approximately $5.9 billion in the top 100 non-game apps offering in-app purchases during 2020 which is up 26% year-over-year from $4.6 billion in 2019. SensorTower - in-app purchases consumers app stores

Looking at the U.S. App Store, consumers spent $4.5 billion in 2020 on the top 100 earning non-game apps offering subscriptions, up 25 percent from approximately $3.6 billion in 2019. While the top 100 earning subscription apps on Google Play did not generate as much revenue, they did see greater Y/Y growth. In 2020, the top Google Play subscription apps in the U.S. saw $1.4 billion spent, up 40 percent Y/Y from $1 billion.

Relatively consumers have spent more on the App Store than on Google’s marketplace as well as the subscription apps. Worldwide, the top 100 in-app purchase offering apps on the App Store generated $10.3 billion in 2020, up 32% from $7.8 billion in 2019. On the other hand, Google Play saw $2.7 billion in 2020, up 42% year-on-year from $1.9 billion in 2019. top grossing in-app purchases apps globally scaled

In terms of in-app purchases, Alphabet came out on top this year. In the U.S, across both the app stores YouTube came out on top generating $991.7 billion in gross revenue globally and $562 million in the U.S. On Google’s marketplace, Google One was the top-grossing app generating more than $445 million globally and $255.7 million in the U.S.

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Gaming editor at iThinkDiff