Q2 2024 Digital Market Index: Spend on Digital Advertising and in Mobile Apps Both Climb Double-Digits

The digital economy is becoming more important than ever, with digital economy growth outperforming the overall market. And as digital advertising and mobile become increasingly interconnected, it is more important than ever to get a full picture of this economy and how companies are driving growth.

Combining the power of Sensor Tower and data.ai, Sensor Tower’s latest Digital Market Index report checks back in on the latest trends across mobile app performance, digital advertising, and retail media. On mobile, worldwide consumer spend in apps and games reached a new record at $36.2 billion in Q2 2024, up 11.7% from the $32.4 billion consumer spent in Q2 2023. Meanwhile, US digital ad spend climbed 15% year-over-year to $27.2 billion.

Mobile Consumer Spend Growth Accelerated in Q2 – for Both Apps and Games

Diving deeper into where consumers spent their money on mobile in Q2 2024, the majority ($19.7 billion) still went to mobile games. Recent returns suggest that mobile gaming is turning the corner after several slow years, with Q2 2024 marking the fourth straight quarter of positive year-over-year growth. The apps vs. games split continues to become more balanced, however, with apps accounting for 46% of the total in Q2 2024, up from 42% of the total a year earlier in Q2 2023. At this rate, spend in non-game apps could surpass that in games as soon as next year.

And what is causing such rapid growth for apps? All top categories once again saw positive year-over-year growth – Productivity, Photo & Video, Entertainment, and Utilities each saw spend grow by at least 20% year-over-year. The continued popularity of the subscription model, combined with increasing time spent on mobile and the ease of paying on mobile devices, have allowed these apps to monetize like never before.

The top apps in Q2 2024 include a lot of familiar favorites. TikTok topped the rankings for both global consumer spend and downloads – all the more impressive considering that no other app was able to even reach the top 10 by both metrics. The popular social media app from ByteDance again broke the record for global consumer spend in a quarter, easily surpassing $1.3 billion in Q2 2024. This makes TikTok just the second app ever to surpass $14 billion in all-time spend, only trailing mobile game Honor of Kings (王者荣耀).

Joining ByteDance’s TikTok and CapCut among the top downloaded apps of the quarter were five Meta-owned apps (Instagram, Facebook, WhatsApp Messenger, Messenger, and WhatsApp Business). This left only three spots among the top 10 for apps not owned by ByteDance or Meta. As the mobile market has matured, it has become increasingly more challenging for new apps to rival the old favorites. However, this does not mean it is impossible – e-commerce app Temu broke into the top five this quarter despite having launched within the past two years.

TikTok and Instagram Lead Social Ad Spend Growth in the US

Digital ad spend in the United States across mobile, desktop, and OTT surpassed $27 billion in Q1 2024 with 3.3 trillion impressions. This marked another quarter of strong growth at 15% year-over-year and 4% quarter-over-quarter. Only Q4 2023 had higher ad spend driven by peak shopping season in the US. Among social channels, TikTok and Instagram led the way with 28% and 23% year-over-year growth, respectively.

All of the other included markets also saw year-over-year growth of at least 10%, and digital ad spend in Australia exceeded 21% growth. Please note that the ad channels included vary by market.

Want More Insights on the Digital Economy? Read the Full Report

Read the Q2 2024 Digital Market Index report highlighting the market leaders in mobile and digital advertising, spanning 21 markets in a dynamic, interactive format covering:

• Top Markets - countries in North America and Europe show growth opportunities for publishers while China’s mobile market bounces back

• Top Categories - Consumer spend increases in ALL top app categories with many seeing 20%+ growth

• Top Apps - TikTok sets consumer spend records and also leads by downloads

• Top Mobile Games - See how top launches like Squad Busters are reshaping the mobile gaming landscape

• Digital Advertising - US digital ad spend up 15% YoY, propelled by advertising on TikTok and Instagram

Retail Media Networks - Home & Garden retailers like Home Depot and Lowe’s ramp up retail media as the weather heats up