Social Media and Content Creators Drive Global Mobile Ad Spending to Reach $402B by 2024
Global mobile ad spend to surge to $402B in 2024, driven by social media and content creators, marking an impressive 11% growth from the previous year's $362B, as revealed by Dataai's State of Mobile report
Article Brief:
The State of Mobile 2024 report by Data.ai reveals that global mobile ad spending saw a significant 8% growth, reaching $362 billion in 2023. This increase was largely attributed to the revenue generated from short-form video and video-sharing apps. The report also predicts that mobile ad spending is set to continue its upward trajectory, projected to hit $402 billion in 2024, marking an 11% year-over-year increase.
In the past year, mobile consumer spending increased by 3% to reach $171 billion, as reported. The rising popularity of social apps and the creator economy is opening up new avenues for monetization beyond traditional advertising.
Additionally, the report highlighted the remarkable growth of generative AI in 2023, driven by advancements in AI chatbots and art generators. This has led to the integration of new embedded features across various mobile industries.
Article Insight:
The report from Data.ai definitively proves that mobile has become the primary channel for consumer attention and advertising investment. The staggering $362 billion devoted to mobile advertising in 2023 surpasses the GDP of numerous countries, such as Colombia, Finland and New Zealand. Furthermore, consumers in markets prioritizing mobile usage now spend an average of over five hours per day on their mobile devices, marking a new record according to the report.
In 2023, consumer spending on apps grew by 11% to reach $64 billion, outpacing spending on games. Despite a 2% decrease in gaming spending to $107 billion, downloads remained steady at 88 billion. Overall, new app downloads remained flat at 257 billion. The report noted that in 2023, social apps and the creator economy introduced new avenues for monetization beyond advertising, including TikTok's content creator "tipping" feature, which contributed to the app surpassing $10 billion in lifetime spending.
According to Lexi Sydow, director of corporate marketing and insights at data.ai, consumers are demonstrating a desire for authenticity, video-first content, and a greater control over their social media experiences through financial support.
By 2024, the direct consumer monetization in social apps through in-app purchases is expected to grow significantly, reaching an estimated $1.3 billion, reflecting a 150% year-over-year increase. The report also highlighted TikTok's innovative experiments in this area, revolutionizing the landscape of engagement and monetization, according to Theodore Krantz, CEO of data.ai. Krantz further stated that by 2024, TikTok is positioned to surpass gaming giants and become the highest-grossing app in history.
The report highlights significant AI apps like ChatGPT, Ask AI, and Open Chat. Chinese shopping apps Temu and Shein saw a 140% increase in 2023 and dominated Western markets, with Temu leading app downloads in 125 markets. Social and entertainment apps also saw substantial growth, with spending up 10% to $29 billion and time spent up 12% to 3 trillion total hours.
Furthermore, the impact of the pandemic's isolation continues to influence consumer behavior. Travel downloads, including integrated travel, tour booking, and flight booking apps, increased by 13% in 2023, and ticketing app downloads surged by 31%, a 66% increase over pre-pandemic levels.
