Generative AI Transforms the $65 Billion Mobile App Market in 2024

Tech
By 24matins.uk,  published 17 January 2025 at 15h41, updated on 17 January 2025 at 15h41.
Tech

In 2024, the mobile app industry is advancing due to generative AI, with $65 billion invested, ensuring growth despite challenges in the gaming sector.

AppsFlyer provides a detailed overview of the evolving mobile app landscape in 2024. Its latest report highlights a modest increase in global app acquisition investment, reaching an impressive $65 billion.

In-App Advertising (IAA): Advertising revenues have risen by +26% outside of gaming and +7% within gaming, driven by the adoption of hybrid monetization models.
Generative AI: Global installations of generative AI apps have surged by +200%, confirming their widespread acceptance.
Deep Linking: Showing significant growth, web-to-app conversions have increased by +77%, emphasizing the role of owned media in user engagement – followed by email-to-app (45%), text-to-app (29%), and QR-to-app (16%).

Growth Dynamics Powered by Generative AI

The rise of generative AI has led to a booming popularity of apps, with an installation rate growth of 200%. Deep linking technologies have also soared, particularly for web-to-app, with an adoption rate increase of 77%. “This has maximized the lifetime value of existing users,” the report notes.

Marked Contrast in the Gaming Sector

In gaming, the investment landscape diverges significantly. While non-gaming app investments have increased by +38%, there has been a notable 19% decline in gaming investments.

Focus on Spending in France

Non-gaming app installations have risen by +23% YOY, in contrast to a 4% decrease in gaming. In France, gaming advertising expenditures have fallen by 20%, one of the most significant global declines, while non-gaming spends have risen by 10%, driven by financial apps (+61% globally) and travel apps (+20%). This resilience is based on advanced monetization strategies and the adoption of organic solutions, providing personalized and hybrid experiences.

Overall, despite challenges in the gaming sector both nationally and internationally, the outlook for 2025 remains positive.