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In-App Purchase to Outpace In-App Advertising in 2022, Revenues to Grow by 10% YoY to $205B

Jastra Kranjec
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After two years of double-digit growth, the app market started slowing down. In 2022, global app revenues are expected to hit $430.9bn, 8.3% more than a year ago, and in-app advertising will make up more than half of that value. However, app developers will see revenues from in-app purchases outpace advertising this year.

According to data presented by Safe Betting Sites, users will spend around $205bn on in-app purchases in 2022, 10% more than a year ago, while in-app revenues are expected to grow by 6% year-over-year to $220.8bn.

IAP Revenues to Jump by $20B in a Year

Although in-app advertising has always been the largest revenue stream of the app market, in-app purchase revenues have grown considerably faster. Between 2017 and 2021, IAP revenues grew by an average of 25% per year, with 2020 as the record year with a 36% YoY growth rate. Also, statistics show in-app purchase revenues almost tripled in the past five years, rising from $74bn in 2017 to $205bn expected in 2022.

Advertising revenues had grown by an average of 19% per year in this period, increasing from $100.2bn in 2017 to $220.8bn.

Although the app market slowed down in 2022, in-app purchases will still see double-digit growth. Statista expects users worldwide to spend $20bn or 10% more on in-app purchases this year. On the other hand, in-app advertising revenues are projected to grow by $12.7bn or 6% in 2022. Overall, IAP will make 47% of total app revenues this year, or 1% more than in 2021, while advertising revenue share will slip from 52% to 51%.

App Market to Witness Smallest Growth in Years

Although in-app purchases will continue rising at a double-digit growth rate, the entire app market is set to witness the smallest growth in years. Last year, global app revenues jumped by an impressive 26% year-over-year to $398bn, the highest annual increase in five years. However, in 2022, the entire market is expected to grow by only 8% and hit a $430.9bn value.

Downloads are also expected to witness a slowdown. Last year, the total number of downloads in the app market reached 220.1bn, 17.5% up from a year before. In 2022, the number of downloads is expected to rise by 6.8% to 235.2bn.

Jastra Kranjec
Jastra Kranjec

Jastra is an editor, writer, and PR specialist with years of experience in the news, research, and report writing. Over the years, she has covered different topics including gaming, the entertainment industry, and the tech market.

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