ReportSensor Tower
The Mobile Economy and Digital Ad Space in 2022 and Beyond: An Analysis of Global Trends
1 Mar 202320 pages~19 min full read
Mobile gaming revenue experienced its first year-over-year decline in 2022, generating $79 billion from over 50 billion downloads as consumer spending dropped in major markets like the United States and Japan.
See it on page 8Android revenue fell by 30 percent year-over-year in 2022, while iOS revenue saw a modest 1 percent growth.
See it on page 7Entertainment apps have overtaken social networking in the United States, with revenue from platforms like TikTok, HBO Max, and Disney+ doubling 2019 levels to become the largest non-game category.
See it on page 13India, the United States, Brazil, and Indonesia lead global app downloads, with emerging markets in Africa expected to see rapid growth due to increasing smartphone penetration.
See it on page 2Utilities, specifically VPN apps in India, emerged as the fastest-growing app category, while Turkey recorded the sharpest adoption increase despite inflation-related constraints on consumer spending.
See it on page 4Venture capital funding for the mobile ecosystem contracted in 2022, creating uncertainty regarding the future emergence of new app disruptors.
See it on page 6Market diversification is increasing, evidenced by a manga-reader app becoming the top grossing application in Japan for the first time.
See it on page 14The analysis evaluates how the mobile ecosystem and digital advertising evolved through 2022 and projects future dynamics, using Sensor Tower’s App Store and Google Play data, quarterly download and revenue estimates, and ad‑spend figures from North America and major European markets. It frames the mobile economy as still expanding beyond pre‑COVID levels while noting a slowdown in install growth, with India, the United States, Brazil and Indonesia leading global downloads and emerging markets such as Africa poised for rapid gains as smartphone penetration rises.
Mobile games retained dominance, accounting for over 50 billion downloads and generating roughly $79 billion in revenue, yet 2022 marked the first year of year‑over‑year revenue decline, driven by reduced spending in the United States, Japan and other major economies. Utilities—particularly VPN apps in India—became the fastest‑growing category, while Turkey showed the sharpest adoption increase but faced inflation‑driven limits on consumer spend. Venture‑capital funding contracted, raising concerns about the emergence of new app disruptors, and Android revenue fell 30 percent year‑over‑year, contrasted with a modest 1 percent iOS growth.
Spending patterns shifted as entertainment apps eclipsed social networking in the United States, with TikTok, HBO Max and Disney+ leading a surge that doubled 2019 levels and made entertainment revenue twice that of the next‑largest non‑game category. In Japan, a manga‑reader app topped overall gross revenue for the first time, highlighting diversification beyond games.
