Here’s What Happened Last Quarter: Q1 2026 Mobile, Web, and Ad Trends

The Q1 2026 Digital Index report has arrived! Click here to skip straight to the report, or keep reading to explore some key takeaways from the last quarter. 

Mobile Market: US Sees IAP Declines While Revenue Slows for ChatGPT

Headwinds are here, and the US mobile market is definitely feeling it. In-app purchase (IAP) revenue growth has been negative for two straight quarters now, a trend not seen since the COVID pandemic caused a rapid rise and subsequent crash in spending back in 2020. On the other hand, Western European markets boasted comparatively high performance last quarter, representing a bright spot in a tough market. 

Interestingly, the Google Play store was able to double the IAP growth of the iOS App Store, despite the former’s reputation as having a lower-spending user base. Is that narrative starting to rewrite itself? We’ll be keeping a close eye on the dynamic as it unfolds. 

Finally, it wouldn’t be a complete mobile recap without mentioning Gen AI. Kingpin ChatGPT’s revenue growth (+4% from Q1 ‘25 to Q1 ‘26)  has started to lag in comparison to its biggest rivals. The days of Open AI’s uncontested dominance over the market may be coming to a close as LLMs like Claude (+235%), Gemini (+119%), and Grok (+103%) make gains. 

Inside the report:

→ Learn about the acquisition obstacles facing mobile games, the two subgenres driving the majority of app downloads, and the emerging markets fueling global expansion. 

Digital Advertising Market: Spend Kicks Up, Gen AI Brands Battle for Impressions

Despite plateauing IAP revenue and declining downloads in the US mobile market, digital ad spend in the country was still able to make an impressive showing last quarter. Total investment rose 15% (versus Q1 '25) to hit $48 billion, with impressions nearing an all-time high at 4.9 trillion. Reddit was the fastest-growing channel, followed by Mobile Apps, Instagram, and TikTok. 

Highlights include continued expansion in the Gen AI realm, where spend surpassed $430 million — more than triple the Q1 ‘25 total. Part of this budget went to high-profile Superbowl ads from brands like OpenAI, Anthropic, and Genspark AI. Speaking of football, the NFL’s successful partnership with Uber Eats’ retail media network reflects delivery platforms’ growing role in reaching consumers during major live sports and entertainment events. 

Inside the report: 

→ Learn about the structural shift in Linear TV advertising, Progressive’s bold Superbowl strategy, and tax season’s impact on digital spend. 

Web Market: Mobile Visits Surpass Desktop, But The Latter Wins In Engagement

In a landmark milestone, the share of web visits coming from mobile devices has surpassed the portion coming from desktop, for the first time ever — a significant tipping point for the industry. However, when it comes to engagement, phones still have a ways to go if they want to catch up with laptops. Desktop devices account for over 70% of time spent on the web, reflecting a natural trend: users increasingly browse on mobile, but complete deeper engagement on desktop. Meanwhile, AI Assistants are beginning to bridge this divide through cross-platform behavior. 

Inside the report: 

→ Learn how web usage trends differ across continents, why ChatGPT’s traffic declined for two straight quarters, and the AI habit that’s rewriting engagement patterns.

Ready for more? Click here to download the full 50+ page report (including 50+ interactive charts!)