Data.ai: Mobile game app revenue split evenly between ads, IAP

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Data.ai — formerly App Annie — has released a new report the focuses on its new total app revenue metrics. The company’s new total app revenue metric — that combines advertising and in-app spending data — will allow more direct comparisons and context on the $500 billion mobile app economy. Additionally, the report focuses on comparing the performance of mobile games to other kinds of apps.

Overall, advertising revenue drove nearly $2 out of ever $3 spent on mobile apps in 2022 according to Data.ai’s report. Despite changes to user data privacy protections, mobile ad spend grew 14% year-on-year to $336 billion. Of this total, roughly $116 billion of this went towards games, capturing about 35% of mobile app ad spend.

In contrast, games drive about two thirds ($110 billion) of the $167 billion spent on app store purchases. The vast majority of game spending is for one-time in-app purchases. Other apps tend to rely on recurring in-app subscriptions.

As a result, the composition of total app revenue is different for mobile games compared to other apps. The $226 billion of total app revenue for games is roughly evenly split between ad revenue ($116 billion) and app store revenue ($110 billion). On the other hand, mobile ad spending accounted for the majority of revenue in other apps. Consumers spent $275 billion total on other apps, but advertising accounted for $218 billion — or 80% — of total app revenue.

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Data.ai’s total app